In a thickly forested park bordered by apartment blocks and a playground, a dozen workers were busy on a recent day with chain saws and axes, felling trees, cutting logs and chopping them into firewood to be stashed in concealed sheds around Lviv, the largest city in western Ukraine.
Ironworkers at a nearby forge are working overtime to produce wood-burning stoves to be stored in strategic locations. In municipal depots, room is being made to stockpile reserves of coal.
The activity in Lviv is being played out in towns and cities across Ukraine, part of a nationwide effort to amass emergency arsenals of backup fuel and critical provisions as Russia tightens its chokehold on energy supplies across Europe.
curtailed gas supplies to Europe last week, leading the European Union to announce that it will reduce imports of Russian gas so as not to be held hostage. Russia turned off the gas taps to Latvia on Saturday, after the government there announced additional military assistance for Ukraine, the latest in a string of European countries to do so.
Ukraine buys its natural gas from European neighbors, so the restriction of deliveries to Europe threatens its access to energy, too.
ordered to evacuate this past weekend after months of relentless Russian bombardment destroyed the infrastructure needed to deliver heat and electricity.
Our Coverage of the Russia-Ukraine War
“We understand that the Russians may continue targeting critical energy infrastructure before and during the winter,” said Oleksiy Chernyshov, Ukraine’s minister for communities and territories development, in an interview.
“They’ve demolished central heating stations in big cities, and physical devastation is still happening nationwide,” he said. “We are working to repair damage, but it doesn’t mean we won’t have more.”
Far from Ukraine’s embattled southeastern front, the campaign is being waged in forests and in steel forges, at gas storage sites and electrical stations, and even in basement boiler rooms, as the government mobilizes regions to activate a blueprint for amassing fuel and shelter.
disconnect Ukraine’s energy grid from Russia and Belarus and link it directly to the European Union’s. Last month, Ukraine began exporting small amounts of electricity to Romania, with hopes of eventually supplying European companies that have been hit by Russian natural gas cuts, a potential source of valuable income.
But Ukrainian officials say the ability to supply electricity at home, especially over the coming winter, when temperatures can fall far below freezing, is increasingly threatened as Russia intensifies a campaign of targeting the infrastructure that delivers energy.
Russian shelling has hit thermal power plants around the country and over 200 gas-fired boiler plants used for centralized heating. Around 5,000 kilometers of gas pipelines have been damaged, along with 3,800 gas distribution centers, according to an analysis by the Woodrow Wilson International Center’s Kennan Institute, a think tank focused on Russia.
Gas is especially critical for Ukraine because it is used to warm thousands of high-rise apartment complexes, schools, post offices and municipal buildings that rely on centralized heating systems.
largest gas reserves in Europe and has 11 billion cubic meters in storage. Andrii Zakrevskyi, head of the Ukrainian oil and gas association, said Monday that was enough to meet Ukraine’s needs before the war — but the level is roughly half what the government would like it to be.
racing to secure new energy sources, the pain circles back to Ukraine, which imports gas from Europe after halting direct imports from Russia after the 2014 annexation of Crimea. Russia’s squeeze has pushed European gas futures prices to record levels, making imports more expensive at a time when the government in Kyiv is facing a budget crisis.
All of which has gotten the country mobilized in a hurry.
Swiatoslaw and Zoriana Bielinski recently stocked the cellar of their modest Lviv home with wood. The couple has purchased scores of batteries and several battery-operated lamps in case the lights go out, and they were preparing to buy gas bottles for cooking.
“We have to start thinking about this,” said Alicja Bielinska, Mr. Bielinski’s sister, who had helped the couple stock up. “Ultimately, we can survive without light and gas, but we won’t be able to survive if the invaders take over.”
Officials responsible for city planning have stockpiled on a much grander scale, collecting thousands of tons of wood and a large stash of coal in the last week alone. Mr. Sadovyi, Lviv’s mayor, said more supplies were on the way and has ordered thermostats to be lowered to 15 degrees Celsius (59 degrees Fahrenheit) when winter sets in.
On a recent day, Mr. Sadovyi buzzed around the city hall courtyard, greeting locals who had gathered for now-regular demonstrations on how to prepare for heat and electricity cuts — or worse. Two emergency workers showed residents how to put on a chemical suit in case of an attack: gas mask firmly in place, the suit sealed tight over the head.
Forges have shifted some production to put a priority on making tens of thousands wood-burning stoves, some emblazoned with the Ukrainian coat of arms. Town halls in over 200 cities are building stockpiles, along with tents that can house up to 50 people apiece in the event that multifamily apartment buildings are left without gas needed to heat them.
The tents can be moved quickly to sites without electricity or heat, providing emergency shelter and stoves for boiling water and cooking, said Mr. Chernyshov, the development minister.
“We hope we won’t have to use them,” said Iryna Dzhuryk, an administrative director in Lviv. “But this is an absolutely unusual situation. We are shocked by what we’re facing and worried about making sure we have enough to keep people warm.”
Nearby, sheds recently built to stock firewood have been camouflaged by locals. Additional wood is expected to arrive in the coming weeks, hewn from groves of trees inside the city and from the vast forests of western Ukraine.
One hour’s drive north of Lviv, in a dense wood streaked with yellow sunlight, forestry service workers labored to generate enough firewood to supply a beleaguered nation. On a recent weekday, they cut into a grove of weathered oak trees and trucked them to a sawmill, where a lumberyard half the size of a football field was stacked a meter high with freshly hewn logs.
Firewood sales have doubled from a year ago, and prices have nearly tripled as the country stocks up, said Yuriy Hromyak, vice director of the Lviv Regional Department of Forestry.
Even the forest isn’t sheltered from Russian attacks, he added. Ukrainian forces recently shot down a rocket fired from Belarus on a nearby oil storage facility. The tanks — which were empty — weren’t damaged, but the blast blew out all the windows in a wood storage warehouse and in parts of the sawmill.
“The Russians will do anything to try to destroy us,” he said. “But no one has managed to unite us as much as Putin has.”
LOS ANGELES — More than a decade after Apple disrupted the music industry and Amazon upended retail, the tech heavyweights have set their sights on a new arena ripe for change: live sports.
Emboldened by their deep pockets and eager to boost viewership of their streaming-subscription services, Apple and Amazon have thrust themselves into negotiations for media rights held by the National Football League, Major League Baseball, Formula One racing and college conferences.
They are competing to replace DirecTV for the rights to N.F.L. Sunday Ticket, a package the league wants to sell for more than $2.5 billion annually, about $1 billion more than it currently costs, according to five people familiar with the process. Eager not to miss out, Google has also offered a bid from YouTube for the rights beginning in 2023, two people familiar with the offer said.
reported by the SportsBusiness Journal.
Fans will still be able to access all the games on Sunday, regardless of who wins the rights, but they will probably pay a premium to add the service to their Apple, Amazon, ESPN+ or YouTube service, some of the dozen people said. It is not yet clear if that premium would be more or less than the $294 that DirecTV charges for a year, they added.
The Race to Rule Streaming TV
Apple and Amazon are trying to position themselves for a future without cable. Since 2015, traditional pay television has lost a quarter of its subscribers — about 25 million homes — as people traded cable packages for apps like Netflix and Hulu, according to MoffettNathanson, an investment firm that tracks the industry.
