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US points finger at Russia over gas pipeline

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The US has said it “seems” Russia is to blame for this week’s leaks in the Nord Stream gas pipelines.

US Energy Secretary Jennifer Granholm told the BBC an investigation was being carried out into the cause of what she called “an act of sabotage”.

“It is highly unlikely that these incidents are coincidence,” she said, without offering evidence to support the claim.

Russia has dismissed suggestions that it was to blame.

It said suggestions it had damaged the pipelines were “stupid and absurd”.

President Putin described the damage as “unprecedented sabotage, in fact, an act of international terrorism” during a phone call with Turkey’s President Erdogan, according to the Kremlin, which added Russia plans to bring it up for “urgent discussion” at the UN Security Council.

Earlier Russia’s Foreign Ministry suggest it was the US that stood to benefit from the pipeline being out of action because it would be able to increase its own natural gas sales.

The White House has dismissed such suggestions.

“It’s probably most likely some form of sabotage,” according to Mike Fulwood of the Oxford Institute for Energy Studies.

“If there was one incident of a pipeline rupture of leak then accidental damage could be a possibility, it is very rare.

“The most likely cause of accidental damage is an anchor being dropped and dragging across the pipeline”.

He added that with multiple leaks in a short period of time “doesn’t sound like it could be accidental, although theoretically it could be”.

The high water pressure at the bottom of sea makes a detonation difficult, according to energy engineering expert Professor Russell Johns of Penn State University.

He says “it is not likely that the Russians detonated their own pipeline. They could have simply cut-off gas to the pipeline entrance” if they wanted to stop supplies.

The money Russia continues to receive for its fossil fuels is helping fund its invasion of Ukraine.

“Unreliable energy partner”

The gas escaping from the pipeline near the Danish island of Bornholm has been in the pipe since the beginning of September when Moscow closed it off, saying repairs were needed to a vital artery in supplying Europe’s energy needs.

Ms Granholm suggested the energy relationship between Russia and Europe was being consigned to history.

“I think Russia has proven itself to be an unreliable energy partner,” she said.

“No country wants to take the risk of putting a significant amount of its energy demand to Russia’s supply. I think this accelerates the EU’s push to become energy independent through clean energy”.

Map showing the route of the Nord Stream pipelines between Russia and Germany as well as the borders of the economic zones in the Baltic sea.

The war in Ukraine has had a profound impact in pushing up global energy prices. They’ve been the biggest contributor to soaring inflation in the UK, Eurozone and US, something which is threatening to reduce global economic growth.

The increasing cost of living has made political leaders around the world re-evaluate where they get their energy from, according to Ms Granholm, who was speaking from the International Atomic Energy Agency’s Ministerial Conference in Vienna.

“Every country is looking at the risks associated with putting too many eggs in one basket or putting too many eggs in the basket of petro-dictators and the volatility of the fossil fuels that accrue from that. Everyone is looking to how they can become energy independent.”

Wind, solar and nuclear energy are among the alternatives many countries are trying to increase as they also aim to meet the Paris climate change targets.

However an analysis by Columbia University suggests that Russia has a 46% share of global enrichment capacity for nuclear fuel, and the International Energy Agency warned in July that China has an 80% share “in all the key manufacturing stages of solar panels”.

When asked how the US and others don’t end up overly reliant on such alternatives Ms Granholm replied that “this move to clean energy could be part of a great peace plan” and that such a move “helps people’s pocketbooks, helps the economy, and helps energy security”.

landfall facilities of the "Nord Stream 1" gas pipeline in Lubmin, Germany
Europe is looking for alternatives to become less reliant on Russian gas for its energy needs

Petrol price cuts

This year’s steep increases in the price of oil and gas have benefitted the energy giants who get them to consumers. In the first half of this year the combined profit of five of the biggest western energy firms, BP, Shell, Total, Chevron and Exxon almost tripled to just over $95.2bn with much of it going to shareholders.

Ms Granholm said President Biden’s administration wanted to see such companies lower prices at petrol pumps “so that citizens are not hurting”.

Despite acknowledging that oil is traded on a free market she called on them to help, “at least the American companies as good American citizens” and warned they could face a windfall tax similar to what has been seen in the UK.

“We don’t want that huge amount of profit to end up triggering consequences, either Congressionally or elsewhere, that will not be in their interest.

“We want them to be responsible and not be buying back shares instead of increasing production, production that would ultimately reduce prices because of increasing supply. We are looking at legislative tools as well as otherwise pressuring them.”

fuel prices at a petrol station in Bonn, Germany
The war in Ukraine has led higher fuel prices for consumers and boost oil company profits

One other way the US could help increase the supply of oil to global markets is by lifting some of the sanctions imposed on Venezuela by President Trump.

The South American country has the world’s largest oil reserves but has been exporting minimal amounts of oil because of the restrictions. They were enacted because of alleged corruption and the political fallout from 2019’s contested election.

