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Ukraine uncovers massive ‘corruption scheme' in defence sector, makes arrests
Ukrainian authorities said Saturday that they had arrested several politicians in connection with a 'large-scale corruption scheme' in the defence sector, shortly after an uproar over the independence of anti-graft bodies.
A law passed at the end of July stripped the National Anti-Corruption Agency (NABU) and the Specialised Anti-Corruption Prosecutor's Office (SAP) of their independence and placed them under the supervision of the Prosecutor General, himself appointed by the head of state.
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President Volodymyr Zelenskyy on Thursday backtracked and restored the bodies' independence following an outcry from the country's allies and the first anti-government street demonstrations since the Russian invasion in 2022.
The NABU said on Saturday that it and the SAP had exposed 'a scheme for the systematic misappropriation of budget funds allocated by local authorities for the needs of the defence forces, as well as the receipt and provision of unlawful benefits on an especially large scale'.
It said the scheme involved inflating prices for electronic warfare and drone equipment, and then funnelling off 30 percent of the contract amounts.
The suspects include a member of parliament, heads of district and city administrations, members of the National Guard, and executives at defence companies.
The NABU said it has made four arrests so far but did not identify those detained.
The interior ministry said it had suspended the suspected members of the National Guard.
Zelenskyy said in a statement: 'I am grateful to the anti-corruption agencies for their work.
'It is important that anti-corruption institutions operate independently, and the law passed on Thursday guarantees them all the tools necessary for a real fight against corruption.'
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The president initially said he needed to bring the NABU and the SAP under his control because they were inefficient and under 'Russian influence'. But he did an about-face when confronted with the outcry – first serious political crisis since he took office six years ago.
Several cases of corruption – an endemic problem in the country – have been exposed within the armed forces and the defence ministry during the war with Russia.
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Business Standard
9 minutes ago
- Business Standard
China pushes back at US demands to stop buying Russian, Iranian oil
US and Chinese officials may be able to settle many of their differences to reach a trade deal and avert punishing tariffs, but they remain far apart on one issue: the US demand that China stop purchasing oil from Iran and Russia. "China will always ensure its energy supply in ways that serve our national interests," China's Foreign Ministry posted on X on Wednesday, following two days of trade negotiations in Stockholm, responding to the US threat of a 100 per cent tariff. "Coercion and pressuring will not achieve anything. China will firmly defend its sovereignty, security and development interests," the ministry said. The response is notable at a time when both Beijing and Washington are signalling optimism and goodwill about reaching a deal to keep commercial ties between the world's two largest economies stable -- after climbing down from sky-high tariffs and harsh trade restrictions. It underscores China's confidence in playing hardball when dealing with the Trump administration, especially when trade is linked to its energy and foreign policies. US Treasury Secretary Scott Bessent, emerging from the talks, told reporters that when it comes to Russian oil purchases, the "Chinese take their sovereignty very seriously". "We do not want to impede on their sovereignty, so they would like to pay a 100 per cent tariff," Bessent said. On Thursday, he called the Chinese tough negotiators, but said China's pushback has not stalled the negotiations. "I believe that we have the makings of a deal," Bessent told CNBC. Gabriel Wildau, managing director of the consultancy Teneo, said he doubts President Donald Trump would actually deploy the 100 per cent tariff. "Realising those threats would derail all the recent progress and probably kill any chance" for Trump and Chinese President Xi Jinping to announce a trade deal if they should meet this fall, Wildau said. In seeking to restrict oil sales by Russia and Iran, a major source of revenue for both countries, the US wants to reduce the funding available for their militaries, as Moscow pursues its war against Ukraine and Tehran funds militant groups across the Middle East. China plays hardball When Trump unveiled a sweeping plan for tariffs on dozens of countries in April, China was the only country that retaliated. It refused to give in to US pressure. "If the US is bent on imposing tariffs, China will fight to the end, and this is