Category: Europe

MIL-OSI Russia: Yuri Trutnev visited industrial enterprises of Komsomolsk-on-Amur

Translartion. Region: Russians Fedetion –

Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

Yuri Trutnev visited industrial enterprises of Komsomolsk-on-Amur

February 11, 2025

Yuri Trutnev visited industrial enterprises of Komsomolsk-on-Amur

February 11, 2025

Yuri Trutnev visited industrial enterprises of Komsomolsk-on-Amur

February 11, 2025

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Yuri Trutnev visited industrial enterprises of Komsomolsk-on-Amur

As part of his working visit to Khabarovsk Krai, Deputy Prime Minister and Presidential Plenipotentiary Representative in the Far Eastern Federal District Yuri Trutnev visited the enterprises of PJSC UAC in Komsomolsk-on-Amur – the Komsomolsk-on-Amur Aviation Plant named after Yuri Gagarin (KnAAZ) and the production center of PJSC Yakovlev, where the Superjet-100 is assembled, and also visited the investment site for the production of the Baikal aircraft and got acquainted with the work of the Amur Shipbuilding Plant of USC. The Deputy Prime Minister was accompanied on his trip by the Governor of Khabarovsk Krai Dmitry Demeshin.

At KnAAZ, Yuri Trutnev inspected a new titanium alloy processing shop, an assembly line, including a final assembly shop for Su-35S and Su-57 aircraft, and the construction of new flight test station facilities. The implementation of the project to build facilities and new industrial capacities at KnAAZ are necessary to increase the serial production of fifth-generation aircraft. The Deputy Prime Minister was shown areas where work is being carried out within the framework of cooperation: on the import-substituting Superjet-100 and MS-21.

In the technocomplex of the production center of PAO Yakovlev, Yuri Trutnev was shown the first line in Russia for the production of doors for the import-substituted version of the Superjet – previously, these units were manufactured abroad. Doors manufactured on the new line meet the most modern aviation safety standards. A specialization center for the production of doors for other Russian civil aircraft is being created on the basis of the technocomplex.

In the final assembly shop, the director of the production center Andrey Soynov spoke about the current work and prospects of the enterprise. The center, which employs more than 1 thousand people, is preparing for the serial production of fully import-substituted Superjet-100 aircraft. The production modernization program provides for the expansion of the final assembly shop to organize a straight-through conveyor and the construction of a new hangar for the flight test station. The production capacity of the updated enterprise will be at least 20 Superjet-100 aircraft per year.

“The supply of domestic aircraft for air transportation in the Far East is our priority task. We, like no one else, understand the need to connect the cities of our region. The Yakovlev company has already concluded an agreement on the supply of Superjets to the Aurora airline, and we will make every effort to fulfill this order,” Andrey Soynov emphasized.

As part of his trip to Komsomolsk-on-Amur, Yuri Trutnev visited an investment site being created for a comprehensive center for the development of regional and unmanned aviation production and the production of the Baikal light multipurpose aircraft. The construction of a production building for the assembly of the Baikal aircraft with the necessary engineering infrastructure is being carried out on the advanced development area in close proximity to the Dzyomgi airfield and the facilities of the United Aircraft Corporation (UAC). Work on the site is scheduled to be completed by the end of 2025. Construction of facilities for the production of the Baikal light aircraft began in January 2024. The project is being implemented on the instructions of President of the country Vladimir Putin and as part of the long-term development plan for Komsomolsk-on-Amur, the activities of which are included in the city’s master plan. Currently, the zero cycle work on the formation of the land plot is being completed, and the pouring of foundations continues. The total area of buildings and structures will be almost 10.4 thousand square meters. m. The complex will produce up to 20 aircraft per year. 80 jobs will be created.

The developer of the Baikal aircraft is the Ural Works of Civil Aviation (UZGA). The aircraft will be manufactured by UZGA subsidiary Spetsaviatekhnika LLC, a resident of the Khabarovsk priority development area. It is planned that Baikal will be equipped with a domestic VK-800 engine. This aircraft is being created to improve the transport accessibility of remote regions of Russia and to develop local air routes. The key parameters of the aircraft were determined in accordance with the requirements of regional airlines: 2 tons of payload, flight range of 1.5 thousand km, cruising speed of 300 km/h.

Yuri Trutnev also got acquainted with the work of the Amur Shipyard of USC, one of the largest shipbuilding enterprises in the Far East. During the inspection, the Deputy Prime Minister visited the slipway shop. The management of the enterprise reported on the orders under construction and prospective orders. The Deputy Prime Minister got acquainted with the progress of construction of the new dock-pontoon “Amurets” of project 65911, which is being built for the plant’s own needs as part of the USC dock program.

The dock-pontoon was laid down in June 2023. Its main purpose is to ensure the removal of factory orders from the workshop and their transfer to the outfitting pier. The company has completed a large amount of work on the construction. On the dock-pontoon, the hull of which is currently being assembled on an open slipway, the assembly joints of the first three blocks have been thoroughly welded and presented to the register, and all assembly work on the fourth has been completed. In March, when the average daily temperature rises to normal, welding work on the dock-pontoon will resume, and the docking of the order hull will continue.

The plant’s production program includes the construction of a floating transport dock for the transfer of plant orders to the outfitting base in Vladivostok and the reconstruction of the dockside unit of the plant’s outfitting complex. This will allow the enterprise to build a promising line of ships and vessels of greater width and tonnage than is currently possible, and to transport orders to the delivery base in Primorye using its own resources.

Yuri Trutnev discussed with the General Director of the Amur Shipyard of USC Mikhail Borovsky the issues of the enterprise’s workload in terms of placing orders on the Amur Shipyard’s slipways for the development and maintenance of the oil and gas shelf – supply vessels and ice-class rescue vessels. The plant already has experience in building such orders: in 2018 and 2020, the plant built and handed over to the customer (OOO Gazprom Flot) two supply vessels for work with semi-submersible floating units. The built vessels belong to the highest class of automation and are capable of performing a wide range of tasks – from transporting goods and people to eliminating the consequences of natural disasters and extinguishing fires.

At the commissioning base of the Amur Shipyard of USC, work is underway to prepare for testing the multifunctional emergency rescue vessel with a capacity of 7 MW, the Kerch Strait, which is being built to operate in high latitudes and has a sufficient margin of safety for sailing in freezing non-Arctic seas.

“I always come to Komsomolsk-on-Amur with pleasure, because it is a working city. This is a city that protects our country. In this city, wonderful fighters are created, ships are built. We see how the work of the Amur Shipyard has changed. Previously, the enterprise had unresolved issues. And now, when the CEO reports that the enterprise is fully paying off its debts, that it is fully loaded with orders, this is, of course, great. This is good for Khabarovsk Krai, and for Komsomolsk-on-Amur, and for our entire country. The aircraft plant is fully loaded. Much remains to be done for small and large aviation. Work is going well on the Superjet-100 and fighters. We do not forget that we have debts to people for the construction of social facilities in Komsomolsk-on-Amur. And work in this direction will be accelerated. Now I have given a number of instructions and expect that the pace of work will be increased. The administration made a number of mistakes, including in the selection of contractors, but these miscalculations are of no interest to anyone. The main thing is that people get what they expect. We are trying to do this,” Yuri Trutnev summed up the results of his trip to Komsomolsk-on-Amur.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

February 11, 2025

MIL-OSI: International Petroleum Corporation Announces 2024 Year-End Financial and Operational Results and 2025 Budget, Reserves and Guidance

Source: GlobeNewswire (MIL-OSI)

TORONTO, Feb. 11, 2025 (GLOBE NEWSWIRE) — International Petroleum Corporation (IPC or the Corporation) (TSX, Nasdaq Stockholm: IPCO) today released its financial and operating results and related management’s discussion and analysis (MD&A) for the three months and year ended December 31, 2024. IPC is also pleased to announce its 2025 budget, including that IPC continues to progress the development of the Blackrod Phase 1 project in Canada in line with schedule and budget. IPC previously announced the renewal of the normal course issuer bid (NCIB) under which IPC may acquire a further 5.3 million common shares up to December 2025, in addition to the 2.2 million common shares already purchased for cancellation under the NCIB in December 2024 and January 2025. IPC’s 2025 capital and decommissioning expenditure budget is USD 320 million and its 2025 average daily production guidance is between 43,000 and 45,000 barrels of oil equivalent (boe) per day (boepd). 2024 year-end proved plus probable (2P) reserves are 493 million boe (MMboe) and best estimate contingent resources (unrisked) are 1,107 MMboe.⁽¹⁾⁽²⁾

William Lundin, IPC’s President and Chief Executive Officer, comments: “We are very pleased to announce that IPC achieved strong operational results in 2024. Our average net production was 47,400 boepd for the full year, with very strong operational and ESG performance across all our areas of operation. 2024 was a very significant investment year for our Blackrod Phase 1 development project, and we have spent over two-thirds of the forecast capital expenditure by the end of 2024. We generated strong cash flows from our business, and we returned USD 102 million to shareholders through share buybacks in 2024. With gross cash resources of USD 247 million at 2024 year-end, we continue to be well positioned to deliver on our three strategic pillars of Organic Growth, Stakeholder Returns, and M&A that drive value creation for our stakeholders.⁽¹⁾⁽³⁾

On Organic Growth, we are very pleased with the progress of the development of Phase 1 of the Blackrod project, Canada, which remains in line with schedule and budget. Phase 1 of the Blackrod project continues to forecast first oil in late 2026, with peak production planned to increase to 30,000 bopd by 2028. In 2024, IPC achieved over 250% reserves replacement ratio, ending the year with 493 MMboe of 2P reserves, the highest in our history.⁽¹⁾⁽²⁾

On Stakeholder Returns, we completed the 2023/2024 NCIB program, purchasing and cancelling 8.3 million IPC common shares over the period of December 5, 2023 to December 4, 2024, representing approximately 6.5% of the common shares outstanding at the start of that program. We immediately recommenced purchasing under the renewed 2024/2025 NCIB, purchasing for cancellation 0.8 million common shares during December 2024 and over 1.4 million common shares during January 2024. We are permitted to purchase up to a further 5.3 million common shares by early December 2025, which will represent a 6.2% reduction in the number of shares common outstanding at the beginning of the 2024/2025 NCIB.

On M&A, we continue to review potential opportunities in Canada and internationally. IPC’s principal focus continues to be on progressing the Blackrod Phase 1 development as well as developing our existing asset base in Canada, France and Malaysia.

IPC is well-positioned for 2025 and beyond as our Blackrod Phase 1 project is progressing according to plan, our existing production operations continue to generate strong cash flows, and our balance sheet is strong. At the same time, we continue return value to our shareholders by repurchasing and cancelling our common shares under the NCIB. I look forward to another exciting year at IPC with our high quality assets and our highly skilled and motivated teams across all areas of operation.”

2024 Business Highlights

Average net production of approximately 47,400 boepd for the fourth quarter of 2024 was in line with the guidance range for the period (51% heavy crude oil, 15% light and medium crude oil and 34% natural gas).⁽¹⁾
Full year 2024 average net production was 47,400 boepd, above the mid-point of the 2024 annual guidance of 46,000 to 48,000 boepd.⁽¹⁾
Development activities on Phase 1 of the Blackrod project progressed in 2024 on schedule and on budget, with forecast first oil in late 2026. All major third-party contracts have been executed and construction is advancing according to plan, including construction of the central processing facility (CPF) and well pad facilities, finalization of the midstream agreements for the input fuel gas, diluent and oil blend pipelines, and advancement of drilling operations. As at the end of 2024, over two-thirds of the forecast Blackrod Phase 1 development capital expenditure of USD 850 million has been spent since project sanction in early 2023.
Drilling activity at the Southern Alberta assets in Canada continued with a total of thirteen wells drilled during 2024.
Successful completion of planned maintenance shutdowns at Onion Lake Thermal (OLT) in Canada and the Bertam field in Malaysia during 2024.
8.3 million common shares purchased and cancelled from December 2023 to early December 2024 under IPC’s 2023/2024 NCIB and a further 2.2 million common shares purchased for cancellation during December 2024 and January 2025 under the renewed 2024/2025 NCIB.
In Q3 2024, published IPC’s fifth annual Sustainability Report.

2024 Financial Highlights

Operating costs per boe of USD 18.2 for the fourth quarter of 2024 and USD 17.0 for the full year, in line with the most recent 2024 guidance of less than USD 18.0 per boe for the full year.⁽³⁾
Strong operating cash flow (OCF) generation for the fourth quarter and full year 2024 amounted to MUSD 78 and MUSD 342, respectively.⁽³⁾
Capital and decommissioning expenditures of MUSD 129 for the fourth quarter and MUSD 442 for the full year 2024, in line with the full year guidance of MUSD 437.
Free cash flow (FCF) generation for the full year 2024 of negative MUSD 135, with negative FCF generation of MUSD 61 for the fourth quarter in line with expectations and taking into account the significant capital expenditures during the quarter in respect of the Blackrod project. FCF for the full year 2024, before 2024 Blackrod Phase 1 development expenditure of MUSD 351, was MUSD 216.⁽³⁾
Net debt of MUSD 209 and gross cash of MUSD 247 as at December 31, 2024.⁽³⁾
Net result of MUSD 0.4 for the fourth quarter of 2024 and MUSD 102 for the full year 2024.
Entered into a letter of credit facility in Canada during 2024 to cover operational letters of credit, giving full availability under IPC’s undrawn CAD 180 million Revolving Credit Facility.

Reserves and Resources

Total 2P reserves as at December 31, 2024 of 493 MMboe, with a reserve life index (RLI) of 31 years.⁽¹⁾⁽²⁾
Contingent resources (best estimate, unrisked) as at December 31, 2024 of 1,107 MMboe.⁽¹⁾⁽²⁾
2P reserves net asset value (NAV) as at December 31, 2024 of MUSD 3,083 (10% discount rate).^(1)(2)(⁵⁾⁽⁶⁾

2025 Annual Guidance

Full year 2025 average net production forecast at 43,000 to 45,000 boepd.⁽¹⁾
Full year 2025 operating costs forecast at USD 18 to 19 per boe.⁽³⁾
Full year 2025 OCF guidance estimated at between MUSD 210 and 280 (assuming Brent USD 65 to 85 per barrel).⁽³⁾
Full year 2025 capital and decommissioning expenditures guidance forecast at MUSD 320, including MUSD 230 relating to Blackrod capital expenditure.
Full year 2025 FCF ranges from approximately MUSD 80 to 150 (assuming Brent USD 65 to 85 per barrel) before taking into account proposed Blackrod capital expenditures, or negative MUSD 150 to 80 including proposed Blackrod capital expenditures.⁽³⁾

Business Plan Production and Cash Flow Guidance

2025 – 2029 business plan forecasts:
- average net production forecast approximately 57,000 boepd.⁽¹⁾⁽⁸⁾
- capital expenditure forecast of USD 8 per boe, including USD 3 per boe for growth expenditure.⁽⁸⁾
- operating costs forecast of USD 18 to 19 per boe.⁽³⁾⁽⁸⁾
- FCF forecast of approximately MUSD 1,200 to 2,000 (assuming Brent USD 75 to 95 per barrel).⁽³⁾⁽⁸⁾
2030 – 2034 business plan forecasts:
- average net production forecast of approximately 63,000 boepd.⁽¹⁾⁽⁸⁾
- capital expenditure forecast of USD 5 per boe.⁽⁸⁾
- operating costs forecast of USD 18 to 19 per boe.⁽³⁾⁽⁸⁾
- FCF forecast of approximately MUSD 1,600 to 2,600 (assuming Brent USD 75 to 95 per barrel).⁽³⁾⁽⁸⁾

	Three months ended December 31				Year ended December 31
USD Thousands	2024		2023		2024		2023
Revenue	199,124		198,460		797,783		853,906
Gross profit	42,774		39,955		210,171		250,514
Net result	415		29,710		102,219		172,979
Operating cash flow ⁽³⁾	78,158		73,634		341,989		353,048
Free cash flow ⁽³⁾	(61,476	)	(64,688	)	(135,497	)	2,689
EBITDA ⁽³⁾	76,184		66,284		335,488		350,618
Net Cash / (Debt) ⁽³⁾	(208,528	)	58,043		(208,528	)	58,043

IPC was launched in 2017 by way of spinning off the non-Norwegian assets from Lundin Energy. The strategy and vision from the outset was to be the international E&P growth vehicle for the Lundin Group by pursuing growth organically and through acquisitions. The foundation of this strategy was and is predicated on maximising long-term stakeholder value through responsible business operations focused on operational excellence and financial resilience to underpin optimal capital allocation decision-making.

We are very pleased with the track record of value creation achieved by the company to date. IPC’s production, reserves, resources and cash flow exposure has increased materially through accretive acquisitions supplemented by base business investment. Excluding the growth capital expenditure assigned to the Blackrod Phase 1 development, over USD 1.5 billion in free cash flow (FCF) has been generated and over USD 0.5 billion has been returned to shareholders in the form of share buybacks since inception. IPC’s current shares outstanding are less than 5% higher than the original shares outstanding upon the formation of the company. IPC is determined to build on the historical success and the growth outlook has never been brighter.⁽³⁾

2024 was a milestone year for the company through successfully delivering the largest capital investment campaign in its history. The record investment was accompanied by strong safety, operational and financial performance. IPC returned USD 102 million of value to shareholders in the year through share repurchases, whilst maintaining a strong balance sheet.

Oil prices were rangebound in 2024 between Brent USD 70 to 90 per barrel, with a full year Brent average of USD 81 per barrel, in line with our original oil price sensitivities guided at CMD. The fourth quarter 2024 Brent price averaged USD 75 per barrel, the lowest quarterly price average in the year. The downward trend in benchmark oil prices through the second half of 2024 has been slightly reversed in current time as continuous crude inventory draws, strong demand, underwhelming non-OPEC production growth and continued OPEC production curtailments have supported the market balance. A new administration in the White House presents uncertainty for the oil market, as looming tariffs and sanctions pose a risk to global supply chain systems and trade flows. Around 40% of our 2025 Dated Brent and WTI exposure is hedged at USD 76 per barrel and USD 71 per barrel respectively.

The fourth quarter 2024 WTI to WCS price differentials averaged less than USD 13 per barrel, around USD 2 per barrel lower than the full year average of USD 15 per barrel. The fourth quarter differential was the lowest quarterly average since the Covid pandemic in 2020 when benchmark oil prices were more than USD 30 per barrel less than current levels. The TMX pipeline is driving the tighter differentials with excess take-away capacity in the Western Canadian Sedimentary Basin (WCSB) relative to supply. Close to 50% of our 2025 WCS to WTI differential exposure is hedged at USD 14 per barrel, which should assist in mitigating adverse effects of potential US tariffs on Canadian production.

Natural gas prices averaged CAD 1.5 per Mcf for 2024 and in the fourth quarter. Western Canada gas storage levels continue to sit above the five-year range. This is in part due to delays of the LNG Canada start-up project which was supposed to be onstream at end 2024, start-up is now anticipated for mid-2025. IPC has around 9,600 Mcf per day hedged at CAD 2.6 per Mcf for 2025.

Fourth Quarter and Full Year 2024 Highlights

During the fourth quarter of 2024, IPC’s assets delivered average net production of 47,400 boepd, in line with guidance for the quarter. Full year 2024 average net production of 47,400 boepd was above the 2024 mid-point guidance range of 46,000 to 48,000 boepd.⁽¹⁾

IPC’s operating costs per boe for the fourth quarter of 2024 was USD 18.2. Full year 2024 operating costs per boe was USD 17.0, in line with the most recent 2024 annual guidance of less than USD 18 per boe.⁽³⁾

Operating cash flow (OCF) generation for the fourth quarter of 2024 was USD 78 million. Full year 2024 OCF was USD 342 million in line with the most recent guidance of USD 335 to 342 million.⁽³⁾

Capital and decommissioning expenditure for the fourth quarter of 2024 was USD 129 million. Full year 2024 capital and decommissioning expenditure of USD 442 million was in line with guidance of USD 437 million.

Free cash flow (FCF) generation was in line with guidance at negative USD 61 million during the fourth quarter of 2024, reflecting the higher level of capital expenditure on the Blackrod Phase 1 development project. Full year 2024 FCF generation was negative USD 135 million, in line with the most recent guidance of negative USD 140 to 133 million.⁽³⁾

As at December 31, 2024, IPC’s net debt position was USD 209 million. IPC’s gross cash on the balance sheet amounts to USD 247 million which provides IPC with significant financial strength to continue progressing its strategies in 2025, including advancing the Blackrod development project, returning value to shareholders through the 2024/2025 NCIB, and remaining opportunistic to mergers and acquisitions activity.⁽³⁾

Blackrod Project

The Blackrod asset is 100% owned by IPC and hosts the largest booked reserves and contingent resources within the IPC portfolio. After more than a decade of pilot operations, subsurface delineation and commercial engineering studies, IPC sanctioned the Phase 1 Steam Assisted Gravity Drainage (SAGD) development in the first quarter of 2023. The Phase 1 development targets 259 MMboe of 2P reserves, with a multi-year forecast capital expenditure of USD 850 million to first oil planned in late 2026. The Phase 1 development is planned for plateau production of 30,000 bopd which is expected by early 2028.⁽¹⁾⁽²⁾

As at the end of 2024, USD 591 million of cumulative growth capital, has been spent on the Blackrod Phase 1 development since sanction with a peak annual investment of USD 351 million incurred in 2024. Significant progress has been made across all key scopes of the project including but not limited to: detailed engineering, procurement, fabrication, drilling, construction, third party transport pipelines, commissioning and operations planning. Site health and safety control has been excellent with zero lost time incidents since commercial development activities commenced.

Looking forward, USD 230 million is planned to be spent in 2025 mainly relating to advancing the remaining fabrication, construction and substantial completion of the Central Processing Facility (CPF) for the Phase 1 development. The remaining growth capital expenditure to first oil is forecast to be spent in 2026 on drilling, completions and commissioning of the CPF with first steam anticipated by end Q1 2026.

IPC is strongly positioned to deliver within plan with a clear line of sight to start-up. The Blackrod Phase 1 project is expected to generate significant value for all our stakeholders. And with over 1 billion barrels of best estimate contingent resources (unrisked) beyond Phase 1, IPC is pleased to announce a resource maturation plan that sees significant volume maturation into reserves through low cost of less than USD 0.15 per barrel. The 2P reserves attributable to Phase 1 has increased by 40 MMboe to 259 MMboe from year end 2023 to year end 2024.⁽²⁾

As at the end of 2024, 70% of the Blackrod Phase 1 development capital had been spent since the project sanction in early 2023. All major work streams are progressing as planned and the focus continues to be on executing the detailed sequencing of events as facility modules are safely delivered and installed at site. The total Phase 1 project guidance of USD 850 million capital expenditure to first oil in late 2026 is unchanged. IPC intends to fund the remaining Blackrod Phase 1 development costs with forecast cash flow generated by its operations and cash on hand.

Stakeholder Returns: Normal Course Issuer Bid

During the period of December 5, 2023 to December 4, 2024, IPC purchased and cancelled an aggregate of approximately 8.3 million common shares under the 2023/2024 NCIB. The average price of shares purchased under the 2023/2024 NCIB was SEK 131 / CAD 17 per share.

In Q4 2024, IPC announced the renewal of the NCIB, with the ability to repurchase up to approximately 7.5 million common shares over the period of December 5, 2024 to December 4, 2025. Under the 2024/2025 NCIB, IPC repurchased and cancelled approximately 0.8 million common shares in December 2024. By the end of January 2025, IPC repurchased for cancellation over 1.4 million common shares under the 2024/2025 NCIB. The average price of common shares purchased under the 2024/2025 NCIB during December 2024 and January 2025 was SEK 135 / CAD 17.5 per share.

As at February 7, 2025, IPC had a total of 117,781,927 common shares issued and outstanding, of which IPC holds 508,853 common shares in treasury.

Under the 2024/2025 NCIB, IPC may purchase and cancel a further 5.3 million common shares by December 4, 2025. This would result in the cancellation of 6.2% of shares outstanding as at the beginning of December 2024. IPC continues to believe that reducing the number of shares outstanding while in parallel investing in material production growth at Blackrod will prove to be a winning formula for our stakeholders.

Environmental, Social and Governance (ESG) Performance

As part of IPC’s commitment to operational excellence and responsible development, IPC’s objective is to reduce risk and eliminate hazards to prevent occurrence of accidents, ill health, and environmental damage, as these are essential to the success of our business operations. During the fourth quarter and for the full year 2024, IPC recorded no material safety or environmental incidents.

