February 1, 2024

Russian assets frozen in European accounts are generating billions of dollars in interest payments that could be diverted to help repair Ukraine’s war-torn economy — and the European Union just took a step closer to doing that. After Russia’s full-scale invasion of Ukraine in February 2022, Western countries froze nearly half of Moscow’s foreign reserves — some €300 billion ($327 billion). Around €200 billion ($218 billion) sits in the European Union — mostly at Euroclear, a financial institution that keeps assets safe for banks, exchanges and investors. EU leaders agreed a crucial $50 billion funding package for Ukraine on Thursday and came closer to finalizing a plan to use the profits piling up in Euroclear’s accounts. In a statement issued at the end of a summit, EU leaders said “potential revenues could be generated … concerning the use of extraordinary revenues held by private entities stemming directly from the immobilised Central Bank of Russia assets.” Belgium-based Euroclear disclosed Thursday that it has earned €5.2 billion ($5.6 billion) in interest on income generated by sanctioned Russian assets since they were frozen by EU and Group of Seven countries in 2022. “The number of sanctions and countersanctions that have been introduced since February 2022 are unprecedented and continue to have a significant impact on the daily operations of Euroclear,” the group said in a statement. The European Union and its allies are determined to make Russia foot part of the colossal bill for rebuilding Ukraine — estimated by the World Bank a year ago at $411 billion over the next decade. One proposal put forward by the European Commission would involve using a special levy to collect the windfall interest income, which would then be paid into the EU budget for the reconstruction of Ukraine. RELATED ARTICLEEU agrees $50B funding deal for Ukraine at pivotal time in the war That plan has been delayed by legal and financial concerns, with some EU member states and the European Central Bank worried that even carefully targeted measures could fall foul of international law and shake confidence in the euro as the world’s second biggest reserve currency. The EU has been at pains to contrast the illegality of Russia’s invasion with its own strict adherence to the rule of law. EU member countries have now agreed in principle to tap this windfall interest income, although the details of how this will be done practically must still be ironed out, an EU diplomat told CNN. Lawyers are working on the text of the agreement before returning it to EU member states for final approval. In its earnings statement, Euroclear — which settles cross-border trades and safeguards more than $40 trillion in assets — said it was focused on “minimising potential legal and operational risks” that may arise from proposals by EU officials to hand the money to Ukraine. Euroclear said additional administrative costs relating to the sanctions cost it €62 million ($67 million) last year, “with considerable senior management and board focus on the topic.” It added that cash on its balance sheet soared €38 billion ($41 billion) year-on-year to €162 billion ($175 billion), boosted by payments associated with frozen Russian assets, including bonds. These payments include, for example, interest paid on bonds, known as coupons, or the proceeds generated by securities that mature and are reinvested. Ordinarily, these payments would have been made to Russian bank accounts, but they have been blocked by the sanctions and are generating vast amounts of interest — even more so given the recent spate of rate hikes. Euroclear, for its part, is embroiled in several legal proceedings pertaining to the sanctions — almost exclusively in Russian courts — as claimants seek to access the assets blocked in its books. The company said it continues to retain profits related to these assets “until further guidance is provided on the distribution or management of such profits.” Source:https://edition.cnn.com/2024/02/01/business/frozen-russian-assets-ukraine/index.html

