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Beijing and Moscow could use SCO for counter-terrorism cooperation

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Terrorist attacks last month, one in Moscow and another a few days later in Pakistan that killed five Chinese workers, have raised alarm bells in Russia and China, key members of the Shanghai Cooperation Organisation (SCO), a Eurasian security bloc.

With China set to chair the SCO from July, analysts say they expect Beijing to focus more on counter-terrorism in the region and encourage greater security cooperation among member states.

Analysts also believe the attacks will bring Russia and China closer together as they seek to eliminate foreign forces they believe are trying to destabilise the region.

Ian Hall, professor of international relations at Griffith University in Brisbane, Australia, told the South China Morning Post that while counter-terrorism has always been high on the SCO’s agenda, the recent attacks are likely to “refocus attention on this issue”.

Counter-terrorism to top agenda

Founded in 2001 by China, Russia and Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan to reduce border tensions, the SCO has traditionally focused on fighting the “three evils” of terrorism, separatism and extremism.

As the group has expanded to include India, Pakistan and, most recently, Iran, its scope has broadened to include issues such as economic cooperation.

Gunmen opened fire on Moscow’s Crocus City Hall, killing at least 140 people in the deadliest attack in Russia for two decades.

Russian President Vladimir Putin vowed to punish those behind the attack, which was claimed by the Islamic State of Khorasan (IS-K), an Afghanistan-based branch of Daesh.

Less than a week later, a suicide bomber killed five Chinese workers in northwestern Pakistan, the latest in a series of terrorist attacks in the South Asian country apparently targeting Chinese interests. There was no immediate claim of responsibility.

Russia, Pakistan and Iran, all members of the SCO, have suffered attacks organised by ISIL-H within their borders.

“Officially, counter-terrorism will be the main theme of the SCO,” said David Arase, professor of international politics at the Hopkins-Nanjing Centre for Chinese and American Studies.

“If an actor outside Central Asia, such as Russia, is attacked, China and its interests in Central Asia may also be targeted,” he told the Post: “ISIS-H represents the ‘three evils’ – terrorism, separatism and religious extremism – that are China’s nightmare because it wants an Islamic state under radical theocratic rule.”

In the wake of the two attacks in Russia and Pakistan, the bloc may seek to strengthen counter-terrorism cooperation through joint training exercises or increased intelligence sharing and coordination against armed groups such as ISIL-H, Arase said.

But it can be difficult to decide who does what within the organisation in an “environment of conflicting interests and mistrust”, Arase said, adding that tensions between some member states have increased.

India and China, for example, remain at odds over conflicting border claims and Beijing’s Belt and Road infrastructure projects. India’s relationship with Pakistan also remains strained.

Thomas Wilkins, Associate Professor at the University of Sydney, agreed that the fight against terrorism would be a “central theme” of the SCO and a “prominent” item on its agenda.

He said the terrorist attack in Russia ticked the boxes of terrorism and religious extremism, two of the “three evils” the SCO was established to combat.

Wilkins said the SCO already had a regional counter-terrorism structure for sharing information, and resources had been mobilised in response to the Moscow attacks.

Rapprochement within the bloc against the West could increase

In addition to an SCO response, the recent terrorist attacks could bring countries within the bloc closer together against actions they believe are backed by the West, analysts say.
Beijing and Moscow may call on SCO to cooperate against terrorism

Russian officials blamed not only Ukraine but also the West for last month’s terrorist attack in Moscow, claiming that US and British intelligence had helped Ukraine organise the attack.

“They are trying to make us believe that the terrorist attack was not carried out by the Kiev regime, but by supporters of radical Islamic ideology, possibly members of the Afghan branch [of the Islamic State],” Russian Security Council Secretary Nikolai Patrushev said last month: “This is evidenced by the fact that as soon as the terrorist attack on the Crocus City Hall was reported, the West began to insist that Ukraine was not involved in the crime.”

Chinese President Xi Jinping has also repeatedly called on SCO countries to work together to prevent foreign powers from destabilising their countries by fomenting unrest.