But the price of live sports rights is only projected to increase. The biggest media companies, including Disney, Comcast, Paramount and Fox, are expected to spend a combined $24.2 billion for rights in 2024, according to data from MoffettNathanson, nearly double what they spent a decade earlier.
The fragmenting of a decades-old distribution model has created an opportunity for Apple and Amazon. The companies want to expand deeper into media by selling subscriptions to Apple TV+ and Amazon Prime. Besides containing their own exclusive shows and sports, those services double as portals selling additional streaming offerings like Starz and HBO Max, which pay Apple and Amazon 15 percent or more of each subscription sold.
Amazon generates more than $3 billion annually from third-party subscription sales, according to estimates by the investment bank BMO Capital Markets. To make the business model work, Apple and Amazon must attract more viewers, and sports are the most powerful draw in media. The companies may be willing to lose money on Sunday Ticket to expose new customers to other parts of their business, the same calculation that DirecTV historically made.
For all their disruptive potential, though, Apple and Amazon have yet to win a marquee rights package in the United States. That is reminiscent of 20 years ago, when sports leagues feared they would lose viewers by shifting games from network television to cable. But the change gradually became standard.
Traditional television companies are trying to stave off Apple and Amazon by starting their own streaming-subscription services. Last year Comcast, which owns NBCUniversal, shuttered NBC Sports Network to bolster its USA channel and to encourage people to pay for Peacock, where it exclusively aired some English Premier League soccer games. Similarly, ESPN struck a deal with the National Hockey League to televise some games on its ESPN+ service, and CBS has shown marquee soccer games on Paramount+.
But those services have a fraction of the more than 100 million cable subscribers the media companies once reached. As a result, the bulk of sports programming goes on traditional pay-TV channels where they can guarantee leagues and advertisers larger audiences.
The National Basketball Association will be the first major test of the new competitive landscape. Its agreements with ESPN and Turner run through the 2024-25 season. Most sports and media executives predict that the league will stick with traditional broadcasters for most of its games, while carving out some small portion of rights for a tech company.
“It hedges them for the future and exposes the product to new audiences,” said George Pyne, founder of the sports private equity firm, Bruin Capital, and the former chief operating officer of NASCAR. “They can still have a long-term relationship with network partners but dip their toe in with new media.”
Until then, the best opportunities for Apple and Amazon may be overseas — where Amazon has been active for years — becauseEuropean soccer leagues resell their rights every two to three years. Amazon recently scooped up rights to Europe’s top tournament, the UEFA Champions League, in Britain, Germany and Italy. It also has rights to France’s Ligue 1, which it offers to Prime Video subscribers for annual fee of about $90, and the English Premier League.
Media companies will be pressured to expand geographically to compete, said Daniel Cohen, who leads global media rights consulting for Octagon, a sports agency. Television broadcasters could also team up to pool their financial firepower, or buy each other outright, to compete with tech giants willing to pay billions for rights like N.F.L. Sunday Ticket.
“It comes down to a Silicon Valley ego thing,” Mr. Cohen said of the high-dollar N.F.L. deal. “I don’t see a road to profitability. I see a road to victory.”
TRANSCARPATHIA, Ukraine — Beneath dark clouds unleashing a summer rain, officials in a southwestern Ukrainian border village gathered silently, slowly hanging wreaths on branches to commemorate the destruction of a nation.
The wreaths were not decorated with the yellow and blue of the Ukrainian flag; they were laced, instead, with the red, white and green of Hungary’s. And the nation they honored this month was not their besieged country, but a homeland from their collective history, torn up more than 100 years ago.
Transcarpathia — now a hardscrabble region of Ukraine bordering Hungary — has been home to as many as 150,000 ethnic Hungarians who, through the complex horse-trading, conquests and boundary adjustments of over a century of European geopolitics, ended up within Ukraine’s borders.
war with Russia, the yearnings of Ukraine’s Hungarian minority were mostly brushed off as benign nostalgia for a time when they lived in one nation with other ethnic Hungarians.Now, divided loyalties within the tiny community — which has soaked up Hungary’s ambivalence toward Russia’s invasion — are being seen as something more worrisome by their fellow Ukrainians, some of whom fear they are susceptible to pro-Russia propaganda from Hungary.
Viktor Orban, is able to cause for his neighbors, in this case by playing on ethnic Hungarians’ feelings of discrimination by their government. And it adds another layer of complexity for Ukraine’s leaders as they try to keep their sprawling, multiethnic country united in the face of a brutal Russian invasion, even as they struggle to win allegiance from minorities including ethnic Russians and Hungarians.
tensions have risen as Mr. Orban has increasingly sought to bring ethnic Hungarian enclaves in Ukraine and elsewhere under his sway. Among other things, he has encouraged Hungarians beyond the country’s borders to claim citizenship, which allowed him to win over new voters to keep him in power.
Better Understand the Russia-Ukraine War
In this poor region of Ukraine, along the Hungarian border, he doled out funding to run schools, churches, businesses and newspapers, winning gratitude — and helping fan resentments. The ceremony for a lost homeland did not exist before Mr. Orban came to power.
The feelings of otherness intensified as Ukraine, under constant threat by Russia, passed a law that mandates more classes be taught in Ukrainian in public schools. The law was mainly meant to rein in the use of the Russian language, but for the conservative Hungarian community where many still learn, and pray, almost exclusively in Hungarian, the law was seen as an unfair infringement on constitutional rights.
tried to block European Union sanctions on Russian energy imports, on which Hungary relies. And he declined to give weapons to Ukraine, or even allow them to be shipped across Hungary’s borders.
That wariness has seeped into the ethnic Hungarian community, fed by Hungarian television channels close to Mr. Orban’s governing party that broadcast into Hungarian-Ukrainian homes along the border. Hungarian broadcasters cast doubt on Ukraine’s position that Russia invaded to steal Ukrainian land, instead sharing Moscow’s perspective that it invaded to protect Russian speakers — a minority with a different language, not unlike the ethnic Hungarians.
“I think this is the main reason for the war, not what Ukraine says,” said Gyula Fodor, a vice rector at the Transcarpathian Hungarian Institute, chatting over traditional plum schnapps after the ceremony for the lost homeland. The institute, a private college, has received Hungarian funding, and Mr. Orban attended its ribbon-cutting.
As the war has dragged on, relations between Mr. Orban and President Volodymyr Zelensky of Ukraine have grown increasingly frosty.
In the border towns, suspicion is in the air. Some ethnic Ukrainians claimed during interviews that in the first days of Russia’s invasion Hungarian priests had urged the faithful to hold out hope that their region would be annexed to Hungary after Kyiv, the capital of Ukraine, fell, though there is no documentary evidence to substantiate those assertions.
In towns with ethnic Hungarian majorities, some people reported being harassed with mysterious text messages in Ukrainian: “Ukraine for Ukrainians. Glory to the nation! Death to enemies!” They said the messages ended with a threat using another word for ethnic Hungarians: “Magyars to the knives.”
