<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106970721-1636033270223-gettyimages-1232591117-AFP_98Y9XM.jpeg" alt="" class="wp-image-415885" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106970721-1636033270223-gettyimages-1232591117-AFP_98Y9XM.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106970721-1636033270223-gettyimages-1232591117-AFP_98Y9XM-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106970721-1636033270223-gettyimages-1232591117-AFP_98Y9XM-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>A doctor monitors a Covid-19 patient in the Covid-19 intensive care unit of the community hospital in Germany on April 28, 2021. RONNY HARTMANN | AFP | Getty Images</figcaption></figure>



LONDON — Covid cases are rising in Europe, with an increasing number being attributed to the prevalence of a “stealth” subvariant of the omicron strain.



Covid cases have increased dramatically in the U.K. in recent weeks, while Germany continues to mark record high daily infections with more than 250,000 new cases a day. Elsewhere, France, Switzerland, Italy and the Netherlands are also seeing Covid infections start to rise again, aided and abetted by the relaxation of coronavirus measures and the spread of a new subvariant of omicron, known as BA.2.



Public health officials and scientists are closely monitoring BA.2, which has been described as a “stealth” variant because it has genetic mutations that could make it harder to distinguish from the delta variant using PCR tests, compared with the original omicron variant, BA.1.



The new subvariant would be the latest in a long line to emerge since the pandemic began in China in late 2019. The omicron variant — the most transmissible strain so far — overtook the delta variant, which itself supplanted the alpha variant — and even this was not the original strain of the virus.



Now, Danish scientists believe that the BA.2 subvariant is&nbsp;1½ times more transmissible&nbsp;than the original omicron strain, and is already overtaking it. The BA.2 variant is now responsible for over half of the new cases in Germany and makes up around 11% of cases in the U.S.



That number is expected to rise further, as it has in Europe.



“It’s clear that BA.2 is more transmissible than BA.1 and this, combined with the relaxation of mitigation measures and waning immunity, is contributing to the current surge in infections,” Lawrence Young, a professor of molecular oncology at Warwick University, told CNBC on Monday.



“The increased infectiousness of BA.2 is already out-competing and replacing BA.1, and we are likely to see similar waves of infection as other variants enter the population.”



As long as the virus continues to spread and replicate, particularly in populations which are under-vaccinated or where vaccine-induced immunity is decaying, “it will throw up new variants and these will remain a continual threat even to those countries with high rates of vaccination,” Young noted. “Living safely with Covid doesn’t mean ignoring the virus and hoping it will go away forever.”



<h2 class="wp-block-heading" id="h-what-do-we-know-about-ba-2"><a></a>What do we know about BA.2?</h2>



The BA.2 variant is being closely monitored by the World Health Organization and similar public health bodies on a national level, including the U.K. Health Security Agency (UKHSA) which has said the subvariant is “under investigation” but is not yet of concern.



Still, the WHO acknowledged in a statement last month that “the proportion of reported sequences designated BA.2 has been increasing relative to BA.1 in recent weeks.”



Initial data show that BA.2 is a little more likely to cause infections in household contacts, when compared with BA.1. It’s not believed currently that the BA.2 variant causes more severe illness or carries an increased the risk of being hospitalised, however further research is needed to confirm this, according to a U.K. parliamentary report published last week.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/who-says-the-new-omicron-subvariant-doesnt-appear-to-be-more-severe-than-the-original/">WHO says the new omicron subvariant doesn’t appear to be more severe than the original</a></h3>



Hospitalizations have also risen in a number of European countries as Covid infections have risen in recent weeks, but deaths remain far lower than in previous peaks thanks to widespread vaccine coverage.



The UKHSA has done a preliminary analysis comparing vaccine effectiveness against symptomatic disease for BA.1 and BA.2 infections and found that the levels of protection are similar, with efficacy of up to 77% soon after a booster shot, although this wanes over time.



<h2 class="wp-block-heading"><a></a>‘Growth advantage’</h2>



The WHO has also noted that BA.2 differs from BA.1 in its genetic sequence, including some amino acid differences in the spike protein and other proteins which could give it an advantage over the original omicron.



“Studies are ongoing to understand the reasons for this growth advantage, but initial data suggest that BA.2 appears inherently more transmissible than BA.1, which currently remains the most common omicron sublineage reported.&nbsp;This difference in transmissibility appears to be much smaller than, for example, the difference between BA.1 and Delta,” the WHO said last month.



The WHO added that initial studies suggest that anyone who has been infected with the original omicron variant has strong protection against reinfection with its subvariant BA.2.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/south-africa-seeing-more-cases-of-omicron-sub-variant-monitoring-it/">South Africa seeing more cases of Omicron sub-variant, monitoring it</a></h3>



Dr Andrew Freedman, reader in infectious disease at Cardiff Medical School, told CNBC he doesn’t think we need to be too concerned about BA.2, despite the fact that it is slightly more contagious.



“I suspect the rising number of cases is related to several factors including BA.2, the relaxation of restrictions and more social mixing, less mask wearing and some waning of immunity from both previous infections and vaccination, especially in those who received boosters early on,” he said.



“There has been an upturn in hospital admissions testing positive for Covid in the U.K., but many of these are incidental and there has not been a parallel increase in deaths.”



<h2 class="wp-block-heading"><a></a>Growing in prevalence</h2>



The U.K., and the rest of Europe, have acted as a bellweather for the U.S. at several points in the pandemic, declared two years ago by the WHO. particularly when it comes to the rise and spread of new Covid variants which have emerged and subsequently supplanted previous strains of the virus.



This makes the emergence and growing prevalence of the BA.2 variant a point of concern for the U.S. where cases have nosedived recently to reassuring lows.



Already some parts of the U.S. are seeing an increasing number of infections linked to BA.2, particularly in New York, according to data collected by the U.S. Centers for Disease Control and Prevention.



Elsewhere, China is currently facing its worst Covid-19 outbreak since the height of the pandemic in 2020.



It’s unclear whether BA.2 is contributing to the latest wave of cases, although a prominent infectious disease expert in China told news outlet Caixin that much of the current outbreak is being driven by the BA.2 subvariant.



U.K. data certainly illustrates BA.2′s increasingly prevalence. Sequenced data from Feb. 27 to Mar. 6 found that 68.6% of cases were omicron lineage BA.2, with just 31.1% omicron BA.1.

