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Stripe Teams Up With Twitter in Renewed Crypto Payments Push

(Bloomberg) — Payments company Stripe Inc., one of the world’s most valuable startups, is stepping up its return to cryptocurrencies. 

Stripe said in a statement Friday that its first partner in the expansion will be Twitter Inc., allowing a select group of creators on the social-media platform to get crypto payments via the Stripe Connect platform.

The move is the latest manifestation of Stripe’s renewed interest in crypto after rivals such as Block Inc., PayPal Holdings Inc. and Checkout.com made inroads in the industry. Stripe suspended support for Bitcoin payments in 2018, but began recruiting crypto talent last year and in March said it was helping digital-asset exchanges FTX and Blockchain.com with online payments and customer verification. 

Creators on Twitter will be able to receive payments initially in the stablecoin USD Coin. The payouts across the Stripe Connect platform will be made using Polygon, a blockchain network designed to make Ethereum faster and easier to use. Stripe said it chose Polygon because of its speed and low transaction fees.

Green Focus

Stripe and Polygon also share an environmental focus. Polygon wants to eliminate its carbon footprint this year as the crypto industry continues to face criticism over energy usage. Stripe set up a new fund this month dedicated to supporting carbon dioxide removal technologies.

Adding Polygon support and USD Coin payments also represents new ground for Twitter, which introduced Bitcoin tipping last year. Creators will be able to earn USD Coin through monetized features on Twitter such as Ticketed Spaces and Super Follows.

Stripe plans to add support for other cryptocurrencies beyond USD Coin and give access to crypto payments in more than 120 countries by the end of 2022, in a further nod at the widening adoption of digital tokens.

Stripe raised $600 million last year in a fundraising round that valued the firm at $95 billion. The company processed $640 billion in payments in 2021, a 60% increase from a year earlier.

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©2022 Bloomberg L.P.

Biden’s New Antitrust Cops Alarm M&A Players With ‘Terrifying’ Rhetoric

(Bloomberg) — Less than a year into their new jobs, President Joe Biden’s competition regulators are infuriating the legal establishment they’ve wrested power from. 

“The current rhetoric is terrifying,” said Jonathan Jacobson, a lawyer whose clients include Alphabet Inc.’s Google and other large technology companies. 

For decades, U.S. regulators took a laissez-faire approach to mergers and sharp-elbowed competition. But a new generation of antitrust thinkers has taken charge in Washington and is eager to return to the trustbusting vigor of the early 20th century. 

At conferences, in op-eds and in speeches, the old guard is in high dudgeon, worried that the aggressive turn threatens the profits of their clients — some of the U.S.’s largest corporations — and potentially their own livelihoods. They complain that the new crew is sowing confusion as it subjects dominant companies to tougher scrutiny. 

The tension was on display at the first in-person American Bar Association antitrust conference since 2019 earlier this month in the nation’s capital. Jacobson and thousands of attorneys paid as much as $1,495 to attend the legal confab’s events and listen to industry veterans grapple with the newly combative antitrust enforcers. 

Openly Derisive

Some attendees were openly derisive of the so-called New Brandeisians, named for Supreme Court Justice Louis Brandeis, who in the early 1900s warned of the dangers of concentrated economic power. 

Barry Lynn, the director of the Open Markets Institute, a Washington policy group, and an ally of Federal Trade Commission Chair Lina Khan, accused professionals in the room of using “idiot science” over the past four decades to allow a consolidation of power that has weakened democracy. 

The room erupted into laughter when he finished speaking. “That was not dismissive laughter, that was nervous laughter,” Lynn said later. 

Khan, who previously worked for Lynn, built her reputation advocating once-fringe ideas that the traditional playbook for policing monopolies had failed, that more corporations should be broken up and that more mergers should be blocked outright. Those views now guide policy at the FTC and have been echoed by Biden, powerful senators like Elizabeth Warren of Massachusetts, and Khan’s counterpart at the Justice Department, Jonathan Kanter. 

Khan’s power to act, however, is limited: The FTC lacks a fifth member, leaving it split 2-2 along party lines and forcing the chair to win support from a Republican commissioner to get anything done. 

But the Senate is expected to confirm a fifth commissioner, Alvaro Bedoya, in the coming weeks. That would unleash Khan’s ability to more aggressively enforce her agenda.

