Доба на Донбасі минула без втрат серед військових ЗСУ – штаб

У зоні бойових дій на Донбасі 28 січня жодний український військовий не загинув і не був поранений, повідомляє штаб української воєнної операції. За цими даними, підтримувані Росією бойовики здійснили 4 обстріли укріплень Збройних сил України.

«На луганському напрямку у вечірній час бойовики активізувалися на Світлодарській дузі. Ворог зі 120-міліметрових мінометів та великокаліберних кулеметів декілька разів вів вогонь довкола Луганського. Міномети цього ж калібру противник застосував по наших позиціях неподалік Троїцького. На донецькому напрямку з гранатометів незаконні збройні формування обстрілювали опорні пункти сил АТО біля Широкина», – йдеться в повідомленні.

В угрупованні «ДНР» ще не оприлюднили повідомлень про бойові дії 28 січня. В угрупованні «ЛНР» заявили про чотири випадки порушення перемир’я з боку українських військових.

Тристороння контактна група щодо врегулювання ситуації на Донбасі оголосила черговий, новорічно-різдвяний, «режим тиші» з півночі 23 грудня 2017 року. Нинішнє нове перемир’я, як і попередні, порушується практично щодня. Сторони заперечують свою вину в цьому і звинувачують противників у провокаціях.

Америка вдарить по оточенню Путіна. Наскільки боляче? – Ранковий ефір Радіо Свобода

Що спільного між героями Крут і сучасними оборонцями Донбасу? На які поступки від Путіна чекає Вашингтон, оприлюднюючи «кремлівську доповідь»? Що привіз президент Порошенко з Давоса?

Poland Proposes Holocaust Law, Israel Objects

Israeli Prime Minister Benjamin Netanyahu said Sunday Israel will not tolerate “distortion of the truth, rewriting history, and denial of the Holocaust.”

Netanyahu was speaking out against a proposed law in Poland imposing fines and jail time on anyone who refers to the Nazi genocide of Jews as being a Polish crime, or the Nazi death camps as Polish death camps.

Israel’s foreign ministry summoned the Polish ambassador Sunday to express its objections.

Israel’s Yad Vashem Holocaust memorial also warned against trying to change history.

“Restrictions on statements by scholars and others regarding the Polish people’s direct or indirect complicity with the crimes committed on their land during the Holocaust are a serious distortion,” it said in a statement.

Some experts fear the new Polish law could also mean jail for Holocaust survivors when talking about their ordeals.

Poland’s President Andrzej Duda, recognizing the extreme sensitivity of the law, promised Sunday to give it a “careful analysis” before signing it if it passes the Polish senate.

Poland was home to one of the world’s most thriving Jewish populations before Nazi Germany invaded in 1939. It murdered about 3 million Jews in death camps set up in Poland, including such chilling places as Auschwitz and Treblinka.

Holocaust survivors who returned to Poland after the war found themselves victims of further anti-Semitism. Some historians say many Poles collaborated with the Nazis in persecuting Jews.

Poland regards itself as having itself been a victim of Nazi terror and resents being blamed for crimes carried out by Hitler and his gang of murderers.

On Sunday, Poland’s Prime Minister Mateusz Morawiecki tweeted a metaphor comparing Jews and Poles in pre-war Poland.

“A gang of professional thugs enters a two-family house,” he wrote. “They kill the first family almost entirely. They kill the parents of the second, torturing the kids. They loot and raze the house. Could one in good conscience say that the second family is guilty for the murder of the first?”

Russia’s Winter of Election Discontent

Several thousand people braved sub-zero temperatures in cities across Russia to protest what they say is a lack of competition ahead of March presidential elections all but guaranteed to extend Vladimir Putin’s grip on power through 2024.

The rallies were part of a nationwide “Voters Strike” called by opposition leader and erstwhile presidential candidate Alexey Navalny, an anti-corruption campaigner who has been blocked from participating in the elections over legal problems widely seen as manufactured to keep him out of the race.

“We demand a real contest. Even many supporters of Putin say ‘why wouldn’t he participate in a competitive election?’” said Vladimir Milov, a Navalny campaign adviser, in an interview with VOA at the Moscow rally.  

“They believe Putin can beat Navalny, and we believe Navalny can beat Putin,” he added.  

“That’s what elections are all about.”

Yet Sunday’s protests reflected a realization among Navalny’s camp that such a direct contest will not take place. 

Barred from participating by Russia’s courts and state election commission, Navalny’s campaign has shifted to calls to boycott the election — arguing low voter turnout nationwide will take the shine off a Putin victory and high voter approval ratings that, they argue, are inflated by state manipulation. 

“We are not going to take part in this election,” said Vladislav Sovostin, a small business owner, as the crowd shouted “Strike! Strike!” “Boycott!” and “These Aren’t Elections!” 

“We are going to monitor the vote and not allow them to falsify the election for Putin,” he added.

Arrests

Organizers argued that protests took place in over 100 cities across the country — with several approved in advance by authorities.  Notable exceptions were Russia’s two main cities — Moscow and St. Petersburg — where police and interior ministry troop presence were heavy and authorities threatened arrests. 

OVD-Info, a civic police monitoring group, reported 340 people had been detained nationwide.

Many of those included Navalny surrogates and campaign volunteers in cities such as Tomsk, a Siberian university town where the local independent TV-2 channel reported 10 arrests. 

In Moscow, police also stormed Navalny’s Anti-Corruption Foundation, where an online video feed of the day’s events was shut down after police broke through office doors with a chainsaw. 

 

Navalny, too, had little opportunity to take part in the event he organized.

Video published online (LINK https://twitter.com/navalny/status/957581631921033216)  showed police roughly dragging him into a police van almost as soon as he arrived on Moscow’s central Tverskaya Street.  

“I’ve been detained. That doesn’t matter,” he posted minutes later on Twitter.  “Come to Tverskaya. You’re not coming out for me, but for yourself and your future.”

Generational shifts

Once again, the faces of younger Russians — many in their teens and early 20s who have grown up under Putin’s rule — were prominent at rallies across the country. 

“The authorities are used to thinking that Russians will just sit quietly and wait for change. Well, our generation won’t wait. We want a better life,” says Ivan Savin, a high school student who attended the rally.

He also admitted to telling his parents he was “out with friends” for the day rather than out protesting the Russian president. 

“Only because they’ll worry and think I’ll get arrested.” 

His classmate, Valerie Koltsov, added that other friends felt the same.

“I know a lot of people who don’t come because it really does scare them. They think they’ll get fined for not doing what the government tells them.”

Turnout tactics

Indeed, turnout was smaller than previous Navalny-led protests from the past year, when tens of thousands of Russians came out to protest alleged corruption at the highest levels of government.

Few doubt that Navalny’s message — fueled by an effective social media campaign — has connected well beyond Moscow and into the regions. 

But Sunday’s smaller numbers, despite temperatures as low as -40C in Siberia, were all but certain to fuel debate in opposition circles over the wisdom of Navalny’s call for a nationwide boycott of the vote.

