US Business

Alleged Lockerbie bombmaker in US custody

A Libyan man accused of making the bomb that destroyed a Pan Am flight over Scotland in 1988, killing 270 people, has been taken into US custody, authorities said on Sunday.

Abu Agila Mohammad Masud was charged by the United States two years ago for the Lockerbie bombing — in which Americans made up a majority of the victims. He had previously been held in Libya for alleged involvement in a 1986 attack on a Berlin nightclub.

The US Justice Department confirmed in a statement that Masud was in American custody, following an announcement by Scottish prosecutors, without saying how the suspect ended up in US hands.

A department spokesperson said Masud was expected to make an initial appearance, at a time yet to be specified, in a federal court in the US capital. 

According to The New York Times, Masud was arrested by the FBI and is in the process of being extradited to the United States to face prosecution.

Only one individual has so far been prosecuted for the bombing of Pan Am flight 103 on December 21, 1988 — which remains the deadliest terror attack on British soil.

The New York-bound aircraft was blown up 38 minutes after it took off from London, sending the main fuselage plunging to the ground in the town of Lockerbie and spreading debris over a vast area.

The bombing killed 259 people including 190 Americans on board, and 11 people on the ground.

Former Libyan intelligence officer Abdelbaset Ali Mohmet al-Megrahi spent seven years in a Scottish prison after his conviction in 2001. 

He died in Libya in 2012, always maintaining his innocence.

“The families of those killed in the Lockerbie bombing have been told that the suspect Abu Agila Mohammad Masud Kheir Al-Marimi … is in US custody,” a spokesperson for Scotland’s Crown Office and Procurator Fiscal Service said.

“Scottish prosecutors and police, working with UK government and US colleagues, will continue to pursue this investigation, with the sole aim of bringing those who acted along with al-Megrahi to justice.”

The families thanked US and British law enforcement officials.

“Our loved ones will never be forgotten, and those who are responsible for their murder on December 21, 1988 must face justice,” they said in a statement.

– Libyan connection –

Scottish officials gave no information on when Masud was handed over, and his fate has been tied up in the warring factionalism of Libyan politics.

He was kidnapped by a Libyan militia group, according to reports last month cited by the BBC, following his detention for the Berlin attack which killed two US soldiers and a Turkish citizen.

Masud was reputedly a leading bombmaker for Libyan dictator Moamer Kadhafi. According to the US indictment, he assembled and programmed the bomb that brought down the Pan Am jumbo jet.

The investigation was relaunched in 2016 when Washington learned of Masud’s arrest, following Kadhafi’s ouster and death in 2011, and his reported confession of involvement to the new Libyan regime in 2012.

However, the Libyan connection to Lockerbie has long been disputed by some.

In January 2021, Megrahi’s family lost a posthumous appeal in Scotland against his conviction, following an independent review that said a possible miscarriage of justice may have occurred.

The family wants UK authorities to declassify documents that are said to allege that Iran used a Syria-based Palestinian proxy to build the bomb that downed flight 103.

In that narrative, the Lockerbie bombing was retaliation for the downing of an Iranian passenger jet by a US Navy missile in July 1988 that killed 290 people.

After the news of Masud being in US custody, lawyers for Megrahi’s son issued a statement again trying to cast doubt on the Libyan connection.

The US indictment says, for instance, that Masud bought clothes used to fill the suitcase containing the bomb that brought down the airliner, lawyer Aamer Anwar said in a statement.

But the owner of the store in Malta who sold those clothes said they were purchased by Megrahi — and this was central to the case against him.

“How can both Megrahi and Masud now be held responsible?,” the lawyer wrote.

Lockerbie: mid-air blast led to worldwide probe

Just after 7:00 pm on Wednesday, December 21, 1988, Pan Am Flight 103 from London to New York was blown apart over the Scottish town of Lockerbie, killing all 259 people on board. 

Another 11 people died on the ground as burning debris and liquid fuel from the disintegrating Boeing 747 rained down from an altitude of some 9,400 metres (31,000 feet).

