Ruble volatility exposes Russia’s emerging economic crisis – Asia Times

On November 28, the Russian ruble dropped to 113 against the US dollars, which is its lowest level since the start of the conflict in Ukraine.

The ruble has since risen a little to 105 on December 4, but it has fallen back to 105 in the last quarter, or about 8 %, against the dollar. This is not a one-off function, it is part of a developing issue that is affecting Russia’s market.

Since its army invaded Ukraine in February 2022, Russia’s money has experienced extreme volatility. The ruble’s original decline, which saw it lose one-third of its value by March compared to the start of the year, was the result of the nation’s exodus of capital following the enactment of Western sanctions.

The ruble’s worth decreased as a result of money flowing out of Russia, which made it more readily accessible on the foreign exchange market.

In answer, Russia’s central banks implemented strict capital-control steps to maintain its currency. The measures included requiring manufacturers to exchange 80 % of their international currency profits for francs and imposing a US$ 10,000 maximum for individual foreign currency withdrawals.

Russia had discovered a way to evade sanctions by exporting a lot of its oil and gas to nations like China and India by the middle of 2022, when electricity prices were rising.

The Russian benefited from robust export earnings, and the ruble’s price was briefly revived. The money controls deliberately increased the demand for the rubles, making it one of the year’s best-performing assets.

But, falling energy costs and tighter sanctions in 2023 caused a decline in Russia’s trade income. The G7 nations, the EU, and Australia placed a cover on the price of Russian crude, which resulted in a drop in foreign currency flows and a decline in the value of the rubles.

The November 2024 collapse is, at least in part, also the result of these factors. The main problems are the ongoing reduction in export earnings brought on by sanctions and the G7 oil price cover, as well as the looming end of the pipeline gas supply to Europe via Ukraine in 2025.

But new US restrictions, which came into effect on November 21, have worsened the position. Gazprombank, one of the few big Russian loans that had yet to be targeted, as well as 50 tiny- to medium-sized Russian businesses, 40 regional Russian clerks and some Russian central bank officials have all now been cut off from doing business with the US and its allies.

Customers of Russian oil and gas will once more have to find new ways to conduct company, as they did in 2022 due to this restriction. The business anticipates that these sanctions will lessen the flow of foreign money to Russia, leading to a decline in the rouble.

The Bank of Russia has taken an action by halting all private dollar payments through the end of the year. This will maintain the exchange level, albeit intentionally. However, trading may remain on the black business.

Signboard with the logo of Gazprombank against a blue sky.
The US has imposed sweeping sanctions on the Russian economic market, including on Gazprombank. Photo: FotograFFF / Shutterstock via The Talk

More instability away

Domestic and international funding will be stifled by a dangerous and weak franc, as investors prefer to trade in a robust and predictable currency.

The central bank will also be forced to use its reserves to support the franc because it encourages people to relocate their money out of the country, as it has since the start of the war. Russia’s current constraints are limited international money inflows and higher spending demands, creating a vicious cycle that will undermine its currency even more.

A poor franc even raises the cost of importing products or materials. If import-dependent businesses don’t pass the higher costs on to consumers, which is fairly simple in Russia, where there is little market competition, their profit margins may be slashed.

This drives prices for imported items like food, medical supplies, equipment and strength. Russia imported over$ 81 million price of energy in 2022, mostly from Lithuania, Kazakhstan, Latvia, Azerbaijan and Mongolia.

And it imports specific refined petroleum products, also. Russia’s annual inflation rate was estimated at 8.4 % in October, which is twice the goal of the central bank, and it is not anticipated to increase until the year’s end.

Russia’s leader, Vladimir Putin, and his economy minister, Maxim Reshetnikov, say there is no need for emergency measures to help the rubles. Reshetnikov has stated that the volatility of the ruble is brought on by the US dollar’s power globally, and that market concerns following the most recent sanctions should immediately settle.

However, failing to take a decisive course of action could lead to more depreciation, which will only increase investor confidence in the franc. According to experts, the main company’s current interest rate of 21 % is expected to rise in order to maintain the ruble and reduce inflation. However, raising the rates will definitely decrease the market.

There is a lot of things that concern Putin. Falling export earnings, prices and strained resources all weaken Russia’s macroeconomic stability. And it appears as though Western sanctions are now having a major impact on Russia’s ability to deal with its financial troubles.