Ukrainian intelligence officials publicly claim the texts came from a bot farm in Odesa using Russian software, and labeled it a Russian attempt to destabilize Ukraine, but they did not provide evidence.
Tensions in Transcarpathia erupted publicly after Moscow’s annexation of Crimea in 2014. Right-wing nationalists marched through the streets of Uzhhorod in recent years, sometimes chanting “Magyars to the knife.”
And a Hungarian cultural center in the city of Uzhhorod was set ablaze twice in 2017. In both cases, authorities said the perpetrators had pro-Russian links. Dmytro Tuzhankskyi, the director of the Institute for Central European Strategy in Uzhhorod that promotes Ukraine’s alignment with the West, says he believes Moscow was behind other local provocations. Moscow would like to sow discord between Hungary and Ukraine, he alleged, as a way of causing more trouble for the Western alliance that has lined up against Mr. Putin.
Hungarian and local officials, he worried, could unwittingly fall prey to such designs: “They might think: One more little provocation — it means nothing. That’s a very dangerous mind-set.”
Yet for many ethnic Hungarians, Ukraine is not blameless.
László Zubánics, the leader of the Hungarian Democratic Union of Ukraine, said locals watch Hungarian television partly because no Ukrainian cable channels reach the border areas, something he saw as a form of political neglect. But he acknowledged that ethnic Hungarians often choose to tune into Hungarian, and not Ukrainian, satellite channels.
Many ethnic Hungarians say they are only able to afford to stay in the region of family vineyards and farms because of Hungarian funding. That makes many ethnic Hungarians skeptical of Ukraine’s claims that it wants to help integrate them into society, Mr. Zubánics said: “Most kids and parents say, ‘Why do I need the state language? I don’t see my place here in this country.’”
Although the Soviets repressed and exiled Hungarian nationalists, some ethnic Hungarians have started to look back on Soviet rule as a time of relative cultural freedom as well. It was a time, according to Mr. Zubánics, when Hungarians recall holding prominent official positions, unlike in modern Ukraine.
Nostalgia for Soviet times stirs the ire of local right-wing nationalists such as Vasyl Vovkunovich, once a political ally of Hungarian nationalists in the final days of the Soviet Union. In 2017, he said he led a march of supporters down the streets of Berehove, ripping down Hungarian flags raised over many churches and buildings.
“These Hungarians are not worthy,” he said. “Their ancestors would roll over in their graves if they knew Hungary was siding with Russia.”
For local residents like Zoltan Kazmér, 32, the present feels more complicated. He feels loyal to Ukraine, he said. But it was Hungarian funding that allowed him to turn his family’s century-old winemaking tradition into a business.
“When we go to Hungary, we feel like Ukrainians,” he said. “When we are in Ukraine, we feel like Hungarians.”
He has said that his gun company was born out of his poor golf game. Instead of puttering around the course, Mr. Daniel started using an AR-15 — the type of gun he would later go on to make — for target practice. “Every shot he fired filled him with a satisfaction he’d never before experienced,” the company’s website says.
At the time, Mr. Daniel had trouble finding a way to mount a scope onto his rifle. He began designing and selling his own accessory that allowed gun owners to add lights, a range finder and lasers onto the rifle.
He got his break in 2002 at a gun show in Orlando, Fla., where he was approached by a representative of the U.S. Special Forces. He ultimately won a $20 million contract to produce the accessories for combat rifles. More deals followed. In 2008, he won a contract with the British military, according to Daniel Defense’s website.
By 2009, the company had expanded to making guns for consumers. Its military ties were the basis of its marketing, which often featured heavily armed fighters. “Use what they use,” one ad says. Another shows a military-style scope aimed at passing cars on what looks like a regular city street. Others include references — using hashtags and catchphrases — to the “Call of Duty” video game.
Before the 2000s, most gun makers did not market military-style assault weapons to civilians. At the largest industry trade shows, tactical military gear and guns were cordoned off, away from the general public. That started to change around 2004, industry experts say, with the expiration of the federal assault weapon ban.
“Companies like Daniel Defense glorify violence and war in their marketing to consumers,” said Nick Suplina, a senior vice president at Everytown for Gun Safety, a group that supports gun control.
In 2012, the Sandy Hook shooting led to an industrywide surge in gun sales, as firearm enthusiasts stocked up, fearing a government crackdown. In an interview with Forbes, Mr. Daniel said the shooting “drove a lot of sales.” (Forbes reported that Daniel Defense had sales of $73 million in 2016.)
After the shooting, Daniel Defense offered employees extra overtime to meet skyrocketing demand, according to Christopher Powell, who worked for the company at the time. “They kept people focused on the task at hand,” he said.
But in the late 2010s, some colleagues started to worry that Mr. Daniel had become distracted by the glamour of marketing the brand and rubbing shoulders with celebrities and politicians, according to a former Daniel Defense manager. They voiced concerns that some of the marketing materials were inappropriate for a company that manufactures deadly weapons, said the manager and a former executive, who didn’t want their names used because they feared legal or professional repercussions.
Some ads featured children carrying and firing guns. In another, posted on Instagram two days after Christmas last year, a man dressed as Santa Claus and wearing a military helmet is smoking a cigar and holding a Daniel Defense rifle. “After a long weekend, Santa is enjoying MK18 Monday,” the caption states, referring to the gun’s model.
The industry’s aggressive marketing has landed some companies in trouble. Earlier this year, the gun maker Remington reached a $73 million settlement with families of children killed at the Sandy Hook school in Newtown, Conn. The families had claimed that Remington improperly marketed its assault rifles, including with its weapons appearing in “Call of Duty,” which the killer at Sandy Hook had frequently played.
A year after Sandy Hook, with the Super Bowl approaching, Daniel Defense deployed a new marketing stunt.
The National Football League had a policy prohibiting ads for weapons on its telecasts. But Daniel Defense tried to buy a 60-second spot that depicted a soldier returning home to his family, with ominous music in the background. “I am responsible for their protection,” the ad’s narrator intones. “And no one has the right to tell me how to defend them.”
Given the N.F.L.’s ban on gun ads, it was no surprise that the ad was rejected. (Daniel Defense claimed that the ad complied with the policy because the company sells products besides guns.) But Mr. Daniel turned the rejection into a rallying cry, and the conservative media lapped it up. Appearing on Fox News’s “Fox & Friends,” he urged viewers to “call the N.F.L. and say, ‘C’mon, man, run my ad.’”
“That is Marty Daniel at work,” Mr. Powell said. “He’s not one of those typical C.E.O.s that you see.”
Mr. Daniel and his wife, Cindy, have worked hand-in-hand with the National Rifle Association to raise money for the group, sell weapons to its members and beat back calls for gun control.
In recent years, Mr. Daniel and Ms. Daniel, the company’s chief operating officer, became outspoken supporters of Donald J. Trump, contributing $300,000 to a group aligned with Mr. Trump. Mr. Daniel joined the “Second Amendment Coalition,” a group of gun industry heavyweights who advised Mr. Trump on gun policy.
Mr. Daniel told Breitbart News in 2017 that Mr. Trump’s election saved “our Second Amendment rights.” He and his wife have also donated to other Republican candidates and groups, including in their home state of Georgia. So far in the 2022 election cycle, they’ve given more than $70,000 to Republicans.
