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Russia Arrests Wall Street Journal Reporter for ‘Espionage’

March 30, 2023 by John Hayward Leave a Comment

Russia announced on Wednesday that 31-year-old American journalist Evan Gershkovich, a reporter for the Wall Street Journal (WSJ), was arrested in Ekaterinburg and charged with espionage.

The WSJ “vehemently” denied the allegations and demanded the “immediate release” of Gershkovich.

Russia’s FSB security service, successor to the notorious KGB, said it obtained authorization to arrest Gershkovich after a closed-door meeting of the Lefortovo district court in Moscow. Gershkovich’s lawyer was not allowed to attend this meeting, and journalists were barred from the entire floor of the courthouse where it took place. Russian state media claimed these precautions were necessary because a bomb threat was called into the building.

The FSB charged Gershkovich with “collecting information about one of the enterprises of the Russian military-industrial complex, which constitutes a state secret.” He allegedly conducted this vaguely described espionage at the behest of the U.S. government.

“It is not about a suspicion, it is about the fact that he was caught red-handed,” Kremlin spokesman Dmitry Peskov insisted on Wednesday.

Gershkovich has been reporting on the attitude of the Russian public toward the invasion of Ukraine from the Ural Mountains city of Ekaterinburg for several weeks. He was said to be working on a story about the infamous Wagner Group mercenary organization at the time of his arrest.

Before his assignment in Ekaterinburg, Gershkovich lived in Moscow for six years. He worked for the Moscow Times and Agence France-Presse (AFP) before joining the WSJ in 2022. Prior to moving to Moscow, he worked as a news assistant for the New York Times.

Gershkovich was duly accredited as a journalist by the Russian Foreign Ministry, but Ministry spokeswoman Maria Zakharova claimed on Wednesday he abused his credentials for “activities that have nothing to do with journalism.”

According to Russian media, the reporter was taken into custody by FSB agents in Ekaterinburg and transported to Moscow, where he pleaded not guilty to the charges. He could face up to 20 years in prison if convicted. Experts on the Russian “legal system” said he could spend a year or more in prison, largely incommunicado, before the investigation is completed. Russian Deputy Foreign Minister Sergei Ryabkov ruled out any possibility of freeing Gershkovich with a quick prisoner swap.

Gershkovich is the first American journalist to be detained in Russia since the fall of the Soviet Union, but far from the first high-profile foreigner to be taken hostage by the regime of leader Vladimir Putin since he invaded Ukraine. 

Some observers believe Gershkovich was kidnapped to give Russia more leverage in negotiations for the release of two alleged Russian spies arrested in Slovenia in December. Others viewed his arrest as part of Putin’s escalating crackdown on journalism and political dissent as the war in Ukraine grinds on or as an act of revenge against the U.S. for sanctions. Many wondered if Putin sensed weakness he could exploit after securing the release of legendary arms kingpin Viktor Bout for U.S. women’s basketball player Brittney Griner in an absurdly lopsided December prisoner swap.

RELATED: Joe Biden Calls Brittney Griner “Best About America” While Leaving Behind Marine Veteran

The White House

Jeanne Cavelier of Reporters Without Borders said on Thursday:

We are very alarmed because it is probably a way to intimidate all Western journalists that are trying to investigate aspects of the war on the ground in Russia. The Western powers should immediately ask for clarifications on the charges, because as far as we know he was just doing his job as a journalist.

“That unwritten rule not to touch accredited foreign journalists has stopped working,” Russian defense attorney Ivan Pavlov warned.

The Committee to Protect Journalists (CPJ) said it was “deeply concerned” by the arrest of Gershkovich, which was “the latest in a long line of attempts by Russia to use national security laws to silence reporting.”

The National Press Club said in a statement on the case:

Evan Gershkovich is a journalist. He should be released immediately and unharmed and allowed to return to his important work. Evan has a significant and distinguished career working for the New York Times and AFP prior to the Wall Street Journal. We consider this an unjust detention and call on the State Department to designate his detention in that manner at once.

