World

'Monsters': Ukrainian women recount agony in Russian prisons

When Ukrainian medic Tetyana Vasylchenko was released from Russian captivity and, on the bus back to freedom, handed a Ukrainian flag, she finally broke down.

“I had never cried, even when I lost comrades,” Vasylchenko told journalists. “But when I was given a Ukrainian flag on the bus, I burst out crying.” 

Vasylchenko and 107 other women were freed from Russian detention last week as part of a long-negotiated prisoner exchange with Moscow.

Four of the women spoke to journalists in Kyiv on Wednesday to recount what they have lived through: packed prison cells, hunger, physical abuse and humiliation.

“The conditions in detention were horrendous,” said Viktoria Obidina, a military nurse, who was captured at the Azovstal steel plant that became the symbol of Ukrainian resistance.

Inmates were “packed like sardines” in jail, food was repulsive and they were rarely allowed to go outside for walks, she said.

Speaking to AFP earlier this week, Obidina said she had been held in the notorious prison in the Russian-occupied town of Olenivka.

Her captors told her that her daughter, who left the steel plant with Ukrainian civilians, had been sent to an orphanage.

– ‘These people are monsters’ –

Women prisoners were subjected to “intense psychological pressure” and constantly humiliated, said Vasylchenko.

“Their favourite thing was to say ‘Ukraine doesn’t want you. No one is swapping you because everyone forgot about you. Who needs you, women?'” Vasylchenko recalled.

The detainees were held “in an information vacuum, they were telling us how everything in our country was going badly.”

Authorities in Kyiv estimate that a few thousand Ukrainians are still being held by Russia as prisoners of war.

Guseynova, a volunteer from the eastern Donetsk region, spent three years in captivity. She was detained in 2019 by pro-Russian separatists, accused of making pro-Kyiv statements to orphaned children she was taking care of.

Guseynova was too traumatized to speak about what she had lived through.

“Too little time has passed since I was liberated, it’s difficult,” she said.

The trauma was also painfully fresh for Inga Chikinda, an army marine.

“I am not ready to speak about physical abuse just yet,” Chikinda, who lost eight kilos and started stuttering after being detained, said. 

“These people are monsters.”

Euro bounces back above dollar parity

The euro on Wednesday jumped back above parity with the dollar, the US currency sliding against its main rivals on concerns over the world’s biggest economy and the prospect of slower interest rate hikes.

The euro bounced back above one dollar for the first time since mid-September, helped also by expectations of a big interest-rate hike from the European Central Bank on Thursday.

There were large gains against the dollar also for the British pound and yen, helping them recover some ground following the recent sharp losses.

The dollar retreated following “a string of negative (US) economic data released since the beginning of the week”, noted ActivTrades senior analyst Ricardo Evangelista.

Poorly received data, including slower house price growth and weaker consumer confidence, showed that big rate hikes from the Federal Reserve are “starting to open some cracks in the American economy”, he said.

“The Federal Reserve has been hiking rates aggressively in an attempt to bring inflation under control, and the country’s economy is starting to suffer as a result,” Evangelista added.

– Risk investments rebound –

A string of poor economic news has been welcomed by investors as it opens up the possibility that the Fed can slow down or end its interest rate hikes sooner. The recent news has seen risk investments like equities rebound in recent weeks.

The Bank of Canada on Wednesday increased its main rate by a smaller than expected 0.5 percentage points.

Market analyst Michael Hewson at CMC Markets said the move “suggests that central banks are starting to wake up to the possibility that too aggressive rate rises could do more harm than good.”

He added: “It’s also got markets asking the question, could the Fed follow suit next week after another poor set of housing numbers from the US.”

Wall Street, which had opened lower on poor results from tech giants, was mostly higher in late morning trading.

In Europe, London, Frankfurt and Paris stocks all ended the day higher.

Sterling on Wednesday jumped more than one percent against the dollar, winning a boost also from markets welcoming the appointment of Rishi Sunak as prime minister.

The move was seen as offering stability to the UK economy after weeks of upheaval fuelled by predecessor Liz Truss’s tax-cutting budget.

