U.S. unveils a $345M weapons deal for Taiwan / Cocaine seizure in Colombia / Brazil denies U.S. request for extradition

Plus, Colombia detains President Petro's son

Inside Daily Brief For July 29, 2023

Hey Insiders, 📰 Our top stories today include the $345M weapons deal for Taiwan, an analysis of cocaine seizures in Colombia, and Brazil declining the U.S.'s extradition request for an alleged Russian spy. ⏬ Scroll down for some quick hits and upcoming events. 👂 We want to hear from you - please, hit reply and send us your feedback! Have a great weekend! Vildana p/vildana-b

1 The U.S. has announced a new weapons package for Taiwan, valued at up to $345M. This move comes amidst attempts by the U.S. to reset its relationship with China and is expected to cause tensions with Beijing. More: This is the first instance of the U.S. transferring equipment to Taiwan under the Presidential Drawdown Authority, allowing direct transfers from Defense Department inventories. Pentagon spokesperson, Lt. Col. Martin Meiners, mentioned that the package includes "self-defense capabilities" for Taiwan. The U.S. has previously allowed Taiwan to purchase weapons, which typically takes longer than direct transfers. Last month, Taiwan purchased $332.2M worth of 30mm ammunition and related equipment and $108M for logistics support. In May, Taiwan's defense minister, Chiu Kuo-Cheng, mentioned discussions with the U.S. for a fast-tracked $500M weapons package. Zoom Out: China has recently called on the U.S. to stop supplying arms to Taiwan.

2 What the numbers say: In 2022, the Colombian authorities confiscated around 783 metric tons of unadulterated cocaine and its base, marking the highest amount during the examined timeframe. Additionally, they manually cleared more than 70,000 hectares of coca plantations across the country that year. Relevance: Last month, more than six tonnes of cocaine were found hidden between bananas in Spain and Columbia, according to Europol. In December 2022, Colombian law enforcement discovered around 3 tons of cocaine hidden in banana consignments headed for Algeciras.  On a separate occasion, a shipment of 1.25 tons of cocaine was halted by Colombian officials at the Cartagena port.  By May 2023, to bypass potential seizures in Colombia, the criminal group coordinated a direct shipment from Ecuador to Algeciras, as reported by Europol.

3 Brazil has declined the U.S. request to extradite an alleged Russian spy, Sergey Cherkasov, due to Russia's ongoing extradition process for the same individual. The U.S. Justice Department had charged Cherkasov with attempting to infiltrate the International Criminal Court (ICC) using a fake Brazilian identity. More: Cherkasov was charged with wire fraud and espionage by the U.S. Justice Department. He used the identity "Victor Muller Ferreira" to graduate from Johns Hopkins University in Baltimore in 2020. Cherkasov tried to secure a position at the ICC in 2022 but was arrested in Brazil after being turned away by Dutch authorities. He received a 15-year prison sentence in Brazil for his actions. Russia had earlier sought Cherkasov's extradition on drug trafficking charges, which is currently under review. The U.S. can only proceed with its extradition request if Russia's attempt is denied due to Brazil's espionage investigation. Brazilian Justice Minister Flavio Dino confirmed that Cherkasov will stay in Brazil while the extradition requests are pending. Zoom Out: One of Cherkasov's lawyers, Paulo Ferreira, told Wall Street Journal his client is not a Russian spy.

4 The son of Colombian president Gustavo Petro, Nicolás Petro, was arrested on money laundering and illicit gain charges. This arrest comes after allegations made by his ex-wife, Daysuris Vásquez, claiming he accepted money from criminals. More: Both Nicolás Petro and Daysuris Vásquez were detained for incidents that occurred starting the previous year. President Gustavo Petro said the attorney general would act according to the law. This scandal emerges at the beginning of Colombia's new legislative session, during which President Petro aims to introduce significant reforms. The controversy might influence the regional elections scheduled for late October, where Petro's party competes for the country's top five mayoralties. An investigation was also initiated earlier this year into the president's brother, Juan Fernando Petro, over alleged payments from cocaine traffickers. Zoom Out: President Joe Biden hosted President Gustavo Petro this April for talks at the White House amid profound differences on U.S. drug policy.

5 A U.S. judge rejected Johnson & Johnson's (J&J) second attempt to resolve numerous lawsuits related to its talc products through bankruptcy. This decision jeopardizes a proposed $8.9B settlement that aimed to halt new lawsuits from being initiated. More: U.S. Bankruptcy Judge Michael Kaplan stated that the talc lawsuits did not place J&J in immediate "financial distress." Kaplan's decision was based on the absence of immediate financial distress for J&J's unit, LTL. J&J announced its intention to appeal Kaplan's decision and reiterated its stance against "specious" lawsuits. J&J's initial bankruptcy strategy began in 2021, transferring its talc liabilities to a new company, LTL Management. LTL's first bankruptcy was dismissed in April. The lawsuits allege that J&J's talc products, including baby powder, contained asbestos, leading to various cancers. The total cost of J&J's talc-related verdicts, settlements, and legal fees has reached approximately $4.5B.

6 Wagner mercenaries in Belarus have moved closer to the Polish border, potentially posing a threat by disguising as illegal migrants to stage a "hybrid attack," according to Poland's Prime Minister Mateusz Morawiecki.  This move is seen as a strategic effort to destabilize Poland and the broader EU region. More: Over 100 mercenaries have positioned near Grodno, near the Suwałki Gap, a strategic area separating Belarus from Russia's Kaliningrad enclave. These mercenaries might disguise themselves as Belarusian border guards to assist illegal immigrants entering Poland.  In 2021, Warsaw and Brussels accused Belarus and its Russian supporters of causing instability by transporting migrants to the Polish border. Wagner troops had previously been a significant force in the conflict for the Ukrainian city of Bakhmut. Ukrainian President Volodymyr Zelenskyy recently visited front-line troops in the Bakhmut area. Zoom Out: An attack on Poland, a NATO member, would be viewed as an assault on the entire alliance under Article 5 of its charter, potentially prompting military intervention from the U.S. In the weeks leading up to Russia's incursion, it is believed that Wagner executed alleged "false flag" operations in Ukraine, providing the Kremlin with a justification for the invasion.

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Vildana Bijedic Freelance This newsletter was curated by Vildana. You can reach her at vildana@inside.com or connect with her on Twitter or LinkedIn.  This newsletter was edited by Christopher Hachey

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