Carnegie Russia Eurasia Center senior fellow Tatiana Stanovaya told the New York Times (NYT) on Thursday that Moscow probably took Gershkovich as a “negotiating chip” and a provocation, hoping to “attract a lot of attention politically in the United States so that the authorities will have to react.”

The Biden administration had not responded to the arrest of Gerhskovich as of Thursday morning.

“The Wall Street Journal vehemently denies the allegations from the FSB and seeks the immediate release of our trusted and dedicated reporter, Evan Gershkovich. We stand in solidarity with Evan and his family,” the WSJ said on Thursday.

Gershkovich’s editors said they lost contact with him on Wednesday afternoon while he was working in Ekaterinburg. The first solid clue to his situation was a photo posted to the messaging site Telegram that showed an unidentified man being dragged out of a restaurant in the city and loaded into a van. FSB officials in Ekaterinburg initially denied any knowledge of Gershkovich’s arrest.

Filed Under: Asia, Breitbart, Committee to Protect Journalists, Dmitry Peskov, Espionage, FSB, Journalism, Media, National Press Club, National Security, News, press freedom, Reporters without Borders, Russia, Ukraine, Vladimir Putin, Wall Street Journal

Brazil Inks Deal to Use Yuan, Not Dollar, in Trade with China

March 30, 2023 by Frances Martel Leave a Comment

The governments of Brazil, now under the leadership of radical leftist Luiz Inácio Lula da Silva, and communist China announced an agreement on Wednesday to no longer use the U.S. dollar to conduct trade, instead relying on the Chinese yuan and Brazilian real.

China is Brazil’s largest trade partner, meaning the deal will significant decrease Brazil’s use of the dollar generally. The deal is one of several between the two countries planned to be announced this week, when Lula was expected to travel to Beijing for meetings with dictator Xi Jinping. Lula, 77, was forced to cancel his travels after being diagnosed with influenza-induced pneumonia this week.

The move follows aggressive efforts in the past five years by China to limit the influence of the U.S. dollar and slowly convince the world to use commerce using the yuan. Beijing has long counted on Brazil as an ally and friend – and fellow member of the BRICS economic and political coalition, whose members have pushed for the eradication of the dollar in global trade – even through the tepid relations with conservative former President Jair Bolsonaro. Towards the end of his term last year, Bolsonaro administration officials stated they had a “great interest” joining China’s Belt and Road Initiative (BRI), a global debt trap plan to erode poorer nations’ sovereignties through predatory loans meant for infrastructure development.

According to the Brazilian news outlet G1, China and Brazil will create a “clearing house” mechanism with the power of the Industrial and Commercial Bank of China (ICBC) to rapidly exchange reals into yuan and vice versa, eliminating the need for the dollar. Currently, any trade between Chinese and Brazilian businesses, including loans and purchases, requires each side to convert their national currency into dollars to send to the other side. G1 noted, citing Lula administration officials, that China has already established similar “clearing houses” in Chile and Argentina, countries that have officially joined the Belt and Road Initiative.

“The expectation is that this will reduce costs … promote even greater bilateral trade and facilitate investment,” the Brazilian Trade and Investment Promotion Agency (Apex Brasil) said in a statement announcing the agreement on Wednesday. Apex Brasil is part of the nation’s Foreign Ministry.

The deal will likely impact billions of dollars in trade. Brazil and China documented upwards of $150 billion in trade volume throughout 2022, most of it Chinese exports to Brazil. Brazil is a major source of key agricultural products, notably soy beans, to China; Brazil’s exports made up nearly $90 billion worth of trade with China last year. China has been Brazil’s largest trade partner for 13 years, since Lula’s last stint in office, which ended in 2011.

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House Appropriations Committee

The Chinese Foreign Ministry confirmed the agreement on Thursday, refraining from fully celebrating it but expressing hope that it would facilitate increased trade with Brazil.

