Swiss Indict 3 Over Alleged al-Qaida Propaganda Videos

Federal prosecutors in Switzerland on Thursday announced indictments of the leader of a prominent Swiss Islamic group and two other top members over alleged al-Qaida propaganda videos posted on YouTube. Contacted by phone in Bangladesh, one of the suspects rejected the case as “politically motivated.”

 

Attorney General Michael Lauber’s office alleges the three members of the Islamic Central Council of Switzerland violated Swiss laws banning al-Qaida, Islamic State and associated radical groups. His office and federal police have opened about 60 cases linked to alleged “jihadi-motivated terrorism,” mostly involving propaganda.

 

The indictments target ICCS President Nicolas Blancho, the group’s cultural production chief Naim Cherni, who is a German citizen, and spokesman Abdel Azziz Qaasim Illi, said Illi in a phone interview. Blancho and Illi are both Swiss citizens, he said. They all remain free.

 

“Our reaction is the same it has always been: It is a politically motivated act by the state prosecutor,” Illi said from Bangladesh, where he was taking part in ICCS efforts to help the Muslim Rohingya minority who have been fleeing violence in neighboring Myanmar by the hundreds of thousands since Aug. 25.

 

“They know their case is weak,” Illi said of the prosecutors. Referring to ICCS, he added: “They are trying to defame the famous Islamic organization.”

 

The case was built around an interview that Cherni conducted in Syria in 2015 with Abdullah al-Muhaysini that has been posted on YouTube. The Saudi militant has been linked to an umbrella organization known as Jaish al-Fatah, or Army of Conquest, which is led by an al-Qaida affiliate. Illi called him a “rebel leader” and said links to al-Qaida weren’t confirmed.

 

Illi said authorities had tried and failed to have YouTube remove the interview video.

 

The attorney general’s said it asked the Swiss division of Google Inc. — YouTube’s parent company — to delete the interview two years ago and said it was “annoying” that it remained online.

 

“It is not in our power to delete it. It would be desirable if this were to change, particularly in the case of criminal proceedings such as this,” Lauber’s office wrote in an email. “This is a political question.”

 

The indictment comes nearly two years after Lauber’s office announced an investigation of what was then an unspecified German citizen accused of “having presented his journey to embattled regions of Syria in a video for propaganda purposes, without having explicitly distanced himself from al-Qaida activities in Syria.”

 

In a statement Thursday, the attorney general’s office said the videos were supportive of al-Qaida and had been “actively promoted via social media and at a public event” by all three suspects.

 

 

Israel’s Backing of Iraqi Kurds’ Independence Vote Strains Ankara Ties

Israel’s support of next Monday’s independence referendum by Iraqi Kurds is threatening to strain recently restored diplomatic relations with Turkey. Ankara has been condemning the planned vote, warning of severe consequences for the region.

Israel has a long tradition of seeing the region’s Kurds as a buffer from both Arab and Iranian threats; but with Turkey having its own restive Kurdish minority, Israel’s support of the vote has drawn strong condemnation in Turkey. 

Aydin Selcen, a former senior Turkish diplomat who served widely in the region, says the response by Ankara and Turkish President Recep Tayyip Erdogan has been restrained.

“In the government media, there are many articles saying, look, Israel is behind Iraqi Kurdistan’s independence. But what has to be followed is the practical reaction from Ankara, not what the government media reports. I also did not see anything coming from Erdogan’s mouth putting Israel on the target for this issue,” Selcen said.

Israel and Turkey only recently restored diplomatic ties after rapprochement efforts following the 2010 killing by Israeli commandos of 10 Turks trying to break Israel’s economic blockade of Gaza. But Turkish suspicions over Israel’s relations with the region’s Kurds were further heightened this month when former senior Israeli general Yair Golan declared the Kurdish rebel group the PKK, which has been fighting the Turkish state for decades, is not a terrorist organization. Washington and the European Union have designated the PKK as a terrorist group.

The comment triggered a strong reaction in Ankara; but former Turkish diplomat Selcen says a swift response from Israeli Prime Minister Benjamin Netanyahu demonstrates that both sides are committed to working together, despite differences.

“Mr. Netanyahu made a very attentive statement underlying for Israel the PKK is a terrorist organization, but an independent Kurdish state is in the interests of the region; Israel needs this alliance as Turkey needs it for different reasons, but they both need it. And that’s how they managed to repair the relations. And with Israel there are some tensions, but the two sides manage to go on now with the newfound, let’s say friendship and relations, they are not going to sever the diplomatic ties, like before over the issue of Kurdistan,” Selcen said.

Analysts warn if Israel backs its support of the Kurds with action, it will likely further strain relations with Ankara, whatever their wider mutual interests.

French Protesters Stage Fresh Protests to Macron’s Labor Law

French labor unions staged fresh protests against President Emmanuel Macron’s contested labor law reforms Thursday — a day before he adopts them by executive order.

 

The nationwide action backed by the powerful, hard-left CGT trade union, saw protesters take to the streets in the second round of public opposition to the long-touted reforms that will give more power to employers to hire and fire workers. Macron says that’s needed to power the stagnant French economy and boost jobs.

 

In cities across the country, demonstrators waved anti-capitalist placards and angry personal messages against Macron, whose popularity has recently taken a hit.

 

In Paris, demonstrators brandishing posters reading “The state ruins the people” marched past the posh La Rotonde restaurant where Macron was branded arrogant for prematurely celebrating his victory in the first round of the elections before he had won the presidency.

 

The latest protests come a week after hundreds of thousands of protesters — half a million, according to the unions — took to the streets in the first major challenge to Macron’s fledgling presidency.

 

Macron is waving away the opposition and his government is pressing ahead with the labor reforms, backed by a robust majority in parliament.

 

 

Fed Keeps US Rates Steady, to Start Portfolio Drawdown in October

The U.S. Federal Reserve left interest rates unchanged on Wednesday but signaled it still expects one more increase by the end of the year despite a recent bout of low inflation.

The Fed, as expected, also said it would begin in October to reduce its approximately $4.2 trillion in holdings of U.S. Treasury bonds and mortgage-backed securities acquired in the years after the 2008 financial crisis.

New economic projections released after the Fed’s two-day policy meeting showed 11 of 16 officials see the “appropriate” level for the federal funds rate, the central bank’s benchmark interest rate, to be in a range between 1.25 percent and 1.50 percent by the end of 2017, or 0.25 percentage points above the current level.

U.S. bond yields rose, pushing up the U.S. dollar after the Fed’s decision, but U.S. benchmark stock indexes were little changed.

U.S. benchmark 10-year Treasury note yields rose as far as 2.29 percent, the highest since August 8, a move which helped push bank stock prices higher also.

“The Fed took another step on its path of beautiful normalization, announcing that the gradual balance sheet reduction will start next month and limiting revisions to both projections and policy guidance,” said Mohamed El-Erian, Chief Economic Adviser at Allianz, in California.