“We must be extremely vigilant against foreign powers provoking a ‘new Cold War’ and creating conflicts in the region, and resolutely oppose any interference in any country’s internal affairs and staging a ‘colour revolution’ for any reason,” he said last year.

Experts say the SCO, which was created to resolve border disputes, has evolved into a Moscow- and Beijing-led organisation that provides security governance in Central Asia, where the threat of terrorism exists and could spill over into Russia and China.Beyond its institutional functions, the SCO also serves to keep Western powers such as the US out of Central Asia and to provide a common platform against “Western hegemony”.”Since its continuous expansion, it has formed a geopolitical bloc encompassing most of Eastern Eurasia, in contrast to the NATO bloc of Western Eurasia,” says Thomas Wilkins. The SCO was created in part to prevent “colour revolutions”, Wilkins said, adding that members continue to work closely to minimise such possibilities.

Li Lifan, head of the SCO Centre at the Shanghai Academy of Social Sciences, said a convention signed by member states in 2017 to combat extremism showed a “firm determination” to fight the “three evils”, adding that the SCO will help deepen cooperation between countries.

“Today, the global security situation is complex and extremist ideas are constantly spreading. Terrorist activities and regional wars have formed a ‘double-active era’, posing serious challenges to regional national security and people’s safety of life and property,” Li said, adding that after assuming the chairmanship, China will not only strengthen regional anti-terrorism cooperation, but also tackle transnational organised crime and modern technology crime to “safeguard regional and even global peace and stability”.

DIPLOMACY

Argentina and the IMF: Negotiations begin for a new $44bn agreement

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Argentina is pursuing a new agreement with the International Monetary Fund (IMF) to replace its current $44 billion arrangement. The effort signals a significant shift in the country’s financial strategy under President Javier Milei’s administration.

IMF Chief Spokesperson Julie Kozack confirmed on Thursday that the Milei government is prioritizing the establishment of a new programme over completing the final reviews of the existing deal inherited from the previous administration. According to a Bloomberg report, Kozack stated, “The authorities have formally expressed their desire to move to a new programme, and negotiations are now underway.”

The discussions intensified following a visit earlier this month by officials from Economy Minister Luis Caputo’s office and the central bank to Washington, where they engaged with IMF representatives.

The central question in the negotiations revolves around whether the IMF will extend additional financing beyond the $44 billion already allocated to Argentina. Milei had previously suggested an additional $15 billion, although he has not reiterated this figure recently. However, Caputo indicated this week that new funding could be included as part of the prospective programme.

If the parties reach an agreement, it would mark Argentina’s 23rd programme with the IMF since 1958 and its third since 2018. Historically, the IMF’s interventions in Argentina have faced criticism, as many past agreements failed to stabilize the economy. Successive governments often violated programme objectives, raising doubts about the effectiveness of IMF support in the country.

President Milei and his chief negotiator, Caputo, have a history of strained relations with the IMF. Earlier this year, Milei publicly criticized Rodrigo Valdes, one of the IMF’s senior officials, leading to Valdes stepping back from negotiations. Similarly, Caputo clashed with the IMF during his tenure as finance minister in 2018, particularly over exchange rate policies, which eventually prompted his resignation after a short stint as central bank governor.

Despite these tensions, the IMF has commended the Milei administration for implementing measures to cut spending, reduce inflation, and narrow gaps between the country’s various exchange rates.

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Trump threatens tariffs on the EU over energy purchases

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U.S. President-elect Donald Trump has issued a warning to the European Union (EU), stating that the bloc may face tariffs if it does not increase its purchases of U.S. oil and gas on a “large scale.”

“I told the European Union that they must close the enormous gap with the United States by buying our oil and gas on a large scale. Otherwise, TARIFFS!!! in every way!!!” Trump declared in a post on the Truth Social platform on Friday.

