Latest news with #KielInstitutefortheWorldEconomy
Yahoo
9 hours ago
- Politics
- Yahoo
US pauses some munitions shipments to Ukraine, including air defense missiles, senior White House official says
The Trump administration is pausing some weapons shipments to Ukraine, including air defense missiles, following a review of military spending and American support to foreign countries, a senior White House official told CNN. Defense Secretary Pete Hegseth signed off on the review, which the official noted had been underway for months. It was not immediately clear if military support provided to other countries would be affected. White House Deputy Press Secretary Anna Kelly said the decision was made 'to put America's interests first.' Russia welcomed the decision, claiming – without providing any evidence – it was made because the US did not have enough weapons. 'As far as we understand the reason for this decision was empty warehouses, lack of these weapons in warehouses. But in any case, the fewer weapons are supplied to Ukraine, the closer the end of the special military operation,' Kremlin spokesperson Dmitry Peskov told reporters in a phone call, using the Kremlin moniker for Russia's unprovoked war on Ukraine. The decision to halt some weapons transfers to Ukraine comes after President Volodymyr Zelensky pleaded with Western allies to bolster its aerial defenses after intensifying Russian airborne attacks. Russia has in recent weeks launched near-nightly air attacks on Ukraine, involving hundreds of drones and missiles. On Sunday, the Ukrainian military said a pilot was killed after his F-16 fighter jet crashed during a Russian aerial assault. Following the attack, Zelensky said on social media Ukraine is ready to buy 'American systems' to strengthen its air defenses. Ukraine's defense ministry said Wednesday that it 'has not received any official notifications about the suspension or revision of the delivery schedules for the agreed defence assistance.' But officials in Kyiv stressed on Wednesday that US weapons played a critical part in the country's defense. 'It would seem very strange, it would seem inhumane to stop supplying missiles … especially to Patriot systems, which are clearly protecting the civilian population in Ukraine on a large scale,' Mykhailo Podolyak, Ukraine's presidential office advisor, said. The US has been the biggest single donor of military aid to Ukraine since Russia launched its full-scale invasion in 2022, supplying Ukraine with air defense systems, drones, rocket launchers, radars, tanks and anti-armor weapons, leading to concerns over dwindling US stockpiles. But the balance of aid to Ukraine has changed significantly since Trump returned to power, casting doubt over the future of US support for Kyiv. In April, Europe surpassed the US in total military aid to Ukraine for the first time, with its contribution equaling 72 billion Euros ($84.9 billion), compared with the US's 65 billion Euros ($76.6 billion), according to data from the Kiel Institute for the World Economy, a German think tank that closely tracks wartime aid to Ukraine. The shift came after Trump halted all shipments of military aid to Ukraine following a heated Oval Office argument with Zelensky in March. Trump resumed aid flows to Ukraine about a week later. Last week, during the NATO summit in The Hague, US President Donald Trump suggested Kyiv may see future Patriot missile system deliveries from the US – signaling a possible shift in his thinking about US aid flows to Kyiv. The Patriots are widely considered among the best air defense systems, particularly in protecting against advanced hypersonic and ballistic missiles. Ukraine is known to have roughly half a dozen of the US-made Patriot air defense systems, which play a crucial role in its air defense, protecting millions of civilians from Russian missiles. But Kyiv is at risk of running out of missiles for these systems. This story has been updated with additional information. CNN's Svitlana Vlasova and Anna Chernova contributed to this report.
