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Afghanistan demand US to return $3.5b in frozen Afghan assets

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The Taliban authorities had once again called for the release of Afghan central bank’s assets which Washington intends to use the funds to compensate victims of the 9/11 attacks.

The fund is $7 billion and the US President Joe Biden signed an executive order last year to equally split it between humanitarian efforts for the Afghan people and the relatives of September 11, 2021. The money was deposited in New York before the Taliban takeover in Kabul in August 2021.

Mr. Biden said his administration is going to freeze the money to prevent it from falling to the Taliban hand and asked the judge for permission to move $3.5 billion to a Swiss-based trust fund.

“The Afghan Fund will protect, preserve and make targeted disbursements of that $3.5 billion to help provide greater stability to the Afghan economy,” the US Treasury said, but the Taliban rejected and demanded the return of billions of dollars held in the US and elsewhere.

US judge spoke against seizing Afghanistan’s $3.5b

A federal judge in New York said that the families of victims of the 9/11 terror attacks cannot seize $3.5 billion in Afghan central bank reserves.

US District Judge George Daniels in the Southern District of New York said the court lacked the jurisdiction to seize the money from the central bank of Afghanistan.

“The judgment creditors are entitled to collect on their default judgments and be made whole for the worst terrorist attack in our nation’s history, but they cannot do so with the funds of the central bank of Afghanistan,” Mr. Daniels said.

“The Taliban — not the former Islamic Republic of Afghanistan or the Afghan people — must pay for the Taliban’s liability in the 9/11 attacks,” the judge said in a 30 pages statement.

Mr. Daniels further went on saying that he was “constitutionally restrained” from awarding the assets to the families because it would effectively mean recognizing the Taliban as the legitimate government of Afghanistan.

No countries have so far recognized the Taliban government but some countries have reopened their diplomatic missions and the Taliban had repeatedly called on the world to resume its activities and work with the new government.

Taliban happy with US judge’s decision

The Taliban authorities have welcomed the US court ruling and called on Washington to return the money back to Afghanistan without any further delay.

“These assets belong to Afghanistan. There should be no excuse to freeze or to not return them to the people of Afghanistan,” Bilal Karimi, Deputy Government Spokesman, told AFP.

“They must be returned without any terms and conditions.”

Last year when Biden issued an executive order to seize the funds, thousands of Afghans took to the streets in the capital city Kabul and other provinces to protest against freeze of the country’s assets, demanding the release of Afghans assets.

“Our seized money should be handed over. Give our money back” the protestors were chanting at that time. They also said that this money belongs to the ordinary Afghans and it has nothing to do with the Taliban or the previous government.

Besides freezing Afghan money, the World Bank and the International Monetary Fund (IMF) had also stopped its funds to Afghanistan under control of the Taliban that had impacted the economy severely.

After the disintegration of the internationally-supported-and-backed republic government, top officials including President Ashraf Ghani and its acting governor for the central bank fled the country, leaving behind these billions of money.

Now the Taliban claimed a right to the money, but it lacked legal recognition to own them at a time when country’s economy already collapsed leading to mass starvation and unprecedented poverty.

$4.6b needed to help 23.7m Afghans

The UN Office for the Coordination of Humanitarian Affairs (UNOCHA) has called for immediate support and humanitarian funding to assist 23.7 million people in Afghanistan.

“More reasons why early humanitarian funding is critical in Afghanistan. Aid agencies can sustain winterization activities, support families during the planting season, prepare for flood response ahead of rains. $4.6b is needed in 2023 to assist 23.7 M people,” UNOCHA said in a tweet post.

Many exports strongly believe that the frozen money will definitely help Afghan people in such a time when their economy is deteriorated. They say there are several NGOs and other local institutions where the world can work with in order to support the needy people. They also suggest finding a legal framework to engage with the Taliban because they are now the ruler and the people need support.

There is an understanding that such funding will not resolve the deeper structural problems that have sent the country’s economy spiraling into ruin, but at least it will prevent further decline and help the ordinary Afghans survive. Billions of dollars showered in Afghanistan in the past 20 years, but nothing has changed significantly. During these years, the Afghan economy was drastically and artificially bolstered by enormous influxes of foreign aid and security assistance from the Western countries.

Ghani among top gift givers to Bidens in 2021

It is worth mentioning that people were in need of humanitarian support during the republic government as well. There were millions of people who needed support and the government itself was run by the foreign funds.

(Left), former Afghan President Ashraf Ghani and (right) President Joe Biden

More than half of the Afghan population were under the poverty line and this was also admitted by Ghani himself. But despite economic issues, Mr. Ghani, were among the top gift givers to President Biden and his family in 2021.

