Tag: Services

  • Inside the deal: How Boris Johnson’s departure paved the way for a grand Brexit bargain

    Inside the deal: How Boris Johnson’s departure paved the way for a grand Brexit bargain

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    LONDON — It was clear when Boris Johnson was forced from Downing Street that British politics had changed forever.

    But few could have predicted that less than six months later, all angry talk of a cross-Channel trade war would be a distant memory, with Britain and the EU striking a remarkable compromise deal over post-Brexit trade rules in Northern Ireland.

    Private conversations with more than a dozen U.K. and EU officials, politicians and diplomats reveal how the Brexit world changed completely after Johnson’s departure — and how an “unholy trinity” of little-known civil servants, ensconced in a gloomy basement in Brussels, would mastermind a seismic shift in Britain’s relationship with the Continent.

    They were aided by an unlikely sequence of political events in Westminster — not least an improbable change of mood under the combative Liz Truss; and then the jaw-dropping rise to power of the ultra-pragmatic Rishi Sunak. Even the amiable figure of U.K. Foreign Secretary James Cleverly would play his part, glad-handing his way around Europe and smoothing over cracks that had grown ever-wider since 2016.

    As Sunak’s Conservative MPs pore over the detail of his historic agreement with Brussels — and await the all-important verdict of the Democratic Unionist Party of Northern Ireland — POLITICO has reconstructed the dramatic six-month shift in Britain’s approach that brought us to the brink of the Brexit deal we see today.

    Bye-bye Boris

    Johnson’s departure from Downing Street, on September 6, triggered an immediate mood shift in London toward the EU — and some much-needed optimism within the bloc about future cross-Channel relations.

    For key figures in EU capitals, Johnson would always be the untrustworthy figure who signed the protocol agreement only to disown it months afterward.

    In Paris, relations were especially poisonous, amid reports of Johnson calling the French “turds”; endless spats with the Elysée over post-Brexit fishing rights, sausages and cross-Channel migrants; and Britain’s role in the AUKUS security partnership, which meant the loss of a multi-billion submarine contract for France. Paris’ willingness to engage with Johnson was limited in the extreme.

    Truss, despite her own verbal spats with French President Emmanuel Macron — and her famously direct approach to diplomacy — was viewed in a different light. Her success at building close rapport with negotiating partners had worked for her as trade secretary, and once she became prime minister, she wanted to move beyond bilateral squabbles and focus on global challenges, including migration, energy and the war in Ukraine.

    “Boris had become ‘Mr. Brexit,’” one former U.K. government adviser said. “He was the one the EU associated with the protocol, and obviously [Truss] didn’t come with the same baggage. She had covered the brief, but she didn’t have the same history. As prime minister, Liz wanted to use her personal relationships to move things on — but that wasn’t the same as a shift in the underlying substance.”

    Indeed, Truss was still clear on the need to pass the controversial Northern Ireland Protocol Bill, which would have given U.K. ministers powers to overrule part of the protocol unilaterally, in order to ensure leverage in the talks with the European Commission.

    Truss also triggered formal dispute proceedings against Brussels for blocking Britain’s access to the EU’s Horizon Europe research program. And her government maintained Johnson’s refusal to implement checks on goods entering Northern Ireland from Great Britain, causing deep irritation in Brussels.

    But despite the noisy backdrop, tentative contact with Brussels quietly resumed in September, with officials on both sides trying to rebuild trust. Truss, however, soon became “very disillusioned by the lack of pragmatism from the EU,” one of her former aides said.

    “The negotiations were always about political will, not technical substance — and for whatever reason, the political will to compromise from the Commission was never there when Liz, [ex-negotiator David] Frost, Boris were leading things,” they said.

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    Former British Prime Minister Liz Truss announces her resignation outside 10 Downing Street in central London on October 20, 2022 | Daniel Leal/AFP via Getty Images

    Truss, of course, would not be leading things for long. An extraordinary meltdown of the financial markets precipitated her own resignation in late October, after just six weeks in office. Political instability in Westminster once again threatened to derail progress.

    But Sunak’s arrival in No. 10 Downing Street — amid warnings of a looming U.K. recession — gave new impetus to the talks. An EU official said the mood music improved further, and that discussions with London became “much more constructive” as a result.

    David Lidington, a former deputy to ex-PM Theresa May who played a key role in previous Brexit negotiations, describes Sunak as a “globalist” rather than an “ultra-nationalist,” who believes Britain ought to have “a sensible, friendly and grown-up relationship” with Brussels outside the EU.

    During his time as chancellor, Sunak was seen as a moderating influence on his fellow Brexiteer Cabinet colleagues, several of whom seemed happy to rush gung-ho toward a trade war with the EU.

    “Rishi has always thought of the protocol row as a nuisance, an issue he wanted to get dealt with,” the former government adviser first quoted said.

    One British official suggested the new prime minister’s reputation for pragmatism gave the U.K. negotiating team “an opportunity to start again.”

    Sunak’s slow decision-making and painstaking attention to detail — the subject of much criticism in Whitehall — proved useful in calming EU jitters about the new regime, they added.