106970721-1636033270223-gettyimages-1232591117-AFP_98Y9XM

Covid cases are rising as omicron’s ‘stealth’ subvariant spreads around the world

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-820x547.jpg" alt="" class="wp-image-415881" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Firefighters look at a residential building that was hit by a shell as Russia&#8217;s attack on Ukraine continues, in the Obolon district in Kyiv, Ukraine, March 14, 2022. REUTERS/Thomas Peter</figcaption></figure>



LVIV, Ukraine, March 14 (Reuters)&nbsp;&#8211;&nbsp;The United States warned China after &#8220;intense&#8221; talks on Monday against helping Moscow in its invasion of Ukraine, while an anti-war protester interrupted Russian state TV news in an extraordinary act of dissent.



Moscow has not captured any of the 10 biggest cities in Ukraine since beginning its incursion on Feb. 24, the most significant attack on a European state since World War Two.



It calls its actions a &#8220;special military operation&#8221; to &#8220;denazify&#8221; the country and has asked for military and economic aid from Beijing, according to U.S. officials.



Moscow denies that, saying it has sufficient resources to fulfil all of its aims. China&#8217;s foreign ministry labelled the reports on assistance as &#8220;disinformation.&#8221;



China had signalled willingness to provide aid to Russia, a U.S. official said, as national security adviser Jake Sullivan met with China&#8217;s top diplomat Yang Jiechi in Rome.



&#8220;We have communicated very clearly to Beijing that we won&#8217;t stand by,&#8221; State Department spokesperson Ned Price told reporters on Monday. &#8220;We will not allow any country to compensate Russia for its losses.&#8221;



The seven-hour meeting was &#8220;intense&#8221; and reflected &#8220;the gravity of the moment,&#8221; according to a U.S. official.



The West is weighing how to deal with any involvement from China, top global exporter and No.1 foreign supplier of goods to Americans.



In Russia, a rare anti-war protest occurred in a studio during the main news programme on state TV&#8217;s Channel One, which is the primary source of news for millions of Russians and closely follows the Kremlin line.



A woman held up a sign in English and Russian that said: &#8220;NO WAR. Stop the war. Don&#8217;t believe propaganda. They are lying to you here.&#8221;&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VE18M&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The protester could be seen and heard for several seconds before the channel switched to a different report so she was no longer visible.



<h2 class="wp-block-heading">HUMANITARIAN TOLL</h2>



More than 2.8 million people have fled Ukraine.



Moscow on Monday allowed the first convoy to escape besieged Mariupol, home to the worst humanitarian crisis of the conflict.



&#8220;In the first two hours, 160 cars left,&#8221; Andrei Rempel, a representative of the Mariupol city council told Reuters.



But local authorities say as many as 2,500 civilians have died so far, a toll that cannot be independently confirmed.



Russia says it does not target civilians.



But Kyrylo Tymoshenko, a senior aide to Ukrainian President Volodymyr Zelenskiy, later said Russia had yet again blocked a humanitarian aid convoy trying to reach the city with supplies.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/russias-isolation-intensifies-as-ukraine-fighting-rages/">Russia’s isolation intensifies as Ukraine fighting rages</a></h3>



Obtaining safe passage for aid to reach Mariupol and civilians to get out has been Kyiv&#8217;s main demand at several rounds of talks. All previous attempts at a local ceasefire have failed.



The Ukrainian foreign ministry said a pregnant woman who was photographed being evacuated wounded from a maternity hospital in Mariupol bombed by Russia last week had since died along with her baby. Reuters was not able to verify this.<a href="https://www.reutersconnect.com/all?search=all%3AS8N2UZ0BO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Despite video showing at least two pregnant women being carried out of the ruins, Russia has said the hospital was not used at the time and had been occupied by Ukrainian fighters.



Drone video footage released by Ukrainian forces in Mariupol showed a desolate wasteland of bombed out buildings, many in flames, with smoke pouring into the sky.



Britain&#8217;s defence ministry said in an intelligence update on Monday that Russia could be planning to use chemical or biological weapons in Ukraine in response to a staged fake attack on Russian troops, without citing evidence. U.S. officials have made similar statements.



Russia has accused Ukraine of planning to use biological weapons. The United Nations on Friday said it had no evidence Kyiv had such a program.



<h2 class="wp-block-heading">MORE TALKS</h2>



In the latest bid to ease the crisis, Russian and Ukrainian delegations held a fourth round of talks on Monday &#8211; by video link rather than in person &#8211; but no new progress was announced. Discussions were due to resume on Tuesday.



Russia &#8220;still has a delusion that 19 days of violence against (Ukrainian) peaceful cities is the right strategy&#8221;, said Ukrainian negotiator Mykhailo Podolyak.



Russian negotiator Vladimir Medinsky wrote on social media: &#8220;We&#8217;re aiming to do everything possible for the achievement of the goals set by Vladimir Putin, for Russia&#8217;s peaceful future.&#8221;



EU member states had agreed on a fourth package of sanctions against Russia, according to France.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VH1SD&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Details were not officially disclosed, but diplomatic sources said they would include an import ban on Russian steel and iron, an export ban on luxury goods and a ban on investment in the energy sector.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/russia-seeks-military-equipment-from-china-after-ukraine-invasion-reports/">Russia seeks military equipment from China after Ukraine invasion -reports</a></h3>



Chelsea soccer team owner Roman Abramovich and 14 others would be added to the EU blacklist.



The war has caused a surge in commodity prices, threatening the global recovery as inflation in the developed world is already at its highest since the 1980s, many poor countries are facing a food crisis and the pandemic is still being felt.



Russia is the world&#8217;s biggest exporter of combined oil and gas, and Russia and Ukraine together supply nearly a third of the world&#8217;s grain exports, as well as metals and chemicals used worldwide in industry and agriculture.



On Monday, Moscow temporarily banned grain exports to ex-Soviet countries and most sugar exports.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VH1AO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Russia itself has been cast into economic isolation never before visited on such a big economy.



<h2 class="wp-block-heading" id="h-kyiv-apartment-block-hit">KYIV APARTMENT BLOCK HIT</h2>



Its forces have been bearing down on Kyiv but have made little progress so far towards the capital itself, despite heavy fighting that has reduced suburbs on its outskirts to rubble.



In Kyiv itself, an apartment block was hit by a missile overnight, killing at least one person, officials said.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VH0JV&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;The staircase was not there anymore, everything was on fire,&#8221; apartment resident Maksim Korovii said.



&#8220;We managed to put on whatever clothes we had at hand and made our way from balcony to balcony and in the end we climbed down by the next building&#8217;s entrance.&#8221;



In the south, where Russia has made more progress, residents of Odessa, a Black Sea port of 1 million people, fear their city could be next. They formed a human chain on Monday, singing patriotic songs as they carried sandbags from the beach.



