0x815

cross-posted from: https://feddit.org/post/5167058

The Russian ruble plunged nearly 7% to trade at more than 110 per USD, the lowest on record excluding the short-lived selling immediately after Russia launched its invasion of Ukraine, as more sanctions against Russia dampened the outlook for inflows of foreign capital. The US sanctioned Gazprombank, the last major financial institution without penalties, to halt the transfer of payments from foreign markets to pay for Russian gas.

The ruble remained under pressure from Moscow relaxing capital controls as a weaker currency aids the Kremlin’s ability to finance its budget. Mandatory forex conversion for export revenues fell 25% from earlier in the year, significantly reducing demand for rubles.

Russian central bank intervenes to stop currency free fall

Russia's central bank said on Wednesday [27 November] it would stop foreign currency purchases in order to ease pressure on the financial markets after the rouble weakened beyond 110 to the U.S. dollar, 119 to the euro, down by one-third since early August.

The central bank said it had decided not to buy foreign currency on the domestic market from Nov. 28 until the end of the year, but to defer these purchases until 2025.

"The decision was made to reduce the volatility of financial markets," the regulator said in a statement. Since Russia was blocked from using the dollar and euro, it has made foreign exchange interventions using Chinese yuan.

Russia published new economic data on Wednesday highlighting the latest signs of overheating in an economy retooled for the purpose of fighting the war in Ukraine, which has sucked workers out of the labour force.

[Edit typo.]

The Russian ruble plunged nearly 7% to trade at more than 110 per USD, the lowest on record excluding the short-lived selling immediately after Russia launched its invasion of Ukraine, as more sanctions against Russia dampened the outlook for inflows of foreign capital. The US sanctioned Gazprombank, the last major financial institution without penalties, to halt the transfer of payments from foreign markets to pay for Russian gas.

The ruble remained under pressure from Moscow relaxing capital controls as a weaker currency aids the Kremlin’s ability to finance its budget. Mandatory forex conversion for export revenues fell 25% from earlier in the year, significantly reducing demand for rubles.

Russian central bank intervenes to stop currency free fall

Russia's central bank said on Wednesday [27 November] it would stop foreign currency purchases in order to ease pressure on the financial markets after the rouble weakened beyond 110 to the U.S. dollar, 119 to the euro, down by one-third since early August.

The central bank said it had decided not to buy foreign currency on the domestic market from Nov. 28 until the end of the year, but to defer these purchases until 2025.

"The decision was made to reduce the volatility of financial markets," the regulator said in a statement. Since Russia was blocked from using the dollar and euro, it has made foreign exchange interventions using Chinese yuan.

Russia published new economic data on Wednesday highlighting the latest signs of overheating in an economy retooled for the purpose of fighting the war in Ukraine, which has sucked workers out of the labour force.

[Edit typo.]

Russia's acts of sabotage against Western targets may eventually prompt NATO to consider invoking the alliance's Article 5 mutual defence clause, the head of Germany's foreign intelligence service said on Wednesday. Bundesnachrichtendienst chief Bruno Kahl said he expected Moscow to further step up its hybrid warfare.

"The extensive use of hybrid measures by Russia increases the risk that NATO will eventually consider invoking its Article 5 mutual defence clause," he noted.

[...]

Under Article 5, if a NATO member comes under attack, the other members of the alliance are obliged to help it respond.

[...]

Kahl said Russia's military would likely be capable of attacking NATO by the end of the decade, adding that Moscow's war on Ukraine meant that it had battle-proven troops under its command which raised the threat emanating from its conventional forces, while it also mastered modern drone warfare.

[...]

"We don't have any indication yet that Russia intends to go to war, but if such sentiments gain the upper hand in the government in Moscow, then the risk for a military confrontation will grow over the coming years."

Should Russia attack one or several NATO allies, it would not do so to grab massive swathes of land, Kahl said, but rather to test red lines set by the West with the aim of defeating Western unity and NATO as a defensive alliance.

"In Russia's view, this goal would be reached if Article 5 were to remain without effect in case of a Russian attack," he said.

"To meet this target, you don't need to send tank armies westwards, it is enough to dispatch little green men to the Baltics to protect allegedly threatened Russian minorities or adjust borders on Svalbard".

cross-posted from: https://feddit.org/post/5166328

Original WSJ article is behind a paywall.

A Chinese commercial ship is suspected of deliberately dragging its anchor to cut undersea cables that connect countries over the internet, The Wall Street Journal reports.

International investigators reportedly believe the crew aboard Yi Peng 3, a bulk carrier full of Russian fertilizer, dragged its anchor for more than 100 miles across the Baltic seabed, damaging the cables that run across it. Two different internet links — one between Sweden’s Gotland Island and Lithuania, and another between Finland and Germany — stopped working earlier this month, prompting the investigation by authorities from all four countries and other nations.

[...]

It’s not the first time European officials have suspected Russia of undersea infrastructure sabotage since Russia’s invasion of Ukraine. But officials have been hesitant to accuse the Kremlin outright of interference, the Journal reports, in part for fear of further escalating tensions between Russia and Europe.

