The Jim Bakker Show

Cyclone batters southwestern India coast killing 14, many missing

MUMBAI (Reuters) – Cyclone Ockhi barrelled into the Lakshwadeep islands in southwestern India on Saturday after drenching the neighboring states of Kerala and Tamil Nadu, claiming so far around 14 lives with many fishermen still feared trapped at sea.

Authorities including the National Disaster Management Authority (NDMA), India’s Coast Guard and Navy have rescued about 223 fishermen and evacuated thousands of people from cyclone hit areas, officials said, as they continued their operations on Saturday.

Prime Minister Narendra Modi has spoken to the chief minister of Tamil Nadu, assuring him of support operations including necessary funds, according to local media.

Ockhi is expected to travel north towards Mumbai and Gujarat in the next 48 hours, according to Indian Meteorological Department (IMD) Director S. Sudevan in Trivandrum, though it is likely to lose intensity.

“The intensity of the wind may come down and the cyclone could change into depression,” Sudevan said adding fishermen have been warned not go to the sea for the next few days as waves are likely to be 3-5 meters (12-15 feet) high.

(Reporting by D Jose in KERALA and Suvashree Dey Choudhury in MUMBAI; Editing by Michael Perry)

Flynn prepared to testify Trump directed him to contact Russians: ABC

By Sarah N. Lynch

WASHINGTON (Reuters) – ABC News reported on Friday that former U.S. national security adviser Michael Flynn is prepared to testify that President Donald Trump directed him to make contact with Russians when he was a presidential candidate.

Reuters could not immediately verify the report, which cited a Flynn confidant. The news sent U.S. stocks sharply lower. [nL3N1O14E8]

Flynn, a former top Trump campaign aide and a central figure in a federal investigation into Moscow’s alleged interference in the 2016 U.S. presidential election, pleaded guilty on Friday to lying to the FBI.

His plea agreement, and his decision to cooperate with the investigation led by Special Counsel Robert Mueller, marked a major escalation in a probe that has dogged Trump’s administration since the Republican president took office in January.

Flynn acknowledged making false statements about contacts he had with Russia’s ambassador to the United States, Sergei Kislyak, last year. The charges carry sentence of up to five years in prison.

Flynn was fired from his White House post in February for misleading Vice President Mike Pence about his conversations with the ambassador.

Moscow has denied a conclusion by U.S. intelligence agencies that it meddled in the election campaign to try to sway the vote in Trump’s favor. Trump has denied any collusion by his campaign.

(Reporting by Susan Heavey and Tim Ahmann; Additional reporting by John Walcott and Nathan Layne; Writing by Alistair Bell; Editing by Frances Kerry)

U.S. firms push Washington to restart nuclear pact talks with Riyadh: sources

By Reem Shamseddine and Sylvia Westall

RIYADH/DUBAI (Reuters) – U.S. firms attracted by Saudi Arabia’s plans to build nuclear reactors are pushing Washington to restart talks with Riyadh on an agreement to help the kingdom develop atomic energy, three industry sources said.

Saudi Arabia has welcomed the lobbying, they said, though it is likely to worry regional rival Iran at a time when tensions are already high in the Middle East.

One of the sources also said Riyadh had told Washington it does not want to forfeit the possibility of one day enriching uranium – a process that can have military uses – though this is a standard condition of U.S. civil nuclear cooperation pacts.

“They want to secure enrichment if down the line they want to do it,” the source, who is in contact with Saudi and U.S. officials, said before U.S. Energy Secretary Rick Perry holds talks in Riyadh early next week.

Another of the industry sources said Saudi Arabia and the United States had already held initial talks about a nuclear cooperation pact.

U.S. officials and Saudi officials responsible for nuclear energy issues declined to comment for this article. The sources did not identify the U.S. firms involved in the lobbying.

Under Article 123 of the U.S. Atomic Energy Act, a peaceful cooperation agreement is required for the transfer of nuclear materials, technology and equipment.

In previous talks, Saudi Arabia has refused to sign up to any agreement with the United States that would deprive the kingdom of the possibility of one day enriching uranium.

Saudi Arabia, the world’s top oil producer, says it wants nuclear power solely for peaceful uses – to produce electricity at home so that it can export more crude. It has not yet acquired nuclear power or enrichment technology.