The Putin’s regime’s administrators may say that a weaker franc will be more advantageous to them during the conflict. The Kremlin will have more local currency to help cover the government’s growing deficit if foreign currencies are converted to stronger ones from energy exports.

Despite this, Russia’s currency crises has exposed heavy issues in the economy. It has a poor economic sector, has limited economic expansion, and relies heavily on power exports.

Putin may have no choice but to conduct business with a few trading partners, including China and India, because sanctions will likewise isolate Russia more and entail its financial freedom.

Nasir Aminu is older teacher in economics and finance, Cardiff Metropolitan University

This content was republished from The Conversation under a Creative Commons license. Read the original post.

Asia Times Editor’s note: Franc charges were updated for latest available information.

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South Korea martial law: The six hours that shook the country

When the pictures on television suddenly changed and 19-year-old Chang was watching the demonstrations in Georgia on Tuesday night’s information when Yoon Suk Yeol, South Korea’s leader, declared martial law, immediately the limelight was on his nation.

” I don’t believe what I was seeing”, said the 19-year-old pupil, who wished to be identified solely by his title.

By Wednesday afternoon, he was one of the activists standing before the National Assembly who was still stunned by what had transpired the night before.

Hwang remarked,” It’s essential for me to be here to show that what Yoon tried to do was not done.”

After legislators scrambled to prevent it, Yoon was forced to walk back in less than six hours after making his surprise news.

But those were turbulent days, sparking demonstrations, fear and uncertainty in the country that had elected him.

The news

On Tuesday night, at 23: 00 local time ( 14: 00 GMT ) President Yoon, seated in front of blue creaseless curtains, made an unexpected address to the nation.

He claimed that he would enact military rules to shield the nation from “anti-state” militias that sympathized with North Korea. The tumultuous chief is impassed over a budget bill, which has been plagued by bribery scandals and inquiries into his cabinet members.

What followed was a day of snooze for Seoul.

Shortly after Yoon’s statement, authorities lined the light copper gates outside the National Assembly tower in the center of Seoul, the tower that the government’s tourism authorities have framed as” the sign of Asian democracy”.

The military finally declared that all political business was prohibited under martial law. However, neither that nor the extensive protection presence prevented thousands from gathered in worry and rage in front of the assembly.

It is easy to overlook that authoritarianism only came into existence in 1987 under military rule, making South Korea, a lively democracy, have its final resemblance to authoritarianism in the not-too-distant past. The final martial law was in place in 1979.

Juye Hong, a pupil at Seoul’s BBC World Service’s OS program, described this as” a walk I never anticipated in the 21st century in South Korea.”

Getty Images Protesters outside the National Assembly buildingGetty Images

The rush

Shortly after Yoon’s impact statement, the opponent’s Democratic Party leader Lee Jae-myung, hosted a life supply urging people to arrange at the National Assembly and opposition it.

He also requested that his own lawmakers demonstrate their opposition to the order before the council.

Thousands of South Koreans responded.

As a lake of icy, black coats of winter pushed up against police wearing neon overcoats, chanting” no to military law” quickly, tensions grew.

And as military cars arrived, audiences resisted them. One lady sat obtrusively between the tyres of a car.

In stark comparison, there was a façade of civility across the rest of Seoul. However, confusion enveloped the town.

” The roadways look standard, people here are truly bewildered”, John Nilsson-Wright, an associate professor at the University of Cambridge, told BBC World Service from Seoul.

The officer he spoke to was” when bewildered as I am”, he added.

Reuters A woman lies on a road to block a vehicle transporting an army unitReuters

Some people had a hard day of sleep. ” At first I was excited at the thought of not going to college today”, 15-year-old Kwon Hoo told the BBC in Seoul on Wednesday. ” But therefore increasingly the sense of fear settled in, that kept me awake all night.”

A South Korean who did not want to be identified told BBC OS,” No words can express how frightened I am that things might turn out like North Korea for our people.”

However, expression was spreading that particular troops had been deployed to the council building. Before getting on the roof of the parliament, planes were audible above the air.

Investigators scurried away with their devices as they ran into the group outside the gates.

Journalists in Seoul kept in touch with one another and exchanged tips on how to stay healthy as worries grew about the government’s plans to restrain the press.

Ahn Gwi-ryeong, the 35-year-old director for the opposition Democratic Party found herself facing down men at guns. A picture of the time, where she is tugging at the chamber of a soldier’s shotgun, has since gone popular.

” I wasn’t thinking about something philosophical or moral, I was just like,’ We have to prevent this, if we don’t quit this, there’s nothing else,” she told the BBC.

