TIME Ukraine

Ukraine Ready to Hand MH17 Investigation Over to Dutch

Personnel from the Ukrainian Emergencies Ministry load the bodies of victims of Malaysia Airlines flight MH17 into a truck at the crash site on July 21, 2014 in Grabovo, Ukraine.
Personnel from the Ukrainian Emergencies Ministry load the bodies of victims of Malaysia Airlines flight MH17 into a truck at the crash site on July 21, 2014 in Grabovo, Ukraine. Brendan Hoffman—Getty Images

The Netherlands suffered the most fatalities in the downing of Malaysia Airlines flight from Amsterdam to Kuala Lumpur

Ukrainian Prime Minister Arseniy Yatsenyuk said Monday the country is prepared to let Dutch authorities take over the investigation into the downing of Malaysia Airlines Flight 17.

The deal to let the Dutch continue the investigation is an effort to end the standoff between the Ukrainian government and Russia-backed separatist groups over who can access the crash site.

“We are responding to the request of our Dutch partners. They launched the request. The Dutch people suffered the most,” Mr. Yatsenyuk said Monday, the Wall Street Journal reports. “This is the right thing to do. This is a humanitarian gesture. It will add more independence to the investigation.”

Dutch investigators began arriving in Eastern Ukraine on Monday, USA Today reports, to begin the grim task of inspecting the bodies of victims who have been moved to refrigerated train cars by the separatists.

The crashed flight from Amsterdam to Kuala Lumpur, which the U.S. says was shot down by Ukrainian rebels using weapons provided by Russia, left 298 people dead on Thursday, the majority of whom were from the Netherlands. Since the crash, the rebels who control the area have limited government access to the crash site for an official investigation. Over the weekend, rebel forces moved bodies and other evidence from the crash site.

The Dutch Safety Board told the WSJ Monday they were still in the process of discussing taking over the investigation. Experts from across the globe are also in the country with hopes of investigating the crash.

TIME

Gaza Official Says Israeli Shells Hit Hospital

Official said the shells killed at least four people and wounded 60, including 30 medical staff

(GAZA CITY, Gaza Strip) — Israeli tank shells struck a hospital in central Gaza on Monday, a health official and a doctor at the facility said. The health official said the shells killed at least four people and wounded 60, including 30 medical staff.

The Israeli military said it was looking into the report.

Health official Ashraf al-Kidra said 12 shells hit the Al Aqsa hospital in the town of Deir el-Balah. He said the shells landed in the administration building, the intensive care unit and the surgery department.

Live footage on Hamas’ Al Aqsa TV station showed wounded being moved on gurneys into the emergency department.

A doctor at the hospital, Fayez Zidane, told the station that shells hit the third and fourth floor as well as the reception area.

“There is still shelling against the hospital,” he said. He said he found bits of a rocket, presumably from one of the projectiles.

Zidane appealed to the Red Cross and a nearby hospital to send help.

TIME global health

Photos: How Muslim Families Around the World Break the Ramadan Fast

From Istanbul to Sydney to Beijing, here's what Muslim families are eating to break the fast

TIME

South African Park Considers Rhino Evacuation

(JOHANNESBURG) — Officials at Kruger park, South Africa’s flagship wildlife reserve, are considering a plan to move some rhinos out of the park in an attempt to protect them from poachers.

Kruger spokesman William Mabasa said Monday that no decision has been made on the plan. Mabasa says the idea would be to “spread the risk” to other reserves because the Kruger park is heavily targeted by poachers, many of whom cross from neighboring Mozambique.

The national parks service says about 560 rhinos have been poached in South Africa so far this year. Well over half were killed in Kruger park.

Rhino horn is worth a fortune on the illegal market in parts of Asia. Some Vietnamese and Chinese view it as a status symbol and a healing agent.

