Welcome back to World Brief, where we’re looking at Russia’s attendance at key international conferences, how renewed conflict in Iran sparked a global bond sell-off, and the fallout of Zambia’s disputed presidential election.
The Kremlin Refuses to Be Sidelined
Russian forces launched a sixth straight day of missile and drone strikes at the Ukrainian capital and its surrounding areas on Tuesday, killing at least 12 people in attacks that damaged residential homes. At the same time, several high-ranking Kremlin officials participated in a slew of global conferences focused on advancing Moscow’s economic and diplomatic agendas.
Welcome back to World Brief, where we’re looking at Russia’s attendance at key international conferences, how renewed conflict in Iran sparked a global bond sell-off, and the fallout of Zambia’s disputed presidential election.
The Kremlin Refuses to Be Sidelined
Russian forces launched a sixth straight day of missile and drone strikes at the Ukrainian capital and its surrounding areas on Tuesday, killing at least 12 people in attacks that damaged residential homes. At the same time, several high-ranking Kremlin officials participated in a slew of global conferences focused on advancing Moscow’s economic and diplomatic agendas.
Russia’s ability to engage with the international community at the highest levels despite its continued war against Ukraine signals that Moscow has managed to avoid becoming the global pariah that many Western powers have advocated for.
Nowhere was this more obvious than in Asheville, North Carolina, where U.S. Treasury Secretary Scott Bessent met with Russian Finance Minister Anton Siluanov on Monday on the sidelines of the G-20 finance ministers’ meeting. This was the first time that Moscow’s top financial official attended the global gathering in person since the Russia-Ukraine war began in February 2022.
Axios reported on Monday that the two officials discussed U.S. President Donald Trump’s Russia-Ukraine peace proposal, opportunities for economic growth, and G-20 engagement. Although Bessent reportedly ruled out economic relief for Russia while the war continues, many European countries were unhappy with Washington’s decision to invite the Kremlin. “We do not trust Russia,” Polish Finance Minister Andrzej Domanski told Reuters. “They lie constantly, and you need to be really, really cautious while discussing with them.”
European Union economy chief Valdis Dombrovskis stressed that “we do not think now is the time to normalize Russia” or its presence at the G-20. And German Finance Minister Lars Klingbeil said he’d assured his European colleagues that he would not pose for a photo with the Russian finance minister.
But Moscow refuses to be sidelined. The Kremlin also had a prominent presence at this week’s Shanghai Cooperation Organization (SCO) summit, further cementing its partnerships with key U.S. allies and adversaries, including China, India, Pakistan, and Iran, and bolstering Moscow’s efforts to challenge Western hegemony on the world stage. On Tuesday, Russian President Vladimir Putin jointly signed the summit’s “Bishkek Declaration,” which condemns U.S. and Israeli military action against Iran and its proxies as well as denounces Western sanctions on some of the SCO’s members, including Russia.
After the SCO summit, Russia then turned its attention to the Eastern Economic Forum. Hosted in the Russian city of Vladivostok, the conference welcomed delegations on Tuesday from 80 countries to discuss ways to foster greater trade among Asia-Pacific nations, attract foreign investment, and improve quality of life. Of the VIP guests, Indonesian President Prabowo Subianto’s attendance signaled Russia’s growing interest in Southeast Asia.
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What We’re Following
Global bond sell-off. Government bond yields hit record highs on Tuesday, as renewed fighting between U.S. and Iranian forces reignited worldwide inflation concerns. Notably, Japan’s 10-year and two-year benchmarks jumped to 3 percent and 1.81 percent, respectively, for the first time since 1996. And in the United Kingdom, 10-year bonds rose more than 9 basis points to their highest level since the 2008 global financial crisis. Germany and France also recorded significant government bond jumps.
Economists point to ballooning government debts, high costs of living, and rising energy prices due to the Iran war as the main causes of the global bond sell-off. On Tuesday, Brent crude exceeded $92 per barrel, while West Texas Intermediate reached more than $88 per barrel, and European natural gas prices reached their highest level since March.
Speaking on the sidelines of the G-20 finance ministers’ meeting, Bessent tried to downplay the global bond sell-off and defend Washington’s decision to intervene in the market last month. “The U.S. bond market has been the best performing market since the president came in,” Bessent said. Yields on 30-year Treasuries are currently close to their highest level in 19 years.
Inauguration amid arrests. Zambian President Hakainde Hichilema was sworn in on Tuesday for a second, five-year term, following a disputed Aug. 13 election marred by a government-led crackdown against the opposition. Yet several African leaders—including Kenyan President William Ruto, Botswanan President Duma Boko, and Zimbabwean President Emmerson Mnangagwa—attended Hichilema’s inauguration, granting foreign support for the election’s results.
While votes were still being counted on election night, security forces launched a raid on the home of Hichilema’s main challenger, Brian Mundubile, arresting 11 people that authorities claim were “in possession of high-grade military weapons, ammunition and other materials for use in armed insurrection.” Opposition party member and former Transportation Minister Mutotwe Kafwaya was fatally shot during the operation. The raid forced Mundubile and his running mate, Makebi Zulu, to go into hiding at a United Nations building. However, after Hichilema put pressure on the U.N. to turn them over, Mundubile and Zulu surrendered to police, upon which they were arrested on treason charges.
On Aug. 18, Zambia’s electoral commission declared Hichilema the winner, with around 60 percent of the vote versus Mundubile’s roughly 38 percent. Mundubile rejected the results, citing alleged voting irregularities. But the courts would not accept Mundubile’s legal challenge, as they were sealed off from accepting petitions.
Taipei’s seat at the table. China condemned Taiwan’s attendance on Tuesday at the Pacific Islands Forum, arguing that the island does not qualify for participation. “The Taiwan authorities sent [Taiwanese Foreign Minister] Lin Chia-lung and other Taiwan independence separatists to make sneaky visits around in a vain attempt to attract eyeballs and attention, and the result can only be inviting disgrace upon themselves,” Chinese Foreign Ministry spokesperson Guo Jiakun said. Qian Bo, China’s special envoy for Pacific Island affairs, added that “there will always be consequences” for Taiwan’s involvement. “It’s not a threat.”
Beijing does not recognize Taipei’s sovereignty, and in recent years, it has made substantial headway in pressuring other Asia-Pacific nations to abandon diplomatic relations with Taiwan. Only three Pacific Island countries maintain formal ties with Taiwan: the Marshall Islands, Tuvalu, and Palau, the last of which is hosting this week’s summit.
It is unclear what China’s threatened consequences might entail. However, the forum’s 18 permanent members appear committed to Taiwan’s involvement, which will include attendance at meetings and side events as a development partner. “The Pacific Islands Forum determines what happens here, not any other country,” Australian Prime Minister Anthony Albanese said on Tuesday in response to China’s remarks.
Odds and Ends
It’s the end of an era. After leading Argentina to the 2026 FIFA World Cup final this summer, 39-year-old soccer star Lionel Messi announced his retirement from international soccer on Monday. “It was a decision that hurt—and still hurts deeply—but I understand that the time has come,” Messi wrote in a letter posted on Instagram. The letter was originally dated July 21, two days after the World Cup concluded, but Messi said he chose to hold off publishing it while his father suffered from health issues; his father, Jorge, died on Aug. 8.
Messi’s 21-year legacy includes 207 games and 125 goals at the international level, making him the world’s No. 2 scorer behind longtime rival Cristiano Ronaldo. Messi will continue to play at club level with Inter Miami.