The looming Democratic majority may help explain why one of Khan’s fiercest critics comes from within the agency. 

Christine Wilson, a Republican FTC commissioner, at a separate conference accused the new antitrust enforcers of being “hellbent on destroying” the FTC and accused Khan of fueling a staff exodus. An FTC spokesperson said the staff attrition rate in the 10 months since Khan took over “is on par” with that of the previous two chairpersons during the same period. 

The legal establishment bemoans that the FTC and Justice Department are abandoning the “consumer welfare standard,” which narrowly focuses on higher consumer prices when assessing the negative effects of mergers. The standard largely ignores factors like job losses, wage cuts, erosion of privacy protections or harm to small businesses. 

Many predict that legal challenges to mergers won’t make it past federal judges, who decide cases based on previous court decisions. 

Last week, juries in two separate cases acquitted executives accused by the Justice Department of conspiring to reduce workers’ pay and job prospects. The acquittals could signal headwinds to the Biden administration’s effort to use criminal antitrust charges to stop companies from colluding to lower labor costs. Kanter has said the antitrust division has to be ready to lose some cases to move the law in a different direction.

Biden’s appointees seem unfazed. Kanter warned at the ABA event that the Justice Department is taking an aggressive stand and litigating more cases than at any time in recent history. “We’re not afraid to take on big companies,” he said to a room of about 1,000 lawyers. On the same panel, Khan touted a trio of recently proposed mergers that were abandoned in the face of FTC challenges.

Four days earlier, Khan and Kanter hosted their own — free and live-streamed — “enforcer’s summit” to explain their agendas to the public. Some saw this as a snub to the ABA, whose annual conference is where antitrust enforcers traditionally discuss policy. 

By preempting the conference and delivering combative speeches, the newcomers are signaling that they don’t need the legal establishment to accomplish their goals, said William Kovacic, a Republican former FTC chairman who teaches at George Washington University Law School. “The dismissive view of the establishment does sting a lot of people,” he said.

Even if the new crew isn’t loved by the old guard, lawmakers listen to them. Progressive allies of Khan and Kanter dominate the antitrust debate in Washington, according to an analysis by the political-risk advisory firm Baron Public Affairs. 

Government officials, policy makers and lawmakers in both parties disproportionately cite left-leaning antitrust theorists, according to the analysis. It concludes that “left-of-center supremacy in the antitrust debate” would likely continue even under a Republican-controlled government.

Kovacic, the former FTC chair, credits the New Brandeisians for maneuvering their way into power. “They basically said to themselves, ‘We don’t have to work with the establishment, we are going to overwhelm it.’”

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©2022 Bloomberg L.P.

New Top Editor at the New York Times Sees Growth Beyond the Coasts

(Bloomberg) — Joe Kahn had just been named executive editor of the New York Times and already he’d become tabloid fodder. 

A photoshoot for New York magazine published Tuesday featured Kahn sprawled on the floor in a suggestive pose. After people poked fun at him on Twitter, a New York Post headline on Wednesday read: “NY Times’ new boss mocked over this sexy ‘French Girls’ photo spread.” 

“One of the things I’ve learned is that you should say ‘no’ to certain things that a photographer asked you to do to enhance the shot,” Kahn said in an interview Thursday. 

Such is the new reality for Kahn, 57, who was appointed on April 19 to perhaps the most powerful — and most heavily scrutinized — job in American media. Kahn, who has been the paper’s managing editor since 2016, will replace Dean Baquet, 65, who led the newsroom since 2014. 

With Kahn, the paper has an experienced newsman who shared two Pulitzer Prizes for reporting in China. A former foreign editor, Kahn said he’ll look to boost international readership as well as that in the middle of the U.S., moving journalists “as much as possible away from the coastal bases of coverage.”

Kahn takes over a newsroom that’s on stronger financial footing than when Baquet was appointed eight years ago. The Times has over 1,750 journalists and it’s become an industry model for attracting digital customers. The paper ended last year with 7.6 million total subscribers. It’s now set a new goal of attracting 15 million by the end of 2027, even with growth slowing since the Trump presidency drove a surge in readers. 

An article in Recode this month said Times business executives are concerned about a lack of diversity in a subscriber base that is “older, richer, whiter, and more liberal than the rest of America.”

