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Airbus and Qatar Airways settle bitter A350 jet row

PARIS, Feb 1 (Reuters) – Airbus (AIR.PA) and Qatar Airways have settled a dispute over grounded A350 jets, the companies said on Wednesday, averting a potentially damaging UK court trial after a blistering 18-month feud that tore the lid off the global jet market.

The “amicable and mutually agreeable settlement” ends a $2 billion row over surface damage on the long-haul jets. The spat led to the withdrawal of billions of dollars’ worth of jet deals by Airbus and prompted Qatar to increase purchases from Boeing.

The cancelled orders for 23 undelivered A350s and 50 smaller A321neos have been restored under the new deal, which is also expected to see Airbus pay several hundred million dollars to the Gulf carrier, while winning a reprieve from other claims.

Financial details were not publicly disclosed.

The companies said neither admitted liability. Both pledged to drop claims and “move forward and work together as partners”.

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The deal heads off what amounted to an unprecedented public divorce trial between heavyweights in the normally tight-knit and secretive $150 billion jet industry.

The two sides had piled up combined claims and counter-claims worth about $2 billion ahead of the June trial.

French Finance Minister Bruno Le Maire welcomed the deal, which came in the wake of increasing political involvement amid close ties between France, where Airbus is based, and Qatar.

“It is the culmination of significant joint efforts. It is excellent news for the French aerospace industry,” he said.

Airbus shares closed up 1% before the announcement.

Qatar Airways had taken the unusual step of publicly challenging the world’s largest planemaker over safety after paint cracks exposed gaps in a sub-layer of lightning protection on its new-generation A350 carbon-composite jets.

Airbus had acknowledged quality flaws but, backed by European regulators, had insisted that the jets were safe and accused the airline of exaggerating flaws to win compensation.

DAMAGES

Supported by a growing army of lawyers, both sides repeatedly bickered in preliminary hearings over access to documents, to the growing frustration of a judge forced to order co-operation.

Analysts said the deal would allow both sides to feel vindicated, with Qatar Airways winning damages and recognition that the problem lay outside the manual and therefore required a new repair, and Airbus standing its ground on safety and spared the difficult task of finding a home for cancelled A350s.

Qatar will get the in-demand A321neos needed to plan its growth, albeit three years later than expected, in 2026. Airbus’ decision to revoke that order, separate from the disputed A350 contract, had been criticised by global airlines group IATA.

Airbus said it had done its best to avoid pushing Qatar too far back in the queue, though some experts question whether it could have met the earlier schedule because of supply problems.

The settlement is also expected to stop the clock ticking on a claim for grounding compensation that had been growing by $6 million a day, triggered by a clause agreed upon after the repainting of a jet for the World Cup revealed significant surface damage.

Originally valued at $200,000 per day per plane, Airbus’ theoretical liability was ratcheting upwards by a total of $250,000 an hour for 30 jets – or $2 billion a year – by the time the deal was struck, based on court filings. Neither side commented on settlement details.

Airbus said it would now work with the airline and regulators to provide the necessary “repair solution” and return Qatar’s 30 grounded planes to the air.

Confirmation of a settlement came after Reuters reported a deal could arrive as early as Wednesday. In 2021, a Reuters investigation revealed other airlines had been affected by A350 skin degradation, all of whom said it was “cosmetic”.

The dispute has focused attention on the design of modern carbon-fibre jets, which do not interact as smoothly with paint as traditional metal ones, and shed light on industrial methods.

Additional reporting by Leigh Thomas, Michel Rose
Editing by David Goodman, Diane Craft and Gerry Doyle

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Ukraine in talks with allies about getting long-range missiles, Zelenskiy aide says

Jan 28 (Reuters) – Expedited talks are under way among Kyiv and its allies about Ukraine’s requests for long-range missiles that it says are needed to prevent Russia from destroying Ukrainian cities, a top aide to President Volodymyr Zelenskiy said on Saturday.

Ukraine has won promises of Western battle tanks and is seeking fighter jets to push back against Russian and pro-Moscow forces, which are slowly advancing along part of the front line.

“To drastically reduce the Russian army’s key weapon – the artillery they use today on the front lines – we need missiles that will destroy their depots,” presidential adviser Mykhailo Podolyak told Ukraine’s Freedom television network. He said on the Russian-occupied Crimean Peninsula there were more than 100 artillery warehouses.