“The pound pushed back above the 1.1600 area against the US dollar today and risen against the euro despite the prospect that next week’s budget statement has been delayed until 17th November in order to allow time” for updated fiscal forecasts, said Hewson.

– Key figures around 1530 GMT –

Euro/dollar: UP at $1.0071 from $0.9971 on Tuesday

Pound/dollar: UP at $1.1612 from $1.1478 

Dollar/yen: DOWN at 146.40 yen from 147.92 yen

Euro/pound: DOWN at 86.73 pence from 86.85 pence

New York – Dow: UP 1.0 percent at 32,165.41 points

EURO STOXX 50: UP 0.6 percent at 3,605.31

London – FTSE 100: UP 0.6 percent at 7,056.07 (close) 

Frankfurt – DAX: UP 1.1 percent at 13,195.81 (close)

Paris – CAC 40: UP 0.4 percent at 6,276.31 (close)

Tokyo – Nikkei 225: UP 0.7 percent at 27,431.84 (close)

Hong Kong – Hang Seng Index: UP 1.0 percent at 15,317.67 (close)

Shanghai – Composite: UP 0.8 percent at 2,999.50 (close)

Brent North Sea crude: UP 2.4 percent at $95.79 per barrel

West Texas Intermediate: UP 3.2 percent at $88.04 per barrel

burs-rl/jj

Burkina sets up government on 'war footing'

Burkina Faso’s new government on Wednesday declared its top priority would be to secure the nation’s territory, after the latest coup to rock the jihadist-torn Sahel state.

A UN envoy warned in New York that around 4.9 million, or a fifth of the population, need urgent aid in Burkina Faso as many “mothers were forced to feed their children with leaves and salt”.

Prime Minister Apollinaire Kyelem de Tembela outlined the nation’s priorities at the first cabinet meeting chaired by Captain Ibrahim Traore, who seized power this month.

“It’s a government on a war footing that has been formed. It’s not a gala dinners government,” Tembela said in the capital Ouagadougou.

“The main and priority objective is securing the territory,” Tembela said.

“The second will be to do what is needed to improve the quality of life for the Burkina people,” he said.

The third aim will be to “improve the system of governance”, he added.

“Every Burkinabe who calls himself a patriot can contribute,” the prime minister said.

Named premier on Friday, the 64-year-old lawyer heads a 23-member government — including three military officers and five women — to lead the country until its promised return to civilian rule.

Of the key positions in the cabinet unveiled late Tuesday, Colonel Kassoum Coulibaly was appointed minister of defence and military veterans, a key post in a country ravaged by jihadist violence.

The two other officers are Colonel Boukare Zoungrana who oversees territorial administration, decentralisation and security, and Colonel Augustin Kabore for the environment.

– ‘Leaves and salt’ diet –

Five ministers in the previous government under Lieutenant Colonel Paul-Henri Sandaogo Damiba, who was toppled in the latest coup, have stayed on.

Traore mounted the coup at the head of group of disgruntled junior officers on September 30, although his tussle for control with Damiba lasted several days.

He was sworn in as interim president last Friday, vowing to win back territory and support a transition leading to elections in July 2024. At 34, he is the world’s youngest leader.

Damiba, who has fled to Togo, had seized power only in January, forcing out elected president Roch Marc Christian Kabore.

The motive for both coups was anger at failures to stem a seven-year jihadist insurgency that has claimed thousands of lives and driven nearly two million people from their homes.

More than a third of national territory remains outside government control.

On Monday, at least 10 soldiers were killed and 50 wounded in Djibo, a northern city that has been under a jihadist blockade for three months. 

The authorities have launched a drive to recruit 50,000 civilian defence volunteers to help the army fight the militants.

UN envoy Martin Griffiths painted an alarming picture of Djibo, whose population has tripled to 300,000 with people displaced by jihadist attacks.

“There were no goods in the market,” as little food could grow in the area and cattle had been driven out, the undersecretary general for humanitarian affairs said in New York following a trip to Djibo.

“Mothers were forced to feed their children with leaves and salt,” he said.

But trees were becoming bare and women were now risking “attacks, rape and death” to travel to nearby villages under cover of darkness to find leaves for their “sick and hungry children,” he said.