In its policy statement, the Fed cited low unemployment, growth in business investment, and an economic expansion that has been moderate but durable this year as justifying it’s decision. It added that the near-term risks to the economic outlook remained “roughly balanced” but said it was “closely” watching inflation.

Inflation mystery

Fed Chair Janet Yellen said in a press conference after the end of the meeting that the fall in inflation this year remained a mystery, adding that the central bank was ready to change the interest rate outlook if needed.

“What we need to figure out is whether the factors that have lowered inflation are likely to prove persistent,” she said. If they do, “it would require an alteration of monetary policy,” Yellen said.

While the interest rate outlook for next year remained largely unchanged in the Fed’s latest projections, with three rises envisioned in 2018, the U.S. central bank did slow the pace of anticipated monetary tightening expected thereafter. It forecasts only two increases in 2019 and one in 2020. It also lowered again its estimated long-term “neutral” interest rate from 3.0 percent to 2.75 percent, reflecting concerns about overall economic vitality.

“The US Federal Reserve has firmly signaled that a December rate rise is still on the table,” said Luke Bartholomew, of Aberdeen Standard Investments Investment Strategist in London.

“Clearly the Fed still believes that lower unemployment will eventually translate into a pick-up in inflation, but if inflation continues to undershoot it is hard to see the Fed following through on a hike,” he said.

Fed bond portfolio to shrink from October

The Fed, as expected, also said it would begin in October to reduce its approximately $4.2 trillion in holdings of U.S. Treasury bonds and mortgage-backed securities by initially cutting up to $10 billion each month from the amount of maturing securities it reinvests.

That action will start a gradual reversal of the three rounds of quantitative easing, or bond buying, the Fed pursued between 2008 and 2014 to stimulate economic growth after the 2007-2009 financial crisis and recession.

The limit on reinvestment is scheduled to increase by $10 billion every three months to a maximum of $50 billion per month until the central bank’s overall balance sheet falls by perhaps $1 trillion or more in the coming years.

Yellen said it would take a “a material deterioration” in the economy’s performance for the Fed to reverse a schedule that she expects to proceed “gradually and predictably.”

Balancing act

The policy statement and accompanying projections showed the Fed still in the middle of a balancing act between an economic recovery that has kept U.S. unemployment low and is gaining steam globally and a recent worrying drop in U.S. inflation.

Three of the hawkish policymakers appeared to move their expected policy rate down to account for only one more hike by the end of 2017, leaving a core 11 clustered around a likely December increase. The Fed has raised rates twice this year.

The Fed noted that the recent hurricanes in the United States would affect economic activity but are “unlikely to materially alter the course of the national economy over the medium term.”

Forecasts for economic growth and unemployment into 2018 and beyond were largely unchanged. Gross domestic product is now expected to grow at a rate of 2.4 percent this year, 2.1 percent next year and 2.0 percent in 2019.

The unemployment rate is forecast to remain at 4.3 percent this year before falling to 4.1 percent next year and remaining there in 2019.

Inflation is expected to remain under the Fed’s 2 percent target through 2018 before hitting it in 2019. There were no dissents in the Fed’s policy decision.

Report: Governments Paying Terror Kidnap Ransoms ‘Put All Citizens at Risk’

The lack of a unified approach by world governments to paying kidnap ransoms is putting the lives of citizens of all nationalities at greater risk and providing terror groups with a big source of finance, warns a new report from British analyst group the Royal United Services Institute.

The authors call for a global, rigorously applied and scrupulously monitored commitment to prevent any concessions to terrorist organizations.

A series of high profile kidnappings by Islamic State in Syria highlighted the lack of a unified global response. Among them was American filmmaker James Foley, held for nearly two years alongside other hostages, until he was murdered in August 2014.

“There are cases where a number of individuals are taken hostage, so in the James Foley case, tragically, and other cases in West Africa, where you have mixed nationalities.  And those that pay ransoms are freed earlier, multimillion-dollar ransoms that allow the terrorist groups to perpetuate their work.  And those that do not pay ransoms are kept for extended periods of time until it becomes politically expedient to murder them,” explains report author Tom Keatinge of RUSI.

He adds that terrorists often will abuse hostages whose governments refuse to negotiate, in order to raise the pressure on countries that do.

France is among the countries accused of paying ransoms.  In December 2014, then President Francois Hollande waited on the tarmac of a military airport outside Paris to welcome home hostage Serge Lazarevic, who had been kidnapped in Mali by al-Qaida militants.  He is one of several French hostages to have been released.

Choosing ‘right to life’

While Hollande consistently denied his government paid ransoms, the evidence suggests otherwise, says Keatinge.

“There are a number of countries, Italy is another one, where hostages have come home.  And the country has chosen the immediate right to life of their citizen over adhering to an internationally-agreed ban not to finance terrorist organizations.”

Ransoms are a major source of criminal financing in Colombia.  Guerrilla fighters belonging to the rebel National Liberation Army, known as the ELN, have kidnapped dozens of people.  In a rare interview this month, the group’s commander “Yernson” spoke about the key role that kidnapping plays.

“It’s a difficult economic situation; that’s why we have hostages.  We could say, ‘No, we won’t kidnap anyone else,’ but how would we finance our struggle? How would we finance our work?  We live off of the ‘ransom tax’ and kidnappings,” he told a Reuters journalist.

Specialist private sector companies, usually backed by insurance policies, are brought in to negotiate in such cases.  They often secure a release for a fraction of the ransom demand, says Keatinge.

“In places like Mexico, South America, where kidnapping is almost an industry for money raising for criminal groups, that’s where these private sector companies have proven to be very effective.  In the [Niger] delta in Nigeria, releasing people who have been taken hostage from oil companies, that’s another place they have been very effective.”

Currently, the ban on terrorist financing precludes the use of private sector resolutions in terrorist hostage situations.  Keatinge argues reversing this policy would lower kidnappers’ ransom expectations and potentially throttle a major source of terrorist financing.

Nations Join Forces to Stop One in Three Women Facing Violence

World leaders meeting at the United Nations on Wednesday launched a half-billion dollar effort to end violence against women and girls, a crime suffered by one in three in their lifetimes.

The effort will fund anti-violence programs that promote prevention, bolster government policies and provide women and girls with improved access to services, organizers said.

It will take particular aim at human trafficking, femicide and family violence, they said.

A third of all women experience violence at some point in their lives, and that figure is twice as high in some countries, according to the United Nations.

“Gender-based violence is the most dehumanizing form of gender oppression. It exists in every society, in every country rich and poor, in every religion and in every culture,” Phumzile Mlambo-Ngcuka, head of U.N. Women, said as the United Nations held its annual General Assembly.

“If there was anything that was ever universal, it is gender inequality and the violence that it breeds against women,” she said.

In other forms of violence, more than 700 million women worldwide were married before they were 18, and at least 200 million women and girls have undergone female genital mutilation in 30 countries, according to U.N. figures.