Riyadh sent a request for information to nuclear reactor suppliers in October in a first step towards opening a multi-billion-dollar tender for two nuclear power reactors, and plans to award the first construction contract in 2018.

Reuters has reported that Westinghouse is in talks with other U.S.-based companies to form a consortium for the bid. A downturn in the U.S. nuclear industry makes business abroad increasingly valuable for American firms.

Reactors need uranium enriched to around 5 percent purity but the same technology in this process can also be used to enrich the heavy metal to a higher, weapons-grade level. This has been at the heart of Western and regional concerns over the nuclear work of Iran, which enriches uranium domestically.

Riyadh’s main reason to leave the door open to enrichment in the future may be political – to ensure the Sunni Muslim kingdom has the same possibility of enriching uranium as Shi’ite Muslim Iran, industry sources and analysts say.

POTENTIAL PROBLEM FOR WASHINGTON

Saudi Arabia’s position poses a potential problem for the United States, which has strengthened ties with the kingdom under President Donald Trump.

Washington usually requires a country to sign a nuclear cooperation pact – known as a 123 agreement – that forfeits steps in fuel production with potential bomb-making uses.

“Doing less than this would undermine U.S. credibility and risk the increased spread of nuclear weapons capabilities to Saudi Arabia and the region,” said David Albright, a former U.N. weapons inspector and president of the Washington-based Institute for Science and International Security (ISIS).

It is not clear whether Riyadh will raise the issue during Perry’s visit, which one of the industry sources said could include discussion of nuclear export controls.

Under a nuclear deal Iran signed in 2015 with world powers – but which Trump has said he might pull the United States out of – Tehran can enrich uranium to around the level needed for commercial power-generation.

It would be “a huge change of policy” for Washington to allow Saudi Arabia the right to enrich uranium, said Mark Fitzpatrick, executive director of the Americas office at the International Institute for Strategic Studies think tank.

“Applying the ‘golden standard’ of not allowing enrichment or preprocessing (of spent fuel) has held up a 123 agreement with Jordan for many years, and has been a key issue in U.S. nuclear cooperation with South Korea,” said Fitzpatrick, a nuclear policy expert.

The United States is likely to aim for restrictions, non-proliferation analysts say.

These could be based on those included in the 123 agreement Washington signed in 2009 with the United Arab Emirates, which is set to start up its first South Korean-built reactor in 2018 and has ruled out enrichment and reprocessing.

“Perhaps Saudi Arabia is testing the Trump administration and seeing if the administration would be amenable to fewer restrictions in a 123 agreement,” ISIS’s Albright said.

REFORM PLAN

Saudi Arabia’s nuclear plans have gained momentum as part of a reform plan led by Crown Prince Mohammed bin Salman to reduce the economy’s dependence on oil.

Riyadh wants eventually to install up to 17.6 gigawatts (GW) of atomic capacity by 2032 – or up to 17 reactors. This is a promising prospect for the struggling global nuclear industry and the United States is expected to face competition from South Korea, Russia, France and China for the initial tender.

Hashim bin Abdullah Yamani, head of the Saudi government agency tasked with the nuclear plans, has said the kingdom wants to tap its own uranium resources for “self-sufficiency in producing nuclear fuel” and that this is economically viable.

As a nuclear conference in October, Saudi officials declined to comment when asked to expand on the topic.

In 2015, before the Iran deal was signed, Prince Turki al-Faisal, a senior Saudi royal and former intelligence chief, said Riyadh would want the option to enrich uranium if Tehran had it.

In October, Maher al-Odan, the chief atomic energy officer of KACARE, said Saudi Arabia had around 60,000 tonnes of uranium based on initial studies and that the kingdom wanted to start extracting it to boost the economy.

Asked what would happen to the uranium after that, he replied: “This is a government decision.”

(Additional reporting by Stephen Kalin in Riyadh and Shadia Nasralla in Vienna, Editing by Timothy Heritage)

Seoul says North Korea puts Washington in range, but needs to prove critical technology

By Christine Kim and Dmitry Solovyov

SEOUL/MOSCOW (Reuters) – North Korea’s latest missile test puts Washington within range, but Pyongyang still needs to prove it has mastered critical missile technology, such as re-entry, terminal stage guidance and warhead activation, South Korea said on Friday.