TIME Malaysia

Malaysians Want the Bodies of Their MH17 Dead Back Before the Ramadan Fast Ends

Zulrusdi bin Haji Mohamad Hol dressed for iftar dinner with other relatives of MH17 victims at Marriott Hotel in Putrajaya, Malaysia, on July 20, 2014. Zulrusdi's cousin was returning after a three-year work stint in Kazakhstan with his wife and four children on July 17, when the Malaysia Airlines plane they were traveling with was shot down midair over eastern Ukraine. Per Liljas

For relatives gathered at a hotel south of Kuala Lumpur, it's a heart-breaking waiting game

Update: This story was updated at 22:45 ET on July 22 to include an official quote on the correct handling of dead bodies in Islam.

Dusk settles and Malaysia comes together to break the daily fasting of Ramadan. Hundreds of people in elegant attire mill about the lavish iftar buffet at Marriott Hotel in Putrajaya, 25 km south of Kuala Lumpur. Two floors down, however, the mood is less festive. There, MH17 relatives gather around tables in one of the conference rooms and yearn for a completely different religious observance.

“We need to get the bodies home to expedite the burials,” says Zulrusdi bin Haji Mohamad Hol, whose cousin was on the plane together with his whole family. “Otherwise, how will our family members get peace?”

Four days after Malaysia Airlines flight 17 from Amsterdam to Kuala Lumpur was shot down over eastern Ukraine, pro-Russian rebels who control the area have piled almost 200 corpses into refrigerated boxcars and used cranes to move chunks of the downed aircraft. International investigators still have limited access to the crash site, and Western governments have condemned the separatists for tampering with the scene.

A rebel leader said Sunday that they will hand over the bodies to the International Civil Aviation Organization, yet that depends on an as yet nonexistent cooperation between rebels, the Ukraine government and international investigators. A government-appointed counselor at the Marriott says he has to shield relatives from media coverage from Ukraine. Zulrusdi has caught images of remains putrefying on the fields, and rebels carrying away bodies in plastic bags. International media has carried reports of victims’ luggage and personal belongings being rummaged through and possibly looted.

“I’m very angry,” Zulrusdi says. “They’re inhumane, they don’t understand. First they murder our relatives then they keep the corpses with them.”

Pressure is mounting on Russia to take a firmer role in securing the investigation and recovery of bodies. The U.S. has been particularly harsh in their allusions to Russian culpability. On Sunday, the embassy in Kiev stated that “MH17 was likely downed by a SA-11 surface-to-air missile from separatist-controlled territory in eastern Ukraine,” that Russia had sent “a convoy of military equipment” to the separatists over the weekend of July 12-13, and that Moscow had trained the rebels in the use of air defense systems.

However, officials in Malaysia have chosen a more cautious tone.

“Culpability is only the third priority of the Malaysian government,” says Bridget Welsh, senior research associate at the Center for East Asia Democratic Studies of the National Taiwan University. “It would be counterproductive for their goal of bringing back the bodies to take a harder position on Russia now.”

James Chin, professor of political science at Monash University, says that Prime Minister Najib Razak has put himself in a bind by promising to recover the bodies from MH17 before next week, when the fasting period of Ramadan ends.

“It will be almost impossible to do this, and it will show how powerless Malaysia is in a situation like this, involving big players like the U.S. and Russia,” he says.

A Malaysian team is currently in Ukraine to take care of the Muslim bodies, equipped with kafan, the ritual cloth that remains should be wrapped in.

“The way the bodies were handled by the separatist has not only made us angry but has saddened us,” Othman Mustapah, director general of the Department of Islamic Development, tells TIME. “Islam places great emphasis on respecting the dead body. Not only must burial rites be managed properly, with care and in a civilized manner, the bodies must be washed, wrapped in kafan and buried as soon as possible.”

Dr Mohammad Asri Zainul Abidin, former mufti of Perlis province, adds: “If you cannot find the body, there is a special prayer that can be read. As for the relatives of MH370, it’s been up to them to decide when to do that.”

The next-of-kin at the Marriott Hotel continue to fast, join for iftar in the evening and pray that the remains of their relatives will soon be retrieved. Zulrusdi knows that in this process, his government only has limited power.

“It’s like the Malaysian saying, when the elephants fight, the little animals get trampled underfoot.”

