WORLD BRIEFING: January 5, 2024
Exclusive: political and diplomatic sources in Ukraine have confirmed to me that as the ongoing war continues to put a strain on the national budget, Kyiv could find it difficult to pay public sector salaries come February. A shrinking revenue and tax base and the need to subsidise the military has created a $5bn monthly budget gap. Also delayed funding from the U.S. and European Union totalling over $100-billion. The $61bn U.S. package, stalled by Republican bickering, had a substantial amount earmarked for budget support for Kyiv - including teachers’ salaries and pensions. A delay in these payments would be nothing short of catastrophic.
Ukraine diplomats are hopeful that some $300bn in frozen Russian assets can go towards providing urgent budgetary relief. Cash could come from tax revenue from interest earned on the assets in jurisdictions such as Belgium, where most frozen Russian central bank assets are held, a senior Ukrainian diplomat in Brussels told me.
Over $200bn is held in Europe with around $125 billion managed by Belgian clearing house Euroclear. Belgium, where taxes are exceptionally high, expects to collect €2.3bn ($2.4bn) in taxes on the assets.
Russia has used ballistic missiles and launchers supplied by North Korea in Ukraine, U.S. says. NSC spox John Kirby called it a "significant and concerning escalation" relating to Pyongyang's support for Russia. He said US would raise the matter at the UN Security Council and impose additional sanctions on those working to facilitate arms transfers - BBC
Russia is also planning to buy short-range ballistic missiles from Iran, a step that would enhance Moscow’s ability to target Ukraine’s infrastructure at a critical moment in the conflict, U.S. officials said - WSJ
U.S. officials believe that in exchange for the ballistic missiles, North Korea is seeking a variety of military equipment from Russia, including fighter aircraft, surface-to-air-missiles, armored vehicles, ballistic missile production equipment and other advanced technologies - Washington Post
Israel's military is intensifying its operations in central and southern Gaza, including the Khan Younis area, where the Hamas-controlled health ministry said at least 22 people were killed by an Israeli airstrike. Meanwhile, Israel also issued new evacuation instructions for parts of the enclave. Palestinians tell CNN they're exhausted from repeatedly fleeing to new areasand living without access to food, electricity or water - CNN
In Gaza, 14 people, nine of them children, have been killed in a blast at al-Mawasi - an area designated a safe zone by Israeli forces - according to the Hamas-run health ministry - BBC
Crews at Tokyo's Haneda Airport started clearing the charred wreckage of a Japan Airlines plane from a runway, footage from Japanese broadcaster TBS showed, as investigators worked to determine what caused the deadly accident - Reuters
A new report by Democrats on the House Oversight committee documents more than $7.8 million in illegal payments from at least 20 foreign governments — including China, Saudi Arabia and Qatar — to businesses owned by then-President Trump during two years of his presidential term. Democrats say at least 20 foreign governments or state-controlled businesses paid Trump-owned businesses during his presidential term. The Democrats' evidence consists primarily of thousands of Trump's business records obtained from his longtime accounting firm, Mazars USA, which were obtained after a years-long legal battle which was ultimately decided by the Supreme Court - NPR
Belarusian president, Alexander Lukashenko, has signed a new law granting him lifelong immunity from criminal prosecution and preventing opposition leaders living in exile from running in future presidential elections. The law theoretically applies to any former president and members of his or her family. In reality, it is only relevant to the 69-year-old Lukashenko, who has ruled Belarus with an iron fist for almost 30 years. The law significantly tightens requirements for presidential candidates and makes it impossible to elect opposition leaders who have fled to neighbouring countries in recent years. Only citizens of Belarus who have permanently resided in the country for at least 20 years and have never had a residence permit in another country are eligible to run - AP
Here in Brussels, the European Parliament has reached an agreement with EU countries to regulate online platforms for short-term accommodation rentals (such as AirBnb) and support public authorities to promote sustainable tourism.
The morning papers…