“Therefore, firstly, negotiations are already under way. Secondly, negotiations are proceeding at an accelerated pace,” he said without giving details.

Zelenskiy, speaking separately, said Ukraine wanted to preempt Russian attacks on Ukrainian urban areas and civilians.

“Ukraine needs long-range missiles … to deprive the occupier of the opportunity to place its missile launchers somewhere far from the front line and destroy Ukrainian cities,” he said in an evening video address.

Zelenskiy said Ukraine needed the U.S.-made ATACMS missile, which has a range of 185 miles (297km). Washington has so far declined to provide the weapon.

Earlier in the day, the Ukrainian air force denied a newspaper report that it intended to get 24 fighter jets from allies, saying talks were continuing, Ukraine’s Babel online outlet said.

Spain’s El Pais newspaper, citing Ukrainian air force spokesperson Yuri Ihnat, said Ukraine initially wanted two squadrons of 12 planes each, preferably Boeing F-16 jets.

But in a statement to Babel, Ihnat said his comments to a media briefing on Friday had been misinterpreted.

“Ukraine is only at the stage of negotiations regarding aircraft. Aircraft models and their number are currently being determined,” he said.

Ihnat told the Friday briefing that F-16s might be the best option for a multi-role fighter to replace the country’s current fleet of ageing Soviet-era warplanes.

He also told Ukrainian national television that allied nations did not like public speculation about jets, Interfax Ukraine news agency said.

Deputy White House national security adviser Jon Finer on Thursday said United States would be discussing the idea of supplying jets “very carefully” with Kyiv and its allies.

Germany’s defence minister this week ruled out the idea of sending jets to Ukraine.

Reporting by David Ljunggren; Editing by Daniel Wallis and Cynthia Osterman

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David Ljunggren

Thomson Reuters

Covers Canadian political, economic and general news as well as breaking news across North America, previously based in London and Moscow and a winner of Reuters’ Treasury scoop of the year.

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Brazil court grants bankruptcy protection for retailer Americanas

SAO PAULO, Jan 19 (Reuters) – A Rio de Janeiro court on Thursday accepted Brazilian retailer Americanas SA’s (AMER3.SA) bankruptcy protection request, days after the company disclosed nearly $4 billion in accounting inconsistencies that have sparked a legal feud with creditors and investors.

Americanas, a 93-year-old company with stores all over Brazil and a major e-commerce unit, said in a securities filing that it would restructure debts of about 43 billion reais ($8.2 billion).

Shares in the company plunged about 42.5% to 1.00 real following news of the filing, extending its year-to-date drop to around 90%.

The firm, backed by the billionaire trio that founded 3G Capital, said the move had come “despite the efforts and measures that the management has been taking in the past few days alongside its financial and legal advisers to protect the company from the effects” of the accounting scandal.

Investors had expected the decision, with some deeming it unavoidable, especially after lender BTG Pactual (BPAC3.SA) obtained on Wednesday a court decision overturning part of the firm’s protection from creditors.

Americanas is also facing seven different investigations launched by securities regulator CVM, as well as an arbitration process requesting compensation of 500 million reais to the firm and the trio that founded 3G Capital.

In a document filed with the court, law firms Basilio Advogados and Salomao Kaiuca Abrahao attributed the urgency in filing for bankruptcy to the creditors’ decision to seize the companies’ assets.

The retailer also mentioned a debt downgrade by ratings agencies, which prevented any new loans from being extended. S&P, Moody’s and Fitch all downgraded Americanas’ credit ratings following the accounting scandal.

Earlier, Americanas had said that its current cash position stood at only 800 million reais, down from a previously reported 7.8 billion.

Lucas Pogetti, a partner at M&A advisers RGS Partners, said a large part of Americanas’ previously disclosed cash position was linked to the prepayment of receivables or deposited with creditors.

“Naturally, when the banks became aware of the company’s real situation they began to adopt a more aggressive posture to protect themselves, consequently restricting access to resources,” Pogetti said.

In the filing, Americanas asks to exclude its fintech, Ame, from the bankruptcy protection, as it is regulated by the central bank, and for authorization to increase its capital.

