US Business

Russia on Tuesday reported its forces had taken full control of residential neighbourhoods in Ukraine’s flashpoint city of Severodonetsk, after Kyiv said its troops were fighting on in the key eastern hub despite being outnumbered.

Amid stark warnings of global food shortages partly blamed on the war, Russian Foreign Minister Sergei Lavrov arrived in Turkey to discuss “security corridors” for Ukrainian grain to leave the country.

“The residential areas of the city of Severodonetsk have been fully liberated,” Russian Defence Minister Sergei Shoigu said.

The Russian army was still seeking to establish control over the city’s “industrial zone and the nearest settlements”, he added.

Moscow has been pushing for control of the strategic industrial hub as part of its bid to conquer a vast swathe of eastern Ukraine but Kyiv’s forces have so far managed to hold out. 

About 800 civilians have taken refuge in a chemical factory in Severodonetsk, according to a counsel to Dmytro Firtash, whose company owns the facility. 

“About 800 civilians have taken refuge in the bunkers of the Azot chemical plant, owned by Dmytro Firtash’s Group DF,” Lanny J. Davis, the US lawyer to the businessman, said on the company website. 

“These 800 civilians include around 200 out of the plant’s 3,000 employees and approximately 600 inhabitants of the city of Severodonetsk,” Davis added.

President Volodymyr Zelensky has warned Ukrainian forces in the city were outnumbered and the Russians “are stronger”, as fierce street fighting raged.

Ukrainian sources noted the overwhelming superiority of Russian artillery in the area. The Ukrainian army said Tuesday that Russian troops were preparing to attack the key city of Sloviansk in the battle for Donbas. 

Thousands of civilians have been killed and millions forced to flee their homes since President Vladimir Putin ordered Russian troops into Ukraine on February 24.

After being repelled from other parts of the country, including Kyiv, Russia has concentrated its assault on the eastern Donbas region and had been making slow but steady progress.

Severodonetsk — the largest city still in Ukrainian hands in the Lugansk region of the Donbas — has been the focal point in recent weeks.

Its capture would open up the route to Kramatorsk, the main city of the Ukrainian-held part of the Donetsk region.

– Sea mines –

In Ankara, Lavrov arrived along with a Russian military delegation for talks after the UN asked Turkey to help escort naval convoys carrying grain from Ukraine’s ports, despite the presence of mines.

Turkish Agriculture Minister Vahit Kirisci said that his country would get a 25-percent discount on grain it buys from Ukraine as a gesture of thanks.

Moscow has blockaded the key Black Sea port of Odessa, and Zelensky said Ukraine had up to 25 million tonnes of grain that could not be exported. 

“In the autumn that could be 70 to 75 million tonnes,” said the president, whose country was the world’s fourth biggest grain exporter before the war.

US Secretary of State Antony Blinken said on Monday that reports Russia had stolen grain from Ukraine for export are “credible”.

Zelensky said on Monday that Kyiv was in talks with Turkey, the UK and the UN on opening sea corridors for grain exports, as well as with Poland and the Baltic states for some grain to be exported by rail.

Moscow says grain exports are being prevented by Western sanctions.

– ‘General killed’ –

The leader of Ukraine’s pro-Russian separatists in Donetsk, Denis Pushilin, on Tuesday confirmed the death of another Russian general in the fighting.

Pushilin expressed on Telegram his “sincere condolences to the family and friends” of Major General Roman Kutuzov, “who showed by example how to serve the fatherland”.

Ukraine’s forces have claimed to have killed several of Russia’s top brass but their exact number is not known as Moscow is tight-lipped on losses. 

Defence Minister Shoigu said Russia had completed demining of the eastern port city of Mariupol, the second busiest in Ukraine before the conflict.

With fighting raging in the east of Ukraine, Kyiv hit out at the UN’s nuclear watchdog for trying to visit Europe’s largest nuclear power plant in the south of the country while it is under Russian occupation.

The head of the International Atomic Energy Agency (IAEA), Rafael Grossi, said on Monday his agency was preparing an expert mission to the Zaporizhzhia nuclear plant.

Grossi said on Twitter the visit was arranged after Ukraine had “requested” it. 

But Ukraine’s nuclear agency, Energoatom on Tuesday accused Grossi of lying and said it did not greenlight the trip.  

“We consider this declaration a new attempt to gain access to the Zaporizhzhia power plant to legitimise the presence of the occupiers and approve their actions.” 

