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These fossil fuel companies sent more than $15B in taxes to Russia since it annexed Crimea, NGOs say | CNN Business

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These fossil fuel companies sent more than B in taxes to Russia since it annexed Crimea, NGOs say | CNN Business



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9 European and US fossil gasoline corporations have paid a collective $15.8 billion to Russia in varied types of taxes and charges for the reason that nation annexed Crimea from Ukraine in 2014, a bunch of NGOs stated Thursday.

The teams, World Witness, Greenpeace USA and Oil Change Worldwide, used information from the Oslo-based Rystad Vitality, an unbiased vitality analysis agency, to calculate how a lot cash oil and fuel corporations based mostly in North America and Europe had despatched to the Russian state. They seemed solely at corporations with exploration and manufacturing operations in Russia.

The information was shared amid criticisms that the West’s purchases of Russian coal, oil and fuel – that are largely state-owned property – have helped fund Russia’s struggle in Ukraine. These funds underscore how a lot capital Western vitality corporations that selected to proceed working in Russia after Crimea was annexed have transferred to the state.

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The teams checked out royalties, export duties, bonuses, taxes and charges, in addition to “authorities revenue oil,” which incorporates the worth of any precise oil that the businesses could have given to Russia to give you the $15.8 billion determine.

They got here up with a listing of 9 corporations from these areas that had paid essentially the most cash. All these funds have been authorized, and different multinational corporations exterior the vitality sector have even have made comparable sorts of funds to the Russian state.

Shell, which is registered within the UK, despatched $7.85 billion, the very best quantity of the businesses listed, the teams stated in a press release, shared first with CNN. It was adopted by US-based ExxonMobil ($2.81 billion). Two corporations registered in Germany, Wintershall and Wintershall DEA, which have since merged, paid a mixed complete of $2.86 billion. BP, the British multinational oil and fuel firm, paid $817 million, the information from Rystad exhibits.

The three teams that compiled the information stated that whereas the $15.8 billion determine was substantial, the businesses recognized have been additionally chargeable for tens of billions of {dollars} extra flowing to the Russian state due to stakes they maintain in Russian oil and fuel corporations.

BP till lately held a 19.75% stake within the Russian vitality firm Rosneft, for instance. Rosneft paid $353.16 billion to Russia in taxes, charges, royalties and oil revenue between 2014 and 2021, Rystad’s information exhibits.

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Whereas BP could not have paid that cash on to Russia, Murray Worthy, fuel marketing campaign chief at World Witness, stated that it nonetheless bore some accountability for the funds.

“The true quantity that these corporations are chargeable for paying to Russia is far nearer to the $100 billion mark, however it’s obscured by their stakes in Russian corporations. We imagine that BP alone are chargeable for $78.4 billion going to the Russian authorities by means of the stake within the oil and fuel large Rosneft it says it held till only a few weeks in the past,” he instructed CNN. He was referring to funds throughout the interval between Russia’s annexation of Crimea in 2014 and the tip of 2021.

In a press release, he added: “The Russian vitality business is Putin’s greatest earner and corporations like BP that (continued to do enterprise with Russia despite) … the Crimean invasion, persevering with to assist cash pouring into his struggle chest, ought to certainly be questioning whether or not they now have Ukrainian blood on their arms.”

BP introduced it could surrender that shareholding simply days after Russia invaded Ukraine in February 2022. A lot of different fossil gasoline corporations have since adopted.

In an e-mail to CNN, BP spokesman David Nicholas stated that the corporate didn’t acknowledge the $78.4 billion determine and defined that the one cash BP paid the Russian state instantly was $350 million in taxes for the six years between 2015 and 2020. The spokesperson was unable to offer information for the entire eight 12 months interval.

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“On February 27 we introduced that we’ll exit our shareholding in Rosneft, that the 2 BP-nominated administrators are resigning from its board with rapid impact and that we’ll exit our different companies in Russia with Rosneft,” Nicholas stated.

BP now faces a possible lack of $25 billion associated to its exit.

Worthy stated that whereas BP may deny accountability for Rosneft’s funds to the Russian state, “it has all the time been more than pleased to learn from the billions which have flowed from its involvement within the firm.”

Whereas the dataset targeted on funds made principally by means of taxes and charges, far more cash flows from the West to the Russian state’s coffers in precise oil and fuel bought – which is used for every little thing from fuel for dwelling heating to gasoline for vehicles. The true amount of cash that goes from oil and fuel corporations within the West to the Russian state could be a lot increased than any quantity paid in taxes and charges.

“So when Rosneft sells its merchandise for export, these gross sales transactions are the best way that it earns most of its cash,” stated Alexandra Gillies, an advisor to the Pure Useful resource Governance Institute (NRGI), which focuses on resource-rich international locations reaching sustainability.