Kahn said he was “aware, broadly speaking, that consumers of really high-quality news and information tend to be older and less diverse than the American population at large.” But he said that the demographics of the Times’ digital subscribers, including its podcast audience, are younger and more diverse than its print readership.

“I’m not really that worried about it,” he said. “The main way we improve our readership is to fire on all cylinders in terms of our journalistic mission.” 

He sees continued opportunity to convert casual readers into paid subscribers, using the internet as a tool to reel them in. “They might start with engagement on Facebook, they might start with a Google search,” Kahn said. “What we need to do is convert those readers into more digital news customers, and we’re doing it.”

A Harvard University graduate, Kahn is the son of a co-founder of the Staples office supply chain. In addition to reading the Times in print and online, Kahn says he tries to listen to every episode of “The Daily,” the Times’ hit podcast. He’s also a regular player of Wordle, the popular daily word phenomenon that the Times bought in January. 

“I’m a little competitive on it, mostly with my wife and kids,” he said. 

He said he “strongly endorsed” a recent memo from Baquet urging reporters to reduce their time on Twitter. Kahn said he encourages his reporters to engage with readers comments on the Times’ site, which he said are “super high quality.” 

One of Kahn’s big challenges will be changing the culture of the Times newsroom. Last year, an internal report found the paper is often a difficult place to work for Black and Latino employees. 

Kahn said he plans to “evolve the culture of the place” to make sure that employees from different racial backgrounds want to stay there long-term. 

“I think there are numerous times when we fell short in that way,” he said.

Kahn will also need to appease star reporters who have a wide range of other opportunities, like writing books and appearing on cable news and podcasts. Substack Inc., a startup that helps writers publish email newsletters, has tried to poach Times’ journalists by offering them large advances. 

“There are fads that come along every now and again, like everyone’s going to run off and start their own podcast on Spotify or everyone’s going to rush off to Substack and become an instant newsletter millionaire,” Kahn said. “We look at those things and make sure whenever possible that we’re retaining our best people.”

A potential tension in the newsroom emerged just days after he was named the next executive editor. On Thursday, the union representing Times staffers tweeted that the publisher was “pressuring us to return to the office in June” and the paper’s management needed to get the guild’s approval. 

Kahn said that the Times would be “flexible” with its return to office policy, particularly with employees taking care of immunocompromised people or those with young unvaccinated kids. But he said it was important for staffers to return to the newsroom a few days a week.

“You get a lot of value out of developing relationships with your fellow journalists,” Kahn said. “You pick up a lot and you start to feel a human connection to the place,” he added, sounding a lot like the foreign correspondent he once was.

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©2022 Bloomberg L.P.

Singapore Phases Out the Use of a Controversial Covid Contact Tracing App

(Bloomberg) — Singapore will move away from a key Covid-19 contact tracing app that previously attracted controversy due to government disclosures about its use for criminal investigations, but retain the data under a previously passed law.

The health ministry on Friday said most venues will no longer require the public to check in using the TraceTogether program from April 26, a mobile application and device used by authorities for identifying the close contacts and locations visited by infected persons.

Singapore Hails ‘Happy Day’ With Most Virus Curbs Set to End

The TraceTogether program was initially rolled out in the early onset of the global pandemic in March 2020 as a Bluetooth-based mobile application. Since then, together with a small device for those without smartphones, it has become an almost ubiquitous presence among the city-state’s 5.7 million residents, with its use required as proof of vaccination and to check in to most public venues, including restaurants, malls and attractions.

But the program, which the government initially said was a key tool to control the virus, attracted controversy after authorities disclosed that data collected could be used for certain police investigations, and was utilized in a murder case.

Authorities were forced to rush through legislation in parliament early last year allowing the data’s purpose away from virus tracking purposes only “where there is a clear and pressing need to use that data for criminal investigation of serious offences,” despite opposition and rights groups criticizing the plan.

The health ministry said Friday the data will still be used by the police and law enforcement for such purposes under the passed law. Checking in will continue be conducted at larger events with more than 500 participants, and certain nightlife establishments where vaccination-proof remains a requirement. It also encouraged the public to keep the app on their phones and retain the devices. 