    “When he came in, it wasn’t just the calming down of the markets. It was everyone across Europe and in the U.S. thinking ‘OK, they’re done going through their crazy stage,’” the same official said. “It’s the time he takes with everything, the general steadiness.”

    EU leaders “have watched him closely, they listened to what he said, and they have been prepared to trust him and see how things go,” Lidington noted.

    Global backdrop

    As months of chaos gave way to calm in London, the West was undergoing a seismic reorganization.

    Russia’s large-scale invasion of Ukraine triggered a flurry of coordinated work for EU and U.K. diplomats — including sanctions, military aid, reconstruction talks and anti-inflation packages. A sense began to emerge that it was in both sides’ common interest to get the Northern Ireland protocol row out of the way.

    “The war in Ukraine has completely changed the context over the last year,” an EU diplomat said.

    A second U.K. official agreed. “Suddenly we realized that the 2 percent of the EU border we’d been arguing about was nothing compared to the massive border on the other side of the EU, which Putin was threatening,” they said. “And suddenly there wasn’t any electoral benefit to keeping this row over Brexit going — either for us or for governments across the EU.”

    A quick glance at the electoral calendar made it clear 2023 offered the last opportunity to reach a deal in the near future, with elections looming for both the U.K. and EU parliaments the following year — effectively putting any talks on ice.

    “Rishi Sunak would have certainly been advised by his officials that come 2024, the EU is not going to be wanting to take any new significant initiatives,” Lidington said. “And we will be in election mode.”

    The upcoming 25th anniversary of the Belfast/Good Friday peace agreement on April 10 heaped further pressure on the U.K. negotiators, amid interest from U.S. President Joe Biden in visiting Europe to mark the occasion.

    “The anniversary was definitely playing on people’s minds,” the first U.K. official said. “Does [Sunak] really want to be the prime minister when there’s no government in Northern Ireland on the anniversary of the Belfast/Good Friday Agreement?”

    The pressure was ramped up further when Biden specifically raised the protocol in a meeting with Truss at the U.N. General Assembly in New York in late September, after which British officials said they expected the 25th anniversary to act as a “key decision point” on the dispute.

    The King and I

    Whitehall faced further pressure from another unlikely source — King Charles III, who was immediately planning a state visit to Paris within weeks of ascending the throne in September 2022. Truss had suggested delaying the visit until the protocol row was resolved, according to two European diplomats.

    The monarch is now expected to visit Paris and Berlin at the end of March — and although his role is strictly apolitical, few doubt he is taking a keen interest in proceedings. He has raised the protocol in recent conversations with European diplomats, showing a close engagement with the detail. 

    One former senior diplomat involved in several of the king’s visits said that Charles has long held “a private interest in Ireland, and has wanted to see if there was an appropriately helpful role he could play in improving relations [with the U.K].”

    By calling the deal the Windsor framework and presenting it at a press conference in front of Windsor Castle, one of the king’s residences, No. 10 lent Monday’s proceedings an unmistakable royal flavor.

    The king also welcomed von der Leyen for tea at the castle following the signing of the deal. A Commission spokesperson insisted their meeting was “separate” from the protocol discussion talks. Tory MPs were skeptical.

    Cleverly does it

    The British politician tasked with improving relations with Brussels was Foreign Secretary Cleverly, appointed by Truss last September. He immediately began exploring ways to rebuild trust with Commission Vice-President and Brexit point-man Maroš Šefčovič, the second U.K. official cited said.

    His first hurdle was a perception in Brussels that the British team had sabotaged previous talks by leaking key details to U.K. newspapers and hardline Tory Brexiteers for domestic political gain. As a result, U.K. officials made a conscious effort to keep negotiations tightly sealed, a No. 10 official said.

    “The relationship with Maroš improved massively when we agreed not to carry out a running commentary” on the content of the discussions, the second U.K. official added.

    This meant keeping key government ministers out of the loop, including Northern Ireland Minister Steve Baker, an arch-Brexiteer who had been brought back onto the frontbench by Truss.

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    British Foreign Secretary James Cleverly is welcomed by European Commission Vice-President Maroš Šefčovič ahead of a meeting at the EU headquarters in Brussels on February 17, 2023 | Kenzo Tribouillard/AFP via Getty Images

    The first U.K. official said Baker would have “felt the pain,” as he had little to offer his erstwhile backbench colleagues looking for guidance while negotiations progressed, “and that was a choice by No. 10.”

    Cleverly and Šefčovič “spent longer than people think just trying to build rapport,” the second U.K. official said, with Cleverly explaining the difficulties the protocol was raising in Northern Ireland and Šefčovič insistent that key economic sectors were in fact benefiting from the arrangement.

    Cleverly also worked at the bilateral relationship with German Foreign Minister Annalena Baerbock, while Sunak made efforts to improve ties with French President Emmanuel Macron, Lidington noted.

    A British diplomat based in Washington said Cleverly had provided “a breath of fresh air” after the “somewhat stiff” manner of his predecessors, Truss and the abrasive Dominic Raab.

    By the Conservative party conference in early October, the general mood among EU diplomats in attendance was one of expectation. And the Birmingham jamboree did not disappoint.