In Donetsk, held since 2014 by Russian-backed separatists, Russia&#8217;s defence ministry said at least 20 people had been killed and 28 wounded by what it said was a Ukrainian missile with a cluster charge. It released footage of a missile on a busy street and vehicles destroyed by shrapnel.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VH0IA&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Ukraine accused Russia or its allies of carrying out that attack themselves as a pretext: &#8220;It is unmistakably a Russian rocket or another munition,&#8221; Ukrainian military spokesman Leonid Matyukhin said. Reuters could not verify either account.



(Reporting by Reuters bureaus; Writing by Peter Graff and Costas Pitas; Editing by Tomasz Janowski, Angus MacSwan, Grant McCool and Cynthia Osterman)

Firefighters look at a residential building that was hit by a shell in the Obolon district in Kyiv

U.S. warns China not to help Russia as anti-war protest disrupts state TV

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GNVUDTKFUNI5LONCZPQ4I3XVEU-820x536.jpg" alt="" class="wp-image-415877" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GNVUDTKFUNI5LONCZPQ4I3XVEU-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GNVUDTKFUNI5LONCZPQ4I3XVEU-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GNVUDTKFUNI5LONCZPQ4I3XVEU-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GNVUDTKFUNI5LONCZPQ4I3XVEU-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GNVUDTKFUNI5LONCZPQ4I3XVEU.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A man wearing a protective mask, amid the coronavirus disease (COVID-19) outbreak, walks past an electronic board displaying Shanghai Composite index, Nikkei index and Dow Jones Industrial Average outside a brokerage in Tokyo, Japan, March 7, 2022. REUTERS/Kim Kyung-Hoon</figcaption></figure>



NEW YORK, March 15 (Reuters)&nbsp;&#8211;&nbsp;Wild swings in asset prices following Russia&#8217;s invasion of Ukraine are prompting some investors to pare risk in their portfolios, fearing that the type of volatility seen in commodities in recent weeks could hit other markets.



At issue is liquidity – or the ease at which investors can buy or sell an asset without affecting its price. While episodes of low liquidity have contributed to sharp gyrations across markets over the last decade, signs of stress have become more plentiful in the last few weeks, exacerbated by everything from sanctions against Russia to expected central bank tightening.<a href="https://www.reutersconnect.com/all?search=all%3AL5N2V757K&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Should liquidity continue to deteriorate throughout markets, investors worry that other assets could be subject to the kind of violent price swings that have wracked commodities this month &#8211; which have included a one-day doubling in nickel prices and a surge in oil to 14-year highs.



&#8220;It isn&#8217;t always clear where the contagion risks lie,&#8221; said Frances Donald, Global Chief Economist at Manulife Investment Management. &#8220;This is why liquidity needs to be monitored, not just daily, but hourly at this point, for signs of challenges.&#8221;



Financial indicators are showing increasing signs of stress throughout markets.



The so-called FRA-OIS spread, which measures the gap between the U.S. three-month forward rate agreement and the overnight index swap rate was recently at its highest level since May 2020, while another closely-watched short-term funding stress gauge, the spread between the U.S. three-month Libor and the overnight index swap rate&nbsp;USDL-O3MF=R&nbsp;was at a similar high. Volatility in stocks&nbsp;.VIX, currencies&nbsp;.DBCVIX&nbsp;and U.S. Treasury yields&nbsp;.MOVE&nbsp;has also spiked.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VB2MX&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a><a href="https://www.reutersconnect.com/all?search=all%3AL5N2VE454&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



In another potential red flag, Barclays&nbsp;BARC.L&nbsp;on Monday suspended sales of two products linked to crude oil and market volatility, which some saw as a sign of lack of liquidity.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VH1DM&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Among the assets investors have been cutting are emerging markets bonds, which saw $3.54 billion in net outflows last week, the biggest reduction since April 2020. Treasuries, meanwhile, saw some $5.4 billion in inflows in the past nine weeks, according to BofA Global Research.



<h3 class="wp-block-heading" id="h-read-more-the-federal-reserve-is-scaring-markets-with-the-triple-threat-of-policy-tightening">Read more: <a href="https://www.cnbcafrica.com/2022/the-federal-reserve-is-scaring-markets-with-the-triple-threat-of-policy-tightening/">The Federal Reserve is scaring markets with the triple threat of policy tightening</a></h3>



Mike Vogelzang, Chief Investment Officer at CAPTRUST in Boston, said his firm had taken &#8220;aggressive action&#8221; in response to the Ukraine crisis to reduce the risk profile of its portfolios. That included cutting equity exposure and selling mortgages and a number of corporate bonds, replacing them with highly liquid short-term U.S. Treasuries.



&#8220;We&#8217;re worried about a potential liquidity scare on a global stage,&#8221; he said. &#8220;We were significantly underweight U.S. Treasuries to our benchmarks for years now, and so we really filled that bucket up and reduced the illiquidity potential in our portfolios.&#8221;



Vogelzang said events like last week&#8217;s spike in nickel prices – which came as one of the world&#8217;s top producers bought large amounts of nickel to cover bets on falling prices and cover costly margin calls &#8211; indicate the potential for &#8220;liquidity panic&#8221; in markets.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VB1UT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Investors also highlighted counterparty risk, referring to the probability of defaults in contractual obligations linked, in this case, to an underlying commodity. In a rare warning on Monday, the Securities and Exchange Commission said concentrated positions of prime brokerage counterparties pose particular concerns.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VH2UO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Bill Campbell, Global Bond Portfolio Manager at DoubleLine is concerned about the impact the Ukraine crisis is having on a &#8220;systemically important&#8221; part of global supply chains that affects not only energy prices but also vital commodities such as wheat, of which both Ukraine and Russia are major producers.



Campbell has reduced exposure to Eastern European countries in his portfolios and is looking to differentiate investment between commodity importing and commodity exporting countries to reduce risk.



&#8220;We need to become more comfortable that this crisis is going to be contained to the region,&#8221; he said.



Ryan O&#8217;Malley, a fixed income portfolio manager at Sage Advisory said the conflict had accelerated liquidity concerns in the corporate credit market, pushing him to shift his portfolio increasingly towards more liquid assets such as Treasuries.



&#8220;We&#8217;re trying to get more liquid,&#8221; O&#8217;Malley said.