Russian forces took control of the plant at the beginning of March and Moscow has threatened to cut Ukraine off from Zaporizhzhia unless Kyiv pays Moscow for the electricity produced. 

– Torture concerns –

In 2021 — well before Russia’s invasion of Ukraine — the plant represented 20 percent of Ukraine’s annual electricity production and nearly half of all nuclear power produced in Ukraine.

The power plant is in the region of Kherson, where Ukraine on Tuesday accused Russian forces of detaining around 600 people, mainly journalists and pro-Kyiv activists, in “specially converted basements”.

Tamila Tasheva, the Ukraine presidency’s permanent representative in Crimea, the peninsula to the south of Kherson which Moscow annexed in 2014, said those detained included people who organised “pro-Ukrainian gatherings”.

“According to our information, they are being held in inhuman conditions and are victims of torture,” Tasheva added without giving further details. 

Straddling the Black Sea and the Sea of Azov, the Kherson region was home to around a million people before the invasion. 

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North Korea, believed poised to test a new nuclear weapon, has ignored multiple US overtures for discussions as well as offers to help in its Covid-19 outbreak, a US diplomat said Tuesday.

Speaking after Pyongyang test-launched eight ballistic missiles in a single day Sunday, Sung Kim, the US Special Representative to North Korea, said the country has not responded to months of public and private communications seeking to engage over tensions.

President Joe Biden and Secretary of State Antony Blinken have repeatedly said publicly that Washington seeks diplomatic talks with the Democratic People’s Republic of Korea “without preconditions,” Kim said.

“We have also reached out to pass this message through private channels as well. This includes high-level personal messages from senior US officials to senior DPRK officials,” he told reporters in a briefing.

“Over the past year, we have sent such messages in multiple ways, through third parties, directly in writing,” he added, noting that included North Korea neighbor China.

Such messages included specific proposals on humanitarian cooperation and assistance with the recent Covid-19 outbreak in North Korea, said Kim.

“However, to date, the DPRK has not responded and continues to show no indication that is interested in engaging,” he said.

US officials have showing growing concerns about Pyongyang’s increased nuclear-related activities.

Kim said that Washington believes it will soon conduct its seventh test of a nuclear weapons, after a nearly five-year hiatus.

He also said that North Korean officials have made comments that suggested a willingness to use tactical or small-sized nuclear weapons.

Kim did not say how the US would react to a new nuclear test.

US Deputy Secretary of State Wendy Sherman, speaking in Seoul early Tuesday, warned there would be a “swift and forceful” response.

“Any nuclear test would be in complete violation of UN Security Council resolutions,” she said.

On Monday South Korea and the United States fired eight ballistic missiles in response to the North Korean missile launches.

“The United States has always been very clear: we seek dialogue with Pyongyang without preconditions,” Kim said.

“We continue to remain committed to diplomacy, even as the DPRK launches an unprecedented number of ballistic missiles.”

US Treasury Secretary Janet Yellen urged lawmakers to approve additional investments in renewable energy and higher taxes on the wealthy on Tuesday, as she defended the administration’s efforts to blunt the impact of inflation.

“I believe there’s lot that Congress can do to ease the cost burdens that households are experiencing,” Yellen told the Senate Finance Committee in the first of two days of testimony on President Joe Biden’s budget for the 2023 fiscal year.

Besides renewable energy investments — which Yellen said could help address high gasoline prices — the Treasury secretary backed more spending on affordable housing and efforts to rein in pharmaceutical prices.

She also highlighted the Biden administration’s historically large release of oil from the Strategic Petroleum Reserve to ease prices drivers are facing at the pump, which have skyrocketed since the Russian invasion of Ukraine, hitting new records daily, with the national average at $4.92 a gallon Tuesday.

“Gas prices, while very high … would be higher without that,” Yellen said.

The hearings come as Biden contends with a low favorability rating ahead of key midterm elections, with the pain from higher gasoline and food prices outweighing a strong job market and 3.6 percent unemployment.

Yellen was warmly received by Senate Democrats, but Republicans pointed to the Biden administration’s energy and climate policies as a reason for the energy crunch and characterized the Biden administration’s 2021 American Rescue Plan as a main reason for inflation.

“What I heard you say is that it is okay to raise taxes right now and that it is proper to have more stimulus spending to deal with this crisis,” said Senator Mike Crapo, a Republican representing Idaho.