    Sorry is the hardest word

    Baker, who had once described himself as a “Brexit hard man,” stunned Dublin by formally apologizing to the people of Ireland for his past comments, just days before technical talks between the Commission and the U.K. government were due to resume.

    “I caused a great deal of inconvenience and pain and difficulty,” he said. “Some of our actions were not very respectful of Ireland’s legitimate interests. I want to put that right.”

    The apology was keenly welcomed in Dublin, where Micheál Martin, the Irish prime minister at the time, called it “honest and very, very helpful.”

    Irish diplomats based in the U.K. met Baker and other prominent figures from the European Research Group of Tory Euroskeptics at the party conference, where Baker spoke privately of his “humility” and his “resolve” to address the issues, a senior Irish diplomat said.

    “Resolve was the keyword,” the envoy said. “If Steve Baker had the resolve to work for a transformation of relationships between Ireland and the U.K., then we thought — there were tough talks to be had — but a sustainable deal was now a possibility.”

    There were other signs of rapprochement. Just a few hours after Baker’s earth-shattering apology, Truss confirmed her attendance at the inaugural meeting in Prague of the European Political Community, a new forum proposed by Macron open to both EU and non-EU countries.

    Sunak at the wheel

    The momentum snowballed under Sunak, who decided within weeks of becoming PM to halt the passage of the Northern Ireland Protocol Bill in the House of Lords, reiterating Britain’s preference for a negotiated settlement. In exchange, the Commission froze a host of infringement proceedings taking aim at the way the U.K. was handling the protocol. This created space for talks to proceed in a more cordial environment.

    An EU-U.K. agreement in early January allowed Brussels to start using a live information system detailing goods moving from Great Britain to Northern Ireland, seen as key to unlocking a wider agreement on physical checks under the protocol.

    The U.K. also agreed to conduct winter technical negotiations in Brussels, rather than alternating rounds between the EU capital and London, as was the case when Frost served as Britain’s chief negotiator.

    Trust continued to build. Suddenly the Commission was open to U.K. solutions such as the “Stormont brake,” a clause giving the Northern Ireland Assembly power of veto over key protocol machinations, which British officials did not believe Brussels would accept when they first pitched them.

    The Stormont brake was discussed “relatively early on,” a third U.K. official said. “Then we spent a huge amount of effort making sure nobody knew about it. It was kept the most secret of secret things.”

    Yet a second EU diplomat claimed the ideas in the deal were not groundbreaking and could have been struck “years ago” if Britain had a prime minister with enough political will to solve the dispute. “None of the solutions that have been found now is revolutionary,” they said.

    An ally of Johnson described the claim he was a block on progress as “total nonsense.”

    The ‘unholy trinity’

    Away from the media focus, a group of seasoned U.K. officials began to engage with their EU counterparts in earnest. But there was one (not so) new player in town.

    Tim Barrow, a former U.K. permanent representative to the EU armed with a peerless contact book, had been an active figure in rebuilding relations with the bloc since Truss appointed him national security adviser. He acquired a more prominent role in the protocol talks after Sunak dispatched him to Brussels in January 2023, hoping EU figures would see him as “almost one of them,” another adviser to Sunak said.  

    Ensconced in the EU capital, Barrow and his U.K. team of negotiators took over several meeting rooms in the basement of the U.K. embassy, while staffers were ordered to keep quiet about their presence.

    Besides his work on Northern Ireland trade, Barrow began to appear in meetings with EU representatives about other key issues creating friction in the EU-U.K. relationship, including discussions on migration alongside U.K. Home Secretary Suella Braverman.

    Barrow “positioned himself very well,” the first EU diplomat quoted above said. “He’s very close to the prime minister — everybody in Brussels and London knows he’s got his ear. He’s very knowledgeable while very political.”

    But other British officials insist Barrow’s presence was not central to driving through the deal. “He has been a figure, but not the only figure,” the U.K. adviser quoted above said. “It’s been a lot of people, actually, over quite a period of time.”

    When it came to the tough, detailed technical negotiations, the burden fell on the shoulders of Mark Davies — the head of the U.K. taskforce praised for his mastery of the protocol detail — and senior civil servant and former director of the Northern Ireland Office, Brendan Threlfall.

    The three formed an “unholy trinity,” as described by the first U.K. official, with each one bringing something to the table.

    Davies was “a classic civil servant, an unsung hero,” the official said, while Threlfall “has good connections, good understanding” and “Tim has met all the EU interlocutors over the years.”

    Sitting across the table, the EU team was led by Richard Szostak, a Londoner born to Polish parents and a determined Commission official with a great CV and an affinity for martial arts. His connection to von der Leyen was her deputy head of cabinet until recently, Stéphanie Riso, a former member of Brussels’ Brexit negotiating team who developed a reputation for competence on both sides of the debate. 

    Other senior figures at the U.K. Cabinet Office played key roles, including Cabinet Secretary Simon Case and senior official Sue Gray.

    The latter — a legendary Whitehall enforcer who adjudicated over Johnson’s “Partygate” scandal — has a longstanding connection to Northern Ireland, famously taking a career break in the late 1980s to run a pub in Newry, where she has family links. More recently, she spent two years overseeing the finance ministry.

