Business
Telegram Founder Pavel Durov’s Various Citizenships Add To The Mystery Of His Detention
DUBAI, UAE —For more than a decade, the founder and CEO of messaging software Telegram has acquired many citizenships, adding to the mystery surrounding his arrest in France.
These passports protected Pavel Durov after he founded and controlled Telegram as a self-proclaimed free-speech absolutist. Some have used the app to plan protests in hostile regimes such as Iran and his own Russia. However, Western officials claim Telegram supported drug traffickers, money launderers, militant groups, and child pornographers.
“To be truly free, you must be willing to risk everything for freedom,” Durov once said on Instagram, sandwiched between photos of himself shirtless with Dubai’s skyscrapers or Saudi Arabia’s Mada’in Saleh ruins in the background.
That danger appears to have caught up with him, despite passports from Russia, France, the United Arab Emirates, and Saint Kitts & Nevis, as well as Forbes’ assessment of his wealth at $15.5 billion.
Telegram Founder Pavel Durov’s Various Citizenships Add To The Mystery Of His Detention
Durov was released from French jail on Wednesday after being arrested Saturday at Paris-Le Bourget Airport. Allegations include the use of his platform for child sexual abuse material, drug trafficking, fraud, and aiding and abetting organized criminal activities, as well as Telegram’s refusal to give information or records to investigators when legally needed. He is scheduled to appear in court later Wednesday.
Durov, 39, appears to have begun seeking additional citizenships over a decade ago. According to him, the reason was a battle over control of VKontakte, or “In Contact,” often known as VK, a social networking website that at the time outperformed Facebook in Russia.
Russian security services blocked pages associated with a Ukrainian protest movement that helped depose the country’s Kremlin-friendly president, Viktor Yanukovych. Durov released what seemed to be paperwork from the Federal Security Service, or FSB, requesting personal information about protest organizations.
Durov left VK permanently after resigning on April Fools Day, first in jest. He secured a resident visa for Dubai, the UAE’s business powerhouse. He also acquired a Saint Kitts and Nevis passport after purportedly providing $250,000 to the Caribbean’s sugar economy.
Saint Kitts and Nevis remains attractive as a tax haven for the wealthy and people with passports that require lengthy visas to go to other nations.
Durov stated in a VK post 2017 that he got a Saint Kitts and Nevis passport in the spring of 2013 and described it as “a convenient thing, as it allows to travel to the EU and Britain without visas.”
He said that he had never been to the Caribbean island nation and had no intentions of going there and that “one can get the passport without leaving Europe.”
By 2017, Durov lived full-time in Dubai, with his Telegram office based in Dubai Media City.
“I love it here,” he told Bloomberg back then. “It’s developing so fast, like a start-up.” The news organization estimated his wealth at the time to be $300 million and 2,000 bitcoins, a cryptocurrency whose value has since skyrocketed.
During this time, the United Arab Emirates gave Durov citizenship, a rare occurrence in a country where 90% of the population is foreign and has no road to citizenship.
The UAE has not explained why it granted Durov citizenship, but on Tuesday, its state-run WAM news agency publicly acknowledged his status and asked France to provide him “with all the necessary consular services in an urgent matter.” Under Emirati legislation, investors, doctors, professionals, and intellectuals can be granted citizenship if approved by one of the country’s seven rulers, a crown prince, or the federal government of his homeland.
Durov was spotted in a meeting with Dubai’s crown prince, Sheikh Hamdan bin Mohammed Al Maktoum, in 2021. A WAM article at the time claimed Telegram as “globally headquartered in Dubai” and worth more than $20 billion.
The UAE, particularly Dubai, has sought to attract internet and e-commerce companies for years. Durov also served on an advisory council for its ruler, Sheikh Mohammed bin Rashid Al Maktoum. Mubadala, Abu Dhabi’s sovereign wealth fund, invested $75 million in Telegram that same year, as did another Abu Dhabi enterprise.
His French citizenship still needs to be clarified.
Durov became a French citizen in 2021, and his name was published in the naturalization section of France’s Official Gazette on August 25 of that same year. According to a government order, he will formally change the transliteration of his name in French to Paul du Rove in May 2022.
Because of French privacy laws, the details of Durov’s French naturalization procedure, a lengthy and cumbersome bureaucratic nightmare for most, are kept from public view.
Durov did not appear to match the conventional conditions of lawfully living in the nation for two to five years or having French family members, but he may have qualified for a rare citizenship route reserved for “merited foreigners.” According to the French government, this applies to French-speaking foreigners who “contribute through their merited action to the global influence of France and the prosperity of its international economic relations.”
According to an official acquainted with the conversation, Durov and French President Emmanuel Macron met in 2018 and discussed the development of their activities in France, similar to the discussions the French president holds with global corporate leaders regularly.
Telegram Founder Pavel Durov’s Various Citizenships Add To The Mystery Of His Detention
The official stated that Durov later requested French citizenship through a request to the French Foreign Ministry rather than directly from Macron.
The individual spoke anonymously because they were not authorized to publicly discuss private presidential conversations.
