Russia cuts gas flows further as Europe makes savings plea - Reuters

FRANKFURT/LONDON, July 27 (Reuters) - Russia delivered less gas to Europe on Wednesday in a further escalation of an energy stand-off between Moscow and the European Union that will make it harder, and costlier, for the bloc to fill up storage ahead of the winter heating season.

The cut in supplies, flagged by Gazprom (GAZP.MM) earlier this week, has reduced the capacity of Nord Stream 1 pipeline - the major delivery route to Europe for Russian gas - to a mere fifth of its total capacity.

Nord Stream 1 accounts for around a third of all Russian gas exports to Europe.

On Tuesday, EU countries approved a weakened emergency plan to curb gas demand after striking compromise deals to limit cuts for some countries, hoping lower consumption will ease the impact in case Moscow stops supplies altogether. read more

The plan highlights fears that countries will be unable to meet goals to refill storage and keep their citizens warm during the winter months and that Europe's fragile economic growth may take another hit if gas will have to be rationed. read more

Royal Bank of Canada analysts said the plan could help Europe get through the winter provided gas flows from Russia are at 20-50% capacity, but warned against "complacency in the market European politicians have now solved the issue of Russian gas dependence."

While Moscow has blamed the delayed return of a serviced turbine and sanctions for the supply cuts, Brussels has accused Russia of using energy as a weapon to blackmail the bloc and retaliate for Western sanctions over its invasion of Ukraine.

Gazprom deputy CEO Vitaly Markelov said the company has still not received a Siemens turbine used at Nord Stream 1's Portovaya compressor station that has been undergoing servicing in Canada. read more

Markelov said there were sanctions risks associated with the machinery, while Siemens Energy said Gazprom needed to provide customs documents to bring the turbine back to Russia.

'SAVE GAS'

On Wednesday, physical flows via Nord Stream 1 tumbled to 14.4 million kilowatt hours per hour (kWh/h) between 1200-1300 GMT from around 28 million kWh/h a day earlier, already just 40% of normal capacity. The drop comes less than a week after the pipeline restarted following a scheduled 10-day maintenance period.

Pipes at the landfall facilities of the Nord Stream 1 gas pipeline are pictured in Lubmin, Germany, March 8, 2022. REUTERS/Hannibal Hanschke/

European politicians have repeatedly warned Russia could stop gas flows completely this winter, which would thrust Germany into recession and send prices for consumers and industry soaring even further.

The Dutch wholesale gas price for August , the European benchmark, were up 7% at 210 euros per megawatt hour on Wednesday, up around 400% from a year ago.

Germany, Europe's top economy and its largest importer of Russian gas, has been particularly hit by supply cuts since mid-June, with its gas importer Uniper (UN01.DE) requiring a 15 billion euro ($15.21 billion) state bailout as a result.

Italy, another major importer that typically gets 40% of gas from Russia, would face a gas supply crunch at the end of the coming winter if Russia were to totally halt supplies, Ecological Transition Minister Roberto Cingolani warned. read more

Uniper and Italy's Eni (ENI.MI) both said they received less gas from Gazprom than in recent days.

German finance minister Christian Lindner said he was open to the use of nuclear power to avoid an electricity shortage. read more

Germany has said it could extend the life of its three remaining nuclear plants that produce 6% of its power, if Russia were to cut it off from its gas.

Klaus Mueller, head of the country's network regulator, said Germany could still avoid a gas shortage that would prompt its rationing, while making another plea to households and industry to "save gas".

German industry groups, however, have warned companies may have no choice but cut production to achieve bigger savings, pointing to slow approval for replacing natural gas with other, more polluting fuels. read more

Mercedes-Benz (MBGn.DE) chief executive Ola Kaellenius said a mixture of efficiency measures, increased electricity consumption, lowering temperatures in production facilities and switching to oil could lower gas use by up to 50% within the year, if necessary.

Germany is currently at Phase 2 of a three-stage emergency gas plan, with the final phase to kick in once rationing can no longer be avoided.