As previously announced, IPC targets a reduction of our net GHG emissions intensity by the end of 2025 to 50% of IPC’s 2019 baseline and IPC remains on track to achieve this reduction. During 2024, IPC announced the commitment to remain at end 2025 levels of 20 kg CO2/boe through to the end of 2028.⁽⁴⁾

Reserves, Resources and Value

As at the end of December 2024, IPC’s 2P reserves are 493 MMboe. During 2024, IPC replaced 251% of the annual 2024 production. The reserves life index (RLI) as at December 31, 2024, is approximately 31 years.⁽¹⁾⁽²⁾

The net present value (NPV) of IPC’s 2P reserves as at December 31, 2024 was USD 3.3 billion. IPC’s net asset value (NAV) was USD 3.1 billion or SEK 287 / CAD 37 per share as at December 31, 2024.⁽¹⁾⁽²⁾⁽⁵⁾⁽⁶⁾⁽⁷⁾

In addition, IPC’s best estimate contingent resources (unrisked) as at December 31, 2024 are 1,107 MMboe, of which 1,025 MMboe relate to future potential phases of the Blackrod project.⁽¹⁾⁽²⁾

2025 Budget and Operational Guidance

IPC is pleased to announce its 2025 average net production guidance is 43,000 to 45,000 boepd. IPC forecasts operating costs for 2025 between USD 18 and 19 per boe.⁽¹⁾⁽³⁾

IPC’s 2025 capital and decommissioning expenditure budget is USD 320 million, with USD 230 million forecast relating to Blackrod capital expenditure. The remainder of the 2025 budget in Canada includes drilling and ongoing optimization work at Onion Lake Thermal and Suffield Area assets. IPC also plans to advance the next phase of infill drilling and complete well maintenance works at the Bertam field in Malaysia. IPC expects to conduct technical studies for future development potential in France. In all of IPC’s areas of operation, IPC has significant flexibility to control its pace of spend based on the development of commodity prices during 2025.

Notwithstanding a modest production decline expected in 2025, IPC’s production per share metric remains largely unchanged relative to 2024 and 2023. IPC has prioritised capital allocation to the transformational Blackrod Phase 1 development and share buybacks as opposed to further increasing its base business investment to preserve balance sheet strength and maximise long- term shareholder value.

Further details regarding IPC’s proposed 2025 budget and operational guidance will be provided at IPC’s Capital Markets Day presentation to be held on February 11, 2025 at 15:00 CET. A copy of the Capital Markets Day presentation will be available on IPC’s website at www.international-petroleum.com.

Notes:

(1) See “Supplemental Information regarding Product Types” in “Reserves and Resources Advisory” below. See also the material change report (MCR) available on IPC’s website at www.international-petroleum.com and filed on the date of this press release under IPC’s profile on SEDAR+ at www.sedarplus.ca.
(2) See “Reserves and Resources Advisory“ below. Further information with respect to IPC’s reserves, contingent resources and estimates of future net revenue, including assumptions relating to the calculation of NPV, are described in the MCR. The reserve life index (RLI) is calculated by dividing the 2P reserves of 493 MMboe as at December 31, 2024 by the mid-point of the 2025 CMD production guidance of 43,000 to 45,000 boepd. Reserves replacement ratio is based on 2P reserves of 468 boe as at December 31, 2024, sales production during 2024 of 16.6 MMboe, net additions to 2P reserves during 2024 of 41.7 MMboe, and 2P reserves of 493 MMboe as at December 31, 2024.
(3) Non-IFRS measure, see “Non-IFRS Measures” below and in the MD&A.
(4) Emissions intensity is the ratio between oil and gas production and the associated carbon emissions, and net emissions intensity reflects gross emissions less operational emission reductions and carbon offsets.
(5) Net present value (NPV) is after tax, discounted at 10% and based upon the forecast prices and other assumptions further described in the MCR. See “Reserves and Resources Advisory” below.
(6) Net asset value (NAV) is calculated as NPV less net debt of USD 209 million as at December 31, 2024.
(7) NAV per share is based on 119,059,315 IPC common shares as at December 31, 2024, being 119,169,471 common shares outstanding less 110,156 common shares held in treasury and cancelled in January 2025. NAV per share is not predictive and may not be reflective of current or future market prices for IPC common shares.
(8) Estimated FCF generation is based on IPC’s current business plans over the periods of 2025 to 2029 and 2030 to 2034, including net debt of USD 209 million as at December 31, 2024, with assumptions based on the reports of IPC’s independent reserves evaluators, and including certain corporate adjustments relating to estimated general and administration costs and hedging, and excluding shareholder distributions and financing costs. Assumptions include average net production of approximately 57 Mboepd over the period of 2025 to 2029, average net production of approximately 63 Mboepd over the period of 2030 to 2034, average Brent oil prices of USD 75 to 95 per bbl escalating by 2% per year, and average Brent to Western Canadian Select differentials and average gas prices as estimated by IPC’s independent reserves evaluator and as further described in the MCR. IPC’s market capitalization is at close on January 31, 2025 (USD 1,557 million based on 146.8 SEK/share, 117.7 million IPC shares outstanding (net of treasury shares) and exchange rate of 11.10 SEK/USD). IPC’s current business plans and assumptions, and the business environment, are subject to change. Actual results may differ materially from forward-looking estimates and forecasts. See “Forward-Looking Statements” and “Non-IFRS Measures” below.

International Petroleum Corp. (IPC) is an international oil and gas exploration and production company with a high quality portfolio of assets located in Canada, Malaysia and France, providing a solid foundation for organic and inorganic growth. IPC is a member of the Lundin Group of Companies. IPC is incorporated in Canada and IPC’s shares are listed on the Toronto Stock Exchange (TSX) and the Nasdaq Stockholm exchange under the symbol “IPCO”.

For further information, please contact:

Rebecca Gordon SVP Corporate Planning and Investor Relations rebecca.gordon@international-petroleum.com Tel: +41 22 595 10 50		Or		Robert Eriksson Media Manager reriksson@rive6.ch Tel: +46 701 11 26 15

This information is information that International Petroleum Corporation is required to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 07:30 CET on February 11, 2025. The Corporation’s audited condensed consolidated financial statements (Financial Statements) and management’s discussion and analysis (MD&A) for the three months and year ended December 31, 2024 have been filed on SEDAR+ (www.sedarplus.ca) and are also available on the Corporation’s website (www.international-petroleum.com).

Forward-Looking Statements
This press release contains statements and information which constitute “forward-looking statements” or “forward-looking information” (within the meaning of applicable securities legislation). Such statements and information (together, “forward-looking statements”) relate to future events, including the Corporation’s future performance, business prospects or opportunities. Actual results may differ materially from those expressed or implied by forward-looking statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Forward-looking statements speak only as of the date of this press release, unless otherwise indicated. IPC does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.

All statements other than statements of historical fact may be forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, forecasts, guidance, budgets, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “forecast”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “budget” and similar expressions) are not statements of historical fact and may be “forward-looking statements”.

Forward-looking statements include, but are not limited to, statements with respect to:

2025 production ranges (including total daily average production), production composition, cash flows, operating costs and capital and decommissioning expenditure estimates;
Estimates of future production, cash flows, operating costs and capital expenditures that are based on IPC’s current business plans and assumptions regarding the business environment, which are subject to change;
IPC’s financial and operational flexibility to navigate the Corporation through periods of volatile commodity prices;
The ability to fully fund future expenditures from cash flows and current borrowing capacity;
IPC’s intention and ability to continue to implement its strategies to build long-term shareholder value;
The ability of IPC’s portfolio of assets to provide a solid foundation for organic and inorganic growth;
The continued facility uptime and reservoir performance in IPC’s areas of operation;
Development of the Blackrod project in Canada, including estimates of resource volumes, future production, timing, regulatory approvals, third party commercial arrangements, breakeven oil prices and net present values;
Current and future production performance, operations and development potential of the Onion Lake Thermal, Suffield, Brooks, Ferguson and Mooney operations, including the timing and success of future oil and gas drilling and optimization programs;
The potential improvement in the Canadian oil egress situation and IPC’s ability to benefit from any such improvements;
The ability of IPC to achieve and maintain current and forecast production in France and Malaysia;
The intention and ability of IPC to acquire further common shares under the NCIB, including the timing of any such purchases;
The return of value to IPC’s shareholders as a result of the NCIB;
IPC’s ability to implement its GHG emissions intensity and climate strategies and to achieve its net GHG emissions intensity reduction targets;
IPC’s ability to implement projects to reduce net emissions intensity, including potential carbon capture and storage;
Estimates of reserves and contingent resources;
The ability to generate free cash flows and use that cash to repay debt;
IPC’s continued access to its existing credit facilities, including current financial headroom, on terms acceptable to the Corporation;
IPC’s ability to identify and complete future acquisitions;
Expectations regarding the oil and gas industry in Canada, Malaysia and France, including assumptions regarding future royalty rates, regulatory approvals, legislative changes, and ongoing projects and their expected completion; and
Future drilling and other exploration and development activities.

Statements relating to “reserves” and “contingent resources” are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and that the reserves and resources can be profitably produced in the future. Ultimate recovery of reserves or resources is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

Although IPC believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because IPC can give no assurances that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks.

These include, but are not limited to general global economic, market and business conditions, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to reserves, resources, production, revenues, costs and expenses; health, safety and environmental risks; commodity price fluctuations; interest rate and exchange rate fluctuations; marketing and transportation; loss of markets; environmental and climate-related risks; competition; incorrect assessment of the value of acquisitions; failure to complete or realize the anticipated benefits of acquisitions or dispositions; the ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals; and changes in legislation, including but not limited to tax laws, royalties, environmental and abandonment regulations.

Additional information on these and other factors that could affect IPC, or its operations or financial results, are included in the MD&A (See “Risk Factors”, “Cautionary Statement Regarding Forward-Looking Information” and “Reserves and Resources Advisory” therein), the Corporation’s material change report dated February 11, 2025 (MCR), the Corporation’s Annual Information Form (AIF) for the year ended December 31, 2023, (See “Cautionary Statement Regarding Forward-Looking Information”, “Reserves and Resources Advisory” and “Risk Factors”) and other reports on file with applicable securities regulatory authorities, including previous financial reports, management’s discussion and analysis and material change reports, which may be accessed through the SEDAR+ website (www.sedarplus.ca) or IPC’s website (www.international-petroleum.com).

Management of IPC approved the production, operating costs, operating cash flow, capital and decommissioning expenditures and free cash flow guidance and estimates contained herein as of the date of this press release. The purpose of these guidance and estimates is to assist readers in understanding IPC’s expected and targeted financial results, and this information may not be appropriate for other purposes.

Estimated FCF generation is based on IPC’s current business plans over the periods of 2025 to 2029 and 2030 to 2034, including net debt of USD 209 million as at December 31, 2024, with assumptions based on the reports of IPC’s independent reserves evaluators, and including certain corporate adjustments relating to estimated general and administration costs and hedging, and excluding shareholder distributions and financing costs. Assumptions include average net production of approximately 57 Mboepd over the period of 2025 to 2029, average net production of approximately 63 Mboepd over the period of 2030 to 2034, average Brent oil prices of USD 75 to 95 per bbl escalating by 2% per year, and average Brent to Western Canadian Select differentials and average gas prices as estimated by IPC’s independent reserves evaluator and as further described in the MCR. IPC’s current business plans and assumptions, and the business environment, are subject to change. Actual results may differ materially from forward-looking estimates and forecasts.

Non-IFRS Measures
References are made in this press release to “operating cash flow” (OCF), “free cash flow” (FCF), “Earnings Before Interest, Tax, Depreciation and Amortization” (EBITDA), “operating costs” and “net debt”/”net cash”, which are not generally accepted accounting measures under International Financial Reporting Standards (IFRS) and do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with similar measures presented by other public companies. Non-IFRS measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.

The definition of each non-IFRS measure is presented in IPC’s MD&A (See “Non-IFRS Measures” therein).

Operating cash flow
The following table sets out how operating cash flow is calculated from figures shown in the Financial Statements:

	Three months ended December 31				Year ended December 31
USD Thousands	2024		2023		2024		2023
Revenue	199,124		198,460		797,783		853,906
Production costs and net sales of diluent to third party¹	(119,371	)	(126,414	)	(447,481	)	(491,303	)
Current tax	(1,595	)	1,588		(8,313	)	(14,457	)
Operating cash flow	78,158		73,634		341,989		348,146

¹ Include net sales of diluent to third party amounting to USD 737 thousand for the fourth quarter of 2024 and the year ended December 31, 2024.

The operating cash flow for the year ended December 31, 2023 including the operating cash flow contribution of the Brooks assets acquisition from the effective date of January 1, 2023 to the completion date of March 3, 2023 amounted to USD 353,048 thousand.

Free cash flow
The following table sets out how free cash flow is calculated from figures shown in the Financial Statements:

	Three months ended December 31				Year ended December 31
USD Thousands	2024		2023		2024		2023
Operating cash flow – see above	78,158		73,634		341,989		348,146
Capital expenditures	(126,256	)	(128,825	)	(434,713	)	(312,729	)
Abandonment and farm-in expenditures¹	(3,364	)	(1,516	)	(8,302	)	(9,199	)
General, administration and depreciation expenses before depreciation²	(3,569	)	(5,762	)	(14,814	)	(16,886	)
Cash financial items³	(6,445	)	(2,219	)	(19,657	)	(5,812	)
Free cash flow	(61,476	)	(64,688	)	(135,497	)	3,520

¹ See note 19 to the Financial Statements
² Depreciation is not specifically disclosed in the Financial Statements
³ See notes 5 and 6 to the Financial Statements

The free cash flow for the year ended December 31, 2023 including the free cash flow contribution of the Brooks assets acquisition from the effective date of January 1, 2023 to the completion date of March 3, 2023 amounted to USD 2,689 thousand. Free cash flow is before shareholder distributions and financing costs.

EBITDA
The following table sets out the reconciliation from net result from the consolidated statement of operations to EBITDA:

	Three months ended December 31				Year ended December 31
USD Thousands	2024		2023		2024		2023
Net result	415		29,710		102,219		172,979
Net financial items	35,767		6,509		59,709		22,736
Income tax	3,852		4,691		33,325		55,362
Depletion and decommissioning costs	32,087		30,434		128,392		101,922
Depreciation of other tangible fixed assets	2,430		1,309		8,933		7,812
Exploration and business development costs	1,725		348		2,069		2,355
Depreciation included in general, administration and depreciation expenses¹	308		389		1,241		1,569
Sale of assets²	(400	)	(7,106	)	(400	)	(19,018	)
EBITDA	76,814		66,284		335,488		345,717

¹ Item is not shown in the Financial Statements
² Sale of assets is included under “Other income/(expense)” but not specifically disclosed in the Financial Statements

The EBITDA for the year ended December 31, 2023 including the EBITDA contribution of the Brooks assets acquisition from the effective date of January 1, 2023 to the completion date of March 3, 2023 amounted to USD 350,618 thousand.

Operating costs
The following table sets out how operating costs is calculated:

	Three months ended December 31				Year ended December 31
USD Thousands	2024		2023		2024		2023
Production costs	120,108		126,414		448,218		491,303
Cost of blending	(36,036	)	(44,473	)	(152,735	)	(172,996	)
Change in inventory position	(4,633	)	1,427		(1,473	)	3,655
Operating costs	79,439		83,368		294,010		321,962

The operating costs for the year ended December 31, 2023 including the operating costs contribution of the Brooks assets acquisition from the effective date of January 1, 2023 to the completion date of March 3, 2023 amounted to USD 328,763 thousand.

Net cash / (debt)
The following table sets out how net cash / (debt) is calculated from figures shown in the Financial Statements:

USD Thousands	December 31, 2024		December 31, 2023
Bank loans	(5,121	)	(9,031	)
Bonds¹	(450,000	)	(450,000	)
Cash and cash equivalents	246,593		517,074
Net cash / (debt)	(208,528	)	58,043

¹ The bond amount represents the redeemable value at maturity (February 2027).

Reserves and Resources Advisory
This press release contains references to estimates of gross and net reserves and resources attributed to the Corporation’s oil and gas assets. For additional information with respect to such reserves and resources, refer to “Reserves and Resources Advisory” in the MD&A and the MCR. Light, medium and heavy crude oil reserves/resources disclosed in this press release include solution gas and other by-products. Also see “Supplemental Information regarding Product Types” below.

Reserve estimates, contingent resource estimates and estimates of future net revenue in respect of IPC’s oil and gas assets in Canada are effective as of December 31, 2024, and are included in the reports prepared by Sproule Associates Limited (Sproule), an independent qualified reserves evaluator, in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook (the COGE Handbook) and using Sproule’s December 31, 2024 price forecasts.

Reserve estimates, contingent resource estimates and estimates of future net revenue in respect of IPC’s oil and gas assets in France and Malaysia are effective as of December 31, 2024, and are included in the report prepared by ERC Equipoise Ltd. (ERCE), an independent qualified reserves auditor, in accordance with NI 51-101 and the COGE Handbook, and using Sproule’s December 31, 2024 price forecasts.

The price forecasts used in the Sproule and ERCE reports are available on the website of Sproule (sproule.com) and are contained in the MCR. These price forecasts are as at December 31, 2024 and may not be reflective of current and future forecast commodity prices.

The reserve life index (RLI) is calculated by dividing the 2P reserves of 493 MMboe as at December 31, 2024 by the mid-point of the 2025 CMD production guidance of 43,000 to 45,000 boepd. Reserves replacement ratio is based on 2P reserves of 468 MMboe as at December 31, 2023, sales production during 2024 of 16.6 MMboe, net additions to 2P reserves during 2024 of 41.7 MMboe and 2P reserves of 493 MMboe as at December 31, 2024.

The reserves and resources information and data provided in this press release present only a portion of the disclosure required under NI 51-101. All of the required information will be contained in the Corporation’s Annual Information Form for the year ended December 31, 2024, which will be filed on SEDAR+ (accessible at www.sedarplus.ca) on or before April 1, 2025. Further information with respect to IPC’s reserves, contingent resources and estimates of future net revenue, including assumptions relating to the calculation of net present value and other relevant information related to the contingent resources disclosed, is disclosed in the MCR available under IPC’s profile on www.sedarplus.ca and on IPC’s website at www.international-petroleum.com.

IPC uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). A BOE conversion ratio of 6:1 is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a 6:1 conversion basis may be misleading as an indication of value.

Supplemental Information regarding Product Types

The following table is intended to provide supplemental information about the product type composition of IPC’s net average daily production figures provided in this press release:

	Heavy Crude Oil (Mbopd)	Light and Medium Crude Oil (Mbopd)	Conventional Natural Gas (per day)	Total (Mboepd)
Three months ended
December 31, 2024	24.3	7.1	95.9 MMcf (16.0 Mboe)	47.4
December 31, 2023	25.7	6.6	103.8 MMcf (17.3 Mboe)	49.6
Year ended
December 31, 2024	23.9	7.7	95.1 MMcf (15.8 Mboe)	47.4
December 31, 2023	25.8	8.1	102.8 MMcf (17.1 Mboe)	51.1

This press release also makes reference to IPC’s forecast total average daily production of 43,000 to 45,000 boepd for 2025. IPC estimates that approximately 55% of that production will be comprised of heavy oil, approximately 12% will be comprised of light and medium crude oil and approximately 33% will be comprised of conventional natural gas.

Currency
All dollar amounts in this press release are expressed in United States dollars, except where otherwise noted. References herein to USD mean United States dollars. References herein to CAD mean Canadian dollars.

The MIL Network –

February 11, 2025

MIL-OSI Russia: Teachers and students of the NSU SUNC assessed the advantages of the new school buildings

Translartion. Region: Russians Fedetion –

Source: Novosibirsk State University – Novosibirsk State University –

It was completed last summer construction of first stage facilities, including an educational building and a leisure center Specialized educational and scientific center of NSU, better known to Novosibirsk residents as the Physics and Mathematics School or FMSh.

Even at the construction stage, both the university management and representatives of the Novosibirsk Region government repeatedly emphasized that this was not just about new buildings, but about creating a new type of school using the most advanced technologies, both educational and engineering.

— No school in the country has such equipment for conducting experimental classes, and only a few schools in the world can boast of this. This allows us to conduct training at the most advanced level, which, in turn, brings victories to the students of the physics and mathematics school at world Olympiads in various subjects. This focus on the best, which is the basis of the campus project, allows us to evaluate it as a world-class facility, — emphasized Vice-Governor of the Novosibirsk Region Irina Manuilova during her latest visit to the construction site.

Six months have passed, and teachers and students have been able to verify from their own experience how the school passage itself has changed after the move and whether the generous predictions about the new type of school have come true.

— Work in the old and new buildings are as different as heaven and earth. In the old building, we organized training based on the principle of “it doesn’t matter where we gather, the main thing is that we are together and united by a common goal.” Now, we have at our disposal a multitude of tools, opportunities, and enough space to achieve maximum results in our work, — noted Roman Bredikhin, Associate Professor of the Chemistry Department of the NSU SUNC.

Large spaces become the foundation for students’ creativity. They allow changing the configuration of study places in the classroom to suit the tasks of a specific lesson: separate tables for tests or exams, team tables for group work, and so on.

Another advantage was the engineering infrastructure of the academic building.

— For example, in chemical laboratories, individual equipment of workplaces is provided, right down to personal exhaust hoods and gas distribution to workplaces. This allows us to conduct experiments in an inert environment with protection from oxygen and moisture contained in the air, to carry out those syntheses and implement such projects that were unthinkable in the old building, — said Roman Bredikhin.

As a result, the school staff faced a certain challenge: the new buildings make it possible to significantly expand the scope of projects carried out by schoolchildren.

— In fact, we often suggest now: guys, let’s bring your idea to life and it will be a demonstration experiment that you will leave as a keepsake at school. And this approach finds a response, — concluded Roman Bredikhin.

The students themselves agreed with his assessment of the changes in school life after the move.

— Of course, the old building had its own atmosphere, which was formed by generations of previous graduates. But I like this building more — there is an emphasis on everything new, new classrooms, recreation areas, areas for a variety of leisure activities, and most importantly — there is enough space here to be able to be creative from the heart, both in terms of studying and in creativity outside of class, — shared his opinion Kirill Volodin, a student of class 11-4.

— The area here is large and the buildings are impressive in their technological advancement. But at the same time, they are planned in such a way that everyone can find a place to immerse themselves in their project or study material, and nothing will disturb you. Of course, I, like many others, have certain pleasant memories associated with the old building, but I do not regret moving at all. I like studying in the new buildings much more, — added Polina Brezhneva, a student in class 11-5.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

February 11, 2025

MIL-OSI: Unaudited financial results of LHV Group for Q4 and 12 months of 2024

Source: GlobeNewswire (MIL-OSI)

The year-end was a successful one for LHV, supported by strong loan issue and deposit taking. The company met the profit target set in the financial plan.

In 2024, AS LHV Group generated net revenue of 338.3 million euros, i.e., 11% more than in the previous year, thanks to strong business growth. Annual net interest income increased to 273.3 million euros (+8%) and net fee and commission income to 60.3 million euros (+24%). Consolidated expenditure for 2024 totalled 146.9 million euros, i.e., 14% higher than the previous year. The consolidated net profit of AS LHV Group in 2024 was 150.3 million euros, i.e., 9.4 million euros more than in 2023 (+7%).

Of the subsidiaries, AS LHV Pank earned a total of 140.5 million euros in net profit in 2024, UK Bank Limited 5.8 million euros, AS LHV Varahaldus 1.6 million euros, and AS LHV Kindlustus 1.2 million euros.

By the end of 2024, the consolidated assets of LHV Group increased to 8.74 billion euros, growing by 23% year-on-year, i.e., 1.64 billion euros. In Q4, the volume of assets increased by 12%.

The consolidated loan portfolio of LHV increased by 990 million euros to 4.55 billion euros (+28%) in 2024. In Q4, the loan portfolio increased by 10%, i.e., 426 million euros. Corporate loans increased by 328 million euros over the quarter and retail loans by 98 million euros.

The Group’s consolidated deposits grew by 1.18 billion euros over the year to 6.91 billion euros (+21%). In Q4, deposits increased by 624 million euros, i.e., 10%, while deposits of regular clients increased by 134 million euros.

The total volume of funds managed by LHV increased by 39 million euros to 1.56 billion euros (+3%) over the year. In the last quarter of the year, the volume of funds increased by 37 million euros (+2%).

The number of processed payments related to clients that were financial intermediaries amounted to 74.8 million payments in 2024 (+51% compared to 49.5 million payments in 2023). In Q4, 19.8 million such payments were made, i.e., 6% more than in Q3.

In Q4 of 2024, AS LHV Group’s consolidated net profit amounted to 36.3 million euros, which is 1.6 million euros more than in Q3 (+5%). On a year-on-year basis, quarterly profit increased by 11%. AS LHV Pank earned 34.8 million euros in net profit in Q4. In the last quarter of the year, LHV Bank Ltd earned a net profit of 640 thousand euros, AS LHV Varahaldus 509 thousand euros, and AS LHV Kindlustus 68 thousand euros. The return on equity attributable to the shareholders of the Group was 22% in Q4.

The Group’s consolidated net income increased by 2% in Q4 compared to the previous quarter of the year to 84.9 million euros. Net income was 1% higher than last year. Net interest income was generated at 66.6 million euros, and net fee and commission income at 17.3 million euros. Consolidated operating expenses were 40.8 million euros in Q4, which is 14% higher than in Q3 and 13% higher than a year earlier.

