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Draft order from Ukraine's Economy Ministry proposes a 30% increase in rail freight rates
The Ukrainian economy ministry announced over the weekend that it would be increasing rail freight tariffs by 30% on August 1st to help stabilize the financial position of the state railway Ukrzaliznytsia. The war against Russia is now in its fifth and final year. Railways are still a crucial part of Ukraine's logistic network, transporting both passengers and freight. The government is under pressure to reduce its debt because of increased spending on infrastructure and security. Ukrzaliznytsia's CEO Oleksandr P. Pertsovskyi said?this month the firm had to increase their tariffs this year by at least 45% in order to help restore its finances. The ministry stated in a statement that the implementation of the order would increase the financial capability of Ukrzaliznytsia to partially cover the funding gap in 2026. A higher rate would help reduce the company’s funding?shortfall by 2026, and partially cover its funding gap of 191.50 million hryvnias in 2026. Pertsovskyi stated that a 45% increase in tariffs would cover about half of the projected cash shortage for the company, which is $587 million. In the note, the ministry didn't specify if further tariff increases would be planned to reach the 45% threshold. Major shippers have opposed the proposed tariff increase. They said that it would threaten 300,000 jobs and force the closure of important enterprises. (Reporting and editing by Thomas Derpinghaus; reporting by Pavel Polityuk)
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Sources: China plans to build a second LNG terminal in China for Russian cargoes sanctioned by the United States
Three sources familiar with the situation said that China is building a second terminal to import liquefied natural gas from Russia's Arctic LNG 2 project. This will expand a route which has relied on only one facility so far. Sources say that the newly constructed Longkou LNG Terminal in eastern China's Shandong Province, operated by state pipeline company PipeChina, will be receiving Arctic LNG 2 cargoes. The move will provide a lifeline for the $21 billion project that is currently under sanctions. It will also help Moscow, as its gas exports have been affected by Europe's decision not to purchase any more and its oil sector has been put under pressure due to Ukrainian attacks. The second import terminal would allow China to receive larger volumes of Russian LNG sanctioned by the United States, while Arctic LNG 2, which is designed to produce 19,8 million metric tonnes a year, could be used as an additional export outlet. PipeChina and Novatek, the majority owners of Arctic LNG 2, did not respond to a comment request. PipeChina's Beihai Terminal in Guangxi has been the sole recipient of Arctic LNG 2 cargoes sanctioned by China. The facility received the first shipments of the Arctic LNG 2 project in August 2025, aboard the Arctic Mulan. According to Kpler estimates and ship tracking data, Beihai received 41 cargoes of LNG, or 2.6 millions tons, from Arctic LNG 2. Many were delivered via two floating storage facilities in Russia. Beihai has also received 3 LNG cargoes at Russia's Portovaya Terminal. One source said that China needed an additional terminal in order to handle more cargoes sanctioned. They declined to give their names as they were not authorized to speak to the media. China, the world's largest LNG buyer, bought 7.57 millions tons of Russian LNG last year, according Chinese customs data. Sources said that Longkou was a logical choice because it, like Beihai is operated by PipeChina, and is located closer to the Koryak floating?unit, in Russia's Far East, where Arctic LNG2 cargoes are reloaded and stored. A senior industry executive stated that Longkou had completed its mechanical construction phase and would be ready before October to meet peak winter demand. The Longkou terminal in Yantai, on the coast, has a capacity to receive 5 million tons per year, compared to 6 million tons for Beihai. Fourth source said that the Dalian LNG terminal in northeastern China, owned by PipeChina, is being considered as a possible future receiving point. Novatek recently increased hiring in China, according to a different source. Novatek cut its cargo prices between 30 and 40% in August 2025, according to a report last year. This was done to lure Chinese buyers despite the sanctions. Reporting by Marwa Rashed in London, Emily Chow in Singapore and Aizhu Chan in Singapore. Editing by Mark Potter.
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Singapore Airlines plans debut 5-year dim sum bond
Singapore Airlines announced on Monday that it plans to sell its first benchmark five-year dim sum bond, a offshore yuan debt issued outside of mainland China. Four banks have been hired to help arrange the deal. The benchmark size of offshore yuan bonds is usually 1 billion yuan (147.6 millions dollars), which means they are large enough to be traded easily by investors. Singapore Airlines hasn't revealed the size of its planned expansion. The airline?said that it tapped Bank of China, DBS HSBC Standard Chartered and Standard Chartered to help with the bond sale. ? The decisions were reported earlier on Monday based on a document. The company said in an email that it had been "monitoring the offshore renminbi market (CNH). We view current conditions as being favourable for the issuance of CNH bonds." CNH is yuan that's traded outside of mainland China. Singapore Airlines announced that the planned deal would be a five-year benchmark CNH bond, under its existing S$10 Billion ($7.7 Billion) medium-term notes programme. The proceeds will be used to finance aircraft purchases, related payments, corporate working capital, and existing debts. Singapore Airlines has said that execution will take place in two days. The final coupon size and interest rate - paid to investors - will be determined at the pricing. Singapore Airlines said that it regularly reviewed its funding needs against its cash position. "We have regular access to capital markets, and we tap them whenever conditions are favorable." The statement said that more details would be released in an announcement by the Singapore Exchange once the transaction has been priced. Documents seen earlier by us on Monday indicated that the airline would be holding a global investors call?on Monday. Document showed that the deal could be launched as early as Tuesday depending on'market conditions. In January, the airline sold S$500,000,000 of 10-year notes.