Dozens of other parts of Burkina Faso, he added, were experiencing a similar fate. 

He spoke of “road closures due to the presence of armed groups, leaving people without food, medicine and other vital services.”

Even though the UN had been able to provide food to 1.8 million people this year, he said, “Nearly 4.9 million men, women and children in Burkina Faso ….need urgent assistance.” 

That amounts to more than a fifth of the population.

And nearly 10 percent have been forced to leave their homes.

'Monsters': Ukrainian women recount agony in Russian prisons

When Ukrainian medic Tetyana Vasylchenko was released from Russian captivity and, on the bus back to freedom, handed a Ukrainian flag, she finally broke down.

“I had never cried, even when I lost comrades,” Vasylchenko told journalists. “But when I was given a Ukrainian flag on the bus, I burst out crying.” 

Vasylchenko and 107 other women were freed from Russian detention last week as part of a long-negotiated prisoner exchange with Moscow.

Four of the women spoke to journalists in Kyiv on Wednesday to recount what they have lived through: packed prison cells, hunger, physical abuse and humiliation.

“The conditions in detention were horrendous,” said Viktoria Obidina, a military nurse, who was captured at the Azovstal steel plant that became the symbol of Ukrainian resistance.

Inmates were “packed like sardines” in jail, food was repulsive and they were rarely allowed to go outside for walks, she said.

Speaking to AFP earlier this week, Obidina said she had been held in the notorious prison in the Russian-occupied town of Olenivka.

Her captors told her that her daughter, who left the steel plant with Ukrainian civilians, had been sent to an orphanage.

– ‘These people are monsters’ –

Women prisoners were subjected to “intense psychological pressure” and constantly humiliated, said Vasylchenko.

“Their favourite thing was to say ‘Ukraine doesn’t want you. No one is swapping you because everyone forgot about you. Who needs you, women?'” Vasylchenko recalled.

The detainees were held “in an information vacuum, they were telling us how everything in our country was going badly.”

Authorities in Kyiv estimate that a few thousand Ukrainians are still being held by Russia as prisoners of war.

Guseynova, a volunteer from the eastern Donetsk region, spent three years in captivity. She was detained in 2019 by pro-Russian separatists, accused of making pro-Kyiv statements to orphaned children she was taking care of.

Guseynova was too traumatized to speak about what she had lived through.

“Too little time has passed since I was liberated, it’s difficult,” she said.

The trauma was also painfully fresh for Inga Chikinda, an army marine.

“I am not ready to speak about physical abuse just yet,” Chikinda, who lost eight kilos and started stuttering after being detained, said. 

“These people are monsters.”

UK's new PM delays budget, restores fracking ban

In his first full day as Britain’s prime minister, Rishi Sunak on Wednesday delayed a crunch budget and rebuffed renewed demands for an early general election as he began trying to rebuild the Conservatives’ poll standing.

Following the fiscal chaos seen under his short-lived predecessor, Liz Truss, Sunak’s government said it needed more time to present the full budget — deferring a Treasury statement due next Monday to mid-November.

He also jettisoned a signature stance taken by Truss, which he also backed during their summer battle for the leadership. After taking office, she had made good on the promise to overturn a ban on fracking — drilling on land for natural gas — but Sunak said the ban would return.

The U-turn was back in line with the 2019 manifesto that last brought his Conservative party to power.

No company had yet come forward to take advantage of Truss’s offer, which risked arousing serious opposition from locals in prospective drilling sites.

Following a meeting of his new cabinet, Sunak engaged in his first parliamentary joust with opposition Labour leader Keir Starmer, who is riding high in the polls and says the new Conservative leader lacks a democratic mandate.

“The only time he ran in a competitive election he got trounced by the former prime minister, who herself got beaten by a lettuce,” Starmer said, challenging Sunak to face UK voters.

After the scandal-tarred Boris Johnson announced in July that he was quitting, Truss beat Sunak in a vote by Tory members. 

But her right-wing economic programme, based on unfunded tax cuts, collapsed and she lasted only 49 days — with a lettuce lasting longer in one newspaper stunt. 