Income statement, EUR thousand	Q4-2024	Q3-2024	Q4-2023
Net interest income	66 556	67 426	67 670
Net fee and commission income	17 324	14 630	14 264
Net gains from financial assets	-198	799	480
Other income	1 190	354	1 243
Result from insurance activities	49	357	371
Total revenue	84 921	83 566	84 029
Staff costs	-22 831	-19 499	-17 765
Office rent and expenses	-715	-801	-872
IT expenses	-4 270	-3 612	-4 067
Marketing expenses	-2 086	-1 298	-1 117
Other operating expenses	-10 885	-10 702	-12 366
Total operating expenses	-40 786	-35 911	-36 187
EBIT	44 136	47 655	47 841
Earnings before impairment losses	44 136	47 655	47 841
Impairment losses on loans and advances	-1 085	-7 277	-9 430
Income tax	-6 733	-5 681	-5 643
Net profit	36 318	34 698	32 768
Profit attributable to non-controlling interest	566	312	231
Profit attributable to share holders of the parent	35 752	34 386	32 537

Profit attributable to non-controlling interest	0.11	0.11	0.10
Profit attributable to share holders of the parent	0.11	0.10	0.10

Balance sheet, EUR thousand	Dec 2024	Sep 2024	Dec 2023
Cash and cash equivalents	3 818 305	3 376 016	3 119 394
Financial assets	309 804	259 933	340 341
Loans granted	4 591 906	4 168 778	3 591 517
Loan impairments	-39 813	-42 543	-29 725
Receivables from customers	5 367	10 598	49 505
Other assets	50 742	47 567	54 559
Total assets	8 736 311	7 820 348	7 125 590
Demand deposits	4 855 101	4 160 516	3 808 162
Term deposits	2 055 009	2 125 844	1 922 843
Loans received	927 686	679 550	563 634
Loans received and deposits from customers	7 837 795	6 965 910	6 294 639
Other liabilities	93 601	108 605	147 934
Subordinated loans	126 257	106 079	126 652
Total liabilities	8 057 653	7 180 595	6 569 225
Equity	678 657	639 754	556 365
Minority interest	8 571	8 006	7 937
Total liabilities and equity	8 736 311	7 820 348	7 125 590

LHV Group continued its rapid growth in 2024. The strong end to the year was influenced by a good level of client activity and higher than previous fee and commission income. The decline in interest income was mitigated by strong growth in the loan portfolio. Thanks to the good quality of the portfolio and the improvement in the macroeconomic situation, LHV reduced write-downs. The updated financial plan was accurately fulfilled by the end of the year.

The number of clients of LHV Pank increased by 10,900 to 455 thousand clients in Q4. Over the year, the number of the bank’s clients increased by 38,000, i.e., more than 9%. At the end of the year, clients also actively used LHV’s banking services, and the decrease in interest income was offset by better fee and commission income, especially from investment banking. As interest income continues to be under pressure, the bank is paying attention to limiting costs by increasing efficiency. In this regard, LHV Pank announced layoffs in December, reducing the workforce by 44 people.

The loan issue intensified in the last months of the year and, in Q4, the loan portfolio of LHV Pank increased by 300 million euros. The quality of the loan portfolio has remained stronger than planned, and write-downs on loans were reduced. The deposits of LHV Pank increased by 577 million euros in the last quarter of the year, of which 180 million euros came from deposits of regular clients and 450 million euros from financial intermediaries, and platform deposits were reduced. The bank is still keeping the focus on growing deposits. At the beginning of October, the bank also issued 250 million euros worth of covered bonds.

At the beginning of December, The Banker magazine of the Financial Times declared LHV the best bank of the year in Estonia. Furthermore, Q4 included a review of several important cooperation projects: LHV will be the main sponsor of both Estonian football and the biathlon in the coming years.

The loan portfolio of LHV Bank operating in the United Kingdom grew by more than half for the second quarter in a row. The loan portfolio increased by 126 million euros, while another 119 million euros of loans have been approved but not issued by the Credit Committee. The quality of the loan portfolio is generally strong. The volume of the deposits of LHV Bank increased by 70 million euros, with a total of nearly 11,600 depositors being involved. The volume of payments by financial intermediaries rose to record levels at the end of the year.

In December, LHV Bank opened a new mobile bank for its first clients, through which private persons can open an account and make payments. Further, the offer and app will continue to be improved, and their wider introduction to the market will be held in order to attract deposits directly from retail clients.

By the end of the year, the number of active clients of LHV Varahaldus making monthly contributions was 114,000. Nearly 14,000 of them submitted applications for larger contributions to the II pillar. Seasonally, contributions to the III pillar were actively made again. Operating income and expenses for the quarter remained at the level of the previous quarter. The profit was affected by a more modest financial income from the growth of the funds’ own units than before, but the financial plan still managed to be outpaced.

The stock markets had a strong quarter driven by tech stocks and the U.S. market. The quarterly rate of return of the pension funds M and L managed by LHV was 1.0% and 0.6%, respectively, while XL decreased by 1.4% against the background of a weak December. The rate of return of the more conservative funds XS and S is 0.8% and 1.2%, respectively. Pensionifond Indeks increased by 4.2%; Pensionifond Roheline lost 5.7% in value over the quarter.

For LHV Kindlustus, strong sales results, but also seasonally increased loss events, set the tone at the end of the year. The number of policies in force and clients is in a stable growth trend. A good sales result was shown by most types of insurance. Revenue from the insurance service continued to grow, while operating expenses increased. Gross losses increased a little faster compared to earned income. For the year as a whole, LHV Kindlustus earned 1.2 million from net profit and, thus, outperformed the financial plan.

LHV Group’s annual cost/income ratio turned out to be 43.4%, and return on equity 24.5%. The Group’s liquidity and capitalisation remain strong. In November, LHV Group conducted a successful offering of subordinated bonds, raising 20 million euros in capital from investors. LHV Group will publish the 2025 financial plan and five-year forecast on 13 February.

Comment by Madis Toomsalu, Chairman of the Management Board at LHV Group:
“The changes taking place in the world are probably the biggest in the last half century. We are witnessing the growth of geopolitical ambitions, structural changes in the economy, the decline of free trade, and the exponential growth of technological development.

Despite the different directions, 2024 was a successful year for LHV. After the supervisory exchange, we were able to restore the historically ambitious growth in business volumes. With a strong growth of 1 billion euros, i.e., 28% of the loan portfolio and a higher base interest rate, we achieved the highest business volumes and financial results in history.

In Estonia, we have grown into the second largest bank in terms of corporate loans. At the same time, the volume of home loans and the insurance business are also growing rapidly. The number of the Estonian bank’s clients increased by 38,000 and activity increased in all the important areas. In the United Kingdom, the corporate loan portfolio already exceeded 300 million euros by the end of the year, which is why we are increasing our long-term expectations. This is also reflected in the mobile app launched at the end of the year.”

To access the reports of AS LHV Group, please visit the website at: https://investor.lhv.ee/en/reports/.

In order to present the financial results, LHV Group will organise an investor meeting via the Zoom webinar platform. The virtual investor meeting will take place on 11 February at 9.00, before the market opens. The presentation will be in Estonian. We kindly ask you to register at the following address: https://lhvbank.zoom.us/webinar/register/WN_UP-IqHxNSRSVeoKeUcTOfQ.

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,200 people. As at the end of December, LHV’s banking services are being used by nearly 460,000 clients, the pension funds managed by LHV have 114,000 active clients, and LHV Kindlustus is protecting a total of 170,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.

Priit Rum
Communications Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee

Attachments

The MIL Network –

February 11, 2025

MIL-Evening Report: Australia improves on global corruption rankings, but there is still work to be done

Source: The Conversation (Au and NZ) – By A J Brown, Professor of Public Policy & Law, Centre for Governance & Public Policy, Griffith University

Australia has turned the corner on its decade-long slide on Transparency International’s annual Corruption Perceptions Index (CPI), once again ranking in the top ten least corrupt countries in the world. The fresh ranking comes just ahead of a federal election, which will determine the future of many key anti-corruption reforms.

In the latest 2024 index, Australia rose two points to a score of 77 on the 100-point scale. The index is the world’s most widely cited indicator of how countries are faring in controlling corruption in government.

The result confirms a positive trend, placing Australia back in the top 10 countries for the first time since 2016. It now sits at equal 10th alongside Iceland and Ireland.

In 2012, Australia was ranked as the 7th least corrupt country in the world, with a score of 85 out of 100. But by 2021 it had fallen to a score of 73 and 18th place on the index.

With that fall widely attributed to a decade of complacency and foot-dragging on efforts to bolster integrity in government, the confirmed recovery is a major affirmation of reforms of the past three years. It also highlights some stark choices for policymakers heading into the 2025 federal election.

The best – and worst – places for corruption

Globally, Denmark again tops the index with a score of 90, followed by Finland on 88. The most corrupt countries in the world are Venezuela (10), Somalia (9) and South Sudan (8).

However, the global outlook is highly challenging. Over the past ten years, many more countries have now declined significantly in their anti-corruption scores (47 countries) than have improved on the index (32 countries).

Australia’s recovery is therefore now bucking a negative trend, including the “integrity complacency” still affecting many other developed countries. The United Kingdom (71/100) and United States (65/100) have now fallen to their own lowest-ever scores on the index.

The index is compiled from 13 independent surveys of professional and expert perceptions of public sector corruption across the world. Nine sources were used to inform Australia’s result – including include Freedom House, the World Justice Project and the World Bank’s Executive Opinion Survey.

Two sources had Australia still declining, including the global academic-led Varieties of Democracy (V-Dem) Project. However, six sources rate Australia as improving, led by the Economist Intelligence Unit’s assessment, conducted most recently in September 2024.

Australian reforms are making a difference

There’s now little doubt that the federal integrity reforms of the past three years are a major reason for Australia’s new direction of travel. These include the creation of the National Anti-Corruption Commission in 2022, as well as the long overdue strengthening of Australia’s foreign bribery laws in 2024. A renewed commitment to the global Open Government Partnership, much of the response to Robodebt, and measures to strengthen merit in public appointments, such as replacement of the Administrative Appeals Tribunal, have also helped.

Long overdue anti-money laundering laws were also introduced late in 2024, beyond the time frame for data collection for the latest index. While the impact of these on expert opinion will be known in the future, they highlight that much of the business of Australia’s anti-corruption “catch up” is unfinished and ongoing.

The result poses a challenge for any policymakers suffering under the illusion that Australia’s integrity systems are somehow “fixed”.

From an international perspective, Australia is yet to move to control secret and sham company ownerships – the major vehicle used to hide bribes and stolen public money. This is despite championing transparency in the beneficial ownership of companies since hosting the G20 in 2014.

The need to bring transparency and integrity to federal political donation and funding laws continues to overshadow the last weeks of the 47th parliament. Negotiations between the major parties have failed to inspire confidence among independents, and much of the public.

Effective control of undue influence in decision-making, pork-barrelling, professional lobbying and “revolving door” jobs for politicians and public servants are ongoing challenges.

And in a clear signal to both the Labor government and the Coalition, a team of cross-benchers, led by independent Andrew Wilkie, have introduced a bill to establish a Whistleblower Protection Authority. This remains the single biggest gap in Australia’s integrity system and the most major anti-corruption reform still needed.

Even before Australia hit its 2022 low, some leaders were softening citizens up to accept a reduced position on the index. In 2018, Coalition Attorney-General Christian Porter claimed Australia had remained “consistently in the top 20 countries on Earth for low corruption”. This prompted independent Rebekha Sharkie to point out that Australia had fallen from the top ten: “the trajectory is not good”.

By contrast, Labor leader Anthony Albanese went into the last election accusing the Morrison government of dragging Australia down on corruption, and promising Labor would do better. He said:

The health of our democracy, the integrity of our institutions, the transparency and fairness of our laws, the harmony and cohesion of our population. These aren’t just noble ideals. They are a powerful defence against the threat of modern authoritarianism.

Amid the challenges, there is hope. The federal parliament’s reform record of the past three years is clearly a big step in the right direction.

However, the climb back to 77 on the Corruption Perceptions Index shows it’s clearly just the first step in securing Australia’s reputation as a democracy that protects itself against undue influence and abuse of power.

A J Brown AM is Chair of Transparency International Australia. He has received funding from the Australian Research Council and all Australian governments for research on public interest whistleblowing, integrity and anti-corruption reform through partners including Australia’s federal and state Ombudsmen and other regulatory agencies, parliaments, anti-corruption agencies and private sector bodies. He was a member of the Commonwealth Ministerial Expert Panel on Whistleblowing (2017-2019) and is a member of the Queensland Public Sector Governance Council.

– ref. Australia improves on global corruption rankings, but there is still work to be done – https://theconversation.com/australia-improves-on-global-corruption-rankings-but-there-is-still-work-to-be-done-249458

MIL OSI Analysis – EveningReport.nz –

February 11, 2025
MIL-OSI New Zealand: 2025 Pacific Judicial Conference

Source: New Zealand Governor General

Rau rangatira mā, e huihui nei, tēnei aku mihi nui ki a koutou. Nau mai haere mai ki Te Whare Kawana o Tāmaki Makaurau. Kia ora tātou katoa.

I’d like to specifically acknowledge: Rt Hon Dame Helen Winkelmann, Chief Justice of New Zealand, and Rt Hon Winston Peters, Deputy Prime Minister.

And to all our very distinguished international guests here this evening – including representatives from 15 Pacific Island nations, as well as Singapore, Malaysia, Brunei Darussalam, the Philippines, Australia, the United Kingdom, and the United States of America. I’m delighted to note that Chief Justice of the Federal Court of Australia, The Honourable Debra Mortimer, is in fact a New Zealander from Kaipara.

I understand that the last Pacific Judicial Conference to be held in Aotearoa New Zealand was over ten years ago, in 2014, when my predecessor, Sir Jerry Mateparae, hosted an equivalent gathering here at Government House Auckland. It feels especially fitting that this conference should return to Tāmaki Makaurau, this beautiful city, and one of the world’s most diverse, which has long borne the mantle of Polynesian Capital of the World.

Such a diverse and distinguished gathering no doubt brings with you an immense breadth of experiences, perspectives, and areas of legal expertise.

It was former American Chief Justice, Earl Warren, who once said: ‘It is the spirit and not the form of the law that keeps justice alive.’ As leaders of your respective and highly-diverse judiciaries, I’m sure you find yourselves grappling with many of the same issues: safeguarding judicial independence and respect for the rule of law; the opportunities and dangers of technology; ensuring diversity within the judiciary; geopolitical unrest; and the ongoing existential threat of climate change – all topics I’m heartened to note on the agenda for this conference.

Its overarching theme, ‘Strengthening the Institution of the Judiciary – Kia Tū Pakari ai te Whare Whakawā’, feels particularly apt in the face of such issues – acknowledging, as it does, that without strong and trusted public institutions, society loses its capacity to meet and overcome these challenges.

I trust that these days together afford an environment conducive to rich and challenging discussions, and lay the foundation for lasting relationships and productive collaboration across your judiciaries.

Throughout my own career, straddling both academia and the public sector, I recall how enriching and rewarding I found these kinds of gatherings – leaving me so often deeply inspired, and filled with a renewed sense of purpose as I returned to my role, whether leading a university, or advocating for the wellbeing of children and families.

In this next stage of my career, serving as New Zealand’s Governor-General, I have found myself with my own responsibilities in the application and safeguarding of New Zealand law: responsibilities I hold most sacred. They have also given me a new and profound appreciation for the judiciary, and the demanding work you do in the service of society.

The questions that you contend with fundamentally shape the world we inhabit and share: determining whether or not our societies are fair; whether or not people are treated equally, regardless of gender or beliefs or background; and whether or not our planet will survive.

I acknowledge, in grappling with these questions through the application of the law and your own scrupulous intellectual and moral standards, the great and often lonely responsibility you each bear. However, I have little doubt that you view that responsibility, and your service to your respective countries, not as a burden, but a privilege.

In te reo Māori, we have a whakataukī, or a proverb, which says: ‘Ka kuhu au ki te ture, hei matua mō te pani. I seek refuge in the law for it is a parent to the oppressed.’ I wish to take this opportunity to thank you, for all that you do as parents of the oppressed, and our societies’ upholders of goodness, fairness, and justice.

I also wish to once again thank Dame Helen – our own outstanding Chief Justice – for so graciously stepping into the Administrator’s role whenever I have been fulfilling my vice-regal duties overseas.

To those of you visiting New Zealand for the first time, I hope you have the opportunity to experience a little more of our country while you are here, and to spend some time exploring this beautiful city. In the meantime, I wish you all a most rewarding and enjoyable few days.

Nō reira, tēnā koutou, tēnā koutou, tēnā tātou katoa.

MIL OSI New Zealand News –

February 11, 2025
MIL-OSI USA News: Adjusting Imports of Steel into The United States
Source: The White House
class=”has-text-align-center”>BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

A PROCLAMATION
1. On January 11, 2018, the Secretary of Commerce (Secretary) transmitted to me a report on the Secretary’s investigation into the effect of imports of steel mill articles (steel articles) on the national security of the United States under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862) (section 232). The Secretary found and advised me of his opinion that steel articles are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.
2. In Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States), I concurred in the Secretary’s finding that steel articles, as defined in clause 1 of Proclamation 9705 (as amended by clause 8 of Proclamation 9711 of March 22, 2018 (Adjusting Imports of Steel Into the United States)), are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States, and decided to adjust the imports of steel articles by imposing a 25 percent ad valorem tariff on such articles imported from most countries. Proclamation 9705 further stated that any country with which the United States has a security relationship is welcome to discuss alternative ways to address the threatened impairment of the national security caused by imports from that country, and noted that, should the United States and that country arrive at a satisfactory alternative means to address the threat to the national security such that the President determines that imports from that country no longer threaten to impair the national security, I may remove or modify the restriction on steel articles imports from that country and, if necessary, adjust the tariff as it applies to other countries, as the national security interests of the United States require.
3. In Proclamation 9705, I also directed the Secretary to monitor imports of steel articles and inform me of any circumstances that in the Secretary‘s opinion might indicate the need for further action under Section 232, as amended, with respect to such imports. Pursuant to Proclamation 9705, the Secretary was authorized to provide relief from the additional duties, based on a request from a directly affected party located in the United States, for any steel article determined not to be produced in the United States in a sufficient and reasonably available amount or of a satisfactory quality, or based upon specific national security considerations.
In subsequent proclamations, I noted the conclusion of discussions or the agreement on certain measures with the Argentine Republic (Argentina), Proclamation 9759 of May 31, 2018 (Adjusting Imports of Steel Into the United States); the Commonwealth of Australia (Australia), Proclamation 9759; the Federative Republic of Brazil (Brazil), Proclamation 9759; Proclamation 10064 of August 28, 2020 (Adjusting Imports of Steel Into the United States); Canada, Proclamation 9894 of May 19, 2019 (Adjusting Imports of Steel Into the United States; the United Mexican States (Mexico), Proclamation 9894; and the Republic of Korea (South Korea), Proclamation 9740 of April 30, 2018 (Adjusting Imports of Steel Into the United States). President Biden noted the conclusion of discussions or the agreement on certain measures with the European Union (EU) on behalf of its member countries, Proclamation 10328 of December 27, 2021 (Adjusting Imports of Steel Into the United States); Proclamation 10691 of December 28, 2023 (Adjusting Imports of Steel Into the United States); Japan, Proclamation 10356 of March 31, 2022 (Adjusting Imports of Steel Into the United States); and the United Kingdom (UK), Proclamation 10406 of May 31, 2022 (Adjusting Imports of Steel Into the United States), on alternative ways to address the threat to the national security. In addition, then-President Biden acknowledged the close relationship with Ukraine and exempted steel articles from Ukraine from the tariff. Proclamation 10403 of May 27, 2022 (Adjusting Imports of Steel Into the United States); Proclamation 10588 of May 31, 2023 (Adjusting Imports of Steel Into the United States); Proclamation 10771 of May 31, 2024 (Adjusting Imports of Steel Into the United States). In Proclamation 10783 of July 10, 2024 (Adjusting Imports of Steel Into the United States), President Biden noted that imports of steel articles from Mexico had increased significantly as compared to their levels at the time of Proclamation 9894. Accordingly, he implemented a melt and pour requirement for imports of steel articles that are products of Mexico and increased the section 232 duty rate for imports of steel articles and derivative steel articles that are products of Mexico that are melted and poured in a country other than Mexico, Canada, or the United States.
- The Secretary has informed me that the initial 25 percent ad valorem tariff imposed by Proclamation 9705 has been an effective means of reducing imports, encouraging investment and expansion of production by domestic steel producers, and mitigating the threatened impairment of U.S. national security. Following the initial imposition of 25 percent ad valorem tariffs, the U.S. steel capacity utilization rate increased to above 80 percent.
- The Secretary has also informed me that, notwithstanding the impact of the tariff imposed by Proclamation 9705, imports of steel articles from certain countries exempted from the tariff or subject to alternative agreements have increased significantly, while excess capacity in the global steel industry has begun to increase again in recent years. For example, imports from Canada increased 18 percent since Canada was excluded from the section 232 tariffs. According to the Organization for Economic Cooperation and Development (OECD), global steel excess capacity is projected to reach approximately 630 million metric tons by 2026, more than total steel production in all OECD countries. At the same time, exports of steel from the People’s Republic of China (China) have recently surged, exceeding 114 million metric tons through November 2024 while displacing production in other countries and forcing them to export greater volumes of steel articles and derivative steel articles to the United States.
- Total steel imports as a share of U.S. consumption increased significantly in 2024, reaching nearly 30 percent, similar to the import share of U.S. consumption at the time the Secretary issued his January 11, 2018, report. Imports from countries with which the United States has reached alternative agreements have increased significantly as a share of total imports, from 74 percent in 2018 to 82 percent in 2024, while imports from countries subject to quantitative restrictions remain elevated regardless of changing U.S. demand conditions and the substantial investments made to expand the capabilities of the domestic industry. Increasing and persistently high import volumes from countries exempted from the duties or subject to other alternative agreements like quotas and tariff-rate quotas have captured the benefit of U.S. demand at the domestic industry’s expense and transmitted harmful effects onto the domestic industry. As steel import market share has increased, the domestic industry’s performance has been depressed, resulting in capacity utilization rates persistently lower than the 80 percent target level highlighted in the Secretary’s report.
- The Secretary has informed me that imports of steel articles from Canada and Mexico have increased significantly to levels that once again threaten to impair U.S. national security. Volumes from both Canada and Mexico increased overall, from 7.77 million metric tons in 2020 to 9.14 million metric tons in 2024. Imports have also surged in excess of historical norms of trade across numerous key product lines, such as long reinforcing bars, which have experienced import increases of 1,678 percent from Mexico and 564 percent from Canada. These surges have occurred while authorities in those countries have supported otherwise uncompetitive producers with subsidies and other interventions that have exacerbated the global excess capacity crisis. In addition, increasing import volumes and including Mexico’s imports from China, support a conclusion that there is transshipment or further processing of steel mill articles from countries that remain subject to the additional ad valorem tariff proclaimed in Proclamation 9705, or from countries seeking to evade quantitative restrictions.
- The Secretary has also informed me that alternative agreements with trading partners including Australia, the members of the EU, Japan, and the United Kingdom have been less effective in eliminating the threatened impairment of U.S. national security than the additional ad valorem tariff proclaimed in Proclamation 9705. As a result, imports of steel articles from these countries have increased as a share of total U.S. steel imports from 18.6 percent in 2020 to 20.7 percent in 2024. In addition, from 2022 to 2024, imports from countries subject to quotas (Argentina, Brazil, and South Korea) increased by approximately 1.5 million metric tons, even as U.S. demand declined by more than 6.1 million tons during the period. Argentina has continued to export steel to the United States at unsustainable quantities, especially a recent surge of semifinished products. Furthermore, Argentina’s lack of data transparency has continued to be of concern for the United States. From official trade statistics released by Argentina, it is difficult to assess the levels of steel being imported from places like China and Russia, and other potential sources of excess capacity. Brazilian imports from countries with meaningful levels of overcapacity, specifically China have grown tremendously in recent years, more than tripling since the institution of this quota arrangement.
- At the same time, these alternative agreements have not resulted in sufficient action by these trading partners to address non-market excess capacity caused primarily by China, or sufficient cooperation by these trading partners on issues like trade remedies and customs matters or monitoring bilateral steel trade. Some countries have also welcomed steel industry investments from non-market producers in countries like China seeking to exploit the agreements to obtain preferential access to the U.S. market. The agreements have therefore been detrimental to U.S. steel production and national security.
- The Secretary has informed me of similar problems with respect to the temporary exemption for imports of steel articles and derivative steel articles from Ukraine. Rather than supporting the Ukrainian steel industry and alleviating the economic harm caused by the ongoing conflict, the benefits of this temporary exemption have accrued primarily to producers in EU member countries, which have significantly increased duty-free exports to the U.S. market of steel articles processed from Ukrainian semi-finished steel. Since 2021, imports from Ukraine have remained steady at 0.5 percent of total U.S. imports, while imports from the European Union have increased 11.2 percent to 14.8 percent. As a result of the temporary exemption, these imports enter the U.S. market subject to neither the ad valorem tariff proclaimed in Proclamation 9705, nor the tariff-rate-quota system applicable to other imports of steel articles from EU producers as proclaimed in Proclamation 10328. This has facilitated evasion of both the section 232 measures and of antidumping duties that would be paid if the finished products were imported directly from Ukraine.
- The Secretary has informed me that producers in countries that remain subject to the program have continued to evade the measures by processing covered steel articles into additional downstream steel derivative products that were not included in the additional ad valorem tariffs proclaimed in Proclamation 9705 and Proclamation 9980 of January 24, 2020 (Adjusting Imports of Derivative Aluminum Articles and Derivative Steel Articles Into the United States). Imports of products such as fabricated structural steel, prestressed concrete strand, and others, have increased significantly since the issuance of Proclamation 9705 and Proclamation 9980, eroding the domestic industry’s customer base and resulting in depressed demand for steel articles produced in the United States.
- The Secretary has also informed me of certain ongoing challenges with the product exclusion process authorized by Proclamation 9705, Proclamation 9777 of August 29, 2018 (Adjusting Imports of Steel Into the United States), and Proclamation 9980 and implemented by subsequent regulations. This process has resulted in exclusions for a significant volume of imports, in a manner that undermines the purpose of the section 232 measures and threatens to impair national security. Certain general approved exclusions remain in effect for entire tariff lines of steel articles, notwithstanding the domestic industry’s potential to produce many excluded products.
- I determine that these developments and modifications to the tariffs announced in Proclamation 9705 have undermined the program’s national security objectives by preventing the domestic steel industry from achieving sustained production capacity utilization of at least 80 percent, as determined necessary in the Secretary’s report of January 11, 2018. I also determine that they have failed to achieve their articulated objectives. As a result, I determine that they have resulted in significantly increasing imports of steel articles that threaten to impair the national security.
- In light of the Secretary’s findings regarding the alternative agreements with South Korea proclaimed in Proclamation 9740; Argentina, Australia, and Brazil proclaimed in Proclamation 9759; Canada and Mexico proclaimed in Proclamation 9894; EU countries proclaimed in Proclamation 10328; Japan proclaimed in Proclamation 10356; and the United Kingdom proclaimed in Proclamation 10406, I have revisited the determinations in these proclamations. In my judgment, the arrangements with these countries have failed to provide effective, long-term alternative means to address these countries’ contribution to the threatened impairment to the national security by restraining steel articles exports to the United States from each of them, limiting transshipment and surges and distorted pricing, and discouraging excess steel capacity and excess steel production. Thus, I have determined that steel articles imports from these countries threaten to impair the national security, and I have decided that it is necessary to terminate these arrangements as of March 12, 2025. As of that date, all imports of steel articles and derivative steel articles from Argentina, Australia, Brazil, Canada, EU countries, Japan, Mexico, South Korea, and the United Kingdom shall be subject to the additional ad valorem tariff proclaimed in Proclamation 9705 with respect to steel articles and Proclamation 9980 with respect to derivative steel articles. In my judgment, these modifications are necessary to address the significantly increasing share of imports of steel articles and derivative steel articles from these sources, which threaten to impair U.S. national security. Replacing the alternative agreements with the additional ad valorem tariffs will be a more robust and effective means of ensuring that the objectives articulated in the Secretary’s January 11, 2018, report and subsequent proclamations are achieved.
- For the same reasons, I have also revisited the determinations in Proclamation 10403, Proclamation 10558, and Proclamation 10771. In my judgment, the arrangement with Ukraine has failed to provide effective, long-term alternative means to address Ukraine’s contribution to the threatened impairment to our national security by restraining steel articles exports to the United States from Ukraine, limiting transshipment and surges, and discouraging excess steel capacity and excess steel production. Thus, I have determined that steel articles imports from Ukraine threaten to impair the national security and have determined that it is necessary to terminate the temporary exemption for imports of steel articles and derivative steel articles from Ukraine as proclaimed in Proclamation 10403, Proclamation 10558, and Proclamation 10771. In my judgment, terminating this exemption will prevent abuses that have resulted in significantly increasing imports from sources other than Ukraine, will prevent evasion of antidumping duties, and will support the domestic steel industry without harming Ukraine’s economic recovery.
- In light of the information provided by the Secretary that significantly increasing imports of certain derivative steel articles have depressed demand for steel articles produced by domestic steel producers, I have determined that it is necessary and appropriate in light of U.S. national security interests to adjust the tariff proclaimed in Proclamation 9705 and Proclamation 9980 to apply to additional derivative steel articles. As of March 12, 2025, the additional derivative steel articles covered by this proclamation, as set out in Annex I to this proclamation, shall be subject to the ad valorem duties proclaimed in Proclamation 9705 and Proclamation 9980, except for derivative steel articles processed in another country from steel articles that were melted and poured in the United States. For any derivative steel article identified in Annex I that is not in Chapter 73 of the HTSUS, the additional ad valorem duty shall apply only to the steel content of the derivative steel article. The Secretary shall publish a notice in the Federal Register to this effect, including Annex I to this proclamation.
- The Secretary has informed me that his findings with regard to the product exclusion process present circumstances that in the Secretary’s opinion indicate the need for further action by the President under section 232. Accordingly, as of the date of this proclamation the Secretary is no longer authorized to provide relief from the additional duties set forth in clause 2 of Proclamation 9705 for any steel article determined not to be produced in the United States in a sufficient and reasonably available amount or a satisfactory quality or based on specific national security determinations, and the product exclusion process as authorized in clause 3 of Proclamation 9705, clause 1 of Proclamation 9777, and clause 2 of Proclamation 9980 is terminated, effective immediately. I have determined that terminating product exclusions is necessary to ensure that overly broad exclusions do not allow high volumes of imports to undermine the objectives articulated in the Secretary’s January 11, 2018, report and relevant subsequent proclamations. This change will also relieve the administrative burden that the process has created. Following this proclamation, and subject to any restrictions set forth in or pursuant to other provisions of applicable law, imports of any steel article or derivative steel article from any source and in any quantity will be available to U.S. importers, provided that the additional ad valorem tariffs are paid upon entry or withdrawal from warehouse for consumption.
- Section 232 of the Trade Expansion Act of 1962, as amended, authorizes the President to take action to adjust the imports of an article and its derivatives if the President concurs with the Secretary’s finding that the article is being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security.
- Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), authorizes the president to embody in the Harmonized Tariff Schedule of the United States (HTSUS) the substance of statutes affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.
20. The United States will monitor the implementation and effectiveness of these actions in addressing our national security needs, and I may revisit this determination, as appropriate.

NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States of America, including section 301 of title 3, United States Code, section 604 of the Trade Act of 1974, as amended, and section 232 of the Trade Expansion Act of 1962, as amended, do hereby proclaim as follows:
- The provisions of Proclamation 9740 with respect to imports of steel articles from South Korea; Proclamation 9759 with respect to imports of steel articles from Argentina, Australia, and Brazil; Proclamation 10064 with respect to imports of steel articles from Brazil; Proclamation 9894 with respect to imports of steel articles from Canada and Mexico; Proclamation 10783 with respect to imports of steel articles from Mexico; Proclamation 10328 and Proclamation 10691 with respect to imports of steel articles and derivative steel articles from the EU; Proclamation 10356 with respect to imports of steel articles and derivative steel articles from Japan; Proclamation 10406 with respect to imports of steel articles and derivative steel articles from the United Kingdom; and Proclamation 10403, Proclamation 10558, and Proclamation 10771 with respect to steel articles and derivative steel articles from Ukraine shall be ineffective as of 12:01 a.m. eastern time on March 12, 2025. The provisions of clause 1 of Proclamation 9740 as applicable to imports of steel articles or derivative steel articles from Argentina, Australia, Brazil, Canada, Mexico, South Korea, and EU member countries shall be ineffective as of 12:01 a.m. eastern time on March 12, 2025. The provisions of clause 1 of Proclamation 9980 as applicable to imports of derivative steel articles from Argentina, Australia, Canada, Mexico, and South Korea shall be ineffective as of 12:01 a.m. eastern time on March 12, 2025. As of 12:01 a.m. eastern time on March 12, 2025, all imports of steel articles and derivative steel articles from these countries shall be subject to the additional ad valorem tariffs proclaimed in Proclamation 9705 and Proclamation 9980.
- Clause 2 of Proclamation 9705, as amended, is revised to read as follows:
“(2)(a) In order to establish certain modifications to the duty rate on imports of steel articles, subchapter III of chapter 99 of the HTSUS is modified as provided in the forthcoming annex to this proclamation set out in a subsequent Federal Register notice and any subsequent proclamations regarding such steel articles.

(b) Except as otherwise provided in this proclamation, or in notices published pursuant to clause 3 of this proclamation, all steel articles imports covered by heading 9903.80.01, in subchapter III of chapter 99 of the HTSUS, shall be subject to an additional 25 percent ad valorem rate of duty with respect to goods entered for consumption, or withdrawn from warehouse for consumption, as follows: (i) on or after 12:01 a.m. eastern time on March 23, 2018, from all countries except Argentina, Australia, Brazil, Canada, Mexico, South Korea, and the member countries of the European Union; (ii) on or after 12:01 a.m. eastern time on June 1, 2018, from all countries except Argentina, Australia, Brazil, and South Korea; (iii) on or after 12:01 a.m. eastern time on August 13, 2018, from all countries except Argentina, Australia, Brazil, South Korea, and Turkey; (iv) on or after 12:01 a.m. eastern time on May 20, 2019, from all countries except Argentina, Australia, Brazil, South Korea, and Turkey; (v) on or after 12:01 a.m. eastern time on May 21, 2019, from all countries except Argentina, Australia, Brazil, Canada, Mexico, and South Korea; (vi) on or after 12:01 a.m. eastern time on January 1, 2022, from all countries except Argentina, Australia, Brazil, Canada, Mexico, and South Korea, and except the member countries of the European Union through 11:59 p.m. eastern time on December 31, 2023, for steel articles covered by headings 9903.80.65 through 9903.81.19, inclusive; (vii) on or after 12:01 a.m. eastern time on April 1, 2022, from all countries except Argentina, Australia, Brazil, Canada, Mexico, and South Korea, and except the member countries of the European Union through 11:59 p.m. eastern time on December 31, 2023, for steel articles covered by headings 9903.80.65 through 9903.81.19, inclusive, and from Japan, for steel articles covered by headings 9903.81.25 through 9903.81.80, inclusive; (viii) on or after 12:01 a.m. eastern time on June 1, 2022, from all countries except Argentina, Australia, Brazil, Canada, Mexico, South Korea, and Ukraine through 11:59 p.m. eastern time on June 1, 2023, and except the member countries of the European Union through 11:59 p.m. eastern time on December 31, 2023, for steel articles covered by headings 9903.80.65 through 9903.81.19, inclusive, and from Japan and the United Kingdom (UK), for steel articles covered by subheadings 9903.81.25 through 9903.81.78 and heading 9903.81.80, and from the member countries of the European Union, for steel articles covered by heading 9903.81.81; (ix) on or after 12:01 a.m. eastern time on June 1, 2023, from all countries except Argentina, Australia, Brazil, Canada, Mexico, South Korea, and Ukraine through 11:59 p.m. eastern time on June 1, 2024, and except the member countries of the European Union through 11:59 p.m. eastern time on December 31, 2023, for steel articles covered by headings 9903.80.65 through 9903.81.19, inclusive, and from Japan and the UK, for steel articles covered by subheadings 9903.81.25 through 9903.81.78 and heading 9903.81.80, and from the member countries of the European Union, for steel articles covered by heading 9903.81.81, and from the member countries of the European Union where the steel used in the manufacture of the steel article is melted and poured in Ukraine through 11:59 p.m. eastern time on June 1, 2024, (x) on or after 12:01 a.m. eastern time on January 1, 2024, from all countries except Argentina, Australia, Brazil, Canada, Mexico, and South Korea, and except for Ukraine in accordance with the relevant proclamation as amended, and except the member countries of the European Union in accordance with the relevant proclamation as amended, for steel articles covered by headings 9903.80.65 through 9903.81.19, inclusive, and from Japan and the UK , in accordance the relevant proclamation as amended, for steel articles covered by subheadings 9903.81.25 through 9903.81.78 and heading 9903.81.80, and from the member countries of the European Union in accordance with the relevant proclamation as amended, for steel articles covered by heading 9903.81.81, and from the member countries of the European Union where the steel used in the manufacture of the steel article is melted and poured in Ukraine in accordance with the relevant proclamation as amended, and (xi) from all countries on or after 12:01 a.m. eastern time on March 12, 2025, unless suspended. Further, except as otherwise provided in notices published pursuant to clause 3 of this proclamation, all steel articles imports from Turkey covered by heading 9903.80.02, in subchapter III of chapter 99 of the HTSUS, shall be subject to a 50 percent ad valorem rate of duty with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on August 13, 2018, and prior to 12:01 a.m. eastern time on May 21, 2019. These rates of duty, which are in addition to any other duties, fees, exactions, and charges applicable to such imported steel articles, shall apply to imports of steel articles from each country as specified in the preceding three sentences.“
- The first two sentences of clause 1 of Proclamation 9980 are revised to read as follows:
“In order to establish increases in the duty rate on imports of certain derivative articles, subchapter III of chapter 99 of the HTSUS is modified as provided in Annex I and Annex II to this proclamation. Except as otherwise provided in this proclamation, all imports of derivative aluminum articles specified in Annex I to this proclamation shall be subject to an additional 10 percent ad valorem rate of duty, and all imports of derivative steel articles specified in Annex II to this proclamation shall be subject to an additional 25 percent ad valorem rate of duty, with respect to goods entered for consumption, or withdrawn from warehouse for consumption, as follows: (i) on or after 12:01 a.m. eastern time on February 8, 2020, these rates of duty, which are in addition to any other duties, fees, exactions, and charges applicable to such imported derivative aluminum articles or steel articles, shall apply to imports of derivative aluminum articles described in Annex I to this proclamation from all countries except Argentina, the Commonwealth of Australia (Australia), Canada, and the United Mexican States (Mexico), and to imports of derivative steel articles described in Annex II to this proclamation from all countries except Argentina, Australia, Brazil, Canada, Mexico, and South Korea; (ii) on or after 12:01 a.m. eastern time on January 1, 2022, these rates of duty, which are in addition to any other duties, fees, exactions, and charges applicable to such imported derivative aluminum articles or steel articles, shall apply to imports of derivative aluminum articles described in Annex I to this proclamation from all countries except Argentina, Australia, Canada, the member countries of the European Union, and Mexico, and to imports of derivative steel articles described in Annex II to this proclamation from all countries except Argentina, Australia, Brazil, Canada, the member countries of the European Union, Mexico, and South Korea; (iii) on or after 12:01 a.m. eastern time on April 1, 2022, these rates of duty, which are in addition to any other duties, fees, exactions, and charges applicable to such imported derivative aluminum articles or steel articles, shall apply to imports of derivative aluminum articles described in Annex I to this proclamation from all countries except Argentina, Australia, Canada, the member countries of the European Union, and Mexico, and to imports of derivative steel articles described in Annex II to this proclamation from all countries except Argentina, Australia, Brazil, Canada, the member countries of the European Union, Japan, Mexico, and South Korea; (iv) on or after 12:01 a.m. eastern time on June 1, 2022, these rates of duty, which are in addition to any other duties, fees, exactions, and charges applicable to such imported derivative aluminum articles or steel articles, shall apply to imports of derivative aluminum articles described in Annex I to this proclamation from all countries except Argentina, Australia, Canada, the member countries of the European Union, Mexico, and the UK, and to imports of derivative steel articles described in Annex II to this proclamation from all countries except Argentina, Australia, Brazil, Canada, the member countries of the European Union, Japan, Mexico, South Korea, and the UK, and except from Ukraine through 11:59 p.m. eastern time on June 1, 2023; (v) on or after 12:01 a.m. eastern time on March 10, 2023, these rates of duty, which are in addition to any other duties, fees, exactions, and charges applicable to such imported derivative aluminum articles or steel articles, shall apply to imports of derivative aluminum articles described in Annex I to this proclamation from all countries except Argentina, Australia, Canada, the member countries of the European Union, Mexico, the UK, and Russia, and to imports of derivative steel articles described in Annex II to this proclamation from all countries except Argentina, Australia, Brazil, Canada, the member countries of the European Union, Japan, Mexico, South Korea, and the UK, and except from Ukraine through 11:59 p.m. eastern time on June 1, 2023; (vi) on or after 12:01 a.m. eastern time on June 1, 2023, these rates of duty, which are in addition to any other duties, fees, exactions, and charges applicable to such imported derivative aluminum articles or steel articles, shall apply to imports of derivative aluminum articles described in Annex I to this proclamation from all countries except Argentina, Australia, Canada, the member countries of the European Union, Mexico, the UK, and Russia, and to imports of derivative steel articles described in Annex II to this proclamation from all countries except Argentina, Australia, Brazil, Canada, the member countries of the European Union, Japan, Mexico, South Korea, and the UK, and except from Ukraine om accordance with the relevant proclamation as amended; and (vii) on or after 12:01 a.m. eastern daylight time on March 12, 2025, unless suspended, these rates of duty, which are in addition to any other duties, taxes, fees, exactions, and charges applicable to such imported derivative steel articles, shall apply to imports of derivative steel articles described in Annex II to this proclamation from all countries.”
- Except as otherwise provided in this proclamation, all imports of derivative steel articles specified in Annex I to this proclamation or in any subsequent annex to this proclamation, as set out in a subsequent notice in the Federal Register, shall be subject to an additional 25 percent ad valorem rate of duty, with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on the Commerce certification date in clause 8. These rates of duty, which are in addition to any other duties, taxes, fees, exactions, and charges applicable to such imported derivative steel articles, shall apply to imports of derivative steel articles described in Annex I to this proclamation from all countries, but shall not apply to derivative steel articles processed in another country from steel articles that were melted and poured in the United States. The Secretary shall continue to monitor imports of the derivative articles described in Annex I to this proclamation, and shall, from time to time, in consultation with the United States Trade Representative, review the status of such imports with respect to the national security of the United States.
- For purposes of implementing the requirements in this proclamation, importers of steel derivative articles shall provide to U.S. Customs and Border Patrol within the Department of Homeland Security (CBP) any information necessary to identify the steel content used in the manufacture of steel derivative articles imports, covered by this Proclamation. CBP shall implement the information requirements as soon as practicable.
- Within 90 days after the date of this proclamation, the Secretary shall establish a process for including additional derivative steel articles within the scope of the ad valorem duties proclaimed in Proclamation 9705, Proclamation 9980, and clause 4 of this proclamation. In addition to inclusions made by the Secretary, this process shall provide for including additional derivative steel articles at the request of a producer of a steel article or derivative steel article, or an industry association representing one or more such producers, where the request establishes that imports of a derivative steel article have increased in a manner that threatens to impair the national security or otherwise undermine the objectives set forth in the Secretary’s January 11, 2018, report or any Proclamation issued pursuant thereto. When the Secretary receives such a request from a domestic producer or industry association, the Secretary shall issue a determination regarding whether or not to include the derivative steel article or articles within 60 days of receiving the request.
- The provisions of clause 3 of Proclamation 9705, clause 1 of Proclamation 9777, clause 2 of Proclamation 9980, or any other provisions authorizing the Secretary to grant relief for certain products from the additional ad valorem duties or quantitative restrictions set forth in prior proclamations are hereby revoked. As of 11:59 p.m. eastern time on the date of this proclamation, the Secretary shall not consider any product exclusion requests or renew any product exclusion requests in effect as of that date. The Secretary shall take all necessary action to rescind the product exclusion process, including publication in the Federal Register. Granted product exclusions shall remain effective until their expiration date or until excluded product volume is imported, whichever occurs first. The Secretary shall terminate all existing general approved exclusions as of March 12, 2025.
- The modifications made by this proclamation in clause 4 shall be effective upon public notification by the Secretary of Commerce, that adequate systems are in place to fully, efficiently, and expediently process and collect tariff revenue for covered articles.
- Any steel article or derivative article, except those eligible for admission under “domestic status” as defined in 19 CFR 146.43, that is subject to the duty imposed by this proclamation and that is admitted into a U.S. foreign trade zone on or after 12:01 a.m. eastern daylight time on March 12, 2025, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41, and will be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable HTSUS subheading. Any steel article or derivative steel article, except those eligible for admission under “domestic status” as defined in 19 CFR 146.43, that is subject to the duty imposed by this proclamation, and that was admitted into a U.S. foreign trade zone under “privileged foreign status” as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern daylight time on March 12, 2025 , will likewise be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable HTSUS subheading added by this proclamation. Pursuant to clause 8, the duties on steel derivatives established by clause 4 of this Proclamation shall be suspended until public notification by the Secretary of Commerce that adequate systems are in place to fully, efficiently, and expediently process and collect tariff revenue applicable to covered articles.
- Any product listed in Annex Ito this proclamation or any subsequent annex published in the Federal Register pursuant to this Proclamation, that is subject to the additional duties imposed by this proclamation, and that is admitted into a U.S. foreign trade zone, except any product that is eligible for admission under “domestic status” as defined in 19 CFR 146.43, may only be admitted as “privileged foreign status,” as defined in 19 CFR 146.41, effective as of the date that the additional duties are imposed.
- The Secretary, in consultation with the Commissioner of CBP, Security, and the heads of other relevant executive departments and agencies, shall revise the HTSUS so that it conforms to the amendments and effective dates directed in this proclamation within ten days of March 12, 2025. The Secretary is authorized and directed to publish any such modification and future modifications to the HTSUS in the Federal Register.
- CBP shall prioritize reviews of the classification of imported steel articles and derivative steel articles and, in the event that it discovers misclassification resulting in non-payment of the ad valorem duties proclaimed herein, it shall assess monetary penalties in the maximum amount permitted by law and shall not consider any evidence of mitigating factors in its determination. In addition, CBP shall promptly notify the Secretary regarding evidence of any efforts to evade payment of the ad valorem duties proclaimed herein through processing or alteration of steel articles or derivative steel articles prior to importation. In such circumstances, the Secretary shall consider the processed or altered steel articles or derivative steel articles for inclusion as derivative steel articles pursuant to clause 5 of this proclamation.
- No drawback shall be available with respect to the duties imposed pursuant to this proclamation.
(14) The Secretary may issue regulations and guidance consistent with this proclamation, including to address operational necessity.

(15) Any provision of a previous proclamation or Executive Order that is inconsistent with the actions taken in this proclamation is superseded to the extent of such inconsistency.

IN WITNESS WHEREOF, I have hereunto set my hand this

tenth day of February, in the year of our Lord two thousand twenty-five, and of the Independence of the United States of America the two hundred and forty-ninth.
MIL OSI USA News –
February 11, 2025
MIL-OSI Submissions: Australia – New book tells the stories of second generation migrants – AMES

Source: AMES

A compelling new book tells the stories of second-generation migrant Australians, who share their families’ settlement journeys and their own search for identity.

Titled ‘At the Heart of Identity’, the book reveals the both inspirational and heart-wrenching stories of migrant families as well as the sense of hope and opportunity that characterises Australia’s migration history.

Contributors include South Australian Premier Peter Malinauskas, whose family hails from Lithuania, and former Socceroo Archie Thompson, who has a New Zealand-born father and mother from Papua New Guinea.

Also sharing their stories are federal MP Cassandra Fernando, whose parents are from Sri Lanka, and Victorian state MP Lee Tarlamis, who has Greek heritage.

Artist Saidin Salkic, whose father was victim of the Srebrenica massacre in Bosnia, is also a contributor, along with others from Africa, Kurdistan, Vietnam, Malta, Yugoslavia, Burma, Italy and Ukraine.

Published today as part of migrant and refugee settlement agency AMES Australia’s annual ‘Heartlands’ cultural project, the book is a reflection of Australia’s long and diverse history as a nation of migrants.

AMES CEO Cath Scarth said the book was timely at a point in history when polarisation and divisiveness are on the rise across the globe.

“Stories of settlement in Australia, no matter where you have come from, are things that unite us,” Ms Scarth said.

“These stories are reflection of how migrants have helped to build Australia and helped to create the successful brand of multiculturalism we enjoy along with the high levels of social cohesion that we have built,” she said.

One of the contributors is Carmen Capp-Calleya, who came to Australia from Malta with her parents in 1958 – surviving a shipwreck along the way.

“The tragic incident, the first major shipping disaster since the end of WW11, had an enduring impact on me and my family. It left us with an indelible sense that we were indeed migrants who had crossed the seas to make a new life,” she says in the book.

Former Socceroo Archie Thompson tells of his trouble childhood.

“I grew up in country town in NSW and I was pretty much the only dark-skinned kid in town. That made things difficult at times, but I was able to find a community through football,” he says.

SA Premier Peter Malinauskas’ family came to Australia in 1949 escaping war-torn Europe.

“When my grandparents got married, they bought a block of land on Trimmer Parade, Seaton, where they built their home and, for many years, operated a fish and chip shop. I distinctly remember as a young boy standing at that fish and chip shop my grandfather built with his own bare hands as he told me about the importance of taking opportunities,” he says.

Federal MP Cassandra Fernando tells of growing up in a vibrant multicultural community.

“I loved the diversity in South-East Melbourne, a cultural melting pot of Greeks, Italians, Vietnamese, and more. Here, I learned the true meaning of community as people from

different backgrounds came together,” she says.

Victorian MP Lee Tarlamis tells of reconnecting with his heritage.

“I became determined to reconnect with Greek culture. Embracing both the Greek community and my wife’s Vietnamese culture helped me value diversity and the importance of preserving it,” he says in the book.