European Commission President Ursula von der Leyen previously suggested that the EU could explore the possibility of importing more liquefied natural gas (LNG) from the U.S. “We still buy a lot of LNG from Russia, and why not replace it with American LNG, which is cheaper for us and lowers our energy prices?” von der Leyen remarked to reporters in November.

An EU official, speaking to the Financial Times (FT), noted the peculiarity of Trump’s threat, given von der Leyen’s earlier openness to the idea of increasing LNG imports from the U.S.

Currently, the United States is Europe’s largest supplier of LNG, though Russia remains the EU’s second-largest source. The possibility of replacing Russian LNG with U.S. imports aligns with the EU’s efforts to diversify its energy sources.

Trump has also floated the possibility of a general tariff of up to 20% on all non-Chinese imports, which could have significant implications for EU-U.S. trade relations.

In November, European Central Bank President Christine Lagarde urged European leaders to engage with the U.S. on trade matters, including tariffs, and to consider purchasing more U.S.-manufactured goods. This call for cooperation echoes measures taken during Trump’s first term, when then-European Commission President Jean-Claude Juncker pledged to buy more U.S. gas to avert the risk of a trade war.

Global oil prices have shown sensitivity to these developments. On Friday, international oil benchmark Brent crude prices dropped 0.4% to $72.61 per barrel, while West Texas Intermediate (WTI) futures also fell 0.4%, trading at $69.14 per barrel.

The U.S., currently the world’s largest producer of crude oil and exporter of LNG, has been strengthening its energy trade partnerships. Buyers, including the EU and Vietnam, are reportedly considering increased fuel purchases from the U.S., partly to mitigate the risk of potential tariffs.

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London pushes for continued U.S. support to Ukraine amid leadership transition

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UK Prime Minister Keir Starmer urged Donald Trump on Wednesday to ensure that Western allies “stand together” in supporting Ukraine against Russian aggression.

During a phone call with the U.S. president-elect, their second conversation since Trump’s electoral victory in November, Starmer emphasized the importance of unified support for Ukraine, stating that “allies must stand with Ukraine… and ensure that Ukraine is in the strongest possible position.”

A spokesperson for the British Prime Minister’s Office described the discussion as highlighting a “shared desire to strengthen the close and historic relationship between the United Kingdom and the United States.”

Starmer began the call by congratulating Trump on his recent team appointments. Trump responded by “warmly recounting” his recent meeting with Prince William, Prince of Wales, in Paris earlier this month, according to the Prime Minister’s Office.

As Trump prepares to take office next month, he has expressed intentions to seek a deal to end the war in Ukraine, though he has also publicly criticized certain Western policies, including the approval of missile supplies to Ukraine for use on Russian soil.

In an interview with The Sun on Tuesday, Starmer expressed hope to revive trade talks with the incoming U.S. administration. These negotiations had stalled two years ago under President Joe Biden. The leaders also expressed mutual anticipation of meeting in person “at the first opportunity.” According to the i newspaper, Starmer may visit the U.S. in early February.

Meanwhile, The Telegraph reported that Starmer’s chief of staff, Morgan McSweeney, conducted private meetings with senior members of Trump’s team earlier this month. McSweeney traveled to Florida to meet Susie Wiles, Trump’s chief of staff-designate, who played a pivotal role in managing his re-election campaign. He also held discussions in Washington with Congressman Mike Waltz, Trump’s incoming National Security Adviser.

A senior source in the Prime Minister’s Office described the interactions as “very warm,” adding that “President Trump has a warm approach to the UK. As the year draws to a close, the Starmer team is confident that the UK is well-placed for a strong bilateral relationship with the new president.”

Starmer’s delegation to the U.S., which began on December 2, included Jonathan Powell, former chief of staff to Tony Blair and now Starmer’s national security adviser. Together with McSweeney, Powell engaged in policy discussions on Ukraine, China, and the Middle East, identifying areas of alignment and divergence between the two leaders.

According to The Telegraph, those close to Starmer believe Trump is currently in “listening mode” on Ukraine, carefully evaluating strategies to fulfill his campaign promise of resolving the conflict “on day one” of his presidency.

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