” To be honest, I was a bit scared at first when I first saw the martial law forces. I thought,’ Is this something that may arise in 21st centuries Korea, especially in the National Assembly?”

” After quite a surprise next day, it was hard to get back to reality,” she added, recalling the preceding day”. I perceived that story was going to reverse itself.

Reuters A helicopter flies around the National Assembly hallReuters

The clock was ticking for opposition politicians as Ahn confronted the men, who rushed to the council to halt the purchase. When that happened, the leader would have to remove it.

But first, Members and their assistants had to get in. Some desperately clambered over fences and walls, while another shoved and screamed at military soldiers.

Lee Seong-yoon of the Democratic Party told the BBC that he had to climb a 1.5 meter ( 4. 9 ft ) high fence to enter the building, with the police blocking him despite having provided evidence that he was a lawmaker.

Hong Keewon, a different opposition MP, claimed activists had aided in hoisting him over the roof. When Yoon made the announcement, he was drowsy when he awoke his family and raced to parliament.

” Democracy is powerful around,” Hong said”. The defense wants to listen to us, to the law, and not to the chairman.”

Reuters Police officers block the entry to the National Assembly buildingReuters
Getty Images Barricade are seen at the National AssemblyGetty Images

The ballot

Only somewhat calmer than the people around, the lawmakers who made it into the tower huddled together. Hurriedly, they barricaded the doors with whatever they could get: cushioned seats, long tables, sofas.

Some attempted to entice men who had entered the assembly tower.

By 01: 00 regional time, National Assembly Speaker Woo Won-sik submitted a resolution requesting military rules to be lifted.

With that, less than two days after Yoon’s impact declaration, 190 politicians who gathered, including some from Yoon’s group, voted unanimously to prevent it.

EPA-EFE Lawmakers in parliament voting against Yoon's martial law orderEPA-EFE

Following the vote, opposition leader Lee stated to investigators that this was” a significant opportunity to break the vicious cycle and return to normal world.”

By 04: 30, Yoon was again on Television, in front of the same blue curtains, saying he would withdraw martial law. He claimed that this would only become official when enough members of his case may be assembled to pull the order.

The news was met with cheers outside the assembly. In the hours before dawn, more people emerged from the building, from behind the barricades they had haphazardly put together.

The stately structure already has the scars of the night when South Koreans defended their politics, with broken windows and cracked doors.

On Wednesday night, banks, local businesses, and schools all opened up as usual, and flights remained unaffected in South Korea’s buzzing money.

However, the political consequences and public outcry were not used.

As the sun rose on Wednesday, dozens gathered to visit for Yoon’s withdrawal. The leader is also facing prosecution trials.

” We are a powerful democracy… But Asian people want to be secure- President Yoon must resign or get impeached,” Yang Bu-nam, a Democratic Party legislator, told the BBC.

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Protecting people from themselves: Can a proposed law help bring down scam numbers in Singapore?

CAN THEY MAKE POOR CHOICES?

The walk, however, may be criticised for not allowing people to exercise individual responsibility, said prosecutor Mark Yeo, who was also on the radio.

On the other hand, it may protect the elder in specific, who may be ripped off of everything they have, he said.

The chairman at Fortress Law Corporation said that the majority of the money that is being taken out of them is life discounts, and once that happens, world has to pick up the pieces when they need cultural services assistance.

You feel the need to defend them a little bit from themselves because of the group aspect of it.

A 82-year-old man who was targeted by cybercriminals three days in less than two decades prevented losing S$ 3.7 million as a result of the action of the government and businesses in March of this year. &nbsp,

Despite its possible advantages, Mr. Yeo noted that it appears that the police force has all the authority to act in the suggested costs because appeals will also be handled by them.

” I’m not sure in practice how often ( the appeals process ) will be used, or whether it will be an effective check, given that it’s the police checking the officer’s own actions. So there is that issue”, he said. &nbsp,

He pointed out, however, that having a independent body to tackle appeals, like the judge, had compromise any continuing investigations by the authorities.

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South Korea’s opposition plans to impeach Yoon after martial law attempt

EPA Protesters hold placards and flags during a demonstration calling for the dismissal and impeachment of South Korean President Yoon Suk Yeol outside the National Assembly in Seoul, South Korea, 04 December 2024EPA

The opposition politicians in South Korea have stated that they will begin the legal action to remove Yoon Suk Yeol from office soon after his failed attempt to enact martial law.