“Earlier this year, China and Brazil signed a memorandum of cooperation to establish renminbi (RMB) [yuan] clearing arrangements in Brazil,” Foreign Ministry spokeswoman Mao Ning said. “These arrangements will help enterprises and financial institutions in both countries conduct cross-border transactions using the RMB. They will also further facilitate bilateral trade and investment.”

Lula has been one of Latin America’s most vocal proponents of moving away from using the dollar as a common trade currency. Throughout his candidacy for president last year, the former president and inmate promoted the idea of creating a Euro-style common currency for South America, titled the sur, alongside socialist Argentina.

“We are going to restore our relationship with Latin America. God willing, we will create a Latin American currency,” Lula said in an interview in May. “We don’t have to depend on the dollar.”

In January, following Lula’s inauguration, the specter of the sur arose in local media again, as Argentine President Alberto Fernández sought the support of the largest economy on the continent to keep the woefully performing Argentine peso afloat.

“There will be a decision to start studying the parameters needed for a common currency, which includes everything from fiscal issues to the size of the economy and the role of central banks,” Argentine Economy Minister Sergio Massa said to the Financial Times in January. “It would be a study of mechanisms for trade integration. … I don’t want to create any false expectations, it’s the first step on a long road which Latin America must travel.”

The BRICS coalition – Brazil, Russia, India, China, and South Africa – has also openly sought ways to distance the world economy from the American dollar. Following Russia’s full-scale invasion of Ukraine last year, Russian leader Vladimir Putin increased the pressure of BRICS to seek ways to conduct trade outside of the dollar, allowing Russia to stay afloat amid Western sanctions on its economy.

“The Russian president stated earlier that together with other BRICS nations, Moscow was working on alternative mechanisms of payment. Putin emphasized that Russia’s financial messaging system was open for banks from other BRICS countries to join,” the Russian news agency Tass reported in June. “According to Putin, efforts are underway to create an international reserve currency based on the basket of BRICS currencies and Russia’s Mir payment system is expanding its global presence.”

Chinese officials noted that month that the Russian government, which has greatly increased its oil exports to China in the past year, was increasingly urging Beijing to find a way out of using the dollar to enact trade, offering to use the yuan instead.

BRICS will likely require more and stronger member nations to solidify its stance as an alternative economic mechanism to the current dollar-led financial order. To that end, BRICS nation leaders have spent much of the past year discussing expansion. Argentina, Iran, and Saudi Arabia are among the top country names repeatedly surfacing as having an interest in joining BRICS and the economic potential to bring enough to the table to clear the bar for entry.

Disgraced former Brazilian President Dilma Rousseff, Lula’s protege, was chosen to lead BRICS’ New Development Bank (NDB), its alternative institution to global finance agencies like the International Monetary Fund (IMF), last week.

“Mrs. Dilma Vana Rousseff, a renowned stateswoman and economist devoted to global development over the years, enjoys high prestige and significant influence in the world,” Chinese Foreign Ministry spokeswoman Mao Ning said on Thursday. “China, as the host country, welcomes the assumption of office by Mrs. Rousseff. We will continue to deepen all-round cooperation with the NDB and fully support her work.”

Follow Frances Martel on Facebook and Twitter.

Filed Under: Asia, Belt and Road Initiative, Brazil, Breitbart, BRICS, China, communism, Latin America, Lula da Silva, National Security, News, U.s. dollar, Xi Jinping

Biden’s ‘Summit for Democracy’ Attracts Apathy from Allies, Mockery from Dictatorships

March 29, 2023 by John Hayward Leave a Comment

The U.S. State Department’s second Summit for Democracy, running from Tuesday to Thursday this week, was a disappointing affair — snubbed outright by Pakistan and mocked by the rising authoritarian powers of China and Russia.

