Tag Archives: MEAST

World

EU wants Lebanese sanctions regime framework by end July

Leave a comment

PARIS, July 12 (Reuters) – The European Union said on Monday it wanted to agree by the end of July the legal framework for a sanctions regime targeting Lebanese leaders, but cautioned that the measure would not be immediately implemented.

Led by France, the EU is seeking to ramp up pressure on Lebanon’s squabbling politicians after 11 months of a crisis that has left Lebanon facing financial collapse, hyperinflation, electricity blackouts, and fuel and food shortages.

The move is part of broader international efforts to force a stable government capable of carrying out crucial reforms to emerge from nearly a year of political chaos and economic collapse following a blast that ravaged Beirut port.

“I can say that the objective is to complete this by the end of the month. I am not talking about the implementation of the regime, just the building of the regime according to sound legal basis,” EU foreign policy chief Josep Borrell told reporters in Brussels.

Nearly a year after the Aug. 4 explosion, which killed more than 200 people, wounded thousands and devastated swathes of the capital, Lebanon is still headed by a caretaker government.

“Lebanon has been in self-destruct mode for several months,” French Foreign Minister Jean-Yves Le Drian told reporters in Brussels. “Now there is a major emergency situation for a population that is in distress.”

The EU first needs to set up a sanctions regime that could then see individuals hit by travel bans and asset freezes, although it may also decide to not list anybody immediately.

Le Drian said there was now a consensus among the bloc’s 27 nations for a regime.

Criteria for EU sanctions such as travel bans and assets freezes for Lebanese politicians are likely to include corruption, obstructing efforts to form a government, financial misdeeds and human rights abuses, according to a diplomatic note seen by Reuters. read more

Reporting by Richard Lough and John Irish; writing by Michel Rose and John Irish; Editing by Hugh Lawson and Marguerita Choy

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

Lithuania says Belarus is flying in migrants, plans border barrier

Leave a comment

VILNIUS, July 7 (Reuters) – Lithuania on Wednesday accused Belarus of flying in migrants and said it would build a barrier on the border to prevent them crossing illegaly into its territory.

Belarus decided to allow migrants to cross into Lithuania in response to European Union sanctions imposed after Minsk forced a Ryanair flight to land on its territory and arrested a dissident blogger aboard.

Lithuanian Prime Minister Ingrida Simonyte said Belarus has been offering migrants flights to Minsk, citing evidence found on at least one migrant who had reached Lithuania.

“There are travel agencies, direct flights that connect Minsk with Baghdad for example, and there are agencies both in Belarus and other countries that operate and attract ‘tourists’ to Minsk,” Simonyte told Reuters.

She said the main airport from where people flew into Belarus was Baghdad, but she would not rule out people also flying in from Istanbul.

Belarusian President Alexander Lukashenko said on May 26 that his country would no longer prevent migrants from crossing its western border into the EU.

Simonyte said Lithuania would take action to stop migrants crossing the border by increasing patrols and building a barrier.

“We will begin building an additional physical barrier, which divides Lithuania and Belarus, which would be a certain sign and a certain deterrent to organisers of the illegal migration flows,” she told a news conference.

She also said the country, a Schengen free travel area member, was considering imposing border controls with neighbouring EU countries to stop the migrants travelling from it towards Western EU countries.

Reporting by Andrius Sytas; Writing by Alan Charlish; Editing by Jon Boyle and Giles Elgood

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

South Korea considers reimposing restrictions as COVID-19 cases surge

Leave a comment

  • S.Korea reports 1,212 new daily cases
  • Movement restrictions extended in Seoul
  • Officials warn tougher curbs could be reinstated
  • Delta variant being fuelled by young and unvaccinated

SEOUL, July 7 (Reuters) – South Korea reported its second highest number of daily new COVID-19 cases ever on Wednesday, just days after it began easing social distancing restrictions in some parts of the country, buoyed by an accelerated vaccine rollout.

With the majority of the 1,212 new cases coming from densely populated Seoul, officials extended movement curbs in the capital and surrounding regions for at least another week and are considering pushing restrictions back up to the highest level.

Prime Minister Kim Boo-kyum said the country’s fourth wave of the virus, fuelled by the highly contagious Delta variant, was spreading rapidly, especially among unvaccinated people in their 20s and 30s.

Kim urged people in that demographic to get tested preemptively “to protect not just yourself, but everyone in your family, friends, school and the country.”