    Gray has been spotted in Stormont at crunch points over the past six months as Northern Ireland grapples with the pain of the continued absence of an executive.

    Some predict Gray could yet play a further role, in courting the Democratic Unionist Party as the agreement moves forward in the weeks ahead.

    For U.K. and EU officials, the agreement struck with Brussels represented months of hard work — but for Sunak and his Cabinet colleagues, the hardest yards may yet lie ahead.

    This story was updated to clarify two parts of the sourcing.



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    ( With inputs from : www.politico.eu )

  • Western firms say they’re quitting Russia. Where’s the proof?

    Western firms say they’re quitting Russia. Where’s the proof?

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    BERLIN — In an earlier life as a reporter in Moscow, I once knocked on the door of an apartment listed as the home address of the boss of company that, our year-long investigation showed, was involved in an elaborate scheme to siphon billions of dollars out of Russia’s state railways through rigged tenders.

    To my surprise, the man who opened the door wore only his underwear. He confirmed that his identity had been used to register the shell company. But he wasn’t a businessman; he was a chauffeur. The real owner, he told us, was his boss, one of the bankers we suspected of masterminding the scam. “Mr. Underpants,” as we called him, was amazed that it had taken so long for anyone to take an interest.

    Mr. Underpants leapt immediately to mind when, nearly a decade on, I learned that a sulfurous academic dispute had erupted over whether foreign companies really are bailing out of Russia in response to President Vladimir Putin’s invasion of Ukraine and subsequent international sanctions.

    Attempting to verify corporate activity in Russia — a land that would give the murkiest offshore haven a run for its money — struck me as a fool’s errand. Company operations are habitually hidden in clouds of lies, false paperwork and bureaucratic errors. What a company says it does in Russia can bear precious little resemblance to reality.

    So, who are the rival university camps trying to determine whether there really is a corporate exodus from Russia?

    In the green corner (under the olive banner of the University of St. Gallen in Switzerland) we have economist Simon Evenett and Niccolò Pisani of the IMD business school in Lausanne. On January 13, they released a working paper which found that less than 9 percent of Western companies (only 120 firms all told) had divested from Russia. Styling themselves as cutting through the hype of corporate self-congratulation, the Swiss-based duo said their “findings challenge the narrative that there is a vast exodus of Western firms leaving the market.”

    Nearly 4,000 miles away in New Haven, Connecticut, the Swiss statement triggered uproar in Yale (the blue corner). Jeffrey A. Sonnenfeld, from the university’s school of management, took the St. Gallen/IMD findings as an affront to his team’s efforts. After all, the headline figure from a list compiled by Yale of corporate retreat from Russia is that 1,300 multinationals have either quit or are doing so. In a series of attacks, most of which can’t be repeated here, Sonnenfeld accused Evenett and Pisani of misrepresenting and fabricating data.

    Responding, the deans of IMD and St. Gallen issued a statement on January 20 saying they were “appalled” at the way Sonnenfeld had called the rigor and veracity of their colleagues’ work into question. “We reject this unfounded and slanderous allegation in the strongest possible terms,” they wrote.

    Sonnenfeld doubled down, saying the Swiss team was dangerously fueling “Putin’s false narrative” that companies had never left and Russia’s economy was resilient.

    That led the Swiss universities again to protest against Sonnenfeld’s criticism and deny political bias, saying that Evenett and Pisani have “had to defend themselves against unsubstantiated attacks and intimidation attempts by Jeff Sonnenfeld following the publication of their recent study.”

    How the hell did it all get so acrimonious?

    Let’s go back a year.

    The good fight

    Within weeks of the February 24 invasion, Sonnenfeld was attracting fulsome coverage in the U.S. press over a campaign he had launched to urge big business to pull out of Russia. His team at Yale had, by mid-March, compiled a list of 300 firms saying they would leave that, the Washington Post reported, had gone “viral.”

    Making the case for ethical business leadership has been Sonnenfeld’s stock in trade for over 40 years. To give his full job titles, he’s the Senior Associate Dean for Leadership Studies & Lester Crown Professor in the Practice of Management at the Yale School of Management, as well as founder and president of the Chief Executive Leadership Institute, a nonprofit focused on CEO leadership and corporate governance.

    And, judging by his own comments, Sonnenfeld is convinced of the importance of his campaign in persuading international business leaders to leave Russia: “So many CEOs wanted to be seen as doing the right thing,” Sonnenfeld told the Post. “It was a rare unity of patriotic mission, personal values, genuine concern for world peace, and corporate self-interest.”

    Fast forward to November, and Sonnenfeld is basking in the glow of being declared an enemy of the Russian state, having been added to a list of 25 U.S. policymakers and academics barred from the country. First Lady Jill Biden topped the list, but Sonnenfeld was named in sixth place which, as he told Bloomberg, put him “higher than [Senate minority leader] Mitch McConnell.”

    Apparently less impressed, the Swiss team had by then drafted a first working paper, dated October 18, challenging Sonnenfeld’s claims of a “corporate exodus” from Russia. This paper, which was not published, was circulated by the authors for review. After receiving a copy (which was uploaded to a Yale server), Sonnenfeld went on the attack.