Americanas’ stores are ubiquitous at Brazilian shopping malls. It e-commerce unit, which traded as a separate company before a recent restructuring, is one of the country’s top online retailers.

Chief executive Sergio Rial resigned last week, less than two weeks after taking the job, citing the discovery of “accounting inconsistencies” totaling 20 billion reais.

Rial, the former head of Banco Santander’s Brazilian arm (SANB3.SA), attributed the inconsistencies to differences in accounting for the financial cost of bank loans and debt with suppliers.

Chief financial officer Andre Covre, who had just joined Americanas as well, also left the firm, which has Brazilian billionaires Jorge Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles as reference shareholders.

Americanas said the reference shareholders intended to maintain the company’s liquidity at levels that allowed for a “good operation” of its stores, digital channel and other entities.

($1 = 5.2226 reais)

Reporting by Gabriel Araujo, Tatiana Bautzer and Peter Frontini in Sao Paulo and Carolina Pulice in Mexico City; Editing by Rosalba O’Brien and Bradley Perrett

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‘Feels like summer’: Warm winter breaks temperature records in Europe

  • Ski slopes deserted due to lack of snow
  • Activists call for faster action on climate change
  • Pollen warning issued as plants bloom early
  • Governments get short-term gas-price respite

LONDON/BRUSSELS, Jan 4 (Reuters) – Record-high winter temperatures swept across parts of Europe over the new year, bringing calls from activists for faster action against climate change while offering short-term respite to governments struggling with high gas prices.

Hundreds of sites have seen temperature records smashed in the past days, from Switzerland to Poland to Hungary, which registered its warmest Christmas Eve in Budapest and saw temperatures climb to 18.9 degrees Celsius (66.02°F) on Jan. 1.

In France, where the night of Dec. 30-31 was the warmest since records began, temperatures climbed to nearly 25C in the southwest on New Year’s Day while normally bustling European ski resorts were deserted due to a lack of snow.

The Weather Service in Germany, where temperatures of over 20C were recorded, said such a mild turn of the year had not been observed in the country since records began in 1881.

Czech Television reported some trees were starting to flower in private gardens while Switzerland’s office of Meteorology and Climatology issued a pollen warning to allergy sufferers from early blooming hazel plants.

The temperature hit 25.1C at Bilbao airport in Spain’s Basque country. People basked in the sun as they sat outside Bilbao’s Guggenheim Museum or walked along the River Nervion.

“It always rains a lot here, it’s very cold, and it’s January, (but now) it feels like summer,” said Bilbao resident Eusebio Folgeira, 81.

French tourist Joana Host said: “It’s like nice weather for biking but we know it’s like the planet is burning. So we’re enjoying it but at the same time we’re scared.”

Scientists have not yet analysed the specific ways in which climate change affected the recent high temperatures, but January’s warm weather spell fits into the longer-term trend of rising temperatures due to human-caused climate change.

“Winters are becoming warmer in Europe as a result of global temperatures increasing,” said Freja Vamborg, climate scientist at the European Union’s Copernicus Climate Change Service.

It follows another year of extreme weather events that scientists concluded were directly linked to global warming, including deadly heatwaves in Europe and India, and flooding in Pakistan.

“The record-breaking heat across Europe over the new year was made more likely to happen by human-caused climate change, just as climate change is now making every heatwave more likely and hotter,” said Dr Friederike Otto, climate scientist at Imperial College London.

Temperature spikes can also cause plants to start growing earlier in the year or coax animals out of hibernation early, making them vulnerable to being killed off by later cold snaps.

Robert Vautard, director of France’s Pierre-Simon Laplace Institute, said that while temperatures peaked from Dec. 30 to Jan. 2, the mild spell has lasted for two weeks and is still not over. “This is actually a relatively long-lived event,” he said.

EMPTY SLOPES

French national weather agency Meteo France attributed the anomalous temperatures to a mass of warm air moving to Europe from subtropical zones.

It struck during the busy skiing season, leading to cancelled trips and empty slopes. Resorts in the northern Spanish regions of Asturias, Leon and Cantabria have been closed since the Christmas holidays for lack of snow.

On Jahorina mountain above the Bosnian capital Sarajevo, which hosted the 1984 Winter Olympics, it should have been one of the busiest weeks of the season. Instead, the chair-lifts hung lifeless above the grassy slopes. In one guesthouse a couple ate dinner alone in the restaurant, the only guests.

