LXC POLITICS

By John O'Donnell and Oliver Hirt VADUZ, Liechtenstein (Reuters) -Liechtenstein is examining tightening control of scores of Russian-linked trusts abandoned by their managers under pressure from Washington, according to several people familiar with the matter. The country, one of the world's smallest and richest, is home to thousands of low-tax trusts, hundreds of which have links to Russians, two of the people with direct knowledge of the matter said, putting it in the crosshairs of Western efforts to sanction Moscow. Since Russia's invasion of Ukraine, the U.S. Treasury has sanctioned several individuals and trusts in Liechtenstein it said were linked to Russian oligarchs, including Vladimir Potanin, and a long-time ally of Russian President Vladimir Putin, Gennady Timchenko. The U.S. Treasury had no immediate comment. Potanin's Interros holding company did not respond to a request for comment, while Timchenko could not be reached. That sanctioning has prompted other directors fearing such punishment to quit hundreds of Russian-linked trusts, according to several people familiar with the matter, exposing a far wider problem with Russian money in the tiny country with a population of about 40,000. The episode, in a sleepy Alpine enclave ruled by a billionaire royal family, also shows how deep and opaque Russia's business ties to Europe remain more than three years after Russia's invasion of Ukraine. It is a setback for the microstate that had long sought to shed its image as a safe haven for foreign wealth. The mass resignations have put scores of trusts in limbo, essentially freezing swathes of Russian wealth. The trusts are the linchpin for fortunes, including yachts or property, that are scattered around the globe. Their suspension puts that property beyond reach, a further potential lever over Russia, amid attempts by U.S. President Donald Trump to strike a peace deal. Reuters has spoken to several people with direct knowledge of these events, who asked not to be identified because of the sensitivity of the matter. They outlined how a push by Washington had led scores of directors to quit trusts with links to Russia and how the government was scrambling to resolve the crisis. Liechtenstein's newly elected government is seeking to fix the issue, according to people familiar with the matter, underscoring the continued pressure from Washington over Russia sanctions, despite U.S. President Donald Trump's earlier suggestions he could ease them. Liechtenstein also sees its handling of sanctions enforcement as something that could influence its government's efforts to lower newly imposed U.S. tariffs on exports, said one person with direct knowledge of the discussions. A Liechtenstein government official said 475 trusts were affected by the defections, although added that not all were linked to Russians or sanctioned individuals. That official said Liechtenstein's justice department was seeking to install new managers to 350 trusts, while 40 were being liquidated and unsuccessful attempts had been made to appoint a liquidator to further 85 trusts. This episode strikes at the trust industry, a critical pillar of Liechtenstein's roughly 770 billion franc ($930 billion) financial centre that underpins the country's economy. Local banks, the government official said, were also affected, without elaborating. Banks are particularly vulnerable because the United States has the power to throttle them by cutting off their access to the dollar, threatening a wider crisis. The episode has confronted the country with its biggest crisis since 2008, when leaked customer data at LGT Bank, owned by the country's princely family, exposed widespread tax evasion. The government is now examining options to centralise the management of the deserted trusts under its watch and tightening supervision of trusts. The Liechtenstein official also said the country's authorities were in contact with their international counterparts and that no trust assets would be released to sanctioned individuals. Liechtenstein, sandwiched between Switzerland and Austria, is dominated by its royal family, whose castle towers over the parliament. It is tied closely to Switzerland, using its franc currency, but also enjoys freedom to do business in the European Union's single market. The country, criticised for hiding the fortunes of the wealthy in the past, had reformed and joined the International Monetary Fund. Once home to roughly 80,000 tax trusts, it now hosts about 20,000, said two people familiar with the matter - equivalent to roughly one trust for two residents. Pressure on Liechtenstein follows a similar push against neighbouring Austria and Switzerland. ($1 = 0.8273 Swiss francs) (Additional reporting by Reuters Moscow bureau, editing by Elisa Martinuzzi and Tomasz Janowski)