TIME China

China’s Response to the MH17 Tragedy? Condemn the West

Experts inspect the wreckage of Malaysia Airlines plane
Search and rescue specialists inspect the crash area of Malaysia Airlines flight 17, carrying nearly 300 people from Amsterdam to Kuala Lumpur when it was downed close to Russia's border with Ukraine on July 17, near Grabovo. Anadolu Agency—Getty Images

Despite memories of decades of Cold War frostiness, Beijing is now quite chummy with Moscow

On July 18, shortly after Malaysia Airlines Flight 17 crashed over eastern Ukraine, extinguishing 298 lives, China’s Xinhua state news agency cautioned against making snap judgments. The U.S. and other Western nations had begun to finger pro-Russian rebels in Ukraine for shooting down the Boeing 777 passenger plane, but Xinhua dismissed such accusations as “rash” and took the opportunity to swipe at Western democracies for their condemnation of Russia’s earlier military intervention in Ukraine:

The one-sided accusation is not surprising in light of their long-time stance on the crisis in eastern Ukraine, and their attitude towards Russia’s absorption of Crimea in March. But without convincing evidence, jumping to a conclusion will only heighten regional tension and is not conducive to finding out the truth.

Russian President Vladimir Putin late Thursday said it is Ukraine that bears the responsibility as the tragedy occurred over its territory. The tragedy, Putin said, could have been avoided should Ukraine’s eastern regions be in peace.

On July 21, the People’s Daily, the Chinese Communist Party’s mouthpiece, ran a piece still cautioning that “no proof has been found so far to clarify the cause or identify the perpetrator.” Nowhere did the story mention the likelihood that pro-Russian rebels had trained a missile on MH17 as it flew from Amsterdam to Kuala Lumpur.

The same day, the Global Times, a Chinese Communist Party-linked daily that can be counted on for nationalist commentary, did at least mention such a possibility — if only to decry Western governments’ speculation that Russia may have aided and abetted the rebels’ cause:

The Western rush to judge Russia is not based on evidence or logic. Russia had no motive to bring down MH17; doing so would only narrow its political and moral space to operate in the Ukrainian crisis. The tragedy has no political benefit for Ukrainian rebel forces, either. Russia has been back-footed, forced into a passive stance by Western reaction. It is yet another example of the power of Western opinion as a political tool.

The crisis in Ukraine had already put China in a difficult position. Despite memories of decades of Cold War frostiness, Beijing has boosted its ties with Moscow. The two neighbors share an antipathy toward Western democratic values and a mutual interest in natural resources. The first foreign trip Xi Jinping made as President was to Russia in March 2013.

Yet China also proclaims that one of its foreign-policy bedrocks is staying out of other nations’ internal affairs. Russia’s invasion of Crimea — which Xinhua delicately termed an “absorption” — cannot be considered as anything but a gross interference in Ukraine’s internal affairs. Beijing is struggling with separatist sentiment at home, most notably among Tibetan and Uighur populations in China’s far west. How can Chinese foreign-policy makers support an ethnic rebel movement over a national government, even if those separatists do have Russia’s tacit blessing?

China may soon have to reconcile this foreign-policy quandary. “It will bring about a severe challenge to China’s general strategy and diplomacy if America and Europe propose sanctions against Russia and demand China should join with them,” wrote Chinese security analyst Gao Feng in a widely disseminated blog post. “For China, the issue is which side it should choose. Without doubt, an ambiguous stance [by Beijing] will face criticism and moral pressure.”

There were no mainland Chinese nationals on MH17. By contrast, Malaysia Airlines Flight 370, which vanished in March en route from Kuala Lumpur to Beijing, was filled with Chinese passengers. As the Malaysian investigation into that plane’s disappearance foundered, Chinese authorities allowed MH370 families to stage protests in Beijing — a rarity in a nation allergic to public displays of dissent.

This time around, official Chinese sentiment has steered clear of blaming Malaysia for the Ukraine disaster. Instead, West-bashing has predominated. “The West has successfully put itself in a position to dictate ‘political correctness’ in international discourse,” said the Global Times editorial on MH17 on Monday. “Those unwilling to work with Western interests will often find themselves in a tough position.” Criticism of the West even extended beyond the tragedy of MH17. On July 21, Xinhua publicized a new campaign of “intense ideological education for officials to strengthen their faith in communism and curb corruption.” First on cadres’ to-do lists? Keeping a “firm belief in Marxism to avoid being lost in the clamor for western democracy.”