The tactic, critics point out, demands widespread participation or risks simply increasing Putin’s margin of victory. 

Ksenia Sobchak, a television star-turned-opposition figure whose own presidential bid has been tacitly endorsed by the Kremlin, is among those calling on anti-Putin forces to register their dissatisfaction by supporting her “Against All” candidacy at the ballot box rather than on the streets. 

Navalny’s supporters have largely derided Sobchak’s campaign as a Kremlin ploy to legitimize the vote. 

Yet Ludmilla Sidodova, a pensioner at the Moscow rally who was a veteran of the massive pro-democratic movement of the late-Soviet period, argued it would simply take a wider movement if Russians hoped to evoke real change.

She was among hundreds of thousands who once had demanded change, and suggested a new generation could learn from that history.  

“I wish they’d understand that we did what we could. Maybe it wasn’t always enough. But now it depends on them,” Sidodova said.  “Whatever life they decide they want is the life they’ll have.”

IKEA Furniture Magnate Ingvar Kamprad Dies at 91

Ingvar Kamprad, who founded Sweden’s IKEA furniture brand and transformed it into a worldwide business empire, has died at the age of 91.

Kamprad died Saturday of pneumonia in the southern Swedish region of Smaland where he grew up on a farm, and with some modest financial help from his father, starting selling pens, picture frames, typewriters and other goods. It was the start of what became IKEA, now with 403 stores across the globe, 190,000 employees and $47 billion in annual sales.

His brand became synonymous with the simplicity of Scandinavian design, modest pricing, flat-pack boxing and do-it-yourself assembly for consumers. It turned Kamprad into an entrepreneur with a reported net worth of $46 billion. The company name was an acronym of his initials, the name of his farm, Elmtaryd, and his town of origin, Agunnaryd.

Swedish Prime Minister Stefan Lofven said Kamprad “was a unique entrepreneur who had a big impact on Swedish business and who made home design a possibility for the many, not just the few.” King Carl XVI Gustaf called Kamprad a “true entrepreneur” who “brought Sweden out to the world.”

Kamprad’s life was not without controversy, however.

He faced sharp criticism for his ties to the Nazi youth movement in the 1940s. While Sweden was neutral during the war, its Nazi party remained active after the war. Kamprad said he stopped attending its meetings in 1948, later attributing his involvement to the “folly of youth,” and calling it “the greatest mistake of my life.”

While he eventually returned to Sweden, Kamprad fled his homeland’s high-tax structure for Denmark in 1973 and later moved to Switzerland in search of even lower taxes.

The European Commission last year launched an investigation into ways IKEA allegedly used a Dutch subsidiary to avoid taxes, with the Green Party contending the company avoided $1.2 billion in European Union taxes between 2009 and 2014. The Consortium of Investigative Journalists identified IKEA in 2014 as one of the giant multinationals that moved money to tax havens to avoid taxes.

Kamprad was known for his frugality, buying his clothes at thrift shops, driving an aging Volvo and bringing his lunch to work.

США почали підготовку до надання Україні «Джавелінів» – Волкер

Сполучені Штати Америки почали підготовку до того, щоб передати Збройним силам України американські протитанкові ракетні комплекси «Джавелін», підтвердив спеціальний представник Державного департаменту США у справах України Курт Волкер в ексклюзивному інтерв’ю для Радіо Свобода.

«Потрібен час, щоб усе підготувати: об’єкти, де все зберігатиметься, способи передачі. Ми працюємо разом над тим, як їх транспортувати і залучити до роботи Збройних сил», – сказав він.

«І я хочу наголосити, що це – оборонна техніка. Вона корисна тільки тоді, коли є танковий напад. Тоді його можна нейтралізувати. Тож це – саме захисне озброєння, не для нападу і не для застосування на лінії конфлікту. І я думаю, Україна багато в чому поділяє цю позицію», – додав Курт Волкер.

При цьому він зазначив: «Ми лише сподіваємось заповнити деякі «білі плями» в оборонних потужностях України, щоб завадити подальшому розпалюванню конфлікту – це найменше, чого би ми хотіли».

Міністр оборони України Степан Полторак днями заявляв, що конкретний час отримання ПТРК Javelin на озброєння Збройних сил України стане відомий на початку наступного місяця – після його візиту до США 2 лютого.

У середині січня начальник Генерального штабу збройних сил України Віктор Муженко заявляв, що дав розпорядження готуватися до прийняття цих комплексів на озброєння.

22 грудня Державний департамент США оголосив про схвалення «розширених оборонних можливостей» для України. Офіційний Вашингтон не вказував, яка конкретно зброя може бути надана Україні, але американські засоби інформації повідомляли, що серед цих озброєнь можуть бути протитанкові ракетні комплекси «Джавелін».

ПТРК Javelin діє за принципом «вистрілив і забув» – після пуску ракета наводиться на обрану ціль сама і не потребує супроводу оператора. Також серед переваг цього комплексу – можливість вражати броньовану ціль згори, з найменш захищеного напрямку. Серед недоліків системи називають значну вартість і пускових установок, і ракет, велику вагу комплексу, який оператор застосовує «з рук», тримаючи на плечі, а також неможливість після пуску виправити траєкторію ракети, якщо її система самонаведення помиляється.

Повністю ексклюзивне інтерв’ю з Куртом Волкером читайте на сайті Радіо Свобода.

Spain: Puigdemont Will Ask Judge to Return for Investiture

A leading separatist lawmaker says that Catalonia’s fugitive ex-president Carles Puigdemont will request permission from a Spanish judge to attend a parliamentary session to form a new regional government.

Josep Rull told Catalunya Radio Sunday that Puigdemont will ask for judicial authorization to attend Tuesday’s investiture debate in Barcelona during the next 24 hours.

Spain’s Constitutional Court ruled on Saturday that Puigdemont must be present at the parliament to be chosen as the region’s chief. It also said that he must ask for a judge’s permission to do so.

Puigdemont fled Spain after Catalonia’s parliament made an unsuccessful declaration of independence on Oct. 27 in violation of Spain’s Constitution.

He is wanted in Spain on possible rebellion and sedition charges and is likely to be arrested if he returns.

Navalny Supporters Protest, Call for Election Boycott

Hundreds of supporters of Russian opposition leader Alexei Navalny began a nationwide day of protest against the authorities Sunday, calling on voters to boycott what they said was a rigged presidential election March 18.

Beneath bright blue skies, hundreds of young people gathered in the main square of the port of Vladivostok in the Russian Far East. Speakers called the election, which polls show incumbent Vladimir Putin should easily win, a farce.

“I will go to the elections when there’s a choice,” read one placard in Vladivostok, a reference to the fact that Navalny has been barred from running over what he says is a trumped up suspended prison sentence. “Putin is gobbling up Russia’s future,” read another.

Other protests took place in Novosibirsk, Kurgan, Omsk, Magadan, Kemerovo and Yakutsk. Navalny’s supporters said they expected thousands of people to take part in similar demonstrations in 118 towns and cities.