While the use of apps for functions such as contact tracing, testing and vaccine proof gained traction throughout the globe during the pandemic, privacy concerns over their handling of personal data and a pivot toward living with the virus have led to them falling out of favor in places such as the U.K. and Australia. They remain widely used in Asian countries including China and Malaysia.

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Africa’s Last Absolute Monarchy Revives Airline After 23 Years

(Bloomberg) — Eswatini, Africa’s last absolute monarchy, is set to launch a flag-carrier airline almost a quarter of a century after the previous one ceased operations in the country formerly known as Swaziland. Eswatini Air will fly from national capital Mbabane to cities such as Johannesburg and Cape Town in neighboring South Africa starting later …

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Top India Bullion Refiner Forays Into Silver for Industrial Use

(Bloomberg) — India’s biggest bullion refiner is expanding its business to industrial silver as demand for the metal — used in everything from switches to television screens —  is set to surge in the South Asian nation.

MMTC-PAMP India Pvt., which has the capacity to refine about 900 tons of gold and silver, has started making silver and alloy contacts — –used in electrical fuse boxes and switches — at a factory next to its refinery in the state of Haryana, Managing Director Vikas Singh said. The plant will produce more than 100 million pieces of contacts this financial year, with plans to double output by the end of March 2024, he said.

“We see a big opportunity on the industrial side,” Singh said in an interview. “This is a logical line of extension for us to get into and it helps us cater to a fairly big segment, not only locally, but also globally.”

MMTC-PAMP’s plans to cater to demand for industrial silver comes as India seeks to boost the share of manufacturing in the economy. Prime Minister Narendra Modi’s administration has been offering production-linked incentive programs to attract automobile, solar panel and appliance makers among others to set up factories in the South Asian nation. Benefits have been visible in sectors such as consumer electronics, where Apple Inc. has moved some production from China, according to Bloomberg Intelligence.

Growing Share

“Silver’s share in the industrial space is growing in India,” London-based Metals Focus Ltd. consultant Chirag Sheth said. “New demand will come from the electronics and electrical sectors. As manufacturing in this space shifts to India, there will be a significant amount of growth likely in the future.”

India consumed about 4,500 tons of silver in 2021, with 40% of it in the form of jewelry and nearly a quarter in the industrial sector, according to Metals Focus. This year, demand is forecast to increase by almost a third to 5,900 tons, Sheth said.

MMTC-PAMP, a venture between the state-run MMTC Ltd. and the Swiss-based PAMP SA, expects India’s demand for silver to be driven by solar panels and batteries in the renewables sector and consumption of electrical products by the construction and real estate industry, Singh said.

The company has also set up an e-waste recovery plant that segregates precious metals such as gold and silver from mobile phones, computers and washing machines, for resale, Singh said. Investment in the industrial silver business will be roughly similar to the $25 million to $30 million it spent on setting up the refineries, he said.

The foray into industrial silver follows MMTC-PAMP’s recent diversification into setting up physical stores for selling coins and bars to retail investors, from targeting mainly bullion dealers. 

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©2022 Bloomberg L.P.

‘Mr. Lithium’ Warns There’s Not Enough Battery Metal to Go Around

(Bloomberg) —

Batteries, and more precisely battery metals, are poised to replace chips as the new bottleneck for the auto industry.

While there’s been a lot of attention on nickel, especially after Russia’s invasion of Ukraine, another key metal — lithium — is a source of concern for manufacturers dealing with all manner of supply chain challenges.

The cost of the metal — mainly used to produce lithium-ion batteries, but also for pharmaceuticals and industrial lubricants — has been soaring. An index of key prices more than doubled in the first quarter, after surging 280% last year, according to Benchmark Mineral Intelligence.

That jump is worrying government officials in China, my colleague Annie Lee wrote earlier this month. Elon Musk, largely seen as ahead of the pack on scaling electric vehicle production, flagged the lithium shortage several times during Tesla’s earnings call this week.

“I’d certainly encourage entrepreneurs out there who are looking for opportunities to get into the lithium business,” Musk said Wednesday. “We think we’re going to need to help the industry on this front.”

One person who’s been warning of a lithium shortage for a while is Joe Lowry, a somewhat cantankerous expert who regularly draws mining bigwigs and analysts to his podcast. Known in mining circles as “Mr. Lithium,” the North Carolina resident has been in the business for decades.