“If the situation is not under control after monitoring for two to three days, it might leave us with no choice but to impose the strictest of all social distancing levels,” Kim said.

President Moon Jae-in ordered the military be mobilized to aid wider contact tracing and urged authorities to install additional testing centres in densely populated areas, presidential spokeswoman Park Kyung-mee told reporters on Wednesday.

The daily caseload was the worst since Dec. 25, when South Korea was experiencing a third wave of the pandemic.

Officials had been moving in recent weeks toward a full reopening of the country. Movement restrictions in much of the country were eased on July 1, although officials in greater Seoul held off as they watched case numbers beginning to creep up again. read more

Health experts said the relaxation of measures that restricted business operating hours and social gatherings outside of Seoul, along with the knowledge that further easings would be coming, led to public complacency, particularly in socially mobile younger people in the capital.

Around 85% of the new locally transmitted cases were in the Seoul metropolitan area, which is home to more than half of the country’s population.

“While the infection rate has dropped relatively in the people aged over 60 on the back of inoculation drive, the transmission continues in the unvaccinated group,” said Kim Tark, associate professor of infectious disease at Soonchunhyang University Bucheon Hospital.

“It’s a reminder to speed up vaccination for people under 60.”

VACCINES ARRIVE

Just 10% of the country’s population of 52 million people have been fully vaccinated, while 30% have received at least one shot, the majority of them aged over 60.

The Korean Medical Association urged the government to refrain from any hasty decisions to ease social distancing policies with vaccinations at low levels.

The country received 700,000 doses of the Pfizer/BioNTech vaccine (PFE.N), (22UAy.DE) from Israel on Wednesday under a swap arrangement, along with a separate shipment of 627,000 directly purchased doses. read more

Some of the new supply will be sent to greater Seoul for inoculation programmes due to start on July 13, authorities said.

Improved vaccination levels have helped lower South Korea’s mortality rate to 1.25% and the number of severe cases to 155 as of Wednesday, down significantly from 1.41% and 311 cases reported during the previous peak in late December.

The country has reported a total of 162,753 infections and 2,033 deaths during the pandemic.

Reporting by Sangmi Cha; Editing by Miyoung Kim and Jane Wardell

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

Iran begins process of making enriched uranium metal; U.S., E3 dismayed

Leave a comment

VIENNA/WASHINGTON, July 6 (Reuters) – Iran has begun the process ofproducing enriched uranium metal, the U.N. atomic watchdog said on Tuesday, a move that could help it develop a nuclear weapon and that three European powers said threatened talks to revive the 2015 Iran nuclear deal.

Iran’s steps, which were disclosed by the International Atomic Energy Agency and which Tehran said were aimed at developing fuel for a research reactor, also drew criticism from the United States, which called them an “unfortunate step backwards.”

U.S. and European officials made clear that Iran’s decision would complicate, and potentially torpedo, indirect U.S.-Iranian talks seeking to bring both nations back into compliance with the 2015 deal, which was abandoned by former U.S. President Donald Trump.

The deal imposed curbs on Iran’s nuclear programme to make it harder for Tehran to develop fissile material for nuclear weapons in return for the lifting of economic sanctions. After Trump withdrew, Iran began violating many of its restrictions.

Tehran has already produced a small amount of uranium metal this year that was not enriched. That is a breach of the deal, which bans all work on uranium metal since it can be used to make the core of a nuclear bomb. read more

“Today, Iran informed the Agency that UO2 (uranium oxide) enriched up to 20% U–235 would be shipped to the R&D laboratory at the Fuel Fabrication Plant in Esfahan, where it would be converted to UF4 (uranium tetrafluoride) and then to uranium metal enriched to 20% U–235, before using it to manufacture the fuel,” an IAEA statement said.

A confidential IAEA report seen by Reuters said the agency had confirmed that Iran had taken the second of the four steps described, making clear it has begun the process.

Britain, France and Germany said on Tuesday they had “grave concern” about Iran’s decision, which violates the nuclear deal formally named the Joint Comprehensive Plan of Action (JCPOA). read more

“Iran has no credible civilian need for uranium metal R&D and production, which are a key step in the development of a nuclear weapon,” they said in a joint statement issued by Britain’s foreign ministry.