    Apples and oranges

    Before we dive in, let’s take a step back and look at what the Yale and Swiss teams are trying to do.

    Sonnenfeld is working with the Kyiv School of Economics (KSE), which launched a collaborative effort to track whether companies are leaving Russia by monitoring open sources, such as regulatory filings and news reports, supported where possible through independent confirmation.

    Kyiv keeps score on its Leave Russia site, which at the time of writing said that, of 3,096 companies reviewed, 196 had already exited and a further 1,163 had suspended operations.

    Evenett and Pisani are setting a far higher bar, seeking an answer to the binary question of whether a company has actually ditched its equity. It’s not enough to announce you are suspending operations, you have to fully divest your subsidiary and assets such as factories or stores. This is, of course, tough. Can you find a buyer? Will the Russians block your sale?

    The duo focuses only on companies based in the G7 or the European Union that own subsidiaries in Russia. Just doing business in Russia doesn’t count; control is necessary. To verify this, they used a business database called ORBIS, which contains records of 400 million companies worldwide.

    The first thought to hold onto here, then, is that the scope and methodology of the Yale and Swiss projects are quite different — arguably they are talking about apples and oranges. Yale’s apple cart comprises foreign companies doing business in Russia, regardless of whether they have a subsidiary there. The Swiss orange tree is made up of fewer than half as many foreign companies that own Russian subsidiaries, and are themselves headquartered in countries that have imposed sanctions against the Kremlin.

    So, while IKEA gets an ‘A’ grade on the Yale list for shutting its furniture stores and letting 10,000 Russian staff go, it hasn’t made the clean equity break needed to get on the St. Gallen/IMD leavers’ list. The company says “the process of scaling down the business is ongoing.” If you simply have to have those self-assembly bookshelves, they and other IKEA furnishings are available online.

    The second thing to keep in mind is that ORBIS aggregates records in Russia, a country where people are willing to serve as nominee directors in return for a cash handout — even a bottle of vodka. Names are often mistranslated when local companies are established — transliteration from Russian to English is very much a matter of opinion — but this can also be a deliberate ruse to throw due diligence sleuths off the trail.

    Which takes us back to the top of this story: I’ve done in-depth Russian corporate investigations and still have the indelible memory of those underpants (they were navy blue briefs) to show for it.

    Stacking up the evidence

    The most obvious issue with the Yale method is that it places a lot of emphasis on what foreign companies say about whether they are pulling out of Russia.

    There is an important moral suasion element at play here. Yale’s list is an effective way to name and shame those companies like Unilever and Mondelez — all that Milka chocolate — that admit they are staying in Russia.

    But what the supposed good kids — who say they are pulling out — are really up to is a murkier business. Even if a company is an A-grade performer on the Yale list, that does not mean that Russia’s economy is starved of those goods during wartime. There can be many reasons for this. Some companies will rush out a pledge to leave, then dawdle. Others will redirect goods to Russia through middlemen in, say, Turkey, Dubai or China. Some goods will be illegally smuggled. Some companies will have stocks that last a long time. Others might hire my old friend Mr. Underpants to create an invisible corporate structure.

    A stroll through downtown Moscow reveals the challenges. Many luxury brands have conspicuously shut up shop but goods from several companies on the Yale A list and B list (companies that have suspended activities in Russia) were still easy to find on one, totally random, shopping trip. The latest Samsung laptops, TVs and phones were readily available, and the shop reported no supply problems. Swatch watches, Jägermeister liquor and Dr. Oetker foods were all also on sale in downtown Moscow, including at the historic GUM emporium across Red Square from the Kremlin.

    All the companies involved insisted they had ended business in Russia, but acknowledged the difficulties of continued sales. Swatch said the watches available would have to be from old stocks or “a retailer over which the company has no control.” Dr. Oetker said: “To what extent individual trading companies are still selling stocks of our products there is beyond our knowledge.” Jägermeister said: “Unfortunately we cannot prevent our products being purchased by third parties and sold on in Russia without our consent or permission.” Samsung Electronics said it had suspended Russia sales but continued “to actively monitor this complex situation to determine our next steps.”

    The larger problem emerging is that sanctions are turning neighboring countries into “trading hubs” that allow key foreign goods to continue to reach the Russian market, cushioning the economic impact.

    Full departure can also be ultra slow for Yale’s A-listers. Heineken announced in March 2022 it was leaving Russia but it is still running while it is “working hard to transfer our business to a viable buyer in very challenging circumstances.” It was also easy to find a Black & Decker power drill for sale online from a Russian site. The U.S. company said: “We plan to cease commerce by the end of Q2 of this year following the liquidation of our excess and obsolete inventory in Russia. We will maintain a legal entity to conduct any remaining administrative activities associated with the wind down.”

    And those are just consumer goods that are easy to find! Western and Ukrainian security services are naturally more preoccupied about engineering components for Putin’s war machine still being available through tight-lipped foreign companies. Good luck trying to track their continued sales …

    Who’s for real?

    Faced with this gray zone, St. Gallen/IMD sought to draw up a more black-and-white methodology.