South Korea’s Ministry of Defence said the Hwasong-15 missile tested on Wednesday was a new type of intercontinental ballistic missile (ICBM) which can fly over 13,000 km (8,080 miles), placing Washington within target range.

The test prompted a warning from the United States that North Korea’s leadership would be “utterly destroyed” if war were to break out, a statement that drew sharp criticism from Russia.

On Friday, Russian Foreign Minister Sergei Lavrov termed the threat from U.S. Ambassador to the United Nations Nikki Haley “a bloodthirsty tirade” and said military action against Pyongyang would be a big mistake, Russian news agencies reported.

“We will do everything to ensure that (the use of force) doesn’t happen so that the problem is decided only using peaceful and political-diplomatic means,” Lavrov said.

Separately, Russian lawmakers just back from a visit to Pyongyang said North Korea was not prepared to disarm, and while it did not want nuclear war it was morally ready for it, Russia’s RIA news agency reported.

Pyongyang has said its Wednesday missile test was a “breakthrough” and leader Kim Jong Un said the country had “finally realized the great historic cause of completing the state nuclear force.”

After North Korea released video footage and photographs of Hwasong-15, U.S. based experts said it appeared North Korea was indeed capable of delivering a nuclear weapon anywhere in the United States and could only be two or three tests away from being combat ready.

Yeo Suk-joo, South Korea’s deputy minister of defense policy, told the South Korean parliament that North Korea still needed to prove some technologies, like re-entry, terminal stage guidance and warhead activation.

Even so, South Korea’s Unification Ministry said North Korea was likely to pause its missile tests for a number of reasons, including the northern hemisphere winter season.

“For now if there are no sudden changes in situation or external factors, we feel there is a high chance North Korea will refrain from engaging in provocations for a while,” said Lee Yoo-jin, the ministry’s deputy spokeswoman.

North Korea is known to test fewer missiles in the fourth quarter of the year as troops are called to help with harvests, while the cold temperatures are a strain on the country’s fuel supplies.

This week’s missile launch was the first in 75 days.

South Korea Defence Minister Song Young-moo told parliament he expected North Korean leader Kim Jong Un to use his New Year’s Address to declare that North Korea had completed its weapons program.

South Korean and U.S. officials say the Hwasong 15 is the most advanced missile North Korea has ever tested.

Yeo told lawmakers the first stage engine of the missile featured a clustering of two engines from a smaller Hwasong-14 ICBM test-launched in July.

He said the Hwasong-15 is two meters (six feet) longer than the Hwasong-14. He said the second-stage engine requires further analysis.

Yeo said U.S. strategic assets would continue to be rotated on and near the Korean peninsula until the Pyeongchang Winter Olympics in South Korea next February in a bid to deter further North Korean “provocations.”

U.S. President Donald Trump has responded to the latest North Korean test with a fresh round of insults directed against Kim Jong Un, who he called “Little Rocket Man” and a “sick puppy.”

Trump has vowed to respond with tougher sanctions, but his administration has warned that all options are on the table in dealing with North Korea, including military ones.

North Korea has stuck to its effort to develop a nuclear-tipped missile capable of hitting the United States in spite of years of international sanctions and condemnation.

(Reporting by Christine Kim; additional reporting by Dmitry Solovyov in Moscow and David Brunnstrom in Washington; Editing by Michael Perry and Andrew Hay)

Magnitude 4.1 quake strikes Delaware, equals estimated state record

(Reuters) – A magnitude 4.1 earthquake struck Delaware on Thursday in a rare seismological occurrence for the U.S. Northeast, officials said, with the temblor’s strength equaling the estimated magnitude of an 1871 quake that was believed to be the largest ever in the state.

The quake, previously reported at magnitude 5.1 and then at 4.4, was centered in the Bombay Hook National Wildlife Refuge, according to a statement from the Delaware Emergency Management Agency. It was less than 10 miles (17 km) from the city of Dover and less than a mile (0.8 km) from Donas Landing.

There were no reports of injuries or damage, officials said.

In 1871, a quake believed to have been of magnitude 4.1 struck in Delaware, according to the website for the Delaware Geological Survey, a state agency.

The 1871 quake had been the largest on record for Delaware, according to the survey, but its strength has only been estimated.

The largest quake ever recorded in Delaware was a magnitude 3.8 temblor in 1973, according to the Delaware Geological Survey.