With reporting by Gu Yongqiang / Beijing

TIME Palestine

The U.N. Security Council Calls for an Immediate Cease-Fire in Gaza

More than 500 Palestinians are now dead, along with 20 Israelis

The U.N. Security Council called for an immediate end to hostilities in the Gaza Strip during a late-night emergency meeting on Sunday, following a bloody day of fighting in Gaza City’s Shujaiyeh neighborhood, where at least 60 Palestinians and 13 Israeli troops were killed.

In total, more than 500 Palestinians have been killed along with 20 Israelis — 18 of whom were soldiers — during the two-week offensive targeting Hamas.

“The members of the Security Council expressed serious concern about the growing number of casualties,” acting council president and Rwanda’s U.N. Ambassador Eugène-Richard Gasana told reporters following the meeting. “The members of the Security Council called for an immediate cessation of hostilities.”

U.S. President Barack Obama urged similar action earlier in the day during his second phone call in 72 hours with Israeli Prime Minister Benjamin Netanyahu.

According to a statement released by the White House: “The President underscored that the United States will work closely with Israel and regional partners on implementing an immediate ceasefire, and stressed the need to protect civilians — in Gaza and in Israel.”

President Obama added that Secretary of State John Kerry was being dispatched to Cairo to help secure a cease-fire deal.

Earlier on Sunday, U.N. Secretary-General Ban Ki-moon lambasted Israel for failing to protect innocent civilians caught in the crossfire in Gaza.

“While I was en route to Doha, dozens more civilians, including children, have been killed in Israeli military strikes in the Shujaiyeh neighborhood in Gaza,” Ban said. “I condemn this atrocious action. Israel must exercise maximum restraint and do far more to protect civilians.”

Meanwhile, at least two Americans have also died fighting for the Israeli Defense Forces (IDF), the U.S. State Department announced.

“We can confirm the deaths of U.S. citizens Max Steinberg and Sean Carmeli in Gaza. Out of respect for those affected by this, we have nothing further at this time,” said U.S. State Department spokeswoman Jen Psaki.

On Sunday, Hamas claimed during a televised address to have kidnapped an Israeli solider. However, Israel’s U.N. envoy was quick to deny that any IDF solider was being held by Hamas.

“There’s no kidnapped Israeli soldier and those rumors are untrue,” Israel’s U.N. Ambassador Ron Prosor told reporters in New York City.

The weekend’s assault on densely populated Palestinian neighborhoods by Israeli ground forces, supported by a barrage of artillery and air strikes, also led to the dramatic escalation of internally displaced people (IDPs) within Gaza.

“The cumulative number of IDPs has exceeded 100,000,” the U.N.’s Office for the Coordination of Humanitarian Affairs reported in a statement released on Sunday.

Despite numerous calls for an end to fighting in Gaza, the conflict showed no signs of subsiding. The IDF claimed to have carried out strikes against “53 terror sites” in Gaza on Sunday night.

Early on Monday, reports also began to surface that an air strike flattened a home near the Gazan city of Khan Younis, killing at least 20 people.

TIME Aviation

Malaysia, the World’s Unluckiest Airline, Will Now Struggle to Survive

Malaysia’s national carrier was already in a weak financial position. Now its future is highly uncertain

+ READ ARTICLE

Only four months after Malaysia Airlines Flight 370 vanished somewhere in the Indian Ocean with 239 passengers on board, Flight 17 was shot down over Ukraine, causing the loss of another 298 souls — an unprecedented blow to a major international airline. Even a robust operator would have trouble overcoming twin disasters like that. But the fact is that Malaysia’s flag carrier is in no financial shape to absorb these catastrophes. In fact, analysts wonder if it will ever be able to recover.

“The outlook is very dire,” says Mohshin Aziz, an aviation analyst at Kuala Lumpur–based Maybank. The airline, he fears, “won’t be able to survive beyond the year in its current form.”