The bodies of the dead were scattered over a wide radius and pieces of the plane were found up to 130 kilometres (80 miles) from its final point of impact.

British and US investigators trying to piece together what caused the atrocity carried out some 12,000 interrogations in 54 countries.

Finally in 1990, in a Toshiba radio-cassette player inside a Samsonite suitcase, they found traces of the explosive Semtex and fragments of an electronic detonator that pointed the finger at Tripoli.

Detectives identified the fibres of clothing used to surround the Semtex and traced them to Malta where, they believe, a Libyan checked in the suitcase full of explosives that was eventually placed aboard Flight 103 in Frankfurt.

In November 1991, Britain and the United States charged two Libyans, Abdelbaset Ali Mohmet al-Megrahi and Al Amin Khalifa Fhimah, with responsibility for the bombing.

– Trial, conviction, appeals –

Libya refused to allow the two suspects to stand trial in Britain or the United States and in response, the United Nations Security Council ordered an air and arms embargo and a freeze on Libya’s financial assets abroad.

In August 1998, London and Washington agreed to hold the trial of Megrahi and Fhimah on neutral territory, in the Netherlands, on condition the case would be heard “by a Scottish court, with Scottish judges, under Scottish law”.

The trial of Megrahi and Fhimah began on May 5, 2000, in the former US airbase of Camp Zeist near Utrecht in the central Netherlands. The territory of Camp Zeist was officially Scottish for the duration of the case.

On January 31, 2001, the court sentenced Megrahi to life in prison and acquitted Fhimah. An appeal by Megrahi failed in 2002.

In 2003, Libya agreed compensation for the victims of the bombing after lengthy talks with British and US officials, leading the UN to lift sanctions later that year.

Megrahi dropped a second appeal in 2009, as Scottish authorities prepared to decide his fate.

Soon afterwards, the Scottish government released Megrahi on compassionate grounds, as he was suffering from terminal cancer, provoking outrage in Washington.

He died in Libya in 2012, still maintaining his innocence.

His family lodged a bid for a posthumous appeal to clear his name in 2017, but Scotland’s High Court upheld his conviction in 2021.

NASA capsule Orion splashes down after record-setting lunar voyage

NASA’s Orion space capsule splashed down safely in the Pacific on Sunday, completing the Artemis 1 mission — a more than 25-day journey around the Moon with an eye to returning humans there in just a few years.

After racing through the Earth’s atmosphere at a speed of 40,000 kilometers per hour (25,000 mph), the uncrewed capsule floated down to the sea with the help of three large red and white parachutes, as seen on NASA TV. 

After a few hours of tests, the vessel will be recovered by a US Navy ship in waters off the coast of Mexico’s Baja California.

The capsule shaped like a gumdrop had to withstand a temperature 2,800 degrees Centigrade (5,000 Fahrenheit) — about half that of the surface of the sun — as it entered the Earth’s atmosphere.

The main goal of this mission was to test Orion’s heat shield — for the day when it is humans and not test mannequins riding inside.

Achieving success in this mission was key for NASA, which has invested tens of billions of dollars in the Artemis program due to take people back to the Moon and prepare for an onward trip, someday, to Mars.

A first test of the capsule was carried out in 2014 but that time it stayed in Earth’s orbit, coming back into the atmosphere at a slower speed of around 20,000 miles per hour.

– Choppers, divers and boats – 

The USS Portland was positioned to recover the Orion capsule in an exercise NASA has been rehearsing for years. Helicopters and inflatable boats were also deployed for this task.  

The falling spacecraft eased to a speed of 20 miles (30 kilometers) per hour as it finally hit the blue waters of the Pacific.

NASA will now let Orion float for two hours — a lot longer than if astronauts were inside — so as to collect data.

“We’ll see how the heat soaks back into the crew module and how that affects the temperature inside,” Jim Geffre, NASA’s Orion vehicle integration manager, said last week.