Earthquakes in Delaware do not occur on the edge of a tectonic plate, as is more common in places such as California, where fault lines between plates generate earthquakes. Generations of California residents have been bracing for the so-called “Big One” along the San Andreas Fault.

Instead, the Delaware temblor occurred far from the edge of a plate, said Thomas Pratt, a research geophysicist at the U.S. Geological Survey who is based in Virginia.

“There’s a lot of speculation, but we don’t have a good answer for why these earthquakes are occurring in the middle of the plates,” Pratt said.

The latest quake was downgraded to a magnitude 4.1 after data came in from several monitoring stations, U.S. Geological Survey geophysicist Rafael Abreu said by telephone.

It was felt in Philadelphia in the neighboring state of Pennsylvania, some 53 miles (85 km) from the epicenter.

The quake was shallow, only 5 miles (8 km) deep, which would have amplified its effect, and some people reported feeling light shaking in areas around New York City and Baltimore, according to the USGS website.

Many social media users also confirmed feeling the temblor and #earthquake had quickly risen to the top of trending topics on Twitter with more than 11,000 tweets mentioning the hashtag.

(Reporting by Sandra Maler in Washington and Alex Dobuzinskis in Los Angeles; Editing by Sandra Maler and Dan Grebler)

Long road ahead to a new life for wounded North Korean defector

By Hyonhee Shin

SEOUL (Reuters) – The North Korean soldier critically wounded when making a dash to the south last month may have cheated death, but even as his health improves, he is months if not years away from finding a normal life in South Korea, officials and other defectors say.

The transition to life in the democratic and prosperous South can be difficult for any defector from the isolated and impoverished North, let alone for a soldier from an elite border unit with potentially actionable military intelligence and a high profile that may complicate efforts to blend in.

The 24-year-old soldier, identified only by his surname Oh, has been released from intensive care after being shot five times during his daring defection, but is still battling a hepatitis B infection which could delay his transfer to a military hospital for some time, doctors said.

“As active duty soldier defectors have up-to-date information, the intelligence agencies would question the soldiers and see if anything needs to be addressed in our military’s operation and combat plans,” a current South Korean government official involved in resettling North Korean refugees told Reuters.

Oh will likely be under the protection of South Korea’s spy agency, the National Intelligence Service (NIS), and then be offered work such as code cracking in the military or related agencies, a former senior South Korean government official said.

“The decision would be made after a comprehensive assessment on what he means to national security, the level of information he has, and whether he would be capable of mingling with other defectors at the resettlement center,” the former official said.

A SPECIAL CASE

Defections by active-duty soldiers are extremely rare, once a year or less. Intelligence agencies are keen to question Oh, who was stationed in the Joint Security Area near the heavily fortified border, according to South Korean lawmakers briefed by the NIS.

Doctors have asked that officials wait until Oh is fully recovered both physically and emotionally before they begin questioning.

Given his high-profile escape and status as a member from an elite border unit, Oh will likely be given more personalized assistance, away from other North Korean defectors at the Hanawon resettlement center, the former South Korean official said.

Most defectors undergo security questioning by the National Intelligence Service for a few days up to several months in extreme cases, before being moved to the Hanawon resettlement center.

There they receive mandatory three-month education on life in the capitalist South, from taking public transportation to opening a bank account to creating an email address.

“It’s where you would get to see the outside world for the first time, as they take you out to meet people on the streets and learn how to access the social service network. These days, you can also do a homestay with an ordinary South Korean family,” said Ji Seong-ho, a 35-year-old defector who heads Now, Action and Unity for Human Rights (NAUH), a group that rescues and resettles North Korean refugees.

‘LIKE A BABY’

Such training can be more useful for some people than others, said Kim Jin-soo, a 29-year-old former member of the North Korean secret police who defected to the South in 2011.

“Looking back, it would’ve been really useful if they taught more realistic things even though it might discourage people, like how to prepare for a job fair and find a suitable workplace and why it’s important to lose the North Korean accent,” he said.

“Fresh off Hanawon, you’re like a one-year-old baby. But those are the things that would pose a real obstacle when you actually go out there on your own,” said Kim, who now works at a advertising firm in Seoul.