“With its latest steps, Iran is threatening a successful outcome to the Vienna talks despite the progress achieved in six rounds of negotiations,” they said, and urged Iran to return to the talks, which began in April and adjourned on June 20. No date has been set for a next round.

U.S. State Department spokesman Ned Price said that Washington was not setting a deadline for the talks but noted “that as time proceeds Iran’s nuclear advances will have a bearing on our view of returning to the JCPOA.”

Price said the United States found it “worrying” that Iran was continuing to violate the agreement “especially with experiments that have value for nuclear weapons research.

“It’s another unfortunate step backwards for Iran,” he said.

Reporting by Francois Murphy in Vienna and by Humeyra Pamuk and Arshad Mohammed in Washington;
Additional reporting by Doina Chiacu, Jonathan Landay and Simon Lewis in Washington and by David Milliken in London;
Writing by Francois Murphy and Arshad Mohammed
Editing by David Goodman and Sonya Hepinstall

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

Egypt notified that Ethiopia has resumed filling of giant dam

Leave a comment

Ethiopia’s Grand Renaissance Dam is seen as it undergoes construction work on the river Nile in Guba Woreda, Benishangul Gumuz Region, Ethiopia September 26, 2019. REUTERS/Tiksa Negeri/File Photo

CAIRO, July 5 (Reuters) – Egypt’s irrigation minister said on Monday he had received official notice from Ethiopia that it had begun filling the reservoir behind its giant hydropower dam, the Grand Ethiopian Renaissance Dam (GERD), for a second year.

Egypt has informed Ethiopia of its categorical rejection of the measure, which it regards as a threat to regional stability, Irrigation Minister Mohamed Abdel Aty said in a statement.

Ethiopia says the dam on its Blue Nile is crucial to its economic development and providing power to its population.

Egypt views the dam as a grave threat to its Nile water supplies, on which it is almost entirely dependent. Sudan, another downstream country, has expressed concern about the safety of the dam and the impact on its own dams and water stations.

The volume of the accumulating water would depend on the amount of seasonal rain that fell in Ethiopia, Egyptian Irrigation Ministry spokesman Mohamed Ghanim told a local TV channel.

“We won’t see any effect now on the Nile. We have a month or a month and a half ahead of us,” he said.

Egypt and Sudan have waged a diplomatic campaign for a legally binding deal over the dam’s operation, but talks have repeatedly stalled.

The diplomatic push intensified ahead of the first filling of the dam with last summer, and again in recent weeks.

The U.N. Security Council is expected to discuss the issue on Thursday, and Abdel Aty had written to the council to inform it of the latest developments, the statement said.

Ethiopia says it is finally exercising its rights over Nile waters long controlled by its downstream neighbours.

Its ambassador to Khartoum said on Sunday that Egypt and Sudan already knew the details of the first three years of the dam’s filling, and that the issue should not be brought before the Security Council as it was not a matter of peace and security.

Reporting by Momen Saeed Atallah, Omar Fahmy and Nafisa Eltahir, Writing by Aidan Lewis; editing by Diane Craft and Sonya Hepinstall

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

EXCLUSIVE After pressuring telecom firms, Myanmar’s junta bans executives from leaving

Leave a comment

SINGAPORE, July 5 (Reuters) – Senior foreign executives of major telecommunications firms in Myanmar have been told by the junta that they must not leave the country without permission, a person with direct knowledge of the matter said.

A confidential order from Myanmar’s Posts and Telecommunications Department (PTD) in mid-June said senior executives, both foreigners and Myanmar nationals, must seek special authorisation to leave the country, the person said.

A week later, telecom companies were sent a second letter telling them they had until Monday July 5 to fully implement intercept technology they had previously been asked to install to let authorities spy on calls, messages and web traffic and to track users by themselves, the source said. Reuters has not seen the orders.

The directives follow pressure on the companies from the junta, which is facing daily protests from its opponents and a growing number of insurgencies to activate the spyware technology. read more

A spokesman for the military did not answer multiple requests for comment. The junta has never commented on the electronic surveillance effort, but announced soon after seizing power its aim to pass a cybersecurity bill that would require telecoms providers to provide data when requested and remove or block any content deemed to be disrupting “unity, stabilisation, and peace”. It also amended privacy laws to free security forces to intercept communications.

The travel ban comes after intensified pressure from military officials to finish the implementation of the surveillance equipment. The source, who spoke on condition of anonymity for fear of reprisals, said the ban was meant to pressure telecoms firms to finish activating the spyware technology, although the order itself does not specify a reason.