Divers will then attach cables to hoist Orion onto the USS Portland, which is an amphibious transport dock vessel, the rear of which will be partly submerged. This water will be pumped out slowly so the spacecraft can rest on a platform designed to hold it.

This should all take about four to six hours after splashdown.

The Navy ship will then head for San Diego, California where the spacecraft will be unloaded a few days later.

Upon returning to Earth, the spacecraft has traveled 1.4 million miles since it took off November 16 with the help of a monstrous rocket called SLS.

At its nearest point to the Moon it flew less than 80 miles (130 kilometers) from the surface. And it broke the distance record for a habitable capsule, venturing 268,000 miles (432,000 kilometers) from our planet.

– Artemis 2 and 3 –

Recovering the spacecraft will allow NASA to gather data that is crucial for future missions.

This includes information on the condition of the vessel after its flight, data from monitors that measure acceleration and vibration, and the performance of a special vest put on a mannequin in the capsule to test how to protect people from radiation while flying through space.

Some capsule components should be good for reuse in the Artemis 2 mission, already in advanced stages of planning.

This next mission planned for 2024 will take a crew toward the Moon but still without landing on it. NASA is expected to name the astronauts selected soon.

Artemis 3, scheduled for 2025, will see a spacecraft land for the first time on the south pole of the Moon, which features water in the form of ice.

Only 12 people — all of them white men — have set foot on the Moon. They did this during the Apollo missions, the last of which was in 1972.

Artemis is scheduled to send a woman and a person of color to the Moon for the first time.

NASA’s goal is to establish a lasting human presence on the Moon, through a base on its surface and a space station circling around it. Having people learn to live on the Moon should help engineers develop technologies for a years-long trip to Mars, maybe in the late 2030s.

NASA capsule Orion splashes down after record-setting lunar voyage

NASA’s Orion space capsule splashed down safely in the Pacific on Sunday, completing the Artemis 1 mission — a more than 25-day journey around the Moon with an eye to returning humans there in just a few years.

After racing through the Earth’s atmosphere at a speed of 40,000 kilometers per hour (25,000 mph), the uncrewed capsule floated down to the sea with the help of three large red and white parachutes, as seen on NASA TV. 

After a few hours of tests, the vessel will be recovered by a US Navy ship in waters off the coast of Mexico’s Baja California.

The capsule shaped like a gumdrop had to withstand a temperature 2,800 degrees Centigrade (5,000 Fahrenheit) — about half that of the surface of the sun — as it entered the Earth’s atmosphere.

The main goal of this mission was to test Orion’s heat shield — for the day when it is humans and not test mannequins riding inside.

Achieving success in this mission was key for NASA, which has invested tens of billions of dollars in the Artemis program due to take people back to the Moon and prepare for an onward trip, someday, to Mars.

A first test of the capsule was carried out in 2014 but that time it stayed in Earth’s orbit, coming back into the atmosphere at a slower speed of around 20,000 miles per hour.

– Choppers, divers and boats – 

The USS Portland was positioned to recover the Orion capsule in an exercise NASA has been rehearsing for years. Helicopters and inflatable boats were also deployed for this task.  

The falling spacecraft eased to a speed of 20 miles (30 kilometers) per hour as it finally hit the blue waters of the Pacific.

NASA will now let Orion float for two hours — a lot longer than if astronauts were inside — so as to collect data.

“We’ll see how the heat soaks back into the crew module and how that affects the temperature inside,” Jim Geffre, NASA’s Orion vehicle integration manager, said last week.

Divers will then attach cables to hoist Orion onto the USS Portland, which is an amphibious transport dock vessel, the rear of which will be partly submerged. This water will be pumped out slowly so the spacecraft can rest on a platform designed to hold it.

This should all take about four to six hours after splashdown.

The Navy ship will then head for San Diego, California where the spacecraft will be unloaded a few days later.

Upon returning to Earth, the spacecraft has traveled 1.4 million miles since it took off November 16 with the help of a monstrous rocket called SLS.