After leaving Hanawon, central and local governments provide defectors 7 million won ($6,450) in cash over a year – barely a fifth of South Korea’s annual average income – as well as support in housing, education and job training. Police officers are assigned to each of the defectors to ensure their security.

Oh may have potential value to the South Korean government or organizations that try to highlight conditions in North Korea, but it will be up to him whether he wants to live a life in the limelight, said Sokeel Park, country director for Liberty in North Korea, which helps North Korean refugees.

“If he has any mind to get involved in that kind of stuff then there will be all kinds of media or non-governmental organizations who would fall over themselves to give him that platform,” said Park.

“But if he makes a good recovery and he chooses to blend it, then he’s just another young guy with a vague back story.”

GRAPHIC: Defector braves hail of bullets http://reut.rs/2zAUDRN

(Writing and additional reporting by Josh Smith; Editing by Lincoln Feast)

Israeli, Palestinian killed in two violent incidents

JERUSALEM (Reuters) – An Israeli and a Palestinian were killed on Thursday in two separate incidents in Israel and the occupied West Bank, officials said.

An Israeli man was stabbed to death in the southern Israeli city of Arad in what police said was “most probably a terrorist attack”.

“The investigation is continuing and police units are searching for the suspect who fled the scene,” said a police spokesman.

Earlier in the day, an Israeli settler shot and killed a Palestinian man in the West Bank, in what the Israeli army said was a response to an attack by Palestinians throwing rocks, an account that Palestinians denied.

The Israeli military said the shooter had opened fire in self-defense as part of a group of settlers hiking near the village of Qusrah who had come under attack.

Local villagers identified the Palestinian who was killed as Mahmoud Odeh, a 48-year-old farmer. They denied that any clash had taken place before the shooting.

Palestinian President Mahmoud Abbas condemned the incident as a “cowardly act and evidence to the world of the ugly crimes conducted by settlers against unarmed Palestinians”, his office said in a statement.

The Israeli military said troops arrived at the scene after the shooting. Israeli police said they were investigating the incident.

A wave of Palestinian street attacks that began two years ago has largely dissipated and it is uncommon for two deadly events to occur in the same day.

(Additional reporting by Mustafa abu-Ghaneyeh and Nidal al-Mughrabi, Writing by Ori Lewis; Editing by Ralph Boulton)

Senate grapples with tax cut plan’s impact on federal deficit

By David Morgan and Amanda Becker

WASHINGTON (Reuters) – U.S. Senate Republicans will grapple on Friday with the possibility of adding a tax increase to sweeping legislation meant to cut taxes on businesses and individuals, aiming to win support from fiscal conservatives worried about the bill’s impact on the federal deficit.

With a mandatory 20 hours of Senate debate nearing expiration, the Republican lawmakers, who control the chamber, could move to a final vote late in the day after a procedural vote starting at 11 a.m. EST (1600 GMT) and a potentially chaotic “vote-a-rama” on tax bill amendments offered by both Republicans and Democrats.

Republicans were still wrangling behind the scenes over how to raise $350 billion or more in taxes over 10 years to prevent their legislation from ballooning the federal deficit if the proposed cuts fail to generate the expected economic growth.

Senate Republican leader Mitch McConnell and others were also working on deals to win support from party members who want better tax breaks for non-corporate pass-through businesses, a bigger child tax credit for families, and a $10,000 deduction for state and local property taxes.

Despite the hurdles, rank-and-file Republicans were still optimistic that they could approve the bill this week and agree this month to final legislation with the House of Representatives, which their party also controls.

“This is the big enchilada,” said Senator Johnny Isakson of Georgia. “We’ve still got a chance to do something good, and I’m going to try and do it.”

Since taking office in January, President Donald Trump and the Republican-led Congress have passed no major legislation. Their bill would be the biggest overhaul of the U.S. tax system since the 1980s.

Success is crucial to Republican political prospects in the November 2018 elections, when the party will fight to keep control of the Senate and the House of Representatives.

But the effort stumbled on Thursday when Republicans acknowledged that Senate rules would not permit them to add a mechanism to trigger tax increases in coming years if the bill fails to boost the economy enough to generate sufficient revenues to pay for tax cuts.

Senator Bob Corker and other Republicans concerned about the deficit impact had demanded the trigger in exchange for their support. On Thursday, the nonpartisan Joint Committee on Taxation released a report saying the legislation would add $1 trillion to the deficit over the next 10 years, even with tax-driven economic growth projections factored in.