China's consistent official stance," said Tu Xinquan, director of the China Institute for WTO Studies at the University of International Business and Economics in Beijing. WTO is the acronym for the World Trade Organization. Negotiating tactics aside, China may also suspect that the US will not follow through on its threat, questioning the importance Trump places on countering Russia, Tu said. Scott Kennedy, senior adviser and trustee chair in Chinese Business and Economics at the Centre for Strategic and International Studies in Washington, said Beijing is unlikely to change its posture when it sees inconsistencies in US foreign policy goals toward Russia and Iran, whereas Beijing's policy support for Moscow is consistent and clear. It is also possible that Beijing may want to use it as another negotiating tool to extract more concessions from Trump, Kennedy said. Danny Russel, a distinguished fellow at the Asia Society Policy Institute, said Beijing now sees itself as "the one holding the cards in its struggle with Washington". He said Trump has made it clear he wants a "headline-grabbing deal" with Xi, "so rejecting a US demand to stop buying oil from Iran or Russia is probably not seen as a deal-breaker, even if it generates friction and a delay". Continuing to buy oil from Russia preserves Xi's "strategic solidarity" with Russian President Vladimir Putin and significantly reduces the economic costs for China, Russel said. "Beijing simply cannot afford to walk away from the oil from Russia and Iran," he said. "It is too important a strategic energy supply, and Beijing is buying it at fire-sale prices." China depends on oil from Russia and Iran A 2024 report by the US Energy Information Administration estimates that roughly 80 per cent to 90 per cent of the oil exported by Iran went to China. The Chinese economy benefits from the more than one million (10 lakh) barrels of Iranian oil it imports per day. After the Iranian parliament floated a plan to shut down the Strait of Hormuz in June following US strikes on Iran's nuclear facilities, China spoke out against closing the critical oil transit route. China also is an important customer for Russia, but is second to India in buying Russian seaborne crude oil exports. In April, Chinese imports of Russian oil rose 20 per cent over the previous month to more than 1.3 million (13 lakh) barrels per day, according to the KSE Institute, an analytical centre at the Kyiv School of Economics. This past week, Trump said the US will impose a 25 per cent tariff on goods from India, plus an additional import tax because of India's purchasing of Russian oil. India's Foreign Ministry said on Friday its relationship with Russia was "steady and time-tested". Stephen Miller, White House deputy chief of staff and a top policy adviser, said Trump has been clear that it is "not acceptable" for India to continue financing the Ukraine war by purchasing oil from Russia. "People will be shocked to learn that India is basically tied with China in purchasing Russian oil," Miller said on Fox News Channel's "Sunday Morning Futures". He said the US needs "to get real about dealing with the financing of this war". (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Economic Times
9 minutes ago
- Economic Times
PM Modi defiant as Trump steps up pressure on India's Russia oil purchases
Prime Minister Narendra Modi struck a defiant tone in the face of US President Donald Trump's tariff threats, urging the nation to buy local goods as his administration signaled it would continue buying Russian government hasn't given India's oil refiners instructions to stop buying Russian oil, and no decision has been taken on whether to halt the purchases, people familiar with the situation told Bloomberg, asking not to be named due to the sensitivity of the matter. Both state-run and private refiners are allowed to buy from preferred sources, and crude purchases remain a commercial decision, several of the people the weekend, Modi underscored the importance of shielding India's economic interests during uncertain global conditions. The comments came just days after the Trump administration imposed a 25% tariff on Indian exports to the US. The White House is also threatening more action if India continues Russian oil purchases. 'The world economy is going through many apprehensions — there is an atmosphere of instability,' Modi said at a rally in the northern state of Uttar Pradesh on Saturday. 'Now, whatever we buy, there should be only one scale: we will buy those things which have been made by the sweat of an Indian.' India has become one of Trump's top targets as he looks to pressure Russian President Vladimir Putin to end his war in Ukraine. The US president lashed out at India last week, criticizing it for joining the BRICS grouping of developing countries and maintaining close ties with Russia, saying 'they can take their dead economies down together.' The rebuke marked a stunning shift in tone for the US, which for years had overlooked India's close historical ties with Russia as it courted the nation as a counterweight in Asia to China. Now, Trump appears willing to undo that strategy to gain leverage against Putin, who has resisted the US president's efforts to end the fighting in Ukraine. Stephen Miller, Trump's deputy chief of staff, on Sunday accused India of imposing 'massive' tariffs on American goods and 'cheating' the US immigration system in addition to purchasing about as much Russian oil as China. 