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Russian crackdown brings pro-Navalny protests to halt



As a few thousand people marched in the southern Russian city of Rostov-na-Donu last month, local schoolteacher Alexander Ryabchuk posted videos of the protest on his Instagram page.

The following week, the headmistresses of both schools where Ryabchuk taught called him into their offices, warned him that “very serious people” had complained about his social media activity, and fired him on the spot after he refused to delete the posts.

One school warned him about the complaints, and at the other a “serious” person turned up to pressure him. Within days, police raided Ryabchuk’s apartment and arrested him; a court jailed him for five days, ostensibly for blocking traffic during the protest.

“They obviously wanted to scare me and take away my livelihood,” Ryabchuk, 31, told the Financial Times. “But I think they’re more scared than I am. I only obeyed the law and my conscience.”

Ryabchuk’s ordeal is a sign of jitters in the Kremlin about nationwide protests sparked by the arrest of Alexei Navalny, president Vladimir Putin’s most prominent opponent.

Police arrested more than 10,000 people at protests on consecutive weekends in January, according to independent monitor OVD-Info, including nearly 1,500 on the day Navalny was sentenced to three-and-a-half years in prison last week. Nearly 1,300 of them were sentenced to brief jail terms in Moscow and St Petersburg alone, while more than 90 face more serious criminal charges, according to the interior ministry. At least 140 protesters were beaten by police according to Apologia Protests, a public defenders’ association that represents some of the demonstrators.

Police detain a man during a rally in support of jailed opposition leader Alexei Navalny in Saint Petersburg © Olga Maltseva/AFP via Getty Images

The crackdown has shocked many, even in a country harbouring few illusions about the Kremlin’s shrinking tolerance for dissent. Riot police have shut down large parts of central Moscow and St Petersburg, viciously beaten protesters with batons, and detained journalists.

Though several of those jailed alleged to the FT that police falsified charges against them, the Kremlin has accused western countries of organising the protests. “There are no repressions,” Dmitry Peskov, Putin’s spokesman, told reporters last week. “There are measures taken by the police against lawbreakers and participants in illegal protests.”

For now, the harsh treatment of protesters appears to have had the desired effect. Leonid Volkov, Navalny’s chief of staff, admitted this week that “peaceful street protests have been put down through unprecedented police violence”.

Volkov put off fresh protests until the spring, then called on Russians to wave their phone flashlights outside their front doors on Sunday evening, so that “riot police can’t stop it and everyone can come”. Several of Navalny’s other top aides also face years in prison on charges of violating pandemic health rules.

Though sympathy for the protests is widespread, many Russians nevertheless oppose the rallies. According to a poll released by the independent Levada Center on Wednesday, 39 per cent of those surveyed said they disapproved of the protests, with only 22 per cent approving. Though 43 per cent of respondents said protesters were motivated by “pent-up anger at the situation in the country”, 28 per cent said the protesters had probably been paid to attend.

State TV portrays Navalny as a CIA agent bent on destroying Russia, while official pressure on independent journalists has been considerable. More than 80 reporters were detained in Moscow on January 31 alone, according to a journalists’ trade union.

Riot police search a detained man during a protest © Natalia Kolesnikova/AFP via Getty Images

In Vladivostok on the Pacific coast, riot police raided independent reporter Gennady Shulga’s apartment early on Saturday morning and filmed a mock interrogation — even though he is only a witness in a protest-related case. The video then mysteriously appeared online, a move Shulga said he felt was aimed at intimidating him from covering future protests.

The crackdown, however, does little to address the underlying discontent that fuelled the protests in the first place, said Alexander Tevdoy-Bourmouli, a political-science professor at Moscow’s MGIMO university. “There’s a logic to it, but it’s not very rational, because instead of solving the problems, it drives them into a corner, where they’ll blow up into a more serious crisis,” he said.

Tevdoy-Bourmouli, a foreign policy specialist, witnessed the Kremlin’s reaction first-hand in January when he and his daughter were arrested after they exited a metro station in central Moscow. Police then claimed in court that he held up traffic and chanted slogans. Though Tevdoy-Bourmouli insisted he had done no such thing and his lawyer attempted to present evidence of his type 1 diabetes — which, under Russian law, makes him ineligible for short-term detention — a judge jailed him for 12 days.