The initiative of 500 million Euros (US$595 million) was launched by the U.N. and the European Union, which is its main contributor, organizers said.

“The initiative has great power,” said Ashley Judd, a Hollywood actress and goodwill ambassador for the U.N. Population Fund (UNFPA) who participated in Wednesday’s announcement.

“There are already so many effective, research-based, data-driven programs,” Judd told the Thomson Reuters Foundation ahead of the announcement. “Financing for existing programs is a beautiful thing.

“It also makes an incredibly powerful statement to show that the world is increasingly cohesive around stopping gender-based violence,” she said.

US Advises Banks to Watch for Venezuelan Corruption

The U.S. Treasury is advising banks to be on the lookout for suspicious financial activity involving corrupt Venezuelan officials as the Trump administration tightens its financial noose around President Nicolas Maduro’s embattled socialist government.

Wednesday’s advisory by the Financial Crimes Enforcement Network asks banks to keep watch for Venezuelan government contracts, wire transfers from shell companies, and real estate purchases in south Florida and Houston by senior Venezuelan officials, their families or associates. It said the advisory arose out of concern expressed by financial institutions that transactions involving state-owned enterprises were being used to launder kickbacks and bribes.

U.S. officials fear that endemic corruption will take an additional toll on Venezuelans already struggling with triple-digit inflation and widespread shortages amid a tense political standoff aggravated by Maduro’s decision to rewrite the constitution in the face of months of deadly protests.

Last month, the Trump administration slapped sanctions on Venezuela for Maduro’s decision to go forward with his plans to consolidate power. The actions ban investors from buying the nation’s debt and prevents U.S.-based Citgo, a subsidiary of the state-owned oil company, from sending badly needed dollar dividends back to Venezuela.

“Not all transactions involving Venezuela involve corruption, but, particularly now, during a period of turmoil in that country, financial institutions need to continue their vigilance to help identify and stop the flow of corrupt proceeds and guard against money laundering and other illicit financial activity,” said acting FinCEN Director Jamal El-Hindi.

‘Blockade’

Maduro has accused the U.S. of trying to impose a financial “blockade” on Venezuela after the opposition-led protests failed to oust him from power. Even before the recent round of sanctions, many Wall Street banks like Citibank and Credit Suisse that used to collect large fees serving Venezuela’s financial needs stopped doing business with the government, fearing legal action or damage to their reputations.

Wednesday’s action lists several red flags to assist banks in identifying suspected schemes. They include any transactions involving government contracts payable directly to personal accounts, hard-to-identify trading companies or products charged at substantially higher prices than market rates.

It also warns about real estate purchases — primarily in south Florida and the Houston area — involving current or former Venezuelan government officials, family members or associates that are not commensurate with their official salaries.

The U.S. over the past year has sanctioned dozens of Venezuelan officials, including Maduro himself, for a variety of alleged offenses including drug trafficking and human rights abuses. Among the state-owned enterprises referenced in recent sanctions are the nation’s electricity and telephone companies as well as the foreign trade bank and foreign currency exchange commission that provides U.S. dollars to select businesses and individuals at a highly favorable exchange rate that most Venezuelans can’t access due to strict currency controls

Italy’s Center-right in Search of Leader as Election Nears

Former prime minister Silvio Berlusconi returned to frontline Italian politics over the weekend, staking his claim to lead a resurgent center-right into national elections that are expected early next year.

At exactly the same moment, Berlusconi’s outspoken ally, Matteo Salvini, was addressing his Northern League party and laying down his own marker to become the next prime minister.

“Salvini Premier” read a sign stuck to the lectern.

In reality, neither man looks likely to head the next government if they pull off an election victory, and possible alternative candidates are already emerging.

“There is an apparent power struggle going on between Berlusconi and Salvini, but it will not get out of hand. They know a violent clash would be suicidal with voters,” said Piero Ignazi, politics professor at Bologna University.

“The truth is both men will remain head of their respective parties, but they won’t be the next prime minister,” he said.

This would open the way for a consensus candidate who would have to bridge the huge divergences between the three main rightist parties – from the fierce anti-EU agenda put forward by both the Northern League and Brothers of Italy to the pro-European vision embraced by Berlusconi on Sunday.

Latest opinion polls show this trio of long-standing allies are pulling ahead in the polls and predicted to win a combined 35 percent of the vote, with the anti-migrant Northern League just ahead of Berlusconi’ Forza Italia on some 15 percent.

By contrast, the anti-establishment 5-Star Movement and ruling center-left Democratic Party (PD) are seen on around 28 percent apiece. The 5-Star has ruled out any coalition alliances and the center-left pool of votes is shrinking as various leftist parties engage in ferocious infighting.

Court appeal

Under the current electoral system no party or bloc looks like winning enough seats to govern alone. However, political analysts say the wind is filling the center-right’s sails after years of adverse conditions, giving it pre-election momentum.

Berlusconi ignominiously resigned from power in 2011 during a sovereign debt crisis. Mired in sex scandals and legal woes, he was subsequently expelled from the Senate and banned from running for office due to a 2013 tax fraud conviction.

Open heart surgery last year left most analysts writing his political obituary. But not for the first time, the media tycoon, now 81, bounced back and has appealed to the European Court of Human Rights to overturn the ban on seeking election.

A hearing is scheduled for November, but a verdict is unlikely to come for several months, meaning he almost certainly will not be able to stand in the next national ballot, which is due by May 2018 and widely expected to be held in March.

“Despite his age, Berlusconi would love to be prime minister again. It would be his last hurrah. But realistically speaking, it is not about to happen,” said a Forza Italia official, who declined to be named because of the sensitivity of the issue.

Significantly, Berlusconi made his political comeback speech at an event organized by Forza Italia stalwart Antonio Tajani, the president of the European Parliament. Party sources said Tajani was in pole position to be Berlusconi’s surrogate.

Compromise

While Berlusconi’s name abroad evokes memories of “bunga bunga” sex parties and wisecracks, Tajani is a much less colorful character, whose pro-European instincts would make him a reassuring figure for international markets.

Those very same instincts would pose a problem for Berlusconi’s hardline allies, who have regularly denounced the European Union and have called for Italy to quit the euro.

“The leader of the center-right needs to be chosen through a clear process, perhaps a primary,” Giorgia Meloni, the head of Brothers of Italy, told Sky Italia television on Sunday.

“I imagine that whatever grassroots method you decide, Tajani will not win out,” she said.

Brothers of Italy is a small, nationalist party, which is anti-migrant and anti-euro. It tries to differentiate itself from the League by saying it focuses on the whole country, not just the wealthy north.

Buoyed by the League’s strong poll numbers, Salvini says the leader of the party which wins the most votes next year should automatically be the prime ministerial candidate.

But Berlusconi, a four-times premier, has ruled out handing over the baton of power to Salvini, who has embraced Europe’s far-right and endorsed France’s National Front.