After a day of extraordinary scenes that saw Yoon quickly impose martial law, 190 legislators gathering to reject it, and eventually a sudden reverse of the decision, the nation woke up to an ambiguous reality on Wednesday.

The Democratic Party, South Korea’s key opposition group, announced on Wednesday that it wants to charge Yoon with” acts of revolution.”

Seoul’s institutions, banks, and government buildings were operating as usual, but rallies have continued throughout the city.

” Arrest Yoon Suk-yeol”, unhappy people chanted as they filled the streets.

The Democratic Party even named Defence Minister Kim Yong-hyun and Interior Minister Lee Sang-min, as “key individuals” of the military law charter, saying it even wanted them charged alongside Yoon.

” The]party ] condemns the unconstitutional and illegal emergency martial law of Yoon Seok Yeol’s regime as a crime of rebellion.

As the whole country is aware of the rebellion, I urge the analytical agencies to launch an investigation and prosecute the perpetrators,’ the party’s official Seung Rae-cho told reporters.

Reuters South Korean President Yoon Suk Yeol delivers a speech to declare martial law in Seoul, South Korea, December 3, 2024.Reuters

The statement on Wednesday comes after unexpected events immediately, in which opposition lawmakers walk fences and break barricades to enter the voting chamber.

After Yoon declared martial law, hundreds of troops stormed the congress as military planes circled the location.

190 politicians evaded authorities lines and forced themselves inside the National Assembly as a riot of activists gathered at the walls of the National Assembly.

His next statement, in which he was changing his previous order, attracted cheers from demonstrators outside South Korea’s parliament on early on Wednesday.

On Wednesday, Yoon’s top aides, including chief of staff Chung Jin-suk and national surveillance director Shin Won-sik, tendered their defections. It’s not clear whether or not they’ll accept their defections.

The leader himself, however, has remained silent since his short-lived declaration of martial law.

How do presidencies in South Korea operate?

When an impeachment act is proposed, more than two-thirds of South Korea’s 300-member National Assembly may vote to indict- that translates to at least 201 seats. The voting may take place within 72 days.

When the prosecution is approved, the president will soon become suspended from company, while the prime minister becomes acting president.

A trial will then be held before the Constitutional Court, a nine-member committee that oversees South Korea’s branches of government.

If six of the court’s people vote to preserve the prosecution, the president may be removed from office.

EPA Police officers stand guard outside the National Assembly in Seoul, South Korea, 04 December 2024. EPA

Have another North Korean president been impeached?

In 2016, then-President Park Guen-hye was impeached after she was charged with corruption, abusing state authority and leaking state techniques.

In 2004, another South Korean president, Roh Moo-hyun, was impeached and suspended for two weeks. He was then reinstated by the Constitutional Court.

Within 60 days of Yoon’s resignation or impeachment, the government will need to hold an election to choose a new leader for a new five-year name.

South Korea’s past with military law

Under South Korea’s law, the president has the authority to declare martial law during combat, armed conflict, or other federal situations.

The next day the country’s long-standing military dictator Park Chung-hee was assassinated in a revolution occurred in 1979, when martial law was implemented there.

A group of military officials, led by General Chun Doo-hwan, declared martial law in 1980, banning social activities and arresting rebels.

Before the 1981 lifting of military law, hundreds of people died as a result of a crackdown on demonstrators.

Since South Korea became a political democracy in 1987, military law has not been in force.

Yoon pulled the trigger on Tuesday, saying he was trying to save the nation from” anti-state troops”.

However, some experts believe that the action is his attempt to thwart political opposition.

Since the opposition won a resounding majority in the government’s general election in April this year, Yoon has been a lame duck leader. His government has been reduced to vetoing legislation that the opposition has suggested, leading to a pathetic bird presidency.

The government’s approval ratings have hit record highs of 17 % this time, as he and his family Kim Keon-hee have been mired in a deluge of crises.

Woongbee Lee and Frances Mao both provided further reporting in Seoul and London.

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BRI’s recent award triumphs point to its focus on becoming a champion of financial inclusion | FinanceAsia

According to Sunarso, leader director, Bank Rakyat Indonesia ( BRI),” Tr I will continue to focus on the MSME section to realize its dreams of becoming the most important banks group in Southeast Asia and a champion of financial inclusion by 2025.” He continued,” As the nationwide economic structure is dominated by Enterprises, providing loans to MSME people is anticipated to have a significant positive impact on the Indonesian business.”