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Based on a database by NRGI, Rosneft transferred $58.6 billion to the Russian state in 2019 alone, the final 12 months earlier than the pandemic.

Gillies stated that whereas Western corporations selecting to exit Russia was a step in the fitting route, it ought to have come a lot sooner.

“It took this invasion of Ukraine for Western oil corporations to say, ‘You recognize what? We don’t wish to allow what this regime is doing anymore.’ They need to have made that decision a lot earlier with the invasion of Crimea, or with the repressive nature of the Putin regime, or with the Putin regime interfering in US elections, or poisoning opposition figures, together with on UK soil,” Gillies stated.

“There have been so many moments over the previous few years that ought to have led Western corporations to divest from their cooperation with the regime.”

01:52
– Source:
CNN Enterprise

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The US banned Russian oil. So, what now?

The opposite 4 corporations listed within the NGOs’ assertion are France-based TotalEnergies ($568 million); Norway-based Equinor ($455 million); Austria-based OMV ($246 million) and Switzerland-based Trafigura ($202 million).

Rystad instructed CNN that its datasets have been based mostly on estimates derived from restricted reporting out there on taxes.

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TotalEnergies additionally has stakes in Russian oil and fuel corporations which have paid tons of of thousands and thousands of {dollars} extra to the federal government, based on Rystad information.

CNN reached out to all corporations listed, in addition to Rosneft, for remark. ExxonMobil didn’t reply to CNN’s request.

Nikita Patel, a spokesperson for Shell, instructed CNN: “The world’s reliance on Russia for vitality has constructed up over a few years by means of choices taken by governments in addition to companies. As Shell is likely one of the greatest world suppliers – significantly in Europe which relies upon closely on Russia for gasoline – the cash we’ve paid displays the big variety of prospects we serve, as you’ll count on.”

On March 8, Shell printed a press launch through which the corporate introduced it could withdraw its involvement in all Russian fossil gasoline actions “in a phased method” and cease buying Russian crude oil.

Shell CEO Ben van Beurden additionally apologized within the assertion after the corporate was criticized for purchasing a cargo of Russian crude oil in early March whereas different corporations and merchants have been shunning the product following Russia’s February invasion.

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TotalEnergies introduced Tuesday it could cease shopping for Russian oil by the tip of the 12 months however that it could proceed to purchase Russian fuel. The corporate didn’t reply to CNN’s request for remark.

Equinor has shut down its operations in Russia and says it has stopped buying and selling Russian oil. Its spokesperson, Ola Morten Aanestad, didn’t affirm the $455 million determine in an e-mail to CNN, and stated it was “is just too early to be particular on the exit course of,” when requested whether or not the corporate would keep out of Russia completely.

An OMV spokesperson didn’t touch upon the amount of cash it had transferred to Russia when requested by CNN, and pointed to a current assertion through which the corporate stated it was “reevaluating its engagement in Russia.”

Wintershall DEA instructed CNN the corporate was “not able to confirm the figures introduced to us” and that it “all the time carried out our enterprise in compliance with all relevant legal guidelines.”

A Trafigura spokesperson stated the corporate didn’t pay something to the Russian authorities “arising from manufacturing of fossil fuels.” The corporate has a ten% stake within the Vostok Oil undertaking, of which Rosneft is almost all shareholder. The spokesperson stated “no additional monies have been paid” for the reason that acquisition of the stake in 2020. “Trafigura has not obtained any dividends or comparable funds from its shareholding in Vostok Oil.”

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Lorne Stockman, Analysis Co-director at Oil Change Worldwide, stated the world should now keep away from trying to different autocratic regimes to switch the fossil fuels they’re shunning from Russia.

“Fossil fuels are the forex of despots, dictators, and warmongers. Our world reliance on oil and fuel isn’t solely killing our planet, but additionally making the world a much less secure and equal place. Large Western polluters like BP and Shell have been all too comfortable to work in international locations with despicable human rights information for over a century,” Stockman stated.

“Now’s the second to finish the fossil gasoline period.”

This story has been up to date with a response from Shell.

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2024 Was the Most Intense Year for Tornadoes in a Decade

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2024 Was the Most Intense Year for Tornadoes in a Decade

In late April, a slow-moving storm over Texas and Oklahoma spawned an outbreak of 39 tornadoes. That event was just a fraction of the more than 400 tornadoes reported that month, the highest monthly count in 10 years. And the storms kept coming.

Through November, there were more than 1,700 tornadoes reported nationwide, preliminary data shows. At least 53 people had been killed across 17 states.