A ski jumping event in Zakopane, southern Poland, planned for the weekend of Jan. 7-8 was cancelled.

Karsten Smid, a climate expert at Greenpeace Germany, said while some climate change impacts were already unavoidable, urgent action should be taken to prevent even more drastic global warming.

“What’s happening right now is exactly what climate scientists warned us about 10, 20 years ago, and that can no longer be prevented now,” Smid said.

WEATHER EASES GAS STRAIN

The unusually mild temperatures have offered some short-term relief to European governments who have struggled to secure scarce gas supplies and keep a lid on soaring prices after Russia slashed deliveries of the fuel to Europe.

European governments have said this energy crisis should hasten their shift from fossil fuels to clean energy – but in the short term, plummeting Russian fuel supplies have left them racing to secure extra gas from elsewhere.

Gas demand has fallen for heating in many countries due to the mild spell, helping to reduce prices.

The benchmark front-month gas price was trading at 70.25 euros per megawatt hour on Wednesday morning, its lowest level since February 2022 – just before Russia’s invasion of Ukraine.

The head of Italy’s energy authority predicted that regulated energy bills in the country would fall this month, if the milder temperatures help keep gas prices lower.

However, a note by Eurointelligence cautioned that this should not lull governments into complacency about Europe’s energy crisis.

“While it will give governments more fiscal breathing room in the first part of this year, resolving Europe’s energy problems will taken concerted action over the course of several years,” it said. “Nobody should believe this is over yet.”

Reporting by Kate Abnett, Richard Lough, Alan Charlish, Krisztina Than, Luiza Ilie, Susanna Twidale, Riham Alkousaa, Jason Hovet, Emma Pinedo, Kirsten Donovan, Federico Maccioni; writing by Matthias Williams; Editing by Janet Lawrence and Mark Heinrich

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China state media plays down COVID wave severity before WHO meet

  • State media says severe illness from COVID is rare
  • Chinese scientists expected to brief WHO
  • China factory activity shrinks in December

BEIJING, Jan 3 (Reuters) – China’s state media played down the severity on Tuesday of the COVID-19 wave surging over the country, with its scientists expected to give a briefing to the World Health Organization on the evolution of the virus later in the day.

China’s abrupt U-turn on COVID controls on Dec. 7, as well as the accuracy of its case and mortality data, have come under increasing scrutiny at home and overseas and prompted some countries to impose travel curbs.

The policy shift followed protests over the “zero COVID” approach championed by President Xi Jinping, marking the strongest show of public defiance in his decade-old presidency and coinciding with the slowest growth in China in nearly half a century.

As the virus spreads unchecked, funeral parlours report a spike in demand for their services and international health experts predict at least one million deaths in the world’s most populous country this year.

China reported three new COVID deaths for Monday, up from one for Sunday. Its official death toll since the pandemic began now stands at 5,253.

In an article on Tuesday, People’s Daily, the official newspaper of the Communist Party, cited several Chinese experts as saying the illness caused by the virus was relatively mild for most people.

“Severe and critical illnesses account for 3% to 4% of infected patients currently admitted to designated hospitals in Beijing,” Tong Zhaohui, Vice President of Beijing Chaoyang Hospital, told the newspaper.

Kang Yan, head of West China Tianfu Hospital of Sichuan University, said that in the past three weeks, a total of 46 critically ill patients have been admitted to intensive care units, accounting for about 1% of symptomatic infections.

More than 80% of those living in the southwestern Sichuan province have been infected, local health authorities said.

The World Health Organization on Friday urged China’s health officials to regularly share specific and real-time information on the COVID situation.

The agency has invited Chinese scientists to present detailed data on viral sequencing at a meeting of a technical advisory group scheduled for Tuesday. It has also asked China to share data on hospitalizations, deaths and vaccinations.

The European Union has offered free COVID vaccines to China to help contain the outbreak, the Financial Times reported on Tuesday.

EU government health officials will hold talks on Wednesday on a coordinated response to China’s outbreak, the Swedish EU presidency said on Monday.

The United States, France, Australia, India and others will require mandatory COVID tests on travellers from China, while Belgium said it will test wastewater from planes from China for new COVID variants.

China has rejected criticism of its COVID data and said any new mutations may be more infectious but less harmful.