Republicans are now examining options that could raise taxes at a particular point over the next decade.

“We have an alternative, frankly a tax increase we don’t want to do, to try and address Senator Corker’s concerns,” said Senate Majority Whip John Cornyn, the chamber’s No. 2 Republican.

As drafted, the Senate bill would cut the U.S. corporate tax rate to 20 percent from 35 percent after a one-year delay and reduce the tax burden on businesses and individuals, while ending many tax breaks.

Analysts said lawmakers could scale back tax cuts for corporations and top individual earners.

Asked if lawmakers would have to accept smaller tax cuts, Senate Finance Committee Chairman Orrin Hatch said: “We’ll have to see.”

Early on Friday morning, Trump praised congressional Republicans’ work and blamed Democrats for trying to derail the bill, tweeting: “The Bill is getting better and better.”

Democrats have been united in their opposition to the bill, calling it a giveaway to the wealthy and corporations.

(Reporting by David Morgan and Amanda Becker; Additional reporting by Susan Heavey; Editing by Kevin Drawbaugh and Lisa Von Ahn)

China pushing billions into Iranian economy as Western firms stall

By Mark Bendeich and Parisa Hafezi

ROME/ANKARA (Reuters) – China is financing billions of dollars worth of Chinese-led projects in Iran, making deep inroads into the economy while European competitors struggle to find banks willing to fund their ambitions, Iranian government and industry officials said.

Freed from crippling nuclear sanctions two years ago, Iran is drawing unprecedented Chinese funding for everything from railways to hospitals, they said. State-owned investment arm CITIC Group recently established a $10 billion credit line and China Development Bank is considering $15 billion more.

“They (Western firms) had better come quickly to Iran otherwise China will take over,” said Ferial Mostofi, head of the Iran Chamber of Commerce’s investment commission, speaking on the sidelines of an Iran-Italy investment meeting in Rome.

The Chinese funding, by far the largest statement of investment intent of any country in Iran, is in stark contrast with the drought facing Western investors since U.S. President Donald Trump disavowed the 2015 pact agreed by major powers, raising the threat sanctions could be reimposed.

Iranian officials say the deals are part of Beijing’s $124 billion Belt and Road initiative, which aims to build new infrastructure – from highways and railways to ports and power plants – between China and Europe to pave the way for an expansion of trade.

A source in China familiar with the CITIC credit line, which was agreed in September, called it “an agreement of strategic intent”. The source declined to give details on projects to be financed, but Iranian media reports have said they would include water management, energy, environment and transport projects.

An Iranian central bank source said loans under the credit line would be primarily extended in euros and yuan.

The China Development Bank signed a memorandum of understanding for $15 billion, Iranian state news agency IRNA said on Sept. 15.

The bank itself declined to comment, in line with many foreign investors and banks, including from China, who were reluctant to discuss their activities in Iran for this story. The web sites of banks and companies often carry little or no information on their Iran operations.

POWERHOUSE

With a population of 80 million and a large, sophisticated middle class, Iran has the potential to be a regional economic powerhouse. But with the risk of sanctions hanging in the air, more and more foreign investors want Tehran to issue sovereign guarantees to protect them in case the projects are halted.

Economic ties between Iran and Italy, its biggest European trade partner, have been affected.

Italy’s state-owned rail company, Ferrovie dello Stato, is a consultant in the building of a 415-km (260-mile) high-speed north-south rail line between Tehran to Isfahan via Qom by state-owned China Railway Engineering Corp.

The Italian firm is separately contracted to build a line from Qom west to Arak, but it needs 1.2 billion euros in financing. Though backed by the state’s export insurance agency, it says it needs a sovereign guarantee.

“We are finalizing the negotiations and we are optimistic about moving forward,” said Riccardo Monti, chairman of Italferr, the state firm’s engineering unit, adding that the financing should be finalised by March next year.

Prime Minister Matteo Renzi’s promise in Tehran last year to oil the wheels of trade with a 4 billion euro credit line from Italy’s state investment vehicle is effectively dead, a source in Italy familiar with the matter said.

Cassa Depositi e Prestiti (CDP) risked losing the confidence of its many U.S. bond-holders who could sell down their holdings if the credit line went ahead, the source said.