Für hochrangige deutsche Geheimdienstler ist die Sache klar: Der chinesische Staat unterhält in Deutschland auch heute noch geheime Polizeistationen. "Im Grunde zeigt das sehr deutlich, dass die ganze Sache einfach in Ruhe weiterläuft", sagt der Thüringer Verfassungsschutzchef Stephan Kramer, nachdem er die RTL/ntv-Recherchen einsehen konnte. Ein Investigativ-Team von RTL/ntv hat herausgefunden, dass die verdeckten Strukturen weiter aktiv sind. Erstmalig bekannt wurden die Polizeistationen vor zwei Jahren.

Mit derartigen Einrichtungen, die manchmal auch als "Service-Stationen" oder "110 Overseas" bezeichnet werden, versucht das chinesische Regime, Exilchinesen im Ausland zu kontrollieren, chinafreundliche Erzählungen zu verbreiten und teils auch Kritiker unter Druck zu setzen. Damals kam es zu einem Aufschrei in der deutschen Öffentlichkeit. Offiziell hieß es, die Polizeistationen seien geschlossen worden. Doch exklusive Recherchen zeigen nun, dass mehrere der Telefonnummern noch immer funktionieren und die Personen dahinter immer noch die gleichen sind. Dies sind nach RTL/ntv-Recherchen eindeutige Indizien dafür, dass die Stationen offenbar teils noch aktiv sind.

[...]

"Das ist illegal, gar keine Frage"

Die chinesische Botschaft behauptet, sich stets an die Gesetze zu halten. Anderslautende Behauptungen seien "Fiktionen" und "böse Absicht". Recherchen zur gezielten Unterwanderung Deutschlands durch das chinesische Regime werden diskreditiert. "Solche reißerischen Behauptungen dienen nur der Verleumdung und Verunglimpfung Chinas", heißt es in einer Mail-Antwort der diplomatischen Vertretung in Berlin.

Stephan Kramer, Präsident des Verfassungsschutzes Thüringen, sieht die Entwicklungen mit großer Sorge. "Offensichtlich hat die Öffentlichkeit und die Empörung auch in der Öffentlichkeit nicht dazu geführt, dass die Stationen abgeschaltet wurden [...]", sagt Kramer.

Kramer fordert Aufklärung von der Politik: "Das ist illegal, gar keine Frage." In der Pflicht sieht der Verfassungsschützer jetzt auch das Auswärtige Amt: "Das ist ein grober Bruch auch von internationalen Beziehungen und internationalen Vereinbarungen."

Original WSJ article is behind a paywall.

A Chinese commercial ship is suspected of deliberately dragging its anchor to cut undersea cables that connect countries over the internet, The Wall Street Journal reports.

International investigators reportedly believe the crew aboard Yi Peng 3, a bulk carrier full of Russian fertilizer, dragged its anchor for more than 100 miles across the Baltic seabed, damaging the cables that run across it. Two different internet links — one between Sweden’s Gotland Island and Lithuania, and another between Finland and Germany — stopped working earlier this month, prompting the investigation by authorities from all four countries and other nations.

[...]

It’s not the first time European officials have suspected Russia of undersea infrastructure sabotage since Russia’s invasion of Ukraine. But officials have been hesitant to accuse the Kremlin outright of interference, the Journal reports, in part for fear of further escalating tensions between Russia and Europe.

cross-posted from: https://feddit.org/post/5165357

Companies around the world are starting to cut prices and costs and scale back activity in China, as the world's second-biggest economy continues to flag despite Beijing's efforts to turn things around.

Big names including Hermes, L'Oreal, Coca-Cola, United Airlines, Unilever, and Mercedes (MBGn.DE) said Chinese customers are curbing spending as a property crisis drags on and youth unemployment stays high.

Some are already shifting their China strategies. French carbon graphite maker Mersen said last week it would close a factory making power transmission products in China because it cannot compete with local rivals.

International food companies such as Danone and Nestle have meanwhile deepened price cuts or are seeking to boost online shopping volumes.

Coca-Cola CEO James Quincey said on an earning call that the operating environment in China remained challenging. "The economy is kind of not taking off," he told investors.

[...]

Birkin handbag maker Hermes is compensating for lower traffic in China with higher average basket values, selling jewellery, leather goods and ready-to-wear for men and women.

After opening a store in Shenzhen last week, Hermes plans a second opening in Shenyang in December and a flagship outlet in Beijing next year.

But for others, business in China has changed for the long term.

"We used to fly, I think, roughly 10 flights a day to China, and I think those days are gone," United Airlines CEO Scott Kirby said.

[...]

cross-posted from: https://feddit.org/post/5165249

German automaker Volkswagen (VW) on Wednesday announced it would sell its operations in China's northwestern Xinjiang region.

China has been accused of numerous human rights abuses in the region, including reeducation camps and forced labor targeting Uyghurs and other minority groups.

[...]

The Uyghur people are a Turkic-speaking and predominantly Muslim ethnic group that inhabit Xinjiang.