At its nearest point to the Moon it flew less than 80 miles (130 kilometers) from the surface. And it broke the distance record for a habitable capsule, venturing 268,000 miles (432,000 kilometers) from our planet.

– Artemis 2 and 3 –

Recovering the spacecraft will allow NASA to gather data that is crucial for future missions.

This includes information on the condition of the vessel after its flight, data from monitors that measure acceleration and vibration, and the performance of a special vest put on a mannequin in the capsule to test how to protect people from radiation while flying through space.

Some capsule components should be good for reuse in the Artemis 2 mission, already in advanced stages of planning.

This next mission planned for 2024 will take a crew toward the Moon but still without landing on it. NASA is expected to name the astronauts selected soon.

Artemis 3, scheduled for 2025, will see a spacecraft land for the first time on the south pole of the Moon, which features water in the form of ice.

Only 12 people — all of them white men — have set foot on the Moon. They did this during the Apollo missions, the last of which was in 1972.

Artemis is scheduled to send a woman and a person of color to the Moon for the first time.

NASA’s goal is to establish a lasting human presence on the Moon, through a base on its surface and a space station circling around it. Having people learn to live on the Moon should help engineers develop technologies for a years-long trip to Mars, maybe in the late 2030s.

Russia sought to swap ex-US Marine for 'assassin' held in Germany

US efforts to negotiate the freedom of a former Marine held in Russia as part of the swap involving basketball star Brittney Griner were thwarted by Moscow’s demand for the release of a convicted murderer held in Germany, according to a top US official and media reports.

The swap of Griner for convicted Russian arms dealer Viktor Bout raised questions as to why the US side had failed to secure the simultaneous release of Paul Whelan, a former Marine accused by Moscow of spying — a charge Washington flatly rejects.

White House national security spokesman John Kirby was asked Sunday about reports negotiations stumbled over a demand for the release of Vadim Krasikov, a former colonel in Russia’s domestic spy organization serving a life sentence for murder in Germany.

Kirby acknowledged on ABC’s “This Week” that “there was a claim that they wanted a man named Mr Krasikov, that the Germans have held in custody.”

“That just wasn’t considered a serious offer,” said Kirby, who characterized Krasikov as “an assassin.”

Kirby had told CNN in late July that including Krasikov in any deal was “a bad-faith attempt (by Moscow) to avoid a very serious offer” from the US side.

On Friday, White House spokeswoman Karine Jean-Pierre declined to comment on the Krasikov matter.

Krasikov is serving a life sentence in Germany for murdering a Chechen fighter in a park in Berlin in 2019, a killing which German authorities say was ordered by Russian intelligence services.

Some US diplomats believe the demand for Krasikov’s release originated with President Vladimir Putin, who was wary of providing a political boost to President Joe Biden at a time of fierce hostility over Ukraine, The New York Times reported.

Roger Carstens, special US presidential envoy for hostage affairs, told CNN he had spoken to Whelan on Friday, the day after the Griner-Bout swap, and Whelan expressed his “frustration.” 

“Here’s what I told him. I said: ‘Paul, you have the commitment of this president. The president’s focused. The secretary of state’s focused.'”

“‘Keep the faith. We’re coming to get you.'”

Carstens also provided some of the first details of Griner’s demeanor during her flight back to the United States from the United Arab Emirates, following a flight from Russia.

After boarding, he said, he offered to give Griner space to “decompress” after her 10 months in captivity — but she was having none of it.

“Oh, no,” she told him. “I’ve been in prison for 10 months now listening to Russian, I want to talk,” — and Griner did so for perhaps 12 of the 18 hours the flight lasted, Carstens said, talking about “everything under the sun.”

But first, he said, she insisted on meeting the others on the plane. 

She “went to every member on that crew, looked them in the eyes, shook their hands and asked about them, got their names…. It was really amazing.”

He added: “I was left with the impression that this is an intelligent, passionate, compassionate, humble, interesting person, a patriotic person, but above all, authentic.” 

He said he “felt blessed having had a chance to get to know her.”