Sunak then beat off an audacious comeback bid by Johnson to become Tory leader on Monday.

“We will have to take difficult decisions to restore economic stability and confidence,” he told MPs, brushing off Starmer’s election call.

“I will always protect the most vulnerable. We did it in Covid and we will do it again,” the former finance minister added.

– ‘Test of time’ –

Chancellor of the Exchequer Jeremy Hunt — retained in Sunak’s cabinet along with several other senior ministers — said that Monday’s planned “medium-term fiscal statement” was no longer so pressing.

Instead, there will be a full budget statement on November 17 to lay out the new government’s tax and spending plans, Hunt told reporters.

The new plan will be accompanied by fresh economic forecasts from the Office for Budget Responsibility (OBR), which were lacking from Truss’s own aborted plan, and will “stand the test of time”, he said.

Hunt said he had discussed the delay with Bank of England governor Andrew Bailey. The central bank was forced to make several emergency interventions in recent weeks after Truss’s tax-slashing plans sent markets into a tailspin. 

Markets were unperturbed by the postponement, suggesting Hunt and Sunak have successfully calmed investors’ nerves.

Truss left office as the UK’s shortest-serving premier in history, replaced by its youngest since 1812 and first Hindu leader.

Sunak triumphed in a 96-hour Tory leadership contest after rival contender Penny Mordaunt failed to secure enough nominations from Tory lawmakers and Johnson dramatically aborted his own bid.

After appointing his top team Tuesday, Sunak spoke to the presidents of Ukraine and the United States to vow continuity on UK foreign policy, including ongoing support for Kyiv’s resistance following Russia’s invasion.

– ‘Grubby’ –

Sunak has vowed to restore “trust” and “integrity” in government after months of tumult under Johnson and then Truss.

But critics claimed the new leader had immediately undermined the pledge by reappointing hardline right-winger Suella Braverman as interior minister, days after she was forced to resign for a security breach.

Braverman emailed classified government documents outside her department that reportedly included market-sensitive information from the OBR.

Sunak told parliament that she had “made an error of judgement” but had “accepted her mistake” and so he was “delighted to welcome her back”.

Starmer said her return was “grubby” payback after Braverman backed Sunak against Johnson’s attempt to return to Downing Street.

“There’s a new Tory at the top but as always with them, party first, country second,” the opposition leader said.

As well as mending Britain’s wounded finances, Sunak is also pledging to reunite the Conservatives after another bruising leadership contest, mere weeks after Johnson was forced out.

He has kept Truss’s defence, trade and culture ministers among others, as well as re-hiring some older faces from the Johnson cabinet.

UK's new PM delays budget, restores fracking ban

In his first full day as Britain’s prime minister, Rishi Sunak on Wednesday delayed a crunch budget and rebuffed renewed demands for an early general election as he began trying to rebuild the Conservatives’ poll standing.

Following the fiscal chaos seen under his short-lived predecessor, Liz Truss, Sunak’s government said it needed more time to present the full budget — deferring a Treasury statement due next Monday to mid-November.

He also jettisoned a signature stance taken by Truss, which he also backed during their summer battle for the leadership. After taking office, she had made good on the promise to overturn a ban on fracking — drilling on land for natural gas — but Sunak said the ban would return.

The U-turn was back in line with the 2019 manifesto that last brought his Conservative party to power.

No company had yet come forward to take advantage of Truss’s offer, which risked arousing serious opposition from locals in prospective drilling sites.

Following a meeting of his new cabinet, Sunak engaged in his first parliamentary joust with opposition Labour leader Keir Starmer, who is riding high in the polls and says the new Conservative leader lacks a democratic mandate.

“The only time he ran in a competitive election he got trounced by the former prime minister, who herself got beaten by a lettuce,” Starmer said, challenging Sunak to face UK voters.

After the scandal-tarred Boris Johnson announced in July that he was quitting, Truss beat Sunak in a vote by Tory members. 

But her right-wing economic programme, based on unfunded tax cuts, collapsed and she lasted only 49 days — with a lettuce lasting longer in one newspaper stunt. 