The next months could prove humbling for an airline that had grand ambitions. The Malaysian government had high hopes that its national carrier would compete with the region’s best, and invested much money and emotion into building it. But Malaysia Airlines got badly squeezed in the fiercely contested Asian airline industry. Its cost base is too high to compete with lean and mean budget carrier AirAsia, also based in Kuala Lumpur. At the same time, it lacks the prestigious brand image to raise its ticket prices and take on East Asia’s more premier airlines, such as Singapore Airlines and Hong Kong’s Cathay Pacific. As a result, the company has been bleeding for years. The airline’s Kuala Lumpur–listed parent, Malaysian Airline System, has racked up losses of more than $1.4 billion since 2011. Management has tried cutting costs and improving service to turn around the airline’s fortunes, but such efforts were making only minimal progress.

Now whatever hope remained may get dashed by the two crushing tragedies. Analysts are concerned that the fallout will scare passengers away from flying on the airline, or force management to discount tickets to convince them to book — reducing revenue either way. That could push the airline’s fragile finances to the breaking point, causing “the ticking time bomb to explode,” says Daniel Tsang, founder of consultancy Aspire Aviation in Hong Kong. That reality will likely force Malaysia Airlines to take more drastic measures to stay afloat. Even before the latest crash over Ukraine, CEO Ahmad Jauhari Yahya told shareholders in June that the MH370 incident “sadly now added an entirely unexpected dimension, damaging our brand and our business reputation, and accelerating the urgency for radical change.”

There are options, but all are equally unsavory. Mohshin believes that Malaysia Airlines will have to greatly shrink its business, perhaps eradicating most of the international routes it flies, to focus on the more profitable parts of the operations. “It will never get back to the large size it was before,” he says. “The sooner they accept that fact, the better off they will be.” Tsang says that bankruptcy proceeding would be a “pretty good option” for Malaysia Airlines. That process would make it easier to strip out more of the legacy costs and make the airline more competitive.

What happens next ultimately depends on the Malaysian government. A state-controlled investment fund owns a majority of the shares in the carrier’s parent company, and that makes the future of Malaysia Airlines a political issue. The airline’s powerful union has been able to fight off previous efforts at radically overhauling the carrier and analysts say that rescuing Malaysia Airlines this time will require a high degree of political commitment. Still, if Malaysia Airlines manages to streamline its operations, it may live to fly another day.

“The restructuring will be painful for a lot of people,” Tsang says. “But a phoenix can rise from ashes.”

TIME China

In China, McDonald’s, KFC and Pizza Hut Probe Expired-Meat Supply

Controversies over food safety are a fact of life in China

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Health officials have temporarily closed a Shanghai-based meat supplier after it was learned that the firm, which supplies products to major American fast-food restaurants throughout China, may have been selling expired chicken and beef.

Both McDonald’s and Yum! Brands — owner of KFC and Pizza Hut, with over 6,200 Chinese stores collectively — asked their restaurants on Sunday to abstain from selling meat provided by Shanghai Husi Food Co. after Dragon Television, a local news outfit, reported that the meat company’s employees were repackaging meat and extending its shelf life by a year. McDonald’s and Yum! have launched their own investigations.

Yum!’s sales have rebounded in recent months after a fit of bad publicity early last year, when a state television agency alleged that KFC — the largest restaurant chain in China — was selling chicken containing excessive amounts of antibiotics. Yum! insisted on the safety of its food and said it was working to improve its supply chain.

TIME brics

The BRICS Don’t Like the Dollar-Dominated World Economy, but They’re Stuck With It

World For Money
Thomas Trutschel—Photothek/Getty Images

The latest summit of the world’s leading emerging markets took more steps toward replacing the U.S.-led global financial system. But change will come very, very slowly

When the BRICS get together for their annual summit — as they did last week in Brazil — they always make a lot of noise about changing the way the global economy works. They have good reason to be frustrated. The BRICS (Brazil, Russia, India, China and South Africa) are gaining in economic power and crave the political clout to match, but standing in the way is a global financial system organized by the West and dominated by the U.S. They’re forced to conduct their international business in the unstable U.S. dollar, making their economies swing back and forth with the winds of policy crafted in Washington, D.C., and New York City. The West has ceded influence in institutions like the World Bank and the International Monetary Fund (IMF) only grudgingly. To them, today’s financial system is out of touch with the changing times, and ill-suited to support the world’s up-and-coming economic titans.