A woman holding an icon kneels in front of a group of riot police during a rally © Kirill Kudryavtsev/AFP via Getty Images

“It’s no secret. They rubber-stamp hundreds of thousands of documents and have policemen who didn’t even do the arrest sign them,” Tevdoy-Bourmourli said.

As the record arrests pushed Moscow’s jails to breaking point, protesters spent several sleepless nights in crowded police station cells. “There were portraits of Putin everywhere . . . [B]being surrounded by him was really creepy,” said Maryam Salarzai, 23.

She found herself among hundreds of protesters sent to a detention centre for migrants in Sakharovo, a suburb of northern Moscow. The facility was so overwhelmed by the sudden influx of detainees that as many as 28 were held at a time in cells meant for four before guards moved them. Though Peskov acknowledged the overcrowding, he blamed the detainees, saying that “this situation wasn’t provoked by law enforcement, but by participation in unsanctioned protest”.

Some of those who had been held at Sakharovo told the FT they were forced to relieve themselves in a hole in the floor in full sight of the other inmates, denied regular access to water, and given inedible food. Others complained guards refused to pass on packages sent by friends and relatives.

To keep their spirits up, detainees chanted “Putin is a thief!” during exercise hours, sang protest song, and posed for a video in the detention centre’s courtyard. Later, investigators threatened some prisoners with criminal prosecution for insulting government officials, according to OVD-Info.

The authorities have already vowed to suppress any protests on Sunday. But Ryabchuk, who was released from jail on Tuesday, remains unbowed. “I teach free democratic ideals, the rule of law, and parliamentarianism . . . and I have to show examples from outside my country,” he said. “I realised I’ve already said so much about it — now it’s time to do something.”

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Emerging Markets

Hong Kong dropped from economic freedom index after crackdown




Hong Kong has been dropped from a prominent index of the world’s freest economies, underlining growing concerns over Beijing’s tightening grip on the Asian financial centre after it introduced a national security law last year.

The announcement from the Heritage Foundation, a conservative US think-tank, came as the majority of a group of 47 pro-democracy politicians were refused bail in a case that critics say shows the rapid decline of civic freedoms in the city.

The Heritage Foundation also dropped the Chinese special autonomous region of Macau, a casino hub and former Portuguese colony, from the rankings.

The foundation in recent years has been aligned with the administration of former US president Donald Trump.

“No doubt both Hong Kong and Macau . . . enjoy economic policies that in many respects offer their citizens more economic freedom than is available to the average citizen of China,” the Heritage Foundation said. “But developments in recent years have demonstrated unambiguously that those policies are ultimately controlled from Beijing.”

Beijing imposed the national security law on Hong Kong last year in response to anti-government protests that engulfed the city in 2019.

The measures are part of a clampdown on civil and political freedoms guaranteed to the city for 50 years following its handover from the UK to China in 1997. Authorities are targeting anyone viewed as disloyal to the Chinese government in politics, education and the media.

The Hong Kong government has long taken pride in studies showing its economy to be one of the most liberal in the world, with the city marketing itself as an international business haven given its low tax rates and open port.

The Heritage Foundation last year replaced Hong Kong at the top of its “Index of Economic Freedom” with Singapore, toppling it from a position it had held for 25 years, but still included the territory in the rankings in second place.

The Hong Kong government said it was ‘dismayed’ by the Heritage Foundation’s decision and said it was “politically biased”.

The case against the 47 pro-democracy lawmakers and activists has been seen as a test of whether the city’s legal system can withstand pressure from Beijing.

Authorities charged the group with subversion, alleging they aimed to topple the government by staging an unofficial primary vote to select candidates to run for election to the city’s legislature. Subversion is punishable with up to life imprisonment under the national security law.

The bail hearings, presided over by a judge appointed to oversee national security cases, entered their fourth day on Thursday.

Victor So, the judge overseeing the case, only granted bail to 15 out of 47 defendants under harsh conditions, but the prosecution immediately appealed the ruling, returning them to custody until the appeal hearing takes place. 

