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Ukraine urges NATO to deploy ships in dispute with Russia

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KIEV, Ukraine — The president of Ukraine is urging NATO to deploy warships to the Sea of Azov, a proposal that has been sharply criticized by Russia as a provocation that could worsen tensions between the two countries following a weekend confrontation in the waters off the Crimean Peninsula.

U.S. President Donald Trump said Thursday he was cancelling a planned meeting with Russian President Vladimir Putin at the G-20 summit in Argentina because Moscow has not released the Ukrainian vessels and sailors it seized.

In an interview published earlier Thursday with the German daily Bild, Ukrainian President Petro Poroshenko laid out his hope that NATO would “relocate naval ships to the Sea of Azov in order to assist Ukraine and provide security” against Putin’s expansionist ambitions.

The Russian coast guard fired on and seized three Ukrainian vessels and their crews on Sunday. Russia alleged the Ukrainian vessels had failed to obtain permission to pass from the Black Sea into the Sea of Azov through the Kerch Strait. Ukraine insisted its vessels were operating in line with international maritime rules in the strait, which separates Russia’s mainland and the Crimean Peninsula that it annexed from Ukraine in 2014.

While condemning the Russian action, NATO is not expected to send ships to the area, a deployment that could trigger a confrontation with Russia. A 2003 treaty between Russia and Ukraine stipulates that permission from both countries is required for warships from anywhere else to enter the internal sea.

NATO spokeswoman Oana Lungescu said the alliance already has a strong presence in the region, and that NATO ships routinely patrol and conduct exercises in the Black Sea, especially those from Bulgaria, Romania, and Turkey, which border the sea.

German Chancellor Angela Merkel said early Thursday that she plans to press Putin at the upcoming G-20 summit in Argentina to urge the release of the Ukrainian ships and crews and to de-escalate the situation.

“We can only resolve this in talks with one another because there is no military solution to all of these conflicts,” she said.

It was not clear whether Merkel knew of Poroshenko’s call for NATO’s deployment when she spoke.

Trump tweeted his decision to cancel a meeting with Putin this weekend. Trump, who was en route to Buenos Aires for the G-20 summit, said he would not be meeting Putin because “the ships and sailors have not been returned to Ukraine from Russia.”

The Kremlin said it has not been notified of a cancellation. Russian news agencies quoted Dmitry Peskov, Putin’s spokesman, as saying that the Kremlin only learned of the cancellation from Trump’s tweet.

Peskov said the cancellation means that Putin will have “a couple of more hours” for “useful meetings” with other leaders of the world’s 20 largest economies.

The Ukrainian government said Russia has blocked commercial traffic to and from Ukrainian ports on the Sea of Azov, which Russia quickly denied.

“Putin wants nothing less but to occupy the sea,” Poroshenko said. “The only language he understands is the unity of the Western world.”

Putin on Wednesday criticized the West for what he described as connivance with Ukraine’s “provocation.”

“The authorities in Kyiv are successfully selling anti-Russian sentiments as they have nothing else left to sell,” he said. “They can get away with whatever they do. If they want to eat babies for breakfast today, they will likely get served too.”

In response to Sunday’s events, Ukraine has imposed martial law in parts of the country. Putin accused Poroshenko of provoking the naval incident in a bid to impose martial law to shore up his sagging popularity and sideline competitors ahead of a presidential election in March.

Peskov said Poroshenko’s request for NATO warships is “clearly aimed at provoking further tensions,” adding that it was driven by “electoral and domestic policy motives.”

Poroshenko said that martial law wouldn’t restrict travel, cash withdrawals or currency purchases by Ukrainians, but Russians will face some unspecified constraints.

Ukraine’s Ministry of Infrastructure says Russia has blocked 35 merchant ships from leaving or entering the Sea of Azov since Wednesday.

The ministry said 18 ships have been stuck in the Black Sea, waiting to pass through the Kerch Strait into the Sea of Azov. Another 17 vessels were unable to leave the Ukrainian ports of Mariupol and Berdyansk on the Sea of Azov, it said.

Peskov insisted that Russia hasn’t imposed any restrictions on the ships’ passage, adding that a possible logjam could be linked to poor weather.

Ukraine’s intelligence agency, the SBU, said a Russian fighter jet and a helicopter fired rockets Sunday at the three Ukrainian vessels before they were captured — the first time an airstrike was reported.

“It’s a miracle the Ukrainian seamen have survived,” SBU deputy chief Oleh Frolov told reporters.