“Your own life is at stake,” Navalny, who organized the boycott protests, said in a pre-protest video. “How many more years to do you want to live with these thieves, bigots and creeps?”

​Navalny office invaded

In Moscow, where a protest is expected later Sunday, police forced their way into Navalny’s office and started questioning and searching people, citing reports of a bomb, an online feed run by Navalny’s supporters showed.

Police shut down a TV studio at the office that had been broadcasting online news bulletins, but another studio in a different location continued to operate.

Police detained six of Navalny’s supporters at the Moscow studio and around 16 protesters in other parts of Russia, OVD-Info, an independent monitoring group, said.

It was unclear where Navalny was, but a group of police officers was stationed near his home. Navalny said he planned to attend the Moscow protest later Sunday.

Possible violence

Police warned beforehand they would harshly suppress any illegal protest activity and authorities refused to authorize events in Moscow and St Petersburg, the country’s two biggest cities, raising the possibility of possible violence.

Navalny, a lawyer who has campaigned against official corruption, was barred from running in the election by the central election commission in December over what he said was a trumped up suspended prison sentence.

The United States and the EU criticized the decision.

Putin, who has dominated the Russian political landscape for the past 18 years, described U.S. criticism of the election’s commission’s decision as crude interference in Russia’s internal affairs and suggested Navalny was Washington’s pick for the presidency.

Polls show Navalny had scant chance of beating Putin, but Navalny says the system is rigged against political opponents like himself, which makes polls meaningless.

While there is little suspense about the outcome of the election, there is keen interest in voter turnout as media reports say the Kremlin wants to ensure Putin is re-elected on a turnout of around 70 percent or more as it sees high turnout as lending him greater legitimacy.

Though Navalny can’t run against Putin and says he knows Putin will be re-elected, his spoiler campaign is aimed at lowering voter turnout to try to take the shine off a Putin win.

ОБСЄ: на формі бойовика «ЛНР» помічена пов’язка, яку носили офіцери Росії при СЦКК

Спеціальна моніторингова місія ОБСЄ на Донбасі заявляє, що її члени побачили на формі бойовика «ЛНР» пов’язку, яку носили офіцери Росії при Спільному центрі контролю й координації режиму припинення вогню на сході України.

«Перебуваючи на блокпості «ЛНР» на південь від мосту в Станиці Луганській (15 кілометрів на північний схід від Луганська), спостерігачі розмовляли з членом «ЛНР», у якого була така ж нарукавна пов’язка, як і ті, які носили офіцери Російської Федерації при СЦКК», – зазначили в ОБСЄ.

Росія вивела своїх представників з СЦКК наприкінці 2017 року. 19 грудня в російському МЗС заявили, що вони покинули Україну через «напружену морально-психологічну ситуацію» і «зневажливе ставлення українських військовослужбовців». Українські представники вважають, що виведення Росією своїх представників із СЦКК є спробою Кремля змусити Київ вести переговори з представниками сепаратистських угруповань «ДНР» і «ЛНР».

Court: Catalonia’s Fugitive Leader Must be Present to Win Re-election

Spain’s top court said Saturday that Catalonia’s fugitive ex-president must return to the country and be present in the regional parliament to receive the authority to form a new government.

The Constitutional Court ruled that a session of Catalonia’s parliament scheduled for Tuesday would be suspended if former leader Carles Puigdemont tries to be re-elected without being physically present in the chamber.

The court also said that Puigdemont must seek judicial authorization to attend the session.

Catalonia’s separatist lawmakers have been considering voting Puigdemont back in as regional chief without him returning from Belgium, weighing options that included another parliament member standing in for him or him addressing the lawmakers via video.

The separatist leader fled Spain after the regional parliament made an unsuccessful declaration of independence on Oct. 27 in violation of Spain’s Constitution. He is wanted in Spain on possible rebellion and sedition charges and is likely to be arrested if he returns.

The court also ruled that neither Puigdemont nor the four other former members of his Cabinet who also fled to Belgium to avoid a judicial summons three months ago could delegate their vote for Tuesday’s session in another candidate.

The court included a warning to the speaker of the Catalan parliament and the other members of his board that they would be breaking the law if they disobey the rulings.

It is still unclear whether the separatist majority in Catalonia’s parliament will heed the court’s ban on voting Puigdemont back into power unless he is there.

Nor is it a sure bet that Puigdemont won’t try to avoid police and return to the parliament come Tuesday, even if it would likely lead to his arrest either before or after the debate. 

The independence declaration in October brought to a head Spain’s worst political crisis in decades. Spain responded by invoking special powers allowing it to fire the regional government, dissolve Catalonia’s parliament and call fresh regional elections in December.

Contrary to the Spanish government’s wishes, separatist parties regained a slim majority, keeping the conflict alive and rallying secessionists around the call to bring back Puigdemont.

Polls consistently show that most Catalans want the right to decide the region’s future, but are evenly divided over splitting from Spain.

Coincheck to Return $425M in Virtual Money Lost to Hackers

Tokyo-based cryptocurrency exchange Coincheck Inc said Sunday it would return about 46.3 billion yen ($425 million) of the virtual money it lost to hackers two days ago in one of the biggest-ever thefts of digital money.

That amounts to nearly 90 percent of the 58 billion yen worth of NEM coins the company lost in an attack Friday that forced it to suspend withdrawals of all cryptocurrencies except bitcoin.

Coincheck said in a statement it would repay the roughly 260,000 owners of NEM coins in Japanese yen, though it was still working on timing and method.

Theft and security

The theft underscores security and regulatory concerns about bitcoin and other virtual currencies even as a global boom in them shows little signs of fizzling.

Two sources with direct knowledge of the matter said Japan’s Financial Services Agency (FSA) sent a notice to the country’s roughly 30 firms that operate virtual currency exchanges to warn of further possible cyber-attacks, urging them to step up security.

The financial watchdog is also considering administrative punishment for Coincheck under the financial settlements law, one of the sources said.

Japan started to require cryptocurrency exchange operators to register with the government in April 2017. Pre-existing operators such as Coincheck have been allowed to continue offering services while awaiting approval. Coincheck’s application, submitted in September, is still pending.

Coincheck told a late-Friday news conference that its NEM coins were stored in a “hot wallet” instead of the more secure “cold wallet,” outside the internet. Asked why, company President Koichiro Wada cited technical difficulties and a shortage of staff capable of dealing with them.

Shades of Mt. Gox

In 2014, Tokyo-based Mt. Gox, which once handled 80 percent of the world’s bitcoin trades, filed for bankruptcy after losing around half a billion dollars worth of bitcoins. More recently, South Korean cryptocurrency exchange Youbit last month shut down and filed for bankruptcy after being hacked twice last year.

World leaders meeting in Davos last week issued fresh warnings about the dangers of cryptocurrencies, with U.S. Treasury Secretary Steven Mnuchin relating Washington’s concern about the money being used for illicit activity.