“According to the political logic of some people in Europe and the United States, whether China opens or does not open is equally the wrong thing to do,” state-run CCTV said in a commentary late on Monday.

ECONOMIC CONCERNS

As Chinese workers and shoppers are falling ill, concerns mount about growth prospects in the world’s second-largest economy, weighing on Asian stocks.

Data on Tuesday showed China’s factory activity shrank at a sharper pace in December as the COVID wave disrupted production and hurt demand.

December shipments from Foxconn’s (2317.TW) Zhengzhou iPhone plant, disrupted late last year by a COVID outbreak that prompted worker departures and unrest, were 90% of the firm’s initial plans, a source with direct knowledge of the matter said.

A “bushfire” of infections in China in coming months is likely to hurt its economy this year and drag on global growth, said the head of the International Monetary Fund, Kristalina Georgieva.

“China is entering the most dangerous weeks of the pandemic,” warned analysts at Capital Economics.

“The authorities are making almost no efforts now to slow the spread of infections and, with the migration ahead of Lunar New Year getting started, any parts of the country not currently in a major COVID wave will be soon.”

Mobility data suggested that economic activity was depressed nationwide and would likely remain so until the infection wave began to subside, they added.

China’s Ministry of Culture and Tourism said the domestic tourism market saw 52.71 million trips during the New Year holiday, flat year-on-year and only 43% of the 2019 levels, before the pandemic.

The revenue generated was over 26.52 billion yuan ($3.84 billion), up 4% year-on-year but only about 35% of the revenue created in 2019, the ministry said.

Expectations are higher for China’s biggest holiday, the Lunar New Year, later this month, when some experts expect daily COVID cases to have already peaked in many parts of the country. Some hotels in the southern tourist resort of Sanya are fully booked for the period, Chinese media reported.

Reporting by Beijing and Shanghai bureaus; Writing by Marius Zaharia; Editing by Raju Gopalakrishnan

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Brazil markets tumble on Lula’s first full day in office

BRASILIA, Jan 2 (Reuters) – Brazilian markets delivered a withering verdict on leftist President Luiz Inacio Lula da Silva’s first full day in office on Monday, after he pledged to prioritize social issues and ordered a budget-busting extension to a fuel tax exemption.

Lula’s decision to extend the fuel tax exemption, which will deprive the Treasury of 52.9 billion reais ($9.9 billion) a year in fiscal income, was a stinging rebuke of his finance minister Fernando Haddad, a Workers Party (PT) loyalist who had said it would not be extended.

Haddad, who is seeking to dispel market fears that he might not maintain fiscal discipline, took office on Monday, pledging to control spending. “We are not here for adventures,” he said.

Markets seemed unconvinced.

The real currency lost 1.5% in value against the dollar in afternoon trading, while the benchmark Sao Paulo stock market index (.BVSP) ended 3.06% down. Shares of state-run oil company Petrobras (PETR4.SA) retreated nearly 6.45%.

In speeches delivered at his inauguration in Brasilia on Sunday, Lula promised that tackling hunger and poverty would be “the hallmark” of his third presidency after two previous stints running the country from 2003 to 2010.

Financial analysts said the start of Lula’s third presidency was in line with his campaign promises, and looked similar to earlier Workers Party policies that led to a deep recession.

Lula narrowly defeated far-right incumbent Jair Bolsonaro in October, swinging South America’s largest nation back on a left-wing track.

On Monday, Lula instructed ministers to revoke steps to privatize state companies taken by the previous administration, including studies to sell Petrobras, the Post Office and state broadcasting company EBC.

On Sunday, he signed a decree extending an exemption for fuels from federal taxes, a measure passed by his predecessor aimed at lowering their cost in the run-up to the election, but which will deprive the Treasury of 52.9 billion reais ($9.9 billion) a year in fiscal income.

The federal tax exemption for fuels will last one year for diesel and biodiesel and two months for gasoline and ethanol, a decree published in the official gazette showed on Monday.

Gabriel Araujo Gracia, analyst at Guide Investimentos, said Lula’s plans to increase social spending, expand the role of state banks and abolish a constitutionally mandated spending ceiling harked back to the worst days of Workers Party rule.