Pakistan pulled out of the summit at the last minute, stating it could “promote and strengthen diplomatic principles” just fine on its own. Foreign policy analysts suspected the real reasons Pakistan bowed out were internal turmoil, as former prime minister Imran Khan rallies support in the streets for his bid to return to office, and a desire to placate China.

Pakistan might also have taken a pass on the summit because it would likely face human rights criticism from the other attendees, especially after the administration of incumbent Prime Minister Shehbaz Sharif began cracking down on opposition political speech. 

For his part, Khan declined to attend the first Summit for Democracy when he was in power and, since he has publicly blamed the United States for conspiring to get him kicked out of office last year, he would be unlikely to attend next year if he returns to the top office.

Russia’s Tass news service on Wednesday quoted Kremlin spokesman Dmitry Peskov sneering that Biden’s summit “can hardly be regarded as a serious event.”

“Those who agreed to attend this class were free to do so, of course. It’s their sovereign right, but here, in fact, many see that such attempts to divide the world into first-rate and second-rate countries are now seen by many with a smile,” Peskov said.

In this photo released by the Russian Foreign Ministry Press Service, Russian Foreign Minister Sergey Lavrov, left, and Chinese Foreign Minister Wang Yi pose for a photo prior to their talks on the sideline of the 12th East Asia Summit foreign ministers' meeting in Phnom Penh, Cambodia, on Aug. 5, 2022. Wang defended his country's position on the war in Ukraine on Sunday, Dec. 25, and signaled that China would deepen ties with Russia in the coming year while striving to bring US China ties back on the right course. (Russian Foreign Ministry Press Service via AP, File)

In this photo released by the Russian Foreign Ministry Press Service, Russian Foreign Minister Sergey Lavrov, left, and Chinese Foreign Minister Wang Yi pose for a photo prior to their talks on the sideline of the 12th East Asia Summit foreign ministers’ meeting in Phnom Penh, Cambodia, on Aug. 5, 2022. (Russian Foreign Ministry Press Service via AP, File)

Russian Foreign Minister Sergey Lavrov chimed in by saying the Summit for Democracy “primarily represented countries obeying Washington’s policies,” plus a few who only attended because they want to curry favor with the United States. Lavrov’s underling Maria Zakharova, the spokeswoman for the Russian Foreign Ministry, dismissed the event as a “manifestation of U.S. neocolonial practices.”

China’s state-run Global Times jeered that the United States has no business offering lessons on democracy when it has mass shootings like the one that occurred in Nashville on Monday.

Perhaps sensing that opportunistic cheap shot might be a stretch even for Chinese Communist readers, the editors scrambled to find American media criticism of the summit it could parrot, and then tried claiming the Summit for Democracy was inherently undemocratic because it supposedly prods democracies to look down their noses at aggressive authoritarian regimes like China and Russia:

Interestingly, even many American media outlets have cried out “the emperor has no clothes.” Take a look at the headlines of several US media articles on Monday: “Why is Biden doing another pointless Summit for Democracy?” “What can be salvaged from Biden’s Democracy Summit,” “The US doesn’t need another democracy summit” and so on. These articles pointed out that the organization and decision-making process of the summit was chaotic, opaque, and lacking in inclusivity, and that there have been constant controversies over the selection of participants. These suspicions, criticisms and denials from within the US about the “Summit for Democracy” reflect the severity of the internal divisions in the country and expose the true colors of the summit.

Both the motives and outcomes of the so-called “Summit for Democracy” are anti-democratic, and it completely serves the diplomatic and geopolitical interests of the US. By drawing ideological lines and using the standards set by the US, it divides the international community into the so-called “democratic and non-democratic camps,” and creates division and confrontation in a world that urgently needs unity and cooperation. Reports on the summit have generally emphasized that it is aimed at dealing with the conflict between Russia and Ukraine and China’s rise. It is not surprising that it will once again become a propaganda event for Washington to persuade other countries to cooperate with its “competition” strategy. Such a face is not only ugly but also somewhat sinister.