Canada Hopes NAFTA Talks Proceed to Next Round; Some Progress Made

Officials trying to settle differences over how to update the North American Free Trade Agreement have made some progress and hope politicians decide the talks should continue, Steve Verheul, Canada’s chief negotiator, told Reuters on Saturday.

The United States, Canada and Mexico are due to finish the sixth of seven planned rounds of NAFTA discussions on Monday, with several major issues far from being resolved.

U.S. President Donald Trump, who describes the $1.2 trillion pact as a disaster, has frequently threatened to walk away from it unless major changes are made.

U.S. Trade Representative Robert Lighthizer, Canadian Foreign Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo will hold a news conference later Monday to announce the next steps.

Asked whether he thought the three ministers would decide there is enough momentum to continue with the next round, Verheul said: “Well, that’s our hope.”

Later in the day, he told reporters: “We’re moving in a slightly more positive direction. We’ll take that encouragement where we can.”

On balance, a ‘positive’

A Mexican official, who asked not to be named, said “we don’t foresee a negative reaction to the round. We believe the balance will be positive.”

Work is moving ahead on less contentious parts of NAFTA, the Mexican official and a Canadian source close to the talks said Saturday, and the three nations have closed a chapter on measures to fight corruption.

Canada and Mexico initially dismissed some of the main U.S. demands as unworkable but later made it clear they were ready to be more flexible.

During the sixth round, Canada raised what it called creative ways of meeting U.S. demands for higher North American content in autos, a sunset clause that would allow one party to quit the treaty after five years, and major changes to existing conflict resolution mechanisms.

“I think we have demonstrated we have engaged on most of the big issues,” Verheul said in his remarks to Reuters. “We’ve made progress on some of the smaller ones, so I think [it was] not a bad week.”

The Mexican official said that Canada’s proposals on rules of origin for autos, the sunset clause and conflict resolution mechanism were “positive, inasmuch as they are an attempt to move things forward.”

Speaking separately, a second Canadian government source said Ottawa was cautiously optimistic about the round, given that the U.S. side had not summarily rejected the proposals for compromise.

But the source, who requested anonymity because of the sensitivity of the situation, said much would depend on Lighthizer’s reaction on Monday.

Fear for pact’s future

Markets and industries are worried about the possible collapse of the $1.2 trillion pact.

“It’s unclear to us that anything that anyone does here will be enough … which is concerning for agriculture,” said Brian Innes, president of the Canadian Agri-food Trade Alliance.

“Our position with all the political parties is that the negotiations must go on,” said Juan Pablo Castanon, president of the Consejo Coordinador Empresarial, the umbrella group representing Mexican private sector interests at the talks.

“We want free trade, but not at any cost,” he said.

The talks were initially scheduled to wrap up by the end of March to avoid clashing with Mexico’s presidential election in July. Guajardo told Reuters on Friday that the process could be extended if need be.

Andres Manuel Lopez Obrador, the leftist front-runner in the presidential race, said on Friday that the renegotiation should wait until after the election so that the next government, which he aims to lead, would get a say in the treaty’s future.

Чубаров закликав кримчан бойкотувати вибори президента Росії

Голова Меджлісу кримськотатарського народу Рефат Чубаров закликав кримчан всіх національностей бойкотувати вибори президента Росії, які 18 березня вперше відбудуться на окупованому півострові. Таку заяву Чубаров зробив у Facebook після повідомлення про те, що російські силовики з ОМОНом і автозаками прибули до місця проведення засідання громадської ініціативи «Кримська солідарність» в Судаку 27 січня.

«Зрозуміло, що російськими окупантами здійснена чергова акція залякування кримськотатарських активістів. З іншого боку, дуже яскрава і переконлива акція, яка в максимально доступній формі показує всім жителям Криму, як поводитись 18 березня 2018 року, на який окупанти призначили незаконні вибори «президента» Росії», – заявив він.

Чубаров висловив сподівання, що більшість кримських татар не прийдуть на «вибори». Він також закликав кримчан всіх національностей бойкотувати цей процес.

«Після акцій, подібних до сьогоднішньої, кожен з тих нечисленних співвітчизників, хто, проявивши слабкість або малодушність, з’явиться 18 березня 2018 року на виборчі дільниці, виявиться вічним вигнанцем серед своїх співвітчизників і одновірців. Абсолютний бойкот незаконних в окупованому Криму виборів, призначених на 18 березня 2018 року. 18 березня 2018 року – жодного кримського татарина, жодного етнічного українця, жодного патріота України – жителя Криму, незалежно від його національності, на незаконно відкритих виборчих дільницях незаконно призначених виборів президента Росії в тимчасово окупованому Криму!», – написав голова Меджлісу кримських татар.

Вибори президента Росії призначені на 18 березня 2018 року, у річницю російської анексії Криму. Відповідний закон, який передбачає перенесення дати виборів, схвалили Державна дума і Рада Федерації Росії і підписав російський президент Володимир Путін.

Вперше у виборах президента Росії візьмуть участь кримчани – на окупованому півострові влашутують виборчий процес.

Поліція і Нацгвардія мають бути готові до роботи на звільнених від окупації територіях – Аваков

Національна поліція та Національна гвардія після деокупації Криму та Донбасу працюватимуть спільно на звільнених територіях, тому мають підготуватися вже зараз, заявив під час щорічної колегії МВС міністр внутрішніх справ Арсен Аваков.

«Вже скоро настане та фаза, коли Нацполіція України разом із Національною гвардією зайдуть на поки що окуповані території і там треба буде слідкувати за порядком. Звільняти і захищати окуповані території – дуже важка робота, і ми це вже робили, коли звільняли території Луганської і Донецької областей. Треба готуватися до неї вже зараз», – сказав Аваков. 

Міністр зазначив, що особливий вишкіл знадобиться, коли «період фальшивих мітингів, які відволікають увагу, пройде».

Нині українські правоохоронні органи присутні лише на підконтрольній Києву території Луганської і Донецької областей. На території окупованого Росією Криму діють підконтрольні Кремлю силовики.

Tillerson: Russia Using Energy as ‘Political Tool’ in Europe

U.S. Secretary of State Rex Tillerson accused Russia of using energy as a “political tool” in Europe as he held talks with his counterpart Saturday in Warsaw, Poland.

At a news conference with Polish Foreign Minister Jacek Czaputowicz following the discussions, Tillerson said the U.S. is opposed to the Nord Stream 2 natural gas pipeline, a proposed project that would connect Russia and Germany. Some Eastern European countries are also against the pipeline, which would give Russia a larger share of the natural gas market.

“Like Poland, the United States opposes the Nord Stream 2 pipeline,” Tillerson said. “We see it as undermining Europe’s overall energy security and stability and it provides Russia yet another tool to politicize energy as a political tool.”

Tillerson’s visit to Poland comes at a time when the U.S. is boosting exports of American liquefied natural gas (LNG) to central Europe and taking on Russia’s stronghold on energy supplies.

Senior U.S. officials have said Washington will help European nations diversify their energy supply so they will not be solely dependent on Russia.

