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Russian Mercenaries Withdraw from Rostov: Putin’s Grip on Power Shaken

Putin’s Control Questioned: Mutiny in Rostov Raises Concerns
Putin’s Rule Tested: Armed Mercenaries Retreat from Southern City
Mercenaries’ March for Justice: Rostov Rebellion Quelled

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Heavily armed Russian mercenaries withdrew from the southern Russian city of Rostov overnight under a deal that defused an unprecedented challenge to the authority of President Vladimir Putin and halted their rapid advance on Moscow.

Fighters of the Wagner group returned to their bases in return for guarantees for their safety and the leader, Yevgeny Prigozhin, will move to Belarus, according to the agreement mediated by Belarusian President Alexander Lukashenko.

However, the aborted mutiny raises big questions about Putin’s grip on a country he has ruled with an iron hand for more than two decades. Italy’s foreign minister said it had shattered the “myth” of Russian unity.

Putin has not made public comments since the deal was struck to de-escalate the crisis.

State television released excerpts on Sunday of an interview in which Putin said he was giving top priority to the conflict in Ukraine and was in constant contact with the defence ministry. However the interview appeared to have been recorded before the mutiny and he made no reference to Saturday’s events.

State television also said Putin would attend a meeting of Russia’s Security Council this coming week, without elaborating.

Prigozhin, 62, was seen leaving the district military headquarters in Rostov – hundreds of miles south of Moscow – late on Saturday in a sport utility vehicle. His whereabouts on Sunday were not immediately clear.

Western leaders had expressed concern over the turmoil in Russia, which has the world’s largest nuclear arsenal. On Sunday, the foreign ministry in Moscow said China – a key Putin ally – had expressed support for the Russian leadership.

China has not publicly commented on the mutiny. A senior Russian diplomat was in Beijing on Sunday for high level talks.

‘TAKE CARE OF YOURSELVES’

Prigozhin, a former Putin ally and former convict whose forces have fought the bloodiest battles of the 16-month war in Ukraine, said his decision to advance on Moscow was intended to remove corrupt and incompetent Russian commanders he blames for botching the war.

After capturing Rostov – the main rear logistical hub for Russia’s invasion of Ukraine – the mercenaries had raced hundreds of miles north in what Prigozhin called a “march for justice”, transporting tanks and armoured trucks and smashing through barricades set up to stop them, before the deal to withdraw was reached.

Videos shared on social media from Rostov overnight purportedly showed the mercenaries withdrawing in a convoy of armoured vehicles, tanks and coaches to the sound of cheers, chants of “Wagner” and celebratory gunfire from residents.

Reuters was able to verify the location of the video but not the date that it was filmed.

“Take care of yourselves,” shouted one woman.

The show of support for Wagner’s short-lived insurrection will alarm authorities in a country that is increasingly intolerant of public criticism of Putin and his rule.

Moscow was calm on Sunday, with the Red Square closed but otherwise little evidence of increased security. Monday has been declared a non-working day to allow time for things to settle.

The capital had told residents to stay indoors and deployed soldiers in preparation for the arrival of the mercenaries, who appeared to meet little pushback from the regular armed forces.

Chechen special forces who deployed to the Rostov region to resist the mercenaries’ advance were also withdrawing back to where they had been fighting in Ukraine, commander Apty Alaudinov said in a video published on Telegram.

DEAL BROKERED

Under the deal, brokered late on Saturday, Kremlin spokesman Dmitry Peskov said a criminal case opened against Prigozhin for armed mutiny would be dropped, Prigozhin would move to Belarus, and Wagner fighters who rallied to his cause would face no action, in recognition of their previous service to Russia.

Peskov said Lukashenko had offered to mediate, with Putin’s approval, because he had known Prigozhin personally for around 20 years.

In a televised address during Saturday’s drama, Putin said the rebellion put Russia’s very existence under threat, vowing to punish those behind the revolt and drawing parallels with the chaos of 1917 that had led to the Bolshevik revolution.

