Council on Foreign Relations
Daily News Brief
January 4, 2022
Top of the Agenda
Top European Diplomat Begins Visit to Ukraine
European Union (EU) foreign policy chief Josep Borrell arrives in Ukraine (AFP) today to voice support for the country amid soaring tensions with Russia. During his visit, he will meet with officials in Kyiv and visit the “contact line” in eastern Ukraine where Ukrainian forces face off against Russia-backed separatists.

Borrell has insisted (Reuters) that the EU be part of discussions about European security as Russia prepares to negotiate with Western powers. Russian officials will meet with U.S. delegates starting on Sunday, followed by North Atlantic Treaty Organization (NATO) officials on January 12. Yesterday, U.S. Secretary of State Antony Blinken discussed tensions with Russia (State Dept.) on a call with officials from nine Eastern European NATO countries.
Analysis
“Members of a more pessimistic school of thought can also see that the [Russian] saber-rattling has been carefully planned. But they fear that it reflects a genuine change: Perhaps [Russian President Vladimir] Putin has finally decided to realize his long-standing dream of removing Ukraine from the map,” the Atlantic’s Anne Applebaum writes.
 
“Russia doesn’t want off-ramps, it wants deals. Moscow knows it may need to compromise to get deals, but it also needs to get things it wants. It is willing to negotiate, but also to go to war if it doesn’t get a deal it likes,” the International Crisis Group’s Olga Oliker tweets.
 
This Backgrounder examines Ukraine’s long struggle to forge an independent path.

Pacific Rim
China Seals Off Olympics ‘Bubble’ as Part of Zero-COVID-19 Strategy
A month before the start of the Winter Olympics in Beijing, thousands of staff and volunteers have been physically separated (AFP) from the local population.
 
China: Shares of embattled property developer Evergrande Group paused and then resumed trading (WaPo) yesterday amid an investigation into the legality of the company’s planning permits.
 
For the Geo-Graphics blog, CFR’s Benn Steil and Benjamin Della Rocca look at where Evergrande sits in China’s merry-go-round of debt.

South and Central Asia
Sri Lanka Announces $1 Billion Relief Package as Food Prices Rise
The government said the money will be taken from the 2022 budget (Bloomberg) and allotted toward public-sector salaries, pensions, cash for the poor, and the removal of taxes for food and medicine.

India: Pharmaceutical company Dr. Reddy’s Laboratories said it will price (Reuters) a generic version of Merck’s COVID-19 pill at 47 cents per capsule, with a five-day treatment plan costing about $19. The treatment costs $700 in the United States.

Middle East and North Africa
OPEC Names Kuwaiti Oil Executive Secretary-General
Oil executive and former diplomat Haitham al-Ghais will take over the post (Bloomberg) from Nigeria’s Mohammad Sanusi Barkindo in August. Officials from the Organization of the Petroleum Exporting Countries (OPEC) and allied oil-producing countries, collectively known as OPEC+, meet today.
 
Saudi Arabia/Turkey: Turkish President Recep Tayyip Erdogan said he will visit Saudi Arabia (WSJ) in February. It will be his first visit to the country since the 2018 killing of Saudi dissident Jamal Khashoggi in Istanbul.
 
For Foreign Affairs, Soner Cagaptay discusses Erdogan’s end game.
This Day in History: January 4, 1999
Europe’s single currency, the euro, begins trading and conversion rates for eleven European currencies are set. Notes and coins are introduced in 2002.

Sub-Saharan Africa
China’s Foreign Minister Makes Second Trip to Africa in a Month
Foreign Minister Wang Yi will visit (SCMP) the Comoros, Eritrea, and Kenya. Eritrea joined China’s Belt and Road Initiative (BRI) in November.
 
In this podcast for the Asia Unbound blog, CFR’s Joshua Kurlantzick interviews Mandira Bagwandeen about BRI in sub-Saharan Africa.
 
South Africa: A man accused of starting a fire at Parliament on Sunday appeared in court (News24). His hearing was then postponed until the damages can be assessed.

Europe
Germany Criticizes EU Proposal to Classify Nuclear Power as Green
The German government called nuclear power dangerous and objected to plans for the EU to allow it to be classified as sustainable. Germany is on track (AP) to shut down its three remaining nuclear power plants by the end of this year.

Americas
Canadian Court Awards Damages to Ukrainian Flight 752 Families
An Ontario court ruled that the families of six people who died when Ukraine International Airlines Flight 752 was shot down over Iran in 2020 are entitled to (CBC) more than $80 million in damages. Their lawyer said he will attempt to seize Iranian assets.
 
Haiti: Prime Minister Ariel Henry fled gunfire (AP) directed at him on Saturday, his office said.

United States
AT&T, Verizon Delay 5G Rollout Over Airline Safety Concerns
The companies complied with a Department of Transportation request (WSJ) to delay the rollout for two weeks due to concerns that the new signals could interfere with cockpit safety systems.

Global
Five World Powers Pledge to Avoid Nuclear War
The United States, China, France, Russia, and the United Kingdom issued a rare joint statement (Guardian), saying a nuclear war “cannot be won and must never be fought.” The statement was crafted as part of a regular review of the 1968 Nuclear Nonproliferation Treaty.
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