    To reach their conclusions, Evenett and Pisani downloaded a list of 36,000 Russian companies from ORBIS that reported at least $1 million in sales in one of the last five years. Filtering out locally owned businesses and duplicate entries whittled down the number of owners of the Russian companies that are themselves headquartered in the G7 or EU to a master list of 1,404 entities. As of the end of November, the authors conclude, 120 companies — or 8.5 percent of the total — had left.

    The Swiss team was slow, however, to release its list of 1,404 companies and, once Sonnenfeld gained access to it, he had a field day. He immediately pointed out that it was peppered with names of Russian businesses and businessmen, whom ORBIS identified as being formally domiciled in an EU or G7 country. Sonnenfeld fulminated that St. Gallen/IMD were producing a list of how few Russian companies were quitting Russia, rather than how few Western companies were doing so.

    “That hundreds of Russian oligarchs and Russian companies constitute THEIR dataset of ‘1,404 western companies’ is egregious data misrepresentation,” Sonnenfeld wrote in one of several emails to POLITICO challenging the Swiss findings.

    Fair criticism? Well, Sonnenfeld’s example of Yandex, the Russian Google, on the list of 1,404 is a good one. Naturally, that’s a big Russian company that isn’t going to leave Russia.

    On the other hand, its presence on the list is explicable as it is based in the Netherlands, and is reported to be seeking Putin’s approval to sell its Russian units. “Of course, a large share of Yandex customers and staff are Russian or based in Russia. However, the company has offices in seven countries, including Switzerland, Israel, the U.S., China, and others. What criteria should we use to decide if it is Russian or not for the purpose of our analysis?” St. Gallen/IMD said in a statement.

    Answering Sonnenfeld’s specific criticism that its list was skewed by the inclusion of Russian-owned companies, the Swiss team noted that it had modified its criteria to exclude companies based in Cyprus, a favored location for Russian entrepreneurs thanks to its status as an EU member country and its business-friendly tax and legal environment. Yet even after doing so, its conclusions remained similar.

    Double knockout

    Sonnenfeld, in his campaign to discredit the Swiss findings, has demanded that media, including POLITICO, retract their coverage of Evenett and Pisani’s work. He took to Fortune magazine to call their publication “a fake pro-Putin list of Western companies still doing business in Russia.”

    Although he believes Evenett and Pisani’s “less than 9 percent” figure for corporates divesting equity is not credible, he bluntly declined, when asked, to provide a figure of his own.

    Instead, he has concentrated on marshaling an old boys’ network — including the odd ex-ambassador — to bolster his cause. Richard Edelman, head of the eponymous public relations outfit, weighed in with an email to POLITICO: “This is pretty bad[.] Obvious Russian disinformation[.] Would you consider a retraction?” he wrote in punctuation-free English. “I know Sonnenfeld well,” he said, adding the two had been classmates in college and business school.

    Who you were at school with hardly gets to the heart of what companies are doing in Russia, and what the net effect is on the Russian economy.

    The greater pity is that this clash, which falls miles short of the most basic standards of civil academic discourse, does a disservice to the just cause of pressuring big business into dissociating itself from Putin’s murderous regime.

    And, at the end of the day, estimates of the number of companies that have fully left Russia are in the same ballpark: The Kyiv School of Economics puts it at less than 200; the Swiss team at 120.

    To a neutral outsider, it would look like Sonnenfeld and his mortal enemies are actually pulling in the same direction, trying to work out whether companies are really quitting. Yet both methodologies are problematic. What companies and databases say offers an imprecise answer to the strategic question: What foreign goods and services are available to Russians? Does a year of war mean no Samsung phones? No. Does it mean Heineken has sold out? Not yet, no.

    This has now been submerged in a battle royal between Sonnenfeld and the Swiss researchers.

    Appalled at his attacks on their work, St. Gallen and IMD finally sent a cease-and-desist letter to Sonnenfeld.

    Yale Provost Scott Strobel is trying to calm the waters. In a letter dated February 6 and seen by POLITICO, he argued that academic freedom protected the speech of its faculty members. “The advancement of knowledge is best served when scholars engage in an open and robust dialogue as they seek accurate data and its best interpretation,” Strobel wrote. “This dialogue should be carried out in a respectful manner that is free from ad hominem attacks.”

    With reporting by Sarah Anne Aarup, Nicolas Camut, Wilhelmine Preussen and Charlie Duxbury.

    Douglas Busvine is Trade and Agriculture Editor at POLITICO Europe. He was posted with Reuters to Moscow from 2004-08 and from 2011-14.



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    #Western #firms #theyre #quitting #Russia #Wheres #proof
    ( With inputs from : www.politico.eu )

  • Don’t fall prey to fake websites, mobile apps offering passport services: Govt

    Don’t fall prey to fake websites, mobile apps offering passport services: Govt

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    New Delhi: People looking for passport related services should not fall prey to the fake websites or mobile applications targeting people online, the government warned on Monday.

    It has come to the notice of the authorities that many fraudulent websites and mobile applications are collecting data from applicants and also levying additional hefty charges, a government alert said.