The 130-year-old company’s outstanding achievement in FinanceAsia Asia’s Best Businesses Poll 2024 and the FinanceAsia Awards demonstrate how focused this perspective is on BRI’s peers in the industry.

In FinanceAsia Asia’s Best Companies ballot, the banks won silver in the following categories: Best Director for Sunarso, leader director, BRI, Best Managed Company – Indonesia, and Best Investor Relations – Indonesia.

Additionally, BRI won bronze in the types of Best Big Cap Company in Indonesia and Best CFO in Indonesia for Viviana Dyah Ayu Retno K, Most Committed to DEI – Indonesia, Most Committed to ESG – Indonesia, and Best Big Cap Company – Indonesia.

The bank had a stellar run at the FinanceAsia Awards 2023-2024 winning Best Bank for Financial Inclusion ( Domestic ) and Best Commercial Bank- SMEs ( Domestic ), apart from securing commendations for Best Sustainable Bank ( Domestic ), Most Innovative Use of Technology – Banks ( Domestic )

View Sunarso, the president’s director ,’s acceptance speech, below.

¬ Capitol Media Limited. All rights reserved.

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Critics question Laos dam project

An aerial view of the section of the Mekong River where the controversial Pak Beng hydropower dam project would be built, in Oudomxai province of Laos. (Photo supplied)
An aerial view of the section of the Mekong River where the controversial Pak Beng hydropower dam project would be built, in Oudomxai province of Laos. (Photo supplied)

Environmentalists have raised concerns about a 100-billion-baht dam project on the lower section of the Mekong River in Laos, warning of adverse effects on the livelihoods of those living on both sides of the Thai-Lao border.

The Pak Beng hydropower dam project is one of 11 planned for the lower Mekong.

It is part of Laos’ economic strategy to become the “Battery of Southeast Asia” by selling hydropower to neighbouring countries.

Located in Pak Beng district, Oudomxay province, about 90 kilometres from the border with Chiang Rai, the run-of-river dam will be designed to produce 912 megawatts of electricity.

Work is expected to take eight years, with electricity sales to the Electricity Generating Authority of Thailand (Egat) slated to begin in 2033.

Cross-border impacts

A transboundary environmental impact assessment (TBEIA) has been underway to study the dam’s potential effects on both countries, with findings to be presented to Egat before financing is finalised.

However, local communities, academics, and civil groups in Thailand have opposed the project for years, citing inadequate public consultation and outdated environmental studies.

Pianporn Deetes, regional campaign director of International Rivers, said a recent survey showed work on the dam had not yet begun, apart from a bridge and access roads.

In Laos, authorities have told residents of impending relocations to accommodate the dam.

Ms Pianporn criticised the environmental study supporting the project as outdated and said it underestimated the number of people likely to be affected.

She also noted insufficient public participation in planning and raised concerns about higher electricity bills in Thailand resulting from Egat’s 29-year power purchase agreement.

“Banks providing loans are waiting for the TBEIA results. We hope the study addresses broader impacts, ensures stakeholder participation, and considers rising electricity costs,” she said.

Pianporn: Building has not yet begun

Pianporn: Building has not yet begun

Flooding and ecology

Flooding is another major concern.

Severe floods in northern Thailand, including Chiang Rai, in recent months have heightened fears the dam could worsen future flood scenarios by slowing the flow of Mekong tributaries.

Ms Pianporn added that civil groups have asked for a mathematical model to assess potential flooding impacts on residents and farmlands but have received no response.

Locals in Chiang Rai’s Chiang Khong, Wiang Kaen, and Chiang Saen districts have voiced fears about water backing up from the dam, which could inundate homes and farmland.

Legal and governance challenges

Sor Rattanamanee Polkla, a lawyer with the Community Resource Centre, highlighted legal loopholes in Thai law, which lacks requirements for transboundary impact assessments.

The Supreme Administrative Court rejected an appeal against the dam in 2021, ruling Thailand has no jurisdiction over projects in Laos.

“This legal gap shows Thailand cannot govern projects outside its borders, even when they affect Thai communities,” she said, adding the TBEIA is being conducted under Lao laws, raising concerns about the scope and inclusivity of the study.

After the lower court rejected their case, the groups appealed to the Supreme Administrative Court.

However, the court ruled Thailand does not have a law requiring transboundary impact assessments, and so has no jurisdiction over projects located within Laos.

