Ukraine’s western allies warn Putin of tough sanctions following Russian recognition of rebel republics

Western allies of Ukraine have warned that Russia will suffer stiff penalties. (File/AFP)
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Updated 22 February 2022
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Ukraine’s western allies warn Putin of tough sanctions following Russian recognition of rebel republics

LONDON: Western allies of Ukraine have spoken out against Putin’s decision to deploy troops to two breakaway regions in eastern Ukraine after recognizing them as independent on Monday

British Prime Minister Boris Johnson said his country would immediately impose hard economic sanctions on Russia on Tuesday.

“We will immediately institute a package of economic sanctions,” Johnson told reporters.

The sanctions, he said, would be “targeted not just at entities in Donbass and Luhansk and Donetsk, but in Russia itself — targeting Russian economic interests as hard as we can.”

Putin will find he has “gravely miscalculated” if Russia invades Ukraine, Johnson said, adding that Moscow appeared to be bent on a full scale invasion.

Johnson chaired a meeting of Britain’s national emergency security committee early on Tuesday.

“I think that the tragedy of the present situation is that President Putin has surrounded himself with like-minded advisers who tell him that Ukraine is not a proper country. And I think that he is going to find that he has gravely miscalculated,” Johnson told reporters after the meeting.

Unlike most of its Western neighbors, Italy has historically relatively friendly ties with Putin, backed by strong, long-standing investments by Italian corporations in Russia.
But since becoming prime minister in February 2021, Draghi has stressed Italy’s commitments to the EU and NATO.

On Tuesday Italian Prime Minister Mario Draghi slammed Russia’s recognition of the two Ukraine rebel republics.
“This is an unacceptable violation of Ukraine’s democratic sovereignty and territorial integrity,” said Draghi as he addressed the Council of State, which oversees administration in Italy.
“I am in constant contact with allies to find a peaceful solution to the crisis and avoid a war in the heart of Europe,” he said.
“The path of dialogue remains essential, but we are already defining within the European Union measures and sanctions against Russia.”

Spanish Defense Minister Margarita Robles later said NATO and European Union countries could not allow the violation of the territorial integrity of Ukraine.
“Russia must know the firmness of EU and NATO is absolute and total,” she said in an interview to radio station COPE.

“We cannot allow a violation of international law nor the attack to Ukraine’s territorial integrity, which is what has happened, without a doubt.”
Spain and its partners would still give a chance to diplomacy, she said.

Russian President Vladimir Putin ordered the deployment of troops to two breakaway regions in eastern Ukraine after recognizing them as independent on Monday, accelerating a crisis the West fears could unleash a major war.
A Reuters witness saw tanks and other military hardware moving through the separatist-controlled city of Donetsk after Putin formally recognized the breakaway regions and ordered the deployment of Russian forces to “keep the peace.”
Britain has threatened to cut off Russian companies’ access to US dollars and British pounds, blocking them from raising capital in London and to expose what Johnson calls the “Russian doll” of property and company ownership.
Britain has not yet spelled out who would fall under the sanctions, but has pledged that there would be nowhere for Russian oligarchs to hide. Johnson has said targets could include Russian banks.
(With Reuters and AFP)


SpaceX acquires xAI in record-setting deal as Musk looks to unify AI and space ambitions

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SpaceX acquires xAI in record-setting deal as Musk looks to unify AI and space ambitions

  • The deal is the biggest M&A transaction of all time
  • Deal values xAI at $250 billion, SpaceX at $1 trillion

Elon Musk said on Monday ​that SpaceX has acquired his artificial-intelligence startup xAI in a record-setting deal that unifies Musk’s AI and space ambitions by combining the rocket-and-satellite company with the maker of the Grok chatbot. The deal, first reported by Reuters last week, represents one of the most ambitious tie-ups in the technology sector yet, combining a space-and-defense contractor with a fast-growing AI developer whose costs are largely driven by chips, data centers and energy. It could also bolster SpaceX’s data-center ambitions as Musk competes with rivals like Alphabet’s Google, Meta, Amazon-backed Anthropic ‌and OpenAI in the ‌AI sector.
The transaction values SpaceX at $1 trillion, and ‌xAI ⁠at $250 ​billion, according ‌to a person familiar with the matter.
“This marks not just the next chapter, but the next book in SpaceX and xAI’s mission: scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!” Musk said. The purchase of xAI sets a new record for the world’s largest M&A deal, a distinction held for more than 25 years when Vodafone bought Germany’s Mannesmann in a hostile takeover valued at $203 billion ⁠in 2000, according to data compiled by LSEG. The combined company of SpaceX and xAI is expected to price shares ‌at about $527 each, another person familiar with the matter said. ‍SpaceX was already the world’s most ‍valuable privately held company, last valued at $800 billion in a recent insider share sale. ‍XAI was last valued at $230 billion in November, according to the Wall Street Journal. The merger comes as the space company plans a blockbuster public offering this year that could value it at over $1.5 trillion, two people familiar with the matter said.
SpaceX, xAI and Musk did not immediately respond ​to requests for comment.
The deal further consolidates Musk’s far-flung business empire and fortunes into a tighter, mutually reinforcing ecosystem – what some investors and analysts informally ⁠call the “Muskonomy” – which already includes Tesla, brain-chip maker Neuralink and tunnel firm the Boring Company. The world’s richest man has a history of merging his ventures together. Musk folded social media platform X into xAI through a share swap last year, giving the AI startup access to the platform’s data and distribution. In 2016, he used Tesla’s stock to buy his solar-energy company SolarCity.
The agreement could draw scrutiny from regulators and investors over governance, valuation and conflicts of interest given Musk’s overlapping leadership roles across multiple firms, as well as the potential movement of engineers, proprietary technology and contracts between entities.
SpaceX also holds billions of dollars in federal contracts with NASA, the Department of Defense and intelligence agencies, which all have some authority ‌to review M&A transactions for national security and other risks.