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Russian envoy says trade with Hong Kong can grow under strong Moscow-Beijing ties

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China, Russia can do more to support companies affected by Western sanctions, says Consul General Anatoly Kargapolov

This is the eighth in a series of interviews with consuls general of emerging and belt and road economies with which Hong Kong is keen to build ties. Here are the previous ones.

Russian companies have faced difficulties accessing Hong Kong’s banking services following Western sanctions, but the country’s top envoy to the city has brushed off the impact on bilateral trade.

Consul General Anatoly Kargapolov said growing ties between China and Russia had opened up new opportunities for collaboration with the city, urging the financial hub to host economic forums with former Soviet states.

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He spoke to the Post in an exclusive interview days before leaders Xi Jinping and Vladimir Putin said on the sidelines of the 16th Brics summit in Kazan, Russia, last week that both countries were committed to boosting cooperation for a “fair world order”.

Since Russia invaded Ukraine in February 2022, it has faced a slew of sanctions from the United States, the European Union and other Western countries. It was also cut off from Swift, the main international payment messaging network.

Some Russian companies experienced difficulties with banking services in Hong Kong, but Kargapolov said that “was never critical for developing bilateral trade”.

He said US sanctions on dozens of Hong Kong companies for their alleged ties to Russia were meant to “negatively influence” Russia-China trade.

While the affected companies had to navigate the challenges they faced themselves, he added that Moscow and Beijing should support the business community.

In September, the US Treasury Department’s Office of Foreign Assets Control sanctioned 26 Hong Kong companies and another based in the city and mainland China. That followed sanctions last December on eight companies in the city.

On a visit to Hong Kong in July, Ukraine Foreign Minister Dmytro Kuleba urged Chief Executive John Lee Ka-chiu to prevent Russia from using the city to evade Western restrictions.

Lee assured Kuleba that the city adhered to global sanctions and local laws.

Kargapolov called those sanctions “illegal”, saying: “The global economy is grossly distorted by the methods that the West is using to punish those who do not follow its ‘rules’, which are steeped in neocolonialism, and to wipe out its competitors.”

He added that Western countries tried to use the same method against Russia-China trade and Hong Kong in particular, in their attempts to undermine the city’s status as a global financial centre.

Despite the challenges, Russia’s relationship with Hong Kong was part of its “comprehensive partnership and strategic cooperation” with the mainland, which was experiencing “remarkable growth” and opening up new opportunities for deepening cooperation, he said.

He also highlighted the city’s role as the largest source of offshore yuan, which Russia had increasingly turned to for foreign trade in recent years.

Hong Kong’s bilateral trade with Russia climbed to US$5.8 billion last year, up 50.9 per cent from 2022, according to official data. Exports surged by 123 per cent, while imports were up 11.2 per cent.

To boost trade and business ties further, Kargapolov hoped Hong Kong could host economic events focused on member countries of the Commonwealth of Independent States (CIS), which comprised most of the former Soviet Union states in Central Asia and Eastern Europe.

He noted the Hong Kong government had begun paying more attention to countries in the Asean bloc, or the Association of Southeast Asian Nations, and the Middle East, and said that Russia could also supplement the development of the city.

“This will help to extend the economic cooperation between CIS countries and Hong Kong, and with Russia in particular,” he said.

Dmytro Kuleba, Ukraine’s foreign minister, in July urged Chief Executive John Lee to prevent Russia from using Hong Kong to evade Western restrictions. Photo: Reuters

 

Russia’s exports to the city mainly consisted of precious metals such as silver and platinum, as well as pearls and other precious stones, according to Trade Development Council data.

Kargapolov said there was “huge interest” from Russian companies hoping to send agricultural and food products to the city for re-export to Asean countries and the mainland.

Hong Kong also had unique advantages within the framework of the Greater Bay Area, linking the city with Macau and nine cities in Guangdong province, including its international connectivity, financial infrastructure and common law legal system.

Kargapolov said Hong Kong’s position as a research and development hub also offered new opportunities for cooperation in areas including artificial intelligence and fintech such as banking software.

Lighter side

What surprised you most about Hong Kong when you first arrived?

I was surprised that on such a small piece of land you managed to build great transport infrastructure and business infrastructure. It is a city that combines and embraces everything active people would wish to have.

In a small area everything is accessible. In 20 minutes I can go from the office to the trail to go hiking. I also can enjoy the seashore.

Do you have a favourite local dish?

I like the seafood. Sometimes I go to the wet market, buy some fish and cook it myself. In Moscow, we have mostly frozen products.

But here, you can have a fresh catch and I can treat my family to some dishes.

Where do you usually take guests when they visit Hong Kong?

No 1, we take them to The Peak. No 2, we take them to the [Big] Buddha. No 3, we take them to Tai Kwun because it is an iconic place – the architecture, heritage, cuisine.

If this is not enough, we take them to Tai Po, the fishing village, and we take a boat ride to see the dolphins. We are not lucky every time, but I have seen them.

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This article originally appeared on the South China Morning Post (www.scmp.com), the leading news media reporting on China and Asia.

Copyright (c) 2024. South China Morning Post Publishers Ltd. All rights reserved.

Politics

US says it will not limit arms transfers to Israel after some aid improvements to Gaza

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Palestinians gather at the site of an Israeli strike in the courtyard of the Al-Aqsa Hospital where displaced people live in tents, in Deir al-Balah, Gaza Strip, Nov. 9, 2024 © Abdel Kareem Hana/Copyright 2024 The AP. All rights reserved.
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The Biden administration said on Tuesday that Israel made good but limited progress in increasing the flow of humanitarian aid to Gaza, and that it therefore would not limit arms transfers to Israel as it threatened to do a month ago.