Ms Sor Rattanamanee said the transboundary environmental impact assessment (TBEIA) will be submitted to Lao authorities for approval.

It is unclear to what extent ordinary Thais as opposed to Egat will get a say in the process, especially as they lack jurisdiction, she said..

“We do not know how the TBEIA is being conducted or to what extent it will cover impacts on Thailand,” she said.

Sor: Little Thailand can do

Sor: Little Thailand can do

Call for wider impact assessments

Hannarong Yaowalers, an adviser to the Thai Water Partnership Foundation, stressed the importance of incorporating feedback from all stakeholders.

He criticised the TBEIA for focusing only on areas near the site in Laos and neglecting areas in Thailand which could also be affected, such as Chiang Khong and Wiang Kaen districts in Chiang Rai.

“Egat must ensure the TBEIA covers broader assessments, including impacts on fisheries, natural resources, and social issues, as part of its power purchase agreement requirements,” he said.

“As far as we know, Egat does not include these as part of its requirements,” Mr Hannarong said. Activists would keep an eye on progress to make sure their concerns were addressed.

Critics also said the planned purchase of electricity was unnecessary as the country has more than enough power in reserve.

Energy demand questioned

Critics argue the additional power that would be generated by the dam is unnecessary.

Surichai Wankaew, an emeritus professor at Chulalongkorn University, said Thailand already has 69% of power in reserve.

The Pak Beng project continues to face scrutiny from civil groups and environmental advocates, who are urging authorities to reconsider the dam’s long-term implications for the region’s ecology, livelihoods, and energy needs.

The Mekong River Commission (MRC) is an intergovernmental agency that collaborates with the governments of Laos, Cambodia, Thailand, and Vietnam to manage the Mekong’s resources.

Advocacy groups have criticised an original community survey by Thai agencies for being flawed in terms of legal compliance, lacking adequate assessments of transboundary environmental, health, and social impacts.

Hannarong: Feedback essential

Hannarong: Feedback essential

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Critics question Laos dam project’s impact on Thailand

An aerial view of the section of the Mekong River where the controversial Pak Beng hydropower dam project would be built, in Oudomxai province of Laos. (Photo supplied)
An aerial view of the section of the Mekong River where the controversial Pak Beng hydropower dam project would be built, in Oudomxai province of Laos. (Photo supplied)

Environmentalists have raised concerns about a 100-billion-baht dam project on the lower section of the Mekong River in Laos, warning of adverse effects on the livelihoods of those living on both sides of the Thai-Lao border.

The Pak Beng hydropower dam project is one of 11 planned for the lower Mekong.

It is part of Laos’ economic strategy to become the “Battery of Southeast Asia” by selling hydropower to neighbouring countries.

Located in Pak Beng district, Oudomxay province, about 90 kilometres from the border with Chiang Rai, the run-of-river dam will be designed to produce 912 megawatts of electricity.

Work is expected to take eight years, with electricity sales to the Electricity Generating Authority of Thailand (Egat) slated to begin in 2033.

Cross-border impacts

A transboundary environmental impact assessment (TBEIA) has been underway to study the dam’s potential effects on both countries, with findings to be presented to Egat before financing is finalised.

However, local communities, academics, and civil groups in Thailand have opposed the project for years, citing inadequate public consultation and outdated environmental studies.

Pianporn Deetes, regional campaign director of International Rivers, said a recent survey showed work on the dam had not yet begun, apart from a bridge and access roads.

In Laos, authorities have told residents of impending relocations to accommodate the dam.

Ms Pianporn criticised the environmental study supporting the project as outdated and said it underestimated the number of people likely to be affected.

She also noted insufficient public participation in planning and raised concerns about higher electricity bills in Thailand resulting from Egat’s 29-year power purchase agreement.

“Banks providing loans are waiting for the TBEIA results. We hope the study addresses broader impacts, ensures stakeholder participation, and considers rising electricity costs,” she said.

Pianporn: Building has not yet begun

Pianporn: Building has not yet begun

Flooding and ecology

Flooding is another major concern.

Severe floods in northern Thailand, including Chiang Rai, in recent months have heightened fears the dam could worsen future flood scenarios by slowing the flow of Mekong tributaries.

Ms Pianporn added that civil groups have asked for a mathematical model to assess potential flooding impacts on residents and farmlands but have received no response.

Locals in Chiang Rai’s Chiang Khong, Wiang Kaen, and Chiang Saen districts have voiced fears about water backing up from the dam, which could inundate homes and farmland.