France and the UAE have a tight military cooperation, with French forces maintaining a naval facility in Abu Dhabi and Emirati forces employing Leclerc tanks and Rafale fighter jets. Macron is also said to be close to Emirati leader Sheikh Mohammed bin Zayed Al Nahyan, the ruler of Abu Dhabi. The arrest generated a falsified video online late Tuesday, purportedly attributed to the Al Jazeera satellite news network, claiming that an arms deal between the countries was under threat.
However, as is typical of Durov, things remain unclear. He had occasionally prevented interviewers from photographing his offices and other surroundings, thereby managing his public image.
SOURCE | AP
Business
EV Battery Maker Northvolt to Cut Jobs, Delays Factory in Canada
EV Battery maker Northvolt has announced there would be a revised timeline for plant in Canada but did not provide further details. Potential revisions to these projects would be confirmed in the fall.
Northvolt will cut a large number of jobs and sell or seek partners for its energy storage and materials businesses as Europe’s leading battery hope aims to survive by refocusing on its struggling first giga-factory in northern Sweden.
The Swedish manufacturer, which has raised the most capital at US$15 billion of any other unlisted European start-up, has been significantly delayed by issues at its facility located just below the Arctic Circle. Additionally, European carmakers have slowed their plans to transition to electric vehicles.
Northvolt announced on Monday that it would cease production of cathode active materials, sell one site, and instead source materials from Chinese or Korean companies. Additionally, the company will pursue a buyer or partner for its energy storage business, which is located in Gdańsk, Poland.
The group, which is supported by Volkswagen AG, Goldman Sachs, BMW, Siemens, and BlackRock, has been experiencing a cash flow deficit. It has announced that its cost-cutting strategy will “regrettably” involve “some difficult decisions on the size of our workforce,” which is currently at 7,000 employees.
In addition, executives have stated that the construction of three additional gigafactories, which are to be constructed in Sweden, Germany, and Canada in a joint venture with Volvo Cars, will be postponed. However, they have also stated that they will provide additional information regarding the number of employment cuts at a later date.
In late 2021, Northvolt was the first European company to produce a EV battery cell for EVs from a domestic giga-factory. However, the company has encountered difficulty in increasing production rates since then. Its giga-factory in Skellefteå has an annual capacity of 16 gigawatt hours; however, it is currently producing less than 1GWh.
BMW recently terminated a US$2 billion contract with Northvolt and instead awarded it to Samsung SDI of Korea, citing supply constraints. The slow adoption of electric vehicles has resulted in the postponement of the construction of battery facilities in Europe by Korean and Chinese organisations.
Northvolt has also encountered financial difficulties vital for the expansion of production so consequently, the company has been compelled to reduce investments and expenditures.
Northvolt, which initiated its strategic review in July, intends to concentrate on cell manufacturing in Skellefteå, which has prompted concerns regarding the future of its recycling and materials operations.
It is also deliberating on how to proceed with the significant advancement in EV battery technology for energy storage that it announced with sodium-ion batteries. These batteries do not require lithium, cobalt, or nickel, which are materials that companies have been eager to acquire.
Executives stated that Northvolt could continue to advance the sodium-ion technology in collaboration with other manufacturers, despite its pursuit of purchasers or partners for its energy storage business.
Northvolt declared this year that it would establish an electric vehicle battery plant in the Quebec province of Canada for C$7 billion, or $5.17 billion. The EV Battery Manufacturer stated that the federal and provincial governments of Canada would each provide $1 billion towards the first phase of construction.
Northvolt has received investments of approximately US $1.1 billion from Canadian pension funds, including Investment Management Corporation of Ontario (IMCO), BlackRock, and Canada Pension Plan Investment Board (CPP Investments) and CDPQ.
Prime Minister Justin Trudeau of Canada has established EV manufacturing as a cornerstone of his industrial policy, providing production credits and other forms of assistance to 13 battery businesses and automakers valued at C$56 billion ($41.34 billion).
Nevertheless, a slowdown in the demand for electric vehicles has forced a number of industry players to postpone or cancel investments reaching C$46 billion ($33.96 billion).
billion).
Nevertheless, the development of EV demand has slowed, resulting in the cancellation or postponement of investments totalling C$46 billion ($33.96 billion) by numerous industry companies.
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Business
Dunkin Donuts Boycotted After They Dump Influencer Steven Crowder
A boycott against Dunkin Donuts has begun to spread online after one influencer accused the national coffee giant of refusing to engage with him because of his right-wing ties.
The boycott began after Dunkin Donuts CEO of Rumble Chris Pavlovski tweeted that the firm intended to split ways with Steven Crowder, a conservative talk show presenter, and move away from ‘right wing culture’. Rumble is a video-sharing platform with a more conservative demographic.
The claimed emails received by Pavolvski in his tweet include messages from Dunkin Donuts , Inspire Brands, and Diageo North America expressing their opposition to appearing on the site because it is “too polarising from a brand sustainability standpoint.”
In the same tweet, Pavolvski said, “No, we do not discriminate. “All cultures are welcome on Rumble.”