($1 = 0.9862 euros)

Reporting by Paul Carrel and Rachel More in Berlin, Christoph Steitz in Frankfurt and Nina Chestney in London; additional reporting by Angelo Amante in Rome and Reuters bureaux; editing by Elaine Hardcastle and Tomasz Janowski

Our Standards: The Thomson Reuters Trust Principles.

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2022-07-27 11:18:00Z
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Pelosi Taiwan visit: Beijing vows consequences if US politician travels to island - BBC

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US House of Representatives Speaker Nancy Pelosi's rumoured plan for a trip to Taiwan has infuriated China and left the White House with a serious geopolitical headache. How big a problem is this?

China has warned of "serious consequences" if Mrs Pelosi were to proceed with her visit.

Second in line to the presidency, Mrs Pelosi would be the highest ranking US politician to travel to the island since 1997.

This rankles China, which sees self-ruled Taiwan as a breakaway province that must become a part of the country. Beijing has not ruled out the possible use of force to achieve this.

Even the Biden administration has reportedly tried to dissuade the California Democrat from going.

Last week, President Joe Biden told reporters "the military thinks it's not a good idea", but his White House has called Chinese rhetoric against any such trip "clearly unhelpful and not necessary".

The state department says Mrs Pelosi has not announced any travel and the US approach to Taiwan remains unchanged.

While the US maintains what is calls a "robust, unofficial relationship" with Taiwan, it has formal diplomatic ties with China, and not Taiwan.

Ms Pelosi's trip, if it were to happen, also comes amid increased tensions between Washington and Beijing - and ahead of a much anticipated phone call between US President Joe Biden and Chinese leader Xi Jinping.

Why would Pelosi want to visit Taiwan?

There is strong bipartisan support for Taiwan among the American public and in the US Congress.

And over a congressional career spanning 35 years, Speaker Pelosi has been a vocal critic of China.

• Are the US and China heading to war over Taiwan?
• US watching China very closely on Taiwan - General

She has denounced its human rights record, met with pro-democracy dissidents, and also visited Tiananmen Square to commemorate victims of the 1989 massacre.

Mrs Pelosi's original plan was to visit Taiwan in April, but it was postponed after she tested positive for Covid-19.

She has declined to discuss details of the trip, but said last week that it was "important for us to show support for Taiwan".

Why does China oppose the visit?

Beijing views Taiwan as its territory, and has repeatedly raised the spectre of annexing it by force if necessary.

• What's behind the China-Taiwan divide?
• China and Taiwan: A really simple guide

Chinese officials have expressed anger over what they view as growing diplomatic engagement between Taipei and Washington. This includes a surprise visit to the island by six US lawmakers in April.

On Monday, Chinese foreign ministry spokesman Zhao Lijian warned his country would take "firm and resolute measures" if Mrs Pelosi went ahead with her visit.

"And the US will be responsible for all of the serious consequences," he said.

A spokesman of the Chinese ministry of defence seemed to suggest there could even be a military response.

"If the US side insists on going ahead, the Chinese military will never sit idle and will take strong measures to thwart any external interference and separatist attempts for 'Taiwan independence'," Colonel Tan Kefei told China Daily.

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Mixed signals

Rupert Wingfield-Hayes. BBC News, Taipei

If you are a small island state with few allies, not recognised by the United Nations, and threatened with invasion by a much larger and more powerful neighbour, then getting a visit by the third most powerful politician in the United States should be something you welcome. Right?

That's why the Taiwanese government is not about to tell the US House Speaker Nancy Pelosi to stay away.

Taiwan's President Tsai Ing-wen has long called for higher level engagement with the US. But there is also concern about why Ms Pelosi is coming now, and whether her trip could do more harm than good.

Three times in the last year President Joe Biden has said the US would intervene to support Taiwan in the event of a Chinese invasion, only to have his staff roll back his remarks - insisting there is no change in US policy.

When news of Ms Pelosi's trip to Taiwan was leaked, President Biden's response was not to give his support - but instead to say, "the department of defence thinks it's not a good idea".

In Beijing this looks like weakness. In Taipei it looks like confusion. What exactly is the US government policy towards the island?

Ms Pelosi is now 82 and expected to retire in the autumn. Is she coming here with a clear intent to offer real support, or is it a political stunt? It's all very unclear.