(Reporting by Davide Barbuscia; editing by Ira Iosebashvili, Megan Davies and Richard Pullin)

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Investors see risks spiking, fear market-wide liquidity crunch

<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/5XLMPDE5NFIY5J6WM3FWAIPSV4.jpg" alt="" class="wp-image-415873" width="476" height="476" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/5XLMPDE5NFIY5J6WM3FWAIPSV4.jpg 476w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/5XLMPDE5NFIY5J6WM3FWAIPSV4-300x300.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/5XLMPDE5NFIY5J6WM3FWAIPSV4-90x90.jpg 90w" sizes="auto, (max-width: 476px) 100vw, 476px" /><figcaption>A 3D printed Facebook&#8217;s new rebrand logo Meta is seen in this illustration taken on November 2, 2021. REUTERS/Dado Ruvic/Illustration</figcaption></figure>



JOHANNESBURG, March 14 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Competition Commission on Monday said it had referred Facebook&nbsp;and WhatsApp owner&nbsp;Meta Platforms&nbsp;FB.O&nbsp;to a tribunal for allegedly abusing its dominant position in the market.



But&nbsp;a spokesperson for WhatsApp&nbsp;said the regulator was objecting to actions meant to protect the platform&#8217;s users from abuses of WhatsApp&#8217;s terms.



In a statement, the regulator accused Meta of &#8220;abusing its dominance by engaging in exclusionary conduct geared at preventing competitors or potential competitors from entering into, participating, and expanding in a market&#8221;.



The commission said Meta had decided to &#8220;offboard&#8221; GovChat (a start-up that connects government and citizens) and its subsidiary #LetsTalk from its WhatsApp Business Application Programming Interface.



<h3 class="wp-block-heading" id="h-read-more-south-africa-s-information-regulator-says-whatsapp-cannot-share-users-contact-information">Read more: <a href="https://www.cnbcafrica.com/2021/south-africas-information-regulator-says-whatsapp-cannot-share-users-contact-information/">South Africa’s information regulator says WhatsApp cannot share users’ contact information</a></h3>



It also said the company had &#8220;imposed and/or selectively enforced exclusionary terms and conditions regulating access to the WhatsApp Business API, mainly restrictions on the use of data&#8221;.



However, WhatsApp defended its exclusion of GovChat, saying that the start-up was not complying with Meta&#8217;s terms of service.



&#8220;GovChat has repeatedly refused to comply with our policies which are designed to protect citizens and their information, preferring to prioritise their own commercial interests over the&nbsp;public,&#8221; a Whatsapp spokesperson said. &#8220;We will&nbsp;continue to defend WhatsApp from abuse.&#8221;



Officials at GovChat were not immediately available for comment.



Meta is facing anti-trust action by several authorities, including the United States, Britain and the European Union.



But it has also taken a $250 billion hit to its share price owing to competition from rivals like TikTok that some argue bolster its case that it faces fierce competition and so is not in a monopoly position.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2UI2WO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Tim Cocks; Editing by Jan Harvey, Ed Osmond and Cynthia Osterman)

5XLMPDE5NFIY5J6WM3FWAIPSV4

South Africa regulator refers Meta to tribunal over dominance

On a coastal stretch of land near Lagos, as far as the eye can see, a sprawling oil refinery is under construction. It belongs to Aliko Dangote – the wealthiest African in the world and a visionary entrepreneur who wants to transform Nigeria into an economic powerhouse. To realise that vision he has taken a bold gamble &#8211; one that could end his country’s dependence on fuel imports for good. The West African state sits on 37 billion barrels of crude oil<a href="#_ftn1" id="_ftnref1">[1]</a> but extracts barely 2 million barrels per day.&nbsp; Worse yet, it refines almost nothing. The four<a href="#_ftn2" id="_ftnref2">[2]</a> state-run refineries are in a sorry state, and it costs more to import petrol and diesel than the revenue it gets from crude oil exports. This is turning out to be unsustainable. Petroleum imports exceeded oil exports by US$43.56bn last year (2021).<a href="#_ftn3" id="_ftnref3">[3]</a> This has put pressure on the naira and pushed the state into a spiral of debt. To keep a lid on the problem the government caps the price on gasoline and pays importers the difference between the landing cost of oil and pump prices. Fuel subsidy costs 250bn naira<a href="#_ftn4" id="_ftnref4">[4]</a> (US$600m) a month. It is a burden the government has been trying get rid of for years but with little success. A cosy nexus of politicians, traders, union leaders, and petrol smugglers have benefitted enormously from this knotty problem, and they have tried to keep things the way they are. Fearing protests President Muhammadu Buhari decided to delay scrapping fuel subsidies in January.<a href="#_ftn5" id="_ftnref5">[5]</a> More recently, Abuja and Lagos plunged into chaos after reports of adulterated fuel sparked a scramble for petrol.



All this could become history once the US$19bn<a id="_ednref1" href="#_edn1">[i]</a> Dangote integrated oil refinery becomes operational. It is spans over 2300 football fields<a id="_ftnref6" href="#_ftn6">[6]</a> and will have the capacity to process 650,000 barrels of crude per day. It employs more than 40,000 people and is considered so vital that the state-owned Nigerian National Petroleum Corporation (NNPC) has decided to take a 20% stake in the project for US$2.7bn. The president of the African Development Bank (AfDB), Akinwumi Adesina called it a ‘game-changer’. It is, without doubt, an impressive project – the likes of which Africa has not seen. But will it prove to be as transformative as its backers like to portray? Aliko Dangote appears to have styled himself on the Indian billionaire-industrialist Mukesh Ambani of Reliance. They certainly have a lot in common. Both men have made their fortunes in heavily regulated markets. Both have benefitted from protectionist industrial policies. They have been accused of political patronage and they both have a reputation of making bold investments. It is also a remarkable coincidence that they have both thrived in similar unequal societies. I suspect the Dangote oil refinery may even have been inspired by Ambani’s 3035-hectare petrochemical industrial complex in Jamnagar is the world’s largest refining hub.<a id="_ednref2" href="#_edn2">[ii]</a> It covers an area half the size of Manhattan and has the capacity of processing of 1.4 million barrels of crude oil a day. This facility has helped turn crude scarce India into one of the world’s largest exporters of refined fuel. Dangote



may be trying to replicate in Nigeria what Ambani has achieved in India. He has sent dozens of Nigerian engineers to India for training. He believes his refinery will not only end Nigeria’s dependence on foreign oil but make it an exporter of refined fuel. It may also have a knock-on effect on the rest of the economy. Agriculture contributes more than 24% to the national GDP.<a href="#_ftn1" id="_ftnref1">[1]</a> The massive fertiliser plant at the site is expected cut US$3bn worth of urea imports.<a href="#_ftn2" id="_ftnref2">[2]</a> The hard currency all of this will save could stabilise the Naira and help the Nigerian government balance its budget and unlock capital for social good.