Soldiers stand next to military vehicles as people gather to protest against the military coup, in Yangon, Myanmar, February 15, 2021. REUTERS/Stringer/File Photo

Three other telecoms sources, also speaking on condition of anonymity, said the authorities had stepped up pressure on the companies to implement the intercept, but declined to elaborate further. Two sources said companies had been warned repeatedly by junta officials not to speak publicly or to the media on the intercept.

Telenor declined to comment. There was no immediate response to requests for comment from Ooredoo, state-owned MPT and Mytel, a joint venture between Vietnam’s Viettel and a Myanmar military-owned conglomerate.

Months before the Feb. 1 coup, telecom and internet service providers were ordered to install intercept spyware to allow the army to eavesdrop on the communications of citizens, Reuters reported in May. read more

Reuters was not able to establish how broadly the surveillance technology has been installed and deployed, but four sources said Norway’s Telenor ASA (TEL.OL) and Qatar’s Ooredoo QPSC (ORDS.QA) had yet to comply in full.

Among the military’s first actions on Feb. 1 was to cut internet access and it has still not been fully re-established, with telecoms given regular lists of websites and activist phone numbers to block.

The moves have left the future unclear for Myanmar’s telecom sector, which had been one of the fastest-growing globally. Telenor said on Friday it is evaluating the future of its operations in the country, with a source telling Reuters it is eying a sale of its Myanmar unit. read more

Reporting by Fanny Potkin in Singapore; Additional reporting by Poppy McPherson in Bangkok; Editing by Matthew Tostevin, William Mallard and Daniel Wallis

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

Saudi Arabia pushes back on UAE opposition to OPEC+ deal

Leave a comment

DUBAI, July 4 (Reuters) – Saudi Arabia’s energy minister pushed back on Sunday against opposition by fellow Gulf producer the United Arab Emirates to a proposed OPEC+ deal and called for “compromise and rationality” to secure agreement when the group reconvenes on Monday.

It was a rare public spat between allies whose national interests have increasingly diverged, spilling over into OPEC+ policy setting at a time consumers want more crude to aid a global recovery from the COVID-19 pandemic.

OPEC+, which groups the Organization of the Petroleum Exporting Countries and its allies, voted on Friday to raise output by some 2 million barrels per day from August to December 2021 and to extend remaining cuts to the end of 2022, but UAE objections prevented agreement, sources had said. read more

“The extension is the basis and not a secondary issue,” Saudi Energy Minister Prince Abdulaziz bin Salman told Saudi-owned Al Arabiya television channel.

“You have to balance addressing the current market situation with maintaining the ability to react to future developments … if everyone wants to raise production then there has to be an extension,” he said, noting uncertainty about the course of the pandemic and output from Iran and Venezuela.

The UAE said on Sunday it backs an output increase from August but suggested deferring to another meeting the decision on extending the supply pact. It said baseline production references – the level from which any cuts are calculated – should be reviewed for any extension. read more

The standoff could delay plans to pump more oil through to the end of the year to cool oil prices.

“Big efforts were made over the past 14 months that provided fantastic results and it would be a shame not to maintain those achievements. … Some compromise and some rationality is what will save us,” the Saudi energy minister said.

“We are looking for a way to balance the interests of producer and consumer countries and for market stability in general, especially when shortages are expected due to the decrease in stockpiles,” he added.

Responding to oil demand destruction caused by the COVID-19 pandemic, OPEC+ agreed last year to cut output by almost 10 million bpd from May 2020, with plans to phase out the curbs by the end of April 2022. Cuts now stand at about 5.8 million bpd.

OPEC+ sources said the UAE contended its baseline was originally set too low, but was ready to tolerate if the deal ended in April 2022. The UAE has ambitious production plans and has invested billions of dollars to boost capacity.

Prince Abdulaziz, who stressed Riyadh’s “sacrifice” in making voluntary cuts, said no country should use a single month as a baseline reference, adding there was a mechanism to file objections and that “selectivity is difficult”.

The regional alliance that saw Saudi Arabia and the UAE join forces to project power in the Middle East and beyond — coordinating use of financial clout and, in Yemen, military force — has loosened as national interests came to the fore.

Abu Dhabi extricated itself from the Yemen war in 2019, saddling Riyadh. Saudi Arabia this year took the lead to end a row with Qatar despite reluctance from its Arab allies.