How might the trip escalate tensions?

At its party congress later this year, the Chinese Communist Party is set to re-elect Mr Xi to an unprecedented third term as president.

President Biden - who last spoke with President Xi in March - has said they will speak over the phone again in the next few days, on a range of topics including Taiwan and other "issues of tension".

The call comes as US officials warn of a Chinese military build-up in the Asia-Pacific region and "aggressive and irresponsible behaviour" in the South China Sea.

The threats of retaliation over Mrs Pelosi's visit have raised concerns over China's possible response.

When then-US Health Secretary Alex Azar flew to Taiwan in 2020, Chinese air force jets crossed over the mid-line of the Taiwan Strait - the narrow waterway between the island and its giant neighbour - within range of Taipei's missiles.

Last week, the former editor of China's state-run Global Times newspaper suggested a "shocking military response" may be in store for Mrs Pelosi.

"If Pelosi visits Taiwan, [People's Liberation Army] military aircraft will accompany Pelosi's plane to enter the island, making a historic crossing of the island by military aircraft from mainland for the 1st time," Hu Xijin wrote.

Until now, Washington's policy of "strategic ambiguity" has meant the US has been deliberately unclear about whether or how it would defend Taiwan in the event of a large scale attack on the island.

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2022-07-27 05:20:45Z
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Germany rethinks nuclear power exit due to threat of winter energy crunch - Financial Times

Germany is rethinking its plan to exit nuclear power by the end of the year, as concern increases that Russia’s moves to cut gas supplies could trigger a winter electricity crunch in Europe’s largest economy.

A U-turn on nuclear power would mark a big departure in German energy policy. It would be a particularly bitter pill for the Greens, a pillar of chancellor Olaf Scholz’s coalition government with roots in the country’s anti-nuclear movement.

A person close to the Greens leadership said the party had come to the conclusion that “all options should be on the table” in the event of an energy crunch. One of those options might be to extend the life of the Isar 2 nuclear station in Bavaria beyond its shutdown date of December 31.

The person said the extension would only be for a few months, and any decision would be contingent on the results of a stress test that is under way to determine whether Germany’s electricity supply can continue to function even “under aggravated conditions”.

The stress test is expected to show that Bavaria, in particular, could face problems with its winter electricity supply. The state, a key industrial centre, has relatively little wind and solar energy and relies heavily on gas and nuclear for electricity.

A spokesperson for Scholz said the chancellor would also wait for those findings before deciding on a course of action. The government would take the decision in a “completely ideology-free and open-minded way”, the spokesperson added.

The nuclear rethink underscores how Russia’s escalating economic war with the west has led to a new willingness among Germany’s political class to abandon a signature policy brought in to hasten the green transition.

The latest sign of the Kremlin’s willingness to weaponise its energy exports came on Monday when gas giant Gazprom warned that flows through the Nord Stream 1 pipeline would be cut to 33mn cubic meters from Wednesday — just a fifth of its capacity and half of current levels. European gas prices soared on the announcement, hitting five-month highs.

The energy crunch has forced Scholz’s government to take decisions that go against typical Green policy, including restarting some of Germany’s highly polluting coal-fired power stations. His coalition had said it wanted to phase out coal plants completely, “ideally” by the end of the decade.

Germany decided to abandon nuclear power in 2011, in the wake of the Fukushima disaster in Japan. The three nuclear facilities still in operation — Isar 2, Emsland and Neckarwestheim 2 — are all due to close by the end of the year.

The government, made up of Scholz’s Social Democrats (SPD), the Greens and liberal Free Democrats (FDP), has stuck to its planned timetable for the nuclear phaseout even after Russia invaded Ukraine.

Green economy minister Robert Habeck has insisted Russian gas was largely used to heat homes and in industry — with nuclear playing no role in either. Greens have also stressed that the three nuclear plants accounted for just 6 per cent of electricity produced in Germany in the first quarter, much less than gas at 13 per cent.

But with many consumers switching from gas to alternative forms of energy, experts say electricity demand will grow — and nuclear could help plug the demand gap.

Pressure for a rethink on nuclear has been growing within and outside the government, with the FDP and opposition Christian Democrats demanding a reprieve for the three nuclear plants.