Saudi Gazette
14 hours ago
- Business
- Saudi Gazette
US halts some weapons shipments to Ukraine, White House says
WASHINGTON — The Trump administration is pausing some weapons shipments to Ukraine, including air defense missiles, following a review of military spending and American support to foreign countries, a senior White House official told CNN. Defense Secretary Pete Hegseth signed off on the review, which the official noted had been underway for months. It was not immediately clear if military support provided to other countries would be affected. White House Deputy Press Secretary Anna Kelly said the decision was made 'to put America's interests first.' The decision to halt some weapons transfers to Ukraine comes after President Volodymyr Zelensky pleaded with Western allies to bolster its aerial defenses after intensifying Russian airborne attacks. Russia has in recent weeks launched near-nightly air attacks on Ukraine, involving hundreds of drones and missiles. On Sunday, the Ukrainian military said a pilot was killed after his F-16 fighter jet crashed during a Russian aerial assault. Following the attack, Zelensky said on social media Ukraine is ready to buy 'American systems' to strengthen its air defenses. The US has been the biggest single donor of military aid to Ukraine since Russia launched its full-scale invasion in 2022, supplying Ukraine with air defense systems, drones, rocket launchers, radars, tanks and anti-armor weapons, leading to concerns over dwindling US stockpiles. But the balance of aid to Ukraine has changed significantly since Trump returned to power, casting doubt over the future of US support for Kyiv. In April, Europe surpassed the US in total military aid to Ukraine for the first time, with its contribution equaling 72 billion Euros ($84.9 billion), compared with the US's 65 billion Euros ($76.6 billion), according to data from the Kiel Institute for the World Economy, a German think tank that closely tracks wartime aid to Ukraine. The shift came after Trump halted all shipments of military aid to Ukraine following a heated Oval Office argument with Zelensky in March. Trump resumed aid flows to Ukraine about a week later. Last week, during the NATO summit in The Hague, US President Donald Trump suggested Kyiv may see future Patriot missile system deliveries from the US – signaling a possible shift in his thinking about US aid flows to Kyiv. The Patriots are widely considered among the best air defense systems, particularly in protecting against advanced hypersonic and ballistic missiles. Ukraine is known to have roughly half a dozen of the US-made Patriot air defense systems, which play a crucial role in its air defense, protecting millions of civilians from Russian missiles. But Kyiv is at risk of running out of missiles for these systems. — CNN
Hindustan Times
4 days ago
- Business
- Hindustan Times
China securing loans to low-income nations with revenue streams in Chinese banks
New Delhi: China is securing loans to low-income and developing nations with commodity revenue streams and cash held in restricted escrow accounts in Chinese banks, with such practices implemented for almost half of the total loans worth $991 billion, according to a new study. China significantly ramped up loans to developing countries in Asia, Africa and Latin America after launching its Belt and Road Initiative (BRI) in 2013. (Representational image) The study, done by the Kiel Institute for the World Economy, AidData and Georgetown University and Oxford University and released on Thursday, found such practices prevalent in some of India's neighbours, such as Myanmar, where the country's gas revenues are being deposited directly into restricted Chinese bank accounts. In the case of Pakistan, the country is required to simultaneously hold cash collateral in four Chinese escrow accounts. Figures are available for holdings in only one account, and the overall cash holdings in the four accounts are likely to be significantly larger, according to the study titled 'How China Collateralizes'. The partially government-guaranteed loan from Bank of China and China Eximbank for the 1,320-MW Patuakhali thermal power plant project in Bangladesh was supported by 50% equity stakes that Bangladesh's Rural Power Company Ltd and China's NORINCO International Cooperation Limited hold in a special purpose vehicle responsible for the venture. China significantly ramped up loans to developing countries in Asia, Africa and Latin America after launching its Belt and Road Initiative (BRI) in 2013, but there have been significant concerns about the opacity surrounding agreements covering both loans and projects taken up under BRI. In December 2017, Sri Lanka handed over the strategic port of Hambantota to China on a 99-year lease after struggling to pay debts to Chinese firms. India never signed on to BRI because a significant component - the China-Pakistan Economic Corridor (CPEC) - passes through Pakistan-occupied Kashmir. The Indian side also has concerns about the lack of a level playing field under BRI. The study said China's total public and publicly guaranteed lending to low-income and developing countries between 2000 and 2021 was worth $911 billion, and nearly half - or $418 billion provided to 57 countries - is secured with cash deposits in Chinese bank accounts. The study concluded China's practices are impeding the ability of borrowing countries to effectively manage their finances. Borrowing countries are forced to route incomes from their main commodity exports to Chinese bank accounts, the study said. 'Our findings reveal a previously undocumented pattern of revenue ring-fencing, where a significant share of commodity export receipts never reaches the exporting countries,' it said. 'Revenues routed overseas secure priority repayment for the creditor; they remain out of public sight and largely beyond the borrower's reach until the secured debts are repaid,' it added. More than 60% of collateralised public and publicly guaranteed loans by Chinese creditors to low-income and developing countries rely on collateral unrelated to the stated purpose of the debt, the study said. This means bank accounts securing Chinese infrastructure project loans are not typically funded from project revenues. Instead, most cash flows come from sales of the borrowing country's leading commodity export, such as gas in Myanmar and Indonesia, oil in Angola, and copper in Congo. A state-owned enterprise of the borrowing country typically agrees to sell commodities under an offtake agreement with a Chinese state enterprise, and both enterprises 'agree to deposit the proceeds directly into bank accounts that secure unrelated infrastructure finance', the study said. 'Chinese creditors and their debtors have taken extraordinary measures to shield the use of escrow accounts - and the cash deposits that they hold - from public scrutiny,' the study said. The deposits in Chinese bank accounts, which are controlled by the lending entities, can average more than 20% of annual payments made by low-income countries to service external debt, the study found. 'Some of these revenues remain offshore beyond the control of the borrowing government for many years,' it said, adding the lack of access or transparency compromises the ability of borrowing countries to monitor and manage their fiscal affairs. Another important feature of Chinese lenders using cash collateral pools is that they simultaneously act as security for multiple debts. Cross-collateralisation accounts for 46% of China's collateralized public and publicly guaranteed lending volume to low-income and developing countries and this 'can exacerbate debt distress and complicate a debt restructuring if multiple creditors have competing rights to the same assets', the study said. The study also found that a common source of collateral supports multiple loans from the same Chinese creditor, and this practice 'poses a different challenge: it can cede government control over assets or revenue streams to a single creditor for long periods of time, until all the underlying debts for all the financed projects or programs are repaid'. Such a process can take decades, the study said.