So in their summit, from July 14 to 16, the five BRICS announced two major initiatives aimed squarely at increasing their power in global finance. They announced the launch of the New Development Bank, headquartered in Shanghai, that will offer financing for development projects in the emerging world. The bank will act as an alternative to the Washington, D.C.—based World Bank. The BRICS also formed what they’re calling a Contingent Reserve Arrangement, a series of currency agreements which can be utilized to help them smooth over financial imbalances with the rest of the world. That’s something the IMF does now.

Clearly, the idea is to create institutions and processes to supplement — and perhaps eventually supplant — the functions of those managed by U.S. and Europe. And they would be resources that they could control on their own, without the annoying conditions that the World Bank and the IMF always slap on their loans and assistance. Carlos Caicedo, a Latin America analyst at consulting firm IHS, noted, for instance, that the New Development Bank “has the potential to match the role of multilateral development banks, while offering the BRICS a tool to counterbalance Western influence in international finance.”

In theory at least, the BRICS possess the financial muscle to make that happen. Four of the BRICS — China, India, Brazil and Russia — are now ranked among the world’s 10 largest economies. (South Africa, not a member of the original constellation of BRICs as conceived by Goldman Sachs, comes in a distant 33rd.) Yet the reality is more problematic. The BRICS at this point are simply not committing the resources necessary to make anything but a dent in global finance.

Research firm Capital Economics estimates that the New Development Bank, with initial capital approved at only $100 billion, could offer loans of $5 billion to $10 billion a year over the next decade. Though that’s not an insignificant amount, it’s far lower than the $32 billion the World Bank made available last year. The situation is the same with the currency swaps. Set at a total size of $100 billion, the funds available would be a fraction of those the IMF can muster.

That’s assuming these initiatives ever get off the ground. This sixth BRICS summit is the first to produce anything beyond mere rhetoric, and it remains to be seen if they can cooperate on these or any other concrete projects. Despite their common distaste for the U.S.-led global economy and desire for development, the BRICS share as many differences as similarities. They have vastly diverse levels of development and types of political systems, and the bilateral relations between some of them are strained. India and China, for instance, routinely spar over disputed territory, while Brazil sees China as much as an economic competitor as partner.

Beyond that, all of the BRICS have serious economic problems to deal with at home. The new government in India led by Prime Minister Narendra Modi will be hard pressed to implement the reforms necessary to jumpstart the country’s stalled economic miracle. Growth in Brazil, South Africa and Russia has been even more sluggish. China’s growth has held up, but it suffers from rising debt, risky shadow banking and excess capacity. And now Moscow has to contend with sanctions imposed by the U.S. and Europe over its aggressive policy toward Ukraine. It may soon face even greater isolation as the world probes its connections to the separatists in Ukraine, who reportedly downed Malaysian Airlines Flight 17 with the loss of nearly 300 lives.

Meanwhile, whether they like it or not, the BRICS will be stuck operating by the rules of the U.S.-led world economy for the foreseeable future. There is simply no other currency out there that can replace the U.S. dollar as the No. 1 choice for international financial transactions. China has dreams of promoting its own currency, the yuan, as an alternative, and has made some progress. But the yuan can’t truly rival the dollar until China undertakes some fundamental financial reforms — liberalizing the trade of the yuan and capital flows in and out of the country. That’s far-off. And until then, China’s massive reserve of dollars forces it to continually invest in dollar assets. Even as Beijing bickers with the U.S. over cyberspying and regional territorial disputes, it has been loading up on U.S. Treasury securities — buying at the fastest pace on record so far this year.

Still, the steps taken during this latest BRICS summit point to what may be the future of the global economy. Though their initiatives may be small and tentative now, they signal an intent to remake the global financial system in their own interest as they continue to grow in economic power. Perhaps one day it’ll be the U.S. that does the complaining.

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