Since striking out on his own in 2012, Lowry has been a consultant to mining companies and an investor. He owns shares of companies including Tesla and Lithium Americas.

I’ve been talking with Lowry to wrap my head around the EV battery supply chain and have summarized our conversation in Q&A form. Here’s an excerpt, edited for length and clarity.

You wrote a paper at the end of 2019 saying demand for lithium would outstrip supply. It looks like lithium prices have started to reflect that. What do you see?

In the next two years, even though there will be significant growth in supply, it will be less than demand, so the gap will just continue to grow.

It’s simple math. It’s like, the bus in front of me is going 50 miles per hour, I’m going 45 mph, but I’m saying I’m gonna catch it in 2025.

I believe there will be a day in the future when lithium is in oversupply, but it won’t be in this decade.

Why will it take so long?

You can build a battery factory in two years, but it takes up to a decade to bring on a lithium project.

It’s not a commodity; it’s a specialty chemical. Lithium is often compared with iron ore or other major commodities, and it behaves nothing like that. The auto industry is just finally figuring that out. Lithium qualification for an auto company can take over a year.

Why?

It has to go through cycle testing. If you’re going to put something into a car that could ignite if the chemistry is wrong, you kind of want to know.

Is the auto industry prepared for that long lead time?

I take everybody’s gigawatt-hour projections and take them back to the lithium required to do it, and most of them are so far over what the lithium industry can supply. I don’t believe demand is going to be destroyed. Ultimately, I believe it’s just deferred.

The additional production this year will be less than 150,000 tons. So then, it’s who gets the material? Whose EV models don’t get made?

In a 2050 scenario, there’s time for everything to happen that needs to happen. But in 2030, it just isn’t going to happen. Just look at the mess we’re in from a lithium supply standpoint with less than 10% EV penetration.

Lowry’s predictions chime with others assessments. BloombergNEF forecasts prices of lithium carbonate and hydroxide — the main lithium chemicals used in battery production — will be higher still by 2030 as a result of projected supply deficits.

Metal supply scarcity poses a more immediate challenge to automakers. Battery prices are expected to rise slightly this year, ending a long run of declines. That will delay the point at which EVs achieve price parity with combustion engine cars, potentially by as much as two years, to 2026, according to BNEF.

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©2022 Bloomberg L.P.

Tough Powell, Canada Open to Big Hike, Nomura’s Fed Bet: Eco Day

(Bloomberg) — Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

Welcome to Friday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • Federal Reserve Chair Jerome Powell outlined his most aggressive approach to taming inflation to date, potentially endorsing two or more half percentage-point interest-rate increases while describing the labor market as overheated
    • Nomura Holdings Inc. now expects the Fed to lift interest rates by 75 basis points at both its June and July meetings, moves that would follow up on an expected 50 basis point hike in May
    • The U.S. will likely tighten monetary policy faster than previously expected, triggering knock-on effects in Mexico, central bank Governor Victoria Rodriguez Ceja said
  • Governor Tiff Macklem acknowledged there’s potential for even larger increases to borrowing costs as the Bank of Canada aggressively wrestles inflation down from a three decade high
  • China is heading for the largest oil demand shock since the early days of the pandemic as the nation’s efforts to tame a rapidly spreading virus hobbles vast swathes of the economy
    • The yuan’s drop has been sharp and vicious — and it’s probably not over. Our daily stress indicator — which captures market forces and positioning — indicates the strongest downward pressure on the currency since early 2020
  • Argentina’s economy bounced back in February and expanded at its best pace in several months, despite a contraction in the previous month
  • Here’s how fertility benefits have gone from novelty to a must-have for many U.S. companies
  • Finally, check out this week’s Stephanomics podcast: The episode dives into the disparate ways in which global leaders approach digital currencies

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©2022 Bloomberg L.P.

Mwai Kibaki, Ex-Kenyan Ruler Tainted by Violent Vote, Dies

(Bloomberg) — Mwai Kibaki, the two-term Kenyan president who fired up the economy yet saw his legacy tainted by election-related violence, has died. He was 90.

His death was announced by President Uhuru Kenyatta in a televised address on Friday.

“Kibaki was a quintessential patriot, whose legacy of civic responsibility will continue to inspire generations of Kenyans long into the future,” Kenyatta said.

