Israel Military Reservists Threaten Over Judicial Revamp

A person holds a flag during a demonstration at Ben Gurion International Airport as a response to Israeli Prime Minister Benjamin Netanyahu and his nationalist coalition government's judicial overhaul, in Lod, Israel July 3, 2023. (Reuters)
A person holds a flag during a demonstration at Ben Gurion International Airport as a response to Israeli Prime Minister Benjamin Netanyahu and his nationalist coalition government's judicial overhaul, in Lod, Israel July 3, 2023. (Reuters)
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Israel Military Reservists Threaten Over Judicial Revamp

A person holds a flag during a demonstration at Ben Gurion International Airport as a response to Israeli Prime Minister Benjamin Netanyahu and his nationalist coalition government's judicial overhaul, in Lod, Israel July 3, 2023. (Reuters)
A person holds a flag during a demonstration at Ben Gurion International Airport as a response to Israeli Prime Minister Benjamin Netanyahu and his nationalist coalition government's judicial overhaul, in Lod, Israel July 3, 2023. (Reuters)

More than 1,100 Israeli air force reservists -- including fighter pilots -- threatened to suspend volunteer service as protests intensified Saturday ahead of final votes on a bill that aims to overhaul Israel's judiciary.

The judicial revamp has split the nation and sparked one of the biggest protest movements in Israel's history, with weekly demonstrations often drawing tens of thousands.

Prime Minister Benjamin Netanyahu's hard-right government unveiled in January the plans to limit the judiciary's powers, which the protesters view as a threat to democracy.

On Friday at least 1,142 air force reservists declared their intention to suspend volunteer service if parliament passes the bill next week.

"We all share a responsibility to stop the deep division, polarisation and rift among the people," the reservists said in a declaration whose signatories included 235 fighter pilots, 173 drone operators, and 85 commando soldiers, according to AFP.

They called on the government to "arrive at a broad consensus, strengthen the trust of all parts of the people in the judicial system and maintain its independence."

Any legislation carried out in an "unreasonable manner would erode my agreement to keep risking my life and would force me, with great sorrow, to suspend my voluntary reserve service," the signatories said.

Most Israelis who complete their mandatory military service are expected to attend reserve duty every year for a specific period.

It is unclear how the country's military capabilities would be affected if reservists followed through on their threat, but it comes against a backdrop of worsening Israeli-Palestinian violence.

Minister Yoav Gallant said he was "taking measures in order to reach a wide consensus".

Netanyahu, too, said late Thursday he was "still trying to reach an agreement with the opposition", mainly on the "reasonability" clause that allows the judiciary to strike down government decisions.

The bill is due for second and third readings in parliament on Monday.

If approved, it would be the first major component of the proposed legal overhaul to become law.

Other proposals include giving the government a greater say in the appointment of judges.

Thousands of protesters, including Guy Maidan, have been marching since Wednesday from the commercial hub of Tel Aviv to the seat of Parliament in Jerusalem, where they were to arrive for a demonstration later Saturday.

"We will keep fighting... unless this extreme government goes away," Maidan told AFP.

Young and old, he said, are keen on "saving Israel from going down towards not being a liberal democracy."

Netanyahu's government, which includes extreme-right and ultra-Orthodox Jewish allies, argues that the changes to the judicial system are necessary to ensure a better balance of power.

Critics accuse Netanyahu, who is on trial on corruption charges he denies, of trying to use the reforms to quash possible judgements against him.

He rejects the accusation.



Russia Hits Back with Multi-billion Penalty on Austrian Bank

The logo of Raiffeisen Bank International (RBI) is seen at its headquarters in Vienna, Austria, March 14, 2023. REUTERS/Leonhard Foeger/File
The logo of Raiffeisen Bank International (RBI) is seen at its headquarters in Vienna, Austria, March 14, 2023. REUTERS/Leonhard Foeger/File
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Russia Hits Back with Multi-billion Penalty on Austrian Bank

The logo of Raiffeisen Bank International (RBI) is seen at its headquarters in Vienna, Austria, March 14, 2023. REUTERS/Leonhard Foeger/File
The logo of Raiffeisen Bank International (RBI) is seen at its headquarters in Vienna, Austria, March 14, 2023. REUTERS/Leonhard Foeger/File

A Russian court's order for Austria's Raiffeisen Bank International to pay 2 billion euros ($2.1 billion) in damages for a collapsed deal shows Moscow's determination to strike back at the West, with companies bearing the brunt of the fallout.