Legal and governance challenges

Sor Rattanamanee Polkla, a lawyer with the Community Resource Centre, highlighted legal loopholes in Thai law, which lacks requirements for transboundary impact assessments.

The Supreme Administrative Court rejected an appeal against the dam in 2021, ruling Thailand has no jurisdiction over projects in Laos.

“This legal gap shows Thailand cannot govern projects outside its borders, even when they affect Thai communities,” she said, adding the TBEIA is being conducted under Lao laws, raising concerns about the scope and inclusivity of the study.

After the lower court rejected their case, the groups appealed to the Supreme Administrative Court.

However, the court ruled Thailand does not have a law requiring transboundary impact assessments, and so has no jurisdiction over projects located within Laos.

Ms Sor Rattanamanee said the transboundary environmental impact assessment (TBEIA) will be submitted to Lao authorities for approval.

It is unclear to what extent ordinary Thais as opposed to Egat will get a say in the process, especially as they lack jurisdiction, she said..

“We do not know how the TBEIA is being conducted or to what extent it will cover impacts on Thailand,” she said.

Sor: Little Thailand can do

Sor: Little Thailand can do

Call for wider impact assessments

Hannarong Yaowalers, an adviser to the Thai Water Partnership Foundation, stressed the importance of incorporating feedback from all stakeholders.

He criticised the TBEIA for focusing only on areas near the site in Laos and neglecting areas in Thailand which could also be affected, such as Chiang Khong and Wiang Kaen districts in Chiang Rai.

“Egat must ensure the TBEIA covers broader assessments, including impacts on fisheries, natural resources, and social issues, as part of its power purchase agreement requirements,” he said.

“As far as we know, Egat does not include these as part of its requirements,” Mr Hannarong said. Activists would keep an eye on progress to make sure their concerns were addressed.

Critics also said the planned purchase of electricity was unnecessary as the country has more than enough power in reserve.

Energy demand questioned

Critics argue the additional power that would be generated by the dam is unnecessary.

Surichai Wankaew, an emeritus professor at Chulalongkorn University, said Thailand already has 69% of power in reserve.

The Pak Beng project continues to face scrutiny from civil groups and environmental advocates, who are urging authorities to reconsider the dam’s long-term implications for the region’s ecology, livelihoods, and energy needs.

The Mekong River Commission (MRC) is an intergovernmental agency that collaborates with the governments of Laos, Cambodia, Thailand, and Vietnam to manage the Mekong’s resources.

Advocacy groups have criticised an original community survey by Thai agencies for being flawed in terms of legal compliance, lacking adequate assessments of transboundary environmental, health, and social impacts.

Hannarong: Feedback essential

Hannarong: Feedback essential

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Flood death toll rises to nine in South

Half a million households affected in eight provinces, 13,000 people in emergency shelters

Rescue workers evacuate a child stranded by flooding in tambon Sateng Nok of Muang district in Yala on Saturday. (Photo: Poh Teck Tung Foundation via Reuters)
Rescue workers evacuate a child stranded by flooding in tambon Sateng Nok of Muang district in Yala on Saturday. (Photo: Poh Teck Tung Foundation via Reuters)

SONGKHLA – The death toll from the worst floods in decades in southern Thailand climbed to nine on Saturday, as thousands of people were evacuated due to rising water levels.

The floods across eight provinces have impacted nearly 554,000 households, leaving about 13,000 people in 200 temporary shelters that have been set up in affected areas, the Department of Disaster Prevention and Mitigation said.

Chana district of Songkhla province suffered the worst floods in 50 years, with video showing people being carried out to trucks from their homes inundated by a torrent of flood water.

Authorities in neighbouring Malaysia reported three flood-related deaths in nine northern states, where nearly 140,000 people have been displaced.

Floodwaters have begun to recede in key economic zones of Hat Yai in Songkhla, while other parts of the tourist district remain inundated.

The inner economic zones of Hat Yai were largely spared, with water levels in the U-Tapao and Rabainam Ror 1 canals falling about one metre below their banks. 

However, Phet Kasem Road leading to downtown Hat Yai was still flooded on Saturday morning. The inbound lanes were open to vehicles but the outbound lanes were closed starting from Hat Yai intersection.

Motorists heading downtown were advised to use alternate routes via Big C-Khlong Hae, Khlong Wa and Sriphuwanart.

Hat Yai municipality on Saturday dispatched workers to clean roads in areas where floodwaters had receded.