Kenya’s third post-independence leader, Kibaki served from 2002 to 2013. After succeeding Daniel Arap Moi, who had ruled the East African nation for 24 years, Kibaki set about rebuilding an economy beset by corruption and decaying infrastructure. He initiated projects such as the Thika Superhighway, an eight-lane road linking Nairobi to central Kenya, and helped develop the telecommunications, banking and power industries.

Those developments helped bolster Kenya’s annual economic growth rate to an average of 4.4% in the 10 years through 2012, compared with 2.5% in the previous decade, World Bank data show.

Ethnic Violence

Kibaki was a member of the Kikuyu, Kenya’s largest ethnic group. After he was declared the winner of December 2007 elections, opposition parties led by Raila Odinga from the Luo community, disputed the outcome, triggering two months of ethnic violence. More than 1,100 people died and 350,000 were forced to flee their homes, while the growth rate slumped to 1.5% in 2008, from 7% a year earlier, as agricultural production collapsed.

Kibaki was also criticized by anti-graft organizations for doing little to curb the corruption that became endemic during Moi’s tenure.

Born on Nov. 15, 1931, in the central Kenyan town of Othaya, Kibaki was the son of poor farmers, and as a child helped herd the family’s livestock, according to a University of Nairobi profile. He obtained an honors degree in economics from Uganda’s Makerere University in 1955 and a Bachelor of Science degree in public finance from the London School of Economics in 1959.

Kibaki helped draft Kenya’s first constitution before it won independence from the U.K. in 1963 — the year he was elected as a lawmaker. He oversaw the passage of a second charter in 2010 that created regional administrations to decentralized power and ensured there were more checks and balances on the government.

Cabinet Posts

He went on to serve as commerce and industry minister and finance minister under President Jomo Kenyatta, and as vice president and then health minister under Moi.

Kibaki quit the government in 1991 to form the opposition Democratic Party and vied unsuccessfully for the presidency in the country’s first multiparty elections and again in 1997. He went on to trounce Moi’s protege, Uhuru Kenyatta, in the 2002 vote, winning 65% support.

After stepping down at the end of his second term, Kibaki steered clear of active politics and was rarely seen in public.

He and his wife Lucy, who died in 2016, had four children.

(Updates with comment by Kenyatta in third paragraph. An earlier version of this story was corrected to show that Kibaki beat Moi’s protege, Uhuru Kenyatta, not Moi himself.)

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Propaganda War Over Mariupol’s Destruction Is Only Just Starting

(Bloomberg) — Russia’s decision to seal off the steel factory where Mariupol’s remaining defenders have made their last stand may mark the end of the battle for control over the port city. The propaganda war over its capture, however, has only begun.

There’s already been a ferocious contest over Twitter hashtags (including the name Mariupol) to own the narrative of the 52-plus-day siege, one initially dominated by pro-Ukrainian channels and voices, but increasingly — as Russian troops began to take over the city — challenged by Moscow’s supporters.

As the investigation of reported rapes, executions and other potential war crimes showed after Russian troops withdrew late last month from northern towns such as Bucha, near the capital Kyiv, possession of sites is all important. With its dominance in Mariupol, Russia has a freer hand in its efforts to control and present any findings on what happened there.

That’s become increasingly important for the Kremlin as only in Mariupol has there been even a notional basis to paint Russia’s invasion as — in President Vladimir Putin’s words — a “noble” effort to rescue ethnic Russians from fascism. The city is where the right wing Azov battalion, a former volunteer militia with an infamous insignia similar to the Nazi-appropriated “Wolfsangel,” has fought to the end.

Avoiding a larger repeat of the Bucha revelations — and indeed accusing Mariupol’s Ukrainian defenders of crimes — is now a critical focus for Putin’s messaging machine at home. 

It’s all the more important with the approach of Moscow’s annual May 9 Victory Day parade to celebrate the Soviet Union’s defeat of Nazi Germany in World War II, where the Russian president is expected to trumpet the war’s success and necessity to people facing the economic upheaval of unprecedented sanctions from the U.S. and its allies.

The portrayal of Mariupol’s “liberation” and “denazification” has been both strongly promoted and tightly controlled within Russia, potentially contributing to an increase in public support for Putin since the invasion began, even if there are questions about the current reliability of polling. 