Alleged Lockerbie bombmaker in US custody

A Libyan man accused of making the bomb that destroyed a Pan Am flight over Scotland in 1988, killing 270 people, has been taken into US custody, authorities said on Sunday.

Abu Agila Mohammad Masud was charged by the United States two years ago for the Lockerbie bombing — in which Americans made up a majority of the victims. He had previously been held in Libya for alleged involvement in a 1986 attack on a Berlin nightclub.

The US Justice Department confirmed in a statement that Masud was in American custody, following an announcement by Scottish prosecutors, without saying how the suspect ended up in US hands.

A department spokesperson said Masud was expected to make an initial appearance in a federal court in the US capital. They did not specify a date but said details would be forthcoming.

According to The New York Times, Masud was arrested by the FBI and is in the process of being extradited to the United States to face prosecution.

Only one individual has so far been prosecuted for the bombing of Pan Am flight 103 on December 21, 1988 — which remains the deadliest terror attack on British soil.

The New York-bound aircraft was blown up 38 minutes after it took off from London, sending the main fuselage plunging to the ground in Lockerbie and spreading debris over a vast area.

The bombing killed 259 people including 190 Americans on board, and 11 people on the ground.

Former Libyan intelligence officer Abdelbaset Ali Mohmet al-Megrahi spent seven years in a Scottish prison after his conviction in 2001. 

He died in Libya in 2012, always maintaining his innocence.

“The families of those killed in the Lockerbie bombing have been told that the suspect Abu Agila Mohammad Masud Kheir Al-Marimi … is in US custody,” a spokesperson for Scotland’s Crown Office and Procurator Fiscal Service said.

“Scottish prosecutors and police, working with UK government and US colleagues, will continue to pursue this investigation, with the sole aim of bringing those who acted along with al-Megrahi to justice.”

– Libyan connection –

Scottish officials gave no information on when Masud was handed over, and his fate has been tied up in the warring factionalism of Libyan politics.

He was kidnapped by a Libyan militia group, according to reports last month cited by the BBC, following his detention for the Berlin attack which killed two US soldiers and a Turkish citizen.

Masud was reputedly a leading bombmaker for Libyan dictator Moamer Kadhafi. According to the US indictment, he assembled and programmed the bomb that brought down the Pan Am jumbo jet.

The investigation was relaunched in 2016 when Washington learned of Masud’s arrest after Kadhafi’s ouster and death in 2011, and his reported confession of involvement to the new Libyan regime in 2012.

However, the Libyan connection to Lockerbie has long been disputed by some.

In January 2021, Megrahi’s family lost a posthumous appeal in Scotland against his conviction, following an independent review that said a possible miscarriage of justice may have occurred.

The family wants UK authorities to declassify documents that are said to allege that Iran used a Syria-based Palestinian proxy to build the bomb that downed flight 103.

In that narrative, the Lockerbie bombing was retaliation for the downing of an Iranian passenger jet by a US Navy missile in July 1988 that killed 290 people.

After the news of Masud being in US custody, lawyers for Megrahi’s son issued a statement again trying to cast doubt on the Libyan connection.

The US indictment says for instance that Masud bought clothes used to fill the suitcase containing the bomb that brought down the airliner, lawyer Aamer Anwar said in a statement.

But the owner of the store in Malta who sold those clothes said they were purchased by Megrahi — and this was central to the case against him.

“How can both Megrahi and Masud now be held responsible?,” the lawyer wrote.

Alleged Lockerbie bombmaker in US custody

A Libyan man accused of making the bomb that destroyed a Pan Am flight over Scotland in 1988, killing 270 people, has been taken into US custody, the Justice Department confirmed Sunday.

Abu Agila Mohammad Masud was charged by the US two years ago for the Lockerbie bombing. He had previously been held in Libya for his alleged involvement in a 1986 attack on a Berlin nightclub.

The Justice Department confirmed in a statement that Masud was in US custody, following an announcement by Scottish prosecutors, without saying how the suspect ended up in US hands.