On top of the usual bail conditions, the court ordered the defendants to not participate in elections or make any public political statements.

Sessions have often stretched late into the evening, including one that continued until 3am before the defendants were hauled back before the court the next day. At least one defendant collapsed inside the courtroom and six others were sent to hospital for treatment.

As they exited the court, some defendants shouted: “Political criminals are not guilty, Hong Kongers will not die!”

Simon Young, a law professor at the University of Hong Kong, said the treatment of the defendants was “most unsatisfactory”. Jerome Cohen, a Chinese law expert at New York University, said the way the hearing was conducted “makes a farce of procedural fairness”.

Some of the defendants have faced multiple trials simultaneously and were forced to shuffle between courtrooms.

The defendants’ lawyers said on Tuesday their clients had not bathed in three days, forcing the judge to delay the hearing to allow them to wash.

Hong Kong has tight restrictions on reporting the substance of bail hearings.

Hundreds of supporters have queued each day in an attempt to watch the proceedings in person. Many held placards and chanted banned political slogans, risking prosecution under the security law.

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Pakistan’s finance minister ousted in surprise defeat for Imran Khan




Pakistan’s prime minister Imran Khan suffered a major political setback on Wednesday, when his finance minister was defeated in a contest for a seat in the country’s senate.

Khan must now appoint a successor to the cabinet post by June 11 under Pakistani law. The surprise defeat of finance minister Abdul Hafeez Shaikh, a respected economist and former world bank official who led the country’s negotiations with the IMF for a $6bn loan, comes amid an escalating campaign by main opposition parties to have the prime minister removed from office.

Elected officials vote to fill vacated seats in the senate every three years. Following the result, the government announced it would “take a vote of confidence in parliament” to prove that the prime minister retained a majority of support.

Business leaders have warned that Shaikh’s departure creates uncertainty over the future of Pakistan’s fiscal policies as the country battles the pandemic’s fallout on the economy.

“Right now, it was essential to give a message of confidence to a range of stake holders within and outside Pakistan on the state of our economy. Now, people will be left asking questions,” the president of a private Pakistani bank told the Financial Times.

An 11-party opposition alliance, the Pakistan Democratic Movement (PDM), has accused Khan of using the powerful military to tip the 2018 election result in his favour — which leaders from the prime minister’s party have denied — and for failing to revive the moribund economy.

The PDM has announced a March 26 deadline for Khan to step down or face widespread opposition protests.

Though some opposition leaders have said they plan to follow up Wednesday’s defeat with a vote of no confidence against Khan, analysts said it was too early to predict his downfall ahead of the end of his five-year term in 2023.

“It’s a major upset for Imran Khan and his PTI (Pakistan Justice Party),” said Huma Baqai, a political commentator at the University of Karachi. “The government from hereon will face further pressure as the opposition continues to step up its campaign.”

The vote count suggested a break in Khan’s PTI party, with as many as 16 party members either voting for the finance minister’s opponent, former prime minister Yusuf Raza Gilani, or spoiling their ballots.

Shaikh’s defeat “will not automatically lead to the prime minister’s downfall. Some PTI members clearly changed sides [for this vote]. But it will be much harder for them to agree to removing the prime minister,” an opposition leader told the FT.

Faisal Javed, a PTI leader, claimed some representatives had been bribed by the opposition. “There has been a major corruption. There has been horse-trading. People have been sold,” he told the local ARY news channel on Wednesday. Opposition leaders have denied this.

The electoral college for the senate consists of members from legislatures of Pakistan’s four provinces as well as the lower house of parliament in Islamabad known as the national assembly.

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Australia’s treasurer warns global stimulus threatens financial stability




Australia has warned that unprecedented global stimulus efforts during the coronavirus pandemic are creating financial stability risks that will only intensify when interest rates inevitably rise.

Canberra has also defended tough new foreign investment rules that have led to a collapse in Chinese investment, arguing the number of proposed deals motivated by strategic, rather than purely commercial gain, was increasing.

