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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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Pentagon and Justice Department form joint task force to combat media leaks

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US Secretary of Defense Pete Hegseth announced on Monday that the Department of Defense and the Department of Justice have established a joint task force as part of efforts to prevent the unauthorized disclosure of sensitive information to the public.

Hegseth stated that the Office of the General Counsel (OGC) of the Department of Defense will have the authority to request and receive all information, support, and records across the Pentagon related to media leak investigations.

The Defense Secretary noted that all departments and personnel within the ministry will prioritize these requests. He added that a complete and comprehensive response to any instruction issued by the OGC under this authority must be provided within two days of the submission of the request.

“Leaked information risks lives. These new tools and processes will greatly assist us in protecting our collective strength. Our nation’s security cannot be a bargaining chip for those chasing instant headlines,” Hegseth said in an approximately two-and-a-half-minute video message published on the social media platform X.

Hegseth also stated, “Access to classified and confidential information is a sacred trust, and those who betray this trust will face the full force of the law.”

The announcement of the task force came a few days after the Department of Justice issued subpoenas to four New York Times reporters. The journalists, summoned to testify before a federal grand jury, had reported on security concerns regarding President Donald Trump’s flight to Türkiye for a NATO summit on an aircraft donated by Qatar.

The subpoenas drew sharp criticism from The New York Times and press freedom advocates. Opponents argue that the government is attempting to intimidate news organizations.

“Our journalists report the facts and defend the American public’s right to know how their government operates and how taxpayer dollars are spent,” New York Times attorney David McCraw said in a statement. “This brazen action is nothing less than an attempt to deter journalists from doing their jobs, thereby preventing the public from learning what is happening in the country.”

Hegseth has been taking steps to prevent leaks to the press since the beginning of his tenure at the Pentagon. Last year, the department launched investigations into personnel alleged to have leaked classified information to the media and threatened to administer polygraph tests.

Leak allegations were also directed at some of Hegseth’s advisers last year. Former senior adviser Dan Caldwell and former deputy chief of staff Darin Selnick are among those individuals. Caldwell, Selnick, and Colin Carroll, the former chief of staff to Deputy Secretary of Defense Stephen A. Feinberg, were first suspended and subsequently dismissed from their positions and removed from the Pentagon as part of the internal leak investigation.

A government official, speaking to The Hill in mid-March, stated there was no evidence that Caldwell, who began working at the Office of the Director of National Intelligence (ODNI) earlier this year, had leaked information from the Pentagon.

Defense Secretary Hegseth has previously been the target of criticism himself for allegedly sharing sensitive information. Last year, Hegseth discussed planned US strikes against the Houthis in Yemen in a Signal group chat to which an editor of The Atlantic magazine had been mistakenly added. A report published in December by the Pentagon’s Office of the Inspector General determined that Hegseth had compromised military security and violated department policy by using the Signal application on his personal mobile phone.

“It is highly ironic that Hegseth himself shared sensitive national defense information with his wife over Signal last year and faced no consequences, yet now speaks of the need to protect this information,” said former Pentagon spokesperson John Ullyot. “In 2012, CIA Director David Petraeus resigned from his post for a similar situation involving his girlfriend, and was sentenced in federal court to two years of probation and a $10,000 fine.”

Ullyot, who also served as the spokesperson for the National Security Council during Trump’s first term, told The Hill on Monday: “The President deserves better from his national security leaders. Hegseth should start holding himself accountable before holding others accountable.”

Reporters have been largely blocked from entering the Pentagon after Hegseth revoked access to most of the facility. Pentagon correspondents returned their press credentials in October, refusing to sign a new media policy that required a commitment not to solicit unauthorized materials.

Hegseth and his supporters argue that the policy will protect national security by preventing the leak of classified information. Press freedom groups and critics, conversely, characterize the practice as a violation of the constitutional rights of journalists.

Most recently, the department further restricted press access by declaring the Pentagon building a classified space and banning journalists from entering.

Offering historical references in his statement on Monday, Hegseth said, “Leaking sensitive national defense information and secrets is a betrayal of the men and women who wear the uniform of our country. This is a principle as old as the history of warfare, reaching back to the founding of our republic in the United States. George Washington himself combated leaks, insider threats, and espionage.”

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SpaceX shares fall 40% from peak to approach IPO floor as regulatory scrutiny weighs

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Shares of the American aerospace company SpaceX fell to as low as $136.78 at the trough of the trading session on Monday, July 13, representing a 5.87% decline compared to the close of trading on July 10. According to data from the US-based NASDAQ exchange, this retreat marks a depreciation of approximately 40% from the company’s historic peak of $225.64, which was recorded on June 16. With this latest decline, the company’s shares have approached their initial public offering (IPO) price threshold of $135.

As of 21:25 Moscow time on the trading day in question, the shares continued to trade at $137.4, down 5.4%.

The downward trend in the shares was driven by reports that the US Federal Aviation Administration (FAA) had concluded its investigation into the emergencies and malfunctions during the May 22 launch of Starship, the largest and most powerful rocket model developed by SpaceX.

According to CNBC, the agency reviewed and approved the findings and corrective measures submitted by the company following its internal investigation into the incident.

The Starship project, a massive, reusable rocket designed to carry crew and cargo to the Moon and Mars and to perform other space missions, is considered one of the most critical elements of Elon Musk’s space program.