Park Ranger James Brincat, whose parts came from Malta in the 1950s, says racism was part of his childhood.

“Growing up in a migrant family was challenging due to racism and being unsure of my identity because of the media’s mixed messages. These experiences strengthened me and now guide my work with refugee communities,” he says.

Architect and artist Maru Jarockyj’s parents fled Ukraine after WWII and settled in the UK. She came to Australia as a young woman.

“Russia’s illegal invasion of Ukraine and the subsequent devastating war has sparked some deep latent emotions in me and reignited a sense of patriotism. Ukrainian culture

has always been important to me, and I’ve been involved in folk music and art throughout my life,” she says.

‘At the Heart of Identity’ will go on sale early next year.

MIL OSI – Submitted News –

February 11, 2025
MIL-Evening Report: What are physician assistants? Can they fix the doctor shortage?
Source: The Conversation (Au and NZ) – By Lisa Nissen, HERA Program Director – Health Workforce Optimisation Centre for the Business & Economics of Health, The University of Queensland

Rawpixel.com/Shutterstock

If you’ve tried to get an appointment to see a GP or specialist recently, you will likely have felt the impact of Australia’s doctor shortages.

To alleviate workforce shortages, the Queensland government is considering introducing health workers called physician assistants more widely to the state’s health system.

But the medical body representing physicians, the Royal Australasian College of Physicians, has warned thorough consultation with medical experts is needed first.

So what exactly are physician assistants? And are they the solution to our workforce issues we’ve been looking for? Let’s look at what the evidence says – and the lessons from abroad.

What is a physician assistant?

Physician assistants, also known as physician associates, are trained health professionals who work under the supervision of a doctor. They undertake a variety of tasks including:
- examining patients
- ordering and interpreting blood tests
- assisting in surgery
- prescribing medicines.
In general practice, physician assistants may also provide preventative health care such as giving vaccinations and providing health advice.

Physician assistants commonly complete postgraduate-level university education and a hands-on training program. They may also need to have completed a health-based undergraduate degree.

In most countries, physician assistants work under a “delegation” model. This means the treating doctor and physician assistant together determine the tasks the physician assistant can undertake, depending on their competence. As their skills and knowledge increase, the level of supervision changes accordingly.

When were they first used?

Similar roles have been used throughout history, including in the military. As early as the 1800s, trained assistants known as feldshers (or feldschers) provided basic medical care during times of war, for example in Russia, Bulgaria and Poland.

The contemporary physician assistant role evolved in the 1960s in the United States. It was initially designed to use the skills of medically trained military servicemen.

The first physician assistants were military servicemen.
Andy Gin/Shutterstock

Since then, it has become an accepted and well established part of the health care team in the US, where the medical profession supports the physician assistant role and contributes to its regulation.

There are currently more than 178,000 physician assistants practising in the US, across a wide range of settings. Around one-quarter work in family/general medicine and one-fifth in rural and medically under-served areas.

Physician assistants can be found in many countries, including Canada, New Zealand, the United Kingdom, Germany and the Netherlands.

Australia previously trialled physician assistant in two states, Queensland and South Australia. Like other countries, the role was found to be effective and acceptable.

What does the research say about their use?

Most research about physician assistants originates from the US. Studies spanning several decades show physician assistants provide safe and appropriate care. They can competently undertake consultations, perform complex procedures, provide preventative health care, treat non-complex patients in the emergency department and provide a wide range of services in rural areas.

Most studies have reported patient satisfaction with the physician assistant role.

Research has found it’s cost-effective to use physician assistants, including for complex patients.

Physician assistants can improve the continuity of patient care in hospitals, as they remain with their supervising doctor rather than moving between hospital areas as trainee doctors do. This enables them to maintain consistent contact with patients, their families and other members of the health-care team.

Using physician assistants in emergency departments enables doctors to review more complex patients.

In surgery, physician assistants can reduce the workload on resident doctors. They can prepare patients for surgery, review them afterwards and perform some surgical procedures. They can also reduce the time patients stay in hospital.

Physician assistants can also provide care in rural and remote areas and have worked with Aboriginal health workers in remote areas of Australia.

What do Australian policymakers need to consider?

Like many other countries, the Australian health workforce is under pressure. Recent reviews have highlighted the need to examine how the health system and workforce can more effectively meet the needs of the community. This includes making better use of all current health professions by enabling them to perform the tasks they have been trained to do.

Health professionals must ensure their care keeps patients safe and aligns with public expectations. This relies on appropriate education and training, funding and payment policies, governance and regulation. Effective regulation ensures health professionals are held accountable for their practice, according to defined professional practice expectations.

Despite physician assistants being trialled in Queensland and SA, the role did not gain the support of the medical profession. As a result, only a small number of physician assistants are currently practising. And Australia no longer provides education programs for physician assistants.

Several factors affected the acceptance of the physician assistant role.

Their skills and competence weren’t widely understood or recognised. This meant their scope of practice was poorly defined, which may have been confusing for both patients and health professionals.

The profession was also unable to access Medicare rebates or Pharmaceutical Benefits Scheme subsidies for patient consultations or scripts. This limited their full involvement in some health services such as general practice.

What could we do better?

Australia needs to learn from the available evidence when considering a possible role for physician assistants.

In the US and Canada, for example, a close relationship between the medical and physician assistant professions has provided guidance and support for the role, and ensured physician assistants are accountable for their practice, through the development of “expected standards” of practice.

As demand for health services increases, it makes sense to explore the addition of physician assistants to Australia’s health-care workforce, if safety and quality can be assured, and health care teams function optimally.

Lisa Nissen receives funding from the Commonwealth Department and Aging and jurisdictional health departments for research related to Health Workforce Optimization and team based care.

Lynda Cardiff does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. What are physician assistants? Can they fix the doctor shortage? – https://theconversation.com/what-are-physician-assistants-can-they-fix-the-doctor-shortage-247560
MIL OSI Analysis – EveningReport.nz –
February 11, 2025
MIL-OSI China: Russia-US ties ‘on verge of rupture’

Source: China State Council Information Office

Russian national flag waves at the Kremlin in Moscow, Russia, Jan. 6, 2023. [Photo/Xinhua]

Relations between Russia and the United States are “on the verge of rupture,” Russian Deputy Foreign Minister Sergei Ryabkov said on Monday.

Moscow has repeatedly warned that bilateral relations were on the brink of rupture, Ryabkov said, adding that U.S. President Donald Trump’s return to the White House could lead to a change in U.S. foreign policy.

At a press briefing, the diplomat also said there were currently no plans for contact between Russian President Vladimir Putin and Trump.

“However, the topic does exist, and as the situation becomes clearer, I believe there will be agreements on this matter and they will be announced … at the appropriate time,” Ryabkov said.

At the same time, Ryabkov said that the new U.S. administration has expressed interest in resuming dialogue with Moscow.

“Trump’s team, despite the conflicting statements made by him and his people, has at least shown interest in resuming dialogue with Russia, which was interrupted by the Democrats,” Ryabkov said.

He reiterated that Moscow remains ready for dialogue, including discussions on a potential settlement of the Ukraine crisis, however, such dialogue would only be possible based on equality and mutually acceptable terms.

“A small window of opportunity” has emerged under the Trump administration for normalizing bilateral ties, he said, adding that Washington must decide whether to take advantage of this.

The use of ultimatums, provocative remarks, or attempts to pressure Moscow into accepting unreasonable demands will not be effective for Russia-U.S. relations or dialogue between the two countries, he added.

The New York Post reported late Saturday that Trump said he had discussed the settlement of the conflict in Ukraine by phone with Putin.

However, Kremlin Spokesman Dmitry Peskov said Sunday he could “neither confirm nor deny” that Putin and Trump had been in touch when asked by reporters if the two leaders had spoken by phone.

MIL OSI China News –

February 11, 2025
MIL-OSI USA: ICYMI: Lummis Delivers Remarks on DOGE, USAID, and Wasteful Government Spending

US Senate News:

Source: United States Senator for Wyoming Cynthia Lummis

Washington, D.C.— Senator Cynthia Lummis (R-WY) applauded President Donald Trump, Elon Musk, and the Department of Government Efficiency (DOGE) on the Senate floor last Thursday for revealing millions in taxpayer dollars spent on government waste, fraud, and abuse.

During her speech, Lummis said, “Here are some of the ways the last administration have wasted your money: more than $4.5 million to combat disinformation in Kazakhstan… $20 million for a new Sesame Street show in Iraq, $25 million for Deloitte to promote green transportation in the country of Georgia…”

“Speaking on behalf of the people of Wyoming, I want to say thank you,” Lummis continued. “Thank you, President Trump, thank you for bringing in a group of people to help us shine a light on how we can make America better in just the way the American people yearned for, wanted, expect, and celebrate.”

Click here to watch the full video.

MIL OSI USA News –

February 11, 2025
MIL-OSI China: Chinese arts troupe brings ‘Happy Spring Festival’ celebration to Zagreb

Source: China State Council Information Office 3

A Chinese artist performs during the “Happy Spring Festival” celebration in Zagreb, Croatia, on Feb. 10, 2025. The “Happy Spring Festival” performance by an arts troupe from central China’s Hubei Province captivated audiences at the Zagreb School of Economics and Management (ZSEM) in the Croatian capital on Monday. (Xinhua/Li Xuejun)

The “Happy Spring Festival” performance by an arts troupe from central China’s Hubei Province captivated audiences at the Zagreb School of Economics and Management (ZSEM) in the Croatian capital on Monday.

Artists from the Hubei Provincial Performing Arts Group presented a rich variety of traditional performances, including the folk music ensemble “Prosperous National Music,” suona solo “A Hundred Birds Paying Homage to the Phoenix,” and a guzheng and pipa duet “Spring River Moon Night.”

The program also featured Hubei folk songs such as “Dragon Boat Tune,” Han Opera’s “Drunken Concubine,” and the guzheng and dance piece “High Mountains and Flowing Water.”

In addition to musical and operatic performances, the show also included magic acts, Sichuan face-changing, and breathtaking Wudang martial arts displays.

“It was a wonderful, absolutely fascinating performance in celebration of the Chinese New Year,” ZSEM dean Mato Njavro said, expressing his pleasure and honor in hosting the event.

More than 500 guests from various fields attended the performance, including former Croatian President Stjepan Mesic, former Prime Minister Zlatko Matesa, former Deputy Speaker Davorko Vidovic, and Chinese Ambassador to Croatia Qi Qianjin.

MIL OSI China News –

February 11, 2025
MIL-OSI China: French PM survives another no-confidence vote

Source: China State Council Information Office

French Prime Minister Francois Bayrou delivers his general policy speech at the National Assembly in Paris, France, on Jan. 14, 2025. [Photo/Xinhua]

French Prime Minister Francois Bayrou survived another no-confidence vote on Monday, initiated by the hard-left party La France Insoumise (LFI).

Lacking support from its ally, the Socialist Party (PS), or the far-right National Rally (RN), the motion received only 115 votes – far below the 289 needed to remove Bayrou, according to National Assembly Speaker Yael Braun-Pivet.

On Feb. 5, after surviving two no-confidence votes, Bayrou once again invoked his special constitutional power to push through the second part of the Social Security financing bill. In response, LFI filed the latest no-confidence motion, which was put to a vote on Monday.

Shortly after the vote’s failure, Bayrou again invoked Article 49.3 of the French Constitution to bypass parliament and force through the “spending” section of the Social Security financing bill for 2025.

According to Le Figaro, the bill includes a 2.6 percent increase in health spending, bringing the total to 264.2 billion euros (272 billion U.S. dollars).

Bayrou was appointed prime minister by French President Emmanuel Macron on Dec. 13 after Michel Barnier was ousted in a no-confidence vote. (1 euro = 1.03 U.S. dollar)

MIL OSI China News –

February 11, 2025
MIL-OSI China: Europe vows to defend interests amid new US tariff threats

Source: China State Council Information Office

Flags of the European Union fly outside the Berlaymont Building, the European Commission headquarters, in Brussels, Belgium, Jan. 29, 2025. [Photo/Xinhua]

The European Commission on Monday rejected the rationale for new U.S. tariffs on European exports, vowing to protect businesses, workers, and consumers across the bloc.

The statement came after U.S. President Donald Trump threatened to impose 25-percent tariffs on all steel and aluminum imports, reigniting fears of a transatlantic trade war.

European Union (EU) leaders swiftly condemned the proposed tariffs, which are expected to be formally announced later on Monday. The Commission said there is “no justification” for the U.S. measures, calling them unlawful and economically harmful, particularly given the deeply integrated EU-U.S. supply and production chains.

With European leaders signaling their readiness to retaliate, concerns are growing that the looming trade dispute could strain economic ties and disrupt global markets.

Tariffs could backfire

The European Commission, the EU’s executive body, strongly criticized the proposed tariffs, warning they would ultimately hurt U.S. businesses and consumers.

“Tariffs are essentially taxes,” it said in a statement, emphasizing that the move would increase costs for American companies, drive inflation, heighten economic uncertainty, and disrupt global market integration. Given the deep interdependence between European and American industries, the EU warned that such measures would be counterproductive, effectively imposing taxes on U.S. citizens as well.

European officials fear a repeat of 2018, when Trump’s previous steel and aluminum tariffs triggered swift EU retaliation. At the time, Brussels imposed countermeasures on U.S. goods such as whiskey, motorcycles, and orange juice.

With the formal announcement of the new U.S. tariffs expected later on Monday, European leaders are bracing for another escalation in trade tensions.

EU weighs retaliation

France was among the first to respond to Trump’s tariff threat, with Foreign Minister Jean-Noel Barrot warning on Monday that the EU would retaliate if the proposed tariffs take effect.

“There is no hesitation when it comes to defending our interests,” Barrot told French television TF1, recalling how the EU countered similar tariffs in 2018 and vowing to take the same approach if necessary.

Germany, Europe’s largest economy, is also preparing for action. A spokesperson for the German Federal Ministry for Economic Affairs and Climate Action stated that while the EU and Germany are working to prevent the tariffs, they stand ready to implement countermeasures if needed.

During a televised debate on Sunday ahead of upcoming elections, German Chancellor Olaf Scholz warned that the EU could “act within an hour” if Trump proceeds with tariffs on European goods.

Industry leaders are also pushing for a firm response. Gunnar Groebler, president of the German Steel Association, urged the EU to react in a “united, strategic, and swift manner” to counter the tariff threat. “The U.S. is the largest buyer of European steel, importing around 1 million tonnes of mostly special steels from Germany alone each year,” he noted.

A lose-lose scenario

French President Emmanuel Macron cautioned that tariffs on EU goods would not be in the interests of the United States.

“If Washington imposes tariffs across multiple sectors, it will drive up the cost of goods and fuel inflation in the United States,” Macron said, pointing out that European savings play a crucial role in financing the U.S. economy.

Economic experts share Macron’s concerns. Paul Johnson, director of the London-based Institute for Fiscal Studies, warned that Trump’s planned tariffs could push up interest rates worldwide, having ripple effects on global monetary policy.

“It is going to create additional inflation, at the very least, in the United States, and that will have knock-on effects globally, particularly on interest rates,” Johnson explained.

Ferdinand Dudenhoeffer, a German automotive expert, argued that Trump is leveraging economic power to siphon off jobs and prosperity from other countries through his tariff policies. “He knows no friends or enemies. Even U.S. car manufacturers GM and Ford would suffer considerably from tariffs on cars from Canada and Mexico,” he said.

Dudenhoeffer noted that U.S. net vehicle imports totaled 5.6 million units in 2024. “Trump might ask how many jobs could be created if all these vehicles were produced domestically,” he said.

Despite the growing alarm, some analysts hold that the impact of Trump’s tariffs may be limited. Christian Helmenstein, chief economist of the Federation of Austrian Industries, described Trump’s plan as an “unfriendly pinprick” but not a severe blow.

He told the Austrian newspaper Kurier that the U.S. imports about a quarter of its steel needs, with much of it coming from Canada, Brazil, Mexico, and South Korea rather than Europe.

But Harald Oberhofer, an economist at the Austrian Institute of Economic Research, described Trump’s tariff plans as “an economically high-risk game.”

He pointed out that the United States was Austria’s largest export growth market last year amid weak overall exports and a trade war could further weaken Austria’s already fragile economy, which is projected to grow by just 0.6 percent this year.

As Trump moves closer to making his tariff announcement official, European leaders are making their stance clear: if the U.S. imposes new trade barriers, the EU stands ready to defend its economic interests with countermeasures.

MIL OSI China News –

February 11, 2025
MIL-OSI Security: 80 Years Later: 1st Cavalry Division returns to the Philippines to Commemorate the Battle of Manila

Source: United States INDO PACIFIC COMMAND

MANILA, Philippines –

80 years ago, on Feb. 3, 1945, the battle for the capital of the Philippines began between Allied Forces and Imperial Japan. The 1st Cavalry Division was one of three divisions under the control of Gen. Douglas MacArthur. It was here that the 1st Cavalry Division earned its nickname, “America’s First Team,” by being the first U.S. Forces to re-enter Manila after its capture in 1942.

The battle and subsequent liberation of Manila and the Philippines, in the spring of 1945, fulfilled a promise made by Gen. MacArthur in the spring of 1942: When President Theodore D. Roosevelt ordered him to Australia, he said, “I shall return.”

On a hot Feb. morning at Adamson University in the heart of the capital, the city government of Manila held a ceremony and wreath-laying in honor of this historic event. The ceremony honored our shared history, ongoing commitment, and continued partnership with the Philippines and the Filipino people.

The Mayor of Manila City, Honey Lacuna Pangan, presided over the ceremony. Commemorating this historical event, several other countries, including the United Kingdom, Australia, Japan, China, and Canada, were represented on-site.

The U.S. Ambassador to the Philippines, MaryKay L. Carlson, participated in the ceremony and placed a wreath in honor of those Americans and Filipinos who laid down their lives for the freedom of the Filipino people and the two countries.

Lt. Col. John Dolan, Commander of the 1st Cavalry Squadron, 7th Cavalry Regiment “Garryowen,” was on hand to represent the 1st Cavalry Division at the ceremony along with representatives from 5th Security Forces Assistance Brigade and I Corps, both based out of Joint Base Lewis-McChord, Wa.

“We’re here to honor the courage and sacrifice of so many soldiers and civilians in the liberation of Manila,” said Lt Col. Dolan, “and recognize the bond between both Americans and Filipinos share in our history and the pursuit of freedom.”

As the number of the Greatest Generation dwindles and will soon be gone, continuing to commemorate these events ensures their efforts and history is not lost. The Liberation of Manila’s 80th anniversary honors the past generations’ sacrifices to safeguard freedom while inspiring future generations to carry the torch.

MIL Security OSI –

February 11, 2025
MIL-OSI Security: USS O’Kane returns home after seven-month deployment to 5th and 7th Fleet

Source: United States INDO PACIFIC COMMAND

SAN DIEGO, Calif. –

O’Kane departed San Diego with the ABECSG, July 17, 2024, and remained in U.S. 5th Fleet following the departure of ABECSG who returned to their homeport in December 2024.

“I am incredibly proud of the exemplary work this team has invested in themselves and their equipment over the past few months,” said Cmdr. Rich Ray, commanding officer, O’Kane. “We are proud of the work we accomplished this deployment, and we are looking forward to continuing that success into the next challenge.”

Following the departure of the USS Abraham Lincoln (CVN 72) and the Arleigh Burke-class guided-class missile destroyers USS Frank E. Petersen, Jr. (DDG 121), USS Michael Murphy (DDG 112) and USS Spruance (DDG 111) from U.S. 5th Fleet, O’Kane and the USS Stockdale (DDG 106) remained in the U.S. Central Command (USCENTCOM) area of responsibility to support global maritime security operations.

O’Kane and Stockdale successfully escorted U.S. flagged and crewed merchant vessels in the Gulf of Aden. During the escort, the destroyers worked alongside other U.S. Central Command forces in successfully repelling multiple Iranian-backed Houthi attacks during transits of the Bab el-Mandeb strait. During the transit, the destroyers were attacked by one-way attack un-crewed Aerial systems, anti-ship ballistic missiles and anti-ship cruise missiles which were successfully engaged and defeated. The vessels were not damaged, and no personnel were hurt. The ships were well prepared, supported, and the well-trained Sailors successfully defended the ship.

Throughout deployment, O’Kane successfully completed 75 flight quarters, including 84 rotary-wing landings, 26 rotary-wing refueling evolutions, and nine vertical replenishments. In addition, O’Kane conducted 24 replenishments-at-sea, and 22 mooring evolutions.

Additionally, O’Kane visited Karachi, Pakistan to promote the diplomatic relationship between the United States and Pakistan. Following the port visit, O’Kane conducted a maritime exercise to build interoperability with the Pakistan Navy.

ABECSG initially deployed to the Indo-Pacific region to support regional security and stability, and to reassure our allies and partners of the U.S. Navy’s unwavering commitment, highlighted by the first-ever U.S.-Italy multi-large deck event with the Italian Navy’s ITS Cavour Carrier Strike Group held in the Indo-Pacific on Aug. 9, 2024.

The strike group was ordered to the USCENTCOM area of responsibility to bolster U.S. military force posture in the Middle East, deter regional escalation, degrade Houthi capabilities, defend U.S. forces, and again sailed alongside our Italian allies and other partners to promote security, stability and prosperity. Assigned destroyers of the ABECSG, to include O’Kane, were essential to providing a layer of defense to U.S. forces and ensure the safe passage of commercial vessels and partner nations transiting in international waterways like the Red Sea, Bab el-Mandeb Strait and the Gulf of Aden.

As an integral part of U.S. Pacific Fleet, Commander, U.S. 3rd Fleet operates naval forces in the Indo-Pacific and provides the realistic and relevant training to ensure the readiness necessary to execute the U.S. Navy’s timeless role across the full spectrum of military operations. U.S. 3rd Fleet works together with our allies and partners to advance freedom of navigation, the rule of law, and other principles that underpin security for the Indo-Pacific region.

MIL Security OSI –

February 11, 2025
MIL-OSI Global: As Trump abandons the old world order, NZ must find its place in a new ‘Pax Autocratica’

Source: The Conversation – Global Perspectives – By Chris Ogden, Associate Professor in Global Studies, University of Auckland, Waipapa Taumata Rau

Donald Trump is moving rapidly to change the contours of contemporary international affairs, with the old US-dominated world order breaking down into a multipolar one with many centres of power.

The shift already includes the US leaving the World Health Organization and the Paris Climate Accords, questioning the value of the United Nations, and radical cuts to the US Agency for International Development (USAID).

Such a new geopolitical age also involves an assertion of raw power, with Trump using the threat of tariffs to assert global authority and negotiating positions.

While the US is not significantly less powerful, this new era may see it wield that power in more openly self-interested and isolationist ways. As new US Secretary of State Marco Rubio put it in January, “the post-war global order is not just obsolete – it is now a weapon being used against us”.

With global democracy in retreat, the emerging international order looks to be moving in an authoritarian direction. As it does, the position of New Zealand’s vibrant democracy will come under mounting pressure.

But world orders have come and gone for millennia, reflecting the ebb and flow of global economic, political and military power. Looking back to previous eras, and how countries and cultures responded to shifting geopolitical realities, can help us understand what is happening more clearly.

An evolving world order

Previous orders have often focused on specific centres – or “poles” – of power. These include the Concert of Europe from 1814 to 1914, the bipolar world of the Cold War between the US and the Soviet Union, and the unipolar world of American dominance after the end of the Cold War and since the September 11 attacks in 2001.

Periods of single-power dominance (or hegemony) are referred to as a “pax”, from the Latin for “peace”. We have seen the Pax Romana of the Roman Empire (27 BCE to 180 AD), multiple Pax Sinicas around China (most recently the Qing Dynasty 1644 to 1912), Pax Mongolica (the Mongol Empire from 1271 to 1368) and Pax Britannica (the British Empire from 1815 to 1924).

It is the Pax Americana of the US, from 1945 to the present, that Trump seems bent on dismantling. We now live in an international order that is visibly in flux. With autocracy on the rise and the US at its vanguard, a “Pax Autocratica” is emerging.

This is accentuated by the rapid rise of Asia as the main sphere of economic and military growth, particularly China and India. The world’s two most populous countries had the world’s largest and third largest economies respectively in 2023, and the second and fourth highest levels of military spending.

The simultaneous rise of multiple power centres was already challenging the Pax Americana. Now, a new international order appears to be a certainty, with Trump openly adapting to multipolarity. Several major powers now compete for global influence, rather than any one country dominating.

China’s preference for a multipolar international order is shared by India and Russia. Without one dominant entity, it will be the political and social basis of this order, as determined by its major actors, that matters most – not who leads it.

Pax Democratica

The current (now waning) international order has been underpinned by specific social, political and economic values stemming from the national identity and historical experience of the US.

According to US political expert G. John Ikenberry, former president Woodrow Wilson’s agenda for peace after the first world war sought to “reflect distinctive American ideas and ideals”.

Woodrow imagined an order based on collective security and shared sovereignty, liberal principles of democracy and universal human rights, free trade and international law.

As its dominance and military strength increased in the 20th century, the US also provided security to other countries. Such power enabled Washington to create open global trade markets, as well as build core global institutions like the World Bank, International Monetary Fund, World Trade Organization, United Nations and NATO.