“We created the center-right in Italy and we have always been its leader, laying out and fulfilling its program,” Berlusconi said on Sunday. The two men have not spoken for months, saying they are in no hurry to discuss strategy.

Political analysts have speculated that the pro-business Forza Italia might find it easier to create a government of national unity with former prime minister Matteo Renzi’s PD party rather than the populist Northern League.

Forza Italia loyalists reject this notion.

“We ruled with the Northern League for years in national government and we are ruling with them now in the regions and it is going well,” said Forza Italia lawmaker Deborah Bergamini.

One such regional coalition is in Liguria, headed by Forza Italia’s Giovanni Toti. He attended both the Forza Italia and Northern League rallies at the weekend and is due to take part in a Brothers of Italy meeting this weekend.

“Toti has been carefully building bridges between the three parties and would be a natural choice to head any national coalition,” Bologna University’s Ignazi said.

EU, Canada Launch Free Trade Agreement While Britain Eyes Own Deal

The European Union and Canada will begin cutting import duties from Thursday on thousands of products and services in a reminder to Britain of the work it will take to replace the trade alliances it will give up when it leaves the EU.

The Comprehensive Economic and Trade Agreement (CETA) will provisionally enter force on Thursday, eight years after negotiations begun. It will be the EU’s first major trade deal since it began implementing its South Korea agreement in 2011.

The Canada agreement is the EU’s first trade pact with a G7 country, marking a success after its credibility took a beating from Britain’s 2016 vote to leave the block.

It has since struck a deal with Japan and hopes for further agreements with Mexico and the Mercosur countries of South America by the end of this year.

May, Trudeau agree

British Conservatives in the European Parliament said on Wednesday that the EU-Canada deal would bring 1.3 billion pounds ($1.76 billion) in benefits to Britain and said they hoped CETA’s benefits for Britain would continue after Brexit.

“I believe CETA will become the gold standard of agreements and one we can tailor to suit the priorities of the British and Canadian economies post-Brexit,” lawmaker Emma McClarkin said in a statement.

British Prime Minister Theresa May said in Ottawa on Monday that she and Canada’s Justin Trudeau had agreed that CETA should be “swiftly transitioned” into a new U.K.-Canada deal after Brexit.

How fast that transition occurs will depend on how much post-Brexit Britain wants to tailor the deal, perhaps by including closer convergence on financial services, rather than largely copying what is in place.

Duties, quotas to change

CETA will abolish some 98 percent of customs duties, open up public tenders to companies and allow the EU to export more cheese and wine and Canada more pork and beef in quotas that expand over the next six years.

The 1,598-page CETA text is full of negotiated details, including the right of European companies to ship up to 537,000 knitted jerseys to Canada and Canadian companies’ ability to send up to 196,000 square meters of carpet to Europe.

Britain and Canada will still have to create their own free trade agreement, which took five years to negotiate.

 

 

Ukraine Readies New High Court as Reforms Take Hold, Justice Minister Says

Ukraine could have a new Supreme Court installed by next month as part of judicial reforms aimed at rooting out corruption, Ukraine’s Justice Minister Pavlo Petrenko said Tuesday.

“I think from October the new Supreme Court will start working,” Petrenko told Reuters in an interview at the Concordia Annual Summit in New York. “The next challenge for us is to establish new appeal courts throughout the country, and to take in new judges in the regional courts.”

Petrenko added that reforms within appeal and regional courts could be in place within the next four years. Other government reforms began in 2014, after a popular uprising driven partly by public anger over endemic corruption.

Ukraine is still dealing with nagging allegations of graft, and Transparency International ranked it a poor 131st out of 176 countries in the World Ranking of Corruption Perception in a report this year.

The selection process for new Supreme Court judges has been questioned by figures including British Foreign Secretary Boris Johnson, who cited concerns in July that Ukrainian government reforms were faltering.

Not ideal, but ‘very good’

Petrenko addressed criticism surrounding the selection, saying that while there are no ideal processes, “this one is very good.”

“We have a democratic society, and all the time there are people who will criticize the process,” he said.

Ukraine currently is the recipient of an aid-for-reforms program from the International Monetary Fund.

So far, the IMF has given the country $8.4 billion, helping it recover from a two-year recession following the annexation of Crimea by Russia in 2014 and the outbreak of a Russian-backed insurgency in its industrial east.

Under the $17.5 billion program, the IMF wants Ukraine to set up a special court to focus on tackling corruption.

Ukrainian President Petro Poroshenko on Friday said he hoped an anti-corruption chamber would be created next month, but expressed doubt that an independent court as envisaged by the IMF could be set up before 2019.

Interfax: Russia to Pay Damages for Beslan School Siege

Russia will abide by a European Court of Human Rights ruling requiring it to pay nearly 3 million euros ($3.6 million) in damages for the 2004 Beslan school siege, the Interfax news agency reported Tuesday, citing the Russian justice ministry.

Russia used excessive force to storm a school in the small southern Russian town seized by Islamist militants in 2004, causing a high number of hostages to be killed, the court ruled in April.

The three-day drama began when Islamist militants took more than 1,000 people hostages on the first day of the school year and called for independence for the majority-Muslim region of Chechnya.

More than 330 hostages died, including at least 180 children, when the siege ended in a gunbattle. It was the bloodiest incident of its kind in modern Russian history.

The case for damages was brought by 409 Russian nationals who either were taken hostage or injured in the incident, or were family members of those taken hostage, killed or injured, the European Court of Human Rights statement said in April.

On Tuesday, the court said in a press release that its Grand Chamber Panel had rejected a Russian government request to refer the case and said its ruling was final.

“No other actions are being contemplated by the participants in this process,” the Russian justice ministry said in comments carried by Interfax.

In its April ruling, the court said the heavy-handed way Russian forces stormed the school had “contributed to the casualties among the hostages.”

It also ruled that authorities had failed to take reasonable preventive measures, despite knowing militants were planning to attack an educational institution.

Catalan Mayors Exercise Right to Remain Silent in Referendum Questioning

The first of hundreds of Catalan mayors summoned to answer questions on why they have backed a banned Oct. 1 referendum on independence from Spain appeared before the state prosecutor on Tuesday amid cheers and chants from supporters.

The first three mayors to declare exercised their right to remain silent, the Association of Municipalities for Independence (AMI) said.

Years of separatist feeling in the industrial northeastern region will come to a head in less than two weeks as the fiercely pro-independence regional government calls a referendum on splitting from Spain.

Madrid has declared the referendum illegal and the Constitutional Court has suspended the vote that was approved by the regional government earlier this month.

So far, 745 of 948 municipal leaders have said they will provide venues for the referendum.

“Voting is not a crime,” said Marc Solsona, mayor of the town of Mollerussa, one of nearly 750 mayors facing charges of civil disobedience, abuse of office and misuse of public funds, as he left the state prosecutor’s office in Barcelona.

“I’m just the mayor and I have to serve my people. I am committed to the people being able to vote on Oct. 1 in accordance with the law passed by the Catalan parliament and what happens to me is not important,” he said.