However, neighbourhoods outside downtown, including Noppakao, Khuan Santi and Bangfaeb, remained flooded due to their proximity to canals.

The Meteorological Department said several areas in the South could expect more heavy rain and warned of more flash floods in affected areas.

Hat Yai shows signs of improvement, with floodwaters receding in some key economic areas on Saturday. However, other areas remain inundated. (Photo: Assawin Pakkawan)

Hat Yai shows signs of improvement, with floodwaters receding in some key economic areas on Saturday. However, other areas remain inundated. (Photo: Assawin Pakkawan)

Several areas in Hat Yai are still flooded. (Photo: Assawin Pakkawan)

People wade along a road in a flooded community in Hat Yai on Saturday. (Photo: Assawin Pakkawan)

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Floodwaters recede in Hat Yai’s economic areas

The flooding in Hat Yai shows signs of improvement, with floodwaters receding in economic areas on Saturday. However, other areas remain inundated. (Photo: Assawin Pakkawan)
The flooding in Hat Yai shows signs of improvement, with floodwaters receding in economic areas on Saturday. However, other areas remain inundated. (Photo: Assawin Pakkawan)

SONGKHLA — Floodwaters have begun to recede in the economic zones of Hat Yai, while other parts of the tourist district remain inundated.

Flooding conditions improved in Hat Yai on Saturday, particularly in the outer economic areas, as water levels continued to drop.

The inner economic zones of Hat Yai were largely spared from flooding, with water levels in U-Tapao and Rabainam Ror 1 canals falling about one metre below their banks. 

However, Phet Kasem Road leading to downtown Hat Yai is still flooded. The inbound lanes are open to vehicles, but the outbound lanes are closed starting from Hat Yai intersection. Motorists heading downtown are advised to use alternative routes via Big C-Khlong Hae, Khlong Wa and Sriphuwanart.

Hat Yai municipality on Saturday dispatched workers to clean roads in areas where floodwaters had receded.

However, neighbourhoods outside downtown Hat Yai, including Noppakao, Khuan Santi and Bangfaeb, remain flooded due to their proximity to canals.

Several areas in Hat Yai are still flooded. (Photo: Assawin Pakkawan)

A flooded community in Hat Yai district of Songkhla province on Saturday. (Photo: Assawin Pakkawan)

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Crypto boss eats banana artwork bought for .2m

Getty Images Justin Sun eating the banana Getty Images

A Chinese-born cryptocurrency entrepreneur has followed through on his promise to eat the banana from a $6.2m (£4.9m) artwork he bought last week.

Justin Sun outbid six others to claim Maurizio Cattelan’s infamous 2019 work Comedian – a banana duct-taped to a wall – at Sotheby’s auction house in New York.

He ate the fruit during a news conference in Hong Kong where he used the moment to draw parallels between the artwork and cryptocurrency.

The banana is regularly replaced before exhibitions, with Mr Sun buying the right to display the installation along with a guide on how to replace the fruit.

It has been eaten twice before – first by a performance artist in 2019 and again by a South Korean student in 2023 – but neither paid any money to do so, let alone $6.2m.

“Eating it at a press conference can also become a part of the artwork’s history,” Mr Sun said.

“It’s much better than other bananas,” he added.

The 34-year-old said he was intrigued by the work, admitting he had “dumb questions” about whether the banana rotted.

The New York Times reported a fresh banana was bought for 35 cents on the day of last week’s auction, before becoming possibly one of the most expensive fruits in the world.

Each attendee at the event on Friday was given a banana and a roll of duct tape as a souvenir.

“Everyone has a banana to eat,” Mr Sun said.

Getty Images Mr Sun stood with two people dressed as auctioneers, beside a banana duct-taped to a wallGetty Images

Mr Sun runs the Tron blockchain network – a service where users can trade in cryptocurrency.

Cryptocurrencies are digital currencies that operate independent of banks, offering the potential of very secure decentralised transactions.

Mr Sun compared the artwork, and other abstract pieces like it, to NFTs.

These “non-fungible tokens” are pieces of digital artwork that have no intrinsic value, other than that prescribed by people.

NFTs can be traded on platforms like Mr Sun’s.

Last year, he was charged by the US Securities and Exchange Commission for offering and selling unregistered security tokens. Mr Sun denies the charges and the case is ongoing.

This week, Mr Sun disclosed he made a $30m investment in a crypto project backed by US President-elect Donald Trump.

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