Joe Bruno, a former executive in the wealth management division of Wells Fargo, had long been troubled by the way his unit handled certain job interviews.
For many open positions, employees would interview a “diverse” candidate — the bank’s term for a woman or person of color — in keeping with the bank’s yearslong informal policy. But Mr. Bruno noticed that often, the so-called diverse candidate would be interviewed for a job that had already been promised to someone else.
He complained to his bosses. They dismissed his claims. Last August, Mr. Bruno, 58, was fired. In an interview, he said Wells Fargo retaliated against him for telling his superiors that the “fake interviews” were “inappropriate, morally wrong, ethically wrong.”
Wells Fargo said Mr. Bruno was dismissed for retaliating against a fellow employee.
Mr. Bruno is one of seven current and former Wells Fargo employees who said that they were instructed by their direct bosses or human resources managers in the bank’s wealth management unit to interview “diverse” candidates — even though the decision had already been made to give the job to another candidate. Five others said they were aware of the practice, or helped to arrange it.
damaged the bank’s reputation and led to more than $4.5 billion in fines.
qualified Black candidates. He later apologized for the comment when the memo became public in September.
Following Mr. Scharf’s directive, Wells Fargo adopted a formal policy in requiring that a diverse slate of candidates would have to be interviewed for all open jobs paying more than $100,000 a year.
That August, Wells Fargo paid nearly $8 million to settle a claim by the Department of Labor that it had discriminated against more than 30,000 Black job applicants for positions in banking, sales and support roles.
Wells Fargo had already been trying to increase diversity. In 2013, a group of Black financial advisers at Wells Fargo sued the bank for racial discrimination, saying they were corralled into poor neighborhoods and kept away from opportunities to win new clients and partner with white financial advisers.
The bank settled the case in 2017. Wells Fargo paid nearly $36 million to about 320 members of the class-action lawsuit, and pledged to “take actions designed to enhance opportunities for employment, earnings, and advancement of African American financial advisors and financial advisor trainees.”
sued by Black coaches, who claimed they were subject to “sham” interviews.
“Well-intentioned people created these initiatives, but when they hit the ground the energy was devoted not to implementing them but finding a way to get around them,” said Linda Friedman, the lawyer for the Black financial advisers involved in the 2017 Wells Fargo settlement.
Mr. Bruno joined Wells Fargo in 2000 and worked his way up to market leader for Wells Fargo Advisors in Jacksonville, Fla. He oversaw 14 branches of the bank’s wealth management operation. He saw himself as a champion of diversity.
Mr. Bruno was mainly responsible for filling two categories of jobs — financial advisers and financial consultants, who work alongside advisers. He said that he was often told to conduct interviews with Black candidates for the financial consultant positions, which were lower-paying jobs. In most such cases, Wells had no intention of hiring those people because either he or his superiors had already picked someone for the job, Mr. Bruno said.
Mr. Bruno said he eventually refused to conduct the interviews. “I got a Black person on the other side of the table who has no shot at getting the job,” he told his bosses.
Barry Sommers, the chief executive of Wells Fargo’s wealth and investment management business, said that fake interviews wouldn’t even have been necessary for the financial consultant positions that Mr. Bruno was hiring for. Their salaries, Mr. Sommers said, fell below the $100,000 threshold that required a diverse slate of candidates to be interviewed per Wells Fargo’s 2020 policy.
“There is absolutely no reason why anyone would conduct a fake interview,” Mr. Sommers said. Rather than tracking the identities of interviewees, the bank focused on the results, and “the numbers are getting better,” he said.
Of the nearly 26,000 people the bank hired in 2020, 77 percent were not white men, Ms. Burton said. And last year, 81 percent of the 30,000 people hired were not white men, she said. She declined to specify how many of those new hires were for jobs above the $100,000 salary threshold.
But six current and former Wells Fargo employees, including Mr. Bruno, said that fake interviews were conducted for many types of positions. Three current employees said they conducted fake job interviews or knew of them as recently as this year.
In 2018, Tony Thorpe was a senior manager for Wells Fargo Advisors in Nashville, overseeing 60 advisers. Mr. Thorpe said his boss and the human resources manager overseeing his area both told him that if he found a financial adviser worth recruiting, and that adviser wanted to bring a sales assistant along, it was permissible — but the assistant’s job had to be posted publicly.
Mr. Thorpe, who retired from Wells Fargo in 2019, said he was instructed to reach out to colleges and business associations in the area where he could meet nonwhite candidates for the assistant job. Mr. Thorpe said he never conducted a fake interview, but was required to document that he had tried to find a “diverse pool” of candidates, even though he knew exactly who would be getting the job.
“You did have to tell the story, send an email verifying what you’ve done,” Mr. Thorpe said. “You just had to show that you were trying.”
Ms. Burton said that she couldn’t speak to practices under Wells Fargo’s prior management, but that the bank kept records of every job interview. The record-keeping is necessary because the Office of the Comptroller of the Currency, the nation’s top banking regulator, conducts periodic audits. While the O.C.C. doesn’t impose its own diversity standards for banks, it does check to make sure they’re following state and federal laws, including anti-discrimination laws.
Don Banks, 31, a Black wealth manager living in Monroe, La., was contacted by Wells Fargo twice before he was hired. In 2016 and 2017, a human resources representative from the bank told Mr. Banks that he had advanced past an initial interview round for a financial adviser trainee position and would be getting a call from a manager. Both times, no one called.
Mr. Banks had been submitted to fake interviews, according to a former employee who was a manager in the area where Mr. Banks had applied, and who participated in the hiring process involving Mr. Banks’s application. The person spoke on the condition of anonymity because he still works in the industry.
Mr. Banks was eventually hired in 2018 by Wells Fargo in a more junior position. Two years later, he was laid off during cutbacks in the pandemic.
“It doesn’t sound like a great experience,” Mr. Sommers, the wealth management chief executive, said. “It shouldn’t have happened that way.”
Since its founding in 1923, Disney has stood alone in Hollywood in one fundamental way: Its family-friendly movies, television shows and theme park rides, at least in theory, have always been aimed at everybody, with potential political and cultural pitfalls zealously avoided.
The Disney brand is about wishing on stars and finding true love and living happily ever after. In case the fairy tale castles are too subtle, Disney theme parks outright promise an escape from reality with welcome signs that read, “Here you leave today and enter the world of yesterday, tomorrow and fantasy.”
Lately, however, real world ugliness has been creeping into the Magic Kingdom. In this hyperpartisan moment, both sides of the political divide have been pounding on Disney, endangering one of the world’s best-known brands — one that, for many, symbolizes America itself — as it tries to navigate a rapidly changing entertainment industry.
In some cases, Disney has willingly waded into cultural issues. Last summer, to applause from progressives and snarls from the far right, Disney decided to make loudspeaker announcements at its theme parks gender neutral, removing “ladies and gentlemen, boys and girls” in favor of “dreamers of all ages.” But the entertainment giant has also found itself dragged into the fray, as with the recent imbroglio over a new Florida law that among many things restricts classroom instruction through third grade on sexual orientation and gender identity and has been labeled by opponents as “Don’t Say Gay.”