Ghani and his wife gave Biden and first lady Jill Biden silk rugs worth an estimated $28,800, and this happened two months ahead of the fall of the republic government. Mr. Ghani also handed the US Defense Secretary Lloyd Austin a carpet valued at $2,650 in March, according to US media report.

In June the same year, Abdullah Abdullah, the former head of the high council for national reconciliation also gifted Biden a brass and lapis lazuli jewelry box, worth an estimated $1,150.

 

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Microsoft urges Trump to address Russian and Chinese ‘cyber threats’

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Microsoft President Brad Smith has called on Donald Trump to take decisive action against cyber-attacks originating from Russia, China, and Iran, citing an alarming rise in state-sponsored hacking targeting U.S. government officials and election campaigns.

Speaking to The Financial Times (FT), Smith, who also serves as the company’s executive vice president and chief legal officer, emphasized that cybersecurity “deserves to be a more prominent issue in international relations.” He urged the incoming Trump administration to send a strong message to deter hostile nations.

“I hope the Trump administration will push harder against nation-state cyberattacks, particularly from Russia, China, and Iran. We cannot tolerate the level of attacks we have seen today,” Smith stated.

Rise in ransomware attacks

Smith pointed to a surge in ransomware attacks on U.S. companies, frequently carried out by criminal organizations that he said are often “tolerated … and in some cases, even facilitated” by the Russian government.

Adding to the concerns, U.S. law enforcement officials last week accused China of conducting a widespread cyber espionage campaign, infiltrating multiple American telecommunications networks ahead of the election.

According to Microsoft, its customers face more than 600 million cyber-attacks daily, underscoring the urgent need for robust defensive measures.

Progress under Biden administration

Smith acknowledged that the Joe Biden administration has made “tremendous progress in strengthening cybersecurity defenses.” However, he stressed the need for additional measures to deter and dissuade other nations from engaging in such activities.

A recent Microsoft study revealed that nation-state groups and criminal gangs are increasingly collaborating, sharing tools, and conducting joint operations to target vulnerable systems.

In his testimony before the U.S. Senate in September, Smith highlighted that Russia, China, and Iran have ramped up digital efforts to interfere in global elections, including those in the United States.

Microsoft faces security criticism

Despite its advocacy for stronger cybersecurity measures, Microsoft itself has faced scrutiny over its own security practices.

In March, a report by the U.S. Cybersecurity Review Board criticized the company’s security culture, describing it as “inadequate.” The report highlighted several “avoidable mistakes” that allowed Chinese hackers to access hundreds of email accounts hosted on Microsoft’s cloud systems, including those of senior U.S. government security officials.

In response, Microsoft CEO Satya Nadella pledged to prioritize security “above all else,” including linking employee compensation to improved security outcomes. The company has also begun implementing changes to its Windows operating system to enable faster recovery from incidents such as the global IT outage caused by a flawed CrowdStrike security update in July.

Call for exporting digital technologies to the Middle East and Africa

Beyond cybersecurity, Smith commented on the potential impact of a second Trump administration on the technology sector. He noted that anticipated changes to merger and acquisition regulations in the U.S. could be offset by heightened scrutiny in other regions.

Smith also renewed his call for the U.S. government to “help accelerate the export of key American digital technologies” to regions like the Middle East and Africa. This appeal comes in the wake of export controls imposed by the Biden administration on artificial intelligence chips over fears they could be diverted to China.

“We really need to standardize processes so that American technology can get to these other parts of the world as quickly as Chinese technology,” Smith stated.

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Biden plans to write off Ukraine’s $4.6bn debt ahead of Trump

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President Joe Biden’s administration has officially notified Congress of its intention to forgive Ukraine’s $4.65 billion debt, a move tied to ongoing efforts to support the country amid its conflict with Russia.

This debt represents half of the $9 billion provided to Kyiv as part of the $61 billion aid package approved by Washington in April. Unlike other forms of assistance, this funding was issued as conditionally repayable loans, with provisions allowing the United States President to cancel up to 50% of the debt if deemed necessary.

In a statement, the U.S. State Department explained that the debt cancellation is intended to “help Ukraine win” and serves the national interests of the U.S., the EU, G7+, and NATO.”

According to Bloomberg, President Biden is determined to maximize aid to Ukraine before President-elect Donald Trump assumes office. However, the decision to write off the debt has drawn sharp criticism from Republicans.

Republican Senator Rand Paul argued that the Biden administration’s decision places undue financial burden on the American public. He pledged to demand a vote in the Senate to challenge the proposal.