Even prominent Greens have shown flexibility on the issue. Katrin Göring-Eckardt, the Green deputy speaker of parliament, on Sunday said Bavaria had a “special problem” that could be addressed by allowing Isar-2 to continue operating beyond the end of the year.

Franziska Brantner, another influential Green who is a state secretary in the economy ministry, also implied in a TV interview that Germany might need to keep its nuclear plants running out of “solidarity” with France, which has been forced to shut many of its reactors because of corrosion problems and to import power from its neighbours.

Additional reporting by Valentina Pop in Brussels

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2022-07-26 17:23:35Z
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Russia to withdraw from International Space Station after 2024 - Sky News

Russia has said it will withdraw from the International Space Station (ISS) after 2024 to focus on building its own orbital outpost.

Yuri Borisov, who was appointed to lead the state-controlled space corporation Roscosmos earlier this month, said during a meeting with President Vladimir Putin that Russia would fulfil its obligations to other partners before it leaves the project.

Mr Borisov said, "the decision to leave the station after 2024 has been made".

The US, however, says no such move has been communicated to NASA.

It comes amid continued tensions between Moscow and the West over the war in Ukraine.

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In April, Mr Borisov's predecessor, Dmitry Rogozin, said Russia would halt co-operation on the ISS in response to the sanctions imposed on Russia over the invasion of Ukraine.

He argued the sanctions were designed "to kill the Russian economy, plunge our people into despair and hunger, and bring our country to its knees" and said normal relations could only be restored with the unconditional lifting of the "illegal" measures.

More on International Space Station

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Despite heightened tensions, NASA and Roscosmos agreed earlier this month for astronauts to continue riding Russian rockets and for cosmonauts to catch lifts to the ISS with SpaceX beginning in autumn.

The agreement will ensure the space station will always have at least one American and one Russian on board to keep both sides of the orbiting outpost running smoothly, NASA and Russian officials said.

Earlier this year, NASA published plans for the ISS which could see the 444,615kg structure taken out of orbit in January 2031 and crashed into a "spacecraft cemetery".

It said the laboratory would continue operating until 2030, but its long-term future is unsustainable.

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2022-07-26 12:36:15Z
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Spiked alcohol in western India causes more than 20 deaths, while at least 30 others fall ill - Sky News

Some 21 people have died in India after drinking spiked alcohol, officials have said.

The deaths occurred in the Ahmedabad and Botad districts of Gujarat state in the west of India, according to senior government official Mukesh Parmar, where the manufacture, sale and consumption of alcohol is strictly forbidden.

A further 30 people have fallen ill as part of the same incident.

Press Trust of India said police in the area have detained people who they believe are bootleggers that were involved in selling of the spiked alcohol.

Local inspector general of police Ashok Yada told The Times of India: "A team from the forensic science laboratory and doctors are investigating the liquor content. We can confirm the cause of death only after getting the... post-mortem report."

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He added police are now raiding local liquor dens.

People dying after drinking illegally brewed alcohol is common place in India, where it is often laced with chemicals such as pesticides and sold at a low cost.

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It is a very profitable industry in India, as bootleggers pay no taxes and shift huge volumes of their products to often the poorest in society.

At least 120 people died in 2020 after drinking the tainted alcohol in the country's northern Punjab state.

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2022-07-26 09:13:49Z
CBMigAFodHRwczovL25ld3Muc2t5LmNvbS9zdG9yeS9zcGlrZWQtYWxjb2hvbC1pbi13ZXN0ZXJuLWluZGlhLWNhdXNlcy1tb3JlLXRoYW4tMjAtZGVhdGhzLXdoaWxlLWF0LWxlYXN0LTMwLW90aGVycy1mYWxsLWlsbC0xMjY1OTMxN9IBhAFodHRwczovL25ld3Muc2t5LmNvbS9zdG9yeS9hbXAvc3Bpa2VkLWFsY29ob2wtaW4td2VzdGVybi1pbmRpYS1jYXVzZXMtbW9yZS10aGFuLTIwLWRlYXRocy13aGlsZS1hdC1sZWFzdC0zMC1vdGhlcnMtZmFsbC1pbGwtMTI2NTkzMTc

Russia cuts gas deliveries to Europe via Nord Stream 1 - Financial Times

Russia will slash gas supplies through its largest pipeline to Germany to just a fifth of capacity later this week in a move that threatens to leave the continent short of critical supplies ahead of the winter.