'President Trump, he wants a tremendous relationship and has had always a tremendous relationship with India and the prime minister,' Miller said. 'But we need to get real about dealing with the financing of this war.''So, President Trump, all options are on the table to deal diplomatically, financially and otherwise with the ongoing war in Ukraine, so we can achieve peace,' Miller last week told reporters he 'heard' India would no longer be buying oil from Russia, calling it 'a good step.' Bloomberg reported last week that refiners were told to come up with plans for buying non-Russian crude, but one of the people said the instruction amounted to scenario planning in case Russian crude were to become New York Times reported Saturday that India would keep buying Russian crude despite a threat of penalties from Trump, citing two senior Indian officials it didn't identify. An Oil Ministry spokesperson didn't reply to messages from Bloomberg seeking comment outside of regular business refiners have been singled out by the European Union and the US for supporting Moscow during its war in Ukraine with the oil purchases. It has become the world's biggest buyer of Russian seaborne exports of crude, soaking up discounted barrels and ramping up its purchases from almost zero to about one-third of its China is the primary economic and diplomatic backer of Russia, Trump's leverage against the world's second-biggest economy is limited due to Beijing's control of rare-earth magnets the US needs to make high-tech goods. The US and China have held talks in recent months aimed at stabilizing the relationship after they both hiked tariffs on each other's goods well beyond 100% earlier this year. India has defended its ties with Russia, one of its biggest suppliers of weapons dating back to the Cold War. The two nations have a 'steady and time-tested partnership,' Indian Foreign Ministry spokesperson Randhir Jaiswal told reporters on Friday. 'Our bilateral relationships with various countries stand on their own merit and should not be seen from the prism of a third country,' Jaiswal said. Asked about ties with the US, he added that he's 'confident that the relationship will continue to move forward.'India expects US trade negotiators to visit the country toward the end of the month to continue talks on a bilateral deal, an official in New Delhi said Friday. The nation will hold its ground and won't give the US access to its dairy and agriculture sectors, the official said, citing political and religious sensitivities. Modi's renewed emphasis on domestic manufacturing and consumption echoes his long-standing 'Make in India' initiative. However, the message has taken on new urgency after the US tariffs.'The interests of our farmers, our small industries and the employment of our youth are of paramount importance,' Modi told the rally on Saturday.
Economic Times
9 minutes ago
- Economic Times
China pushes back at US demands to stop buying Russian and Iranian oil
AP China pushes back at US demands to stop buying Russian and Iranian oil U.S. and Chinese officials may be able to settle many of their differences to reach a trade deal and avert punishing tariffs, but they remain far apart on one issue: the U.S. demand that China stop purchasing oil from Iran and Russia. "China will always ensure its energy supply in ways that serve our national interests," China's Foreign Ministry posted on X on Wednesday following two days of trade negotiations in Stockholm, responding to the U.S. threat of a 100% tariff. "Coercion and pressuring will not achieve anything. China will firmly defend its sovereignty, security and development interests," the ministry said. The response is notable at a time when both Beijing and Washington are signaling optimism and goodwill about reaching a deal to keep commercial ties between the world's two largest economies stable - after climbing down from sky-high tariffs and harsh trade restrictions. It underscores China's confidence in playing hardball when dealing with the Trump administration, especially when trade is linked to its energy and foreign policies. U.S. Treasury Secretary Scott Bessent, emerging from the talks, told reporters that when it comes to Russian oil purchases, the "Chinese take their sovereignty very seriously." "We don't want to impede on their sovereignty, so they would like to pay a 100% tariff," Bessent said. On Thursday, he called the Chinese "tough" negotiators, but said China's pushback hasn't stalled