An increase in supplies would be likely to push down global oil prices. When asked if it was time to lift the sanctions, Ms Granholm didn’t dismiss the idea, replying: “I’m not going to get ahead of the White House on that.”

Reports /TrainViral/

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Six tonnes of cocaine found in banana shipment

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Sniffer dogs in Ecuador have found 6.23 tonnes of cocaine hidden in a banana shipment, police say.

The dogs alerted their handlers, who seized 5,630 parcels filled with a white substance that later tested positive for cocaine.

The shipment was destined for Germany, officials said, and would have been worth $224m (£173m) had it reached its destination.

Five people had been arrested following the discovery, according to the prosecutor-general’s office.

Police said they had found the massive cocaine haul during a routine inspection of container stored at Posorja deepwater port south-west of Ecuador’s largest city, Guayaquil.

The cocaine parcels had been hidden beneath crates of bananas destined for export.

One of those arrested in connection to the drug discovery was a representative of the export company responsible for the shipment, whom prosecutors said had been present at the inspection and gave officials the names of the four other suspects.

They include the managers of the banana plantation where the cocaine is suspected to have been added to the fruit shipment, as well as the driver who took the container to the port.

Ecuador has become a major transit country for cocaine produced in neighbouring Peru and Colombia, with transnational criminal gangs using Ecuador’s ports to ship the drug to Europe and the US.

Last year, Ecuadorean security forces seized more than 200 tonnes of drugs, most of it cocaine. Only the US and Colombia seized more drugs in 2023.

Gangs have caused a wave of violent crime in Ecuador, leading President Daniel Noboa to declare a state of emergency and deploy tens of thousands of police officers and soldiers in an effort to combat them.

These security forces have stopped large amounts of cocaine from being shipped to Europe.

In January, officers found the largest stash ever to be seized in Ecuador – 22 tonnes of cocaine – buried in a pig farm.

However, extortion, kidnappings and murders remain high in the Andean country.

Reports /Trainviral/

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Thailand expands v-free entry to 93 countries

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Thailand has expanded its visa-free entry scheme to 93 countries and territories as it seeks to revitalize its tourism industry.

Visitors can stay in the South-East Asian nation for up to 60 days under the new scheme that took effect on Monday,

Previously, passport holders from 57 countries were allowed to enter without a visa.

Tourism is a key pillar of the Thai economy, but it has not fully recovered from the pandemic.

Thailand recorded 17.5 million foreign tourists arrivals in the first six months of 2024, up 35% from the same period last year, according to official data. However, the numbers pale in comparison to pre-pandemic levels.

Most of the visitors were from China, Malaysia and India.

Tourism revenue during the same period came in at 858 billion baht ($23.6bn; £18.3bn), less than a quarter of the government’s target.

Millions of tourists flock to Thailand every year for its golden temples, white sand beaches, picturesque mountains and vibrant night life.

The revised visa-free rules are part of a broader plan to boost tourism.

Also on Monday, Thailand introduced a new five-year visa for remote workers, that allows holders to stay for up to 180 days each year.

The country will also allow visiting students, who earn a bachelor’s degree or higher in Thailand, to stay for one year after graduation to find a job or travel.

In June, authorities announced an extension of a waiver on hoteliers’ operating fees for two more years. They also scrapped a proposed tourism fee for visitors flying into the country.

However some stakeholders are concerned that the country’s infrastructure may not be able to keep up with travellers’ demands.

“If more people are coming, it means the country as a whole… has to prepare our resources to welcome them,” said Kantapong Thananuangroj, president of the Thai Tourism Promotion Association.

“If not, [the tourists] may not be impressed with the experience they have in Thailand and we may not get a second chance,” he said.

Chamnan Srisawat, president of the Tourism Council of Thailand, said he foresees a “bottleneck in air traffic as the incoming flights may not increase in time to catch up with the demands of the travellers”.

Some people have also raised safety concerns after rumours that tourists have been kidnapped and sent across the border to work in scam centres in Myanmar or Cambodia.

fatal shooting in Bangkok’s most famous shopping mall last year has also caused concern among visitors.

Reports /Trainviral/

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Royal Mail will deliver letters forever

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The prospective new owner of Royal Mail has said he will not walk away from the requirement to deliver letters throughout the UK six days a week, as long as he is running the service.

“As long as I’m alive, I completely exclude this,” Czech billionaire Daniel Kretinsky told the BBC.

Mr Kretinsky has had a £3.6bn offer for Royal Mail accepted by its board.

Shareholders are expected to approve the deal in the coming months, but the government also has a say over whether it goes ahead.

Currently the Universal Service Obligation (USO) requires Royal Mail to deliver letters six days a week throughout the country for the same price. But questions have been raised over whether the service could be reduced in the future.

In an exclusive interview with the BBC, Mr Kretinsky also said he would be willing to share profits with employees, if given the go-ahead to buy the group.