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Wall Street Journal, June 22,
These are the most popular?stories from the Wall Street Journal. ? This information has not been verified and we cannot vouch for their accuracy. China has added 10 defense contractors and two rare earth producers to its export control list. Pakistan and Qatar, who are acting as mediators in the talks between Iran and the U.S., have confirmed that the two countries had agreed to establish a'mechanism to ensure the termination of military operations?in Lebanon. Castlelake, a U.S. investment company, said that easyJet's board had rejected its third 4,74 billion pound ($6.26 billion),?takeover offer. The firm encouraged shareholders to seriously consider the proposal as it sought to privatize the airline. Donald Trump, the U.S. president, expressed frustration with the problems at the Lincoln Memorial Reflecting Pool. He said that multiple people were arrested and that the pool may need to be drained in order to make repairs. After a campaign that centered on his promise to dismantle the armed groups,?far-right 'populist'?Abelardo de la Espriella narrowly won Sunday’s presidential election in Colombia with 49.6%. SoftBank-backed Chinese robotics firm Coowa is preparing to file for a Hong Kong IPO within the next 2 to 3 months. ($1 = 0.7571 pound) (Compiled from Bengaluru Newsroom)
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Investors weigh U.S. Iran talks as they muzzle European shares
Investors waited for any signs of progress in the latest round of U.S. and Iran negotiations to resume shipping through the Strait of Hormuz - a vital artery for the global oil trade. Brent Crude prices fell 1.6% and traded below $80 a barrel after mediators Qatar and Pakistan announced that Washington and Tehran agreed on a roadmap and measures to protect shipping through the Strait of Hormuz. Tehran declared the waterway closed on Sunday, casting doubt on its sustainability. By 0711 GMT, the pan-European STOXX 600 Index was up 0.05% at 635.92. Tech stocks led the sectoral gains with a 1.2% rise. Chipmaker Infineon gained?4.5%, and semiconductor equipment manufacturer Aixtron gained?2.3%. These gains were in line with those of Asian equity markets. M&A activity saw shares of?easyJet rise 2.3% following a US investment firm's?public offering?of PS4.74 billion ($6.26billion). Danone shares fell 0.4% following the announcement that the French food giant would acquire Australian company MADE Group for an undisclosed sum. Babcock, a UK defence and engineering group, dropped 3.3% after a sharp drop in its annual profit due to a PS140m frigate charge.
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Experts say China's efforts to use green energy in AI projects face hurdles.
China's efforts to increase renewable energy for its rapidly expanding AI data centre sector are running into obstacles. Industry experts warn that it is difficult to forecast peak demand and grid operators do not want to take on additional risk. In China's work report for 2026, released earlier this summer, the government highlighted that ensuring reliable electricity is a priority. It also pledged a stronger integration of computing infrastructure with power supply networks. An ambitious plan is a key component of this effort to direct more green?electricity into the rapidly expanding data centre industry. The authorities aim to have renewables supply four-fifths (from just 11%) of the total electricity consumption in the data centre sector by 2030. According to Pei Shapeng, director of the Chinese power company State Power Investment Corp., China's data centers are expected to increase their electricity consumption by 300 billion to 500 billion kilowatt hours between 2026 to 2030. This represents 18% of overall growth in total demand. The estimate's lowest range is equivalent to the UK?s entire annual electricity consumption. Despite the booming demand from China's data centers, this sector is not a good fit for green energy providers, especially compared to traditional energy-intensive industries like aluminium smelting. This is because its peak demands are harder to predict. Pei, speaking at a conference on the industry in Beijing last Thursday, said that "at least for now they don't appear to be very versatile (in managing energy demand)." We understand that data centres cannot adjust their power consumption loads very much. Once GPUs have been purchased, operators will want to use them quickly and intensively. He said that the move to increase green power usage by data centres was more about reducing emissions than it was about lowering electricity prices. Grid operators may also be reluctant to adopt a wider range of "direct green-power connections" to data centres. They are concerned that electricity sales will decline, and it would become harder to recover large investments made in transmission and distribution infrastructure. Experts say that China's fast-tracked rollout of data centres has already begun to strain the power sector, increasing average and peak grid loads and forcing operators balance rising demand with reliability risks. Wang Zelin is deputy director of State Grid Jibei Electric Power Research Institute. He said that if 15% of the power consumption load can be reduced, this will reduce the capacity expansion pressures on the grid in the next 3 to 5 years. (Reporting and editing by Eduardo Baptista and Che Pan; Miyoung Kim, Shri Navaratnam and Miyoung Kim)
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Fuel relief from the Iran deal may keep airline ticket prices high.