For Ikenberry, this Pax Americana (we might call it a Pax Democratica) rested on consent to the US’s “provision of security, wealth creation, and social advancement”. This was aided by the its more than 800 military bases in over 80 countries.

The democratic deficit

Trump undercuts the central tenets of this liberal world order and accelerates a slide towards authoritarianism. Like Russia, India and China, the US is also actively constraining human rights, attacking minorities and weakening its electoral system.

This democratic retreat leaves a country such as New Zealand in a global minority. If Trump targets the region or country with economic tariffs, that precariousness might increase.

On the other hand, previous world orders have not been truly hegemonic. Pax Britannica did not encompass the entire world. Nor did Pax Americana, which didn’t include China, India, the former Soviet bloc, much of the Islamic world and many developing countries.

This suggests pockets of democracy can survive within a Pax Autocratica, especially in a multipolar world which is more tolerant of political independence.

The Economist Intelligence Unit’s 2023 Democracy Index ranked New Zealand, the Nordic countries, Switzerland, Iceland and Ireland highest because their citizens

choose their political leaders in free and fair elections, enjoy civil liberties, prefer democracy over other political systems, can and do participate in politics, and have a functioning government that acts on their behalf.

It is these countries that can be at the vanguard of democratic resilience.

Chris Ogden is a Senior Research Fellow with The Foreign Policy Centre, London.

– ref. As Trump abandons the old world order, NZ must find its place in a new ‘Pax Autocratica’ – https://theconversation.com/as-trump-abandons-the-old-world-order-nz-must-find-its-place-in-a-new-pax-autocratica-249358

MIL OSI – Global Reports –

February 11, 2025
MIL-OSI China: China’s Spring Festival spending spree fuels global business growth

Source: China State Council Information Office

On a balmy afternoon on the first day of the Chinese Spring Festival, a queue of nearly 40 people, over half of them being Chinese tourists, snaked around the plain ice cream stall of “Uncle Chieng” on Orchard Road, Singapore.

“Recently, more than half of the customers are Chinese tourists. Around the Spring Festival, I sell about 20 percent more ice cream each day compared to usual,” said Chieng Puay Chui, owner of the stall, which has become one of the must-visit spots for Chinese tourists.

This scene is just a microcosm of the vibrant Spring Festival celebrations that have swept China and beyond, the first Lunar New Year festivities after the Spring Festival was added to UNESCO’s intangible cultural heritage list.

The festival, which falls on Jan. 29 this year, with week-long nationwide celebrations around the date, has not only ignited a surge in domestic consumption but also created vast opportunities for international businesses, as Chinese consumers embrace global goods and cultures.

A girl participates in activities to celebrate the Chinese New Year in London, Britain, on Feb. 2, 2025. [Photo/Xinhua]

Global goods, local celebrations

The Spring Festival, a time for family reunion and feasting, has seen a growing appetite for “foreign New Year goods” among Chinese consumers. From French wine to Chilean cherries, global delicacies have become essential elements of the Chinese New Year shopping list.

France’s Occitanie region, renowned for its wine, has been actively promoting its produce in China through platforms like the China International Import Expo and the “From French Farms to Chinese Tables” initiative. For French wine producers, the Spring Festival is one of the best opportunities to promote their products.

“Ahead of the Chinese New Year, we organized various events to support wine producers from the Occitanie region and importers in distributing their products so that they would be available during the Spring Festival,” said Catherine Machabert, food and wine international director of the economic development agency of the Occitanie Region.

“For the Year of the Snake, distributors have prepared a variety of gift boxes featuring snake-themed designs to promote the wines,” said Machabert, adding that Occitanie has always maintained strong ties with China and recognizes the importance of the Chinese market.

Meanwhile, French confectionery giant Andros has capitalized on the festive season by launching special gift packs and organizing in-store tastings. “Our sales during this Spring Festival are expected to double compared to previous years, setting a new record,” said Maxence Zeng, general manager of Andros China.

Chilean cherries, with their vibrant red hue and symbolic association with prosperity in the Chinese culture, have also become a favorite among Chinese consumers.

China is a very important market for fresh Chilean cherries, not only because it receives more than 90 percent of total exports, “but also because of the friendly relationship that has been built between our cherries and the people of China,” said Claudia Soler, executive director of the Chilean Cherry Committee.

A poster of the animated feature “Ne Zha 2” is pictured at a cinema in Shenyang, northeast China’s Liaoning Province, Feb. 6, 2025. [Photo/Xinhua]

Two-way cultural exchanges

The Spring Festival is not just about shopping and feasting; it’s also a time for travel and cultural exploration. With extended holidays and visa-free policies, Chinese tourists have been flocking to international destinations, while foreign visitors have been arriving in China to experience the festivities firsthand.

On the pristine beaches of Zanzibar, Tanzania, Chinese tourists Li Chenguang and his wife, Zhao Xue, marveled at the natural beauty surrounding them. “We can witness the Great Migration in the Serengeti, the azure waters of the Indian Ocean and even the snow-capped peaks of Mount Kilimanjaro,” Zhao exclaimed with excitement.

Meanwhile, in Malaysia, Kuala Lumpur International Airport has been bustling as Chinese tourists head to Malaysia for tropical experiences and Malaysian travelers embark on winter adventures in China. “We’re planning to visit Harbin, hike up Changbai Mountain and savor traditional northeastern dishes like Guo Bao Rou (crispy sweet and sour pork),” said Zhou Jinglang, a tour guide of a Malaysian travel agency.

According to the National Immigration Administration, China recorded 14.37 million cross-border trips during the Spring Festival holiday season, a 6.3 percent increase from a year earlier. About 1 million of these trips were made by foreign nationals, marking a 22.9 percent year-on-year rise.

Meanwhile, the 2025 Spring Festival holiday has marked a new milestone for China’s thriving film industry, with box office revenue soaring to an unprecedented 9.51 billion yuan (approximately 1.33 billion U.S. dollars) between Jan. 28 and Feb. 4, according to the China Film Administration.

A staggering 187 million moviegoers flocked to cinemas throughout the holiday week, setting new all-time highs in both box office earnings and audience turnout.

Released on Jan. 29, the first day of Chinese New Year, Chinese animated blockbuster “Ne Zha 2” has shattered multiple box office records, becoming the first film to cross 1 billion dollars in a single market and the first non-Hollywood title to join the coveted billion-dollar club.

Customers select newly arrived Chilean cherries at a supermarket in Tianjin, north China, Dec. 26, 2024. [Photo/Xinhua]

Vast business opportunities

The Spring Festival consumption boom has not only showcased the resilience and vitality of China’s economy but also highlighted the potential for international collaboration. From French dairy products to Chilean cherries, foreign businesses are eager to tap into the vast Chinese market and capitalize on emerging consumer trends.

“Occitanie has always maintained strong ties with China and recognizes the importance of the Chinese market. With its Shanghai office, the regional agency will continue to support wine, agri-food, and cosmetics companies in entering or expanding in the Chinese market,” said Machabert, the trade official of the Occitanie Region.

Meanwhile, Herve Lanoe, chief executive officer of French dairy company Fit Group, noted that Chinese consumers are increasingly prioritizing quality and health. “Butter with a protected designation of origin is highly appreciated by our Chinese client,” he said, adding that the company will try to take advantage of this opportunity.

Over the years, Garces Fruit, Chile’s largest cherry exporter, has been actively expanding its presence in China. “The Chinese market is fundamental for the trade of Chilean cherries,” said Hernan Garces Gazmuri, the export manager of Garces Fruit.

“It is a clear example of win-win,” said Garces Gazmuri, who settled in China in 2017 and opened an office in 2018. “It produces a lot of employment, from the harvests, the packaging, all this positive dynamic is generated thanks to the Chinese market. This industry does not exist without China.”

“We want to continue to explore the market, developing e-commerce and boosting our Garces Fruit brand. I think there is a lot to do,” he said.

MIL OSI China News –

February 11, 2025
MIL-OSI China: Chinese business delegation visits Kazakhstan for closer cooperation

Source: People’s Republic of China – State Council News

BEIJING, Feb. 10 — A delegation of Chinese entrepreneurs from the financial, energy, infrastructure and smart equipment sectors embarked on a four-day trip to Kazakhstan on Monday to promote economic and trade cooperation between the two countries, according to the China Council for the Promotion of International Trade (CCPIT).

The delegation, led by Ren Hongbin, chairman of the CCPIT, includes representatives from more than 30 Chinese enterprises such as CITIC Group, China National Petroleum Corporation (CNPC), Sinopec, China National Offshore Oil Corporation, and Sinochem Holdings. During the visit, they plan to sign cooperation documents and promote mutually beneficial outcomes.

Wu Junli, deputy chief economist with PetroChina Company Limited, a subsidiary of CNPC, said that the energy cooperation between China and Kazakhstan in the oil and gas sector is highly complementary. He noted that his company has established long-term and stable partnerships with Kazakh partners and expressed high expectations for the trip.

“We hope to engage in in-depth exchanges with logistics enterprises in Kazakhstan and other places in Central Asia through this trip,” Zhu Guangmei, deputy general manager at Beijing Tegene Robots Co., Ltd. said, adding that the company aims to promote the integration of intelligent logistics equipment with the needs of local companies, thereby improving efficiency and achieving win-win outcomes.

MIL OSI China News –

February 11, 2025
MIL-OSI USA: Senator Reverend Warnock Issues Statement on CFBP Shutting Down Following Orders from Trump Administration

US Senate News:

Source: United States Senator Reverend Raphael Warnock – Georgia

Senator Reverend Warnock Issues Statement on CFBP Shutting Down Following Orders from Trump Administration

Last Congress, Senator Reverend Warnock chaired the Subcommittee on Financial Institutions and Consumer Protection, which oversaw the Consumer Financial Protection Bureau (CFPB)

Senator Reverend Warnock successfully pushed CFPB to remove medical debt from credit scores, impact 12% of Georgians with medical debt

In partnership with Senator Reverend Warnock, CFPB addressed 266,560 complaints from Georgians, including 20,168 from servicemembers in the state

Senator Reverend Warnock: “Georgians I speak to every day don’t have the financial flexibility of the world’s richest man, many of them only have a few hundred dollars in their bank account. Those are the Georgians who will suffer from CFPB’s closure”

Washington, D.C. – Today, U.S. Senator Reverend Raphael Warnock (D-GA), former chair of the Senate Banking Subcommittee on Financial Institutions and Consumer Protection, issued the following statement on the closure of the Consumer Financial Protection Bureau (CFPB):

“The Trump Administration is trying to squeeze the voices of the people out of our democracy so those in power can create more wealth for people like themselves. The Consumer Financial Protection Bureau is their latest target.”

“This reckless action will hurt millions of Georgians and Americans across the country. The CFPB has been an eager partner in our work to protect working-class Americans from fraud, scams, and predatory companies. Fighting on behalf of consumers from mortgages and student loans to medical debt and junk fees, CFPB has returned billions to the public.”

“Georgians I speak to every day don’t have the financial flexibility of the world’s richest man, many of them only have a few hundred dollars in their bank account. Those are the Georgians who will suffer from the CFPB’s closure. I will remain laser-focused on doing everything I can to protect the financial security of Georgians and committed to making sure the protections secured by CFPB aren’t rolled back.”

Last Congress, Senator Warnock worked extensively with CFPB Chair, Rohit Chopra, to return funds and protect Georgians from future financial hardship, including:

MIL OSI USA News –

February 11, 2025
MIL-OSI USA: Senator Reverend Warnock, Colleagues Push Back on DOGE’s Interference into Departments of Education, Treasury and Access to Payments Systems for Millions of Americans

US Senate News:

Source: United States Senator Reverend Raphael Warnock – Georgia

Senator Reverend Warnock, Colleagues Push Back on DOGE’s Interference into Departments of Education, Treasury and Access to Payments Systems for Millions of Americans

In two separate efforts this week, Senator Reverend Warnock demanded answers into the “Department” of Government Efficiency (DOGE) employees’ data collection practices and access to federal agencies

The letters are part of an ongoing effort by several lawmakers to push back against the efforts of the Trump Administration and its billionaire allies to gut the federal government

The letters follow Senator Reverend Warnock’s nearly hour-long speech on the Senate floor opposing Russell Vought’s nomination to lead the Office of Management and Budget (OMB)

ICYMI from the New York Times: Senate Democrats Demand Clarity About Musk’s Efforts at Education Dept.

Washington, D.C. — Earlier this week, U.S. Senator Reverend Raphael Warnock (D-GA) joined two efforts to push back against the “Department” of Government Efficiency’s (DOGE) access to personal information and sensitive government data.

“If you want to know who Donald Trump is working for, look at who he’s surrounding himself with. The likes of Elon Musk, the billionaire, the richest man in the world who is now telling the rest of us that we need to tighten our belts. How quaint,” said Senator Reverend Warnock during his Wednesday floor speech.

The first letter, authored by Senator Elizabeth Warren (D-MA) and Senate Minority Leader Chuck Schumer (D-NY), was sent to Acting Secretary of the Department of Education (ED), Denise Carter, launching a probe into recent reports that Elon Musk’s Department of Government Efficiency (DOGE) has infiltrated the Department of Education and that “DOGE staffers have gained access to federal student loan data, which includes personal information for millions of borrowers.”

“This deeply troubling report raises questions about potential exposures of Americans’ private data, the abuse of this data by the Trump Administration, and whether officials who have access to the data may have violated the law or the federal government’s procedures for handling sensitive information,” wrote the senators.

In the second letter, addressed to Senate Banking and Finance committee Chairs, Tim Scott (R-SC) and Mike Crapo (R-ID) respectively, Senator Warnock joined 16 other Senate Democrats in calling for an immediate hearing to examine the reports that officials associated with the DOGE have gained access to systems that control millions of payments to American citizens.

“Putting this system in the hands of unaccountable political actors raises significant economic and national security risks. Information in these systems is critical to the Department’s management of the national debt. The takeover by Mr. Musk and his associates was achieved by engineering the ouster of a key official responsible for managing the extraordinary measures the Department has been taking to avoid a default. A misstep with these payment systems could lead to a technical default with a wide range of devastating consequences, from seniors missing Social Security payments to a global financial meltdown that costs trillions of dollars and millions of jobs,” wrote the Senators.

The letter to acting DOE Secretary Denise Carter can be viewed HERE.

The letter to Ranking Members Scott and Crapo can be viewed HERE.

MIL OSI USA News –

February 11, 2025
MIL-OSI United Kingdom: Supporting Orkney’s farmers and food producers

Source: Scottish Government

Plans for new abattoir get funding boost.

Orkney’s farmers, crofters and producers could benefit from a new local abattoir which will help them bring their produce to market, benefit the island’s economy and support high-welfare meat production.

First Minister John Swinney visited Orkney Auction Mart, which has received a £15,000 grant as a lead partner to help build the business case for a new, fit-for-purpose processing plant.

The funding is part of the Scottish Government’s Small Producers Pilot Fund, which this year has provided a total of £256,500 to support private kill abattoirs including in Shetland, Wishaw, Barra, Dingwall and Mull.

By creating more localised supply chains, the Fund aims to increase the proportion of food grown and processed by small farms and small holders, and consumed within the community.

The First Minister said:

“The Scottish Government is committed to supporting small producers and strengthening Scotland’s food supply chain. We know that local marts and abattoirs play an important role in supporting island businesses and ensuring the best animal welfare.

“A new facility in Orkney would bring many benefits for the people who live and work here, supporting economic growth in the area and the future sustainability of the island’s food production industry. We will continue to work with HIE and the Orkney Islands Council as the project develops.”

Chair of Orkney Auction Mart Alan Corrigall said:

“We were delighted to welcome the First Minister to Orkney to explain, first hand, how vital a new abattoir is for our community. Our case has been well received and we very much welcome the Scottish Government’s support. We’re looking forward to working in partnership with local butchers and other stakeholders, to build a strong business case for this important project.”

Background

Supporting Scotland’s small producers – gov.scot

MIL OSI United Kingdom –

February 11, 2025
MIL-OSI United Kingdom: 10,000 more apprentices as Government slashes red tape to boost growth 
Source: United Kingdom – Executive Government & Departments

Shorter and flexible apprenticeships and new English and maths requirements to boost skills and support employers 
Up to 10,000 more apprentices will be able to qualify per year as the government cuts red tape to boost economic growth by giving employers more flexibility over maths and English requirements.

Rules slowing down the training of workers in key industries like construction will also be changed as the government reveals plans to turbocharge growth industries with reduced bureaucracy for apprenticeships and new leadership also appointed for Skills England.

Leading employers have been calling for these changes. Businesses will now be able to decide whether adult learners over the age of 19 when they start their apprenticeship course will need to complete a level 2 English and maths qualification (equivalent to GCSE) in order to pass it. This means more learners can qualify in high demand sectors such as healthcare, social care and construction, helping to drive growth and meet government targets in key areas such as housebuilding.

This could mean as many as 10,000 more apprentices per year will be able to complete their apprenticeship, unlocking opportunity in communities all over the country and breaking the link between background and success. It does not mean that apprentices won’t be assessed on core English and maths skills relevant to their occupation, but it does mean that apprentices will be able to focus more on their paid work.

The minimum duration of an apprenticeship will be reduced to eight months, down from the current minimum of 12 months.

Secretary of State for Education, Bridget Phillipson said:  

Growing the economy and opportunity for all are fundamental Missions of our Plan for Change, and we are determined to support apprentices throughout this National Apprenticeship Week and beyond.

Businesses have been calling out for change to the apprenticeship system and these reforms show that we are listening. Our new offer of shorter apprenticeships and less red tape strikes the right balance between speed and quality, helping achieve our number one mission to grow the economy. 

Skills England will be a major driver in addressing the skills gaps needed to support employers up and down the country and I look forward to working with the new leadership.

Craig Beaumont, Executive Director, Federation of Small Businesses said:

It’s encouraging to see Government shorten the length of apprenticeships, and give employers the right to decide whether Level 2 English and Maths is needed. These flexibilities should help SME employers fill skills gaps faster.

These announcements come as the Education Secretary kicked off National Apprenticeship Week yesterday, which celebrates the achievements of apprentices around the country and the positive impact they make to communities, businesses, and the wider economy. 

The plans also follow the Prime Minister’s announcement in October, when he pledged to reform the new growth and skills offer to ensure young people are better supported.  

Three trailblazer apprenticeships in key shortage occupations will look to pioneer the new shorter apprenticeship approach, with apprentices in green energy, healthcare and film/TV production set to be able to take on these new courses.  

Changes to the minimum length of an apprenticeship will be introduced from August 2025 subject to the legislative timetable, with changes to English and maths requirements coming into effect immediately. This will be hugely beneficial to employers in sectors like construction which have an urgent need for qualified workers, helping to meet the government’s mission to build 1.5 million homes by the end of this parliament.  

The Education Secretary, Bridget Phillipson, has also announced that Phil Smith CBE will chair Skills England, the new nationwide body for skills, with Sir David Bell serving as Vice Chair. Tessa Griffiths and Sarah Maclean will jointly serve as CEO, while Gemma Marsh will serve as Deputy CEO.

Phil Smith is the former chair and CEO of international tech and telecoms giant Cisco. He brings extensive industry experience in digital, tech and innovation leadership and his appointment signals the seriousness of the government’s plan for growth, unlocked via a national vision for skills.  

Sir David Bell has four decades of experience in the education and skills sector and is currently Vice-Chancellor and Chief Executive of the University of Sunderland 

Phil Smith CBE said:

I know from my time in industry how valuable direct engagement from employers can be in shaping government policy. 

We need a dynamic skills system that can drive economic growth, and I’m excited to be involved in shaping Skills England as part of that.

Sir David Bell said:  

I look forward to working with Phil Smith, other colleagues in Skills England, and the Department for Education to help deliver economic growth and meet the nation’s skills needs. 

I know from my experience in public policy and higher education that providing the skilled workforce which Britain requires depends on industry, government and education organisations working together. I am very confident therefore that Skills England will provide the strategic oversight to make that happen.

Skills England will bring together key partners to meet the skills needs of the next decade across all regions of England. More than 700 stakeholders have already been engaged through roundtables, webinars and engagement events.

It will work with employers, national, regional and local government, providers, and unions to identify skills shortages and provide strong strategic direction for the skills system. 

One of Skills England’s first orders of business will be to identify which apprenticeships would be best served by the shorter duration approach. Skills England will prioritise key shortage occupations as per the industrial strategy, helping to boost growth under our Plan for Change.  

Euan Blair MBE, founder and CEO, Multiverse said:

This important announcement will do so much to widen and expand access to apprenticeships and should be welcomed as a move to put our skills system at the heart of the growth Mission. For years this requirement has created an artificial barrier between apprenticeships and those who could benefit from them, including young people from disadvantaged backgrounds and older workers whose roles are at risk of job displacement, while often diluting the quality and purpose of an apprenticeship. Apprenticeships are about giving as many people as possible the ability to improve their career prospects and contribute meaningfully to their employers: this move helps to underline that focus.

Sharon Blyfield, Head of Early Careers at Coca-Cola Europacific Partners GB, said:

At Coca-Cola Europacific Partners, we believe that the inclusion of functional skills as an exit for apprenticeships have often hindered many people from reaching their full potential. The announced changes will help make apprenticeships a more viable option to more people, not only new recruits but also for our current employees who missed out on these skills during their school years. These changes will enable them to successfully complete their apprenticeships without added barriers, which is brilliant news.

Alex Hall-Chen Principal Policy Advisor, Sustainability, Skills, and Employment said:

Apprenticeships are a vital tool in tackling the UK’s persistent skills shortages, and this announcement is a welcome step in removing unnecessary barriers to increasing apprenticeship numbers.

Research with IoD members clearly showed that giving employers flexibility when it comes to English and Maths qualifications for adult apprentices has the potential to unlock more apprenticeship opportunities.

Employers are well-placed to judge whether English and Maths qualifications are the most appropriate route to evidence or develop the literacy and numeracy skills needed for success in the given career path.

Chris Bailey, Starbucks UK Early Careers Manager said:

Starbucks UK welcomes the announcement around relaxing the requirements of functional skills for learners 19yrs+. Removing this significant barrier will support our commitment to enrolling more apprentices, particularly those who may have previously faced challenges with functional skills assessments. By embracing this change we can empower more of our Partners to gain valuable recognised qualifications, develop their skills, and progress within Starbucks and their careers.

Lisa Pinfield, Group Director of Performance & Development, Capita said:

Making Functional Skills requirements more flexible for apprenticeships will open doors for more adult learners, especially those from diverse backgrounds. By removing unnecessary barriers, employers can welcome a wider pool of talented apprentices who bring valuable skills and experience. This change will help businesses grow, support social mobility, and give more people the chance to succeed through apprenticeships.

Jo Rackham, Executive Director of People of the John Lewis Partnership, said:

Apprenticeships help us build and retain the skills we need to deliver brilliant service to our customers and power our growth. They’ve helped 5,000 employees, or as we’re called Partners, progress in their careers since 2017.

We welcome the relaxation in functional skills requirements. It’s an important step towards the reform needed to help more people access apprenticeships. Gaining GCSE Maths and English qualifications can be a significant barrier to starting or completing one and we believe it will help more disadvantaged people, including those who leave the care system or those with learning disabilities, make a career for themselves.

Matthew Percival, Future of Work and Skills Director, CBI said:

Apprenticeships have an important role to play in building the skills for growth. Greater flexibility on minimum length and on English and Maths requirements will help businesses to offer more workers the opportunity to add to their skills.

DfE media enquiries

Central newsdesk – for journalists 020 7783 8300

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Published 11 February 2025
MIL OSI United Kingdom –
February 11, 2025
MIL-OSI United Kingdom: UK-backed AI companies to transform British cancer care and spark new drug breakthroughs
Source: United Kingdom – Executive Government & Departments

New AI models to diagnose and treat cancer and other incurable diseases will be made possible thanks to joint public-private investment giving flexible funding to British AI firms and researchers.
£82 million for 3 UK research projects Match-funding for European compute partnership.

£82.6 million in new flexible forms of research funding to support UK companies tackling cancer and accelerating drug discovery using AI and more

Collaboration between British and European experts on AI and High-Performance Computing gets match-funding boost

Backing for both these schemes shows the UK’s commitment to seizing the potential of new technologies like AI, to drive forward the Plan for Change

The UK government is today (Tuesday 11 February) unveiling £82.6 million in new flexible forms of research funding, plus a new commitment to give UK researchers access to cutting-edge computing resources as part of a plan to unlock the power of AI.

Two of the three projects benefiting from this support, which is helping to pioneer new ways of conducting research, will harness the power of AI to develop treatments and diagnostics for diseases like cancer and Alzheimer’s.

Coming as day two of the AI Action Summit gets underway, this is the latest evidence of the government’s commitment to seizing the potential of new technologies like AI to drive forward the Plan for Change, delivering economic growth and progress in key fields like health.

The government is putting £37.9 million backing behind three innovative British research projects, the Research Ventures Catalyst (RVC) programme. Together with a further £44.7 million in co-investment across the three projects, from other sources, this makes for a total £82.6 million backing.