Solsona smiled, kissed and gripped hands with dozens of clapping supporters gathered outside the state prosecutor’s office as he entered to chants of “You are not alone.”

“We consider ourselves privileged to have a mayor who represents the townspeople above any other interests — political or financial,” said 63-year-old pensioner Angel Tena, who had traveled to Barcelona to support the mayor.

Separately, police continued their search for ballot boxes, voting papers and campaign leaflets on Wednesday, raiding the offices of Spain’s biggest private delivery company Unipost in the Catalan city of Terrassa, Spanish media reported.

Neither the police nor the Interior Ministry could confirm the raid, but footage showed dozens of people gathered outside the company’s offices chanting “Out with the occupying forces,” handing out voting papers and laying carnations on police cars.

Unipost confirmed the raid without giving further details.

Although polls show less than half of Catalonia’s 5.5 million voters want self-rule, most in the wealthy northeastern region want the chance to vote on the issue.

US Current Account Deficit Hits $123.1 Billion

The deficit in the broadest measure of U.S. trade rose to the highest level in more than eight years this spring, reflecting in part a drop in fines and penalties paid by foreign companies.

The deficit in the current account increased to $123.1 billion, up 8.5 percent from an imbalance of $113.5 billion in the first quarter, the Commerce Department reported Tuesday. It was the biggest deficit since a gap of $150 billion in the fourth quarter of 2008.

 

The current account is the most complete measure of trade because it includes not only goods and services but investment flows and other payments between the United States and the world.

 

President Donald Trump has promised to reduce America’s trade deficit, contending it costs U.S. factory jobs.

 

One of the biggest contributing factors to the larger deficit in the April-June quarter was a decline in receipts from foreigners after they had risen sharply in the first quarter. The government attributed the $5.2 billion decrease in receipts of secondary income from foreigners to a decline in fines and penalties paid by foreign companies. That category had risen sharply in the first quarter.

 

Exports of goods and services increased $2.2 billion in the second quarter. Exports are getting a lift from a pickup in global growth and a drop in the value of the U.S. dollar against other currencies. A weaker dollar makes American products more competitive on foreign markets.

 

Imports of goods and services were also up in the second quarter, rising $11.8 billion, reflecting rising domestic demand from stronger U.S. growth.

 

The rise in the current account deficit put the imbalance in the second quarter at a level equivalent to 2.6 percent of the total economy, as measured by the gross domestic product, up from 2.4 percent in the first quarter. By comparison, the largest current account deficit in relation to GDP was in the fourth quarter of 2005 when the deficit totaled 6.3 percent of GDP.

 

Trump says America’s trade deficits have been caused by bad trade deals and abusive practices by China and other U.S. trading partners. He has pledged changes that he says will reduce the deficit and bring back American factory jobs.

 

Popular US Toy Store Files for Bankruptcy

Toys ‘R’ Us, an iconic United States toy store, has filed for bankruptcy after struggling to compete with online retailers and racking up about $5 billion worth of debt.

In a statement Monday, the company said it is voluntarily seeking relief through the U.S. bankruptcy process, but that its international holdings would not be affected.

“The company’s approximately 1,600 Toys ‘R’ Us and Babies ‘R’ Us stores around the world, the vast majority of which are profitable, are continuing to operate as usual,” the statement reads. “Customers can also continue to shop for the toy and baby products they are looking for online.”

The company said it has begun the process of working with creditors to restructure the debt that its stores will remain open as the bankruptcy plays itself out.

The bankruptcy filing, CEO Dave Brandon said in a statement, “will provide us with greater financial flexibility to invest in our business … and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide.”

The company said it is “well-stocked” for the upcoming holiday season, which has historically been a time when retailers can pad their bottom-line at the end of the year.

Toys ‘R’ Us has seen its popularity fall since the 1980s and ‘90s, when it began losing customers to big-box stores like Wal-Mart and Target, and more recently with the advent of online shopping giants like Amazon.

Jet Fuel Shortage Disrupts Travel To-From New Zealand’s Main Airport

As many as three dozen domestic and international flights at New Zealand’s Auckland Airport have been canceled Tuesday as it struggles to deal with a weeklong fuel shortage.

New Zealand’s main airport has lost 70 percent of its jet fuel supplies since a digger ruptured the main pipeline that carries fuel to the facility, forcing many air carriers to refuel at other airports in the Pacific region. The accident has also cut off supplies of high-grade gasoline at Auckland gas stations, although fuel supplier Z Energy says stocks of regular gasoline are still plentiful.

The pipeline’s owner says the repairs will not be completed until sometime next week.

Prime Minister Bill English says a naval tanker and military trucks have been assigned to transport fuel to ease the shortage, and has ordered all lawmakers and public employees to avoid any unnecessary air travel until the situation is resolved.

The fuel disruption has placed enormous pressure on English with Saturday’s national elections on the horizon. Jacinda Ardern, the leader of the main opposition Labour Party, accused English of ignoring warnings about the pipeline’s vulnerability.

“One pipeline, one digger, and New Zealand grinds to a halt,” Ardern told reporters Tuesday. The 37-year-old politician has led the Labour Party from a certain electoral defeat to a tight race with English’s ruling National Party.

FIFA Hopes for big Increase in TV Viewers at Women’s Wold Cup

FIFA president Gianni Infantino wants the next edition of the Women’s World Cup to draw a billion TV viewers across the world.

Infantino, who attended the official launch of the tournament that will be organized in France in 2019, said on Tuesday that the previous edition in Canada in 2015 was watched by 750 million viewers.

 

Speaking alongside French federation president Noel Le Graet and French Sports Minister Laura Flessel, Infantino said “our goal is to reach one billion in France in 2019.”

 

The tournament, which will run from June 7 to July 7, will gather 24 teams in six groups.

 

France will kick off the event at Parc des Princes in Paris, with the semifinals and finals in Lyon.

 

“It will be magnificent,” Infantino said. “France is a great football nation for both men and women.”

 

Kalashnikov Monument Unveiled in Moscow

A towering monument to Mikhail Kalashnikov, the designer of the prolific assault rifle that bears his name, has been unveiled in Moscow.

 

Kalashnikov died in 2013 at age 94 in the city of Izhevsk where he lived. He has received accolades as the creator of the AK-47 assault rifle, the world’s most popular firearm. An estimated 100 million guns are spread worldwide.

 

Russian Minister of Culture Vladimir Medinsky said at the monument’s opening Tuesday that the Kalashnikov rifle has become “Russia’s cultural brand.”

 

The monument in downtown Moscow shows Kalashnikov cradling his rifle.

 

Kalashnikov, born into a peasant family in Siberia, began brooding about a new rifle design after being wounded in a 1941 battle against Nazi forces, and finalized it in 1947.

Spate of Rapes Spark Calls for Patrols, Punishment in Italy

Officials are calling for increased police patrols and new laws to punish perpetrators after a spate of rapes around Italy.