The US has been touting that the essence of its political democracy is “freedom,” “diversity,” and “inclusiveness,” but the “Summit for Democracy” has become a sharp satire of these values: Washington shuts its door and sets a single standard for democracy, not allowing questioning and discussion, and cannot tolerate the existence of other democracies that differ from American-style democracy.

The Global Times was too busy scrapbooking every bit of bad news it could find on U.S. media websites into a grim requiem for democracy to think about criticizing the Summit for Democracy itself as a low-voltage media event, essentially a glorified web symposium that has not generated much news during any of its iterations.

That task fell to what the Chinese Communist Party paper described as “some American media outlets,” but was in fact a fairly new Washington, DC, think tank called the Quincy Institute for Responsible Statecraft, which posted a dour report on the Summit for Democracy on Monday that Chinese state media has been very fond of quoting.

“The best thing that the U.S. could do to ‘bolster’ the cause of democracy in the world is to improve our own practice of it here,” the Quincy Institute said.

President Joe Biden delivers remarks on preserving and protecting democracy as Election Day approaches at the Columbus Club at Union Station on Nov. 2, 2022, in Washington, DC. (Kent Nishimura/Los Angeles Times via Getty Images)

The Quincy report condemned the Summit for Democracy as a “largely pointless exercise” and wondered why the Biden administration would bother holding another one since the minimal product of the summit hardly seems worth the bad press that comes from excluding some nations for alleged authoritarian tendencies but including others — most notably India, which the report claimed has been “steadily moving in the wrong direction for years under Prime Minister Narendra Modi.”

The report also felt Biden’s foreign policy has alienated so many countries that it cannot afford to stick with a strict “autocracy vs. democracy” paradigm.

A similar epitaph was written by Foreign Affairs on Monday, quoting reports from organizations like Freedom House that found authoritarianism on the rise and democracy declining around the world, so this does not seem like an opportune moment for another gabfest about the wonders of representative government.

Foreign Affairs accused the Biden administration of doing little other than hold democracy confabs and issue press releases about how important democracy is, while awkwardly ignoring “democratic regression” in key nations like Turkey, Hungary, Poland, Chad, Thailand, and Vietnam. 

“If this summit, like the first, doesn’t elevate democracy to the status of a core national security interest and lead to country-specific strategies for countering authoritarianism, many champions of democracy will be disheartened and could grow cynical about American intentions,” the article concluded.

Filed Under: Asia, Breitbart, China, diplomacy, Joe Biden, National Security, News, Pakistan, Politics, Russia, Summit for Democracy, Ukraine

FIFA Denies Indonesia’s Bid to Host U-20 World Cup Over Resistance to Israel’s Participation

March 29, 2023 by Warner Todd Huston Leave a Comment

Soccer’s international governing body, FIFA, has denied Indonesia’s bid to host the Under-20 men’s World Cup due to the predominantly Muslim country’s attacks on Israel and support of the Palestinians.

Any nation that hosts a FIFA tournament must host all FIFA-affiliated teams. But over recent months, Indonesia has been agitating against allowing Israel’s team to enter the country for the Under-20 games, according to ESPN.

Rallies sponsored by radical Muslims waving Palestinian flags have erupted in the country’s capital of Jakarta, demanding that the government pull the welcome mat for Israel’s World Cup team. And threats of violence have been made.

Any supporters thinking of travelling to Bali should think again: Its governor is refusing to allow Israel’s soccer team to play. We will not travel to Bali. https://t.co/ktkYlRiIOJ

— Avi Abraham Benlolo (@AviBenlolo) March 29, 2023

Consequently, FIFA has rescinded Indonesia’s permission to hold the Under-20 tournament.

“FIFA has decided, due to the current circumstances, to remove Indonesia as the host of the FIFA U-20 World Cup 2023,” a FIFA statement reads.

“A new host will be announced as soon as possible, with the dates of the tournament currently remaining unchanged. Potential sanctions against the PSSI may also be decided at a later stage.”