(Inserts missing word in paragraph 2) By Samia Nakhoul, Parisa Hafezi DUBAI (Reuters) -Saudi Arabia's defence minister delivered a blunt message to Iranian officials in Tehran last month: take President Donald Trump's offer to negotiate a nuclear agreement seriously because it presents a way to avoid the risk of war with Israel. Alarmed at the prospect of further instability in the region, Saudi Arabia's 89-year-old King Salman bin Abdulaziz dispatched his son, Prince Khalid bin Salman, with the warning destined for Iran's Supreme Leader Ayatollah Ali Khamenei, according to two Gulf sources close to government circles and two Iranian officials. Present at the closed-door meeting in Tehran, which took place on April 17 in the presidential compound, were Iranian President Masoud Pezeshkian, armed forces Chief of Staff Mohammad Bagheri and Foreign Minister Abbas Araqchi, the sources said. While media covered the 37-year-old prince's visit, the content of the King Salman's covert message has not been previously reported. Prince Khalid, who was Saudi ambassador to Washington during Trump's first term, warned Iranian officials that the U.S. leader has little patience for drawn-out negotiations, according to the four sources. Trump had unexpectedly announced just over a week earlier that direct talks were taking place with Tehran, aimed at curbing Iran's nuclear programme in return for sanctions relief. He did so in the presence of Israeli Prime Minister Benjamin Netanyahu, who had travelled to Washington hoping instead to win support for attacks on Iranian nuclear sites. In Tehran, Prince Khalid told the group of senior Iranian officials that Trump's team would want to reach a deal quickly, and the window for diplomacy would close fast, according to the four sources. The Saudi minister said it would be better to reach a deal with the U.S. than face the possibility of an Israeli attack if the talks broke down, according to the two Gulf sources. He argued that the region - already riven by recent conflicts in Gaza and Lebanon - could not withstand a further escalation in tensions, said the two Gulf sources and one senior foreign diplomat familiar with the discussions. Authorities in Saudi Arabia and Iran did not respond to requests for comment. The visit by Prince Khalid - the younger brother of Crown Prince Mohamed Bin Salman - was the first by a senior member of the Saudi royal family to Iran in more than two decades. Riyadh and Tehran had long been bitter rivals, often backing opposing sides in proxy wars, until a rapprochement brokered by China in 2023 helped to ease the tensions and restored diplomatic ties. Over the past two years, Iran's regional position has been undermined by heavy military blows inflicted by Israel on its allies Hamas in Gaza and Hezbollah in Lebanon, and toppling of its close ally, Syrian dictator Bashar al-Assad. Western sanctions, meanwhile, have hit its oil-dependent economy hard. Mohanad Hage Ali, an expert on Iran at the Carnegie Middle East Center think tank in Beirut, said that Tehran's weakness had offered Saudi Arabia the opportunity to exert its diplomatic influence, seeking to avoid a regional conflagration. "They want to avoid war because war and confrontation with Iran will have negative implications on them and their economic vision and ambitions," he told Reuters. IRAN WANTS A DEAL Reuters was unable to determine the impact of the prince's message on Iran's leadership. In the meeting, Pezeshkian responded that Iran wanted a deal to ease economic pressure through the lifting of Western sanctions, the four sources said. However, the Iranian officials, the sources added, expressed concerns over the Trump administration's "unpredictable" approach to negotiations — which have veered from allowing limited uranium enrichment to demanding the complete dismantling of Tehran's enrichment program. Trump also has threatened to use military force if diplomacy fails to rein in the clerical establishment's nuclear ambitions. One of the Iranian sources said that Pezeshkian emphasized Tehran's eagerness to reach a deal but that Iran was not willing to sacrifice its enrichment program just because Trump wanted an agreement. The ongoing talks between Washington and Tehran have already been through five rounds to resolve the decades-long nuclear dispute, but multiple stumbling blocks remain, including the key issue of enrichment. Reuters reported on Wednesday that Iran might pause uranium enrichment if the U.S. releases its frozen funds and recognises its right to refine uranium for civilian use under a "political deal" that could lead to a broader nuclear accord, according to two Iranian sources familiar with the talks. The semi-official Fars news agency in Iran quoted a foreign ministry spokesman denying the report. The White House did not directly address Reuters' questions about whether it was aware of the Saudi warning to Iran. "President Trump has made it clear: make a deal, or face grave consequences, and the whole world is clearly taking him seriously, as they should," White House press secretary Karoline Leavitt said in a statement. Trump said on Wednesday he warned Netanyahu last week not to take any actions that could disrupt nuclear talks with Iran, and said the two sides were "very close to a solution now". Israeli authorities did not respond to a request for comment. HIGH STAKES A four-day visit by Trump to the Gulf this month annointed Saudi Arabia as the most prominent member of a new axis of Sunni