Monday's ruling, delivered to a courtroom where armed men in balaclavas sat among those involved in the case, is a blow to the biggest Western bank in Russia, which has made billions of profits there during nearly three years of conflict with Ukraine.

It marks a watershed for the bank that has provided a payments bridge for Russia's middle class and companies into the West, requiring Raiffeisen to set aside a substantial amount for the loss even as it seeks to challenge the ruling, Reuters reported.

The judgement, made as Donald Trump was being sworn in as US president, serves as a warning to others, and prompted accusations by Raiffeisen's lawyer that the court was biased and that the masked men were there to intimidate.

The Russian lawyers taking the action against Raiffeisen said the men in the courtroom were bailiffs there to ensure order, accusing their opponents of "bombarding the court with unfounded petitions".

The penalty, issued by a court in the Russian exclave of Kaliningrad, follows the collapse of a deal involving Raiffeisen to release a Russian-owned stake in an Austrian builder, which unravelled under pressure from Washington. Now Raiffeisen has been lumbered with the bill.

"This is a final warning to all Western companies that you cannot do business with Putin's Russia," said Helmut Brandstaetter, a liberal Austrian lawmaker in the European Parliament.

The move also coincides with a deterioration in relations between Russia and Austria, long close to Moscow but which has gradually been unwinding its ties, abandoning a multibillion-dollar deal in recent weeks to buy Russian gas.

"Raiffeisen was long enough warned to pull out," said Brandstaetter. "It also shows that any continued bond between Austria and Russia will lead to disaster."

INEVITABLE RETALIATION

The ruling adds to worries for Western firms still operating in Russia, which include the likes of food companies PepsiCo , Procter & Gamble and Mondelez, and Italian bank UniCredit.

Ian Massey of risk consultancy S-RM said it was part of "pressure tactics, including increasingly punitive exit terms, asset seizures, and now ... huge fines."

"In the context of Russia's increasing diplomatic and economic isolation, retaliation against Western corporate symbols was nigh-on inevitable."

Monday's decision sees Russia follow through on previous threats to target privately-owned assets.

Last May, Moscow said it would identify US property that could be used for compensation over losses from the seizure of frozen Russian assets in the United States.

Moscow has already seized some assets and forced through sales to hand-picked buyers, as was the case for French yoghurt maker Danone and Danish brewer Carlsberg.

The Kremlin controls which companies are allowed to sell up and demands a heavy discount on the sale price.

Almost three years after Russia sent troops into Ukraine, Raiffeisen's continued presence in Russia underlines the lingering ties between Moscow and Vienna - with Vienna having served as a hub for cash from Russia and former Soviet states.

That bond put Raiffeisen and Austria on the front line of a global push by the United States to isolate Russia.

The court dispute followed the failure of a deal that Raiffeisen hoped would allow it to unlock some of its frozen billions in Russia.

The case was centred on a claim by Russian investment company Rasperia against builder Strabag, its Austrian shareholders and the Russian arm of Raiffeisen.

Raiffeisen had sought to buy a stake in Vienna-based Strabag from Rasperia, which Strabag had linked to Russian tycoon Oleg Deripaska.

Washington identified Rasperia as part of a group of Russian companies still controlled by Deripaska, when it imposed sanctions on some of those involved, scuppering the deal.

A spokesperson for Deripaska reiterated that he had no links with the company at the heart of the dispute with Raiffeisen.

Raiffeisen has around 6 billion euros in Russia, earned from international payments and from billions of euros of Russian deposits, a person with knowledge of the matter has told Reuters.