Disney then aggressively denounced the bill — only to find itself in the cross hairs of Fox News hosts and Florida’s governor, Ron DeSantis, who sent a fund-raising email to supporters saying that “Woke Disney” had “lost any moral authority to tell you what to do.” Florida lawmakers began threatening to revoke a 55-year-old law that enables Walt Disney World to essentially function as its own municipal government. (Disney had already been at odds with the governor on pandemic issues like a vaccine mandate for employees.)
In trying to offend no one, Disney had seemingly lost everyone.
Candlelight Processional events, Bible verses and all.
It took the company until 2009 to introduce a Black princess.
But in recent years, there has been a noticeable change. Robert A. Iger, who served as chief executive from 2005 to 2020, pushed the world’s largest entertainment company to emphasize diverse casting and storytelling. As he said at Disney’s 2017 shareholder meeting, referring to inclusion and equality: “We can take those values, which we deem important societally, and actually change people’s behavior — get people to be more accepting of the multiple differences and cultures and races and all other facets of our lives and our people.”
powerful Afrocentric story line. Under his tenure, Disney refocused the “Star Wars” franchise around female characters. A parade of animated movies (“Moana,” “Coco,” “Raya and the Last Dragon,” “Soul,” “Encanto”) showcased a wide variety of races, cultures and ethnicities.
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The result, for the most part, has been one hit after another. But a swath of Disney’s audience has pushed back.
review bombed” in the fall because it depicted a gay superhero kissing his husband, with online trolls flooding the Internet Movie Database with hundreds of homophobic one-star reviews. In January, Disney was accused by the actor Peter Dinklage and others of trafficking in stereotypes by moving forward with a live-action “Snow White” movie — until it was revealed that the company planned to replace the seven dwarfs with digitally created “magical creatures,” which, in turn, prompted complaints by others about the “erasure” of people with dwarfism.
Disney executives tend to dismiss such incidents as tempests in teapots: trending today, replaced by a new complaint tomorrow. But even moderate online storms can be a distraction inside the company. Meetings are held about how and whether to respond; fretful talent partners must be reassured.
As Disney prepared to introduce its streaming service in 2019, it began an extensive review of its film library. As part of the initiative, called Stories Matter, Disney added disclaimers to content that the company determined included “negative depictions or mistreatment of people or cultures.” Examples included episodes of “The Muppet Show” from the 1970s and the 1941 version of “Dumbo.”
“These stereotypes were wrong then and are wrong now,” the disclaimers read.
The Stories Matter team privately flagged other characters as potentially problematic, with the findings distributed to senior Disney leaders, according to two current Disney executives, who spoke on the condition of anonymity to discuss confidential information. Ursula, the villainous sea witch from “The Little Mermaid” (1989), was one. Her dark color palette (lavender skin, black legs) could be viewed through a racial lens, the Stories Matter team cautioned; she is also a “queer coded” character, with mannerisms inspired in part by those of a real-life drag queen.
changing of the guard, with Mr. Iger stepping down as executive chairman in December.
Mr. Iger occasionally spoke out on hot-button political issues during his time as chief executive. His successor, Bob Chapek, decided (with backing from the Disney board) to avoid weighing in on state political battles. Disney lobbyists would continue to work behind the scenes, however, as they did with the Florida legislation.
gently explored gender identity. Gonzo donned a gown, defying a directive from Miss Piggy “that the girls come as princesses and the boys come as knights.” Out magazine wrote that the episode “just sent a powerful message of love and acceptance to gender-variant kids everywhere!” And a far-right pundit blasted Disney for “pushing the trans agenda” on children, starting an online brush fire.
Around the same time, some L.G.B.T.Q. advocates were criticizing Disney over “Loki,” a Disney+ superhero show. In the third episode of “Loki,” the title character briefly acknowledged for the first time onscreen what comic fans had long known: He is bisexual. But the blink-and-you-missed-it handling of the information angered some prominent members of the L.G.B.T.Q. community. “It’s, like, one word,” Russell T. Davies, a British screenwriter (“Queer as Folk”), said during a panel discussion at the time. “It’s a ridiculous, craven, feeble gesture.”
The fighting will undoubtedly continue: The Disney-Pixar film “Lightyear,” set for release in June, depicts a loving lesbian couple, while “Thor: Love and Thunder,” arriving in July, will showcase a major L.G.B.T.Q. character.
Last month, when Disney held its most recent shareholder meeting, Mr. Chapek was put on the spot by shareholders from the political left and right.
One person called Disney to task for contributions to legislators who have championed bills that restrict voting and reproductive rights. Mr. Chapek said that Disney gave money to “both sides of the aisle” and that it was reassessing its donation policies. (He subsequently paused all contributions in Florida.) Another representative for a shareholder advocacy group then took the microphone and noted that “Disney from its very inception has always represented a safe haven for children,” before veering into homophobic and transphobic comments and asking Mr. Chapek to “ditch the politicization and gender ideology.”
In response, Mr. Chapek noted the contrasting shareholder concerns. “I think all the participants on today’s call can see how difficult it is to try to thread the needle between the extreme polarization of political viewpoints,” he said.
“What we want Disney to be is a place where people can come together,” he continued. “My opinion is that, when someone walks down Main Street and comes in the gates of our parks, they put their differences aside and look at what they have as a shared belief — a shared belief of Disney magic, hopes, dreams and imagination.”
KYIV, Ukraine — There are fields instead of city streets, farmsteads instead of apartment buildings. Open highways stretch to the horizon.
The battles in the north that Ukraine won over the past seven weeks raged in towns and densely populated suburbs around the capital, Kyiv, but the war is about to take a hard turn to the southeast and into a vast expanse of wide-open flatland, fundamentally changing the nature of the combat, the weapons at play and the strategies that might bring victory.
Military analysts, Ukrainian commanders, soldiers and even Russia’s president, Vladimir V. Putin, acknowledge that a wider war that began with a failed attempt to capture the capital will now be waged in the eastern Donbas region.
With few natural barriers, the armies can try to flank and surround each other, firing fierce barrages of artillery from a distance to soften enemy positions.
Russia invaded in February, Ukraine had been fighting Russia-backed separatists there since 2014, when Moscow fomented an uprising and sent in forces to support it. That war had settled into a stalemate, with each side controlling territory and neither gaining much ground.
Now, what may be the decisive phase of Mr. Putin’s latest war is returning to that same region, blighted by eight years of conflict and littered with land mines and trenches, as he tries to conquer the portion of Donbas still held by Ukraine. Neither side has made a major move in recent days, and analysts say it will most likely require a long and bloody conflict for either one to prevail.
Slovakia this week provided Ukraine with a potent, long-range antiaircraft missile system, the S-300. And on Wednesday, President Biden announced an $800 million military aid package to Ukraine that for the first time included more-powerful weaponry, including 18 155-millimeter howitzers, 40,000 rounds of artillery ammunition and 200 armored personnel carriers.
warn the United States of “unpredictable consequences” of shipping such arms, American officials said on Friday.
Perhaps the biggest difference from the northern phase of the war, fought among towns, woods and hills, will be the terrain. Military analysts are forecasting an all-out, bloody battle on the steppe.