Some of the campaign is spread by pro-Russia accounts and bots on Twitter and Telegram, often subtitling clips from state news channels to reach a wider international audience in English. At times diplomats have become involved, such as when the Russian Embassy to the U.K. posted a Tweet (later removed) to argue that casualties from the March 9 bombing of Mariupol’s Maternity Hospital No. 3 had been staged. 

The Russian embassy in Singapore posts daily English language summaries of the war’s coverage by Russian media on its Facebook page. It routinely calls out alleged “fake” news reporting on Ukraine outside Russia.

A report by Mythos Labs, a group that seeks to counter harmful online narratives, found at the start of the war that the volume of Ukraine-related Tweets from accounts that spread pro-Russian disinformation had increased by 1000% in just two weeks. 

Twitter said on April 5 it had removed 100,000 accounts since the war started. It also stopped amplifying posts from governments “that limit access to free information and are engaged in armed interstate conflict.”

Russia’s arguments have been picked up by state media in countries such as China, including the accusation that Ukrainians staged executions in Bucha (since disproved by satellite imagery). But so far there is little sign the campaign has been able to undermine support for Ukraine in Europe, the U.S. or other nations that have condemned the Feb. 24 invasion. 

Thursday’s decision to avoid a final battle in Mariupol may be part of Russia’s information control efforts for its own people.

Ukraine’s recent success in sinking the Moskva, the flagship of Russia’s Black Sea Fleet, was a prestige blow, according to a person close to the Defense Ministry. Avoiding major Russian casualties in an inch-by-inch battle for control of Mariupol’s sprawling Azovstal steel plant would be important, the person said, asking not to be identified talking about sensitive matters.

At the same time, Russian probes into what the Kremlin has called potential Ukrainian war crimes in Mariupol have already begun. State controlled RIA Novosti agency showed investigators photographing damage at a city hospital, where Russian fighters made claims — impossible to verify — that civilians had been shot by Ukrainian snipers. 

In an April 14 report by TeleSur, the Caracas-based English language news channel co-funded by Cuba, Nicaragua and Venezuela to provide an alternative to global channels such as the BBC or CNN, a reporter toured the ruins of Mariupol’s theater, destroyed amid constant air strikes. He cited, without examination, Russia’s claim the theater was blown up from within by Ukrainian soldiers.

 

The report went on to follow Maxim Grigoriev, appointed by Russia as special investigator into crimes against humanity in the Donbas region, who accused the Ukrainian defenders of firing from civilian buildings and positioning artillery next to them. In 2019, he conducted a similar interview-based counter-narrative to discredit an international finding that the Russia-backed regime in Syria used chemical weapons.

Some Russian statements about Mariupol, as with Bucha, have been proved untrue. Those include the embassy claim that casualties at Maternity Hospital No. 3 were faked. Associated Press reporters in the city at the time confirmed the death of one of the two mothers photographed. 

An April 13 report by the Organization for Security and Co-operation in Europe rejected Russia’s account of both the theater and maternity hospital bombings, declaring them evident war crimes. The OSCE also said that as the aggressor, Russia bears overall responsibility for the conflict.

Ukraine has warned that kind of fabrication will be conducted on an industrial scale in Mariupol. Its intelligence agency said in a post on its Telegram channel this month that Russia had moved 13 mobile crematoria to Mariupol to burn bodies. In a Thursday post, Mariupol Mayor Vadym Boychenko said a mass grave detected by private satellite image company Maxar Technologies could contain thousands of bodies. It wasn’t possible to verify either claim. Russia denies responsibility for any war crimes.

Ukraine has accused Russian forces of indiscriminately shelling cities and targeting clearly-marked civilian bomb shelters, such as Mariupol’s theater, and evacuation corridors. Some of those charges have been independently verified.

In urban warfare, residential as well as other buildings invariably are used by both sides to provide cover, but after weeks of constant Russian shelling and aerial bombardment, there’s little doubt as to what caused the vast majority of the damage in Mariupol.

Ukraine has had its own war crimes allegations to deal with, though far fewer. These include a video widely reposted on pro-Russia sites of soldiers appearing to shoot Russian prisoners of war in the legs as they interrogated them near Kharkiv, around March 26. The OSCE and Human Rights Watch found it a potential war crime. Ukraine said it would investigate.

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