A few European banks have deepened trade ties with Iran this year — Austria’s Oberbank <OBER.VI> inked a financing deal with Iran in September.

South Korea has also proved a willing investor, with Seoul’s Eximbank signing an 8 billion euros credit line for projects in Iran in August, according to Chinese state news agency Xinhua.

But China is the standout.

Valerio de Molli, head of Italian think tank European House Ambrosetti, reckons China now accounts for more than double the EU’s share of Iran’s total trade.

“The time to act is now, otherwise opportunities nurtured so far will be lost,” de Molli said.

A MOVING TRAIN

Iranian officials attending this week’s meeting in Rome sought to goad European firms and their bankers into action by talking up the Chinese financing and investments.

“The train is going forward,” said Fereidun Haghbin, director general of economic affairs at Iran’s foreign ministry. “The world is a lot greater than the United States.”

Some Iranian officials remain concerned that investment could become lop-sided and are looking at creative ways to maintain investment links with the West, however.

The Iran chamber is encouraging Western firms to consider transferring technology as a way of earning equity in Iranian projects rather than focusing on capital.

It was also seeking approval to set up a 2.5-billion-euro offshore fund, perhaps in Luxembourg, as an indirect way for foreigners to invest in Iran, especially small and medium-sized Iranian enterprises, Mostofi said.

The fund would issue the financial guarantees that foreigners want in return for a fee, effectively stepping in where banks now fear to tread. Most of the fund’s capital would come from Iran, Mostofi said.

For now, however, big Western firms remain stuck.

Italian power engineering firm Ansaldo Energia, controlled by state investor CDP and part-owned by Shanghai Electric Group <601727.SS>, has been in Iran for 70 years.

Its chairman, Giuseppe Zampini, told Reuters at the Rome conference there were many opportunities for new contracts but his hands were tied for now, partly because Ansaldo bonds were also in the hands of U.S. investors.

“My heart says that we are losing something,” Zampini said.

(Additional reporting by Shu Zhang in BEIJING, Stefano Bernabei in ROME, Parisa Hafezi in ANKARA and Jonathan Saul in LONDON; Editing by Sonya Hepinstall)

Yemen blockade needs to be fully wound down: U.N. aid chief

By Tom Miles

GENEVA (Reuters) – The Saudi-led military coalition must fully lift its blockade on Yemen, where seven or eight million are “right on the brink of famine”, U.N. humanitarian chief Mark Lowcock said on Friday, but he declined to say if maintaining such a blockade was legal.

“That blockade has been partially wound down but not fully wound down. It needs to be fully wound down if we are to avoid an atrocious humanitarian tragedy involving the loss of millions of lives, the like of which the world has not seen for many decades,” he said.

The coalition, fighting the armed Houthi movement in Yemen with backing from the United States, Britain and other countries, eased the blockade this week, allowing aid ships into the Red Sea ports of Hodeidah and Salif, as well as U.N. flights to Sanaa.

U.N. humanitarian officials have said Yemen cannot rely on humanitarian aid alone but must have commercial imports too, because it relies on imports for the vast majority of its food, fuel and medicine.

The coalition wants tighter U.N. verification and inspection for commercial ships entering the Houthi-controlled port of Hodeidah, the most important hub.

“I’ve called for five things in respect of the Saudi blockade,” Lowcock said. “Some of them have happened like the resumption of humanitarian air services, like partial reopening of the ports of Hodeidah and Saleef on the Red Sea. What I’m interested in is finding solutions.”

According to a 2015 U.N. Security Council resolution on Yemen, “arbitrary denial of humanitarian access and depriving civilians of objects indispensable to their survival, including wilfully impeding relief supply and access, may constitute a violation of international humanitarian law.”

Lowcock, launching the U.N.’s humanitarian appeal for 2018, declined to say if Saudi Arabia and its partners were in breach of the law, but said the world body had consistently called on all sides to uphold their obligations.

“It is absolutely essential that people uphold their international obligations. Wars have rules and they need to be complied with,” he said.

“I’m not a lawyer but clearly international humanitarian law includes a requirement to facilitate unhindered access for aid agencies, and that’s what I’ve been trying to secure both in what I’ve said publicly and also in my private dialogue,” he told Reuters.

(Reporting by Tom Miles; Editing by Alison Williams, William Maclean)

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