Blinken and Russia’s Lavrov have ‘frank’ discussion about prisoners

US Secretary of State Antony Blinken. (AFP)
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Updated 29 July 2022
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Blinken and Russia’s Lavrov have ‘frank’ discussion about prisoners

  • "I pressed the Kremlin to accept the substantial proposal that we put forth on the release of Paul Whelan and Brittney Griner," Blinken said
  • Lavrov suggested to Blinken that the two sides return to quiet diplomacy on the issue of prisoner swaps

WASHINGTON: US Secretary of State Antony Blinken on Friday said he has held a telephone conversation with Russian Foreign Minister Sergei Lavrov.
He pressed the Kremlin to accept the ‘substantial proposal’ that Washington has put forward to secure the release of two Americans detained in Russia.
In their first such conversation since the start of Russia’s invasion of Ukraine on Feb. 24, the two top diplomats looked to stick to their existing positions, according to the readout of the call from Blinken and the Russian foreign ministry.
“We had a frank and direct conversation,” Blinken told a news conference at the State Department. “I pressed the Kremlin to accept the substantial proposal that we put forth on the release of Paul Whelan and Brittney Griner,” he said.
A US official, speaking on the condition of anonymity, said the call lasted about 25 minutes and it was “without polemics and was businesslike.”
Lavrov suggested to Blinken that the two sides return to quiet diplomacy on the issue of prisoner swaps.
“Regarding the possible exchange of imprisoned Russian and US citizens, the Russian side strongly suggested a return to the practice of handling this in a professional way and using ‘quiet diplomacy’ rather than throwing out speculative information,” a Russian foreign ministry statement said.
The United States this week announced that it made an offer to Russia, weeks ago, to secure the release of WNBA star Brittney Griner and former US Marine Paul Whelan but did not reveal what it was offering.
A source familiar with the situation said Washington was willing to exchange Russian arms trafficker Viktor Bout, who is serving a 25 year-prison sentence in the United States, as part of a deal.
Families of Americans detained abroad, many of them by some of the top US adversaries, have been increasing pressure on US President Joe Biden, most recently in the case of two-time Olympic gold medallist Griner, who was arrested on drugs charges at a Moscow airport on Feb. 17 and could face up to 10 years in prison.
Earlier at a news conference in Uzbekistan, Lavrov said talks on prisoner exchanges had been taking place since a summit in Geneva last year where President Vladimir Putin and Biden had agreed to nominate officials to look into the issue.

IMPOSE ADDITIONAL COSTS
Blinken said he also emphasized to Lavrov that the world expected Russia to fulfill its commitments under a deal with Ukraine struck in Turkey to reopen grain and fertilizer exports that have been blocked by war, which is deepening a worldwide food crisis.
“Ambassador Brink, our ambassador to Ukraine, was in Odesa this morning. She confirmed the ships are loaded and ready to go...As I made clear, we’re looking to see that move forward as soon as possible,” he said.
Lavrov told Blinken that it was the US sanctions that complicated the global food situation.
The top US diplomat also warned Lavrov against going ahead with plans to further annex parts of Ukraine. “The world will not recognize annexations. We will impose additional significant costs on Russia if it moves forward with its plans,” he said.
Lavrov said Russia will meet targets of its ‘special military operation’ in Ukraine — the term Moscow uses to define its invasion of Ukraine, which it says is conducted in self-defense. Ukraine and its allies say the Russian assault is entirely unprovoked.
Lavrov also told Blinken that ‘the continuous pumping of US and NATO weapons into the armed forces of Ukraine...only prolongs the agony of the regime in Kyiv prolonging the conflict and multiplying the casualties,” according to the Russian foreign ministry.


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

Updated 7 sec ago
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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.