Monthly accumulated tornadoes

Not only were there more tornadoes reported, but 2024 is also on track to be one of the costliest years ever in terms of damage caused by severe storms, according to the National Center for Environmental Information. Severe weather and four tornado outbreaks from April to May in the central and southern United States alone cost $14 billion.

We will not know the final count of this year’s tornadoes until next year — the data through November does not yet include tornadoes like the rare one that touched down in Santa Cruz., Calif., on Saturday. That’s because confirming and categorizing a tornado takes time. After each reported event, researchers investigate the damage to classify the tornado strength based on 28 indicators such as the characteristics of the affected buildings and trees. Researchers rate the tornadoes using the Enhanced Fujita Scale (EF) from 0 to 5.

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But 2024 could end with not only the most tornadoes in the last decade, but one of the highest counts since data collection began in 1950. Researchers suggest that the increase may be linked to climate change, although tornadoes are influenced by many factors, so different patterns cannot be attributed to a single cause.

The year’s worst storms

In May, a mobile radar vehicle operated by researchers from the University of Illinois measured winds ranging 309 to 318 miles per hour in a subvortex of a tornado in the outskirts of Greenfield, Iowa. The event, an EF4, was among the strongest ever recorded.

NASA tracked the line of destruction of the tornado over 44 miles.

Image by Vexcel Graysky, May 28, 2024.

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NOAA estimated the damage caused by the Greenfield tornado to be about $31 million. While most tornadoes this year were not as deadly or destructive, there were at least three more EF4 storms, described by NOAA as devastating events with winds ranging from 166 to 200 miles per hour. These violent tornadoes caused severe damage in Elkhorn-Blair, Neb., and in Love and Osage Counties in Oklahoma.

Here are the footprints of 1,644 buildings in the United States that were destroyed or severely damaged by tornadoes this year, according to data from FEMA and Vexcel, a private company that uses aerial imagery to analyze natural disasters.

While losses from tornadoes occur on a regular basis every year, extreme events such as hurricanes can also produce tornadoes with great destructive capacity. In October, more than 40 tornadoes were reported in Florida during Hurricane Milton, three of them category EF3. According to the The Southeast Regional Climate Center, EF3 tornadoes spawned by hurricanes had not occurred in Florida since 1972.

A vulnerable region

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Tornado detection systems have improved, especially since the 1990s, allowing scientists to count tornadoes that might have gone undetected in previous years, said John Allen, a climate scientist focused on historic climatology and analysis of risk at Michigan State University. That plays a role in the historical trend showing more tornadoes in recent decades.

Change in tornado activity

Confirmed tornadoes in each county from 2002-22 compared with 1981-2001

While this year’s worst storms were concentrated in the Midwest, many counties across the South have seen an increase in tornado activity in the past 20 years, compared with the prior two decades. These same counties’ demographic conditions, including low incomes and large mobile home populations, make them especially vulnerable to major disasters.

“It only takes an EF1 to do significant damage to a home, an EF2 would throw it all over the place,” Dr. Allen said.

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Prof. Tyler Fricker, who researches tornadoes at the University of Louisiana, Monroe, said we will inevitably see more losses in the region.

“When you combine more intense tornadoes on average with more vulnerable people on average, you get these high levels of impact — casualties or property loss,” Dr. Fricker said.

“If you have enough money, you can protect yourself,” he added. “You can build out safe rooms. You can do things. That’s not the case for the average person in the Mid-South and Southeast.”

The C.D.C. identifies communities in need of support before, during and after natural disasters through a measure called social vulnerability, which is based on indicators such as poverty, overcrowding and unemployment. Most counties in Alabama, Arkansas, Louisiana and Mississippi are both at high risk by this measure and have experienced an increase in tornadoes in the last 20 years, relative to the 1980s and 1990s.

County risk vs. change in tornado activity

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In the states with the most tornadoes this year, most counties have better prepared infrastructure for these kinds of events.

Source: C.D.C. and NOAA

Note: Change in tornado activity compares tornado counts from 2002-22 with 1981-2001.

Stephen M. Strader of Villanova University, who has published an analysis of the social vulnerabilities in the Mid-South region and their relationship to environmental disasters, said the most vulnerable populations may face a tough year ahead. While two major hurricanes had the biggest impact on the region this year, La Niña will influence weather patterns in 2025 in ways that could cause more tornadoes specifically in the vulnerable areas in the South.

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Although not completely definitive, NOAA studies suggest that EF2 tornadoes, which are strong enough to blow away roofs, are more likely to occur in the southeastern United States in La Niña years.

“Unfortunately, a La Niña favors bigger outbreaks in the southeast U.S.,” Dr. Strader said. “So this time next year we might be telling a different story.”

Sources and methodology

Damage costs estimates of tornado-involved storms as reported by NOAA as of Nov. 22.