 

On June 7, 2017, the first U.S. LNG shipment to Central Europe arrived in Poland. The State Department said at that time Washington “has worked closely with European partners to diversify European energy supplies through new sources of natural gas.”

Talks between Tillerson and Czaputowicz were held before Tillerson placed a wreath and made remarks at the Warsaw Ghetto Uprising Monument to commemorate the 73rd anniversary of the liberation of Auschwitz. Tillerson said the genocide that occurred at German concentration camps in Poland must never be repeated.

“On this occasion it reminds us that we can never, we can never, be indifferent to the face of evil. The Western alliance which emerged from World War Two has committed itself to ensuring the security of all, that this would never happen again.”

Tillerson’s trip to Poland is aimed at strengthening Washington’s “strategic partnership” with Warsaw in meetings with Polish leaders, with security ties and energy cooperation high on the agenda.

 

Tillerson also met Saturday with Polish Prime Minister Mateusz Morawiecki and Law and Justice Party Leader Jaroslaw Kaczynski, before wrapping up his European trip and returning to Washington.

 

UN to Send Envoy to Russia-Sponsored Syria Talks

The United Nations says it will participate in the Russian-sponsored Syrian peace meeting at the Black Sea resort of Sochi next week now that some of its concerns have been allayed.  The U.N. has just wrapped up two days of U.N.-mediated peace talks with Syrian government and opposition delegations in Vienna.

The U.N. Secretary-General Antonio Gutteres has decided to send his special envoy for Syria, Staffan de Mistura, to the Sochi meeting, which opens Monday.  De Mistura said a Russian statement persuaded the secretary-general that the U.N. should participate in the so-called Black Sea Peace Congress.  

“I took note of the statement by the Russian Federation that the outcome of the congress would be brought to Geneva as a contribution to the intra-Syrian talks process under the auspices of the U.N.”  

Gutteres said he was confident the congress in Sochi will be an important contribution to a revived intra-Syrian talks process mediated by the U.N. in Geneva.

Critics of the Sochi Congress, which is backed by Turkey and Iran, accuse Russia of trying to hijack the Syrian peace process from the United Nations and come up with a result that favors the government of Bashar al-Assad.  Syria’s opposition group agrees and says it will boycott the Sochi meeting.

De Mistura says the only sustainable solution to the Syrian crisis is through an inclusive Syria-led political process.

“The ultimate goal of a constitutional process is to enable the Syrian people to freely and independently determine their own future in U.N.-supervised parliamentary and presidential elections meeting the requirements laid out in resolution 2254,” de Mistura said.

Security Council resolution 2254 sets out the U.N.’s road map for peace in Syria.  Under the mandate, de Mistura notes a new constitution will be drawn up in Geneva under the auspices of the so-called Geneva process.

 

Turkey’s Erdogan Says He’s Ready to Risk Confrontation With US

A defiant Turkish President Recep Tayyip Erdogan warned Friday that he’s prepared to risk confrontation with the United States over Turkey’s military incursion into northern Syria, vowing to next target a Kurdish-held town where U.S. Special Forces are stationed.

Speaking to members of his ruling Justice and Development Party (AKP) in Ankara, a belligerent Erdogan shrugged off U.S. calls for Turkey to limit the incursion launched a week ago, saying the next town to be targeted after the Kurdish enclave of Afrin, where Turkish tanks have been grinding through winter mud, will be Manbij, raising the possibility of American troops being drawn inadvertently into the bruising fight between Turks and Syrian Kurds.

The Reuters news agency reports that Turkish Foreign Minister Mevlut Cavusoglu said Saturday the United States needs to withdraw from northern Syria’s Manbij region immediately, suggesting that an attack might be imminent.

 

On Wednesday, U.S. President Donald Trump expressed concerns in a phone call with Erdogan about the Turkish offensive aimed at ousting Kurdish militiamen the U.S. sees as allies in the battle against the Islamic State terror group. Trump urged him to limit the incursion and to avoid civilian casualties. The U.S. president, though, acknowledged Turkey’s legitimate security concerns, according to Turkish officials, who say that Trump asked Erdogan “not to criticize the U.S.”

Dramatic escalation

But speaking to AKP members, Erdogan outlined a far more expansive operation than he’s committed to before, indicating his readiness to order Turkish forces, along with thousands of allied Syrian rebels, remnants of the Free Syrian Army that led the fight against Syrian President Bashar al-Assad, to drive right across northern Syria all the way to Iraq.

That would mean attacking east of the Euphrates River the Kurdish stronghold of Rojava, which Syrian Kurds hope one day will become their own independent state. It would mark a dramatic escalation of Turkey’s offensive – as well as adding a massive complication in the already complex Syrian conflict.  

“We will rid Manbij of terrorists, as was promised before. Our battles will continue until no terrorist is left right up to our border with Iraq,” Erdogan said.

Turkish officials refer to Kurdish militiamen with the People’s Protection Units (YPG) as a terrorists. They say the YPG is an affiliate of the Turkey’s own outlawed Kurdish separatist group, the Kurdistan Workers’ Party (PKK), which has waged a three-decade-long insurgency against Ankara.

The Turkish offensive, oddly named Operation Olive Branch, “will continue until it reaches its goals,” Erdogan pledged. He made no reference to the fact that as many as 2,000 U.S. troops are stationed in Manbij or nearby. We will “walk on our road until the end,” Erdogan added.

Turkey shares a 911-kilometer-long border with Syria, around two-thirds of which is under YPG control. Manbij is some 100 km east of the mountainous pocket of Afrin, which has been the focus of the Turkish offensive so far. U.S. troops have been located in Manbij since 2016, when Islamic State militants were driven from the city by the YPG with American assistance.

Kurdish officials say they are ready to deploy militiamen from Rojava to reinforce about 10,000 YPG fighters in the crowded city of Afrin, which would mean weapons, including anti-tank missiles, supplied by Washington for use against jihadist militants being turned instead on the Turks and their Syrian rebel allies.

‘Confusion and conflict’

On Monday, U.S. Secretary of State Rex Tillerson said Washington would continue to pursue talks with Turkey and hoped to find a way to create a “security zone” that would meet Turkey’s “legitimate” security interests.” Senior Pentagon officials visited Ankara this week and sought to try establish a clear line between Afrin and other Kurdish-held territory and between different YPG units. Major Adrian Rankine-Galloway, a Pentagon spokesman, told reporters that “the armed Kurdish groups in Afrin” are not part of the U.S.-backed coalition against Islamic State.

But some analysts say that distinction is false, and former U.S. envoy to Turkey James Jeffrey says there is “confusion and conflict” in Washington about what steps to take.

Gonul Tol, an analyst with the Middle East Institute, a Washington-based policy research organization, says that persuading Erdogan not to move on Manbij will likely prove extremely difficult. He argues one of the driving factors behind the offensive is Erdogan’s goal of “galvanizing [Turkish] nationalists ahead of critical 2019 elections.”