Sunak then beat off an audacious comeback bid by Johnson to become Tory leader on Monday.

“We will have to take difficult decisions to restore economic stability and confidence,” he told MPs, brushing off Starmer’s election call.

“I will always protect the most vulnerable. We did it in Covid and we will do it again,” the former finance minister added.

– ‘Test of time’ –

Chancellor of the Exchequer Jeremy Hunt — retained in Sunak’s cabinet along with several other senior ministers — said that Monday’s planned “medium-term fiscal statement” was no longer so pressing.

Instead, there will be a full budget statement on November 17 to lay out the new government’s tax and spending plans, Hunt told reporters.

The new plan will be accompanied by fresh economic forecasts from the Office for Budget Responsibility (OBR), which were lacking from Truss’s own aborted plan, and will “stand the test of time”, he said.

Hunt said he had discussed the delay with Bank of England governor Andrew Bailey. The central bank was forced to make several emergency interventions in recent weeks after Truss’s tax-slashing plans sent markets into a tailspin. 

Markets were unperturbed by the postponement, suggesting Hunt and Sunak have successfully calmed investors’ nerves.

Truss left office as the UK’s shortest-serving premier in history, replaced by its youngest since 1812 and first Hindu leader.

Sunak triumphed in a 96-hour Tory leadership contest after rival contender Penny Mordaunt failed to secure enough nominations from Tory lawmakers and Johnson dramatically aborted his own bid.

After appointing his top team Tuesday, Sunak spoke to the presidents of Ukraine and the United States to vow continuity on UK foreign policy, including ongoing support for Kyiv’s resistance following Russia’s invasion.

– ‘Grubby’ –

Sunak has vowed to restore “trust” and “integrity” in government after months of tumult under Johnson and then Truss.

But critics claimed the new leader had immediately undermined the pledge by reappointing hardline right-winger Suella Braverman as interior minister, days after she was forced to resign for a security breach.

Braverman emailed classified government documents outside her department that reportedly included market-sensitive information from the OBR.

Sunak told parliament that she had “made an error of judgement” but had “accepted her mistake” and so he was “delighted to welcome her back”.

Starmer said her return was “grubby” payback after Braverman backed Sunak against Johnson’s attempt to return to Downing Street.

“There’s a new Tory at the top but as always with them, party first, country second,” the opposition leader said.

As well as mending Britain’s wounded finances, Sunak is also pledging to reunite the Conservatives after another bruising leadership contest, mere weeks after Johnson was forced out.

He has kept Truss’s defence, trade and culture ministers among others, as well as re-hiring some older faces from the Johnson cabinet.

Macron, Scholz tackle tensions in 'constructive' meeting

French President Emmanuel Macron hosted German Chancellor Olaf Scholz for lunch Wednesday, with both sides saying they made progress towards easing differences on energy and defence dogging the European Union’s vital double act.

The two leaders were “of one mind on the major directions” of policy, a German diplomatic source said after the meeting, while a source in the French presidency called it “very constructive”.

“Today was a very good and important conversation on European energy supply, rising prices and joint arms projects,” Scholz tweeted.

“Germany and France stand close together and are tackling challenges jointly”.

Macron and Scholz were at pains to put on a show of friendliness as Scholz climbed out of his black Mercedes on arrival, with both smiling and shaking hands.

The pair spoke for around an hour longer than planned, including a one-on-one session without advisors.

The German source said they discussed issues including “European energy policy, national energy policies, economic development, defence, space and foreign policy”.

Meanwhile the French presidency said the talks were “in a spirit of very close cooperation for the medium- and long-term”.

But Macron and Scholz did not appear before journalists to announce any joint decisions or take questions.

Recent weeks had seen growing signs of discord between Berlin and Paris, under pressure from Russia’s invasion of Ukraine and its knock-on effects especially on energy markets.

Berlin’s move to spend up to 200 billion euros ($200 billion) subsidising soaring gas prices and refusal to consider an EU-wide energy price cap nettled Paris and other European capitals, who fear the effect on their energy costs.