“There’s nowhere to hide,” said Maksim Finogin, a veteran of Ukraine’s conflict in Donbas.
considering applying for membership in the alliance. Dmitri A. Medvedev, Russia’s former president and prime minister, said Moscow would be forced to “seriously strengthen” its defenses in the Baltics if the two countries were to join.
“The surrounding forces draw in closer, tighten the flanks and then methodically destroy” those trapped inside with artillery, he said, recalling a strategy that nearly cost him his life.
designated a single theater commander, Gen. Aleksandr V. Dvornikov, a former commander of the Russian army in Syria known for brutal tactics there.
And the fight in the east will begin closer to supply lines stretching back to the Russian border; that could be key for a mechanized Russian army advancing in a major conventional assault across the countryside.
“They are now prepared to fight the war that they really want,” the retired Gen. Philip M. Breedlove, a former NATO supreme allied commander for Europe, said of the Russians. “They want to meet force on force in open fields and go at it.”
Andrew E. Kramer reported from Kyiv, Ukraine; Eric Schmitt from Washington; Thomas Gibbons-Neff from Kharkiv, Ukraine; and Michael Schwirtz from Lviv, Ukraine.
Some feature more than 50 billion tiny transistors that are 10,000 times smaller than the width of a human hair. They are made on gigantic, ultraclean factory room floors that can beseven stories tall and run the length of four football fields.
Microchips are in many ways the lifeblood of the modern economy. They power computers, smartphones, cars, appliances and scores of other electronics. But the world’s demand for them has surged since the pandemic, which also caused supply-chain disruptions, resulting in a global shortage.
That, in turn, is fueling inflation and raising alarms that the United States is becoming too dependent on chips made abroad. The United States accounts for only about 12 percent of global semiconductor manufacturing capacity; more than 90 percent of the most advanced chips come from Taiwan.
Intel, a Silicon Valley titan that is seeking to restore its longtime lead in chip manufacturing technology, is making a $20 billion bet that it can help ease the chip shortfall. It is building two factories at its chip-making complex in Chandler, Ariz., that will take three years to complete, and recently announced plans for a potentially bigger expansion, with new sites in New Albany, Ohio, and Magdeburg, Germany.
Why does making millions of these tiny components mean building — and spending — so big? A look inside Intel production plants in Chandler and Hillsboro, Ore., provides some answers.
What chips do
Chips, or integrated circuits, began to replace bulky individual transistors in the late 1950s. Many of those tiny components are produced on a piece of silicon and connected to work together. The resulting chips store data, amplify radio signals and perform other operations; Intel is famous for a variety called microprocessors, which perform most of the calculating functions of a computer.
Intel has managed to shrink transistors on its microprocessors to mind-bending sizes. But the rival Taiwan Semiconductor Manufacturing Company can make even tinier components, a key reason Apple chose it to make the chips for its latest iPhones.
Such wins by a company based in Taiwan, an island that China claims as its own, add to signs of a growing technology gap that could put advances in computing, consumer devices and military hardware at risk from both China’s ambitions and natural threats in Taiwan such as earthquakes and drought. And it has put a spotlight on Intel’s efforts to recapture the technology lead.
How chips are made
Chip makers are packing more and more transistors onto each piece of silicon, which is why technology does more each year. It’s also the reason that new chip factories cost billions and fewer companies can afford to build them.
In addition to paying for buildings and machinery, companies must spend heavily to develop the complex processing steps used to fabricate chips from plate-size silicon wafers — which is why the factories are called “fabs.”
Enormous machines project designs for chips across each wafer, and then deposit and etch away layers of materials to create their transistors and connect them. Up to 25 wafers at a time move among those systems in special pods on automated overhead tracks.
Processing a wafer takes thousands of steps and up to two months. TSMC has set the pace for output in recent years, operating “gigafabs,” sites with four or more production lines. Dan Hutcheson, vice chair of the market research firm TechInsights, estimates that each site can process more than 100,000 wafers a month. He puts the capacity of Intel’s two planned $10 billion facilities in Arizona at roughly 40,000 wafers a month each.
How chips are packaged
After processing, the wafer is sliced into individual chips. These are tested and wrapped in plastic packages to connect them to circuit boards or parts of a system.
That step has become a new battleground, because it’s more difficult to make transistors even smaller. Companies are now stacking multiple chips or laying them side by side in a package, connecting them to act as a single piece of silicon.
Where packaging a handful of chips together is now routine, Intel has developed one advanced product that uses new technology to bundle a remarkable 47 individual chips, including some made by TSMC and other companies as well those produced in Intel fabs.
What makes chip factories different
Intel chips typically sell for hundreds to thousands of dollars each. Intel in March released its fastest microprocessor for desktop computers, for example, at a starting price of $739. A piece of dust invisible to the human eye can ruin one. So fabs have to be cleaner than a hospital operating room and need complex systems to filter air and regulate temperature and humidity.
Fabs must also be impervious to just about any vibration, which can cause costly equipment to malfunction. So fab clean rooms are built on enormous concrete slabs on special shock absorbers.
Also critical is the ability to move vast amounts of liquids and gases. The top level of Intel’s factories, which are about 70 feet tall, have giant fans to help circulate air to the clean room directly below. Below the clean room are thousands of pumps, transformers, power cabinets, utility pipes and chillers that connect to production machines.
The need for water
Fabs are water-intensive operations. That’s because water is needed to clean wafers at many stages of the production process.
Intel’s two sites in Chandler collectively draw about 11 million gallons of water a day from the local utility. Intel’s future expansion will require considerably more, a seeming challenge for a drought-plagued state like Arizona, which has cut water allocations to farmers. But farming actually consumes much more water than a chip plant.
Intel says its Chandler sites, which rely on supplies from three rivers and a system of wells, reclaim about 82 percent of the freshwater they use through filtration systems, settling ponds and other equipment. That water is sent back to the city, which operates treatment facilities that Intel funded, and which redistributes it for irrigation and other nonpotable uses.
Intel hopes to help boost the water supply in Arizona and other states by 2030, by working with environmental groups and others on projects that save and restore water for local communities.
How fabs are built
To build its future factories, Intel will need roughly 5,000 skilled construction workers for three years.
They have a lot to do. Excavating the foundations is expected to remove 890,000 cubic yards of dirt, carted away at a rate of one dump truck per minute, said Dan Doron, Intel’s construction chief.
The company expects to pour more than 445,000 cubic yards of concrete and use 100,000 tons of reinforcement steel for the foundations — more than in constructing the world’s tallest building, the Burj Khalifa in Dubai.
Some cranes for the construction are so large that more than 100 trucks are needed to bring the pieces to assemble them, Mr. Doron said. The cranes will lift, among other things, 55-ton chillers for the new fabs.
Patrick Gelsinger, who became Intel’s chief executive a year ago, is lobbying Congress to provide grants for fab construction and tax credits for equipment investment. To manage Intel’s spending risk, he plans to emphasize construction of fab “shells” that can be outfitted with equipment to respond to market changes.