Building footprints and aerial imagery are provided by Vexcel.

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The first map shows preliminary tornado reports from January through October 2024, the latest available data from NOAA.

Historical tornado records range from 1950 to 2023 and include all EF category tornadoes as reported by NOAA. The historical activity change map counts tornadoes in each county from 1981 to 2001, and that number is subtracted from the total number of tornadoes recorded in each county from 2002 to 2022 to get the change in the most recent 20 years compared to the previous 20.

The Social Vulnerability index is based on 15 variables from the U.S. Census and is available from the C.D.C..

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Porsche-Piëch family pushes for Volkswagen plant closures

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Porsche-Piëch family pushes for Volkswagen plant closures

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The billionaire Porsche-Piëch family, Volkswagen’s majority owner, has taken a hardline stance in backing the company’s plans to close several German factories, as the threat of diminished dividends looms.

Lack of progress on the restructuring, initially announced in September, has become a growing concern for the Porsche-Piëch family, which has reversed its traditional stance of avoiding confrontation with VW’s powerful works council.

According to one person briefed on discussions at recent supervisory board meetings, the family has “made clear that it is necessary to rightsize the business in order to achieve long-term competitiveness”.

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VW has argued for the closure of plants in Germany as its European sales have fallen sharply. However, the company’s works council, which controls half the seats on the company’s supervisory board, has promised workers that not a single German plant will be closed.

Another person with knowledge of the discussions said it was “hardly surprising” that the Porsche-Piëch family had different priorities than some other supervisory board members, especially the works council and its ally, the state of Lower Saxony, which holds 20 per cent of VW’s voting rights.

Worker representatives have argued that while cost cuts might support profit margins in the short term, they will do little to address sliding sales in both Europe and China, the company’s most profitable market.

Executives at Europe’s largest carmaker have spent weeks locked in tense negotiations with representatives of German workers, who have already downed tools twice in the past month amid fierce disagreement over planned cost cuts.

VW’s management and unions are eager to wrap up formal wage negotiations before Christmas. After 36 hours of continuous debate, the fifth round of talks broke off briefly on Wednesday morning with both sides agreeing to resume negotiations later in the day.

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At VW’s supervisory board meetings in the run-up to the negotiations, discussions have been tense. The family’s de facto head, Wolfgang Porsche, last month rejected a compromise put on the table by the works council and union, making clear that anything other than “substantial action on cost efficiency [will be a] solution”, added one person briefed on the talks.

Porsche SE has already taken a hit from the crisis at VW. Last week, it warned that the uncertainty at the carmaker and the absence of financial planning data could force it to write down its stake in VW by up to €20bn, or nearly 40 per cent.

The family also faces the risk of falling VW dividends, which last year stood at €1.4bn, at a time when Porsche SE is saddled with €5.1bn in debt. The holding company borrowed heavily in 2022 to buy a 25 per cent voting stake in sports car maker Porsche AG — allowing the family to regain direct control over the company founded by its forebears.

“The plan was to finance the interest payments and to deleverage with the dividends from Porsche and VW,” said Stifel analyst Daniel Schwarz. “That’s clearly at risk now,” he added, explaining that the family’s wealthiest members “have most of their wealth invested in this one company”.

But the family’s battle with the carmaker’s workers carries other risks.

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With Berlin gearing up for snap elections early next year, the hardline plan to cut tens of thousands of jobs at VW has met significant political blowback. A growing group of politicians — including Chancellor Olaf Scholz — have spoken out against factory closures.

“Some politicians have argued that VW should not pay a dividend at all and the union said that VW should consider a lower payout ratio,” Schwarz said.

The upcoming elections will also make it less likely that the state of Lower Saxony, which owns 20 per cent of VW voting rights and tends to back employment, would turn against the works council on the plant closures.

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What we learned from Elian Gonzalez, 25 years later : Code Switch

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What we learned from Elian Gonzalez, 25 years later : Code Switch

Twenty-five years ago, a six-year-old boy named Elian Gonzalez appeared off the coast of Miami. He and his mother had been traveling by boat to the U.S. from Cuba. His mother didn’t survive the journey, but remarkably, Elian did. And almost immediately, his fate became the subject of an international debate: Should he stay in the U.S. and live with relatives in Miami? Or should he return to Cuba, to live with his father, who very much wanted him back?

How people answered that question tended to reflect a lot about their larger beliefs – about the benefits of democracy, the importance of family, the distinctions between the U.S and Cuba, and immigration writ large.

This episode was originally reported and produced by our play cousins at Futuro Studios. It’s hosted by Peniley Ramirez.

We want to hear from our listeners about what you like about Code Switch and how we could do better. Please tell us what you think by taking our short survey, and thank you!

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