State-owned energy group Gazprom said it would cut existing flows on the Nord Stream 1 pipeline in half to just 20 per cent of capacity from Wednesday, having already lowered them to 40 per cent last month. European politicians have decried Russia’s “weaponisation” of gas supplies.

The Gazprom move came as German business confidence fell to its lowest level for more than two years in the latest sign that Europe’s largest economy is teetering on the brink of recession.

Companies across Germany became more gloomy about their current predicament and the outlook for the next six months, according to the Ifo Institute’s closely watched index of business confidence. Second-quarter gross domestic product figures out on Friday are expected to show growth of only 0.1 per cent, according to economists polled by Reuters.

Germany has been hard hit by inflation and the Russian gas crisis. Gazprom has blamed the availability of turbines for its cuts to supply but a spokeswoman for Germany’s economy ministry said there was “no technical reason” for the reduction.

European capitals will interpret Gazprom’s action as Russian retaliation for sanctions imposed after its invasion of Ukraine. Europe is struggling to fill gas storage facilities, leading to warnings of rationing for industry and concerns about shortages for domestic users.

Tom Marzec-Manser at consultancy ICIS said if the latest Russian supply cuts were to last they would require further efforts from European governments “to incentivise demand reductions, especially from the industrial sector”.

Gazprom has put the volume cuts down to problems with turbines maintained by Germany’s Siemens Energy at a factory in Canada. However, Berlin and gas market analysts say Russia is using the issue of turbine repairs as a pretext for cutting flows.

European politicians and industry analysts have questioned whether any such problems would cause so steep a drop in gas flows. Russia has also declined to use alternative pipeline routes to maintain supplies.

Laurent Ruseckas, an analyst at S&P Global Commodity Insights, said Gazprom’s move fitted a “pattern that has been on display for months and months, which is continuing reductions of pipeline flows to keep supplies tight and complicate storage”.

European gas prices shot higher after Gazprom signalled that the volume of gas flowing to the continent would be cut. They rose 10 per cent on Monday to trade at €177 per megawatt hour — five times higher than the price a year ago.

Gas flows will drop to 33mn cubic metres a day of gas from 4am GMT on Wednesday, Gazprom said, down from a full capacity of more than 160mn cubic metres and half of current flows. The group resumed partial gas supplies through NS1 last week after a planned outage for repairs.

Russia’s gas monopoly on Monday said it was cutting the flow because it was halting another turbine for maintenance, following through on a threat from president Vladimir Putin last week to slash volumes.

There have been concerns in Europe that Russia will completely halt exports of gas, leading the European Commission to tell EU member states to cut their consumption by 15 per cent over the winter.

EU capitals have pushed back against the plan and ambassadors in Brussels have struggled to reach a deal that is due to be signed by energy ministers at an emergency meeting on Tuesday.

“There is no plan B,” a senior EU diplomat said about the importance of the gas reduction deal. “It is important for us to show the EU remains united in these difficult times and we are prepared for the worst-case scenarios.”

Gazprom blamed Siemens Energy, the turbine provider, for the problems. It said the company still had “open questions” about British and EU sanctions.

Canada this month waived sanctions restrictions on providing equipment to Gazprom in order to allow the return of the turbine to the company.

Additional reporting by Joe Miller in Frankfurt and Alice Hancock in London

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2022-07-25 17:13:48Z
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Myanmar: Military executes four democracy activists including ex-MP - BBC

Reuters

Four democracy activists have been executed by Myanmar's military in what is believed to be the first use of capital punishment in decades.

The four - including activist Ko Jimmy and lawmaker Phyo Zeya Thaw - were accused of committing "terror acts".

They were sentenced to death in a closed-door trial that rights groups criticised as being unjust.

Pro-democracy leader Aung San Suu Kyi was very sad after hearing the news, a source told the BBC's Burmese Service.