Dunkin Donuts has not responded on any of its social media channels.
Many Rumble supporters stated that they are prepared to boycott the coffee chain due to their apparent refusal to appear on the platform.
Last Wednesday, a Twitter user with over two million followers shared a graphic showing #boycottDunkin trending at number two on X, formerly Twitter. The post received 11,000 retweets and 41,000 likes.
Many of the answers to Pavlovski’s initial post endorsed the concept of a boycott of Dunkin Donuts .
At least on social media, the boycott is no longer a top trend. As of Monday afternoon, #boycottDunkin is no longer trending on X, and it is not one of the Top 100 trends on TikTok.
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Business
Internet Archive Loses Major Copyright Case Court Rejects Their Arguments
The Internet Archive has lost a critical legal battle, potentially affecting the future of internet history. Today, the US Court of Appeals for the Second Circuit decided against the long-running digital archive, affirming a previous decision in Hachette v. Internet Archive, which determined that one of the Internet Archive’s book digitization initiatives infringed copyright law.
Notably, the appeals court’s ruling rejects the Internet Archive’s argument that its lending practices were shielded by the fair use doctrine, which permits for copyright infringement in certain circumstances, calling it “unpersuasive.”
In March 2020, the Internet Archive, a San Francisco-based nonprofit, launched the National Emergency Library, or NEL. The epidemic had forced library closures that prevented students, scholars, and readers from accessing millions of books, and the Internet Archive has stated that it was answering to calls from common people and other librarians to assist individuals at home in obtaining the books they required.
The NEL was an extension of the Open Library, an ongoing digital lending experiment in which the Internet Archive scans physical copies of library books and allows individuals to borrow digital versions as if they were conventional reading material rather than e-books. The Open Library lent the books to one person at a time—but the NEL eliminated this ratio requirement, allowing a large number of people to borrow each scanned book at once.
Shortly after its inception, the NEL faced criticism, with some authors claiming that it amounted to piracy. In response, after two months, the Internet Archive abandoned its emergency strategy and imposed lending caps. But the harm had been done. Major publishing giants, including Hachette, HarperCollins, Penguin Random House, and Wiley, filed the complaint in June 2020.
In March 2023, the district court found in favour of the publishers. Judge John G. Koeltl determined that the Internet Archive had created “derivative works,” claiming that its copying and lending had “nothing transformative” to offer. Following the initial verdict in Hachette v. Internet Archive, the parties reached an agreement, the specifics of which have not been released; however, the archive has filed an appeal.
According to James Grimmelmann, a professor of digital and internet law at Cornell University, the ruling is “not terribly surprising” in light of recent court interpretations of fair use.
Internet Archive won the appeal
The Internet Archive won the appeal, but only narrowly. Although the Second Circuit upheld the district court’s first decision, it underlined that it did not regard the Internet Archive as a commercial business, emphasising that it was clearly a charitable organisation. Grimmelmann believes this is the appropriate decision: “I’m glad to see that the Second Circuit fixed that mistake.” (He joined an amicus brief in the appeal, saying that classifying the use as commercial was incorrect.)
“Today’s appellate decision upholds the rights of authors and publishers to license and be compensated for their books and other creative works, and reminds us in no uncertain terms that infringement is both costly and antithetical to the public interest,” Association of American Publishers president and CEO Maria A. Pallante said in a statement.
“If there was any doubt, the Court makes clear that under fair use jurisprudence there is nothing transformative about converting entire works into new formats without permission or appropriating the value of derivative works that are a key part of the author’s copyright bundle.”
In a statement, Internet Archive director of library services Chris Freeland expressed dismay with “today’s opinion about the Internet Archive’s digital lending of books that are electronically available elsewhere.” We are reviewing the court’s decision and will continue to defend libraries’ right to own, lend, and preserve books.
Dave Hansen, executive director of the Author’s Alliance, a nonprofit organisation that frequently advocates for increased digital access to books, also spoke out against the verdict. “The authors are researchers. “Authors read,” he says. “IA’s digital library assists authors in creating new works and encourages their desire to have their works read. This verdict may boost the bottom lines of the largest publishers and most well-known authors, but it will harm more people than it will help.
Difficult period for copyright law
The Internet Archive’s legal problems are not ended. In 2023, a collection of music labels, including Universal Music collection and Sony, sued the archive for copyright infringement on a music digitization project. That case is still working its way through the courts. The damages might total up to $400 million, posing an existential danger to the nonprofit.
The new ruling comes at a particularly difficult period for copyright law. There have been scores of copyright infringement cases filed against large AI businesses that provide generative AI tools in the last two years, and many of the defendants contend that the fair use doctrine protects their use of copyrighted data in AI training. Any big lawsuit in which judges reject fair use grounds is widely monitored.
It also comes at a time when the Internet Archive’s critical role in digital preservation is becoming increasingly apparent. The archive’s Wayback Machine, which catalogues website copies, has proven to be an invaluable resource for journalists, scholars, lawyers, and anybody interested in internet history. While there are other digital preservation programs, including national efforts by the US Library of Congress, there is nothing comparable available to the public.
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