Construction on the refinery project has been delayed due disruptions caused by the Covid-19 pandemic. It is expected to become operational next year (2023). But its opening will come at a time when the world is turning its back on oil-related business. Financial institutions are backing away from lending to energy intensive carbon emitting projects. Even Ambani has tried to divest part of his refining and chemical business (although his Jamnagar facility has ramped up crude processing following the recent surge in oil prices). He is building building factories that make more environmentally friendly products like solar panels and batteries. But Aliko Dangote shows no signs of following suit. Under a joint venture with Peugeot he has started to roll out gasoline-run cars from an assembly plant in the state of Kaduna. Dangote is betting on something that is going out of favour &#8211; an irony for a man who once avoided getting his hands dirty in oil. Africa is a young, growing and a hungry marketplace. He is betting that fossil fuel may yet have a long way to go here. He may be right. Oil has so far been mostly a wasted resource for Nigeria. It has promoted corruption and left a terrible legacy of loot, pilferage, conflict, and ecological disaster. Let us hope he can turn this curse into a blessing.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="674" height="800" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Amit-Jain-674x800.jpg" alt="" class="wp-image-415864" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Amit-Jain-674x800.jpg 674w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Amit-Jain-253x300.jpg 253w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Amit-Jain-76x90.jpg 76w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Amit-Jain-768x912.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/Amit-Jain.jpg 1031w" sizes="auto, (max-width: 674px) 100vw, 674px" /><figcaption>Amit Jain is the Director of NTU-SBF Centre for African Studies at the Nanyang Business School in Singapore</figcaption></figure>

Amit-Jain

Is Aliko Dangote emulating Ambani in trying to turn Nigeria’s oil curse into a blessing?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/5NPMMIM3ZVLFBBEXXDQHIS3CO4-820x530.jpg" alt="" class="wp-image-415860" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/5NPMMIM3ZVLFBBEXXDQHIS3CO4-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/5NPMMIM3ZVLFBBEXXDQHIS3CO4-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/5NPMMIM3ZVLFBBEXXDQHIS3CO4-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/5NPMMIM3ZVLFBBEXXDQHIS3CO4-768x496.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/5NPMMIM3ZVLFBBEXXDQHIS3CO4-1536x992.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/5NPMMIM3ZVLFBBEXXDQHIS3CO4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Job seekers wait beside a road for casual work offered by passing motorists in Eikenhof, south of Johannesburg, South Africa, March 3, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, March 14 (Reuters) &#8211; South Africa&#8217;s ruling party is being forced to confront a problem that has bedevilled the country since apartheid ended 28 years ago: how to reduce record gross inequality and poverty that hurts the Black majority more than the white minority.



While the issue has never gone away, it has come to a head after the COVID-19 pandemic destroyed jobs and livelihoods.



Unemployment hit a record of nearly 35% last year and anger at the worsening economy has spilled into violent protests and rioting, including last summer when more than 300 people were killed and hundreds of businesses destroyed in the unrest.



The African National Congress (ANC) party is increasingly alarmed at its waning popularity among voters, and a leadership contest is only months away, adding to pressure on President Cyril Ramaphosa to improve the lives of ordinary South Africans.



His preference is to give more free money to the poor. The government introduced a social relief grant in 2020 to support those worst hit by the pandemic, and is debating whether to increase handouts and make them permanent.



Ramaphosa&#8217;s stance pits him against sceptics including his own finance minister, Enoch Godongwana, who fear that a proposed permanent basic income grant could be ruinously costly.



Opponents of more generous handouts also say they act as a disincentive to people looking for work and divert resources from basic services like electricity, water and schools.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/ramaphosa-says-south-africa-has-been-asked-to-mediate-russia-ukraine/">Ramaphosa says South Africa has been asked to mediate Russia-Ukraine</a></h3>



For some South Africans, the small social relief grant of 350 rands ($23.20) a month offered to those who were unemployed and did not receive any other form of grant was a godsend, even if it could not solve their problems longer term.



Sunnyboy Moseboa, 53, lives in Diepkloof, one of the poorer parts of the Johannesburg township of Soweto. He set up a stall selling grilled cow feet, using the grant to cover expenses like power to keep his product fresh.



Unmarried and without children, he had been dependent on handouts from his family. Now, his business nets him on average 2,000 rands a month, after years of failed job searches and enterprises.



&#8220;It&#8217;s small, but the 350 (rands) helped,&#8221; he told Reuters outside his house assembled from discarded wooden planks, glass panels and iron sheets. &#8220;Sometimes I have cash flow problems. There are times when there&#8217;s no food for me to eat.&#8221;



Having extended the grant another year in his February state of the nation address, at a cost of 44 billion rands, Ramaphosa is considering making it permanent and increasing it for 10 million beneficiaries &#8211; a sixth of the country.



Inequality campaigners see it as a global test case, as robots replace jobs and some countries look into providing unearned income as a solution. Many economists are unconvinced.



&#8220;We face a real danger of &#8230; limit(ing) &#8230; job creation potential by increasing the system of social grants,&#8221; some of Ramaphosa&#8217;s advisers wrote in a leaked February report, seen by Reuters.



<h2 class="wp-block-heading" id="h-social-protection">&#8216;SOCIAL PROTECTION&#8217;</h2>



After apartheid ended in 1994, the ANC introduced policies aimed at job creation and private sector growth that they hoped would reassure white nationals and international investors and prevent them flooding out of the country.



But it also spent heavily on improving benefits for people who were discriminated against under white rule, including building millions of subsidised homes for the poor.



Despite the huge spend &#8211; at 3.3% South Africa spends nearly three times the global median on social assistance as a share of its GDP, according to the World Bank &#8211; unemployment is at a record and, on some measures, inequality has got worse.



Economic growth slowed over the last decade as the country struggled with policy uncertainty, political turmoil, an energy crisis and allegations of state corruption under former president Jacob Zuma – who has denied any wrongdoing.



This has piled more pressure on Ramaphosa, both within the ANC and on the streets, where hundreds have protested in recent months to demand the government limit the number of foreign workers in the country and safeguard jobs for South Africa.



Some analysts say that expanding social protection would be a vote-winner for the ANC, which last year suffered its worst result in local elections since taking power.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2RV1ZX&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Voter support for the ANC dipped below 50% for the first time, raising the possibility that it could lose power for the first time since 1994.