Ms Suu Kyi, the leader of the National League for Democracy (NLD) party, did not make any comments, the source added. She was arrested in February 2021, following an army-led coup.

US Secretary of State Antony Blinken condemned the executions in Myanmar, which is also known as Burma.

"Such reprehensible acts of violence and repression cannot be tolerated. We remain committed to the people of Burma and their efforts to restore Burma's path to democracy," he tweeted.

Family members of the deceased gathered at Insein prison on Monday desperate for information on their loved ones.

The mother of Zayar Thaw says she was not told when exactly her son would be executed, adding that she was unable to make proper traditional funeral plans as a result.

"When we met on Zoom last Friday, my son was healthy and smiling. He asked me to send his reading glasses, dictionary and some money to use in prison, so I brought those things to the prison today," Khin Win May told the BBC's Burmese Service. "That's why I didn't think they would kill him. I didn't believe it."

Meanwhile, the sister of Ko Jimmy - whose real name is Kyaw Min Yu - had earlier said they were yet to receive the bodies.

The families have all submitted applications for information on the executions.

State news outlet Global News Light of Myanmar said the four men were executed because they "gave directives, made arrangements and committed conspiracies for brutal and inhumane terror acts".

• Who are the rulers in Myanmar who executed the activists?

It said they had been charged under the counter terrorism laws, but did not say when or how they were executed.

The executions are the first since 1988, according to the United Nations. Previous executions in Myanmar have been by hanging.

In 2021, the country's military seized power, an event which triggered widespread demonstrations, prompting a military crackdown on pro-democracy protesters, activists and journalists.

'Shocked and saddened'

News of the killing was met with intense criticism from opposition groups and human rights organisations.

"I am outraged and devastated at the news of the junta's execution of Myanmar patriots and champions of human rights and democracy," said UN Special Rapporteur on Human Rights in Myanmar Tom Andrews. "These depraved acts must be a turning point for the international community."

The shadow National Unity Government of Myanmar (NUG) said they were "extremely shocked and saddened" by the killings.

The NUG - a group which comprises pro-democracy figures, representatives of armed ethnic groups and former lawmakers that was formed in response to the 2021 military coup - urged the international community to "punish (the) murderous military junta for their cruelty and killings".

Who were the accused?

Ko Jimmy, 53, was a veteran of the 88 Generation Students Group - a Burmese pro-democracy movement known for their activism against the country's military junta in the 1988 student uprisings.

He, alongside his wife, fellow activist Nilar Thein, were considered some of the pioneers of the pro-democracy movement.

When monks led protests against the regime in 2007, Ko Jimmy and his wife mobilised activists and protesters from the 1988 demonstrations to participate.

He served multiple stints in prison for his activism, before being released in 2012.

He was arrested in October last year after being accused of hiding weapons and ammunition at an apartment in Yangon and being an "adviser" to the National Unity Government.

Phyo Zeya Thaw, 41, was a former hip-hop star turned NLD lawmaker.

His band Acid released Myanmar's first ever hip-hop album, with his lyrics carrying thinly-veiled attacks on the military drawing the ire of the junta.

He gradually became a close ally of pro-democracy icon Aung San Suu Kyi, and often accompanied her on her international meetings with world leaders.

He was arrested in November for alleged anti-terror offences.

Reuters

Both Phyo Zeya Thaw and Ko Jimmy lost their appeals against their sentences in June.

Less is known about the two other activists - Hla Myo Aung and Aung Thura Zaw. They were sentenced to death for killing a woman who was an alleged informer for the junta.

The military has claimed the results of a general election that saw Suu Kyi's political party winning by a landslide were rigged - an accusation election commission officials denied, saying there was no evidence of fraud.

Since the coup, Suu Kyi has been detained under house arrest, and slapped with a litany of charges ranging from corruption to violating the country's official secrets act, which could see her serving a sentence of up to 150 years.

The Assistance Association for Political Prisoners (AAPP), which keeps a toll of those killed, jailed or detained by the military, says that 14,847 people have been arrested since the coup, with an estimated 2114 having been killed by military forces.

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2022-07-25 16:07:58Z
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