To address the chip shortage, Mr. Gelsinger will have to make good on his plan to produce chips designed by other companies. But a single company can do only so much; products like phones and cars require components from many suppliers, as well as older chips. And no country can stand alone in semiconductors, either. Though boosting domestic manufacturing can reduce supply risks somewhat, the chip industry will continue to rely on a complex global web of companies for raw materials, production equipment, design software, talent and specialized manufacturing.
WASHINGTON — When the Cold War ended, governments and companies believed that stronger global economic ties would lead to greater stability. But the Ukraine war and the pandemic are pushing the world in the opposite direction and upending those ideas.
Important parts of the integrated economy are unwinding. American and European officials are now using sanctions to sever major parts of the Russian economy — the 11th largest in the world — from global commerce, and hundreds of Western companies have halted operations in Russia on their own. Amid the pandemic, companies are reorganizing how they obtain their goods because of soaring costs and unpredictable delays in global supply chains.
Western officials and executives are also rethinking how they do business with China, the world’s second-largest economy, as geopolitical tensions and the Chinese Communist Party’s human rights abuses and use of advanced technology to reinforce autocratic control make corporate dealings more fraught.
The moves reverse core tenets of post-Cold War economic and foreign policies forged by the United States and its allies that were even adopted by rivals like Russia and China.
“What we’re headed toward is a more divided world economically that will mirror what is clearly a more divided world politically,” said Edward Alden, a senior fellow at the Council on Foreign Relations. “I don’t think economic integration survives a period of political disintegration.”
“Does globalization and economic interdependence reduce conflict?” he added. “I think the answer is yes, until it doesn’t.”
Opposition to globalization gained momentum with the Trump administration’s trade policies and “America First” drive, and as the progressive left became more powerful. But the pandemic and President Vladimir V. Putin’s invasion of Ukraine have brought into sharp relief the uncertainty of the existing economic order.
President Biden warned President Xi Jinping of China on Friday that there would be “consequences” if Beijing gave material aid to Russia for the war in Ukraine, an implicit threat of sanctions. China has criticized sanctions on Russia, and Le Yucheng, the vice foreign minister, said in a speech on Saturday that “globalization should not be weaponized.” Yet China increasingly has imposed economic punishments — Lithuania, Norway, Australia, Japan and South Korea have been among the targets.
The result of all the disruptions may well be a fracturing of the world into economic blocs, as countries and companies gravitate to ideological corners with distinct markets and pools of labor, as they did in much of the 20th century.
Mr. Biden already frames his foreign policy in ideological terms, as a mission of unifying democracies against autocracies. Mr. Biden also says he is enacting a foreign policy for middle-class Americans, and central to that is getting companies to move critical supply chains and manufacturing out of China.
The goal is given urgency by the hobbling of those global links over two years of the pandemic, which has brought about a realization among the world’s most powerful companies that they need to focus on not just efficiency and cost, but also resiliency. This month, lockdowns China imposed to contain Covid-19 outbreaks have once again threatened to stall global supply chains.
The economic impact of such a change is highly uncertain. The emergence of new economic blocs could accelerate a massive reorganization in financial flows and supply chains, potentially slowing growth, leading to some shortages and raising prices for consumers in the short term. But the longer-term effects on global growth, worker wages and supplies of goods are harder to assess.
The war has set in motion “deglobalization forces that could have profound and unpredictable effects,” said Laurence Boone, the chief economist of the Organization for Economic Cooperation and Development.
For decades, executives have pushed for globalization to expand their markets and to exploit cheap labor and lax environmental standards. China especially has benefited from this, while Russia profits from its exports of minerals and energy. They tap into enormous economies: The Group of 7 industrialized nations make up more than 50 percent of the global economy, while China and Russia together account for about 20 percent.
Trade and business ties between the United States and China are still robust, despite steadily worsening relations. But with the new Western sanctions on Russia, many nations that are not staunch partners of America are now more aware of the perils of being economically tied to the United States and its allies.
If Mr. Xi and Mr. Putin organize their own economic coalition, they could bring in other nations seeking to shield themselves from Western sanctions — a tool that all recent U.S. presidents have used.
“Your interdependence can be weaponized against you,” said Dani Rodrik, a professor of international political economy at Harvard Kennedy School. “That’s a lesson that I imagine many countries are beginning to internalize.”
The Ukraine war, he added, has “probably put a nail in the coffin of hyperglobalization.”
China and, increasingly, Russia have taken steps to wall off their societies, including erecting strict censorship mechanisms on their internet networks, which have cut off their citizens from foreign perspectives and some commerce. China is on a drive to make critical industries self-sufficient, including for technologies like semiconductors.
And China has been in talks with Saudi Arabia to pay for some oil purchases in China’s currency, the renminbi, The Wall Street Journal reported; Russia was in similar discussions with India. The efforts show a desire by those governments to move away from dollar-based transactions, a foundation of American global economic power.
For decades, prominent U.S. officials and strategists asserted that a globalized economy was a pillar of what they call the rules-based international order, and that trade and financial ties would prevent major powers from going to war. The United States helped usher China into the World Trade Organization in 2001 in a bid to bring its economic behavior — and, some officials hoped, its political system — more in line with the West. Russia joined the organization in 2012.
But Mr. Putin’s war and China’s recent aggressive actions in Asia have challenged those notions.
“The whole idea of the liberal international order was that economic interdependence would prevent conflict of this kind,” said Alina Polyakova, president of the Center for European Policy Analysis, a research group in Washington. “If you tie yourselves to each other, which was the European model after the Second World War, the disincentives would be so painful if you went to war that no one in their right mind would do it. Well, we’ve seen now that has proven to be false.”
“Putin’s actions have shown us that might have been the world we’ve been living in, but that’s not the world he or China have been living in,” she said.
The United States and its partners have blocked Russia from much of the international financial system by banning transactions with the Russian central bank. They have also cut Russia off from the global bank messaging system called SWIFT, frozen the assets of Russian leaders and oligarchs, and banned the export from the United States and other nations of advanced technology to Russia. Russia has answered with its own export bans on food, cars and timber.
The penalties can lead to odd decouplings: British and European sanctions on Roman Abramovich, the Russian oligarch who owns the Chelsea soccer team in Britain, prevent the club from selling tickets or merchandise.
About 400 companies have chosen to suspend or withdraw operations from Russia, including iconic brands of global consumerism such as Apple, Ikea and Rolex.
While many countries remain dependent on Russian energy exports, governments are strategizing how to wean themselves. Washington and London have announced plans to end imports of Russian oil.
The outstanding question is whether any of the U.S.-led penalties would one day be extended to China, which is a far bigger and more integral part of the global economy than Russia.
Even outside the Ukraine war, Mr. Biden has continued many Trump administration policies aimed at delinking parts of the American economy from that of China and punishing Beijing for its commercial practices.
Officials have kept the tariffs imposed by Mr. Trump, which covered about two-thirds of Chinese imports. The Treasury Department has continued to impose investment bans on Chinese companies with ties to the country’s military. And in June, a law will go into effect in the United States barring many goods made in whole or in part in the region of Xinjiang.
Despite all that, demand for Chinese-made goods has surged through the pandemic, as Americans splurge on online purchases. The overall U.S. trade deficit soared to record levels last year, pushed up by a widening deficit with China, and foreign investments into China actually accelerated last year.