Syrian Kurds have accused both the U.S. and Russia of stepping aside when it comes to Afrin, which has an estimated population of more than 300,000 after having been swelled by refuges from other parts of war-torn Syria. Russian advisers were based in Afrin but were withdrawn by Moscow just days before Operation Olive Branch was launched. Erdogan claimed last week that he and Russian President Vladimir Putin have an agreement over the Turkish incursion.

A Kurdish official told al-Sharq al-Awsat, a Saudi-owned pan-Arab newspaper, that the Kremlin brokered a meeting between the YPG and the Syrian government 48 hours before the Turkish offensive. He said the Kurds were told to hand over Afrin to President Assad as a way to avoid a Turkish attack and it was when they refused that the Russian military advisers were removed from Afrin.

Russia has been wooing the Kurds but appears now to have chosen the Turks in the conflict with the Kurds. Russian analysts say Turkey is more important in Moscow’s plans for ending the Syria conflict in a way that benefits its ally Assad.

“Afrin’s defenders have a poor hand to play,” according to Aron Lund, an analyst at the Century Foundation, a New York-based think tank. He says that while the Turks risk getting bogged down during the offensive and the YPG could drag out an insurgency, the Syrian Kurds face a powerful foe in Turkey “whose goal is not to win concessions but to destroy it.” Kurdish leaders may have no option but “to negotiate with Moscow and Damascus, self-interested actors whose assistance will come at a steep price, if at all,” he says.

Operation Olive Branch is enjoying widespread public support in Turkey. Three of the country’s four main parties support the incursion amid a media frenzy backing the offensive. Ankara has moved against critics, and dozens who oppose the offensive, including at least five journalists, have been detained. Erdogan has pledged to “crush anyone who opposes our nationalist struggle.”

 

EPA Puts Brakes on Approval Process for Gold, Copper Mine

In a surprise move, the U.S. Environmental Protection Agency reversed itself Friday and stopped the approval process for the proposed Pebble Mine copper and gold mine project in southwest Alaska’s Bristol Bay region.

“It is my judgment at this time that any mining projects in the region likely pose a risk to the abundant natural resources that exist there,” EPA Administrator Scott Pruitt said in a statement.

President Donald Trump has championed increased domestic mining, and the EPA’s decision to halt the Pebble Mine’s approval process comes as a surprise.

“Until we know the full extent of that risk, those natural resources and world-class fisheries deserve the utmost protection,” Pruitt said.

The Obama administration blocked the proposed mine in 2014 over environmental concerns. Last year, Pruitt reversed that decision, allowing the Canadian company behind the mine project to apply for a permit from the U.S. Army Corps of Engineers.

The Pebble Limited Partnership, comprising Canadian miners Northern Dynasty Minerals Ltd and First Quantum Minerals Ltd, is planning to mine 1.2 billion tons of material, including 287 million pounds of copper.

Environmentalists, commercial and sport fishermen, many Alaska Native tribal organizations and even some Republican politicians have all criticized the project, which would be built on land near Lake Clark National Park.

Alaska Governor Bill Walker, an independent, applauded the decision and thanked Pruitt “for listening to my input and that of thousands of Alaskans” who oppose the mine.

Pruitt indicated the mine could ultimately be approved.

“This decision neither deters nor derails the application process of Pebble Limited Partnership’s proposed project,” he said.

“The project proponents continue to enjoy the protection of due process and the right to proceed. However, their permit application must clear a high bar, because EPA believes the risk to Bristol Bay may be unacceptable,” he said.

Pacific Trade Deal Will Move Forward Without the US

President Donald Trump’s “America First” policy on trade aims to reverse decades of lopsided exchange by withdrawing from international trade deals, renegotiating others and raising tariffs on foreign-made goods destined for the U.S. But, in a connected global economy, analysts warn the U.S. could find itself increasingly isolated as other countries rush forward to embrace new trade deals. Mil Arcega reports.

Alaska Delegation Wants Some Waters Out of Drilling Plan

Alaska’s all-Republican congressional delegation three weeks ago praised Interior Secretary Ryan Zinke after he announced nearly all federal waters off the state’s coast could be offered for petroleum lease sales.

But after hearing from critics who do not want drilling in their home waters, U.S. Sens. Lisa Murkowski and Dan Sullivan and Rep. Don Young are backtracking.

In a letter Friday to Zinke, the delegation requested that most Alaska waters from the state’s Panhandle to the Bering Strait be removed from the proposed five-year drilling plan.

Instead, they urged lease sales in only three areas: Cook Inlet, where petroleum platforms have extracted oil and natural gas for decades, and the Arctic waters of the Chukchi and Beaufort seas.

“We believe the strongest near-term offshore program in Alaska is one that focuses on the Chukchi, Beaufort and Cook Inlet,” they wrote. “Such a program will maximize agency resources and reflect the areas with the broadest support for development among Alaskans.”

Zinke announced the proposed lease sale plan Jan. 4. He said revisions could be made after public comment.

Immediate opposition

The proposal excluded only one area of Alaska: the North Aleutian Basin, home to Bristol Bay and the world’s largest run of sockeye salmon.

The proposal drew immediate opposition from governors in East and West Coast states. After Florida Gov. Rick Scott, a Republican, met with Zinke, the secretary announced that drilling would be “off the table” for waters in the eastern Gulf of Mexico and the Atlantic Ocean off Florida.

Subsistence resources

In Alaska, proposed lease sales in the Bering Sea drew strong condemnation from the Bering Sea Elders Group, an association of Alaska Native elders appointed from 39 tribes, and Kawerak Inc., a regional nonprofit organization, which said oil and gas activities pose a serious threat to marine life.

“These basins are where tribes from our region have harvested subsistence resources for millennia and where local people from our region fish and crab commercially,” Kawerak said in an announcement.

Drilling in the Beaufort and Chukchi seas, home to polar bears, walrus and ice seals that support the subsistence economies of coastal villages, is strongly opposed by environmental groups. They say the harsh climate makes spills inevitable and that cleanup of a major spill would be impossible in waters choked by or covered in sea ice.

Oil estimates

However, federal regulators say the Beaufort Sea, off Alaska’s north coast, holds an estimated 8.9 billion barrels of oil and the Chukchi, off Alaska’s northwest coast, holds an estimated 15.4 billion barrels.

Royal Dutch Shell spent $2.1 billion on Chukchi Sea leases in 2008, invested another $5 billion overall in U.S. Arctic waters, and pulled out after drilling a dry hole in 2015.

Murkowski, Sullivan and Young contend drilling in Arctic waters can be done safely. They said they strongly support the inclusion of the Beaufort and Chukchi seas for lease sales between 2019 and 2024, while at the same time urging “meaningful consultation” with communities.

Клімкін назвав нові санкції США свідченням тиску на Росію

Міністр закордонних справ України Павло Клімкін вважає введення нових санкцій США свідченням тиску на Росії через її агресію щодо України.