“I just have to say I disagree with you on that.”

Yellen defended the American Rescue Plan, saying the administration took action in response to forecasts that unemployment could top nine percent given the headwinds amid the Covid-19 upheaval.

At the time, she said, “The overwhelming risk was that Americans would be scarred by a deep and long recession.”

Former world number one Dustin Johnson confirmed on Tuesday he has resigned from the US PGA Tour to play in the Saudi-funded breakaway LIV Golf Invitational Series.

The decision effectively rules the American two-time major winner out of participating in the Ryder Cup, which pits the United States against Europe every two years.

Johnson was speaking at a press conference at Centurion Club, near London, ahead of the inaugural event in the series, which starts on Thursday.

The world number 15 had said in February he was committed to playing on the PGA Tour, which has refused releases for members to play in the LIV Golf opener — scheduled to clash with the Canadian Open.

But Johnson has now quit, following a similar decision by veteran US golfer Kevin Na, who is also in the field for the event in St Albans.

The 37-year-old, who has won more than $74 million on the PGA Tour, said: “Right now, I’ve resigned my membership from the Tour.”

Johnson, who is reportedly receiving $150 million in appearance fees to play in the new series, said it was difficult to predict the consequences of his decision.

When asked whether he had opted for money over his country, he said he had chosen “what’s best for me and my family”.

“The Ryder Cup is unbelievable and it’s something that has definitely meant a lot to me,” added Johnson, who won all five of his matches in the United States’ record 19-9 win over Europe at Whistling Straits last year.

“I’m proud to say that I’ve represented my country and hopefully I will get a chance to do that again, but I don’t make the rules.”

The former Masters and US Open champion can still play in the four majors, which are not run by the PGA Tour, due to his record.

Ranking points are currently not on offer at LIV events but US veteran Na said he was confident that would change, offering players a pathway into the major championships.

“I think this has the potential to have the best players in the world and to be maybe the best tour in the world,” said the world number 34.

– Mickelson entry –

It has also been reported that Spain’s Sergio Garcia and South Africans Louis Oosthuizen, Charl Schwartzel and Branden Grace, who are in the 48-man field for the LIV event, have also resigned from the PGA Tour.

Six-time major winner Phil Mickelson confirmed on Monday he would play in St Albans in a major coup for the organisers.

Mickelson has not played since the publication of comments in February, in which he criticised the PGA Tour and LIV Golf’s Saudi backers.

The PGA Tour has warned of disciplinary action for players who play in the LIV Series but the DP World Tour, formerly the European Tour, has been more opaque, saying it was “evaluating each request on a case-by-case basis”.

The new series, which comprises eight tournaments this year, is bankrolled by Saudi Arabia’s sovereign wealth fund.

Players will compete as individuals and teams for eye-watering purses of $25 million in all seven regular-season events, played over 54 holes with no cut.

The eighth and final event will be a team championship, with a total prize fund of $50 million.

Amnesty International has said the series is an example of Saudi Arabia attempting to “sportswash” its human rights record.

The golfers were questioned on the human rights issue on Tuesday, including the 2018 murder of journalist Jamal Khashoggi.

A US intelligence assessment found that the Gulf kingdom’s de facto ruler, Crown Prince Mohammed bin Salman, “approved” an operation to capture or kill Khashoggi, a columnist who was critical of Saudi’s rulers.

Saudi officials deny this and say that his killing in the kingdom’s Istanbul consulate — which sparked worldwide outrage — was a “rogue” operation.

“The Khashoggi situation, we all agree that was reprehensible,” 2010 US Open champion Graeme McDowell told reporters on Tuesday.

“No-one’s going to argue that fact but we’re golfers. We are not politicians. I know you guys hate that expression, but we are really not, unfortunately. We are professional golfers.

“If Saudi Arabia wanted to use the game of golf as a way for them to get to where they want to be and they have the resources to accelerate that experience, I think we are proud to help them on that journey using the game of golf.”

Cambodia and Beijing on Tuesday denied a report that they are building a secret naval facility for the Chinese fleet, as Australia’s new prime minister voiced concern and called for transparency.

The Washington Post, citing unnamed Western officials, said a new facility at Cambodia’s Ream base — strategically located on the Gulf of Thailand — was being built for the “exclusive” use of the Chinese navy.

