World Still Split Over Money as Clock Ticks on COP29

A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).
A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).
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World Still Split Over Money as Clock Ticks on COP29

A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).
A man stands next to the logo of the United Nations Climate Change Conference "COP 29" in Azerbaijan (Reuters).

A fresh draft deal published Thursday at the deadlocked COP29 climate talks shows rich and poor countries still divided as time runs out to strike a finance agreement for developing nations.
The streamlined text released in Azerbaijan recognizes developing countries need a trillion dollars per year to fight global warming, but does not present a much-sought figure needed to land the deal.
This will be the focus as nations go back to the negotiating table with just a day to go until COP29 is supposed to conclude in Baku, AFP reported.
The draft reflects the broad and opposing positions of developed countries -- which are obligated to pay climate finance -- and the developing countries that receive it.
"The new finance text presents two extreme ends of the aisle without much in between," said Li Shuo, director of the China climate hub at the Asia Society Policy Institute.
The main sticking points -- who should pay, how much and the type of funding -- remain unresolved in the slimmed-down 10-page document.
Ali Mohamed, the chair of the African Group of Negotiators, said the "elephant in the room" was the lack of a concrete number.
"This is the reason we are here... but we are no closer and we need the developed countries to urgently engage on this matter," said Mohamed, who is Kenya's climate envoy.
Rich countries have been under pressure to say how much they are willing to provide developing countries to wean off fossil fuels and build resilience against disaster.
Some developing countries have pushed for a final commitment of $1.3 trillion, mostly in grants from government coffers, and not loans they say add to debt.
The European Union and the United States, two of the biggest climate finance providers, had said they would not reveal a figure until the scope of any deal was much clearer.
"The fact there is no number specified for the climate finance goal is an insult to the millions of people on the frontlines bearing the brunt of climate change impacts," said Greenpeace's Jasper Inventor.
Mohamed Adow, a Kenyan climate activist, also lamented the lack of clarity around a figure.
"We came here to talk about money. The way you measure money is with numbers. We need a cheque but all we have right now is a blank piece of paper," said the founding director of think tank Power Shift Africa.
Developing countries, excluding China, will need $1 trillion a year in foreign assistance by 2030.
This number rises to $1.3 trillion annually by 2035, according to an expert economic assessment commissioned by the United Nations.
But many of the nations obligated to help cover this cost face political and fiscal pressures, and insist they cannot rely on their balance sheets alone.



US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
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US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo

The United States imposed new sanctions on Russia's Gazprombank on Thursday, the Treasury Department said, as President Joe Biden steps up actions to punish Moscow for its invasion of Ukraine before he leaves office in January.
The move, which wields the department's most powerful sanctions tool, effectively kicks Gazprombank out of the US banking system, bans its trade with Americans and freezes its US assets, Reuters reported.
Gazprombank is one of Russia's largest banks and is partially owned by Kremlin-owned gas company Gazprom. Since Russia's invasion in February 2022, Ukraine has been urging the US to impose more sanctions on the bank, which receives payments for natural gas from Gazprom's customers in Europe.
The fresh sanctions come days after the Biden administration allowed Kyiv to use US ATACMS missiles to strike Russian territory. On Tuesday, Ukraine fired the weapons, the longest range missiles Washington has supplied for such attacks on Russia, on the war's 1,000th day.
The Treasury also imposed sanctions on 50 small-to-medium Russian banks to curtail the country's connections to the international financial system and prevent it from abusing it to pay for technology and equipment needed for the war. It warned that foreign financial institutions that maintain correspondent relationships with the targeted banks "entails significant sanctions risk."
"This sweeping action will make it harder for the Kremlin to evade US sanctions and fund and equip its military," Treasury Secretary Janet Yellen said. "We will continue to take decisive steps against any financial channels Russia uses to support its illegal and unprovoked war in Ukraine."
Gazprombank said Washington's latest move would not affect its operations. The Russian embassy in Washington did not respond to requests for comment.
Along with the sanctions, Treasury also issued two new general licenses authorizing US entities to wind down transactions involving Gazprombank, among other financial institutions, and to take steps to divest from debt or equity issued by Gazprombank.
Gazprombank is a conduit for Russia to purchase military materiel in its war against Ukraine, the Treasury said. The Russian government also uses the bank to pay its soldiers, including for combat bonuses, and to compensate the families of its soldiers killed in the war.
The administration believes the new sanctions improve Ukraine's position on the battlefield and ability to achieve a just peace, a source familiar with the matter said.
COLLATERAL IMPACT
While Gazprombank has been on the administration's radar for years, it has been seen as a last resort because of its focus on energy and the desire to avoid collateral impact on Europe, a Washington-based trade lawyer said.
"I think that the current administration is trying to put as much pressure and add as many sanctions as possible prior to January 20th to make it harder for the next administration to unwind," said the lawyer, Douglas Jacobson.
Officials in Slovakia and Hungary said they were studying the impacts of the new US sanctions.
Trump would have the power to remove the sanctions, which were imposed under an executive order by Biden, if he wants to take a different stance, Jacobson said.
After Russia's invasion in 2022, the Treasury placed debt and equity restrictions on 13 Russian firms, including Gazprombank, Sberbank and the Russian Agricultural Bank.
The US Treasury has also worked to provide Ukraine with funds from windfall proceeds of frozen Russian assets.