In a statement issued by the FAA, it was noted that following the approved corrective actions, SpaceX is permitted to begin preparations for the Starship Flight 13 flight, provided that the company meets all safety requirements and licensing conditions.

The FAA had previously issued a statement regarding the malfunction during the launch attempt at the end of May. The statement noted: “The anomaly occurred during the Super Heavy booster’s flip maneuver over the Gulf of America.”

The region referred to as the Gulf of America by US authorities in official correspondence is commonly known as the Gulf of Mexico.

According to official data, the booster parts fell within the boundaries of pre-established hazard areas. Six flights were delayed and five aircraft remained in holding patterns for a period due to the incident, though no changes were made to flight routes.

SpaceX shares, which began trading on the NASDAQ exchange at the beginning of June, gained 25% at the opening. As part of the initial public offering, the company offered 555.6 million shares for sale at a fixed price of $135 per share.

The SpaceX IPO was recorded as the largest initial public offering in financial history. The company initially raised $75 billion, and the total funds raised reached $85.7 billion after consortium members exercised their over-allotment option to purchase an additional 83.3 million shares.

In a statement to his employees, company founder Elon Musk stated that going public was necessary to generate capital during a phase of rapid growth. It was announced that the proceeds would be used to complete the development process of the Starship rockets, bring them to commercial readiness, and expand the Starlink satellite network.

The post-IPO surge in SpaceX shares had briefly made Elon Musk the world’s first trillionaire. Bloomberg had estimated Musk’s wealth at $1.05 trillion, while Forbes valued it at $1.1 trillion.

However, with the decline in share prices and the company’s market value that began in late June, Musk lost his trillionaire title after holding it for 12 days.

According to an analysis by Bloomberg, the decline was driven by SpaceX’s preparations to issue at least $20 billion in bonds to finance artificial intelligence projects, alongside the signing of a multi-billion-dollar agreement with AI startup Reflection AI to provide computing resources.

Assessments by S&P Global projected that SpaceX will continue to incur expenditures without generating revenue until at least 2029.

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Trump notifies Congress of renewed war with Iran, resetting War Powers clock

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US President Donald Trump has formally notified lawmakers that the country is back at war with Iran, according to an official notification sent to Congress over the weekend.

In the letter dated July 10 and obtained by Politico, Trump stated that airstrikes beginning on July 7 constituted “military actions consistent with my responsibility to protect Americans and US interests both at home and abroad.”

The notification triggers a new 60-day statutory window under which the US administration can utilize military force in the region without prior congressional approval.

The conflict, which has repeatedly paused and restarted over control of the Strait of Hormuz—a crucial chokepoint for global energy supplies—has become a persistent challenge for the Trump administration.

Trump has expressed frustration over the failure to secure a peace agreement with Iran, while congressional Republicans remain concerned about being blamed for rising fuel prices ahead of the upcoming midterm elections.

On Monday, Trump intensified military pressure on Tehran, declaring that the US would reimpose a blockade on the region, seize control of the Strait of Hormuz, and levy fees on transiting vessels.

Ceasefire process officially ends

The notification to Congress follows Trump’s announcement that a two-month-old ceasefire with Iran has officially ended.

The ceasefire, originally declared in April, had been fragile from the outset due to reciprocal attacks by both nations. Despite the friction, the Trump administration had previously maintained that a full-scale war had not resumed.

Officials from US Central Command (CENTCOM) announced that US forces have struck more than 300 Iranian military targets over the past week in retaliation for Tehran’s hostile actions in the Strait of Hormuz.

On Monday, CENTCOM released a statement confirming that US forces had conducted additional airstrikes against Iran “at the direction of the Commander-in-Chief.”

“These strikes will continue to impose heavy costs on Iranian forces, degrading their capability to attack innocent civilians and commercial shipping in the Strait of Hormuz,” the statement read.

War powers debate

Trump had previously notified Congress that the war, which began in February, had “ended” in May, thereby resetting the 60-day statutory clock that would otherwise require the cessation of military operations without congressional authorization.

With the April ceasefire intended to run indefinitely, the White House argued that the timeline mandated by the War Powers Act had been paused.

However, anti-war lawmakers in Congress challenged this interpretation. They argued that the government was misapplying the law, noting that even when major combat operations subsided, the US Navy maintained its blockade to exert pressure on Tehran.

The new notification complicates ongoing efforts within Congress to limit military action against Iran. Last month, the Senate passed a symbolic resolution calling for an end to the hostilities, signaling waning support for Trump’s military campaign against Tehran.

The resolution, which passed 50 to 48 after four Republican senators voted with Democrats, sought to make congressional approval a requirement for continued military operations.

A similar measure had previously passed the House of Representatives by a vote of 215 to 208, also drawing the support of four Republicans.

The legislative impact of these measures remains limited, however, as joint resolutions are not sent to the president for signature, and any bill seeking to restrict executive war powers would face a certain White House veto.

In his letter to Congress, Trump emphasized that US military forces remain deployed to counter threats against allies.

“United States Armed Forces remain postured to take additional steps, as necessary and appropriate, to address further threats or attacks against the United States, its allies, or its partners, and to ensure that the Government of the Islamic Republic of Iran ceases to pose a threat to the United States and its partners,” Trump wrote.

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