“The policies remind us of Dilma Rousseff’s government rather than Lula’s,” Gracia said, referring to Lula’s handpicked successor, who was impeached while in office. “Her policies led to Brazil’s worst recession since 1929.”

Lula, who lifted millions of Brazilians from poverty during his first two terms, criticized Bolsonaro for allowing hunger to return to Brazil, and wept during his speech to supporters on Sunday as he described how poverty had increased again.

Allies said Lula’s newfound social conscience was the result of his 580 days in prison, Reuters reported on Sunday.

Lula kicks off his third presidential term after persuading Congress to pass a one-year, 170 billion-reais increased social spending package, in line with his campaign promises.

“The package ended up being bigger than expected, with potential repercussions for public debt sustainability,” Banco BTG Pactual said in a research note.

Lula spent his first day in office meeting with more than a dozen heads of state who attended his inauguration.

The meetings started with the king of Spain, and continued with South American presidents, among them the leftist leaders of Argentina, Chile and Bolivia, as well as representatives from Cuba and Venezuela, and Vice President Wang Qishan of China.

On Twitter, Lula said he had received a letter from Chinese leader Xi Jinping expressing a desire to increase cooperation between the two countries.

“China is our biggest trading partner, and we can further expand relations between our countries,” Lula added.

The new president is also set to attend the wake of Brazilian soccer star Pele, who died on Thursday at 82 after battling colon cancer.

Lula will pay his respects and pay tribute to Pele and his family on Tuesday morning, the president’s office said in a statement.

($1 = 5.3633 reais)

Reporting by Anthony Boadle, Marcela Ayres and Gabriel Araujo; Editing by Matthew Lewis and Jonathan Oatis

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Qatar graft probe damages European Parliament, EU ministers say

  • Corruption scandal targets European Parliament
  • Four arrested and charged after homes raided
  • Qatar denies allegations it bribed top officials

BRUSSELS, Dec 12 (Reuters) – The European Union’s credibility is at stake, EU foreign ministers warned on Monday, following allegations Qatar lavished cash and gifts on European Parliament officials to influence decision-making.

Greece on Monday froze the assets of a key suspect in the case, Eva Kaili, a vice president in the European Parliament and one of four people arrested and charged in Belgium at the weekend, a source with knowledge of the matter said.

Kaili’s office did not respond to a request for a comment. Qatar has denied any wrongdoing.

Belgian prosecutors searched 16 houses and seized 600,000 euros ($631,800) in Brussels on Friday as part of the probe.

The four unnamed suspects have been charged with “participation in a criminal organisation, money laundering and corruption,” prosecutors said in a statement on Sunday.

The European Parliament said at the weekend it had suspended Kaili from her duties, while the Greek socialist PASOK party announced it was expelling her from its ranks.

According to sources familiar with the case, the three other accused are all Italian citizens — former EU lawmaker Pier Antonio Panzeri, general secretary of the International Trade Union Confederation Luca Visentini, and Kaili’s partner Francesco Giorgi, who is a parliamentary assistant.

There were no replies to calls and emails made by Reuters to their respective offices or homes in Belgium.

“This is an unbelievable incident which has to be cleared up completely with the full force of law,” German Foreign Minister Annalena Baerbock said as she arrived for a regular meeting with her EU counterparts in Brussels.

“This is about the credibility of Europe.”

Irish Foreign Affairs Minister Simon Coveney echoed her concern. “It is damaging. We need to get to the bottom of it.”

Belgian prosecutors said they had suspected for months that a Gulf state was trying to buy influence in Brussels.

A source with knowledge of the case said the state was Qatar. A Qatari official denied at the weekend accusations of possible misconduct.

“Any association of the Qatari government with the reported claims is baseless and gravely misinformed,” the official said.

BACKING QATAR

The investigation comes as World Cup host Qatar is in the global spotlight, amid criticism of its human rights record, including its treatment of migrant workers.

In a speech in the European Parliament on Nov. 21, at the start of the month-long soccer tournament, Kaili lashed out at Qatar’s detractors and hailed the energy-rich Gulf State as “a frontrunner in labour rights”.

“They committed to a vision by choice and they opened to the world. Still some here are calling to discriminate them. They bully them and they accuse everyone that talks to them or engages (with them) of corruption,” Kaili said.