Oil prices are expected to fall after the interim U.S. Iran peace agreement, but it is unlikely that passengers will see any immediate relief. Carriers may be able to maintain fares above those of pre-war. The U.S. market is the most obvious example. Fuel costs have risen this year, but fare increases are still behind. Domestic seat growth is also limited. This gives airlines the opportunity to use lower fuel costs to rebuild margins, rather than reverse recent price hikes. U.S. Jet Fuel Spot Prices were $2.85 per gallon on 17th June, down from a high of $4.88 in early April. According to calculations based on fuel consumption, a decline that large would reduce the U.S. airlines' annual fuel bill by over $40 billion. FARES STILL LAG FUEL As jet-fuel prices rose, U.S. Airlines raised ticket prices, bag fees, schedules and reduced them, but these steps only offset part of the increase in fuel costs. Jet fuel prices increased three times faster than airfares between January and May, according to industry data. Deutsche Bank estimates that U.S. carriers will only recover 60 cents for every dollar more spent on fuel - $14.4 billion of higher revenues against $24.1 billion of higher fuel costs. Alaska Air reported that it would recover about one-third of the fuel cost increase. Delta Air Lines and United Airlines, as well as American Airlines, estimated second-quarter recapture to be between 40% and 50%. JetBlue Airways, Frontier Group and other airlines expect to recover less that half. United CEO Scott Kirby said that his airline is getting closer to recouping fuel costs through price: "We're going to recover 100% by the end the year." Raymond James data shows that domestic average fares were up by 34.1% compared to a year ago as of June 8th. Fuel prices are falling, so the question that needs to be answered is whether or not airlines can maintain their recent increases in fares. Conor Cunningham, Melius Research analyst, said that the ability to maintain prices is crucial. Lower gasoline prices may ease consumer pressure on high fares. Uneven Pass-Through Fare relief outside the U.S. is likely to be uneven. Jet fuel prices will not fall immediately because crude oil prices are still low. Until jet fuel prices drop to levels seen at the beginning of the year, airlines may keep their fares steady or even increase them if demand permits, according to Dudley Shanley. Europe could see a split. Ruairi Cullinane, RBC analyst, said that long-haul fares will be more lenient because airlines are more successful in passing on fuel costs on these routes. Short-haul prices may be firmer, if bookings and demand are supported by the peace agreement. Analysts at HSBC said that China's three largest airlines are facing weak pricing power, and falling aircraft utilization. Hong Kong's Cathay Pacific, however, is in a better position, as higher fares and cargo revenues, along with premium demand, could offset fuel costs. Middle East traffic was disrupted by the war, which is why it's the only exception. Aviation analyst John Strickland said that some airlines could use promotions to gain back traffic. However, fuel is still too expensive to offer widespread discounts. He added that United Arab Emirates airlines could be more aggressive, and get stronger government support. Earnings Before Discounts The length of time that prices remain low will determine how much benefit airlines receive. Fuel bills are based on purchases made over time and not spot prices. Even after the most recent declines, jet fuel costs 54% more than it did a year earlier, according to the International Air Transport Association. Southwest Airlines Chief Operating Office Andrew Watterson summarized the pressure. Watterson replied, "When is fuel going to drop?" when asked by a reporter about Southwest's return to its pre-pandemic profit margins. As airlines attempt to rebuild their earnings, there is little incentive to reduce fares. Jefferies estimates that each?5% decrease in its $3 per gallon fuel cost forecast for 2027 would increase projected earnings by 10 to 15% for Delta and Southwest, and as much as 50% for American Airlines. No Broad Fare War In previous U.S. fuel cycle, falling oil prices would often trigger a race to increase capacity that drove fares down. These conditions do not exist in most cases. The 'risk' of a wide-scale domestic fare war is being limited by aircraft delivery delays, tight capacity at airports and weaker low cost carriers. Industry data shows that U.S. domestic airlines seats are expected to increase by just 0.4% in the third quarter compared to 4.6% before the latest Middle East tensions. J.P. Morgan analysts say that limited aircraft deliveries, and the pullback of budget carriers in the United States reduces the risk of "meaningful" capacity creep. This gives airlines an easier time than usual to maintain current pricing. Fuel prices may not be as important to passengers than the demand for fuel. Shanley stated that the power of the consumer is a major factor. Reporting by Rajesh Singh in Chicago, Alessandro Parodi and Joanna Plucinska from London; Additional reporting in Hong Kong by Julie Zhu; Editing by Jamie Freed).