However, relief groups say conditions are worse than at any point in the 13-month-old war.

State Department spokesman Vedant Patel said on Tuesday the progress to date must be supplemented and sustained but that “we at this time have not made an assessment that the Israelis are in violation of US law.”

This law requires recipients of military assistance to adhere to international humanitarian law and not impede the provision of such aid.

“We are not giving Israel a pass,” Patel said, adding that “we want to see the totality of the humanitarian situation improve, and we think some of these steps will allow the conditions for that to continue progress.”

The decision from the U.S. — Israel’s key ally and largest provider of arms and other military aid — comes despite international aid organizations declaring that Israel has failed to meet U.S. demands to allow greater humanitarian access to the Gaza Strip. Hunger experts have warned that the north may already be experiencing famine.

The Biden administration last month set a deadline expiring Tuesday for Israel to “surge” more food and other emergency aid into the Palestinian territory or risk the possibility of scaled-back military support as Israel wages offensives against Hamas in Gaza and Hezbollah in Lebanon.

 The obstacles facing aid distribution were on this display this week. Even after the Israeli military gave permission for a delivery to the northernmost part of Gaza — virtually cut off from food for more than a month by an Israeli siege — the United Nations said it couldn’t deliver most of it because of turmoil and restrictions from Israeli troops on the ground.

In the south, hundreds of truckloads of aid are sitting on the Gaza side of the border because the U.N. says it cannot reach them to distribute the aid — again because of the threat of lawlessness, theft and Israeli military restrictions.

Israel has announced a series of steps — though their effect was unclear. On Tuesday, it opened a new crossing in central Gaza, outside the city of Deir al-Balah, for aid to enter.

It also announced a small expansion of its coastal “humanitarian zone,” where hundreds of thousands of Palestinians are sheltering in tent camps. It connected electricity for a desalination plant in Deir al-Balah.

Eight international aid organizations, meanwhile, said in a report Tuesday that “Israel not only failed to meet the U.S. criteria” but also took actions “that dramatically worsened the situation on the ground, particularly in Northern Gaza. … That situation is in an even more dire state today than a month ago.”

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Constituents push for Senator’s recall over alleged involvement in banditry

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Senator Shehu Umar Buba represents Bauchi South Senatorial District under the All Progressives Congress (APC). [Facebook] ©(c) provided by Pulse Nigeria © Pulse Nigeria
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The Senator’s recent appointment as Chairman of the Senate Committee on National Security and Intelligence has attracted fierce criticism.

Senator Shehu Buba, representing Bauchi State’s South Senatorial District, is facing intense scrutiny and backlash following allegations linking him to terror suspects in Northern Nigeria.

The Department of State Services (DSS) is investigating his potential involvement with wanted terrorists, while his constituents are mobilising for a historic recall.

Buba, once a respected figure in Bauchi politics, is under fire after being connected to Abubakar Idris, a known terrorist arrested in August 2024.

Idris’s arrest reportedly implicated Buba, sparking outrage among his constituents, who are demanding accountability and the senator’s removal.

READ ALSO: US told to issue visa ban to Nigerian Senator linked to terror suspect

A formal recall process has been initiated, with registered voters in his district pushing for a referendum to remove him from office.

“This is a matter of national security. We cannot have someone with such affiliations in office,” one constituent declared, according to reports.

The recall movement is gaining momentum as more people sign a petition to trigger the process. If successful, the Independent National Electoral Commission (INEC) will be required to conduct a referendum, potentially marking the first time a sitting senator is removed by his constituents.

Buba’s woes deepened with revelations about his origins. Despite claiming to represent Bauchi, investigations show he hails from Plateau State, raising questions about his legitimacy.

An anonymous community leader expressed frustration, stating, “We thought he was one of us, but he’s not even a Bauchi indigene.”

READ ALSO: Senator Buba fires back at Bauchi Gov over banditry allegation

Buba’s political rise has been controversial. After moving to Bauchi in 2001, he built connections through family ties and political maneuvering, eventually securing a position as the Caretaker Chairman of Toro Local Government.

His success in politics, including his controversial senatorial nomination in 2022, has raised doubts about his integrity. Critics argue that his rise was influenced by powerful figures, including former Vice President Atiku Abubakar and former Bauchi Governor Isa Yuguda.

Buba’s recent appointment as Chairman of the Senate Committee on National Security and Intelligence has attracted fierce criticism. Political analysts argue that it is dangerous to have someone with such alleged links to terrorism overseeing national security matters.

“This is a grave error,” one analyst stated. “It’s a dangerous gamble to have him in charge of national security.”

With growing discontent, Buba has been noticeably absent from public events, fueling speculation that he is avoiding the backlash from his constituents. His dwindling visibility only adds to the tension, as many believe he is distancing himself from the growing outrage.

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Europe wants to strike Russia

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Europe wants to strike Russia © Pixabay
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The European Union should directly use $300 billion of frozen Russian assets to finance the recovery of war-torn Ukraine, according to Kaja Kallas, the candidate for the EU’s top foreign policy post.

Ms. Kallas, the former Estonian prime minister nominated for the post of EU high representative, said member states should abandon any doubts about the direct use of these assets, citing Kiev’s “legitimate claims” on these funds, following Russia’s invasion.

President Volodymyr Zelenskyy said Ukraine knew how to use Russia’s frozen assets. He proposed transferring the entire $300 billion to Kiev. “Frankly, these are Ukrainian funds,” he said.

According to World Bank estimates, by the end of 2023, Ukraine’s total economic, social and financial losses due to the war will amount to $499 billion.

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