The scandal is particularly awkward for the parliament, which has seen itself as a moral compass in Brussels, seeking tighter rules on the environment or on corporations, issuing resolutions critical of human rights abuses across the globe and taking EU governments to task.

As they arrived at Monday’s EU meeting, ministers were quick to condemn the alleged corruption.

“It is absolutely unacceptable, any kind of corruption,” said Czech Foreign Minister Jan Lipavsky.

“Qatar is an important partner for the energy of the EU,” he noted, while adding: “Of course the relation between the EU and Qatar needs to be built on a set of policies including human rights and labor rights.”

Some European diplomats told Reuters last month that pressure to maintain good ties with Qatar was increasing as the continent headed towards a winter of energy shortages because of the Russian invasion of Ukraine.

The European Parliament was due to vote this week on a proposal to extend visa-free travel to the EU for Kuwait, Qatar, Oman and Ecuador. Some lawmakers have suggested the vote should be postponed. Others have called for a debate on the corruption scandal.

The parliament was scheduled to start it plenary session in Strasbourg at 5 p.m. (1600 GMT), with many members making the trip from Brussels in the morning.

Reporting by Phil Blenkinsop in Brussels and Lefteris Papadimas in Athens; Additional reporting by Sudip Kar-Gupta, Bart Meijer, Charlotte Van Campenhout and Angeliki Koutantou; Writing by Ingrid Melander; Editing by Crispian Balmer

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Exclusive: Air India nears historic order for up to 500 jets

PARIS/NEW DELHI, Dec 11 (Reuters) – Air India is close to placing landmark orders for as many as 500 jetliners worth tens of billions of dollars from both Airbus and Boeing as it carves out an ambitious renaissance under the Tata Group conglomerate, industry sources said on Sunday.

The orders include as many as 400 narrow-body jets and 100 or more wide-bodies, including dozens of Airbus A350s and Boeing 787s and 777s, they said, speaking on condition of anonymity as finishing touches are placed on the mammoth deal in coming days.

Such a deal could top $100 billion dollars at list prices, including any options, and rank among the biggest by a single airline in volume terms, overshadowing a combined order for 460 Airbus and Boeing jets from American Airlines over a decade ago.

Even after significant expected discounts, the deal would be worth tens of billions of dollars and cap a volatile year for an industry whose jets are back in demand after the pandemic but which is facing mounting industrial and environmental pressures.

Airbus (AIR.PA) and Boeing declined to comment. Tata Group-owned Air India did not immediately respond to a request for comment.

The potential order comes days after Tata announced the merger of Air India with Vistara, a joint-venture with Singapore Airlines, to create a bigger full-service carrier and strengthen its presence in domestic and international skies.

That deal gives Tata a fleet of 218 aircraft, cementing Air India as the country’s largest international carrier and second largest in the domestic market after leader IndiGo (INGL.NS)

Air India, with its maharajah mascot, was once known for its lavishly decorated planes and stellar service but its reputation declined in the mid-2000s as financial troubles mounted.

Founded by JRD Tata in 1932, Air India was nationalised in 1953. Tata regained control in January and has since been working to revive its reputation as a world-class airline.

The planned order reflects a deliberate strategy to win back a solid share of traffic flows to and from India, which are currently dominated by foreign carriers such as Emirates.

Air India also wants to win a bigger share of regional international traffic and the domestic market, setting up a battle on both fronts with IndiGo.

Delivered over at least a decade, the 500 jets would both replace and expand fleets in the world’s fastest-growing airline market, while contributing to Prime Minister Narendra Modi’s goal of expanding the economy to $5 trillion.

But experts warn many hurdles stand in the way of Air India’s ambition to recover a strong global position, including frail domestic infrastructure, pilot shortages and the threat of tough competition with established Gulf and other carriers.

Reporting by Tim Hepher, Aditi Shah; Editing by Jane Merriman

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Letter bomb injures one at Ukraine’s Madrid embassy, Kyiv ramps up security

MADRID/KYIV, Nov 30 (Reuters) – A security officer at Ukraine’s embassy in Madrid was injured when he opened a letter bomb addressed to the ambassador on Wednesday, prompting Kyiv to order greater security at all its representative offices abroad.

The letter, which arrived by regular mail and was not scanned, caused “a very small wound” on one finger when the officer opened it in the embassy garden, Mercedes Gonzalez, a Spanish government official, told broadcaster Telemadrid.