 

After two new cases emerged Tuesday, Rome mayor Virginia Raggi declared it has been “a black September for Italy.”

 

In Rome, a German woman reported being raped, robbed and bound in the swank Villa Borghese park overnight.

 

And in Catania, police on Tuesday arrested a man who allegedly raped a doctor to whom he had gone for medical help.

 

The attacks followed a case in Florence where two American students said two carabinieri officers raped them after offering them a ride home from a disco in their patrol car. And in August, a Polish tourist was raped and her partner beaten during a beach attack in Rimini.

 

Coffee Rivals Square Off in Italy Ahead of Starbucks Invasion

Two of Italy’s biggest coffee houses are reinforcing their brands with flagship cafes in Milan near the spot where U.S. rival Starbucks is set to begin operations next year.

Lavazza opens its first flagship cafe in the coffee-obsessed city on Tuesday, not far from the renovated 19th century palazzo where Starbucks will open its first Italian store, a ‘Reserve Roasteries’ outlet offering specialty blends and fine food.

Another top Italian brand, illycaffe, opened its own luxury cafe close to the Starbucks site in May, in a cozy courtyard in Milan’s most fashionable street.

Lavazza, which is opening near the city’s famous La Scala opera house, and illycaffe both deny their moves are a response to a global rival’s impending arrival, a first step in what may become a 200-store expansion.

Industry experts suspect it is no coincidence.

“Lavazza and illycaffe are the purists of coffee, they want to show they are there when Starbucks arrives,” says Jean-Paul Gaillard, who ran Nespresso for 10 years before founding the Ethical Coffee Company, a Swiss firm selling coffee pods.

Milan’s battle of the coffee palaces reflects global competition among major brands to capture a growing market for people who are prepared to pay a premium for quality espresso coffees in upmarket boutique cafes.

Nestle last week bought California-based Blue Bottle Coffee, one of the top boutique U.S. chains whose single-origin and cold-brewed coffees have proven popular with hipsters and have made inroads into the Starbucks franchise.

JAB Holdings, the investment vehicle of Germany’s Reimann family, has also been buying up independent start-ups selling premium brews around the world, from Europe to the Americas.

Starbucks Chief Executive Howard Schultz hopes his company’s arrival in Milan, which he calls the home of the “perfect espresso”, and the inspiration for his Starbucks vision, will show discerning Italian coffee-lovers that “we got it right.”

“We are happy to hear about Lavazza’s growth,” said a Starbucks spokesman when asked to comment on Lavazza’s opening.

The U.S. chain will open its 2,400-square-meter cafe in late 2018, seeking to attract tourists, young Italians and the business crowd. If the Milan experiment succeeds, Starbucks and its local partner, Antonio Percassi, could open more than 200 stores in Italy over six years, according to Percassi.

Some analysts are skeptical that Starbucks can crack a market where espresso typically sells for just one euro ($1.20), a fraction of the price of a Starbucks coffee.

But the local brands are also gambling Italians will spend much more than one euro for a restaurant-style experience: illycaffe charges around three times that for coffee brought to the table.

Nestle, JAB Holdings and Starbucks are the three largest players in the global coffee market, followed by several mid-tier players including Lavazza and illycaffe.

“As the biggest get bigger, mid-tier companies are in a position where they must either expand or risk being left behind or swallowed up by their massive rivals,” said Matthew Barry, an analyst at market research firm Euromonitor International.

Lavazza’s chief executive and some of its family owners will cut a ribbon to launch their cafe, where customers can sip a blend of coffee specifically crafted for the store, taste gourmet food and buy single-origin coffees.

“The opening of the new flagship store has nothing to do with Starbucks,” a Lavazza spokeswoman said, adding that it was solely aimed at giving people an exclusive Lavazza experience.

The group is primarily a roaster and supplier to independent cafes and restaurants rather than a retailer and its new store is a way of boosting brand visibility on the high street.

Lavazza went on an acquisition spree three years ago, buying up three coffee suppliers in Europe and Canada, boosting sales to nearly 2 billion euros last year. It has overtaken Starbucks in supermarket sales, Euromonitor International says.

Illycaffe sells its coffee both through independent cafes and 230 mono-brand stores, some of them directly owned, in 43 countries, and says it wants to develop the network further, though not via major acquisitions.

“The new store wants to be a landmark for the global nomad in search for the real Italian lifestyle experience,” illycaffe said, without commenting on the arrival of Starbucks.

Milanese coffee society is divided on whether Starbucks can make its name at the high-end of Italian market, the world’s fourth-largest coffee consumer.

“I am curious about Starbucks, I will give it a try when it arrives in Milan,” office worker Giuseppe Gaggiano, 55, said at a small, upmarket independent cafe close to the Starbucks site.

However, another customer there, Alberto Paparusso, 31, said he wouldn’t abandon his usual cafe: “I don’t like Starbucks coffee. It’s not worth going there.”

($1 = 0.8371 euros)

Economy Minister: Mexico Sees ‘Elephants in the Room’ in NAFTA Talks

Mexico’s economy minister said on Monday a successful retool of the North American Free Trade Agreement (NAFTA) would hinge on two or three complex areas that he called “elephants in the room,” just days before the next round of treaty talks in Canada.

Speaking at an event in Mexico City, Ildefonso Guajardo said four chapters in the agreement could be renegotiated in the third round of talks, due to take place Sept. 23-27 in Ottawa.

The areas cover smaller companies, transparency and food safety.

The “elephants,” such as the U.S. trade deficit with Mexico and rules of origin, will determine the success of the trade treaty’s renegotiation, he said. Rules of origin specify the percentage of components in a product that must be from the three NAFTA nations for it to qualify as duty free.

“This challenge of resolving two or three un-traditional topics at the trade negotiation tables is what is going to determine if, at the end of the day, we’re going to have an agreement or not,” Guajardo said in a Forbes Mexico talk.

In addition, Guajardo added that as many as 13 other chapters would also be tough to negotiate.

Asked by journalists if Mexico would accept national content rules that would require a portion of products to be made in the United States, the minister said the topic had yet to reach the negotiating table.

“We would analyze it, but I believe as of today there is no trade agreement that contains this type of clause,” he said.

Guajardo reiterated that Mexico was ready to modernize the agreement, which U.S. President Donald Trump has threatened to scrap, and to find solutions with the United States and Canada.

Google Offers to Display Rival Sites Via Auction – Sources

Alphabet unit Google has offered to display rival comparison shopping sites via an auction as part of an EU compliance order following a landmark fine for favoring its own service, four people familiar with

the matter said on Monday.

The proposal, submitted to the European Commission on August 29 following a record 2.4-billion-euro ($2.87 billion) penalty, would allow competitors to bid for any spot in its shopping section known as Product Listing Ads, the people said.