«Посилення тиску на Росію – нові санкції США. Крок за кроком санкції охоплюють всіх причетних до встановлення російської окупаційної адміністрації на українській землі», – написав Клімкін у Twitter.

Президент України Петро Порошенко після зустрічі із держсекретарем США Рексом Тіллерсоном у Давосі також подякував американській стороні за здійснювану політику санкцій проти Росії.

«Вдячний США за політику санкцій, які запроваджуються американськими партнерами проти російських резидентів. Для нас дуже важливо мати цей механізм впливу, щоб повернути Росію за стіл переговорів і забезпечити деокупацію Донбасу і звільнення Криму», – сказав президент.

26 січня США розширили список санкцій проти Росії через ситуацію в Україні – до списку санкцій потрапила 21 фізична особа. Також Мінфін США опублікував два списки, в яких загалом 21 компанія, зокрема, підприємства, які, як вказується, пов’язані з угрупованнями «ДНР» і «ЛНР». Під обмеження, зокрема, потрапили заступник міністра енергетики Росії Андрій Черезов, глава «Технопромекспорт» Сергій Топор-Гілка.

Після анексії Криму навесні 2014 року на частині Донбасу почався збройний конфлікт. Україна і Захід звинувачують Росію у підтримці проросійських бойовиків. Москва ці звинувачення відкидає.

Trump Warns Rivals About Trade Practices in Davos Speech

President Donald Trump has warned that the United States will no longer tolerate unfair trade practices and will always put America first in future trade deals. Giving the closing speech at the World Economic Forum in the Swiss resort of Davos on Friday, Trump lauded the performance of the U.S. economy under his leadership. The speech, however, was overshadowed by further controversy over alleged links between the president’s campaign team and Russia. Henry Ridgwell reports.

Tokyo-based Cryptocurrency Exchange Hacked, $530 Million Lost

Coincheck, a major cryptocurrency trading exchange in Tokyo, has been hacked into and has lost about $534 million worth of virtual money, national broadcaster NHK reported on Friday.

Coincheck posted on its website on Friday afternoon that it had suspended withdrawals of almost all cryptocurrencies.

The exchange has already reported the incident to the police and to Japan’s Financial Services Agency, NHK said.

In 2014, Tokyo-based Mt. Gox, which once handled 80 percent of the world’s bitcoin trades, filed for bankruptcy after losing some 850,000 bitcoins — then worth around half a billion U.S. dollars — and $28 million in cash from its bank accounts.

Defiant Moscow Cinema Shows Banned Stalin Comedy

A Moscow cinema has been warned after defying a government ban on showing The Death Of Stalin. (Please see related stories link for VOA story on “The Death of Stalin”) The black comedy was screened to a packed audience on January 25, and many said they didn’t find the satirical film offensive. (RFE/RL’s Russian Service)

US Slaps New Sanctions on Russian, Ukrainian Separatist Officials

The U.S. Treasury has announced new sanctions against Russian and Ukrainian citizens involved in the Russian annexation of Crimea, barring them from doing business with Americans and freezing any assets they hold under U.S. jurisdiction.

“The U.S. government is committed to maintaining the sovereignty and territorial integrity of Ukraine and to targeting those who attempt to undermine the Minsk agreement,” Treasury Secretary Steven Mnuchin said Friday, referring to the agreement under which Russia and Ukraine are obligated to support a cease-fire, withdraw heavy weapons, and support electoral reform.

The new sanctions target several Russian officials, including deputy energy ministers Andrei Cherezov, who is already under European Union sanctions for his role in transferring energy turbines to Crimea, and Evgenia Grabchak. Also listed is Sergei Topor-Gilk, director general of Technopromexport, a Moscow-based engineering firm that builds hydropower, geo-thermal and diesel power plants, power lines and electricity substations in Russia and abroad.

Eleven of the other people targeted are Ukrainian separatists holding government titles in the separatist areas that have proclaimed themselves Donetsk People’s Republic and Luhansk People’s Republic.

In addition to the individuals, the new sanctions target nine Russian companies involved with building infrastructure in the separatist-controlled areas of Crimea. The list also includes the foreign trade association Technopromexport, Power Machines, 12 subsidiaries of Surgutneftegaz, and Doncoaltrade, which is registered in Poland.

The United States and European Union say the separatists in Crimea are directly backed by Russian forces. They accuse Russia of sending personnel and weapons, funding, and supplies to Crimean separatists.

Russia announced in 2014 that it was annexing Crimea and denied accusations that it was arming and supporting separatist fighters there.

The U.S. Commerce Department announced Thursday that Russian company Abtronix had also been included on a separate sanctions lists. U.S. property and assets of Abtronix’s general director, Timofey Telegin, will be seized, and Telegin with be banned from entering the United States.

Treasury is expected to submit the list to Congress by January 29.

This story includes reporting from VOA’s Russian Service.

Екс-заступник Кличка уникнув відповідальності за фальшивий диплом «через закінчення строків давності»

Офіційне розслідування правоохоронців підтвердило інформацію, опубліковану журналістами програми «Схеми» (спільний проект Радіо Свобода та каналу «UA:Перший») стосовно підробленого диплому екс-заступника мера Києва, керівника апарату Київської адміністрації Володимира Бондаренка. Але Шевченківський районний суд столиці за клопотанням прокурора звільнив Бондаренка від кримінальної відповідальності за використання підробленого диплома про освіту «через закінчення строків давності». Це випливає з рішення суду, опублікованого у відкритому реєстрі. 

«Клопотання прокурора Київської місцевої прокуратури №10 Йовенко Д.Ф. про звільнення від кримінальної відповідальності… у зв’язку із закінченням строків давності – задовольнити», – йдеться в рішенні суду.

Як ідеться у матеріалах, Бондаренко вирішив підробити диплом бакалавра для подальшого використання. Він умисно повідомив невстановленій особі «свої особисті анкетні дані, які в подальшому були використані… для підроблення диплому бакалавра нібито виданого Львівським національним університетом імені Івана Франка, 30 червня 2009 року» на ім’я Володимира Володимировича Бондаренка. При цьому екс-заступник мера Києва заздалегідь «обіцяв придбати підроблений диплом».

Наголошується, що Бондаренко вчинив кримінальне правопорушення, а саме: пособництво у вчиненні злочину, передбаченого ч. 5 ст. 27 та ч. 1 ст. 358 (підроблення документів) Кримінального кодексу.

Слідство з’ясувало, що 16 листопада 2011 року Бондаренко «з метою засвідчення вірності фотокопії з підробленого диплома бакалавра…звернувся до приватного нотаріуса. Приватний нотаріус, будучи введеною в оману,…виготовила його фотокопію й посвідчила вірність з оригіналом».

Однак прокурор просив суд звільнити Бондаренка від кримінальної відповідальності у зв’язку із закінченням строків давності притягнення його до кримінальної відповідальності. Суд погодився з прокурором і закрив провадження.

Це рішення можна було оскаржити, однак відповідний термін для подання апеляції – 7 днів від дня оголошення – вже закінчився.