Ukrainian Foreign Minister Dmytro Kuleba ordered all of Kyiv’s embassies abroad to “urgently” strengthen security and urged Spain to take investigate the attack, a ministry spokesman said.

The perpetrators, he added, “will not succeed in intimidating Ukrainian diplomats or stopping their daily work on strengthening Ukraine and countering Russian aggression.”

Ukraine’s ambassador to Madrid, Serhii Pohoreltsev, told TVE later that he was working as usual at the embassy “with no fear”.

“We have instructions from the ministry in Ukraine that given the situation we have to be prepared for any kind of incident… any kind of Russian activities outside the country,” he said.

Russia invaded Ukraine nine months ago in what it calls a “special military operation” that Kyiv and the West describe as an unprovoked, imperialist land grab.

The ambassador declined to give details of how the letter had been handled but said the injured worker had followed protocol and that the embassy would look into improving the system.

Spain’s High Court has opened a probe into the attack as a possible case of terrorism, a judicial source said.

Correos, the Spanish state-run postal company, told Reuters it is cooperating with the investigation.

The residential area surrounding the embassy in northwestern Madrid was cordoned off and a bomb disposal unit was deployed to the scene. Reuters footage showed scores of police officers, armed with assault rifles and blocking roads with vans, in the neighbourhood around the embassy.

Reporting by Belén Carreño, Jesus Aguado, David Latona, Emma Pinedo and Inti Landauro in Madrid, Tom Balmforth in Kyiv; writing by Charlie Devereux; editing by Aislinn Laing, Frank Jack Daniel, Mark Heinrich and Deepa Babington

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France, Germany, Spain agree on moving on with FCAS warplane development – Berlin

BERLIN/PARIS, Nov 18 (Reuters) – France, Germany and Spain have reached agreement on starting the next phase of development of a new fighter jet dubbed FCAS, Europe’s largest defence project at an estimated cost of more than 100 billion euros($103.4 billion), the German government said on Friday.

The Defence Ministry said in a statement that an industrial agreement was achieved after intense negotiations, confirming an earlier Reuters story saying the three countries and their respective industries had struck a deal.

The ministry said it was agreed at the highest government level that a cooperative approach on an equal footing would be pursued in the project, which is under overall French responsibility.

The Spanish Defence Ministry said Madrid would spend 2.5 billion euros ($2.58 billion) on the project, of which 525 million euros ($542 million) would be paid in 2023. The ministry said that the cabinet agreed to this expenditure but did not give other details.

“The political agreement on FCAS is a great step and – especially in these times – an important sign of the excellent Franco-German-Spanish cooperation,” German Defence Minister Christine Lambrecht said.

“It strengthens Europe’s military capabilities and secures important know-how not only for our, but also for the European industry.”

Previously, sources had said that the next development phase for the Future Combat Air System (FCAS) was expected to cost about 3.5 billion euros, to be shared equally by the three countries.

France’s Dassault (AM.PA), Airbus (AIR.PA) and Indra (IDR.MC) – the latter two representing Germany and Spain, respectively – are involved in the scheme to start replacing French Rafale and German and Spanish Eurofighters from 2040.

“Now, a number of formal steps in the respective countries have to be taken in order to allow a speedy contract signature which we will have to adhere to,” Airbus said in e-mailed comments.

French President Emmanuel Macron and then German Chancellor Angela Merkel first announced plans in July 2017 for FCAS, which will include a fighter jet and a range of associated weapons, including drones.

Lately, the project – originally meant to unify Europeans after the migration crisis and Britain’s decision to leave the European Union – has been a source of tension between the two countries.

Last month, Macron cancelled a joint Franco-German ministerial meeting over disagreements with Berlin on a wide range of issues including defence and energy projects.

Both sides had been struggling for more than a year to agree the next stage of FCAS’s development, although the French and German government broadly agreed on the project.

Some sources saw the blame lying with Dassault, as the company had refused to budge in a long-running row over intellectual property rights.

Other sources blamed Airbus for pushing for a bigger workshare of the Dassault-led project, insisting it should be given “equal footing” with the French company.

($1 = 0.9675 euros)

Writing by Sabine Siebold; Editing by Kirsti Knolle, Christoph Steitz, Louise Heavens and Emelia Sithole-Matarise

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