Putin Slams Russian mercenary revolt as ‘treason’: Weekend Reads

Putin vows harsh response to Russian mercenary revolt [View in browser]( [Bloomberg]( Russian President Vladimir Putin accused forces loyal to the Wagner [mercenary group]( that’s fought in his invasion of Ukraine of staging a rebellion that amounted to “treason.” “This is a blow to Russia, to our people, and our actions to protect the Fatherland from such a threat will be harsh,” Putin said in a televised address Saturday. Wagner leader Yevgeny Prigozhin said his paramilitary group [won’t surrender]( to demands from Putin or the security services. China said US President Joe Biden had made a “[public political provocation](” by referring to his Chinese counterpart, Xi Jinping, as a dictator, as fresh tensions emerged in bilateral relations. Biden and Indian Prime Minister Narendra Modi announced a series of [defense and commercial deals]( designed to improve military and economic ties between their nations during Thursday’s state visit at the White House. Delve into these and other top stories in this edition of Weekend Reads. —[Karl Maier]( Prigozhin in Rostov-on-Don, Russia, on Saturday. Source: Prigozhin Press Service/AP Photo Check out the latest [Washington Edition newsletter](. You can [sign up]( to get it in your inbox every weekday. And if you are enjoying this newsletter, sign up [here](. What Is Russia’s Wagner Group and Why Is It Accused of Mutiny?Tension between Prigozhin and Russia’s defense establishment [exploded in dramatic fashion](, with the mercenary chief saying Defense Minister Sergei Shoigu had orchestrated a missile attack that killed “huge” numbers of his fighters. Sybilla Gross lays out the origins of the rebellion that has become the biggest test of Putin’s authority since he invaded Ukraine. Wagner group soldiers patrol in Rostov-on-Don on Saturday. Photographer: AFP/Getty Images Russian War Economy Is Awash With Bags of Cash Kept Out of Banks Mercenaries killed in Ukraine are inadvertently helping stoke [a new cash boom]( back in Russia. Money paid in compensation for their deaths — which adds up to 5 million rubles ($60,000) per person, on top of any uncollected wages — usually comes stuffed in bags. Raw But Ready to Fight: Ukraine Sends National Guard to Front Even with new weapons and training from allies in the US and Europe, Ukraine’s forces are [struggling to advance]( against Russian troops that have spent months digging into defensive positions across the territory. Marc Champion reports on how Kyiv is turning to its National Guard to counter a new Russian push in the east. Biden’s ‘Dictator’ Xi Riff Undercuts Painstaking China Diplomacy A day after US Secretary of State Antony Blinken left China with a joint commitment to ease tensions with Beijing, Biden undercut him with an off-the-cuff remarks likening Xi to a “dictator” and appearing to question the Chinese leader’s control over the country and the military. As Peter Martin writes, the comments [risk wiping away]( the symbolic progress from talks that both sides described the previous day as candid and constructive. - The European Union and its member states are [edging closer]( to the US strategy of avoiding over-dependence on China and curtailing the advance of its military capabilities. As West Battles China, a Trade Ally Tries to Keep Both Doors Open A burgeoning industrial zone outside the Moroccan city of Tangier powered by investment from companies from Europe, the Middle East, China, Japan and the US offers a [prime example]( of how the North African nation is trying to navigate an increasingly polarized world, as Brendan Murray reports. Silicon Valley CEOs Get Biden, Modi Pitch to Invest in India Biden and Modi met with some of the most powerful executives in Silicon Valley at the White House on Friday, as they sought to boost economic cooperation on artificial intelligence and advanced manufacturing. Justin Sink and Jennifer Jacobs write that Washington is increasingly courting India as [a key ballast](against China. Modi and Biden during a state dinner at the White House. Photographer: Al Drago/Bloomberg Best of Bloomberg Opinion This Week - [Water Risks Are Coming to Bite Investors: Lara Williams]( - [The World Ignores Africa at Its Peril: Brooke Sample]( - [Italy’s Not the Economic Basket Case You Thought: Lionel Laurent]( - [US and India Need to Deal With Their Trust Issues: Mihir Sharma]( - [China Wants to Buy Off Europe. The Price Is Too High: Minxin Pei]( Sunak Risks Failing on His Five Key UK Pledges at Halfway Point UK Prime Minister Rishi Sunak set five pledges he said would be the test of his performance: halve inflation, expand the economy, reduce the national debt, shrink National Health Service waiting lists and stop migrants crossing the English Channel. So far, Alex Wickham and Andrew Atkinson write, [he is failing]( to meet his targets. Five Takeaways From Paris Summit to Fix Global Climate Finance More than 40 world leaders spent two days in Paris discussing how to overhaul the global financial system to [tackle climate change](. Akshat Rathi and Natasha White outline five key outcomes. Turkey Demands Sweden Expel Kurd Suspects Before NATO Entry Turkey wants Sweden to begin [extraditing or expelling]( suspected Kurdish separatists before next month’s summit of the North Atlantic Treaty Organization to help win its support to join the security alliance, Selcan Hacaoglu reports. - Turkish President Recep Tayyip Erdogan and Israeli Prime Minister Benjamin Netanyahu [plan to meet]( as early as next month in Ankara as they try to improve their long-frosty relations, sources say. Ultra-Orthodox Move From Margins to Center of Israeli Politics Netanyahu’s far-right coalition includes a record seven ultra-Orthodox ministers, Ethan Bronner and Gwen Ackerman report. Once preoccupied solely with matters affecting their own, elected officials representing the Haredim, as they’re called, are [now advocating policies]( that affect all of society, including limits on the Supreme Court, gender segregation in public places and rollbacks on LGBTQ protections. Mass Immigration Gives Canada an Edge in Global Race for Labor As industrialized countries around the world confront declining birth rates and aging workforces, Canada is at the forefront of [betting on immigration]( to stave off economic decline. Randy Thanthong-Knight reports that for Prime Minister Justin Trudeau’s administration, the experiment is a way to broaden the labor market as global competition for skilled workers intensifies. Best of Bloomberg Explainers This Week - [EU Banks Expand Risk Scenarios They Face Due to Climate Change]( - [Unlocking Trillions for Climate in a Plan From a Sinking Island]( - [Why India Walks a Tightrope Between US and Russia]( - [Why US-China ‘Decoupling’ Prospect Is Getting SeriousÂ]( - [Greeks Vote Again With Investment Grade Close: What to Watch]( Backroom Deals Position Jokowi to Impact Indonesia for Decades Joko Widodo is positioning himself to become [a power broker]( in the world’s fourth-most populous nation potentially for decades when he steps down next year after serving his second and final term as Indonesia’s president. Faris Mokhtar and Chandra Asmara explain why he’s focused on maintaining influence by having a say in who succeeds him. World’s Empty Office Buildings Become Debt Time Bomb In New York to London, owners of gleaming office towers are walking away from their debt rather than pouring good money after bad. The landlords of downtown San Francisco’s largest mall have abandoned it, while in Hong Kong a new skyscraper is only a quarter leased. The [creeping rot inside commercial real estate]( is like a dark seam running through the global economy, and the trouble in property is set to play out for years. And finally … Rapidly melting glaciers in Asia’s Hindu Kush Himalayan region — home to the world’s highest mountains — are threatening the [lives and livelihoods]( of as many as 2 billion people by triggering floods, landslides and water shortages, the International Centre for Integrated Mountain Development says in a new study. The cascading effects threaten to upend agriculture, food security, fresh water availability and energy sources, it said. Clouds are seen above mountain glaciers in this aerial photograph taken from an airplane over Leh district, Jamma and Kashmir, India, in November 2019.  Photographer: Prashanth Vishwanathan/Bloomberg Follow Us Like getting this newsletter? 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