Josh Frydenberg, Australia’s treasurer, said the Pacific nation was in a strong economic position as its net debt to gross domestic product was about half that of other advanced economies, even as it begins unwinding fiscal stimulus.

“There is no doubt elevated debt levels will create challenges for many countries. While global interest rates are low those debt levels can be serviceable — but there will be a time when the monetary policy settings change,” he told the Financial Times.

Frydenberg’s comments on the risks posed by global stimulus followed a similar warning delivered last week by Peter Costello, a close political ally and former Australia treasurer.

Australia will be among the first advanced economies to taper off Covid-19 fiscal stimulus with the closure of its A$90bn (US$70bn) JobKeeper wage subsidy scheme this month.

Canberra has argued that the recovery is already under way, citing a fall in unemployment to 6.4 per cent in January and a 3.3 per cent economic expansion in the three months to September last year.

Frydenberg, who counts Margaret Thatcher and Ronald Reagan among his role models, said the government’s A$250bn stimulus was required to stabilise the economy during the pandemic. But he said JobKeeper, which supported 3.6m workers at its peak, was no longer needed as the recovery could be supported by tax cuts, which were announced last year.

Asked if he thought the economic policies of Thatcher and Reagan were still relevant, he said: “[Reagan and Thatcher] achieved a lot when they were in office and they were committed to lower taxes. They were committed to cutting regulation and that’s certainly what I’ve been committed to as well.”

But trade unions and businesses that are still suffering as a result of border closures and restrictions, particularly in the tourism and entertainment sectors, have warned that the scheme’s closure will dent the economy.

“JobKeeper should be extended for those businesses that are still affected by coronavirus. [Through] no fault of their own, they are suffering that downturn,” said Sally McManus, secretary of the Australian Council of Trade Unions, last week. “And we say that because that will save jobs.”

Josh Frydenberg, Australia’s treasurer, is a rising star in the country’s conservative government and is tipped as a future prime minister © AP

Frydenberg, who was the architect of foreign investment rules aimed at countering rising Chinese influence, said he made no apologies for putting “national interest” at the heart of Australia’s investment policies.

Chinese investment fell 61 per cent last year to A$1bn, down from A$2.6bn in 2019 and a peak in 2016 of A$16.5bn, data showed. Frydenberg was instrumental in blocking two potential deals: China Mengniu’s A$600m bid for Japan-owned Lion Dairy and China State Construction Engineering Corp’s A$300m bid for Probuild, a South Africa-owned construction company.

“We absolutely reserve the right to make decisions around foreign investment based on national interest and having put in place an explicit national security test allows us to do that,” he said.

“Increasingly we’ve seen foreign investment proposals that have been motivated not by purely commercial gains but more strategic ones. When those foreign investment proposals potentially compromise the national interest, then we reserve the right to say no.”

Frydenberg said Australia was not alone in tightening its rules, noting that other countries shared Canberra’s views on national sovereignty and foreign investment.

“Obviously we have had some challenges with China,” he said when asked about Beijing’s imposition of trade sanctions on a range of Australia’s exports following Canberra’s call last year for an inquiry into the origins of Covid-19 in Wuhan.

Frydenberg insisted that Australian ministers were prepared to sit down with their Chinese counterparts to discuss the bilateral relationship but only on a “no conditions attached” basis.

“It is a mutually beneficial trading relationship — we supply the bulk of their iron ore and that iron ore has helped underpin their economic growth,” he said.

Frydenberg is a rising star in Australia’s conservative government and is tipped as a future prime minister.

Last week, he shot to global attention following several days of negotiation with Facebook’s Mark Zuckerberg over the social media company’s decision to block news on its platforms in Australia in response to a law forcing it to pay news publishers.

On Friday, Facebook “refriended Australia” and returned news to its Australian platform following amendments that may make it easier for the company to avoid the toughest elements of the law.

“Trying to negotiate with these guys is a bit like playing chess against a chess master,” said Frydenberg, who joked that he spoke to Zuckerberg more than his own wife last week.

“The reality is they are massive companies with huge balance sheets and global reach. If this was easy other countries would have done it [made Big Tech pay for news] long ago.” 

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