Peskov declined to say whether concessions were made to Prigozhin, other than guarantees of safety for him – something he said Putin gave his word to vouch for – and for Prigozhin’s men, to persuade him to withdraw all his forces.

Prigozhin has for months accused Defence Minister Sergei Shoigu and the chief of the general staff, Valery Gerasimov, of incompetence and of withholding ammunition from his fighters as they battled to take Bakhmut in Ukraine.

Wagner, whose men in Ukraine include thousands of ex-prisoners recruited from Russian jails, has grown into a sprawling international business with mining interests and fighters in Africa and the Middle East.

This month, Prigozhin defied orders to sign a contract placing his troops under Defence Ministry command. He launched the rebellion on Friday after alleging that the military had killed some of his men in an air strike. The Defence Ministry denied this.

Italy’s Foreign Minister Antonio Tajani said in an interview with Italian newspaper Il Messaggero published on Sunday that Putin created the conditions for Saturday’s insurrection by allowing Prigozhin to build up such a formidable private army.

“The myth of the unity of Putin’s Russia is over. This internal escalation divides the Russian military deployment. It’s the inevitable outcome when you support and finance a legion of mercenaries,” Tajani said.

“One thing is certain: the Russian front is weaker than yesterday. I hope that peace will now be closer”.

The revolt came just weeks into the start of Ukraine’s strongest counteroffensive drive since Moscow’s invasion in February last year.

Russian forces shelled the southern Ukrainian city of Kherson, killing one civilian man, the local governor said on Sunday.

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Ukraine Strikes Russian Fuel Depot, Sparking Fires in Belgorod Region

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The governor of Russia’s southern Belgorod region said on Sunday Ukrainian forces attacked a fuel depot, triggering a series of fires after Moscow and Kyiv accused each other of launching overnight attacks on border regions.

“The Ukrainian military, aided by lethal drones, attacked a fuel storage site in Volokonovsky district,” Vyacheslav Gladkov wrote on Telegram, referring to an area near the border.

“Several reservoirs caught fire in an explosion. Firefighting crews are putting out the blaze.”

Gladkov also reported drone attacks on three other localities. There were no casualties reported in the incidents.

In the overnight air attacks, Ukrainian officials said two people died and four were injured in Sumy region. Gladkov reported three civilians were injured in Belgorod.

Two children were among those injured in Sumy, the military administration of the northeastern Ukrainian region said on Sunday on Telegram. Several homes and cars were damaged.

In Belgorod region, three civilians, including two children, were injured. Gladkov said two residential buildings were destroyed and more than 15 buildings in total were damaged.

The Russian defence ministry said it had destroyed one drone over Belgorod region and another over Kursk region, where Ukrainian forces launched a cross-border incursion last month. It said two drones were intercepted over Belgorod overnight.

Border regions on both sides have been subject to frequent attacks. Both Moscow and Kyiv deny targeting civilians, saying the attacks are aimed at destroying each other’s infrastructure critical to war efforts.

Thousands of civilians have died in the war, which Russia started with a full-scale invasion on Ukraine in February 2022. Millions of Ukrainians have also been displaced, while their cities and villages have become piles of rubble

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Ghana Ordered to Pay $111.5M to Power Company After U.S. Court Ruling

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The government of Ghana has been ordered to pay $111.5 million to Ghana Power Generation Company (GPGC) following a ruling by a District of Columbia Court in the United States.

This ruling was granted in favor of GPGC after Ghana failed to respond to an earlier tribunal ruling from the United Kingdom, which found the country in breach of a power purchase agreement.

The court’s decision comes after Ghana terminated its contract with GPGC on February 18, 2018. The UK tribunal, in its final award dated January 26, 2021, found that Ghana had violated its contractual obligations, resulting in significant financial damages for GPGC.

The tribunal initially awarded GPGC $134.3 million in damages, calculated using the Early Termination Payment formula as specified in the purchase agreement.

Ghana, however, did not comply with the tribunal’s verdict, prompting GPGC to pursue the matter in U.S. courts. On January 19, 2024, GPGC filed a lawsuit in the District of Columbia, citing the Federal Arbitration Act and the New York Convention, which provides for the recognition of international arbitration awards.