A department spokesperson said Masud was expected to make an initial appearance in the US District Court for the District of Columbia, but did not specify when.

Only one individual has so far been prosecuted for the bombing of Pan Am flight 103 on December 21, 1988 — which remains the deadliest terror attack in British history.

Former Libyan intelligence officer Abdelbaset Ali Mohmet al-Megrahi spent seven years in a Scottish prison after his conviction in 2001. 

He died in Libya in 2012, always maintaining his innocence.

“The families of those killed in the Lockerbie bombing have been told that the suspect Abu Agila Mohammad Masud Kheir Al-Marimi … is in US custody,” a spokesperson for Scotland’s Crown Office and Procurator Fiscal Service said.

“Scottish prosecutors and police, working with UK government and US colleagues, will continue to pursue this investigation, with the sole aim of bringing those who acted along with al-Megrahi to justice.”

– Libyan connection –

Scottish officials gave no information on when Masud was handed over, and his fate has been tied up in the warring factionalism of Libyan politics.

He was kidnapped by a Libyan militia group, according to reports last month cited by the BBC, following his detention for the Berlin attack which killed two US soldiers and a Turkish citizen.

Masud was reputedly a leading bombmaker for Libyan dictator Moamer Kadhafi. According to the US indictment, he assembled and programmed the bomb that brought down the Pan Am jumbo jet.

The investigation was relaunched in 2016 when Washington learned of Masud’s arrest after Kadhafi’s ouster and death in 2011, and his reported confession of involvement to the new Libyan regime in 2012.

However, the Libyan connection to Lockerbie has long been disputed by some.

In January 2021, Megrahi’s family lost a posthumous appeal in Scotland against his conviction, following an independent review that said a possible miscarriage of justice may have occurred.

The family wants UK authorities to declassify documents that are said to allege that Iran used a Syria-based Palestinian proxy to build the bomb that downed flight 103.

In that narrative, the Lockerbie bombing was retaliation for the downing of an Iranian passenger jet by a US Navy missile in July 1988 that killed 290 people.

Cash crops: Dutch use bitcoin mining to grow tulips

Tulips and bitcoin have both been associated with financial bubbles in their time, but in a giant greenhouse near Amsterdam the Dutch are trying to make them work together.

Engineer Bert de Groot inspects the six bitcoin miners as they perform complex sums to earn cryptocurrency, filling the air with a noisy whine along with a blast of warmth.

That warmth is now heating the hothouse where rows of tulips grow, cutting the farmers’ reliance on gas whose price has soared since Russia’s invasion of Ukraine.

The servers in turn are powered by solar energy from the roof, reducing the normally huge electricity costs for mining, and cutting the impact on the environment.

Meanwhile both the farmers and de Groot’s company, Bitcoin Brabant, are earning crypto, which is still attracting investors despite a recent crash in the market.

“We think with this way of heating our greenhouse but also earning some bitcoin we have a win-win situation,” flower farmer Danielle Koning, 37, told AFP.

The Netherlands’ love of tulips caused the first stock market crash in the 17th century when speculation bulb prices caused prices to soar, only to later collapse.

Now the Netherlands is the world’s biggest tulip producer and also the second biggest agricultural exporter overall after the United States, with much grown in greenhouses.

– ‘Improving the environment’ –

But the low-lying country is keenly aware of the effect of the agricultural industry on climate change, while farmers are struggling with high energy prices.

Mining for cryptocurrency meanwhile requires huge amounts of electricity to power computers, leading to an environmental impact amid global efforts to tackle climate change. 

De Groot, 35, who only started his business earlier this year and now has 17 clients including restaurants and warehouses, says this makes bitcoin and tulips a perfect fit.

“This operation is actually carbon negative, as are all the operations I basically build,” says the long-haired de Groot, sporting an orange polo shirt with his firm’s logo.

“We’re actually improving the environment.”

He is also selling tulips online for bitcoin via a business called Bitcoinbloem.