the negotiations. "I believe that we have the makings of a deal," Bessent told CNBC. Gabriel Wildau, managing director of the consultancy Teneo, said he doubts President Donald Trump would actually deploy the 100% tariff. "Realizing those threats would derail all the recent progress and probably kill any chance" for Trump and Chinese President Xi Jinping to announce a trade deal if they should meet this fall, Wildau said. In seeking to restrict oil sales by Russia and Iran, a major source of revenue for both countries, the U.S. wants to reduce the funding available for their militaries, as Moscow pursues its war against Ukraine and Tehran funds militant groups across the Middle East. China plays hardball When Trump unveiled a sweeping plan for tariffs on dozens of countries in April, China was the only country that retaliated. It refused to give in to U.S. pressure. "If the U.S. is bent on imposing tariffs, China will fight to the end, and this is China's consistent official stance," said Tu Xinquan, director of the China Institute for WTO Studies at the University of International Business and Economics in Beijing. WTO is the acronym for the World Trade Organization. Negotiating tactics aside, China may also suspect that the U.S. won't follow through on its threat, questioning the importance Trump places on countering Russia, Tu said. Scott Kennedy, senior adviser and trustee chair in Chinese Business and Economics at the Center for Strategic and International Studies in Washington, said Beijing is unlikely to change its posture when it sees inconsistencies in U.S. foreign policy goals toward Russia and Iran, whereas Beijing's policy support for Moscow is consistent and clear. It's also possible that Beijing may want to use it as another negotiating tool to extract more concessions from Trump, Kennedy said. Danny Russel, a distinguished fellow at the Asia Society Policy Institute, said Beijing now sees itself as "the one holding the cards in its struggle with Washington." He said Trump has made it clear he wants a "headline-grabbing deal" with Xi, "so rejecting a U.S. demand to stop buying oil from Iran or Russia is probably not seen as a deal‑breaker, even if it generates friction and a delay." Continuing to buy oil from Russia preserves Xi's "strategic solidarity" with Russian President Vladimir Putin and significantly reduces the economic costs for China, Russel said. "Beijing simply can't afford to walk away from the oil from Russia and Iran," he said. "It's too important a strategic energy supply, and Beijing is buying it at fire‑sale prices." China depends on oil from Russia and Iran A 2024 report by the U.S. Energy Information Administration estimates that roughly 80% to 90% of the oil exported by Iran went to China. The Chinese economy benefits from the more than 1 million barrels of Iranian oil it imports per day. After the Iranian parliament floated a plan to shut down the Strait of Hormuz in June following U.S. strikes on Iran's nuclear facilities, China spoke out against closing the critical oil transit route. China also is an important customer for Russia, but is second to India in buying Russian seaborne crude oil exports. In April, Chinese imports of Russian oil rose 20% over the previous month to more than 1.3 million barrels per day, according to the KSE Institute, an analytical center at the Kyiv School of Economics. This past week, Trump said the U.S. will impose a 25% tariff on goods from India, plus an additional import tax because of India's purchasing of Russian oil. India's Foreign Ministry said Friday its relationship with Russia was "steady and time-tested." Stephen Miller, White House deputy chief of staff and a top policy adviser, said Trump has been clear that it is "not acceptable" for India to continue financing the Ukraine war by purchasing oil from Russia. "People will be shocked to learn that India is basically tied with China in purchasing Russian oil," Miller said on Fox News Channel's "Sunday Morning Futures." He said the U.S. needs "to get real about dealing with the financing of this war." Congress demands action Sen. Lindsey Graham, a Republican from South Carolina, is pushing for sanctions and tariffs on Russia and its financial backers. In April, he introduced a bill that would authorize the president to impose tariffs as high as 500% not only on Russia but on any country that "knowingly" buys oil, uranium, natural gas, petroleum products or petrochemical products from Russia. "The purpose of this legislation is to break the cycle of China - a communist dictatorship - buying oil below market price from Putin's Russia, which empowers his war machine to kill innocent Ukrainian civilians," Graham said in a June statement. The bill has 84 co-sponsors in the 100-seat Senate. A corresponding House version has been introduced, also with bipartisan support. Republicans say they stand ready to move on the sanctions legislation if Trump asks them to do so, but the bill is on hold for now.