The RVC programme is delivering novel ways of funding groundbreaking research, such as endowments, which are flexible and reflect the real needs of cutting-edge innovators. Too often, inflexible funding has been a barrier to some of the most innovative and creative research or has been an obstacle to new innovative businesses looking to scale-up. The RVC programme will support pioneering work training AI on the NHS’s vast pool of cancer data, drug discovery research, and more.

Today also sees the government expand UK involvement in the European High-Performance Computing (EuroHPC) Joint Undertaking by committing £7.8 million to fund UK researchers and businesses’ participation in EuroHPC research. This will mean British AI and high-performance computing researchers can work unobstructed with their peers across Europe. International collaboration and broad access to computational resources will be key to unlocking the benefits AI promises to deliver across society and the economy.

These announcements come on the final day of the AI Action Summit in France, where world leaders and AI companies have been holding a series of talks focused on the opportunities the technology can deliver for communities across the globe. The opportunities of AI are an area the UK government has placed a heavy focus on to kickstart 2025 – unveiling a new blueprint with 50 proposals in January which will spark a decade of national renewal.

Science and Technology Secretary, Peter Kyle said:

The focus of this Summit has been on how we can put AI to work in the public interest, and today’s announcements are living proof of how the UK is leading that charge through our Plan for Change.

We’ve already set out a bold new blueprint for AI which will help to spark a decade of national renewal, and key to that plan is supporting our expert researchers and businesses with the support they need to drive forward their game-changing innovations.

Today, we open new avenues for them to do exactly that – building bridges with our international partners so the entire global community can share in the boundless opportunities of AI-powered progress and backing new innovative companies applying AI to tackle real-world challenges.

Health and Social Care Secretary Wes Streeting said:

NHS innovation saved my life when I was diagnosed with cancer and treated by a world-class surgeon equipped with a robot. I want more patients to benefit from this kind of groundbreaking treatment, and AI will be central to our efforts.

This new funding is another step to unlock the enormous potential of AI for cancer research and drug discovery – ensuring more patients like me experience the highest quality care.

AI will help us speed up diagnoses, cut waiting times for patients and free up staff, as we deliver our Plan for Change and shift the NHS from analogue to digital.

EuroHPC is a high-powered compute partnership which pools EU resources with those of participating states. Businesses and researchers will now be supported to participate in EuroHPC research grants in the development of supercomputers and in their deployment to tackle the most pressing scientific challenges, working in tandem with like-minded partners on the continent. UKRI will work with businesses and researchers to support them to apply for grants where match-funding is available.

The three projects being supported by the Research Ventures Catalyst (RVC) programme.

PharosAI

£18.9 million government funding plus £24.7 million co-investment. PharosAI, whose King’s College London site is being visited by AI Minister Clark today, will bring together decades of NHS and Biobank data and host it on a unified, powerful, secure, AI platform. This will revolutionise cancer care by accelerating the development of the next generation of AI models which will deliver new breakthroughs for diagnosing and treating the disease – transforming outcomes for patients and saving lives.

Professor Anita Grigoriadis, Professor of Molecular and Digital Pathology at King’s College London, CEO of PharosAI said:

AI has the potential to revolutionise cancer care. The UK has a real opportunity to be a major innovator, leading to faster diagnosis, novel and more targeted cancer treatments, and better-informed healthcare for patients. PharosAI will democratise cancer AI and create an ecosystem to navigate the path to AI-powered precision medicine. Thanks to the RVC programme, we will build an unique operational approach between King’s College London, Queen Mary University of London, Guy’s and St Thomas’ NHS Foundation Trust, Barts Health Trust and industry partners. Our innovative collaboration will accelerate scientific breakthroughs and bring vastly improved cancer care to tomorrow’s patients.

Bind Research

£12.9 million government funding plus £12.9 million co-investment. The team at Bind Research meanwhile will tap into AI to learn the rules of drugging currently undruggable proteins, offering hope to cure diseases that were once thought to be untreatable. It will do this by targeting disordered proteins associated with various diseases which could unlock scores of new avenues for treatment – potentially giving thousands of patients across the country a new lifeline.

Dr Gabi Heller, Dr Thomas Löhr, and Dr Gogulan Karunanithy, scientific co-founders, Bind Research said:

The Research Ventures Catalyst Programme has been a game changer for Bind Research. It allowed us to reimagine our approach by adopting a not-for-profit Focused Research Organisation model – a strategy that, until now, was largely uncharted territory in the UK. This innovative structure enables us to harness collective expertise to deliver AI-enhanced tools and datasets as public goods to advance our mission of making disordered proteins druggable for everyone.

MEMetic

£6.1 million government funding plus £7.1 million co-investment. MEMetic will receive funding for work to revolutionise water management by combining nature’s highly evolved solutions with state-of-the-art polymer chemistry. This will support them to develop new solutions in a range of fields from lithium recovery in battery recycling, to facilitating clean water access – helping the world tackle the climate crisis.

Professor Alan Goddard and Dr Matthew Derry, Aston University said:

MEMetic represents the culmination of years of planning a significant, challenging, interdisciplinary research program which promises massive real-world benefits. This RVC award will allow us to leverage our fundamental science to create bespoke bioinspired filtration membranes for a range of industries. Such research really requires long term funding which is set up to take research to an applied setting and the Research Venture we envisage perfectly matches our philanthropic aims for water treatment for all.

Notes to editors

PharosAI is a joint venture between King’s College London, Queen Mary University of London, Guy’s and St Thomas’ NHS Foundation Trust, and Barts Health NHS Trust.

MEMetic is led by researchers at the Aston Institute for Membrane Excellence at Aston University.

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Published 11 February 2025
MIL OSI United Kingdom –
February 11, 2025
MIL-Evening Report: As Trump abandons the old world order, NZ must find its place in a new ‘Pax Autocratica’

Source: The Conversation (Au and NZ) – By Chris Ogden, Associate Professor in Global Studies, University of Auckland, Waipapa Taumata Rau

Donald Trump is moving rapidly to change the contours of contemporary international affairs, with the old US-dominated world order breaking down into a multipolar one with many centres of power.

The shift already includes the US leaving the World Health Organization and the Paris Climate Accords, questioning the value of the United Nations, and radical cuts to the US Agency for International Development (USAID).

Such a new geopolitical age also involves an assertion of raw power, with Trump using the threat of tariffs to assert global authority and negotiating positions.

While the US is not significantly less powerful, this new era may see it wield that power in more openly self-interested and isolationist ways. As new US Secretary of State Marco Rubio put it in January, “the post-war global order is not just obsolete – it is now a weapon being used against us”.

With global democracy in retreat, the emerging international order looks to be moving in an authoritarian direction. As it does, the position of New Zealand’s vibrant democracy will come under mounting pressure.

But world orders have come and gone for millennia, reflecting the ebb and flow of global economic, political and military power. Looking back to previous eras, and how countries and cultures responded to shifting geopolitical realities, can help us understand what is happening more clearly.

An evolving world order

Previous orders have often focused on specific centres – or “poles” – of power. These include the Concert of Europe from 1814 to 1914, the bipolar world of the Cold War between the US and the Soviet Union, and the unipolar world of American dominance after the end of the Cold War and since the September 11 attacks in 2001.

Periods of single-power dominance (or hegemony) are referred to as a “pax”, from the Latin for “peace”. We have seen the Pax Romana of the Roman Empire (27 BCE to 180 AD), multiple Pax Sinicas around China (most recently the Qing Dynasty 1644 to 1912), Pax Mongolica (the Mongol Empire from 1271 to 1368) and Pax Britannica (the British Empire from 1815 to 1924).

It is the Pax Americana of the US, from 1945 to the present, that Trump seems bent on dismantling. We now live in an international order that is visibly in flux. With autocracy on the rise and the US at is vanguard, a “Pax Autocratica” is emerging.

This is accentuated by the rapid rise of Asia as the main sphere of economic and military growth, particularly China and India. The world’s two most populous countries had the world’s largest and third largest economies respectively in 2023, and the second and fourth highest levels of military spending.

The simultaneous rise of multiple power centres was already challenging the Pax Americana. Now, a new international order appears to be a certainty, with Trump openly adapting to multipolarity. Several major powers now compete for global influence, rather than any one country dominating.

China’s preference for a multipolar international order is shared by India and Russia. Without one dominant entity, it will be the political and social basis of this order, as determined by its major actors, that matters most – not who leads it.

Pax Democratica

The current (now waning) international order has been underpinned by specific social, political and economic values stemming from the national identity and historical experience of the US.

According to US political expert G. John Ikenberry, former president Woodrow Wilson’s agenda for peace after the first world war sought to “reflect distinctive American ideas and ideals”.

Woodrow imagined an order based on collective security and shared sovereignty, liberal principles of democracy and universal human rights, free trade and international law.

As its dominance and military strength increased in the 20th century, the US also provided security to other countries. Such power enabled Washington to create open global trade markets, as well as build core global institutions like the World Bank, International Monetary Fund, World Trade Organization, United Nations and NATO.

For Ikenberry, this Pax Americana (we might call it a Pax Democratica) rested on consent to the US’s “provision of security, wealth creation, and social advancement”. This was aided by the its more than 800 military bases in over 80 countries.

The democratic deficit

Trump undercuts the central tenets of this liberal world order and accelerates a slide towards authoritarianism. Like Russia, India and China, the US is also actively constraining human rights, attacking minorities and weakening its electoral system.

This democratic retreat leaves a country such as New Zealand in a global minority. If Trump targets the region or country with economic tariffs, that precariousness might increase.

On the other hand, previous world orders have not been truly hegemonic. Pax Britannica did not encompass the entire world. Nor did Pax Americana, which didn’t include China, India, the former Soviet bloc, much of the Islamic world and many developing countries.

This suggests pockets of democracy can survive within a Pax Autocratica, especially in a multipolar world which is more tolerant of political independence.

The Economist Intelligence Unit’s 2023 Democracy Index ranked New Zealand, the Nordic countries, Switzerland, Iceland and Ireland highest because their citizens

choose their political leaders in free and fair elections, enjoy civil liberties, prefer democracy over other political systems, can and do participate in politics, and have a functioning government that acts on their behalf.

It is these countries that can be at the vanguard of democratic resilience.

Chris Ogden is a Senior Research Fellow with The Foreign Policy Centre, London.

– ref. As Trump abandons the old world order, NZ must find its place in a new ‘Pax Autocratica’ – https://theconversation.com/as-trump-abandons-the-old-world-order-nz-must-find-its-place-in-a-new-pax-autocratica-249358

MIL OSI Analysis – EveningReport.nz –

February 11, 2025
MIL-OSI Russia: MIL Analysis – Five best articles in Russian for 10.02.2025

MIL Analysis: Here are the top five Russian language articles published today. The analysis consists of five articles that are prioritized at the moment.

Today’s analysis provides us with economic performance and engagement with different communities. There is also a trend towards respect for human rights. The economy in China is growing and prospering.

Education is increasing computerization skills and introducing artificial intelligence.

“Samaraneftegaz” shows the innovative activities of Rosneft. Oil reserves have grown. In addition, science is developing day by day, so NSU scientists have developed a technique for measuring ultra-low concentrations of radioactive substances.

Below you can read one of the articles.

1. Financial news: Rules for managing conflicts of interest for NPFs.

Non-state pension funds (NPFs) will be required to identify and manage conflicts of interest. Funds will be able to allow conflicts to arise only if they have notified their clients and their rights are not violated. The Ministry of Justice of Russia has registered the corresponding decree of the Bank of Russia.

2. Cultural Code of the Celestial Empire: How to Do Business in China.

Higher School of Economics

By 2035, China will overtake the US in terms of GDP and become the world’s largest economy. Today, there are over 108 million entrepreneurs and 50 million industrial enterprises in this country. Last year, the economy grew by 4.8%. This opens up unique opportunities for Russian companies. Vysshka experts tell us how to enter one of the most promising markets.

3. Vyshka launches advanced training course on AI in education.

The Computer Science Department of the National Research University Higher School of Economics is launching an advanced training course on artificial intelligence in education. The program is designed for educators, teachers, methodologists planning to integrate AI technologies into the educational process, as well as for management teams of educational institutions interested in improving educational processes through the introduction of AI.

4. “Samaraneftegaz replenished oil reserves by 180%.

“Samaraneftegaz (part of Rosneft’s oil production complex) added 19 million tons of commercial oil reserves by the end of 2024, which made it possible to replenish oil production 1.8 times.

5. NSU scientists have developed a methodology for determining ultra-low concentrations of radioactive substances.

Scientists of the Physics Department of Novosibirsk State University have developed a technique for measuring ultra-small concentrations of radioactive substances whose decay is accompanied by gamma radiation. Data collection is carried out using a detector made of ultrapure germanium, which is part of the equipment of the NSU Interdepartmental Laboratory of Atomic Physics and Spectrometry; a special hardware and software system has been created for data processing. The first project implemented with the use of this technique is research work to determine the level of radioactive substances (radon) in the soil of mines and coal mines in the Kemerovo region.

Learn more about MIL’s content and data services by visiting milnz.co.nz.

Regards MIL!

MIL OSI Russia News –

February 11, 2025
MIL-OSI United Nations: Geopolitical, Environmental, Socioeconomic Crises Threatening Development Gains, Under-Secretary-General Tells Commission for Social Development

Source: United Nations General Assembly and Security Council

Global solidarity is more essential than ever to address poverty, hunger, inequality and other pressing challenges facing humanity, speakers emphasized today at the opening of the 2025 annual session of the Commission for Social Development, calling for increased investment in social protection to meet these urgent needs.

“We must step up our efforts and confront these challenges and development gaps, with determination and a collective resolve,” said Li Junhua, Under-Secretary-General for Economic and Social Affairs. He noted that geopolitical, environmental and socioeconomic crises — compounded by megatrends like digital transformation and aging populations — threaten hard-won development gains, jeopardizing solidarity, social inclusion and social cohesion.

“We must reverse these trends,” urged Philémon Yang (Cameroon), President of the General Assembly, adding: “When every $1 invested in social protection yields $3 of return, measured in improved health and productivity — we literally have everything to gain. It offers our best shot to ensure we leave no one behind”.

The Commission — established in 1946 by the Economic and Social Council as one of its functional organs — advises the United Nations on social development issues. Its sixty-third session will run through 14 February under the priority theme: “Strengthening solidarity, social inclusion and social cohesion to accelerate the delivery of the commitments of the Copenhagen Declaration on Social Development and Programme of Action of the World Summit for Social Development as well as the implementation of the 2030 Agenda for Sustainable Development”.

In his introductory remarks, Bob Rae (Canada), President of the Economic and Social Council, stressed the importance of leaving no one behind and expressed deep concern about a high level of unemployment among young people: “If young people can’t get their foot on the ladder, it creates a huge range of social problems.” Developing an international legal instrument on the rights of older people could strengthen efforts to shift perceptions about old people and ageism and help understand what more can be done to allow them to become and remain active participants in their societies. Moreover, he stressed the need to address the challenges faced by people with disabilities, which “we have not made anywhere near the progress that we need to make”.

Liana Almony, Chair of the NGO (non-governmental organization) Committee for Social Development, demanded modifying certain sociocultural patterns and norms to eliminate stigma, prejudices and stereotypes. “Vulnerable and marginalized individuals face social injustice, discrimination and exclusion in many, if not all, aspects of their everyday lives,” she said, adding: “Legal recognition and identity play a critical role to ensure the global community upholds its promise of leaving no one behind.”

Judy Kipkenda, Co-Chair of the UN Global Indigenous Youth Caucus, speaking on behalf of global youth constituents, put forward several recommendations to the Commission, including empowering youth-led organizations and providing funding, technical support, and platforms for youth-led initiatives that address social and economic challenges. “By investing in youth, promoting equity and fostering social harmony, we can create a more just, equitable and sustainable future for all,” she said.

“The year 2025 is a crucial year,” said Guy Rider, Under-Secretary-General for Policy in the Executive Office of the Secretary-General, noting that the second World Summit for Social Development [to be held in Doha in November 2025] must lay the foundation in fulfilling the commitments of the Copenhagen Declaration and accelerating the implementation of the 2030 Agenda. “With only five years remaining until our SDG [Sustainable Development Goal] deadline, we simply must secure progress in the social dimension of sustainable development,” he said, adding: “We must listen more attentively to people’s voices and ensure that they can shape their own futures.”

Commission Chair Krzysztof Maria Szczerski (Poland) emphasized that the expected outcome of this session is actionable policy recommendations to support Member States and the Economic and Social Council in implementing the outcomes of the 2023 SDG Summit and the 2024 Summit of the Future, thereby accelerating the implementation of 2030 Agenda and preparing for the second World Summit for Social Development.

The Commission also held a high-level panel discussion to take stock of the first World Summit in 1995 and the upcoming second conference.

In his keynote speech, Danilo Türk, President of Club de Madrid, recalled that as a former President of Slovenia, he was personally involved in the preparation for the first Copenhagen Summit 30 years ago. He pointed out that in the current global political climate, social development and social issues are often neglected or seen as not among the main priorities. “That’s a big problem, a problem that affects the United Nations as an organization, as a community of nations,” he said. So, the second Summit in Doha should, most importantly, reaffirm the existence of the UN social development mandate.

He also highlighted the need to recognize that social challenges are increasingly multidimensional, requiring integrated, synergetic approaches to policymaking. It is also essential to develop a practical methodology to systemically assess both policy proposals and the obstacles to their implementation, ensuring that ambitious goals are not set without clear mechanisms for action. He also called for creating a dedicated institutional space for UN agencies with strong social mandates to collaborate strategically, enhancing the Economic and Social Council’s role in fostering integrated solutions. “The 1995 Copenhagen Summit was known as the ‘People’s Summit’, and we must reignite that spirit today,” he concluded.

Valérie Berset Bircher, Deputy Head of the International Labour Affairs Division of the Swiss State Secretariat for Economic Affairs, said that advances have been made since Copenhagen. “Extreme poverty has declined, life expectancy has increased, more children are in school and the world has witnessed economic growth,” she said. The COVID-19 pandemic, however, has slowed progress. “We need to have policies, measures and action that ensure that we are truly leaving no one behind,” she added. Wealth inequality in the last several years has widened, leaving many unable to benefit from economic growth. Women, young people and informal workers often lack access to stable jobs, fair wages and social protection. As it prepares for the upcoming Summit in Doha, Switzerland will focus on policies that strengthen labour institutions and individual capacity to take advantage of the opportunities offered by today’s changing world, with a particular emphasis on vulnerable groups.

Mario Nava, Director-General for Employment, Social Affairs and Inclusion of the European Commission, outlined efforts undertaken by the bloc. Social rights are “at the centre of our action” with three headline targets that deal with employment, skill development and poverty eradication. On the latter, the bloc will propose its first anti-poverty strategy in 2026 addressing the root causes of the scourge. It will strengthen its child guarantee supported by the European Social Fund. A new pact for European social dialogue has been agreed and will be signed at the beginning of March, he noted. Looking forward, the views of social partners and civil society must be duly considered at the second Summit, where world leaders must renew the social contract, rebuild trust and embrace a comprehensive vision of human rights. International labour standards remain the basis for social development, he added.

Anousheh Karvar, French Government representative to the International Labor Organization (ILO) and to the G-7 and G-20 for labour, employment and social protection, said that it is time to bring about social justice to as many people as possible. There are many challenges that remain unresolved. “As we speak, more than half of the world population does not have access to any social protections,” she stressed. For 30 years, there has been a “certain fatigue”, she went on to say, urging the need to “breathe new life into the social agenda”. The November 2025 Summit in Doha must not limit itself to “stock taking or goal setting”. It must also call upon the world to come to an agreement on how to achieve development goals. “We must fully implement the standards and norms set by the International Labour Organization (ILO) for more than 100 years,” she urged.

Eleni Nikolaidou, Expert Minister Counsellor and Deputy Director General of Hellenic Aid at the Ministry of Foreign Affairs of Greece, said that the second Summit must advocate for sustained, long-term investment in social protection and employment programmes, strengthening social protection systems. The Summit must also ensure equitable access to quality education and universal access to healthcare. It must promote policies that support active aging by ensuring the inclusion of older persons in social, economic and cultural life, and leverage technology and digital transformation. The Summit must also strengthen the rights of persons with disabilities by implementing comprehensive policies that promote accessibility, social inclusion and equal opportunities. “Finally, we need a clear road map for action beyond 2025 — the Summit should not only review past commitments but set out specific, time-bound goals for implementation, with monitoring mechanisms to track progress and accountability,” she said.

Fabio Veras, Senior Researcher at the Institute for Applied Economic Research, and Head of the International Policy Center for Inclusive Development, said that the concentration of wealth in the hands of a few continues to hinder social mobility. Climate change, armed conflicts and economic crises amplify existing vulnerabilities, undermining progress and hindering the achievements of the SDGs. “The lack of adequate social coverage, particularly in low-income countries, further compromises progress on the SDGs,” he said. “Billions of people remain unprotected against life’s inherent risks perpetuating cycles of poverty and vulnerability,” he went on to say. Further, he urged the need for a fundamental review of the international financial system to ensure that developing countries have access to affordable, long-term financing. “Expanding universal social protection is necessary for reducing poverty, eradicating hunger and reducing inequality,” he added.

Charles Katoanga, Director of the Division for Inclusive Social Development at the UN’s Department of Economic and Social Affairs, introduced the following four reports of the Secretary-General: “Strengthening social cohesion through social inclusion” (document E/CN.5/2025/3); Social dimensions of the New Partnership for Africa’s Development (document E/CN.5/2025/2); Policies and programmes involving youth (document E/CN.5/2025/4); and Modalities for the fifth review and appraisal of the implementation of the Madrid International Plan of Action on Ageing, 2002 (document E/CN.5/2025/5). He also introduced a note of the Secretary-General on “Social resilience and social development” (document E/CN.5/2025/7).

In other business, the Commission elected, by acclamation, Joslyne Kwishaka (Burundi), AlMaha Mubarak Al-Thani (Qatar) and Oliver Gruenbacher (Austria) as Vice-Chairs, and designated Vice-Chair Paola Andrea Morris Garrido (Guatemala) to serve as Rapporteur. The Commission also adopted the provisional agenda (document E/CN.5/2025/1).

MIL OSI United Nations News –

February 11, 2025
MIL-OSI Security: Prison Officer Falsely Claiming Military Heroism Sentenced for Smuggling Methamphetamine into Hays State Prison and Taking Bribes

Source: Office of United States Attorneys

Rome, Ga. — Nicholas Grindle was sentenced today for conspiracy to possess methamphetamine with the intent to distribute and bribery. During his sentencing hearing, Grindle was challenged for asking the Court for mercy based on false claims that he had been injured in combat during his military service.

“Grindle violated his oath of office by smuggling drugs into a prison he swore to protect,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “He then compounded this crime by lying about his military service.”

“It’s alarming to think that this prison guard was brazen enough to distribute dangerous drugs and other contraband,” said Jae W. Chung, Acting Special Agent in Charge of the Atlanta Division. “He must now face the consequences.”

“The GDC does not tolerate actions of individuals who choose to bring discredit to the values of our agency and put their fellow officers at risk,” said Tyrone Oliver, Commissioner of the Georgia Department of Corrections. “We appreciate the support of our federal partners in ensuring that justice will be served, and we are proud of those officers involved who were diligent in stopping further introduction of dangerous contraband into one of our facilities.”

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: While employed as a guard at Hays State Prison, Grindle smuggled methamphetamine and other contraband to inmates for over a month in late 2023 and early 2024. Grindle was caught by fellow officers after they searched his locker and located methamphetamine, cell phones, and other contraband he planned to distribute within the prison. A review of his financial records also showed that he was receiving bribery payments from inmates to bring drugs and other contraband into the prison.

Grindle had previously deployed to Afghanistan while in the United States Army. During his sentencing hearing Grindle falsely told the Court that, while in Afghanistan, he had been stabbed in the shoulder by a Taliban fighter and killed the fighter with his pistol. A review of Grindle’s military records as well as multiple letters submitted to the Court by former members of his unit demonstrated that his claims of heroism and sustaining an injury in combat were false.

Grindle, 32, of Summerville, Georgia, was sentenced by United States District Judge William M. Ray, II, to 87 months of confinement, followed by three years of supervised release. Grindle was convicted on these charges on November 21, 2024, after he pleaded guilty.

This case was investigated by the Drug Enforcement Administration, the Georgia Department of Corrections Office of Professional Standards, and the Lookout Mountain, Georgia, Drug Task Force.

