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Explainer: What's happening in the row between the EU and AstraZeneca?

The global competition for Covid-19 vaccines is putting the EU and Britain on a post-Brexit collision course.

THE EU IS currently demanding that pharmaceutical firm AstraZeneca make up delays of its Covid-19 vaccine by supplying doses from its UK factories.

Both the European Union and former member Britain insisted the Anglo-Swedish pharmaceutical company uphold contractual delivery promises to each of them – even as the company said there was not enough to go around.

“The 27 European Union member states are united that AstraZeneca needs to deliver on its commitments in our agreements,” EU health commissioner Stella Kyriakides told reporters in Brussels.

In London, Prime Minister Boris Johnson said he expected AstraZeneca to honour its commitment to deliver two million doses a week to the UK from its plant in north Wales, where a bomb scare paused production for a few hours yesterday.

“All I can say is that we’re very confident in our supplies, we’re very confident in our contracts and we’re going ahead on that basis,” Johnson told a news conference.

Tensions between the EU and Britain remain high in the wake of Brexit, with British traders and consumers suffering as they cope with higher costs and bureaucracy outside of the European single market. But how did the bloc and Britain set itself on a post-Brexit collision course over a vaccine? 

Contract tracing 

The row was triggered last Friday when AstraZeneca informed the EU that it could only supply a quarter of the vaccine doses it had promised for the first three months of this year. Ever since, EU officials have been determined to hold the pharmaceutical company to its contract,  the text of which has been confidential up until this point. 

The delay infuriated the European Commission, which is planning this week to add the AstraZeneca vaccine to two others it has already authorised – from BioNTech/Pfizer and Moderna – to help reach a goal of inoculating 70% of EU adults by the end of August.

Tension escalated when AstraZeneca CEO Pascal Soriot on Tuesday gave an interview saying his company was prioritising supplies to Britain, which signed its contract three months before the EU did, and was required only to make a “best-effort” to supply the bloc.

“It’s a best effort. Basically, we said we’re going to try our best, but we can’t guarantee we’re going to succeed. In fact, getting there, we are a little bit delayed.”

EU health commissioner Kyriakides said this claim was “neither correct nor is it acceptable”.

“We reject the logic of first-come, first-served. That may work at the neighbourhood butcher’s but not in contracts, and not in our advanced purchase agreements,” she said.

The tensions eased slightly after Soriot spoke with the EU’s vaccines team last night, with both sides saying the meeting had been “constructive”.

“We have committed to even closer coordination to jointly chart a path for the delivery of our vaccine over the coming months as we continue our efforts to bring this vaccine to millions of Europeans at no profit during the pandemic,” an AstraZeneca spokesman said.

Despite this progress, Kyriakides complained afterwards of a “continued lack of clarity on the delivery schedule”, saying in a tweet: “The EU remains united and firm contractual obligations must be met.”

Earlier yesterday she had noted that AstraZeneca had four operating vaccine plants in Europe – two in Britain and two in the EU – and the contract made no distinction between them in terms of the contractual volumes to be supplied.

EU officials briefing journalists on condition of anonymity stressed the bloc had allocated €336 million to AstraZeneca to permit it to expand production.

Explanations from the company for the delay had varied and the main one, talking about a “yield problem” in one of the EU-based plants, was unsatisfactory, the officials said.

“We are not told what the real problem is,” one of the officials said. As AstraZeneca’s other plants – notably in the UK – were unaffected, “their story is slightly inconsistent”.

Throwing jabs  

The public dispute between AstraZeneca and the EU has raised concerns about vaccine nationalism, as countries desperate to end the pandemic compete to make sure they obtain as many of the precious vaccine shots as possible.

The EU, which has 450 million citizens and the economic and political clout of the world’s biggest trading bloc, is lagging badly behind countries such as Israel and Britain in rolling out coronavirus vaccine shots for its healthcare workers and most vulnerable people.

Should AstraZeneca start diverting vaccine supply from the two UK plants, that could jeopardise Johnson’s commitment to have 15 million Britons vaccinated by mid-February.

Already, thanks mainly to the AstraZeneca jab, Britain is one of the leading countries for the speed of its vaccination rollout – doing so at five times the rate of EU member states collectively.

A sudden slowdown in those doses would be dramatic, especially as Britain has suffered the highest death toll from Covid-19 of any European country and Johnson is counting on the vaccinations to stem deaths.

UK Minister Michael Gove said this morning that there would be no interruption to UK vaccine supplies from AstraZeneca after the EU demanded doses from ‘British plants’.