Finance Minister Godongwana noted in his budget speech that the social relief grant had expanded an &#8220;already extensive social safety net,&#8221; now covering half the population.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/south-africa-sees-food-inflation-opportunity-from-russia-ukraine-war/">South Africa sees food inflation, opportunity from Russia-Ukraine war</a></h3>



But Alex van den Heever, a social security expert at University of the Witwatersrand in Johannesburg, said the system was stingier than it looked and was less pro-poor when you offset it against tax breaks on private pension income, which funnel 1.7% of GDP back to the top 10% of earners.



Accusations of corruption and mismanagement have also dogged South Africa&#8217;s welfare programmes, resulting in long backlogs and shoddily-built homes, and preventing help from reaching many of those in need.



Defenders of basic income propose at least doubling the COVID-19 grant to hit the food poverty line.



In downtown Soweto, the unemployed queue from as early as 2 a.m. to get their grants, forming snaking lines &#8211; a stark reminder of how persistent South Africa&#8217;s poverty is.



Among them is Thandi Shabangu, 53, who has four children. Before the grant she did odd domestic jobs and now uses the money from both to buy snacks and sell them at a kiosk.



&#8220;The grant helped me to start my business &#8230; with today&#8217;s, I will buy more stock,&#8221; she said.



Ramaphosa had such people in mind when he said in his address that some used grant money to start businesses, rejecting the theory that they encourage idleness.



Sceptics still worry about the cost.



&#8220;Affordability is going to be a serious problem, with our debt levels,&#8221; said Patrick Buthelezi, an economist at South Africa&#8217;s Sanlam Investments. The Treasury will spend nearly 250 billion rands on grants in the financial year starting in April, up from about 225 billion rands in the previous year.



But Shaeera Kalla, from activist group #PayTheGrants, said that with political will, South Africa could make the money back in taxes on the wealthy, such as VAT on luxury items.



($1 = 15.1395 rands)



(Additional reporting by Olivia Kumwenda-Mtambo, Siyabonga Sishi and Alexander Winning in Johannesburg; Editing by Alexandra Zavis and Mike Collett-White)

Job seekers wait beside a road for casual work offered by passing motorists, in Eikenhof

More welfare or less? South Africa’s ANC confronts apartheid’s legacy

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-820x547.jpg" alt="" class="wp-image-414305" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



WASHINGTON, March 13 (Reuters)&nbsp;&#8211;&nbsp;Russia may default on its debts in the wake of unprecedented sanctions over its invasion of Ukraine, but that would not trigger a global financial crisis, International Monetary Fund Managing Director Kristalina Georgieva said on Sunday.



Georgieva told CBS&#8217;s &#8220;Face the Nation&#8221; program that sanctions imposed by the United States and other democracies were already having a &#8220;severe&#8221; impact on the Russian economy and would trigger a deep recession there this year.



The war and the sanctions would also have significant spillover effects on neighboring countries that depended on Russian energy supplies, and had already resulted in a wave of refugees compared to that seen during World War Two, she said.



Russia calls its actions in Ukraine a “special operation.”



The sanctions were also limiting Russia&#8217;s ability to access its resources and service its debts, which meant a default was no longer viewed as &#8220;improbable,&#8221; Georgieva said.



<h3 class="wp-block-heading" id="h-read-more-federal-reserve-points-to-interest-rate-hike-coming-in-march">Read more: <a href="https://www.cnbcafrica.com/2022/federal-reserve-points-to-interest-rate-hike-coming-in-march/">Federal Reserve points to interest rate hike coming in March</a></h3>



Asked if such a default could trigger a financial crisis around the world, she said, &#8220;For now, no.&#8221;



The total exposure of banks to Russia amounted to around $120 billion, an amount that while not insignificant, was &#8220;not systemically relevant,&#8221; she said.



Asked if Russia could access the $1.4 billion in emergency IMF funding approved for Ukraine last week if Moscow won the war and installed a new government, Georgieva said the funds were in a special account accessible only by the Ukrainian government.



An IMF official said that referred to the &#8220;internationally recognized government of Ukraine.&#8221;



The IMF last year blocked access to Afghanistan&#8217;s funds by the Taliban after they seized control of the government, citing lack of clarity over recognition of the Taliban rulers within the international community.



Georgieva last week said the IMF would downgrade its previous forecast for 4.4% global economic growth in 2022 as a result of the war, but said the overall trajectory remained positive.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VD2II&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Growth remained robust in countries like the United States that had been fast to recover from COVID-19 pandemic, she told CBS.



The impact would be most severe in terms of driving up commodity prices and inflation, potentially leading to hunger and food insecurity in parts of Africa, she said.



(Reporting by Andrea Shalal; Editing by Marguerita Choy and Daniel Wallis)

BE2FA7DW6VJP3AYQ5S5CUCMQO4

Russian default no longer ‘improbable’, but no trigger for global financial crisis- IMF

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="423" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/NVOKCLVWNNPKNPA3Y4B2YSXX7Q.jpg" alt="" class="wp-image-415851" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/NVOKCLVWNNPKNPA3Y4B2YSXX7Q.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/NVOKCLVWNNPKNPA3Y4B2YSXX7Q-300x174.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/NVOKCLVWNNPKNPA3Y4B2YSXX7Q-155x90.jpg 155w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>South African police enter an airliner in Cape Town October 6, 2006. REUTERS\Mike Hutchings/File Photo</figcaption></figure>



CAPE TOWN, March 13 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s civil aviation regulator grounded Comair&#8217;s planes indefinitely on Sunday over unresolved safety issues, in a move that also affects low-cost airline Kulula and British Airways, leaving hundreds of passengers stranded.



A spokesperson for the South African Civil Aviation Authority (SACAA) said it had extended a 24-hour precautionary suspension of Comair&#8217;s operator certificate indefinitely.



The suspension was meant to end on Sunday, but Comair has not adequately addressed all the necessary safety issues, the SACAA said.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VF0DB&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;This morning we communicated to them (Comair) that their air operator certificate is now indefinitely suspended until they close all of the findings,&#8221; SACAA spokesperson Phindiwe Gwebu told Reuters, effectively grounding the company&#8217;s fleet of Boeing BA.N aircraft.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/eu-launches-summit-reset-with-africa-after-pandemic-pause/">EU launches reset with Africa after pandemic disruption</a></h3>



Comair said it was unable to confirm when it would start flying again, after working through the night to provide documentation to SACAA following a review of certain policies, systems and procedures.



&#8220;This is a huge blow to our customers, employees and the flying public as it effectively takes 40% of the capacity out of the market,&#8221; Glenn Orsmond, Comair chief executive said in a statement.



There would be considerable implications for the aviation sector and the country should the suspension be prolonged, he added.