Three years ago, the world’s most popular internet search engine made a similar offer in an attempt to settle a long-running investigation by the European Commission and stave off a fine. The offer was ultimately rejected following negative feedback from rivals and discord within the EU executive.

Under this earlier proposal, Google had reserved the first two places for its own ads. The new offer would also see Google set a floor price with its own bids minus operating costs. The company has sought feedback from competitors.

The offer does not address the issues set out by EU competition regulators, the people said. The Commission had ordered Google to treat rivals and its own service equally.

“This is worse than the commitments,” one of the people said, declining to be named because of the sensitivity of the matter.

The Commission was not immediately available for comment.

Google did not respond to a request for comment. Google has until September 28 to stop its anti-competitive practices or its parent company Alphabet could be fined up to 5 percent of its average daily worldwide turnover.

US Students in Acid Attack in France Forgive Assailant

The four American college students attacked with acid at a Marseille train station have forgiven their assailant, who reportedly suffers from a mental illness, a university spokesman said Monday.

 

The four women, on a study-abroad year, have all said they intend to remain in Europe to continue their studies, the spokesman for Boston College, the private Jesuit school they attend, told The Associated Press.

 

The women “have stated their intention to remain in Europe for their studies and have offered forgiveness to the woman who attacked them, an individual who police say suffers from mental illness,” said Boston College spokesman Jack Dunn.

 

The four were attacked Sunday morning at the Saint Charles train station in the southern French city. A 41-year-old woman has been taken into custody by police in the case.

 

Two of the students had asked for prayers for their assailant in Facebook posts late Sunday.

 

One of the women, Michelle Krug, said she was one of two who got hit in the eye with “a weak solution of hydrochloric acid.” She asked friends to “please consider thinking about/praying for our attacker” so she can receive help.

 

“Mental illness is not a choice and should not be villainized,” Krug wrote, adding she planned to continue her “incredible opportunity” to study in France.

Erdem Sparkles With Glamour in London Fashion Week Catwalk

Canada-born designer Erdem Moralioglu has turned the Old Selfridges Hotel into a glamorous speakeasy for his London Fashion Week show.

 

With classics “Stormy Monday” and “My Funny Valentine” playing, the fashion house named Erdem on Monday displayed glamorous, full-length evening gowns with full-length gloves and sparkly accessories.

 

Many had floral themes and remarkable detailing, adding to the show’s exuberance and opulence.

 

While many designers are showing more and more skin, Erdem opts for a subtle celebration of feminine beauty. There were some sheer and lacy outfits, but most were more modest, with either high necklines or sweetheart ones.

 

The effect was entrancing. Nostalgia was in the air – the program featured a photograph of Queen Elizabeth II meeting Duke Ellington in 1958.

 

London Fashion week continues later Monday with Christopher Kane, and others.

Irma’s Damage a Reminder of Florida Economy’s Vulnerability

Florida’s economy has long thrived on one import above all: People.

 

Until Irma struck this month, the state was adding nearly 1,000 residents a day – 333,471 in the past year, akin to absorbing a city the size of St. Louis or Pittsburgh. Every jobseeker, retiree or new birth, along with billions spent by tourists, helped fuel Florida’s propulsive growth and economic gains.

 

Yet Hurricane Irma’s destructive floodwaters renewed fears about how to manage the state’s population boom as the risks of climate change intensify. Rising sea levels and spreading flood plains have magnified the vulnerabilities for the legions of people who continue to move to Florida and the state economy they have sustained.

 

Florida faces an urgent need to adapt to the environmental changes, said Jesse Keenan, a lecturer at Harvard University who researches the effects of rising sea levels on cities.

“A lot is going to change in the next 30 years – this is just the beginning,” Keenan said.

 

People might need to live further inland, Keenan said, and employers might have to relocate to higher ground, with the resulting competition between offices and housing driving up land prices. It would become harder to adequately insure houses built along canals. Traffic delays could worsen across parts of Florida as more roads flood. Developers might shift away from sprawling suburban tracts toward denser urban pockets that are better equipped to manage floods.

 

At the same time, the belief remains firm among some developers and economists that for all the threats from rising water levels, the state’s population influx will continue with scarcely any interruption. The allure of lower taxes and easier living, the thinking goes, should keep drawing a flow of residents and vacationers.

 

“Irma doesn’t change the fact that there is no state income tax,” said Sean Snaith, director of the University of Central Florida’s Institute for Economic Competitiveness. “In a few months, when the first Alberta Clipper starts blowing down cold weather across the United States and it’s 80 degrees and sunny down here, the memories of Irma will be blown away.”

Certainly, the influx of people has been testament to that appeal. After slowing when the housing bubble burst in 2007, the population has marched steadily upward. The number of Floridians, now above 20 million, is projected to hit 24 million by 2030, with more than half the increase coming from retiring baby boomers. Many of them first experienced Florida as tourists. More than 112 million people visited the state last year – a 33 percent increase over the past decade.

 

All of which means that compared with Hurricane Andrew 25 years ago, Irma struck a far more densely packed state. It is also one marked by greater extremes of wealth and poverty. Luxury condo towers populated by the global elite now crowd the Miami skyline. But the metro area is also cursed by the worst rental housing affordability in the United States, according to Harvard University’s Joint Center for Housing Studies.

 

Flooding washed away mobile home parks in the Florida Keys where lower-income workers live. As a magnet for jobs at restaurants, hotels and other parts of the services sector, the state attracts workers with relatively low incomes who can’t pay higher rents if flooding eliminates a chunk of the housing stock.

 

Still, Citigroup estimated that damages were just $50 billion – well below initial estimates – in part because some homes were better equipped to weather the wind and rain than during Andrew.

Storms can cause population loss in the near term. A year after Andrew hit in 1992, Miami-Dade County lost 31,000 residents. Many appear to have moved to Broward and Palm Beach counties, where the risks of flooding were lower, a pattern that could be repeated after Irma.

Given the brisk pace of construction and population growth, Florida could endure a heavy economic blow in coming decades if it fails to reduce the risks from climate change. Homes that were too close to eroding beaches could become effectively worthless. Those along canals that flood could become too costly to rebuild. The state’s economic fuel – tourism and residential development – could dissipate.

 

Sean Becketti, chief economist at Freddie Mac, the mortgage giant, warned in an analysis last year that rising sea levels and widening flood plains “appear likely to destroy billions of dollars in property and to displace millions of people.”

 

“The economic losses and social disruption,” Becketti added, “may happen gradually, but they are likely to be greater in total than those experienced in the housing crisis and Great Recession.”

 

Federal taxpayers might oppose bailing out these homeowners, Becketti said, mortgage lenders could absorb heavy losses and employers might choose to move to safer parts of the country – and take their jobs with them.

 

Still, for now at least, the heads of several major Florida real estate companies say they expect people to keep flocking to Florida despite the increasing risks.

 

Budge Huskey, president of Premier Sotheby’s International Realty, drove around Naples, Florida, and said he observed “very little damage” to homes constructed under new building codes after Hurricane Andrew. These houses had wind-resistant hurricane windows and stronger roofs.