Pressed on whether the government would allow vaccines to go to the EU, he said: “No, the critical thing is we must make sure that the schedule that has been agreed and on which our vaccination programme has been based and planned goes ahead.

“It is the case that the supplies that have been planned, paid for and scheduled should continue, absolutely. There will be no interruption to that.”

In response, EU health commissioner Stella Kyriakides rejected the logic of first come first served and said the contract signed with AstraZeneca, which worked with Oxford University on its vaccine, contains two factories in the UK.

“There is no hierarchy of the factories,” she said.

“You are aware in the contracts there are four factories listed but it does not differentiate between the UK and Europe.

“The UK factories are part of our advance purchase agreements and that is why they have to deliver,” she added.

The EU says it has invested hundreds of millions of euros in helping the drugmaker boost its production capacity but Soriot said that the UK has done the same for manufacturing in Britain, so the EU will have to wait its turn.

The state of play has fuelled growing concerns that bilateral deals between wealthier governments and coronavirus vaccine manufacturers could hike prices and limit supply in some regions.

South African President Cyril Ramaphosa on Tuesday accused rich countries of bulk-buying the vaccines and hoarding them to the detriment of others.

Addressing the all-virtual 2021 World Economic Forum, Ramaphosa said low- and middle-income countries were being sidelined by wealthier nations able to acquire “up to four times what their population needs”.

The WHO and its official vaccine coalition Gavi have set up a mechanism to distribute vaccines to poorer countries, but not a single dose has yet been administered.

The programme is lacking the billions of dollars needed to achieve the goal of providing doses to 20 percent of the population of target countries by the end of the year.

“Vaccine nationalism will only perpetuate the disease and prolong the global recovery,” WHO chief Tedros Adhanom Ghebreyesus said previously.

“It’s in every country’s best interest. We sink or we swim together.”

What does all this mean for Ireland? 

As part of the vaccine rollout plan, Ireland signed up to six advance purchase agreements – with Pfizer, Moderna, AstraZeneca, Jansen, Sanofi and CureVac. Around 3.3 million doses of the AstraZeneca vaccine were ordered.

If the EMA agrees to grant conditional marketing authorisation to the AstraZeneca vaccine this Friday, it paves the way for its rollout in Ireland.  But that rollout here is set to be lower than initially expected due to the company’s unexpected delay in delivering millions of doses of its Covid-19 vaccine to EU member states.  

However, if approved tomorrow, Ireland will receive a supply of the AstraZeneca vaccine “within the expected range” for February.

Health Minister Stephen Donnelly acknowledged that delivery of the vaccine in March is set to be “considerably lower than what was originally stated by the company” and has rowed back on commitments to have the entire country vaccinated by September. 

“I said September — September is absolutely still the aspiration. It’s not a promise,” he said on Today With Claire Byrne on RTÉ Radio 1.

“If the vaccines come through that we have advanced purchased and if they come in on schedule, then it is reasonable to think that by September every adult could be vaccinated, but with all of those very serious caveats,” he said. 

Donnelly told the Dáil today that as of last night, AstraZeneca was still unable to state how many doses it might be shipping from mid-March.

Ireland was due to get 600,000 doses of the Oxford-AstraZeneca vaccine in the first quarter of the year. This could fall to half that number in the first quarter, going by reports of the confidential deal.

No EU member state yet knows how many AstraZeneca doses it will receive this quarter, Donnelly said.

- With reporting from AFP

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    Mute Cosmos20202020
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    Jan 28th 2021, 12:14 PM

    If AZ won’t publish the contract (when EU are willing to) then that tells you who is trying to hide something.

    292
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    Mute Carol Cunningham
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    Jan 28th 2021, 1:14 PM

    @Cosmos20202020: the EU hasn’t even approved the vaccine yet. Their own fault for delaying on this and the UK funded this vaccine to be developed so why should they not look after themselves first. We cannot be hypocrites here

    118
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    Mute D. Memery
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    Jan 28th 2021, 1:25 PM

    @Carol Cunningham: Read the article, the EU also funded the research and production capacity. In light of the joint funding then both contracts need to take a proportionate hit

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    Mute Eugene Norman
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    Jan 28th 2021, 1:42 PM

    @Carol Cunningham: the EU delay on approval has nothing to do with AZ failing here. They didn’t even say that. Why do you ( the Sun or Daily Mail no doubt). AZ are contracted for 100M and that was what they should have produced.

    43
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    Mute William Tallon
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    Jan 28th 2021, 12:37 PM

    This reads more like a PR piece for the EU rather than a detailed explanation. ‘Big Pharma/Brits bad, EU good…’ If you check out other sources you’ll find there’s a lot more going on than is outlined here.