On defence, France is rattled by German plans for a shared missile shield with other NATO nations using American equipment, while longer-term projects to jointly develop new fighter jets and tanks appear stalled.

A big-spending “new era” of German defence policy announced by Scholz following the Russian attack has not translated into major contracts within Europe, especially for French firms as Macron hoped.

– ‘Motor has to work’ –

Wednesday’s meeting came instead of a postponed joint cabinet meeting between Paris and Berlin, which would have been Scholz’s first as chancellor.

So far, the German leader — in office for less than a year — has not developed the same warmth with Macron as his predecessor Angela Merkel, who “texted every day”, one French diplomatic source said ahead of the talks.

Strained ties between the EU’s two largest and most populous economies — in the past often the brokers of compromise among the bloc’s 27 members — have come at exactly the wrong time.

Russia’s invasion and the resulting disruption to the energy system have coincided with rising tensions between China and the West, as well as fears that more isolationist forces could return to power in Washington.

Berlin and Paris also differ on how to make the EU more agile faced with the new challenges, and how quickly to admit new members.

Macron warned that “both of us, together with the EU as a whole, are confronted with one of the biggest, furthest-reaching crises ever experienced by Europe,” with “a lot of work ahead,” the German diplomatic source said.

“Agreement between France and Germany is not sufficient, because everyone else has to agree, but it is necessary,” said Stephane Dion, Canadian ambassador to France and former envoy to Germany.

“They remain the motor of Europe. For Europe to work, that motor has to work,” he added.

– Tight deadline –

France’s Europe minister Laurence Boone told the Senate Wednesday that the two countries should aim to resolve their differences “by the 60th anniversary of the Elysee Treaty” on January 22.

Signed by post-war leaders Charles De Gaulle and Konrad Adenauer, the pact forms the foundations of French-German cooperation.

For now the two sides have agreed to set up “working groups… that will have the two governments working closely together towards the next steps in the coming days,” the Elysee said.

The groups cover topics including defence and security, energy and innovation, the German source said.

Macron and Scholz also agreed to talk “before and after” the German leader’s upcoming visit to China and the French president’s visit to the US, the German source said.

Boeing reports huge loss on defense contract woes

Aerospace giant Boeing reported a surprise $3.3 billion third-quarter loss Wednesday as it struggled with swelling costs on several defense programs, including the US presidential jet Air Force One.

The performance woes in defense — which also affected the KC-46 refueling and military transport aircraft and the T-7A Air Force pilot training system — reflects the drag from supply chain problems that have plagued the broader economy, as well as the restrictive nature of the contracts.

Locking Boeing into a fixed-price contract was unwise, Chief Executive Dave Calhoun acknowledged in an interview with CNBC that touched on the company’s troubled execution of an Air Force One procurement revamp negotiated with former president Donald Trump.

“It turns out the critics were right. So we didn’t get enough price, that’s fairly obvious to all of us,” Calhoun said.

“The biggest, probably, mistake on… Air Force One was the fixed price nature of it,” he said. 

“When a program that requires that many agencies and that many things to come to bear on a particular platform, and there’s only two of them, that just begs for more of a cost-incentive kind of contract.”

Boeing also said costs were rising in other unspecified defense projects.

The difficulties in Boeing’s defense program came as the company saw a jump in revenues in its commercial airplane division following the resumption of deliveries of the 787 Dreamliner and an increase in deliveries in the 737 MAX. 

The aviation giant reported a four-percent rise in revenues to $16 billion, which also missed analyst estimates. 

On the up side, Boeing reaffirmed it is on track for positive free cash flow in 2022, a statement that temporarily boosted shares. The company also described demand for commercial planes as robust in spite of worries about the broader global economy.

Separately, Boeing announced that Alaska Airlines had exercised options for an additional 52 737 MAX planes.

The Alaska Airlines order includes 42 of Boeing’s latest MAX plane, the 737 MAX 10, which has still not been certified by US authorities.

Because of a change in Federal Aviation Administration certification requirements enacted by Congress that takes effect in late December, Boeing would likely need US lawmakers to enact fresh legislation.

The earlier 2020 law required the FAA to only certify planes equipped with a flight crew alerting system designed to help pilots prioritize warnings and advisories activated during flight.