Court documents reveal that the petition was formally delivered to Ghana’s Ministry of Foreign Affairs and Regional Integration on January 23, 2024.

Despite receiving the legal documents, Ghana failed to respond to the court proceedings by the March 29, 2024, deadline. This non-response led the U.S. court to grant a default judgment in favor of GPGC.

Chief Judge James E. Boasberg emphasized that the arbitral judgment fell under the New York Convention, which requires member states, including the United States, to recognize and enforce international arbitration awards.

He further noted that Ghana had voluntarily submitted to international arbitration when entering the power purchase agreement, waiving its sovereign immunity in the process.

Although GPGC was not awarded pre-judgment interest, Ghana will be obligated to pay post-judgment interest at rates set by U.S. law.

This adds an additional financial burden to the $111.5 million judgment as the payment accrues further interest over time.

The country narrowly avoided a separate $11 billion arbitration award in the infamous P&ID case, which was eventually overturned due to findings of corruption and bribery.

However, in the GPGC case, multiple European courts have upheld enforcement orders, leaving Ghana with limited legal recourse.

The court’s decision is expected to place added pressure on Ghana as it faces mounting financial obligations related to international arbitration disputes.

GPGC has indicated that it will pursue all available legal avenues to ensure full recovery of the damages awarded by the tribunal, including possible enforcement actions in other jurisdictions.

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Zhongshang Fucheng Moves to Auction Nigerian Properties in UK Following $70M Arbitration Award

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Bola Tinubu

Zhongshang Fucheng Industrial Investment Ltd has escalated its efforts to collect a $70 million arbitration award from Nigeria by putting two residential properties in Liverpool up for sale.

This significant development follows a 2021 arbitration verdict against Nigeria, which remains unsettled.

The Chinese investment group has reportedly listed two buildings linked to the Nigerian government—15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road—on the global online marketplace eBay.

The move is part of a broader strategy to recover the outstanding $70 million, which includes a principal amount of $55,675,000, plus interest and legal costs, as stipulated by the arbitration verdict.

The arbitration stemmed from a dispute between Zhongshang Fucheng and Ogun State over a trade treaty violation.

The company claimed that Ogun State rescinded its rights to a free trade zone in 2016, prompting a legal battle that saw Zhongshang’s executives expelled from Nigeria.

The British court granted Zhongshang the authority to seize Nigerian assets in the UK after the Nigerian government failed to settle the arbitration judgment.

The seizure and subsequent auction of these properties mark a pivotal moment in the ongoing legal conflict.

The properties were confiscated because they were not classified as diplomatic or consular assets, making them subject to seizure under the court’s orders.

According to sources familiar with the situation, the properties are valued at approximately $2.2 million.

Zhongshang Fucheng has opted for an online auction to expedite the sale, aiming to reach a broad pool of potential buyers.

The decision to use eBay highlights the company’s commitment to transparency and swift asset recovery.

“This move is not just about recovering the funds; it’s a demonstration of our commitment to enforcing the arbitration award and ensuring that due process is followed,” said a consultant working with Zhongshang Fucheng, who spoke on condition of anonymity.

The Nigerian government, already grappling with similar arbitration cases, is facing increased scrutiny as European courts have granted enforcement orders in several countries, including the UK, Belgium, and France.

The ongoing conflict with Zhongshang Fucheng has intensified pressure on Nigerian authorities to address these legal and financial challenges more effectively.

In June 2024, the UK High Court, King’s Bench Division, ruled in favor of Zhongshang’s right to seize the Liverpool properties.

Master Lisa Sullivan’s ruling emphasized that the properties were used for commercial purposes, thereby excluding them from sovereign immunity protections.

The case against Nigeria underscores broader issues related to international arbitration and asset recovery, reflecting a growing trend of global legal disputes over state assets.

For Zhongshang Fucheng, the auction of the Liverpool properties represents a critical step in securing the funds awarded by the arbitration panel.

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