 

“Let’s face it, people work their whole lives to retire to Florida – that’s where they want to be,” Huskey said.

 

Jay Parker, CEO of Douglas Elliman’s Florida brokerage, monitored Irma from an Atlanta hotel. He was gratified that Florida escaped much of the expected destruction. And he said would-be buyers, sniffing out potential bargains, were approaching him at the hotel about cut-rate deals on condos in the storm’s wake.

 

“If anything,” Parker said, “this might create some short-term buying sprees.”

Violent Storm in Romania Kills 8, Injures Dozens

At least eight people were killed and dozens more injured when a violent storm hit western Romania on Sunday.  

The storm, bearing winds of 100 kilometers an hour, also caused property destruction in neighboring Serbia, and in Croatia.

Road and rail traffic in parts of Romania was halted by fallen trees and dozens of towns and villages were left without power.

“We can’t fight the weather,” Romanian Prime Minister Mihai Tudose told Antena3 TV. “The entire medical sector is focused on the injured.”

He said the government would help support the communities hit by the storm.

Romania’s national weather agency issued warnings of strong winds and rainstorms for western areas of the country.

Emergency responders urged people to take shelter indoors, unplug household appliances and park in areas not close to trees or power lines.

The storm followed several days of high temperatures.  Temperatures were above 30 degrees Celsius on Sunday.

In First, Serbia’s Openly Gay PM Joins Belgrade Pride Parade

Ana Brnabic, Serbia’s first openly gay prime minister, joined several hundred activists at a gay-pride march in Belgrade on Sunday.

Brnabic, who is also the first woman in top-level job, said she is working “one step at a time” toward building a more tolerant society.

Serbian riot police cordoned off the city center with metal fences early Sunday to prevent possible clashes with extremist groups opposed to the gathering. Similar events have been marred by violent clashes in the conservative country.

 “The government is here for all citizens and will secure the respect of rights for all citizens,” Brnabic told reporters. “We want to send a signal that diversity makes our society stronger, that together we can do more.”

Members of Serbia’s embattled LGBT community face widespread harassment and violence from extremists. Violence marred the country’s first gay pride march in 2001, and more than 100 people were injured during a similar event in 2010 when police clashed with right-wing groups and soccer hooligans. Several pride events were banned before marches resumed in 2014.

Brnabic, who was elected in June, has tried to shift the focus away from her sexual orientation, asking “Why does it matter?”

Serbia is on track to join the European Union, but the EU has asked the country to improve minority rights, including for the LGBT community.

The marchers Sunday said they hoped Brnabic will bring about legislative changes for same-sex couples.

Brazil’s Odebrecht Quits Argentine Subway Construction Project

Scandal-hit Brazilian construction company Odebrecht said on Sunday it has sold its 33 percent stake in a massive subway project in Argentina’s capital Buenos Aires, but vowed to keep working in the country.

Odebrecht is involved in a sprawling corruption saga and has already paid $3.5 billion in settlements in the United States, Brazil and Switzerland, embroiling politicians across Latin America.

“Present for 30 continuous years, Odebrecht plans to continue contributing to the development of Argentina in an ethical, integral and transparent manner,” the construction company said in a statement emailed to Reuters.

In July the Argentine justice system banned Odebrecht from bidding on new projects in the country a period of one year.

Putin Ally: No Logic in Deploying UN Forces on Russia-Ukraine Border

One of President Vladimir Putin’s top allies said on Sunday she saw no logic in deploying U.N. peacekeepers along the border between Russia and Ukraine, something Kyiv and Washington favor.

Putin this month suggested armed U.N. peacekeepers be deployed to eastern Ukraine to help protect ceasefire monitors from the Organization for Security and Cooperation in Europe (OSCE) and to help end a conflict between Ukrainian troops and Russia-backed separatists, which has killed more than 10,000 people since 2014.

German Chancellor Angela Merkel has called the proposal “interesting,” while Kurt Volker, the U.S. envoy to Ukraine peace talks, says the suggestion gives negotiators more ideas with which to seek a resolution to the conflict. But differences about where the peacekeepers would operate risk sinking the plan.

Putin originally said the peacekeepers could be deployed along the line of contact between Ukrainian government forces and pro-Russian separatists, but later said they could also be deployed in other areas where OSCE inspectors work.

Washington and Kyiv also want peacekeepers to be deployed along those parts of Ukraine’s border with Russia which Kyiv does not control.

However, Valentina Matviyenko, speaker of the Russian upper house of parliament and a close Putin ally, said on Sunday Moscow strongly objected to that idea.

“I don’t see any logic in such a proposal,” Matviyenko, visiting Turkmenistan, told reporters, the Interfax news agency reported. “Those who would like to surround the residents of the self-proclaimed republics of Donbas [parts of Donetsk and Luhansk regions] with barbed wire or to simply destroy these people … will not succeed.”

India PM Modi Inaugurates Controversial Dam Project

Prime Minister Narendra Modi inaugurated India’s biggest dam on Sunday, ignoring warnings from environment groups that hundreds of thousands of people will lose their livelihoods.

The controversial Sardar Sarovar Dam on the Narmada river in the country’s western state of Gujarat that will provide power and water to three big states was dedicated to the people of India by Narendra Modi.

The project has been beset by controversies since the laying of the foundation stone by Prime Minister Jawaharlal Nehru in 1961. The construction of the project began in 1987.

The dam is the second biggest dam in the world after the Grand Coulee Dam in the United States.

Ahead of the inauguration Modi said in a tweet, “This project will benefit lakhs of farmers and help fulfil people’s aspirations.” (1 lakh = 100,000)

The dam is expected to provide water to 9,000 villages and the power generated from the dam would be shared among three states — Madhya Pradesh, Maharashtra and Gujarat.

The Narmada Bachao Andolan (NBA), led by social activist Medha Patkar, has been protesting against the project, raising several environmental concerns.

Construction on the dam had been suspended in 1996 following a stay by the Supreme Court which allowed work to resume, four years later, but with conditions.

Patkar and her supporters started the protest against the inauguration of the dam on Saturday and the opening of its gates which would raise the level of water and risk displacing several villages.

“Today is a very sad day for India, and for one of our biggest peoples’ movements and struggle — the Narmada Bacchao Andolan,” Ravi Chellam, executive director at Greenpeace India said in a statement.

“The Sardar Sarovar Project… signals ruin not development for tens of thousands of unsuspecting, hapless and poor farmers,” Chellam added.

Russian Influence on US Elections Renews Attention to Russian Adoption Ban

The investigation into Russian influence on the US elections has renewed attention to the Russian ban on US adoptions, a response to American sanctions about five years ago. Donald Trump Jr. said that was the topic when he met with a Russian lawyer during his father’s election campaign. As Svetlana Prudovskaya of VOA’s Russian service reports, the adoption ban has affected families and children in both countries.