The collaboration started when Koning saw a Twitter video de Groot had made about bitcoin mining, and called him up.

Now there are six servers at their hothouse, whose exact location Koning asked to keep secret to avoid thieves targeting the 15,000-euro machines.

Koning’s company owns half of them and keeps the bitcoin they produce, while de Groot is allowed to keep his three servers there in exchange for monthly visits to clean dust and insects out of the servers’ fans.

With a 20 degree Celsius difference between the air entering the machine and leaving them, this provides the heat needed to grow the tulips, and to dry the bulbs that produce them.

– ‘No worries’ –

“The most important thing we get out of it is, we save on natural gas,” says Koning. “Secondly, well, we earn Bitcoin by running them in the greenhouse.”

Huge energy costs have driven some Dutch agricultural firms that often rely on greenhouses to stop growing this year, while others have even gone bankrupt, says Koning.

Meanwhile, the philosopher Nassim Nicholas Taleb, who developed the idea of the unpredictable but historic “black swan” event, has compared Bitcoin to the “Tulipmania” that engulfed the Netherlands nearly 400 years ago.

This saw prices for a single bulb rise to more than 100 times the average annual income at the time before the bubble burst in 1637, causing banks to fail and people to lose their life savings.

The cryptocurrency sector is currently reeling from the collapse of a major exchange — with Bitcoin currently worth around $16,300 per unit, down from a high of $68,000 in November 2021 — but De Groot isn’t worried.

“I have absolutely no worries about the long-term value proposition of an immutable monetary system,” he says.

“Bitcoin will last for ever.” 

Russia oil embargo, price cap disrupts tankers

The European Union embargo on Russia’s oil and an international cap on the price of the country’s crude is disrupting the maritime transport sector.

The EU on Monday enforced an embargo on Russian crude shipments, the bloc’s latest sanction in retaliation for Moscow’s invasion of Ukraine.

This week also saw the start of a $60 cap on a barrel of Russian crude, agreed by Western nations.

– Tanker traffic jam –

Aimed at depriving Russia of key income, the measures have also slowed transportation of its oil by sea.

This is because Turkey has started to request proof of insurance from tankers loaded with Russian crude, slowing their passage through the Bosphorus and Dardanelles straits and onto international markets.

The Financial Times has reported that Russia has assembled a “shadow fleet” of more than 100 vessels seeking to circumnavigate the Western sanctions regime.

These ships are reportedly using non-Western insurers and selling oil at higher prices to countries that have not subscribed to the new sanctions.

A 1936 treaty guarantees the freedom of navigation to merchant vessels passing through Turkey’s two straits.

But it also gives Turkey the right to regulate security — a provision it is now using to make sure the oil ships are insured against spillage and other accidents.

The London P&I Club, a leading provider of maritime protection and indemnity insurance, claims “the Turkish government’s requirements go well beyond the general information that is contained in a confirmation of entry letter. 

“It requires… (confirmation) that cover will not be prejudiced under any circumstances, including where there is a sanctions breach on the part of the assured.”

Marcus Baker, global head of Marine & Cargo at insurance broker Marsh, said the price cap “adds another layer of complexity to an already pretty complex situation”.

He also told AFP: “The slowdown that might happen because of this added administrative burden may have the desired effect that the G7 wanted anyway.” 

The price ceiling was agreed by the Group of Seven rich countries, which includes Britain, Japan and the United States, as well as the EU and Australia.

Meanwhile as much as 95 percent of the P&I insurance market is run by insurers in the EU and Britain, who suddenly can no longer insure cargoes of Russia oil sold for more than $60 per barrel.

The market price of a barrel of Russian Urals crude is around $65, suggesting the cap may have only a limited impact in the short term.

President Vladimir Putin on Friday warned that Russia could reduce crude production in response to the price limit.

– Avoiding ban –

“Moscow is already working on circumventing the ban on insurance by providing its own insurance to potential clients through its state-controlled Russian National Reinsurance Company,” noted Edoardo Campanella, analyst at UniCredit Bank.