The kingdom has also moved to challenge the UAE’s dominance as the region’s business and tourism hub as Riyadh vies for foreign capital to diversify its economy away from oil.

Reporting by Marwa Rashad in London, Ghaida Ghantous in Dubai and Alaa Swilam in Cairo; Writing by Ghaida Ghantous; Editing by Hugh Lawson, Peter Cooney and Daniel Wallis

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

EXCLUSIVE New Saudi airline plan takes aim at Emirates, Qatar Airways

Leave a comment

DUBAI, July 2 (Reuters) – Saudi Arabia plans to target international transit passenger traffic with its new national airline, going head-to-head with Gulf giants Emirates and Qatar Airways and opening up a new front in simmering regional competition.

Crown Prince Mohammed bin Salman, who is pushing economic diversification to wean Saudi Arabia off oil revenues and create jobs, announced a transportation and logistics drive on Tuesday aimed at making the kingdom the fifth-biggest air transit hub.

Two people familiar with the matter said the new airline would boost international routes and echo existing Gulf carriers by carrying people from one country to another via connections in the kingdom, known in the industry as sixth-freedom traffic.

The transport ministry, which has not released details of the plans, did not respond to a Reuters request for comment.

The strategy marks a shift for Saudi Arabia whose other airlines, like state-owned Saudia and its low cost subsidiary flyadeal, mostly operate domestic services and point-to-point flights to and from the country of 35 million people.

The Saudi expansion threatens to sharpen a battle for passengers at a time when travel has been hit by the coronavirus pandemic. Long-haul flights like those operated by Emirates and Qatar Airways are forecast to take the longest to recover.

Riyadh has already moved to compete with the UAE, the region’s business, trade and tourism hub. The Saudi government has said that from 2024 it would stop giving contracts to firms that do not set up regional headquarters in the kingdom.

“Commercial competition in the aviation industry has always been fierce, and regional competition is heating up. Some turbulence in regional relations is on the horizon,” said Robert Mogielnicki, resident scholar at the Arab Gulf States Institute.

Dubai, the world’s largest international air travel hub, has announced a five-year plan to grow air and shipping routes by 50% and double tourism capacity over the next two decades.

Riyadh has already moved to compete with the UAE, the region’s business, trade and tourism hub. The Saudi government has said that starting 2024 it would stop giving contracts to firms that do not set up regional headquarters in the kingdom.

Saudi Crown Prince Mohammed bin Salman attends a session of the Shura Council in Riyadh, Saudi Arabia, November 20, 2019. Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS

Read More

Prince Mohammed is trying to lure foreign capital to create new industries including tourism, with ambitions to increase overall visitors to 100 million by 2030 from 40 million in 2019.

“Saudi Arabia has the ability to push forward with its aviation and tourism strategy when others will be retreating and retracting,” aviation consultant Brendan Sobie said.

“It is a risky strategy, but also sensible given its position and overall diversification objective.”

TOURISM PUSH

However, any airline requires substantial start-up capital and experts warn that if Saudi Arabia’s ambition is to compete on transit flights it may have to contend with years of losses.

Saudi Arabia’s large population generates direct traffic that could cushion losses as a new airline targets international transit traffic, aviation consultant John Strickland said.

Emirates reported a record $5.5 billion annual loss last month with the pandemic forcing Dubai to step in with $3.1 billion in state support.

Etihad Airways has scaled back its ambitions after it spent billions of dollars to ultimately unsuccessfully compete in building a major hub in United Arab Emirates capital Abu Dhabi.

People familiar with the matter said the new airline could be based in the capital Riyadh, and that sovereign wealth fund PIF is helping set it up.

PIF did not respond to a request for comment.

Saudi Arabia is developing non-religious tourism with mega projects backed by PIF. It has launched social reforms to open up the country, the birthplace of Islam, including allowing public entertainment.

Reporting by Alexander Cornwell; Editing by Tim Hepher and Alexander Smith

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

Saudi Arabia plans new national airline as it diversifies from oil

Leave a comment

CAIRO, June 29 (Reuters) – Saudi Arabia’s Crown Prince Mohammed bin Salman announced plans on Tuesday to launch a second national airline as part of a broader strategy to turn the kingdom into a global logistics hub as it seeks to diversify from oil.