Despite this, Bloomberg notes that any effort to overturn the debt cancellation would require approval from both houses of Congress, a scenario that appears unlikely given the Democratic majority in the Senate. Furthermore, President Biden holds veto power, making reversal of the decision even more challenging.

Earlier, U.S. Secretary of State Antony Blinken announced plans to exhaust all remaining aid approved by Congress before President Trump’s inauguration on January 20.

National Security Advisor Jake Sullivan emphasized that one of the administration’s key goals is to position Ukraine as strongly as possible—both militarily and at the negotiating table.

Pentagon officials reported that $9.3 billion in military aid is currently in the pipeline. Pentagon spokeswoman Sabrina Singh confirmed plans for weekly arms deliveries to Kyiv, with the aim of expediting aid distribution before the presidential transition.

On November 20, the Pentagon unveiled an additional $275 million military aid package for Ukraine, further underscoring the administration’s commitment to strengthening Ukraine’s defense capabilities.

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Donald Trump taps Howard Lutnick to lead Commerce Department

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Donald Trump has announced his intention to nominate Wall Street investor and campaign donor Howard Lutnick as the new head of the U.S. Department of Commerce, placing the billionaire at the forefront of implementing the sweeping tariffs promised during his presidential campaign.

Lutnick, who co-chaired Trump’s transition team, had previously been considered for the role of Treasury Secretary. He is also the CEO of Cantor Fitzgerald, a prominent investment firm.

In a statement on Tuesday, Trump declared that Lutnick would be “directly responsible” for leading the Commerce Department and overseeing the Office of the U.S. Trade Representative (USTR).

The USTR, established in 1974 to manage negotiations with U.S. trading partners, traditionally reports directly to the president. If confirmed by the Senate, the 63-year-old Lutnick will play a pivotal role in aiding U.S. businesses and executing Trump’s proposed tariffs on international trade partners.

Trump has outlined plans for a 60% tariff on imports from China and a global tariff of up to 20%, signaling a major shift in U.S. trade policy.

Lutnick, despite lacking prior government experience, has been a steadfast advocate for Trump’s economic agenda. During a New York campaign rally, Lutnick remarked, “When was America great? At the turn of the century, our economy was floundering! That was 125 years ago. We had no income tax and all we had were tariffs.”

While Lutnick has emerged as a major donor to Trump, he has also supported establishment Democrats and Republicans in the past, including Chuck Schumer and Jeb Bush. He contributed to both Hillary Clinton’s 2008 and 2016 campaigns, hosting a fundraiser for her in 2015. Lutnick maintains a personal friendship with the Clintons, noting their attendance at a Cantor Fitzgerald fundraiser in September 2022.

Lutnick has also maintained a long-standing relationship with Trump, even appearing on The Celebrity Apprentice in 2008. He disclosed to the Financial Times in October that he has donated over $10 million to Trump’s 2024 campaign and another $500,000 to the transition team, totaling approximately $75 million.

Treasury Secretary selection process still uncertain

The position of Treasury Secretary, one of the most significant roles in Trump’s administration, remains undecided. Lutnick’s name has been floated for the role, though he faces competition from hedge fund manager Scott Bessent, private equity billionaire Marc Rowan, and former Federal Reserve governor Kevin Warsh.

Marc Rowan, the CEO of Apollo Global Management, has emerged as a leading contender and is expected to meet with Trump to present his case. Rowan’s supporters cite his extensive expertise in financial markets, though competition remains fierce.

Forecasting site Polymarket currently lists Warsh as the favorite for Treasury Secretary, followed by Bessent, Rowan, and William Hagerty. If unsuccessful in his bid for Treasury Secretary, Bessent is reportedly vying for the chairmanship of the National Economic Council.

Trump names Mehmet Oz to run Medicare and Medicaid

Trump also announced on Tuesday his nomination of Dr. Mehmet Oz to lead the Centers for Medicare and Medicaid Services (CMS). Describing Oz as “one of the most talented physicians” capable of “making America healthy again,” Trump expressed confidence in Oz’s ability to reduce waste and fraud within the nation’s largest government agency.

Dr. Oz, a former heart surgeon and Columbia University professor, rose to prominence as Oprah Winfrey’s health expert before hosting his own popular talk show. However, his career has been controversial, with critics accusing him of promoting scientifically dubious theories and unproven treatments.

Oz’s political experience includes a 2022 Senate race in Pennsylvania, where he was endorsed by Trump but ultimately lost to Democrat John Fetterman.

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