The base has been a running sore spot in US-Cambodian relations for years, with Washington long suspecting it is being converted for use by China as it seeks to buttress its international influence with a network of military outposts.

Cambodia’s Deputy Prime Minister Prak Sokhonn rejected the report as “groundless accusations” in a call with Australia’s foreign minister Penny Wong, according to a statement released late Tuesday by Phnom Penh.

Earlier a spokesman had said the base’s development was “not a secret”.

“Cambodia won’t allow the Chinese military to use it exclusively or to develop the site as its military base,” government spokesman Phay Siphan told AFP.

The Cambodian defence minister and China’s ambassador will be attending a ground-breaking ceremony Wednesday for new facilities at Ream, including a boat repair shop and a pier.

But Australia’s new Prime Minister Anthony Albanese, in Indonesia for a visit to shore up diplomatic ties to counter growing Chinese assertiveness in the region, labelled the reports “concerning”.

“We encourage Beijing to be transparent about its intent and to ensure that its activities support regional security and stability,” he told reporters, saying Cambodia had assured Canberra that no foreign military would be given exclusive access to the Ream base.

Australia has grown increasingly worried about Beijing’s growing influence in the Pacific region.

A leaked draft of a Soloman Islands-China pact in April raised concerns that it would allow Chinese naval deployments to the Pacific island nation — less than 2,000 kilometres (1,200 miles) from Australia.

– Denials from China, Cambodia –

Prime Minister Hun Sen has repeatedly insisted the work is nothing more than modernising the base with a new boat maintenance facility developed with Chinese aid.

“Cambodia doesn’t need the presence of a foreign military on its territory,” he said in a speech last month.

China also denied that the base would be solely for their navy’s use.

“The transformation of Ream Naval Base is only to strengthen Cambodian naval forces’ capabilities to uphold maritime territorial sovereignty and crack down on sea crimes,” foreign ministry spokesman Zhao Lijian told reporters in Beijing Tuesday.

He added that Washington’s criticisms were “malicious conjectures to attack and smear” Cambodia.

Concerns about the base go back as far as 2019, when the Wall Street Journal reported a secret draft deal allowing Beijing to dock warships there.

Cambodia has since dismantled facilities at the base that were built partly with American money and played host to US exercises.

A panel of experts convened by the US drug regulator was meeting Tuesday to consider authorizing the Novavax Covid-19 shot, a late runner in the fight against the virus that could nonetheless play a role in overcoming vaccine hesitancy.

Three vaccines are currently approved in the United States: Pfizer and Moderna, which are based on messenger RNA, and Johnson and Johnson, an adenovirus vector vaccine.

But the last of these, the J&J vaccine, was recently restricted in the US after being linked to a rare but serious clotting condition, especially in women of reproductive age.

It is now only recommended for adults who cannot access Pfizer or Moderna for medical or other serious reasons.

The Novavax vaccine was an early frontrunner in the vaccine race, but fell behind after being hit by manufacturing and regulatory delays.

Though the company is American, the US is one of the few major markets where it hasn’t yet received authorization — the EU, UK, Canada, Australia are among many that have already given it the green light.

Officials hope that the shot, which is based on synthetic proteins, could provide an alternative to the mRNA vaccines for people still hesitant.

“We do have a problem with vaccine uptake that is very serious in the United States,” Peter Marks, a senior scientist for the Food and Drug administration, said at the start of the meeting. 

“And anything we can do to get people more comfortable to be able to accept these potentially life saving medical products, is something that we feel we are compelled to do.”

Of the various vaccine technologies, mRNA has been subject to the most misinformation efforts.

Novavax’s vaccine was found to be 90 percent effective against symptomatic cases of the disease, in trials conducted before the appearance of the Omicron variant, according to the FDA. 

But six cases of myocarditis, an inflammation of the heart muscle, were detected in the group that received the vaccine, against one case in the placebo group, in a trial of around 40,000 people.

Novavax says there is insufficient evidence to establish a causal relationship between the cases of myocarditis and the vaccine. 

The FDA voiced concern over the myocarditis link on Friday, sending Novavax shares to drop 20 percent on the New York Stock Exchange. And trading of Novavax stock was halted on Monday pending news from the FDA panel.

Known as a protein subunit vaccine, Novavax is administered in two doses. 

It uses a synthetic version of the virus’ spike protein to evoke an immune response. 

The same technique is used in vaccines against whooping cough, meningococcal meningitis and hepatitis B.