The creation of another flag carrier would catapult Saudi Arabia into the 5th rank globally in terms of air transit traffic, official state media reported, without giving details on when and how the airline would be created.

Prince Mohammad has been spearheading a push for Saudi Arabia, the biggest Arab economy and the largest country in the Gulf geographically, to boost non-oil revenues to about 45 billion riyals ($12.00 billion) by 2030.

Making the kingdom a global logistics hub, which includes the development of ports, rail and road networks, would increase the transport and logistics sector’s contribution to gross domestic product to 10% from 6%, state news agency SPA said.

“The comprehensive strategy aims to position Saudi Arabia as a global logistics hub connecting the three continents,” Prince Mohammed was quoted as saying in the SPA report.

“This will help other sectors like tourism, haj and umrah to achieve their national targets.”

The addition of another airline would increase the number of international destinations from Saudi Arabia to more than 250 and double air cargo capacity to more than 4.5 million tonnes, the SPA report said.

With current flag bearer Saudi Arabian Airlines (Saudia), the kingdom has one of the smallest airline networks in the region relative to its size. Saudia has struggled with losses for years and like global peers, has been hit hard by the coronavirus pandemic.

Local media reported earlier this year that the kingdom’s sovereign wealth fund, the Public Investment Fund, (PIF), planned to build a new airport in Riyadh as part of the new airline launch, without giving further details.

The fund is the main vehicle for boosting Saudi Arabian investments at home and abroad as the young prince, known in the West as MbS, seeks to diversify the kingdom’s oil-heavy economy through his Vision 2030 strategy.

($1 = 3.7503 riyals)

Reporting by Nayera Abdallah and Alaa Swilam; Writing by Ghaida Ghantous and Marwa Rashad; Editing by Sonya Hepinstall, Marguerita Choy and Jane Wardell

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

World

Military coup puts Telenor’s future in Myanmar on the line

Leave a comment

Since Myanmar’s military ordered telecoms operators to shut their networks in an effort to end protests against its February coup, Telenor’s business there has been in limbo.

As one of the few Western companies to bet on the South East Asian country after it emerged from military dictatorship a decade ago, the return to army rule led to a $783 million write-off this week for Norway’s Telenor (TEL.OL).

The Norwegian state-controlled firm, one of the biggest foreign investors in Myanmar, must now decide whether to ride out the turmoil, or withdraw from a market which last year contributed 7% of its earnings.

“We are facing many dilemmas,” Telenor Chief Executive Sigve Brekke told Reuters this week, highlighting the stark problems facing international firms under increased scrutiny over their exposure in Myanmar, where hundreds have been killed in protests against the Feb. 1 coup.

While Telenor plans to stay for now, the future is uncertain, Brekke said in a video interview.

Although Telenor had won praise for supporting what at the time was a fledgling democracy, activist groups have long voiced concerns about business ties to the military, which have intensified since the army retook control of the country.

Chris Sidoti, a United Nations expert on Myanmar, said Telenor should avoid payments such as taxes or licence fees that could fund the military directly or indirectly, and that if it cannot be independently determined that Telenor is “doing more good than harm” in Myanmar, then it should withdraw.

However, Espen Barth Eide, who was Norway’s foreign minister at the time Telenor gained a licence in Myanmar in 2013, told Reuters that Telenor should stay and use its position as a well-established foreign firm to be a vocal critic of the military.

A spokeswoman for Norway’s Ministry of Trade, Industry and Fisheries, which represents the Norwegian government as a shareholder, said on Thursday that “under the current circumstances Telenor faces several dilemmas in Myanmar”.

“From a corporate governance perspective the investment in Myanmar is a responsibility of the company’s Board and Management. Within this framework the Ministry as a shareholder keep a good dialogue with Telenor regarding the situation,” the spokeswoman added in an emailed response to Reuters.

The Myanmar junta, which has said it seized power because its repeated complaints of fraud in last year’s election were ignored by the election commission, has blamed protesters and the former ruling party for instigating violence.

And it said on March 23 that it had no plans to lift network restrictions. It has not commented on the curbs since and did not answer Reuters calls on Thursday.

NEW MARKET

Telenor is no stranger to operating under military rule in both Pakistan and Thailand, where it challenged the Thai junta over what it said was an order to block social media access.

At around the same time, Telenor was signing up its first customers in Myanmar.