states in the Middle East, filling the void left by Iran's shattered alliance. During the trip, Saudi Crown Prince Mohamed Bin Salman mediated a reconciliation between Trump and Syria's new Sunni leader, Ahmed al-Sharaa. Tehran's regional sway, meanwhile, has been diminished by military setbacks suffered by Iran and its allies in the Shi'ite-dominated Axis of Resistance, which include Hamas, Hezbollah, the Houthis in Yemen, and Iraqi militias In the meeting, Prince Khalid urged Iran to rethink its regional policy, noting such a shift would be welcomed, especially by Riyadh, the sources said. Although he stopped short of directly blaming Iran, the Saudi minister voiced concern over a possible repeat of the 2019 drone attacks on the facilities of state oil company Aramco - attacks the kingdom attributed to Iran and its Houthi allies, despite Tehran's denial. Iranian officials maintained that while Tehran holds some influence over the Houthis, it does not fully control their actions, the Iranian sources said. Decades of hostility between the Shi'ite Iran and Saudi Arabia destabilised the Gulf and fuelled regional conflicts from Yemen to Syria. The 2023 detente was driven in part by Saudi Crown Prince Mohammed's economic ambitions and desire for stability, and has led to increased contacts between the governments. However, neither Saudi Arabia nor other regional powers see Iran as a dependable partner for peace and they fear its actions could jeopardize their ambitions for economic development, diplomats and regional experts say. Prince Khalid implored the Iranians to avoid actions by them and their allies that might provoke Washington, stressing that Trump's response would likely be more strident than his predecessors, presidents Joe Biden and Barak Obama. In turn, he assured Tehran that Riyadh would not let its territory or airspace to be used by the United States or Israel for any potential military action against Iran, the sources said. (Reporting by Samia Nakhoul and Parisa Hafezi in Dubai; Additional reporting by Matt Spetalnick in Washington; Writing by Samia Nakhoul; Editing by Daniel Flynn)

HONG KONG (AP) — Dozens of countries joined China on Friday in establishing an international mediation-based dispute resolution group. Representatives of more than 30 other countries, from Pakistan and Indonesia to Belarus and Cuba, signed the Convention on the Establishment of the International Organization for Mediation inHong Kongto become founding members of the global organization, following Chinese Foreign Minister Wang Yi. The support of developing countries signaled Beijing's rising influence in the global south amid heightened geopolitical tensions, partly exacerbated byU.S. President Donald Trump's trade tariffs. At a ceremony, Wang said China has long advocated for handling differences with a spirit of mutual understanding and consensus-building through dialogue, while aiming to provide "Chinese wisdom" for resolving conflicts between nations. "The establishment of the International Organization for Mediation helps to move beyond the zero-sum mindset of 'you lose and I win,'" he said. The body, headquartered in Hong Kong, aims to help promote the amicable resolution of international disputes and build more harmonious global relations, he said. Beijing has touted the organization as the world's first intergovernmental legal organization for resolving disputes through mediation, saying it will be an important mechanism in safeguarding the principles of the Charter of the United Nations. It also positioned Hong Kong as an international legal and dispute resolution services center in Asia. Wang said the city's rule of law is highly developed, with the advantages of both common law and mainland Chinese law systems, asserting that it possesses uniquely favorable conditions for international mediation. Hong Kong leader John Lee said the organization could begin its work as early as the end of this year. The ceremony was attended by representatives from some 50 other countries and about 20 organizations, including the United Nations. Yueming Yan, a law professor at the Chinese University of Hong Kong, said the new organization is a complementary mechanism to existing institutions such as the International Court of Justice and the Permanent Court of Arbitration in the Hague. "While the ICJ and PCA focus on adjudication and arbitration, IOMed introduces a structured, institutionalized form of alternative dispute resolution — namely, mediation — on a global scale," she said. Although many details about the new body are yet to be clarified, it could open the door for greater synergy between formal litigation or arbitration and more flexible methods like mediation, she said. Shahla Ali, a law professor at the University of Hong Kong, said the International Organization for Mediation would have the capacity to mediate disputes between states, between a state and a national of another state, or in international commercial disputes. "Conventions can provide opportunities to experiment with new approaches," she said, noting rising interest in mediation globally as a means to resolve investor-state disputes.