There has been growing hostility between Ukraine and Russia since Moscow’s annexation of the Crimean Peninsula from Ukraine in 2014. Russia has also supported separatists in Ukraine’s east with clandestine dispatches of troops and weapons. Fighting there has killed at least 10,000 people since 2014 but eased somewhat after a 2015 truce.

The naval incident marked the first overt clash between Russian and Ukrainian militaries since the 1991 collapse of the Soviet Union. It has fueled fears of a wider conflict and has drawn strong criticism of Russia from the U.S. and its allies.

Amid the tensions, the Russian military said it had deployed another batch of the long-range, S-400 air defence missile systems to Crimea.

Turkish President Recep Tayyip Erdogan said he discussed the possibility of a Turkish mediation to resolve tensions and had separate phone calls with Putin and Poroshenko on Thursday.

Asked about the Turkish offer, Peskov responded that “Moscow is grateful to all those willing to help de-escalate the tensions provoked by the Ukrainian side, but doesn’t see any need for mediation efforts.”

“Those who have such opportunities could help by exerting influence on the Ukrainian authorities,” Peskov said.

___

Isachenkov reported from Moscow. Nataliya Vasilyeva in Moscow, David Rising in Berlin and Lorne Cook in Brussels contributed.

Yuras Karmanau And Vladimir Isachenkov, The Associated Press








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What is ‘productivity’ and how can we improve it

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From the Fraser Institute

By Jock Finlayson

Earlier this year, a senior Bank of Canada official caused a stir by describing Canada’s pattern of declining productivity as an “emergency,” confirming that the issue of productivity is now in the spotlight. That’s encouraging. Boosting productivity is the only way to improve living standards, particularly in the long term. Today, Canada ranks 18th globally on the most common measure of productivity, with our position dropping steadily over the last several years.

Productivity is the amount of gross domestic product (GDP) or “output” the economy produces using a given quantity and mix of “inputs.” Labour is a key input in the production process, and most discussions of productivity focus on labour productivity. Productivity can be estimated for the entire economy or for individual industries.

In 2023, labour productivity in Canada was $63.60 per hour (in 2017 dollars). Industries with above average productivity include mining, oil and gas, pipelines, utilities, most parts of manufacturing, and telecommunications. Those with comparatively low productivity levels include accommodation and food services, construction, retail trade, personal and household services, and much of the government sector. Due to the lack of market-determined prices, it’s difficult to gauge productivity in the government and non-profit sectors. Instead, analysts often estimate productivity in these parts of the economy by valuing the inputs they use, of which labour is the most important one.

Within the private sector, there’s a positive linkage between productivity and employee wages and benefits. The most productive industries (on average) pay their workers more. As noted in a February 2024 RBC Economics report, productivity growth is “essentially the only way that business profits and worker wages can sustainably rise at the same time.”

Since the early 2000s, Canada has been losing ground vis-à-vis the United States and other advanced economies on productivity. By 2022, our labour productivity stood at just 70 per cent of the U.S. benchmark. What does this mean for Canadians?

Chronically lagging productivity acts as a drag on the growth of inflation-adjusted wages and incomes. According to a recent study, after adjusting for differences in the purchasing power of a dollar of income in the two countries, GDP per person (an indicator of incomes and living standards) in Canada was only 72 per cent of the U.S. level in 2022, down from 80 per cent a decade earlier. Our performance has continued to deteriorate since 2022. Mainly because of the widening cross-border productivity gap, GDP per person in the U.S. is now $22,000 higher than in Canada.

Addressing Canada’s “productivity crisis” should be a top priority for policymakers and business leaders. While there’s no short-term fix, the following steps can help to put the country on a better productivity growth path.

  • Increase business investment in productive assets and activities. Canada scores poorly compared to peer economies in investment in machinery, equipment, advanced technology products and intellectual property. We also must invest more in trade-enabling infrastructure such as ports, highways and other transportation assets that link Canada with global markets and facilitate the movement of goods and services within the country.
  • Overhaul federal and provincial tax policies to strengthen incentives for capital formation, innovation, entrepreneurship and business growth.
  • Streamline and reduce the cost and complexity of government regulation affecting all sectors of the economy.
  • Foster greater competition in local markets and scale back government monopolies and government-sanctioned oligopolies.
  • Eliminate interprovincial barriers to trade, investment and labour mobility to bolster Canada’s common market.
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COP29 was a waste of time

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From Canadians For Affordable Energy

Dan McTeague

Written By Dan McTeague

The twenty-ninth edition of the U.N. Climate Change Committee’s annual “Conference of the Parties,” also known as COP29, wrapped up recently, and I must say, it seemed a much gloomier affair than the previous twenty-eight. It’s hard to imagine a more downcast gathering of elitists and activists. You almost felt sorry for them.