    127
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    Mute Brendan Greene
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    Jan 28th 2021, 12:45 PM

    @William Tallon: a purely factual point is that the Commissioner says that all four production plants were to be involved for the EU order. That would be in the contract.
    The fact that GB is to be supplied in part from Europe is an indication that there is no geographical specification in the contact.

    85
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    Mute William Tallon
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    Jan 28th 2021, 2:11 PM

    @Brendan Greene: My comment was purely in relation to the nature of what I consider to be a one-sided piece that claims to be an ‘explainer’. I didn’t comment on the rights and wrongs of this particularly unseemly row. My point is that the situation is a lot more complex than is outlined here. As I’ve said check out the story from a variety of sources and you’ll get a far clearer picture of what’s really going on and realise that some facts aren’t exactly factual when it comes to vested interests using them to support their claims…

    25
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    Mute Gordon Larney
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    Jan 28th 2021, 12:11 PM

    They made a promise that they couldn’t keep, but took the money. The only difference between this and only fools and horses, is the cost of the suits worn at the negotiations.

    231
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    Mute Steve Creaton
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    Jan 28th 2021, 12:56 PM

    Dutch taking away truckers sandwiches and now the EU wants AZ to take from the UK’s production. The UK government, Oxford and AZ produced this vaccine. The UK government has a specific contract saying that the UK supply chain is for the UK only. Why would the UK go out of its way to provide vaccines at the cost of the 90% of pop not yet vaccinated to the EU when its their fault. They have also gone out of their way to rubbish AZ, gone out of their way to make Brexit and trade as awkward as possible. Gone out of their way to stir up tensions within the UK devolved administrations. This is the EU’s failure. Not AZ’s and certainly not the UK’s

    111
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    Mute Paul Furey
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    Jan 28th 2021, 1:01 PM

    @Steve Creaton: then why would a UK company sign a contract and then break the terms…..oh wait….a UK company!!! Say no more.

    108
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    Mute Steve Creaton
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    Jan 28th 2021, 1:04 PM

    @Paul Furey: We don’t know the terms? The only terms that are certain are the ones between the UK and AZ as they have been broadcast.

    37
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    Mute Vonvonic
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    Jan 28th 2021, 1:05 PM

    @Steve Creaton: Gone out of their way to make BREXIT awkward? The Brits, led by the Tories over there, and the unionists over here have been an absolute nightmare. Ye live in an absolute fantasy world.

    60
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    Mute Paul Murphy
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    Jan 28th 2021, 1:49 PM

    @Steve Creaton: The EU paid 350million to AZ to fund development of the vaccine. Some how I reckon that gives them legal rights to access regardless of where the vaccine is manufactured

    40
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    Mute larry duff
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    Jan 28th 2021, 1:57 PM

    @Paul Furey: your talking through your hole,you really need to read up on the true facts not just what you want to believe it’s out there go find it

    21
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    Mute Vonvonic
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    Jan 28th 2021, 2:00 PM

    @larry duff: You could enlighten us a little.

    9
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    Mute Paul Furey
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    Jan 28th 2021, 2:25 PM

    @larry duff: hurry up. We’re waiting…..

    11
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    Mute Frank Carty
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    Jan 28th 2021, 4:15 PM

    @Steve Creaton: I Dont see how the Dutch enforcing EU law by removing sandwiches of UK lorry drivers has anything to do with this. Astrazeneca entered into a contract with the EU, and Astrazeneca can no longer meet their end of the contract. I can see this ending in court for breach of contract.

    16
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    Mute Mike Kelly
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    Jan 28th 2021, 7:35 PM

    @Steve Creaton: you are reading to many British newspapers. the U.K. contract has not been published and Europe was told no party I.e the U.K. had a priority clause

    5
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    Mute Dan Jacobson
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    Jan 28th 2021, 8:59 PM

    @Steve Creaton: There’s no point in trying to rationalize with Paul Furey and the other extremists here. Just sit back and enjoy their grinding of teeth.

    6
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    Mute TonyB
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    Jan 28th 2021, 12:29 PM

    The UK is a competitor, for everything. Why is the EU surprised?

    55
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    Mute Brendan Greene
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    Jan 28th 2021, 12:34 PM

    @TonyB: the issue is AZ’s behaviour not that of Boris and Co. If AZ have nothing to hide they should agree to publish contracts.

    107
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    Mute Hugh Gallagher
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    Jan 28th 2021, 12:17 PM

    Why is there no word of Pfizer giving priority to the uk because theyre paying more for their doses.