    “It has come to the notice of the Ministry that many fraudulent websites and mobile applications are collecting data from applicants and also levying additional hefty charges for filling up the online application form and scheduling appointments for passport and related services. Some of these fake website are registered in the domain name *.org, *.in, *.com such as www.indiapassport.org, www.online-passportindia.com, www.passportindiaportal.in, www.passport-india.in, www.passport-seva.in, www.applypassport.org and many other similar looking websites,” said the alert on fake websites related to passport services.

    “It is therefore advised to all citizens applying for Indian passport and related services that they should not visit the above mentioned fraudulent websites or make payment related to passport services. The official website of the Ministry of External Affairs, Government of India, for Passport services is www.passportindia.gov.in,” said the alert.

    Alternatively, applicants may also use the official mobile app mPassport Seva which can be downloaded from Android and iOS application store, said the alert.

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    ( With inputs from www.siasat.com )

  • Bank is going to make this big change regarding payment services

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    Bank is going to make this big change regarding payment services, check details


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    SBI Online: While giving information to the customers, SBI Cards and Payment Services has said that this fee will be increased and it will affect the customers using SBI Credit Card. The bank has increased the card fee.

    This amendment will be applicable from 17 March 2023. Information given by sending mail Information about this has been given by sending message and mail from SBI Card. SBI Cards has told that users paying their fare through credit card will now be charged Rs 199 plus other applicable taxes.

    Revised rates will be applicable

    Let us tell you that in November 2022, SBI Card had increased the payment fee in credit card fare to Rs 99 plus 18% GST, but instead of Rs 99 plus applicable taxes, now Rs 199 plus tax will be charged from them. Customers were informed about this. Giving information to the customers, the company has told that the new rates will be implemented soon.

    Many banks have already increased

    SBI Card has told that it is increasing the processing fee in the payment of rent. The charges on SBI Credit Card rental payment transactions are being revised. Let us tell you that before this ICICI Bank, HDFC Bank and Kotak Bank have also increased.

    Let us tell you that from February 15, 2023, Kotak Bank has collected 1 percent of the transaction amount and GST charge. At the same time, Bank of Baroda has also charged a transaction fee of 1 percent. HDFC Bank has also changed the rewards points. ICICI Bank has also changed the rates from 20 October 2022.

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    ( With inputs from : kashmirpublication.in )

  • UAE updates 15 services of visa, entry permits

    UAE updates 15 services of visa, entry permits

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    Abu Dhabi: The UAE’s Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) on Wednesday announced the implementation of a new services of 15 updates related to visas and entry permits, available through its smart channels, the Emirates News Agency (WAM) reported.

    The set of updates comes as part of a plan to develop the service system in line with the latest developments, to meet the needs of customers, and to enhance the ability of the authority and the state to cross into the future.

    Updates include

    • The issuance of group family visas for tourism, treatment, and patient companionship, available for both single and multiple entry, for a period of 60 days and 180 days.
    • Exempting people of determination from the fingerprint requirement when applying for issuing, renewing or replacing a passport.
    • The visa extension service has also been expanded to allow a 30-day extension for one-time 90-day visa holders, with a ban on renewal of residency visas valid for more than six months.
    • The updated smart services system also provides cancellation and amendment services for visa data in the accounts of citizens of the Gulf Cooperation Council (GCC) countries without the Emirates ID.
    • Extending a visit visa for a relative or friend for single or multiple entry for 30, 60 and 90 days in their account.

    Major General Al Khaili indicated that the authority adopted the new updates in the smart services system and began implementing them on February 1, 2023.

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    ( With inputs from www.siasat.com )

  • Telangana: New Basti Dawakhana with 133 diagnostic services launched in Siddipet

    Telangana: New Basti Dawakhana with 133 diagnostic services launched in Siddipet

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    Hyderabad: The fourth Basthi Dawakhana of Siddipet was launched at Indiramma Colony by Telangana health minister T Harish Rao on Wednesday.

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    Health minister inaurating Basti Dawakhana in Siddipet

    The minister, while speaking at the event said that a total of 158 kinds of medicines in these Dawakhanas apart from 133 diagnostic services were being offered.

    “A cath lab, chemo, and radiotherapy services would be made available to provide medical treatment to the poor on par with those available in corporate hospitals in the state,” added Harish Rao.

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    “A palliative centre and a five-bed ward for terminally ill cancer patients have been set up apart from Amma Odi vehicle for pregnant women and infants, vehicle for terminally ill cancer patients, 108 ambulance service to provide emergency medical services besides Parampara to carry the bodies of poor dead patients from hospital to cremation grounds,” he added.

    Launching the concept of Basthi Dawakhanas in Hyderabad by setting up 350 of these clinics across the state, Harish Rao said the health department had so far offered services to over two crore people.

    The minister later visited a Kanti Velugu camp at Bara Imama Junction in Siddipet town wher he called upon elected representatives to guide the patients in need of surgeries, to visit LV Prasad Hospital.

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    #Telangana #Basti #Dawakhana #diagnostic #services #launched #Siddipet

    ( With inputs from www.siasat.com )

  • Govt scheme to check publication of fake product & services reviews

    Govt scheme to check publication of fake product & services reviews

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    New Delhi: The government has formulated a conformity assessment scheme on IS 19000:2022, which is aimed at certifying the processes related to collection, moderation and publication of online customer reviews, to prevent publication of fake or misleading reviews, secretary in the Department of Consumer Affairs Rohit Kumar Singh said on Wednesday.