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Qatar brings LNG tankers into Hormuz despite shipping slowdown
Shipping data revealed that four liquefied?gas tanks controlled by Qatar headed into the Strait of Hormuz despite a drop in?ship traffic following Iran's announcement over the weekend that the waterway had been closed again. Shiptracking data by analytics firm Kpler revealed that the tankers - Wadi Al Sadd, Mekaines Al Sadd, and Mesaimeer – entered the strait via Iran for the first since the U.S./Israeli war against Iran began. QatarEnergy's LNG exports, which have been severely curtailed since the beginning of the war on February 28, didn't immediately respond to an inquiry for comment. LSEG data shows that the dry bulk vessel Summit Success, which is registered in Marshall Islands and sails under its flag, also entered Gulf waters on Monday. Kpler data revealed that five vessels crossed the Strait of Gibraltar on Sunday. This is down from 26 ships seen a day before. Three Very Large Crude Carriers were among them, each carrying 2,000,000 barrels of Saudi crude oil and fuel oil. One of these vessels was headed to Japan. It is possible that more ships could be plying the Strait with their transponders turned off. Iran lifted its effective Blockade of Hormuz after agreeing to extend a ceasefire in April for 60 days with the United States, to allow peace negotiations. But Tehran's Islamic Revolutionary Guard Corps declared the waterway closed once again on Saturday, as retaliation for Israeli attacks in Lebanon. OIL EXPORTS MOVING U.S. Central Command reported that 55 merchant ships with over 17 million barrels for global markets transited through the strait Saturday. The data revealed that three VLCCs were carrying crude oil from the United Arab Emirates (UAE), Kuwait, and Iraq and three tankers were carrying various products of oil. The data shows that there were 13 ships, including two VLCCs. Hamid Bovard from the National Iranian Oil Company told state television on Sunday that over 25 million barrels of Iranian crude oil had passed through the virtual blocking line since Monday. Gulf producers Abu Dhabi National Oil Co. and Kuwait Petroleum Corporation have issued tenders for selling crude oil with the option of loading it from within or outside the Strait of Hormuz. Seoul's Ministry of Oceans and Fisheries announced on Monday that two?vessels operated South?Korea passed through the strait following the U.S. and Iran signing their interim peace agreement last week. The ministry did not name the vessels. Kpler data and LSEG data showed that two ADNOC controlled?LNG tanks were delivering cargoes on Monday to India, after having recently exited the strait. Data reveals that the Al Hamra tanker discharged at Ennore LNG Terminal, while the Mubaraz tanker would be offloading its cargo on the Kochi terminal at the end of June. The data showed that both tankers had been seen last in ballast, east of the strait, in late May or early June. They then reappeared on the ship tracking data at the weekend with their cargos loaded off the coast of India. ADNOC didn't immediately respond to an inquiry for comment. Al Hamra has completed two "dark voyages" out of Hormuz. Reporting by Florence Tan and Emily Chow; Editing by Stephen Coates, Sonali Paul and Sonali Paul
Saudi Arabia is the top buyer of Russian fuel oil by sea in May, according to data?
Data from traders and LSEG revealed that Russia's seaborne fuel oil and vacuum -gasoil exports fell by about 6% on a month-to-month basis to 3.2 -million metric tonnes in May. This was due to Ukrainian drone strikes against infrastructure which curtailed shipments and output.
Saudi Arabia remains a major destination for fuel oil, VGO and air conditioning products, as the high temperatures of summer have boosted demand. However, calculations based on data show that shipments to Saudi Arabia were down 17% since April, at 1.23 million tonnes. The increase in exports was attributed to disruptions caused by the Iran War, which changed flows and boosted demand for crude oil. Also, the temporary lifting of U.S. restrictions on Russian oil products also contributed. Analysts say that Saudi Arabia will burn more imported fuel oil this summer because of the loss of natural gas from shut oilfields after the Iran War curbed oil exports.
Since the European Union's full ban on Russian oil products came into effect in February 2023, the Middle East and Asia are the main markets for Russia's VGO and fuel oil.
LSEG data shows that Russian fuel exports to Singapore and Malaysia - major hubs for bunkering and storing - fell 39% a month on a monthly basis in May, to around 0.4 millions tons.
Nearly 140,000?tons VGO and fuel oils loaded at Russian ports last month, were bound for transfers near Port Said, Egypt. The final destination is unclear.
Shipping data shows that exports to India, which was once one of Russia's biggest markets for fuel oil, dropped by 28%, to 120,000 tons.
All data is based upon the departure date of the cargo. (Reporting and Editing by Alexander Smith).
(source: Reuters)