Assistant United States Attorney Calvin A. Leipold, III prosecuted the case.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

MIL Security OSI –

February 11, 2025
MIL-OSI USA: ICYMI: Sen. Joni Ernst in WSJ: USAID Is a Rogue Agency

US Senate News:

Source: United States Senator Joni Ernst (R-IA)
WASHINGTON – In case you missed it, U.S. Senator Joni Ernst (R-Iowa) detailed in the Wall Street Journal how the U.S. Agency for International Development (USAID) acts against our nation’s best interests and stonewalled her oversight of where tax dollars are going and why.
As Senate DOGE Caucus chair and founder, Senator Ernst will continue to work with President Trump’s Department of Government Efficiency (DOGE) to examine how taxpayers’ money is spent and put an end to any waste, fraud, and abuse.
WSJ: Sen. Joni Ernst: USAID Is a Rogue Agency
It dodges congressional questions about money that went to sex traffickers and the Wuhan virus lab.
By: Senator Joni Ernst
In moments of crisis, America can be counted on for leadership. Our nation’s compassionate giving has saved millions of lives around the world that were at risk from starvation or disease. All Americans should be able to take great pride in our generosity. And the government agencies coordinating aid efforts should be eager to share details about how they’re using taxpayers’ money to make the world a better place.
Yet the U.S. Agency for International Development, entrusted with disbursing tens of billions of aid dollars to other nations annually, is a rogue bureaucracy. I’ve uncovered that the agency often acts at odds with our nation’s best interests and uses intimidation and shell games to hide where money is going, how it’s being spent and why.
USAID repeatedly rebuffed my requests for a list of recipients of U.S. tax dollars sent to Ukraine, claiming that the information was classified. Despite the pushback, I persisted. Eventually, USAID permitted my staff to review documents under surveillance in a highly secure room at USAID headquarters, with note-taking prohibited.
What warranted such secrecy? We learned that the aid that was supposed to alleviate economic distress in the war-torn nation was spent on such frivolous activities as sending Ukrainian models and designers on junkets to New York City, London Fashion Week, Paris Fashion Week and South by Southwest in Austin, Texas.
I faced the same stonewalling from USAID when I asked about tax dollars being diverted from project missions for largely unrelated costs, known as the negotiated indirect cost rate. The agency claimed that it wasn’t possible to track. My team debunked that by providing USAID staff with a link to a public database. The agency fired back, warning that divulging this information would violate federal laws, including the Economic Espionage Act.
When I launched a formal investigation in cooperation with the House Foreign Affairs Committee, USAID relented. Turns out, the agency is allowing grantees to skim significant amounts of money, up to and even beyond half of the total, for themselves.
We need guarantees that U.S. assistance is helping people in need, but a recent review by the agency’s own inspector general found USAID still “does not have proper documentation to support indirect costs charged” by grant recipients.
I shouldn’t have to ask these questions. All federal spending is required to be publicly available on the website USAspending.gov, a searchable database created nearly two decades ago by a bipartisan law.
USAID’s sketchy spending schemes were the impetus for this law aimed at making federal funding more transparent. Congressional investigators in 2005 caught the agency supporting an organization involved with the trafficking of teenage girls in Asia. USAID staff called the claims “destructive” and vehemently denied them. The evidence proved otherwise. A pass-through group, set up with the help of former agency employees, was found funneling U.S. tax dollars into abetting the sex trade operation.
The agency has learned to exploit loopholes in the law, as my investigation into the origins of the pandemic exposed. The watchdog organization White Coat Waste Project was the first to release evidence that both USAID and Anthony Fauci’s National Institute of Allergy and Infectious Diseases were financing bat studies involving coronaviruses at the Wuhan Institute of Virology. Yet no grants to the Chinese lab appeared in USAspending.gov. Audits later uncovered that more than a million dollars from the U.S. government were paying for the dangerous research. The bulk of the money was provided by USAID, not Dr. Fauci.
USAID evaded the obligation to report this transaction to USAspending.gov by using multiple pass-through organizations, including the nefarious EcoHealth Alliance, which is now barred from receiving U.S. government grants.
What was our international development agency developing at China’s Wuhan Institute of Virology? If the Central Intelligence Agency and Federal Bureau of Investigation are correct that the Covid virus likely originated from a lab leak, USAID may have had a hand in a once-in-a-century pandemic that claimed the lives of millions.
There’s no shortage of other questionable USAID projects. More than $9 million intended for civilian food and medical supplies in Syria ended up in the hands of violent terrorists. Another $2 million was spent promoting tourism to Lebanon, a nation the State Department warns against traveling to due to the risks of terrorism, kidnapping and unexploded land mines.
USAID spent millions of dollars paying people to dig irrigation ditches in Afghanistan and encouraging farmers to grow food crops instead of poppies for opium. The result: Poppy cultivation nearly doubled.
Many other groups supported by USAID are doing great work, such as caring for orphans and people living with HIV. Imagine how much more good work could be supported with the dollars that instead ended up enriching terrorists, sex traffickers, mad scientists and drug cartels.
After keeping its spending records hidden from Congress and taxpayers, USAID employees are now protesting the review of the agency’s records by President Trump’s Department of Government Efficiency. It’s no surprise that Washington insiders are more upset at DOGE for trying to stop wasteful spending than at USAID for misusing tax dollars.
The question we should be asking isn’t why USAID’s grants are being scrutinized, but why it took so long.
Ms. Ernst, an Iowa Republican, is founder and chairwoman of the Senate DOGE Caucus.

MIL OSI USA News –

February 11, 2025

MIL-OSI: Astera Labs Announces Financial Results for the Fourth Quarter of Fiscal Year 2024

Source: GlobeNewswire (MIL-OSI)

Record quarterly revenue of $141.1 million, up 25% QoQ and up 179% YoY
Fiscal 2024 record revenue of $396.3 million, up 242% versus the prior year
Ramping across diverse set of customers and platforms with four product families in fiscal 2025

SANTA CLARA, Calif., Feb. 10, 2025 (GLOBE NEWSWIRE) — Astera Labs, Inc. (Nasdaq: ALAB), a global leader in semiconductor-based connectivity solutions for cloud and AI infrastructure, today announced preliminary financial results for the fourth quarter and full fiscal year 2024, ended December 31, 2024.

“Astera Labs delivered strong Q4 results, with revenue growing 25% versus the previous quarter, and capped off a stellar 2024 with 242% revenue growth year-over-year,” said Jitendra Mohan, Astera Labs’ Chief Executive Officer. “The revenue growth in 2024 was largely driven by Aries PCIe Retimer products, with Taurus Smart Cable Modules for Ethernet coming in strongly in Q4. We expect 2025 to be a breakout year as we enter a new phase of growth driven by revenue from all four of our product families to support a diverse set of customers and platforms. This includes our flagship Scorpio Fabric products for head-node PCIe connectivity and backend AI accelerator scale-up clustering.”

Fourth Quarter of Fiscal 2024 Financial Highlights

GAAP Financial Results:

Revenue of $141.1 million, up 25% sequentially and up 179% year-over-year
GAAP gross margin of 74.0%
GAAP operating income of $0.1 million
GAAP operating margin of 0.1%
GAAP net income of $24.7 million
GAAP diluted net earnings per share of $0.14

Non-GAAP Financial Results (excluding the impact of stock-based compensation expense and the income tax effects of non-GAAP adjustments):

Non-GAAP gross margin of 74.1%
Non-GAAP operating income of $48.4 million
Non-GAAP operating margin of 34.3%
Non-GAAP net income of $66.5 million
Non-GAAP diluted earnings per share of $0.37

Full Year Fiscal 2024 Financial Highlights

GAAP Financial Results:

Revenue of $396.3 million, up 242% year-over-year
GAAP gross margin of 76.4%
GAAP operating loss of $116.1 million
GAAP operating margin of (29.3%)
GAAP net loss of $83.4 million
GAAP diluted net loss per share of $0.64

Non-GAAP and Non-GAAP Financial Results (excluding the impact of stock-based compensation expense and the income tax effects of non-GAAP adjustments):

Non-GAAP gross margin of 76.6%
Non-GAAP operating income of $119.6 million
Non-GAAP operating margin of 30.2%
Non-GAAP net income of $143.3 million
Pro forma non-GAAP diluted earnings per share of $0.84

Full Year Fiscal 2024 Business Highlights

Introduced new portfolio of Scorpio Smart Fabric Switches purpose-built for AI infrastructure at cloud-scale. The Scorpio Smart Fabric Switch family features two application-specific product lines with a multi-generational roadmap, including the P-Series for GPU-to-CPU/NIC/SSD PCIe Gen 6 connectivity and the X-Series for platform-specific, back-end AI accelerator clustering. Scorpio is currently shipping in pre-production quantities.
Joined the Ultra Accelerator Link Consortium as a promoting member on the Board of Directors. UALink technology will be used to enable efficient high-speed scale-up connectivity between AI accelerators within large and growing cluster sizes for AI workloads. Astera Labs is well positioned to quickly contribute to this new and compelling industry initiative to develop and advance UALink technology.
Demonstrated the industry’s first end-to-end PCIe optical connectivity link to provide extended reach for larger, disaggregated GPU clusters. PCIe over optics expands Astera Labs’ widely deployed and field-tested Aries family of Smart DSP retimers and Smart Cable Modules (SCMs) to deliver robust PCIe and CXL connectivity in chip-to-chip, box-to-box, and rack-to-rack topologies throughout the data center.
Expanded the widely deployed and field-tested Aries PCIe/CXL Smart DSP Retimer portfolio with the introduction and initial shipment of Aries 6 Retimers, the industry’s lowest power PCIe 6.x/CXL 3.x Retimer solution, to achieve higher bandwidth and extended reach across complex AI and compute topologies.
Shipped Aries PCIe/CXL Smart Cable Modules for Active Electrical Cable applications to enable multi-rack GPU clustering and low-latency memory fabric connectivity within AI infrastructure. The solution drives seven meters of reach over flexible copper cables to seamlessly and affordably interconnect clusters of GPUs across rack enclosures.
Showcased the first public demonstration of end-to-end interoperability between a PCIe 6.x Switch and a PCIe 6.x SSD at DesignCon 2025. The PCIe 6.x link-up was between an Astera Labs Scorpio P-Series Fabric Switch and Micron’s PCIe 6.x SSDs and showcased remarkable sequential read speeds exceeding 26GB/s.

First Quarter of Fiscal 2025 Financial Outlook

Based on current business trends and conditions, Astera Labs estimates the following:

GAAP Financial Outlook:

Revenue within a range of $151 million to $155 million
GAAP gross margin of approximately 74%
GAAP operating expenses within a range of approximately $113 million to $114 million
GAAP tax expense of approximately $3 million
GAAP diluted earnings per share within a range of approximately $0.03 to $0.04 on weighted-average diluted shares outstanding of approximately 180 million

Non-GAAP Financial Outlook (excluding the impact of approximately $47 million of stock-based compensation and including approximately $3 million of additional income taxes):

Non-GAAP gross margin of approximately 74%
Non-GAAP operating expenses within a range of approximately $66 million to $67 million
Non-GAAP tax rate of approximately 10%
Non-GAAP diluted earnings per share within a range of approximately $0.28 to $0.29 on non-GAAP weighted-average diluted shares outstanding of approximately 180 million

Earnings Webcast and Conference Call
Astera Labs will host a conference call to review its financial results for the fourth quarter and full year of fiscal 2024 and to discuss our financial outlook today at 1:30 p.m. Pacific Time. Interested parties may join the conference call by dialing 1-800-715-9871 and using conference ID 5908687. The call will also be webcast and can be accessed at the Astera Labs website at https://ir.asteralabs.com/. The webcast will be recorded and available for replay on the company’s website for the next six months.

Discussion of Non-GAAP Financial Measures
We use certain non-GAAP financial measures to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. A reconciliation of these non-GAAP measures to the closest GAAP measure can be found later in this release. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP tax rate, non-GAAP net income (loss), non-GAAP diluted earnings (loss) per share, and non-GAAP weighted-average share count. We use these non-GAAP financial measures for financial and operational decision-making and as a means to assist us in evaluating period-to-period comparisons. By excluding certain items that may not be indicative of our recurring core operating results, we believe that, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP tax rate, non-GAAP net income (loss), non-GAAP pro forma diluted earnings (loss) per share, and non-GAAP pro forma weighted-average share count provide meaningful supplemental information regarding our performance. Accordingly, we believe these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by our institutional investors and the analyst community to help them analyze the health of our business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

No reconciliation is provided with respect to the forward-looking non-GAAP financial measures included in our non-GAAP financial outlook, as the GAAP measures are not accessible on a forward-looking basis. As a result, we cannot reliably predict all necessary components or their impact to reconcile such financial measures without unreasonable effort. The events necessitating a non-GAAP adjustment are inherently unpredictable and may have a significant impact on our future GAAP financial results.

We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation expense
We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate non-cash stock-based compensation expense using a variety of valuation methodologies and subjective assumptions. Moreover, stock-based compensation expense is a non-cash charge that can vary significantly from period to period for reasons that are unrelated to our core operating performance, and therefore excluding this item provides investors and other users of our financial information with information that allows meaningful comparisons of our business performance across periods.

Employer payroll taxes related to stock-based compensation resulting from our IPO
We exclude employer payroll taxes related to the time-based vesting and net settlement of restricted stock units in connection with our initial public offering (the “IPO”), because this does not correlate to the operation of our business. We believe that excluding this item provides meaningful supplemental information regarding operational performance given the amount of employer payroll tax-related items on employee stock transactions was immaterial prior to our IPO.

Income tax effect
This represents the impact of the non-GAAP adjustments on an after-tax basis and one-off discrete tax adjustments that are unrelated to our core operating performance in connection with the presentation of non-GAAP net income (loss) and non-GAAP net income (loss) per diluted share. This approach is designed to enhance investors’ ability to understand the impact of our non-GAAP tax expense on our current operations, provide improved modeling accuracy, and substantially reduce fluctuations caused by GAAP to non-GAAP adjustments.

Non-GAAP pro forma weighted-average shares to compute non-GAAP pro forma net income (loss) per share
We present non-GAAP pro forma weighted-average shares, assuming our redeemable convertible preferred stock is converted from the beginning of each respective periods presented, to provide meaningful supplemental information regarding EPS trend on a consistent basis. All of our outstanding redeemable preferred stock converted into the equivalent number of shares of common stock in connection with our IPO.

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements based on Astera Labs’ current expectations. The words “believe”, “estimate”, “expect”, “intend”, “may”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Astera Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Astera Labs and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These forward-looking statements include but are not limited to, statements regarding our future operating results, financial position and guidance, including for the first quarter of fiscal 2025, our business strategy and plans, our objectives for future operations, our development or delivery of new or enhanced products and anticipated results of those products for our customers, our competitive positioning, including to meet the connectivity market opportunity in the future and initiative to advance UALink technology, technological capabilities and plans, our plans to add R&D talent and strategic IP blocks, and macroeconomic trends in cloud and AI infrastructure. A variety of risks and factors that are beyond our control could cause actual results to differ materially from those in the forward-looking statements including, without limitation: the competitive and cyclical nature of the semiconductor industry; the concentration of our customer base; the changes in demand for AI; the macroeconomic environment; risks that demand and the supply chain may be adversely affected, including by the imposition of tariffs by the United States and any corresponding retaliatory tariffs, changes in political policies, military conflict (such as between Russia/Ukraine and Israel/Hamas), terrorism, sanctions or other geopolitical events globally (including conflict between Taiwan and China); quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with managing international activities (including trade barriers, particularly with respect to China); absence of long-term commitments from customers; risks that Astera Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; stock price volatility; information technology risks, including cyber-attacks against Astera Labs’ products and its networks; and other risks and uncertainties that are detailed under the caption “Risk Factors” and elsewhere in our Annual Report on 10-K that will be filed with the Securities and Exchange Commission (the “SEC”) and in Quarterly Reports on Form 10-Q filed with the SEC and the other SEC filings and reports Astera Labs may make from time to time. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not rely on any of the forward-looking statements. Astera Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

About Astera Labs
Our PCIe, CXL and Ethernet semiconductor-based connectivity solutions are purpose-built to unleash the full potential of accelerated computing at cloud-scale. Inspired by trusted partnerships with hyperscalers and the data center ecosystem, we are an innovation leader of products that are customizable, interoperable, and reliable. Discover how we are transforming AI and modern data-driven applications at www.asteralabs.com.


ASTERA LABS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands)

	December 31, 2024			December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	79,551		$	45,098
Marketable securities		834,750			104,215
Accounts receivable, net		38,811			8,335
Inventory		43,215			24,095
Prepaid expenses and other current assets		16,652			4,064
Total current assets		1,012,979			185,807
Property and equipment, net		35,651			4,712
Other assets		5,878			5,773
Total assets	$	1,054,508		$	196,292

Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities
Accounts payable	$	26,918		$	6,337
Accrued expenses and other current liabilities		59,624			28,742
Total current liabilities		86,542			35,079
Other liabilities		3,167			3,787
Total liabilities		89,709			38,866
Commitments and contingencies
Redeemable convertible preferred stock		–			255,127
Stockholders’ equity (deficit)
Common stock		16			4
Additional paid-in capital		1,173,153			27,411
Accumulated other comprehensive income		426			259
Accumulated deficit		(208,796	)		(125,375	)
Total stockholders’ equity (deficit)		964,799			(97,701	)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)	$	1,054,508		$	196,292


ASTERA LABS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts)

	Three Months Ended									Years Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Revenue	$	141,096		$	113,086		$	50,514		$	396,290		$	115,794
Cost of revenue		36,648			25,209			11,489			93,591			35,967
Gross profit		104,448			87,877			39,025			302,699			79,827

Operating expenses
Research and development		56,524			50,659			19,654			200,830			73,407
Sales and marketing		22,818			23,248			4,995			123,652			19,992
General and administrative		24,962			22,866			5,356			94,283			15,925
Total operating expenses		104,304			96,773			30,005			418,765			109,324
Operating income (loss)		144			(8,896	)		9,020			(116,066	)		(29,497	)
Interest income		10,558			10,912			1,674			34,288			6,549
Income (loss) before income taxes		10,702			2,016			10,694			(81,778	)		(22,948	)
Income tax (benefit) provision		(14,011	)		9,609			(3,631	)		1,643			3,309
Net income (loss)	$	24,713		$	(7,593	)	$	14,325		$	(83,421	)	$	(26,257	)

Net income (loss) per share attributable to common stockholders:
Basic	$	0.15		$	(0.05	)	$	—		$	(0.64	)	$	(0.71	)
Diluted	$	0.14		$	(0.05	)	$	—		$	(0.64	)	$	(0.71	)
Weighted-average shares used in calculating net income (loss) per share attributable to common stockholders:
Basic		159,895			156,831			38,627			131,262			37,131
Diluted		177,559			156,831			47,636			131,262			37,131


ASTERA LABS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)

	Years Ended December 31,
		2024			2023
Cash flows from operating activities
Net loss	$	(83,421	)	$	(26,257	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Stock-based compensation		234,588			10,679
Depreciation		3,154			1,781
Non-cash operating lease expense		2,428			1,232
Warrants contra revenue		1,395			805
Inventory write-downs		168			10,343
Accretion of discounts on marketable securities		(8,341	)		(1,624	)
Changes in operating assets and liabilities:
Accounts receivable, net		(30,480	)		2,386
Inventory		(19,287	)		(5,564	)
Prepaid expenses and other assets		(13,031	)		(720	)
Accounts payable		20,887			(4,264	)
Accrued expenses and other liabilities		31,018			(167	)
Operating lease liability		(2,402	)		(1,346	)
Net cash provided by (used in) operating activities		136,676			(12,716	)

Cash flows from investing activities
Purchases of property and equipment		(34,245	)		(2,761	)
Purchases of marketable securities		(930,575	)		(126,225	)
Sales and maturities of marketable securities		208,665			111,214
Other investing activities		(1,413	)		—
Net cash used in investing activities		(757,568	)		(17,772	)

Cash flows from financing activities
Proceeds from issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions		672,198			—
Payment of deferred offering costs		(4,801	)		(1,407	)
Proceeds from exercises of stock options		5,458			1,115
Proceeds from employee stock purchase plan		4,160			—
Tax withholding related to net share settlements of restricted stock units		(20,111	)		—
Repurchase of common stock upon termination		(1,066	)		(210	)
Net cash provided by (used in) financing activities		655,838			(502	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		34,946			(30,990	)
Cash, cash equivalents, and restricted cash
Beginning of the period		45,098			76,088
End of the period	$	80,044		$	45,098


ASTERA LABS, INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (In thousands, except percentages and per share amounts)

	Three Months Ended									Years Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
GAAP gross profit	$	104,448		$	87,877		$	39,025		$	302,699		$	79,827
Stock-based compensation expense upon IPO ⁽¹⁾		—			—			—			516			—
Stock-based compensation expense		131			102			8			329			24
Non-GAAP gross profit	$	104,579		$	87,979		$	39,033		$	303,544		$	79,851

GAAP gross margin		74.0	%		77.7	%		77.3	%		76.4	%		68.9	%
Stock-based compensation expense upon IPO ⁽¹⁾		—			—			—			0.1			—
Stock-based compensation expense		0.1			0.1			—			0.1			0.1
Non-GAAP gross margin		74.1	%		77.8	%		77.3	%		76.6	%		69.0	%

GAAP operating income (loss)	$	144		$	(8,896	)	$	9,020		$	(116,066	)	$	(29,497	)
Stock-based compensation expense upon IPO ⁽¹⁾		—			—			—			88,873			—
Stock-based compensation expense		48,218			45,535			3,299			145,715			10,679
Employer payroll tax related to stock-based compensation from IPO ⁽²⁾		—			—			—			1,072			—
Non-GAAP operating income (loss)	$	48,362		$	36,639		$	12,319		$	119,594		$	(18,818	)

GAAP operating margin		0.1	%	(7.9)%				17.9	%	(29.3)%			(25.5)%
Stock-based compensation expense upon IPO ⁽¹⁾		—			—			—			22.4			—
Stock-based compensation expense		34.2			40.3			6.5			36.8			9.2
Employer payroll tax related to stock-based compensation from IPO ⁽²⁾		—			—			—			0.3			—
Non-GAAP operating margin		34.3	%		32.4	%		24.4	%		30.2	%	(16.3)%

GAAP net income (loss)	$	24,713		$	(7,593	)	$	14,325		$	(83,421	)	$	(26,257	)
Stock-based compensation expense upon IPO ⁽¹⁾		—			—			—			88,873			—
Stock-based compensation expense		48,218			45,535			3,299			145,715			10,679
Employer payroll tax related to stock-based compensation from IPO ⁽²⁾		—			—			—			1,072			—
Income tax effect ⁽³⁾		(6,439	)		2,340			—			(8,910	)		—
Non-GAAP net income (loss)	$	66,492		$	40,282		$	17,624		$	143,329		$	(15,578	)

Net income (loss) per share attributable to common stockholders:
GAAP – basic	$	0.15		$	(0.05	)	$	—		$	(0.64	)	$	(0.71	)
GAAP – diluted	$	0.14		$	(0.05	)	$	—		$	(0.64	)	$	(0.71	)
Non-GAAP pro forma – diluted	$	0.37		$	0.23		$	0.12		$	0.84		$	(0.12	)

Weighted average shares used to compute net income (loss) per share attributable to common stockholders:
GAAP – basic		159,895			156,831			38,627			131,262			37,131
GAAP – diluted		177,559			156,831			47,636			131,262			37,131
Non-GAAP pro forma – diluted ⁽⁴⁾		177,559			173,832			138,527			168,913			128,022

____________________

(1) Stock-based compensation expense recognized in connection with the time-based vesting and settlement of RSUs that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.

(2) Employer payroll taxes related to the time-based vesting and settlement of RSUs, that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.

(3) Income tax effect is calculated based on the tax laws in the jurisdictions in which we operate and is calculated to exclude the impact of stock-based compensation expense and one-off discrete tax adjustments that are unrelated to our core operating performance. For the three months ended December 31, 2024 and September 30, 2024, the non-GAAP tax benefit rate was 13% and tax expense rate of 15%, respectively. The adjustments for the three months ended December 31, 2023 were not material. For the years ended December 31, 2024, the non-GAAP tax expense rate was 7% compared to a tax benefit rate of 27% for the year ended December 31, 2023.

(4) We present the non-GAAP pro forma weighted average shares to provide meaningful supplemental information of comparable shares for each periods presented. The non-GAAP pro forma weighted average shares is calculated as follows:

	Three Months Ended			Years Ended
	December 31, 2024	September 30, 2024	December 31, 2023	December 31, 2024	December 31, 2023
Shares used to compute GAAP net income (loss) per share attributable to common stockholders – diluted	177,559	156,831	47,636	131,262	37,131
Weighted average effect of the assumed conversion of redeemable convertible preferred stock from the beginning of the periods	—	—	90,891	19,165	90,891
Effect of dilutive equivalent shares	—	17,001	—	18,486	—
Shares used to compute non-GAAP pro forma net income (loss) per share- diluted	177,559	173,832	138,527	168,913	128,022


ASTERA LABS, INC.SUPPLEMENTAL FINANCIAL INFORMATIONSTOCK-BASED COMPENSATION EXPENSE (Unaudited) (In thousands)

	Three Months Ended						Years Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Cost of revenue	$	131	$	102	$	8	$	845	$	24
Research and development		18,808		14,641		2,303		76,427		7,360
Sales and marketing		14,671		16,200		681		95,887		2,067
General and administrative		14,608		14,592		307		61,429		1,228
Total stock-based compensation expense ⁽¹⁾	$	48,218	$	45,535	$	3,299	$	234,588	$	10,679

____________________

(1) Stock-based compensation expense recognized during the year ended December 31, 2024 included $88.9 million of cumulative stock-based compensation expense related to the time-based vesting and settlement of RSUs that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.

IR CONTACT: Leslie Green
leslie.green@asteralabs.com

The MIL Network –

February 11, 2025

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