<h2 class="wp-block-heading" id="h-chartered-flights">CHARTERED FLIGHTS</h2>



Airports Company SA (ACSA), which runs the country&#8217;s largest airports, said some of the stranded passengers were placed on chartered flights arranged by BA and Comair, specifically for commuters on the popular Johannesburg and Cape Town route.



&#8220;Priority is also given to those passengers who have onward international connecting flights,&#8221; Terence Delomoney, ACSA&#8217;s group executive operations manager said.



Issuing the precautionary notice on Saturday, the regulator said in the past month Comair had experienced safety problems ranging from &#8220;engine failures, engine malfunction and landing gear malfunctions,&#8221; among others.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/new-covid-19-vaccine-rule-catches-many-kenyans-by-surprise/">New COVID-19 vaccine rule catches many Kenyans by surprise</a></h3>



In its investigations, SACAA said it had discovered three so-called &#8220;level 1&#8221; findings &#8220;which pose an immediate risk&#8221; and must be addressed immediately.



Gwebu did not elaborate on what outstanding safety issues Comair, which flies local and regional routes from South Africa under the British Airways (BA) livery as part of a licence agreement, needed to address before flying again. Besides flying BA planes, Comair also operates the Kulula brand.



A notice on Kulula&#8217;s website showed that Comair had been aiming to resume its schedule by 12 p.m. (1000 GMT) on Sunday, subject to SACAA&#8217;s approval.



&#8220;We will do everything we can to accommodate customers affected by the suspension on other flights, prioritising vulnerable customers and those who most urgently needed to travel,&#8221; Comair said, adding that customers would also be kept informed via text.



(Reporting by Wendell Roelf Editing by Louise Heavens, Mark Potter and Emelia Sithole-Matarise)

South African police enter airliner in Cape Town

South African airline Comair’s fleet grounded indefinitely

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028886-1646977114151-gettyimages-1169173985-AFP_1KE1QL.jpeg" alt="" class="wp-image-415847" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028886-1646977114151-gettyimages-1169173985-AFP_1KE1QL.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028886-1646977114151-gettyimages-1169173985-AFP_1KE1QL-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028886-1646977114151-gettyimages-1169173985-AFP_1KE1QL-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Chinese Premier Li Keqiang speaks during a meeting with Russian President Vladimir Putin at the Kremlin in Moscow on September 18, 2019. Pavel Golovkin | Afp | Getty Images</figcaption></figure>



BEIJING — China is “deeply” worried about the crisis in Ukraine, Premier Li Keqiang said Friday, warning that sanctions will hurt global growth.



“On Ukraine, indeed the current situation there is grave, and China is deeply concerned and grieved,” Li said in Mandarin, according to an official translation.



The premier was responding to two questions about the Ukraine war at the beginning of an annual press briefing. Since Russia’s attack on Ukraine about two weeks ago, Beijing has refused to call it an invasion and said China would maintain normal trade with both countries, without joining in on U.S., EU and other countries’ sanctions on Russia.



On Monday, Chinese Foreign Minister Wang Yi said relations with Russia were “rock solid.” He pointed to a joint statement with Russia issued after a high-level meeting in early February between Chinese President Xi Jinping and Russian President Vladimir Putin.



During the Friday briefing, Li maintained that China has “followed an independent policy of peace” and repeated Beijing’s line of encouraging Russia and Ukraine to negotiate. “The pressing task now is preventing tensions from escalating or even getting out of control.”



Li did not specifically say whether China would economically support Russia, but noted China supports “all efforts that are conducive to a peaceful resolution of the crisis.”



He added that the sanctions would only shock a world economy already struggling to recover from the coronavirus pandemic.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/biden-agrees-to-meet-with-putin-in-principle-if-russia-has-not-invaded-ukraine/">Biden agrees to meet with Putin ‘in principle’ if Russia has not invaded Ukraine</a></h3>



Over the weekend, the International Monetary Fund said the economic consequences of the war are “already very serious” with “adverse” shocks to inflation and business activity in many countries.



Last week, Oxford Economics estimated the war would reduce global GDP by 0.2%, with a decline of 0.6% this year if the fighting persists through 2023.



<h2 class="wp-block-heading" id="h-end-of-an-era"><a></a>End of an era</h2>



Li was speaking Friday at a press briefing held at the close of an annual parliamentary meeting.



This year marks Li’s final appearance at the briefing as premier, a position he’s held since 2013. The ruling Chinese Communist Party is set in the fall to select a new leadership team, although President Xi Jinping is expected to stay on for an unprecedented third term.



Li closed the roughly two-hour-long briefing with a pledge that China would continue to open up its economy regardless of changes in the international environment.



Foreign businesses have long complained about requirements of forced tech transfers and unequal access to the Chinese market, especially at a local implementation level. In the last few years, China has passed a law for improving the business environment and allowed foreign financial institutions full ownership of their local operations.



“It has been forty years since China has gotten on the journey of opening up,” Li said. “Opening up has brought benefits to the country and its people. We will not and must not close this door of opportunity. Thank you.”

107028886-1646977114151-gettyimages-1169173985-AFP_1KE1QL

China is ‘deeply’ worried about Ukraine crisis, Premier Li Keqiang says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="780" height="511" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-36.jpg" alt="" class="wp-image-415843" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-36.jpg 780w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-36-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-36-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-36-768x503.jpg 768w" sizes="auto, (max-width: 780px) 100vw, 780px" /><figcaption>FILE PHOTO: A serviceman of pro-Russian militia walks nest to a military convoy of armed forces of the separatist self-proclaimed Luhansk People&#8217;s Republic (LNR) on a road in the Luhansk region, Ukraine February 27, 2022. REUTERS/Alexander Ermochenko</figcaption></figure>



March 13 (Reuters)&nbsp;&#8211;&nbsp;Russia has asked China for military equipment since its Feb. 24 invasion of Ukraine, the Financial Times and Washington Post reported on Sunday, citing U.S. officials.



U.S. National Security advisor Jake Sullivan will be in Rome on Monday to meet with China&#8217;s top diplomat Yang Jiechi, the White House said earlier.



Russia,&nbsp;which calls its action in Ukraine a &#8220;special operation,&#8221;&nbsp;and China have tightened cooperation as they have come under strong Western pressure over human rights and a raft of other issues.



Beijing has not condemned Russia&#8217;s attack and does not call it an invasion, but has urged a negotiated solution.



The White House&#8217;s National Security Council declined to comment.



The Washington Post said the unidentified&nbsp;U.S. officials did not state the kind of weaponry that had been requested or how China had&nbsp;responded.