SINGAPORE (Reuters) -France could harden its position on Israel if it continues to block humanitarian aid to Gaza, French President Emmanuel Macron said on Friday, reiterating that Paris was committed to a two-state solution to resolve the Israel-Palestinian conflict. "The humanitarian blockade is creating a situation that is untenable on the ground," Macron said at a joint press conference in Singapore with Prime Minister Lawrence Wong. "And so, if there is no response that meets the humanitarian situation in the coming hours and days, obviously, we will have to toughen our collective position," Macron said, adding that France may consider applying sanctions against Israeli settlers. "But I still hope that the government of Israel will change its stance and that we will finally have a humanitarian response". Israeli Prime Minister Benjamin Netanyahu's government has hit back at growing international pressure over the war in Gaza, the deadliest fighting in decades of conflict between Israel and the Palestinians. Macron was in Singapore on a state visit and he will also deliver the keynote address at the Shangri-La Dialogue, Asia's premier security forum, which runs this year from May 30-June 1. Deep differences between Palestinian militant group Hamas and Israel have stymied previous attempts to restore a ceasefire that broke down in March. Under growing international pressure, Israel partially ended an 11-week long aid blockade on Gaza 10 days ago. It has allowed a limited amount of relief to be delivered via two avenues - the United Nations or the U.S.-backed Gaza Humanitarian Foundation. The French president said Paris is committed to working towards a political solution and reiterated his support for a two-state solution to the Israel-Palestinian conflict. Macron is leaning towards recognising a Palestinian state, diplomats and experts say, a move that could infuriate Israel and deepen Western splits. French officials are weighing up the move ahead of a United Nations conference, which France and Saudi Arabia are co-hosting between June 17-20, to lay out the parameters for a roadmap to a Palestinian state, while ensuring Israel's security. Israel launched its campaign in Gaza in response to a Hamas attack in its south on October 7, 2023, that killed some 1,200 people and saw 251 Israelis taken hostage into Gaza, according to Israeli tallies. The war since then has killed around 54,000 Palestinians, Palestinian health authorities say, more than in any other of the countless rounds of fighting between the two sides. (Reporting by Jun Yuan Yong, Fanny PotkinEditing by Shri Navaratnam and Raju Gopalakrishnan)

Comedian Nathan Fielder took a swing at the Federal Aviation Administration (FAA) on Thursday over a statement in which the agency pushed back on claims from his HBO show, "The Rehearsal." During a recent episode of "The Rehearsal," Fielder points to communication issues between an aircraft's captain and first officer as appearing "to be the number one contributing factor to aviation crashes in history." Fielder addressed his claims in a Thursday interview on CNN's "The Situation Room" with the outlet's Wolf Blitzer and Pamela Brown, highlighted by Mediaite, and called the FAA's statement pushing back against his comments "dumb." "We reached out to the FAA to see what it had to say about all of this, and it told us that it mandates all airline pilots and crew members to complete intrapersonal communication training, and it says it isn't seeing the data that supports the show's central claim that pilot communications is to blame for airline disasters. So, I want to get you to respond to that, obviously," Brown told Fielder. "That's dumb,"Fielder responded. "They're dumb, and they're — you know — they, here's the issue is that, they do — like I trained to be a pilot and I'm a [Boeing] 737 pilot. I went through the training. The training is someone shows you a PowerPoint slide saying, 'If you are a co-pilot and the captain does something wrong, you need to speak up about it.' That's all." In a statement to The Hill that an FAA official described as "addressing" claims that Fielder made in the docuseries about aircraft crew communication, the FAA said that it "requires all airline crewmembers (pilots and flight attendants) and dispatchers to complete Crew Resource Management training." The FAAhas described Crew Resource Managementas "generally defined as the effective use of all available resources: human resources, hardware, and information" The agency also said in the statement that it "analyzes data from a variety of sources such as an airline's Safety Management System (SMS), Aviation Safety Action Program (ASAP), and Voluntary Disclosure Reporting Program (VDRP)." "If these programs identify elevated risks, appropriate action is taken by both the airline and the FAA to mitigate the risk and ensure safety. The FAA does not have data which supports these claims," the agency added. Fielder, who sported a 737 hat during the CNN interview, is known for his comedy that tends to push boundaries and takes big swings, with the last episode of "The Rehearsal" featuring the comedian training to fly a Boeing 737. A "Nathan Joseph Fielder" is listed in a FAA registry asa commercial pilot. The Hill has reached out to the FAA about Fielder's comments. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to The Hill.