Zainudin Amali, deputy Indonesia’s PSSI chief and former sports minister admitted to KompasTV that FIFA canceled the games because Indonesia was not meeting its agreements. “FIFA decided Indonesia didn’t follow through with its earlier commitments while bidding,” Amali said.

While it is good to see FIFA living up to its commitments and criticizing Indonesia for its assault on human rights, this is the same sports organization that approved the radical Muslim-led nation of Qatar to host the World Cup.

Follow Warner Todd Huston on Facebook at: facebook.com/Warner.Todd.Huston, or Truth Social @WarnerToddHuston

Filed Under: antisemitism, Asia, Breitbart, FIFA, Gianni Infantino, Indonesia, Israel, Israel / Middle East, News, Palestinians, Sports

China’s Alibaba Breaks into Six Units as Founder Jack Ma Returns from Exile

March 29, 2023 by John Hayward Leave a Comment

China’s Alibaba Group announced on Tuesday that it will split up into six different units, a dramatic restructuring for the tech giant undertaken shortly after founder Jack Ma returned to China from a year of overseas exile.

Alibaba lost about 70 percent of its share value after Ma criticized the Chinese Communist Party at a forum in Shanghai in October 2020. The regime carried out a major crackdown on other high-flying tech firms as well.

Ma, who was once considered the richest man in China, disappeared completely for a few months as his net worth was decimated, reappeared as a much-chastened figure for a few subdued events, and then left China for a year-long exile that saw him eventually settle in Japan.

The regime in Beijing appeared to have made its peace with Ma as long as he kept a low profile and stayed out of China – which made his reappearance last week in first Hong Kong and then Hangzhou, the city where Alibaba is based, something of a surprise. Sources within the Chinese Communist Party said Ma returned at the invitation of Premier Li Qiang, who was desperate to rebuild China’s business-friendly image after years of lockdowns and crackdowns.

Analysts told Reuters the breakup of Alibaba, by far the most dramatic restructuring in the company’s quarter-century history, might be intended to “ease scrutiny” by making the immense company less of an inviting target for Chinese regulators – and for American regulators, who have been increasingly suspicious of big Chinese firms like Huawei and ByteDance, the owner of TikTok.

“By paving the way for Alibaba’s various new units to list, the Chinese government may be signaling less hostility towards its tech giants as a placatory message to U.S. and international investors,” NWI Management hedge fund analyst Tara Hariharan told Reuters, possibly also explaining why Very Bad Man Jack Ma was suddenly allowed to return from the cornfield.

“It does seem something of a coincidence that this is happening just as Ma seems comfortable returning. To me it suggests something that Alibaba has been wanting to do for some time, but has been waiting for the opportunity,” Equity Capital macroeconomist Stuart Cole agreed. 

According to Alibaba CEO Daniel Zhang, the breakup is intended to “make our organization more agile, shorten decision-making links, and respond faster.”

Zhang, who plans to remain CEO of a parent Alibaba Group that will now operate more like a holding company, said he wanted every employee to “return to the mindset of an entrepreneur.” He also implied the reorganized company would “lighten and thin” its staff, but did not specify any planned job cuts.

Alibaba regained a remarkable $32 billion in market value in a single day after announcing its breakup, which analysts took as a sign that more Chinese mega-corporations would adopt similar restructuring strategies, to reassure both the paranoid Communist regime and nervous foreign investors.

“Alibaba’s break-up appears to have been orchestrated by Beijing, along with Jack Ma’s sudden reappearance. The business unit separation does not seem to result from a strategic impetus, but looks to have deep potential upside for shareholders,’ Kaiyuan Capital managing director Brock Silvers said on Wednesday, seemingly convinced the Alibaba rally was more than a temporary blip.

Filed Under: Alibaba, Asia, Breitbart, China, Corporations, Economy, Jack Ma, National Security, News, regulations

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