Oh, there was all the usual nutty Net-Zero-by-2050 proposals, which would make life harder and more expensive in developed countries, and be absolutely disastrous for developing countries, if they were even partially implemented. But a lot of the roughly 65,000 attendees seemed to realize they were just spewing hot air.

Why were they so down? It couldn’t be that they were feeling guilty about their own hypocrisy, since they had flown in, many aboard private jets, to the Middle Eastern petrostate of Azerbaijan, where fossil fuels count for two-thirds of national GDP and 90% of export revenues, to lecture the world on the evils of flying in planes and prospering from the extraction of oil and natural gas. Afterall, they did the same last year in Dubai and there was no noticeable pang of guilt there.

It’s likely that Donald Trump’s recent reelection had a lot to do with it. Living as they do in a media bubble, our governing class was completely blindsided by the American people’s decision to return their 45th president to the White House. And the fact that he won the popular vote this time made it harder to deny his legitimacy. (Note that they’ve never questioned the legitimacy of Justin Trudeau, even though his party has lost the popular vote in the past two federal elections. What’s the saying about the modern Left? “If they didn’t have double standards, they’d have no standards at all.”)

Come January, Trump is committed to (once again) pulling the U.S. out of the Paris Climate Accords, to rolling back the Biden Administration’s anti-fracking and pro-EV regulations, and to giving oil companies the green light to extract as much “liquid gold” (his phrase) as possible, with an eye towards making energy more affordable for American consumers and businesses alike. The chance that they’ll be able to leech billions in taxpayer dollars from the U.S. Treasury while he’s running the show is basically zero.

But it wasn’t just the return of Trump which has gotten the climate brigade down. After a few years on top, environmentalists have been having one setback after another. Green parties saw a huge drop off in support in the E.U. parliament’s elections this past June, losing one-third of their seats in Brussels.

And wherever they’ve actually been in government, in Germany and Ireland for instance, the Greens have dragged down the popularity of the coalitions they were part of. That’s largely because their policies have been like an arrow to the heart of those nations’ economies – see the former industrial titan Germany, where major companies like Volkswagen, Siemens, and the chemical giant BASF are frantically shifting production to China and the U.S. to escape high energy costs.

But while voters around the world are kicking climate ideologues to the curb, there are still a few places where they’re managing to cling to power for dear life.

Here in Canada, for instance, Justin Trudeau and Steven Guilbeault steadfastly refuse to consider revisiting their ruinous Net Zero policies, from their ever-increasing Carbon Tax, to their huge investments in Electric Vehicles and the mandates which will force all of us to buy pricey, unreliable EVs in just over a decade, and to the emissions caps which seek to strangle the natural resource sector on which our economy depends.

Minister Guilbeault was all-in on COP29, heading the Canadian delegation, which “hosted 65 events showcasing Canada’s leadership on climate action, nature-based solutions, sustainable finance, and Canadian clean technologies—while discussing gender equality, youth perspectives, and the critical role of Indigenous knowledge and climate leadership” and stood up for Canadian values such as “2SLGBTQI+” and “gender inclusivity.” Once again, in Azerbaijan, which has been denounced for its human rights abuses.

And no word yet on the cost of all of this – for last year’s COP28 the government – or should I say the taxpayers – spent $1.4M on travel and accommodations alone for the 633 member delegation. That number, not counting the above mentioned events, are sure to be higher, as Azerbaijan is much less of a travel destination than Dubai, and so has fewer flights in and available hotel rooms.

At the same time all of this was going on, Trudeau was 12,000 kms away in Rio de Janeiro, Brazil,  telling an audience that carbon taxation is a “moral obligation” which is more important than the cost of living: “It’s really, really easy when you’re in a short-term survive, [to say] I gotta be able to pay the rent this month, I’ve gotta be able to buy groceries for my kids, to say, OK, let’s put climate change as a slightly lower priority.”

This is madness, and it underscores how tone-deaf the prime minister is, and also why current polling looks so good for the Conservatives that Pierre Poilievre might as well start measuring the drapes at the PMO.

He has the Trudeau Liberals’ obsessive pursuit of Net Zero policies in large part to thank for that.

The world is waking up to the true cost of the Net Zero ideology, and leaving it behind. That doesn’t mean the fight is over – the activists and their allies in government are going to squeeze as many tax dollars out of this as they possibly can. But the writing is on the wall, and their window is rapidly closing.

Dan McTeague is President of Canadians for Affordable Energy.

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