Some economists have called for more global integration, not less. Speaking at a virtual conference on Monday, Ngozi Okonjo-Iweala, director general of the World Trade Organization, urged a move toward “re-globalization,” saying, “Deeper, more diversified international markets remain our best bet for supply resilience.
But those economic ties will be further strained if U.S.-China relations worsen, and especially if China gives substantial aid to Russia.
Besides recent warnings to China from Mr. Biden and Secretary of State Antony J. Blinken, Commerce Secretary Gina Raimondo has said her agency would ban the sale of critical American technology to Chinese companies if China tried to supply forbidden technology to Russia.
In the meantime, the uncertainty has left the U.S.-China relationship in flux. While many major Chinese banks and private companies have suspended their interactions with Russia to comply with sanctions, foreign asset managers appear to have also begun moving their money out of China in recent weeks, possibly in anticipation of sanctions.
Mary Lovely, a senior fellow at the Peterson Institute for International Economics, said she did not expect China to “throw all in” with Russia, but that the war could still strain economic ties by worsening U.S.-China relations.
“Right now, there is great uncertainty as to how the U.S. and China will respond to the challenges posed by Russia’s increasingly urgent need for assistance,” she said. “That policy uncertainty is another push to multinationals who were already rethinking supply chains.”
At the Siemens Gamesa factory in Aalborg, Denmark, where the next generation of offshore wind turbines is being built, workers are on their hands and knees inside a shallow, canoe-shaped pod that stretches the length of a football field. It is a mold used to produce one half of a single propeller blade. Guided by laser markings, the crew is lining the sides with panels of balsa wood.
The gargantuan blades offer a glimpse of the energy future that Europe is racing toward with sudden urgency. The invasion of Ukraine by Russia — the European Union’s largest supplier of natural gas and oil — has spurred governments to accelerate plans to reduce their dependence on climate-changing fossil fuels. Armed conflict has prompted policymaking pledges that the more distant threat of an uninhabitable planet has not.
Smoothly managing Europe’s energy switch was always going to be difficult. Now, as economies stagger back from the second year of the pandemic, Russia’s attack on Ukraine grinds on and energy prices soar, the painful trade-offs have crystallized like never before.
Moving investments away from oil, gas and coal to sustainable sources like wind and solar, limiting and taxing carbon emissions, and building a new energy infrastructure to transmit electricity are crucial to weaning Europe off fossil fuels. But they are all likely to raise costs during the transition, an extremely difficult pill for the public and politicians to swallow.
unwinding efforts to shut coal mines and stop drilling new oil and gas wells to replace Russian fuel and bring prices down.
proposed a carbon tax on imports from carbon-producing sectors like steel and cement.
And it has led the way in generating wind power, especially from ocean-based turbines. Siemens Gamesa Renewable Energy, for example, has been instrumental in planting rows of colossal whirligigs at sea that can generate enough green energy to light up cities.
Europe, too, is on the verge of investing billions in hydrogen, potentially the multipurpose clean fuel of the future, which might be generated by wind turbines.
halted approval of Nord Stream 2, an $11 billion gas pipeline under the Baltic Sea that directly links Russia to northeastern Germany.
As Ursula von der Leyen, the European Commission president, said when she announced a plan on March 8 to make Europe independent of Russian fossil fuels: “We simply cannot rely on a supplier who explicitly threatens us.” The proposal calls for member nations to reduce Russian natural gas imports by two-thirds by next winter and to end them altogether by 2027 — a very tall order.
This week, European Union leaders are again meeting to discuss the next phase of proposals, but deep divisions remain over how to manage the current price increases amid anxieties that Europe could face a double whammy of inflation and recession.
On Monday, United Nations Secretary General António Guterres warned that intense focus on quickly replacing Russian oil could mean that major economies “neglect or kneecap policies to cut fossil fuel use.”
price of palladium, used in automotive exhaust systems and mobile phones, has been soaring amid fears that Russia, the world’s largest exporter of the metal, could be cut off from global markets. The price of nickel, another key Russian export, has also been rising.
Financial turmoil. Global banks are bracing for the effects of sanctions intended to restrict Russia’s access to foreign capital and limit its ability to process payments in dollars, euros and other currencies crucial for trade. Banks are also on alert for retaliatory cyberattacks by Russia.
Mr. Rasmussen and other executives added that identifying suitable areas for wind turbines and obtaining permits required for construction take “far too long.” Challenges are based on worries that the vast arrays of turbines will interfere with fishing, obstruct naval exercises and blight views from summer houses.
To Kadri Simson, Europe’s commissioner for energy, renewable energy projects should be treated as an “overriding public interest,” and Europe should consider changing laws to facilitate them.
“We cannot talk about a renewables revolution if getting a permit for a wind farm takes seven years,” Ms. Simson said.
Still, environmental regulations and other rules relating to large infrastructure installations are usually the province of countries rather than European Union officials in Brussels.
And steadfast opposition from communities and industries invested in fossil fuels make it hard for political leaders to fast-track energy transition policies.
In Upper Silesia, Poland’s coal basin, bright yellow buses display signs that boast they run on 100 percent electric, courtesy of a grant from the European Union. But along the road, large billboards mounted before the invasion of Ukraine by state-owned utilities — erroneously — blame Brussels for 60 percent of the rise in energy prices.
Down in the Wujek coal mine, veterans worry if their jobs will last long enough for them to log the 25 years needed to retire with a lifelong pension. Closing mines not only threatens to devastate the economy, several miners said, but also a way of life built on generations of coal mining.
“Pushing through the climate policy forcefully may lead to a drastic decrease in the standard of living here,” said Mr. Kolorz at Solidarity’s headquarters in Katowice. “And when people do not have something to put on the plate, they can turn to extreme populism.”
Climate pressures are pushing at least some governments to consider steps they might not have before.
German officials have determined that it is too costly to keep the country’s last three remaining nuclear power generators online past the end of the year. But the quest for energy with lower emissions is leading to a revival of nuclear energy elsewhere.
Britain and France say they plan to invest in smaller nuclear reactors that can be produced in larger numbers to bring down costs.
Britain might even build a series of small nuclear fusion reactors, a promising but still unproven technology. Ian Chapman, chief executive of the U.K. Atomic Energy Authority, said every route to clean energy must be tried if there is to be any hope of reaching net zero emissions in three decades, the deadline for avoiding catastrophic climate change. “We’ve got to do everything we possibly can,” he said.
In the short term, much of what the European Union is proposing involves switching the source of fossil fuels, and, in particular, natural gas, from Russia to other suppliers like the United States, Qatar and Azerbaijan, and filling up storage facilities as a buffer. The risk is that Europe’s actions will further raise prices, which are already about five times higher than a year ago, in a market where supplies are short in part because companies are wary of investing in a fuel that the world ultimately wants to phase out.
Over the longer term, Europe and Britain seem likely to accelerate their world-leading rollout in renewable energy and other efforts to cut emissions despite the enormous costs and intense disruptions.
“The E.U. will almost certainly throw hundreds of billions of euros at this,” said Henning Gloystein, a director for energy and climate at Eurasia Group, a political risk firm. “Once the trains have left the station, they can’t be reversed.”