However, he appeared to reject the idea of employees having a stake in Royal Mail, which unions have called for in exchange for their support.

The Royal Mail board agreed a £3.6bn takeover offer from Mr Kretinsky in May for the 500-year-old organisation, which employs more than 150,000 people. Including assumed debts, the offer is worth £5bn.

But because Royal Mail is a nationally important company, the government has the power to scrutinise and potentially block the deal.

As well as keeping the new government on side, Mr Kretinsky also faces the task of convincing postal unions that the proposed deal will benefit employees.

The USO is a potential sticking point for both the government and unions.

Royal Mail is required by law to deliver letters six days a week and parcels five days a week to every address in the UK for a fixed price.

How well this has actually been working in practice is a different matter. Ten years ago, 92% of first class post arrived on time. By the end of last year it was down to 74%, according to the regulator Ofcom.

Last year the regulator fined Royal Mail £5.6m for failing to meet its delivery targets.

Royal Mail has been pushing for this obligation to be watered down. It wants to cut second class letter deliveries to every other weekday, saying this will save £300m, and lead to “fewer than 1,000” voluntary redundancies.

‘Unconditional commitment’

Mr Kretinsky has committed in writing to honouring the USO, but only for five years.

And after that, in theory, the new owners could just walk away from it.

However, Mr Kretinsky told the BBC: “As long as I’m alive, I completely exclude this, and I’m sure that anybody that would be my successor would absolutely understand this.

“I say this as an absolutely clear, unconditional commitment: Royal Mail is going to be the provider of Universal Service Obligation in the UK, I would say forever, as long as the service is going to be needed, and as long as we are going to be around.”

Mr Kretinsky added that the written five-year commitment was “the longest commitment that has ever been offered in a situation like this”.

Woman's hand posting a letter into a red post box

Another potential stumbling block for the deal, however, is how the company will be structured.

Unions would like to see the company renationalised, but Dave Ward, general secretary of the Communication Workers Union (CWU), told the BBC that would be “difficult in the current political and economic environment”.

Instead, what the CWU is pushing for is “a different model of ownership” – that is, where the employees part-own the business.

To get its support for the takeover, the union wants employees to share ownership of the company, along with other concessions including board representation for workers.

It says profit sharing is “not going to be enough to deliver our support and the support of the workforce”.

If the union doesn’t get what it wants, it won’t rule out industrial action, Mr Ward said. Its members went on strike in 2022 and 2023.

Although Mr Kretinsky said he is “very open” to profit sharing, he is not in favour of shared ownership.

“I don’t think the ownership stake is the right model,” he said. “The logic is: share of profit, yes, [but an] ownership structure creates a lot of complexity.

“For instance, what happens if the employee leaves? He has shares, he is leaving, he is not working for the company, he [still] needs remunerating.”

Mr Kretinsky said he didn’t want to create “some anonymous structure” but instead “remunerate the people who are working for the company, and creating value for the company”.

The union is also concerned about job losses and changes to the terms and conditions of postal workers’ contracts.

Mr Kretinsky has guaranteed no compulsory redundancies or changes in terms and conditions but only until 2025.

“If we are more successful, and we have more parcels to be delivered, we need not less people, but we need more people,” he said. “So really, job cuts are not part of our plan at all.”

He said if the management, union and employees work together, “we will be successful”.

Another concern is the potential break-up of the business.

The profit for Royal Mail’s parent company last year was entirely generated by its German and Canadian logistics and parcels business, GLS. Royal Mail itself made a loss.

Mr Kretinsky has promised not to split off GLS or load the parent company with excessive debt, although borrowings will rise if the deal goes through.

But he has a way to go to convince the CWU.

“I can’t think of any other country in the world that would just just hand over its entire postal service to an overseas equity investor,” Mr Ward of the CWU said.

However, Mr Kretinsky said that the postal unions “do understand that we are on the same ship, and that we need this ship to be successful, and that if we are there, we don’t have any real problems to deal with, because the sky is blue, and it’s blue for everybody.”

The union cannot stop this deal but the government can block it under the National Security and Investment Act.

Business Secretary Jonathan Reynolds has said he will scrutinise the assurances and guarantees given and called on Mr Kretinsky to work constructively with the unions.

Mr Kretinsky may say that he and the unions are ultimately on the same ship but, as things stand, they are not on the same page.

Who is Daniel Kretinsky?

Daniel Kretinsky started his career as a lawyer in his hometown of Brno, before moving to Prague.

He then made serious money in Central and Eastern European energy interests.

This includes Eustream, which transports Russian gas via pipelines that run through Ukraine, the Czech Republic and Slovakia.

He then diversified into other investments, including an almost 10% stake in UK supermarket chain Sainsbury’s and a 27% share in Premier League club West Ham United.

The Czech businessman is worth about £6bn, according to reports.

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