Time of India
7 days ago
- Business
- Time of India
China's collateral demands curbing emerging countries' ability to manage finances, study shows
China's practice of securing its loans to low-income nations through commodity revenue streams and cash held in restricted escrow accounts is curbing their ability to manage their finances effectively, a study published on Thursday showed. China has lent hundreds of billions of dollars for infrastructure and projects in developing countries, but has been criticised for using earnings of commodity exports from borrower nations as security for the loans, sometimes arranged during times of economic strife for the borrower. Beijing has repeatedly denied that its lending practices towards poorer countries are unscrupulous. China's finance ministry did not immediately respond to a request for comment. China's total public and publicly guaranteed lending to low and middle-income countries totals $911 billion, said the report by AidData, the Kiel Institute for the World Economy and Georgetown University, together with other partners. Of that, nearly half - or $418 billion across 57 countries - is secured with cash deposits in Chinese bank accounts, it said. Live Events "As security, Chinese lenders strongly prefer liquid assets - in particular, cash deposits in bank accounts located in China. They also want visibility and control over revenue," said Christoph Trebesch of the Kiel Institute. The deposits in accounts located in China and controlled by the lending entities can average more than a fifth of the annual payments low-income commodity-exporting countries make to service their external debt, the research found. "Some of these revenues remain offshore beyond the control of the borrowing government for many years," the report said, adding the lack of access or transparency compromises debtor governments' ability to monitor and steer their fiscal affairs. China applies the practice to its lending to borrowers in Africa, Asia, Latin America and the Middle East, the study, which covered 2000-2021, found. "Our research reveals a previously undocumented pattern of revenue ring-fencing where a significant share of commodity export receipts never reach the exporting countries," said Brad Parks, executive director of the AidData research lab. The International Monetary Fund and the World Bank have in the past raised concerns about the impact of collateralised lending to developing countries. The practice has the potential to cause debt distress to the borrowers, the two institutions said in a joint paper published in 2023, by constraining their fiscal space, increasing the risk of over-borrowing, and curbing the financing from unsecured creditors available to them. In cases where countries have had to restructure their external debts due to distress, China's practice of securing infrastructure loans using unrelated commodity revenue flows has complicated the restructuring, the report said.
Business Times
25-06-2025
- Business
- Business Times
China's collateral demands curbing emerging countries' ability to manage finances: study
[NAIROBI] China's practice of securing its loans to low-income nations through commodity revenue streams and cash held in restricted escrow accounts is curbing their ability to manage their finances effectively, a study published on Thursday showed. China has lent hundreds of billions of dollars for infrastructure and projects in developing countries, but has been criticised for using earnings of commodity exports from borrower nations as security for the loans, sometimes arranged during times of economic strife for the borrower. China's government has repeatedly denied that its lending practices towards poorer countries are unscrupulous. China's total public and publicly guaranteed lending to low and middle-income countries totals US$911 billion, said the report by AidData, the Kiel Institute for the World Economy and Georgetown University, together with other partners. Of that, nearly half - or US$418 billion across 57 countries - is secured with cash deposits in Chinese bank accounts, it said. 'As security, Chinese lenders strongly prefer liquid assets - in particular, cash deposits in bank accounts located in China. They also want visibility and control over revenue,' said Christoph Trebesch of the Kiel Institute. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The deposits in accounts located in China and controlled by the lending entities can average more than a fifth of the annual payments low-income commodity-exporting countries make to service their external debt, the research found. 'Some of these revenues remain offshore beyond the control of the borrowing government for many years,' the report said, adding the lack of access or transparency compromises debtor governments' ability to monitor and steer their fiscal affairs. China applies the practice to its lending to borrowers in Africa, Asia, Latin America and the Middle East, the study, which covered 2000-2021, found. 'Our research reveals a previously undocumented pattern of revenue ring-fencing where a significant share of commodity export receipts never reach the exporting countries,' said Brad Parks, executive director of the AidData research lab. The International Monetary Fund and the World Bank have in the past raised concerns about the impact of collateralised lending to developing countries. The practice has the potential to cause debt distress to the borrowers, the two institutions said in a joint paper published in 2023, by constraining their fiscal space, increasing the risk of over-borrowing, and curbing the financing from unsecured creditors available to them. In cases where countries have had to restructure their external debts due to distress, China's practice of securing infrastructure loans using unrelated commodity revenue flows has complicated the restructuring, the report said. REUTERS