Its then-CEO, Jon Fredrik Baksaas, told Reuters that Telenor had thought “a lot” about the risk that Myanmar’s experiment with democracy might not last.

“But we argued at that time that, when we get in a western company that delivers telecommunication in a country, we stand also with some responsibility, and a bit of a guarantee that things are done correctly,” Baksaas said.

Its position had support internationally at the time after Barack Obama became the first U.S. President to visit Myanmar in 2012, the year after a military junta was officially dissolved and a quasi-civilian government installed.

For its part, the Norwegian government, which owns a majority of Telenor, had long supported democracy in Myanmar, hosting radio and TV stations reporting on it under military rule.

And in 1991, the Norwegian Nobel Committee gave the Nobel Peace Prize to Aung San Suu Kyi, who spent 15 years under house arrest in Myanmar before leading a civilian government which retained power in last year’s election.

Suu Kyi was detained after the coup and charged with offences that her lawyers say are trumped up.

While Norway was supportive of Telenor’s Myanmar venture, the government also warned of the risks, Barth Eide, Norway’s foreign minister at the time, said.

“We told them that it’s a complicated country which had a harsh military dictatorship. Telenor was very much aware of it … It’s not like they were novices,” he added.

Telenor was one of two foreign operators granted licences in 2013, alongside Qatar’s Ooredoo (ORDS.QA). The other operators in Myanmar are state-backed MPT and Mytel, which is part-owned by a military-linked company.

About 95% of Telenor’s 187 million customers worldwide are in Asia and it has around 18 million customers in Myanmar, serving a third of its 54 million population.

‘NO DIRECT LINKS’

For Telenor, doing business in Myanmar had its challenges, including trying to avoid commercial ties to the military.

Former CEO Baksaas said for the first couple of weeks after it began operations in Myanmar, staff had to sit on the office floor because Telenor refused to pay bribes to customs officials for furniture which it had imported.

He also said they had to navigate corruption risks when acquiring land to build mobile towers.

Then there was dealing with the military, whose economic interests range from land to firms involved in mining and banking. The military has faced allegations of human rights abuses including persecuting minorities and violently suppressing protests going back decades. It has repeatedly denied such allegations.

Activist group Justice for Myanmar said in a 2020 report that Telenor had shown “an alarming failure” in its human rights due diligence over a deal struck in 2015 to build mobile towers that involved a military contractor.

Another report by the United Nations in 2019 said Telenor was renting offices in a building built on military-owned land.

The report said firms in Myanmar should end all ties with the military due to human rights abuses.

A Telenor spokesperson said in an email on April 9 responding to Reuters questions that it had addressed the matter of the 2015 deal, without elaborating, and that its choice of office was “the only viable option” given factors like safety.

“Telenor Myanmar has been focused on having minimal exposure to the military and have no direct links to military-controlled entities,” the spokesperson said.

Since the coup, Telenor has cut ties with three suppliers after finding links to the military, the spokesperson added.

BALANCING ACT

On the day of the coup, the military ordered Telenor and other operators to shut down networks. Telenor criticised the move but complied. Services were allowed to resume but there have been intermittent requests to close since, and the mobile internet has been shut since March 15.

Ooredoo has also said it “regretfully complied” with directives to restrict mobile and wireless broadband in Myanmar, which hit its first quarter earnings. It declined further comment on the outlook for its Myanmar business.

Like other operators, Telenor paid license fees to the now military-controlled government in March, which critics argue may help it finance repression of public protest.

Telenor said in the emailed response to Reuters that it made the payment “under strong protest against recent developments”.

One of its major shareholders, Norway’s KLP, said it had been in a dialogue with Telenor after the coup to ensure it was identifying the human rights risks.

“It is a challenging situation because Telenor cannot choose what it can and can’t do. They get their directives from the authorities,” said Kiran Aziz, senior analyst for responsible investments at KLP. “It is difficult to assess how positive Telenor’s contribution can be in this context.”

Weighing up human rights is just one of the dilemmas Telenor now faces, said CEO Brekke, alongside safely serving its customers and maintaining network access for them.

“We work on that balance every single day,” he said.

And although that balance, for now, is tilted to Telenor staying in the country, it is not a given.

“We make a difference like we have done since we arrived. But with the situation being this unpredictable, it is impossible in many ways to speculate about the future and how this will develop,” Brekke added.

Our Standards: The Thomson Reuters Trust Principles.

Read original article here