The region is also home to a smaller minority of ethnic Kazakh and Kyrgyz.

Human rights organizations have accused China of holding over a million people, mostly Uyghurs, in "reeducation camps," and making use of forced labor from detainees.

Last year, several activist groups filed a complaint in Paris targeting French and US companies, accusing them of being complicit in crimes against humanity in Xinjiang as a result of using subcontractors in China.

cross-posted from: https://feddit.org/post/5165357

Companies around the world are starting to cut prices and costs and scale back activity in China, as the world's second-biggest economy continues to flag despite Beijing's efforts to turn things around.

Big names including Hermes, L'Oreal, Coca-Cola, United Airlines, Unilever, and Mercedes (MBGn.DE) said Chinese customers are curbing spending as a property crisis drags on and youth unemployment stays high.

Some are already shifting their China strategies. French carbon graphite maker Mersen said last week it would close a factory making power transmission products in China because it cannot compete with local rivals.

International food companies such as Danone and Nestle have meanwhile deepened price cuts or are seeking to boost online shopping volumes.

Coca-Cola CEO James Quincey said on an earning call that the operating environment in China remained challenging. "The economy is kind of not taking off," he told investors.

[...]

Birkin handbag maker Hermes is compensating for lower traffic in China with higher average basket values, selling jewellery, leather goods and ready-to-wear for men and women.

After opening a store in Shenzhen last week, Hermes plans a second opening in Shenyang in December and a flagship outlet in Beijing next year.

But for others, business in China has changed for the long term.

"We used to fly, I think, roughly 10 flights a day to China, and I think those days are gone," United Airlines CEO Scott Kirby said.

[...]

Companies around the world are starting to cut prices and costs and scale back activity in China, as the world's second-biggest economy continues to flag despite Beijing's efforts to turn things around.

Big names including Hermes, L'Oreal, Coca-Cola, United Airlines, Unilever, and Mercedes (MBGn.DE) said Chinese customers are curbing spending as a property crisis drags on and youth unemployment stays high.

Some are already shifting their China strategies. French carbon graphite maker Mersen said last week it would close a factory making power transmission products in China because it cannot compete with local rivals.

International food companies such as Danone and Nestle have meanwhile deepened price cuts or are seeking to boost online shopping volumes.

Coca-Cola CEO James Quincey said on an earning call that the operating environment in China remained challenging. "The economy is kind of not taking off," he told investors.

[...]

Birkin handbag maker Hermes is compensating for lower traffic in China with higher average basket values, selling jewellery, leather goods and ready-to-wear for men and women.

After opening a store in Shenzhen last week, Hermes plans a second opening in Shenyang in December and a flagship outlet in Beijing next year.

But for others, business in China has changed for the long term.

"We used to fly, I think, roughly 10 flights a day to China, and I think those days are gone," United Airlines CEO Scott Kirby said.

[...]

German automaker Volkswagen (VW) on Wednesday announced it would sell its operations in China's northwestern Xinjiang region.

China has been accused of numerous human rights abuses in the region, including reeducation camps and forced labor targeting Uyghurs and other minority groups.

[...]

The Uyghur people are a Turkic-speaking and predominantly Muslim ethnic group that inhabit Xinjiang.

The region is also home to a smaller minority of ethnic Kazakh and Kyrgyz.

Human rights organizations have accused China of holding over a million people, mostly Uyghurs, in "reeducation camps," and making use of forced labor from detainees.

Last year, several activist groups filed a complaint in Paris targeting French and US companies, accusing them of being complicit in crimes against humanity in Xinjiang as a result of using subcontractors in China.

cross-posted from: https://feddit.org/post/5134864

Archived link

The Russian leader is revisiting the Cold War playbook by using mental manipulation to silence dissidents and its use is growing

[...]

A new Russian bill, which will become law in 2025, will allow the police to gain access to the medical records of people suffering from certain mental illnesses and who are deemed by psychiatrists to be a threat to public order.

Dmitry Kutovoy, a member of Russia’s Psychiatric Association, said he had concerns that amending legislation could contribute to creating a system of oppression using psychiatry. He warned that the authorities might put pressure on medical workers to designate certain people as “activists, political opponents, and so on”.

[...]

Abuse of psychiatry to persecute and intimidate state critics was a popular practice in the Soviet Union. Dissident Alexander Skobov was condemned to compulsory psychiatric treatment twice, in the 1970s and the 1980s [and is already being used by the Russian government to silence critics, e.g., against those to oppose Russia's war in Ukraine].

[...]

One recent high-profile case was that of Viktoria Petrova, who was arrested in May 2022. She was accused of “spreading false information” about the Russian military in anti-war social media posts.

Activist Anush Panina went to support Petrova during her trial in St Petersburg.

“All of a sudden, the court announced that the hearings would be closed to the public, and sent her to a psychiatric hospital,” Panina remembered, speaking to Index from exile.

“It was outrageous and frightening.”

Panina suspects Petrova was punished for continuing to speak up while in detention and on trial. In her final statement to the court, Petrova said that Russia’s war in Ukraine was “a crime against humanity”.

[...]