Мер Києва звільнив Володимира Бондаренка з посади керівника апарату Київської адміністрації після розслідування «Схем» про його підроблений дипломом юриста.

 

​31 серпня столична прокуратура оголосила Бондаренку підозру за підроблення документа про вищу освіту. 

Наприкінці 2017 року журналісти програми «Схеми» встановили, що попри звільнення, Володимир Бондаренко регулярно їздить у Київську міську держадміністрацію. Знімальна група помітила, як кілька днів поспіль екс-заступник Кличка приїздив на закриту парковку КМДА на авітівці, яка належить мерії, та користувався магнітною карткою для входу до будівлі.

З’ясувалося, що мер Києва Віталій Кличко підписав довіреності, якими уповноважив Бондаренка представляти інтереси Київради у судах. 

 


Analysts Skeptical of China’s Boast on Industrial Performance

The Chinese government recently claimed that 98 major state-run industries have turned in the best industrial and financial performance in 2017 compared to the past five years. These companies, which have assets totaling $9 trillion, produced a remarkable profit of $218 billion, an increase of 15.2 percent in profit in 2017, more than double the rate of national economic growth.

Industry experts are closely examining the report card because China’s state sector represents nearly 60 percent of the country’s industrial economy. It controls areas like natural resources, steel, energy, heavy machinery, telecommunication, defense and infrastructure sectors, where the private sector has little or no role.

The government’s claim has caused some surprise because state-owned-enterprises (SOEs) have been widely blamed for corruption and sloth, with many economists saying they are a drag on the national economy.

The New York-based Center on Foreign Relations reported this month that profits of Chinese SOEs plunged 33 percent between 2011 and 2016, while that of the country’s private-sector enterprises rose 18 percent in the same period. However, the government and state-owned banks continued funding the state sector, which drew 80 percent of industrial financing, it said.

Lagging behind private sector

Analysts said the SOEs managed to come up with a better balance sheet in 2017, with tremendous assistance from the government. But there was no real improvement in their management capabilities and market competitiveness.

“The improvement in profitability does not mean they are more efficient or more productive and they still aren’t as profitable as private companies,” said Scott Kennedy, deputy director at the Freeman Chair in China Studies at the Center for Strategic & International Studies.

One reason for the improved profits report may be the closure of dozens of coal mines and steel mills and hundreds of factories as part of an effort to overcome problems of overcapacity and chronically loss-making units. This came at a social cost as reduction in coal capacity by 27 million tons and in steel capacity by 5.95 million tons resulted in layoffs of millions of workers in mines and factories.

Another part of the improvement was achieved by sales and swaps of piled up debt at 20-30 percent of their original value, leading to massive losses for banks and financial agencies that gave the loans. Nearly $158 billion was infused into these companies, banks, stock and property markets and other sources in 2017.

Mergers also eliminated competition as two or more rival companies came together to form a stronger monopoly.

 

Monopoly creation

“Those survivors, they can enjoy the monopoly, that is why they can enjoy higher profit margins because of the monopolies,” CEIBS professor of finance and accounting Oliver Rui said, adding, “Usually they were competitors, now they have become one company.”

 

The State-owned Assets Supervision and Administration Commission, which manages the 98 enterprises owned by the central government, claimed a major success in reducing their debt burden. Its chief accountant, Shen Ying, told a recent news conference that central SOEs are confident and able to repay their debt and prevent systemic risks in 2018.

“There was no issue of bond default by central SOEs in 2017,” she said. “We will continue to push SOE reforms, in particular in their operational mechanism, methods of building a modern enterprise system, regulatory measures of State-owned assets and the cultivation of entrepreneurship in 2018.”

State owned banks were ordered to swap their unpaid loans into equity making them part owners of their customers, the SOEs. A part of the debt was converted into equity.

Jason Lee, an expert with the China Market Research Group said he expected the government to continue with the drive to reduce SOE debt by getting banks, stock and property markets to inject funds in 2018. “My estimation is that it won’t be double (compared to 2017) but probably around like 700 billion or 800 billion (Yuan), he said. An important issue is whether the government is merely rewriting the account books or state run companies are going through a major improvement in their functioning.

 

“Yes, that’s artificially solving the problem,” Rui said. “So, in the long run you need improve your performance through either by reducing the cost, or through enhanced efficiency or by increasing your pricing powers, you could sell your products at a higher price.”

 

New normal

Improvement in market prices of goods produced by the SOEs also played a key role in their improved balance sheets.

 

“Producer prices in China are growing and those products come mainly from SOEs and that’s the primary source for the turnaround in SOE performance, balance sheet performance,” Kennedy said.

Kennedy said the ruling Communist Party is not interested in allowing the bureaucracy-run SOEs to perform freely in terms of market dynamics.

The Communist “Party is increasing its supervision and management of SOEs. So I think, what you are seeing is a cyclical change in their financial position because of the price environment but not changes in the structural, systemic issues that make state owned enterprises less competitive and profitable than  the private sector,” Kennedy said.

The government has been publicly saying that it is focusing on the quality of life in terms of better performance in welfare areas like education, health and poverty alleviation and GDP numbers are not as important any more. But privately, it is pushing the industry to achieve higher growth because it cannot afford a major economic slowdown, analysts said. In this respect, the government is forced to rely on the state sector a lot more than the private sector.

“The private sector stopped investing because there are so many critical uncertainties. So, the SOE is the major driving force behind the GDP growth,” Rui said.

Report: Dutch Spies Caught Russian Hackers on Tape

Netherlands’ spy service broke into the computers used by a powerful Russian hacking group and may be sitting on evidence relating to the breach of the U.S. Democratic National Committee, a Dutch newspaper and television show jointly reported Friday.

Reports carried in the respected daily Volkskrant and the current affairs show Nieuwsuur say hackers working for the Dutch General Intelligence and Security Service penetrated the computers used by the group, often nicknamed Cozy Bear, in mid-2014 and watched them for at least a year, even managing to catch the hackers on camera.

Dutch officials declined comment; Interior Minister Kajsa Ollongren, interviewed by reporters in The Hague before the government’s weekly cabinet meeting, said she was “very happy that we have good security services in the Netherlands that do their work well. I can’t say anything about this case that has been published.”

Volkskrant and Nieuwsuur said that the Dutch spies used their access to help oust Cozy Bear from U.S. State Department computers in late 2014. Volkskrant said American spies were so grateful they sent the Dutch cake and flowers.

Cozy Bear would later be identified as one of two Russian government-linked hacking groups that broke in to the DNC ahead of the 2016 presidential election; the other is usually called Fancy Bear. Cybersecurity firm CrowdStrike says the two groups operated independently.

Unmasking the Cozy Bear hackers would provide key evidence for investigators trying to unravel the DNC breach, but it may not dispel the mystery surrounding the leaks that followed.

A recent AP investigation found that all but one of the two dozen or so officials whose emails were published in the run-up to the 2016 election were targeted by Fancy Bear, suggesting a separate Russian intelligence operation may have been responsible.

Satter reported from London.