    48
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    Mute Bob Dalchan
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    Jan 28th 2021, 12:49 PM

    Pure British greed as usual! They still think they’re living in Victorian times.

    72
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    Mute Steve Creaton
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    Jan 28th 2021, 1:10 PM

    @Bob Dalchan: silly comment.

    75
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    Mute Vonvonic
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    Jan 28th 2021, 1:57 PM

    @Steve Creaton: Kinda true though.

    36
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    Mute Robert Preston
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    Jan 28th 2021, 6:34 PM

    @Bob Dalchan: OF FFS educate yourself .

    8
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    Mute Vonvonic
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    Jan 28th 2021, 12:23 PM

    The scramble for vaccines will pour shame on the human race. Absolutely no doubt about it. There was a theory in the 60s that an invasion of infriendly aliens would unite the human race in a common cause. The COVID is proving that theory wrong. Sickening.

    68
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    Mute Vonvonic
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    Jan 28th 2021, 12:23 PM

    @Vonvonic: unfriendly

    8
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    Mute Jane Alford
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    Jan 28th 2021, 12:32 PM

    I doubt the vaccine will survive the 3 day delays in getting trucks into France from the UK…

    36
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    Mute Tom O'Hanlon
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    Jan 28th 2021, 12:31 PM

    What are the EU going to do about it especially after Grove said that Astra UK won’t supply EU for some time.

    26
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    Mute Jim Buckley Barrett
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    Jan 28th 2021, 1:12 PM

    @Tom O’Hanlon: sue them. They also have factories in the EU which are now under investigation.

    41
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    Mute Mick Tobin
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    Jan 28th 2021, 12:47 PM

    - “Soriot said that the UK has done the same for manufacturing in Britain, so the EU will have to wait its turn.”

    I wouldn’t be surprised if the British govt bribed Soriot or pressured him in another way, since it is in their political interest to put the EU to shame.

    But since it was the European Commission that stopped individual member states from signing vaccine contracts early, this affair could prove enough for the European Parliament to send the commission home. This stuff is serious enough for heads to roll, although I doubt parliament would use the nuclear option in the middle of a crisis.

    25
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    Mute Ima Bored
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    Jan 28th 2021, 1:07 PM

    @Mick Tobin: The UK Bribe a Frenchman that’s ridiculous.. ha ha

    19
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    Mute Steve Creaton
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    Jan 28th 2021, 1:02 PM

    Gove and UK government have said no.

    ************************************
    The EU has demanded that UK-made jabs are diverted to mainland Europe to fulfil contractual obligations.

    AstraZeneca has previously said it could deliver only a fraction of the doses between January and March that it had promised to the bloc, blaming production issues at EU plants for a reported 50 million-dose shortfall.

    However, they have both pledged to work together to resolve the crisis.

    The AstraZeneca vaccine, developed with Oxford University, has not yet been approved by the EU, although this is expected on Friday.

    What’s the problem with the EU’s vaccine programme?
    How will the UK vaccinate millions of people?
    Cough, fever or loss of smell: Could it be Covid?
    Mr Gove said: “We must make sure that we continue with the effective acceleration of our vaccination programme. That relies on the supply schedule that has been agreed to be honoured. That’s the first and most important thing.

    “But secondarily I’m sure we all want to do everything possible to make sure that as many people in countries which are our friends and neighbours are vaccinated and I think we best achieve that through dialogue and co-operation and friendship,” he told BBC Radio 4′s Today programme.

    Pressed on whether the government will allow vaccines to go to the EU, he said: “No, the critical thing is we must make sure that the schedule that has been agreed and on which our vaccination programme has been based and planned goes ahead.

    23
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    Mute Vonvonic
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    Jan 28th 2021, 1:14 PM

    @Steve Creaton: Gove has no friends. The man is doing untold damage to Britains future. You reap what you sow.

    37
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    Mute Frank Carty
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    Jan 28th 2021, 4:20 PM

    @Steve Creaton: it’s not Gove’s decision to make, unless he also works for Astrazeneca. If the UK government gets involved, what’s to stop the EU getting involved to stop Pfizer vaccines bound for the UK leaving Belgium?

    9
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    Mute Dave Thomas
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    Jan 28th 2021, 12:29 PM
    17
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    Mute thesaltyurchin
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    Jan 28th 2021, 1:09 PM

    Buy sterling.

    14
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    Mute Gwen Murphy
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    Jan 28th 2021, 12:23 PM

    What an evil looking man! Villan in “James Bond” comes to mind

    22
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    Mute Vonvonic
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    Jan 28th 2021, 12:28 PM

    @Gwen Murphy: lol. From the good old days when villains were just born evil.

    10
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