An executive at an oil shipping company, who wished to remain anonymous, said “it will take a week or two, I think at a minimum, to see how the market will function in light of the price cap”. 

They added: “There’s a general view that there is enough shipping capacity in what can be called a ‘Dark Fleet’ or a sanctions-indifferent fleet so that Russia can sell its oil without regard to the price cap. 

“This means to China, to India, potentially some to Brazil or other parts of the world. So it doesn’t have to comply with the price cap. So there’s enough capacity,” the executive told AFP.

burs-tu-emb/bcp/rl

'Everything increasing except wages': inflation batters Ethiopia

“Everything is increasing except our wages,” Ethiopian porter Zerihun told AFP, summing up the financial crisis facing the Horn of Africa nation as it reels from skyrocketing inflation and an economic slowdown.

After a decade of dynamic growth during the 2010s, Africa’s second most populous country has suffered multiple shocks, including the Covid-19 pandemic, a record drought, a two-year war in its northernmost region of Tigray and the global impact of the invasion of Ukraine.

Annual average inflation is expected to hit 30 percent in 2022 (compared to 26 percent last year), driven by an increase in food costs.

“Groceries, food, rent, all prices have gone up,” said Zerihun, a 30-year-old father of two working at the sprawling Merkato market in the capital Addis Ababa.

“Because of the cost of living, life is very difficult… life has become expensive,” said his colleague Sintayeh Tadelle, who has two sons aged 12 and six and “no savings”. 

Were it not for handouts from the Addis Ababa municipal government including uniforms, books and school meals, his family would struggle to survive, the 29-year-old porter told AFP.

The porters at Merkato, considered Africa’s largest open-air market, earn five birr (nine US cents) for loading or unloading a crate.

On average, a good day brings in than five dollars in wages. 

“The economy is slow, so there’s less work and my pay is less,” said Zerihun.

– ‘Very difficult’ – 

Packed with thousands of stalls stocking everything from clothing to industrial machinery, the busy lanes of Merkato teem with buyers, sellers, touts and day labourers.

But regulars say business has taken a sharp hit this year as inflation dampens customer appetite for spending.

“Business is very cold, not only here but in all sectors,” said Hamat Redi, manager of a shop selling televisions and washing machines.

A few doors down, shopkeeper Sisai Desalegn complained about a nationwide shortage of foreign currency, making it difficult for him to import the sound equipment and solar panels sold in his store.

“Because of the shortage, we are not getting enough foreign exchange from the bank to import goods,” he told AFP.

“We estimate that our business has lost 40 percent in two years,” Desalegn said, adding that the downturn has forced him to sell everything at the purchase price, putting profits out of reach.

As a result, he has reduced his daily expenses.

“It’s very difficult to make do with what you have,” he said, underlining that the war in Tigray meant his former customers — traders and farmers from the north — were no longer coming to the market.

The slowdown in trade with the north has also seen fewer trucks turning up at Merkato, meaning less work for porters like Zerihun and Sintayeh.

– Multiple causes – 

The conflict put pressure on government finances and hit key sectors such as agriculture and industry. 

It also scared away investors and foreign partners, contributing to a shortage of foreign currency in an importing nation.

A peace deal signed last month between the federal government and Tigrayan rebels has raised hopes of an economic recovery.

“I hope the peace agreement will make the situation better in the future,” said Zerihun.

But Ethiopia’s economy hit roadblocks before the war began in November 2020, with the Covid-19 pandemic triggering a sharp slowdown.

Growth, which averaged 9.7 percent between 2010 and 2018, fell to 6.1 percent in 2020 and is forecast to drop below four percent this year, according to the International Monetary Fund. 

The drought ravaging the Horn of Africa has weighed on agriculture — a key employer in the largely rural nation — and contributed to the explosion in food prices, with the conflict in Ukraine also affecting the cost of living.

The causes behind the crisis may be manifold and complex, but the impact is easy to see, according to Zerihun.

“Eventually, all this affects low-income people like us,” he said.

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