The alerting system in the 737 MAX 10 shares the traits in the earlier MAX planes and does not meet the new standards. Boeing has argued the benefit of the MAX 10’s “commonality” with earlier versions of the jets, which enables pilots experienced in earlier version of the MAX to easily transition to the MAX 10.

Calhoun said in the interview the company was making its case on Capitol Hill and was “confident” on an extension.

– China ‘de-risk’ –

Another question concerns Boeing’s presence in China, the only major market where the 737 MAX has not returned.

In light of strong demand, Calhoun suggested Boeing could shift some planes originally built for Chinese carriers to other customers. 

“We’re free traders. We would love to continue to do business with China, but we’re not going to put our investors at risk as we go down this path,” Calhoun told CNBC. 

“And as we’ve said before, we continue to de-risk the backlog that we have and the airplanes that we have on our tarmac.”

Later, on a conference call with Wall Street analysts, Calhoun reiterated Boeing’s intention to “de-risk” its business with respect to China, adding that the company is also “clear-eyed” about rising geopolitical risk.

Boeing shares rose 2.2 percent but by midmorning trading slid to a 1.2 percent loss at 144.88.

US targets Moldovans for Russian election interference

The United States on Wednesday imposed sanctions on two Moldovan oligarchs and others for corruption or allegedly working with Russia to undermine the frontline country’s democracy.

The sanctions come as Western powers seek to bolster support for Moldova amid fears of a spillover from the war in neighboring Ukraine, with Russia maintaining troops in Moldova’s breakaway region of Transnistria.

The United States said it was blocking any US assets and criminalizing transactions with Ilan Shor, an Israeli-born businessman turned populist politician in Moldova which he fled in 2019.

Married to a pop singer decorated by President Vladimir Putin, Shor was convicted over stealing $1 billion from Moldovan banks in 2014.

The US Treasury Department said Shor worked with Russia to create an alliance ahead of 2021 elections and later coordinated with Moscow to blunt Moldova’s efforts to join the European Union.

The Treasury Department also imposed sanctions on another powerful oligarch, Vladimir Plahotniuc, who fled the country in 2020 under the shadow of graft allegations and has already been refused entry by the United States.

Secretary of State Antony Blinken said the United States was “promoting accountability for systemic efforts to undermine Moldova’s democratic institutions and elections.”  

“The United States will continue to hold accountable those threatening democracy abroad,” he said in a statement.

The Treasury Department also targeted seven other people and 12 entities over alleged Russian efforts to meddle in Moldovan politics.

US new home sales fall in September on rising mortgage rates

New home sales in the US dipped in September, official data showed Wednesday, as worsening affordability nudges ownership further out of reach for many.

Sales soared during the coronavirus pandemic as Americans snapped up homes on the back of bargain mortgage rates, but the sector has cooled with the US Federal Reserve hiking lending rates as it fights to bring down surging inflation.

Mortgage rates have climbed in the past year and taken a toll on potential homebuyers, with the average for a 30-year loan hitting its highest in over a decade.

In September, sales of new single-family houses fell 10.9 percent from August to a seasonally adjusted annual rate of 603,000, the Commerce Department said.

The median sales price for a new home rose however to $470,600, up by more than $34,000 from August’s revised figures.

Prices have been supported recently by low levels of existing home inventory, pushing buyers into new homes, said Ian Shepherdson of Pantheon Macroeconomics in an analysis this week.

But while sales of new homes rose in August to the highest rate since early this year, analysts expected the gain to be short-lived given a drop in mortgage purchase applications and increasing mortgage rates.

The leap in August could be inaccurate given margins of error in data, or it could be “unsustainable, if it reflects a rush of purchases by people who locked-in rates as they began to surge again,” said Shepherdson.

“We expect both new and existing home prices to fall sharply over the next year,” he said, pointing to growing inventory levels.

The latest down trend in the small new home segment reflects that in the larger existing home sales market, which made an eighth straight monthly decline last month according to industry data.

With inflation still persistently high, observers widely expect the Fed to deliver a further rate hike at an officials’ policy meeting next week.

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