(Reporting by Costas Pitas in Los Angeles; Editing by Richard Chang)

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Russia seeks military equipment from China after Ukraine invasion -reports

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028862-1646968527334-gettyimages-1297471865-_mg_0884-1.jpeg" alt="" class="wp-image-415836" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028862-1646968527334-gettyimages-1297471865-_mg_0884-1.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028862-1646968527334-gettyimages-1297471865-_mg_0884-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028862-1646968527334-gettyimages-1297471865-_mg_0884-1-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Cyber warfare is being waged, not only between Ukraine and Russia, but on behalf of these countries by “digital soldiers” from around the world. Rapeepong Puttakumwong | Moment | Getty Images</figcaption></figure>



Cyber warfare related to the Ukraine-Russia conflict is surging as digital volunteers from around the world enter the fight.



The number of cyberattacks being waged by — and on behalf of — both countries since the outbreak of the war is “staggering,” according to the research arm of Check Point Software Technologies.



“For the first time in history anyone can join a war,” said Lotem Finkelstein, head of threat intelligence at Check Point Software. “We’re seeing the entire cyber community involved, where many groups and individuals have taken a side, either Russia or Ukraine.”



“It’s a lot of cyber chaos,” he said.



<h2 class="wp-block-heading" id="h-grassroots-global-uprising"><a></a>Grassroots, global uprising</h2>



In the first three days following the invasion, online attacks against Ukrainian military and governmental sectors increased by 196%, according to Check Point Research (CPR). They also modestly increased against Russian (4%) and Ukrainian (0.2%) organizations, according to the data, while simultaneously falling in most other parts of the world.



Since then, Ukrainian authorities estimate some 400,000 multinational hackers have volunteered to help Ukraine, said Yuval Wollman, president of cyber security company CyberProof and the former director-general of the Israeli Intelligence Ministry.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028852-1646966761586-Chart_1.jpg" alt="" class="wp-image-415837" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028852-1646966761586-Chart_1.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028852-1646966761586-Chart_1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028852-1646966761586-Chart_1-160x90.jpg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Source: Check Point Research</figcaption></figure>



“Grassroots volunteers created widespread disruption — graffitiing anti-war messages on Russian media outlets and leaking data from rival hacking operations,” he said. “Never have we seen this level of involvement by outside actors unrelated to the conflict.”



Three weeks in, Ukraine continues to sustain a barrage of online attacks, with most aimed at its government and military, according to CPR’s data.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/nato-says-russia-is-increasing-troop-numbers-at-ukrainian-border-calls-for-talks/">NATO says Russia is increasing troop numbers at Ukrainian border, calls for talks</a></h3>



Moscow has consistently denied that it engages in cyberwarfare or assists cyberattacks. On Feb. 19, the Russian embassy in Washington said on Twitter that it “has never conducted and does not conduct any ‘malicious’ operations in cyberspace.”



CPR data shows attacks on Russia decreased over the same timeframe, said Finkelstein. There may be several reasons for that, he said, including Russian efforts to reduce the visibility of attacks or increased security to defend against them.



<h2 class="wp-block-heading"><a></a>‘IT Army of Ukraine’</h2>



As a long-time target of suspected Russian cyberattacks, Ukraine is seemingly welcoming the digital help.



Following a request posted on Twitter by Ukraine’s digital minister Mykhailo Fedorov, some 308,000 people joined a Telegram group known as the “IT Army of Ukraine.”  



One member of the group is Gennady Galanter, co-founder of information technology company Provectus. He said the group is focused on disrupting Russian websites, preventing disinformation and getting accurate information to Russian citizens.



“It’s working,” he said, clarifying that he’s acting in his own capacity, and not for his company. &nbsp;



Still, Galanter said he has mixed feelings about participating. One tactic employed by the group is distributed denial of service attacks, which try to make targeted websites inaccessible by overwhelming them with online traffic.



“It’s hooliganism,” he said, yet at the same time Galanter, who fled the Soviet Union in 1991 and whose wife is Russian, said he feels compelled to help do his part to “deliver truth and deny lies.”&nbsp;



He’s donated money, he said, but now, he added, “I’m doing this because I don’t know what else to do.”



Galanter said he’s concerned current efforts may be insufficient against Russia’s cyber capabilities. He also said he’s worried the group’s efforts may be dismissed as Ukrainian or Western propaganda or labeled a disinformation machine of the very type he says he’s fighting against.



“The reality is that a lot of my friends in Russia, my relatives … they’re completely misinformed,” he said. “They have a deeply inaccurate view of what’s going on — they just put to doubt what we say.”



Galanter said his company shut down its operations in Russia and helped to relocate employees who wanted to leave. He said the company told employees: “The world has become pretty white and black. Those of you who share our perception of reality, you’re welcome to join us.”



“Just like these people are now, I was a refugee,” he said. “What [Putin] wants to create is exactly what I escaped.”



<h2 class="wp-block-heading"><a></a>Moscow retaliation</h2>



It’s widely expected that Moscow and its supporters will retaliate against countries that side with Ukraine, and potentially the growing list of banks and businesses that are withdrawing from the country.



Elon Musk tweeted on March 4 that the decision to redirect Starlink satellites and deliver internet terminals to Ukraine meant that the “probability of being targeted is high.”



Experts warn reciprocal retaliation could lead to a “global cyberwar” between Russia and the West.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/russia-says-its-begun-partial-troop-pullback-from-ukraine-border-nato-urges-caution/">Russia says it’s begun partial troop pullback from Ukraine border; NATO urges caution</a></h3>



Russia is widely believed to be behind several digital attacks against Ukraine in the weeks prior to the invasion, but since then Russia has shown restraint, “at least for now,” according to Wollman.



Still, reports of growing anger inside the Kremlin over new sanctions, compounded by Russia’s military failures in Ukraine, may make cyber warfare one of few remaining “tools” in Putin’s playbook, he said.



“What tools does the Kremlin have against sanctions? They don’t have economic tools,” said Wollman. “According to some, a cyber response would be the likeliest Russian countermeasure.”



<h2 class="wp-block-heading"><a></a>Spillover to other conflicts?</h2>



The Ukraine-Russia war could inflame other long-standing territorial conflicts as well. Two Taiwanese tech startups, AutoPolitic and QSearch, announced last week they are providing free technology assistance to Ukraine and to “Ukrainian online activists around the globe” to counter Russian propaganda on social media.



“Being a Taiwanese who lived under constant propaganda and threats of invasion from our cousin-neighbor, I feel a special bond with Ukrainians and acidic anger at their invaders,” said AutoPolitic founder Roger Do, via a press release.

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