At least one person was killed and four others were injured on Thursday after several blasts hit different parts of Balochistan including provincial capital Quetta, according to police. In Quetta, the explosion took place in the Spinny Road area. Police have cordoned off the area and are ascertaining the nature of the blast, Geo News reported. The explosions also took place in Naseerabad and Turbat districts of the province. According to police, at least three people were injured when a hand grenade exploded at the Dera Allah Yar Bhatti gate area in Naseerabad and one person was injured in a grenade blast in Turbat’s main market. Bomb disposal squad and rescue teams have arrived at the site of a blast in Quetta where, according to police, at least one person has died in the explosion. Senior Superintendent of Police (SSP) Operations Quetta Tariq Jawad told the media that 8 to 10 kg of explosives were used in the blast in the provincial capital. He said the deceased of the blast has not been identified yet, adding the preliminary investigation showed the victim was a passer-by. The SSP further said that no election-related was underway near the site of the explosion. The latest incidents come as the Election Commission of Pakistan (ECP) is scheduled to meet today (Thursday) to discuss the law and order situation in Khyber Pakhtunkhwa (KP) and Balochistan amid an uptick in violence. In a statement today (Thursday), a spokesperson of the ECO said the electoral body has sought an immediate report from the chief secretary and Balochistan police chief on multiple explosions in the province. The situation was further aggravated Wednesday as violence marred electioneering activities as multiple terrorist attacks in a row rocked various cities of Balochistan and KP resulting in several injuries. A day earlier, Rehan Zeb Khan, an independent candidate for NA-8 and a member of the Pakistan Tehreek-e-Insaf was shot dead while canvassing in KP’s Bajaur district. On Tuesday, a bomb attack on the PTI’s election rally in Sibbi killed four people. The uptick in violence sounded alarm over the country’s security situation ahead of the general elections — scheduled to be held on February 8. The deadly explosion came just a few days before the national-level polls, with political parties leading their electoral campaigns in full swing amid heightened security and deployment of law enforcers to ensure the law and order situation across the country. With more than 128 million voters, various circles have raised concerns over the deteriorating security situation in the country, especially in the aforementioned provinces, with some lawmakers even moving the Senate seeking poll delay in light of security threats. Source:https://www.aljazeera.com/news/liveblog/2024/2/1/israels-war-on-gaza-live-death-toll-in-gaza-nears-27000-66000-wounded

Hamas says it is still studying a proposal to halt the war in Gaza as Israeli bombardment continues. Palestinians released after being detained by Israeli forces in Gaza share harrowing accounts of suffering and torture while being held in Israel. Qatar’s PM warns if Israel’s war on Gaza does not end soon, the risks of a greater regional conflict will grow. At least 27,019 people have been killed and 66,139 wounded in Israeli attacks on Gaza since October 7. The revised death toll in Israel from the October 7 Hamas attacks stands at 1,139. Palestinian journalist documents destruction of Gaza City Journalist Momin Abuowda has posted video on his Instagram account, reviewed by our verification unit, that shows the wreckage of Gaza City after the withdrawal of Israeli troops. “After more than 90 days, the Israeli occupation forces withdrew from the twin junction in the north of Gaza Strip,” Abuowda wrote in his post. If you’re just joining us It’s 7pm (17:00 GMT) in the occupied Palestinian territories and Israel. Here are some of the main developments this afternoon: The Palestinian Health Ministry in Gaza says more than 30,000 displaced people in schools near Nasser Hospital in Khan Younis have no water, food or baby formula. UNRWA Commissioner General Philippe Lazzarini says this “is the time to reinforce and not to weaken UNRWA” as the International Court of Justice calls for more humanitarian assistance. More than 30 protests have taken place across Israel demanding the return of captives held by Hamas in Gaza, Israeli outlet Ynet reports. Some protesters have been trying to block aid deliveries from entering Gaza for days. Palestinian authorities have demanded an international investigation after a mass grave containing dozens of bodies was found at a Gaza school. Palestinian news agency Wafa reports Israeli forces have detained at least 41 Palestinians, including a woman, during raids and searches on Wednesday. Click here to share on social media UK deputy PM says strikes weakening the Houthis Oliver Dowden has said that continued strikes by the US and the UK are weakening the Houthis, but that no ground forces will be sent to Yemen. “Let’s be absolutely clear from the start. We have no plans whatsoever to put boots on the ground,” Dowden said in remarks on Thursday. “We need to tighten the pressure on the Houthis because at the root of this lies a commitment from the United Kingdom to ensure stability and free trade of goods and movement,” he added. An aircraft takes off to join the US-led coalition to conduct air strikes against Houthi targets in Yemen [US Central Command via X/Reuters] Click Qassam Brigades claim several attacks on Israeli troops in Gaza City The armed wing of Hamas says that it has taken part in heavy clashes throughout the city, and in the last hour has released statements claiming several attacks: Qassam fighters say they targeted several vehicles of the Israeli army, including one belonging to its engineering corps, with Yasin-105 rockets on the outskirts of the Sheikh Radwan neighbourhood in Gaza City. The group says it has hit “enemy concentrations” in the west of Gaza City with “heavy-caliber” mortar shells. It also said its fighters seized three Israeli drones south of the Zeitoun neighbourhood in the city. Source:https://www.aljazeera.com/news/liveblog/2024/2/1/israels-war-on-gaza-live-death-toll-in-gaza-nears-27000-66000-wounded