    The scheme lays down the criteria and responsibilities of the organisation and ancillary requirements for grant and operation of certification requirements for processes related to collection, moderation and publication of online customer reviews, and charges relating to certification of said process.

    This scheme will ensure authenticity and reliability of consumer reviews published online, and will help consumers make informed decisions.

    This is a major step towards ensuring consumer protection and promoting fair trade practices in the e-commerce industry, Singh said.

    The rapid growth of consumer reviews for a wide range of products like clothes, electrical appliances, toys, cars, etc and also services like restaurants, hotels, travel and logistics, real estate and lawyers, etc., have the potential to empower consumers and drive industry growth, by creating a more transparent and dynamic way to exchange information, he added further.

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    #Govt #scheme #check #publication #fake #product #services #reviews

    ( With inputs from www.siasat.com )

  • Telecom Companies Issues Important Notice Regarding Upgrading 4G To 5G Services – Check Here – Kashmir News

    Telecom Companies Issues Important Notice Regarding Upgrading 4G To 5G Services – Check Here – Kashmir News

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    Telecom Companies Issues Important Notice Regarding Upgrading 4G To 5G Services: With 5G telecom service launched in many cities across the country, the Telecom Companies have warned the public of fraudsters who might use the opportunity for phishing and one-time password-based cheating.

    The police have also appealed to the public not to share one-time passwords (OTPs) and other sensitive information with strangers who may contact on the pretext of offering an upgrade from 4G SIM to 5G SIM.

    People involved in online cheating may also send web links to mobile numbers which claim to offer 5G and other related services. Such links could be malicious and harmful enough to access potential information if opened

    Please note that telecom Companies do not ask for OTP/PIN to upgrade SIM to enable 5G services. Do not share personal details like OTP/PIN/Password with anybody. Also be cautious of fraudulent offers through malicious links in the name of upgrading to 5G services.

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    ( With inputs from : kashmirnews.in )

  • LIC subscribers can now access policy-related info, services on WhatsApp

    LIC subscribers can now access policy-related info, services on WhatsApp

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    New Delhi: The Life Insurance Corporation (LIC) on Wednesday introduced a 24×7 interactive service for its subscribers on WhatsApp, allowing policyholders to easily access information and services related to policies within the official LIC WhatsApp chatbot.

    Policyholders will now be able to access over 11 services directly on WhatsApp, including information on loan eligibility, repayment quotation, policy status, bonus information, statement of units, LIC services links, updates on premium due dates, loan interest due date notification, certificate on paid premium, opt-in/opt-out option, and end conversation.

    “LIC’s services on the WhatsApp business platform are redefining the conventional experience for policyholders, making it simpler, safe, secure and on the go,” Ravi Garg, Director, Business Messaging, WhatsApp India, said in a statement.

    To avail the services, policyholders will have to first register on the official site of LIC. Users can then send a ‘Hi’ from their registered mobile number to +91 8976862090 and choose from one of the 11 services.

    The WhatsApp chatbot has been developed by ValueFirst.

    “Policyholders will now be able to interact with LIC at their convenience at their fingertips on use cases such as premium due date, policy status, loan eligibility, and much more. This conversational AI solution will help LIC strengthen its brand even more through better customer engagement,” Vishwadeep Bajaj, CEO & Founder, ValueFirst, said in a statement.

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    #LIC #subscribers #access #policyrelated #info #services #WhatsApp

    ( With inputs from www.siasat.com )

  • EU to launch platform to fight Russian, Chinese disinformation

    EU to launch platform to fight Russian, Chinese disinformation

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    The European Union will launch a new platform to counter disinformation campaigns by Russia and China amid growing worries, EU foreign affairs chief Josep Borrell said today.

    A so-called Information Sharing and Analysis Center within the EU’s foreign services —the European External Action Service (EEAS) — will seek to track information manipulation by foreign actors and coordinate with the 27 EU countries and the wider community of NGOs.

    “We need to understand how these disinformation campaigns are organized … to identify the actors of the manipulation,” said Borrell.

    One EEAS official said it would be a decentralized platform to exchange information in real-time with NGOs, countries and cybersecurity agencies, enabling better understanding of emerging disinformation threats and narratives and quicker action to tackle such problems.

    Almost a year after Russia’s invasion of Ukraine, the EU continues to fend off Russian attempts to manipulate and distort information about the war. Kremlin-led propaganda seeking to blame the EU for a global food crisis due to its sanctions has also spread to countries in Africa and the Middle East.

    Borrell also warned of a “new wave” of disinformation of fabricated images, videos and websites posing as media outlets spreading “five times the speed of light across social networks and messaging services.”

    The EU’s existing disinformation unit, the Stratcom division, in a first-ever report, noted that most of the foreign information manipulation in 2022 had centered on narratives supporting the Russian invasion of Ukraine. Russian and Chinese diplomatic channels were particularly involved.



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    ( With inputs from : www.politico.eu )