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Maersk will return to Red Sea route once conditions permit, CEO says
Vincent Clerc, CEO of Maersk Shipping Company, said that the company will resume its navigation through the Suez Canal and Red Sea as soon as the conditions permit. Maersk began diverting ships away from the Gulf of Aden, Red Sea and towards the southern tip of Africa after a Yemeni Houthi militant attack on one of their ships. The Houthi militants attacked the ship in solidarity with Palestinians living in Gaza. Clerc said that the company was encouraged by the progress of the Gaza peace process, which will allow for the freedom of navigation of the Bab al-Mandab Strait, linking the Gulf of Aden to the Red Sea. This was revealed in a press conference held in Egypt with the Chairman of the Suez Canal Authority, Osama Rahbie. Clerc stated that Maersk would take action to resume the East West Corridor via the Suez Canal, the Red Sea and eventually normalise the transit. Clerc said that Maersk would resume navigation via the Red Sea as soon as the conditions permit, and with safety of the crew as the top priority. The Suez Canal Authority signed a strategic agreement with Maersk during a press conference.
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Sources: Russia is weighing up how to support Russian Railways, which has a debt of $51 billion.
Two people familiar with the situation said that the Russian government is looking at different options to support Russian Railways. The company, the largest employer in the country, has accumulated a debt of 4 trillion roubles ($50.8 billion). The state-owned Russian Railways employs 700,000 workers and has seen its revenues fall amid the sharp slowdown of Russia's wartime economy. Meanwhile, debt costs are on the rise, driven by interest rates that have reached their highest levels in 20 years. Two people, who requested anonymity because the subject was sensitive, said that Moscow had been discussing ways to help the railways pay off its debt, which is mainly owed to banks of state. Sources said that these include increasing the price of cargo, increasing subsidies, reducing taxes, or even using money from the National Wealth Fund. One source said that Russian officials met in late November to discuss the current situation and will meet again in December. Requests for comments were not responded to by Russian Railways, Russian Government or the Transport Ministry. There are some ideas that haven't been discussed yet at the level of government, such as capping interest rates for Russian Railways to 9% and converting debts into stakes. This would give state banks a piece of the company. According to one source, a proposal would be to convert 400 billion Russian roubles in debt of Russian Railways into shares. Sources portrayed the measures as a "save" Russian Railways. Russian Railways operates the third longest railway network in the world after the United States of America and China. According to international standards, Russian Railways has reported revenues for 2024 of 3.3 trillion Russian roubles. Its expenditures are 2.8 trillion Russian roubles. The company's financial statement for 2025 first half reported a net debt of 3.3 billion roubles at June 30. This included 1.8 trillion of short-term loans. The debt grew by 0.7 trillion rubles in only half a calendar year. Russian Railways has been a leading indicator of the health of the Russian economy for many years. It transports oil, passengers and cargoes from the Pacific Ocean to the Black Sea and Baltic Sea. The state-dominated war-economy is a major challenge. Its struggles are a reflection of the challenges faced by too-big to fail companies that have debts with state-owned institutions. This leaves the state responsible for the debts at a time when Russia spends record amounts on its military, as the conflict in Ukraine enters its fourth year. RUSSIA SLOWS In the first two years of Vladimir Putin's presidency, from 2000 to 2008. Russia's GDP grew from $200 billion to $1.7 trillion. Currently, Russia's nominal GDP of $2.2 trillion, is about the same as it was in 2013, just before Russia annexed Crimea, and the economy will slow down sharply this coming year. The International Monetary Fund, however, has reduced its forecast for 2025 to 0.6% from 0.9%. The West claims it wants to cripple Russia’s economy in order to force the Kremlin into changing its course on Ukraine. However, Putin has stated that Russia will not bow to foreign pressure. Russian officials also claim the economy is secondary compared to the goals of the war. Putin claims that the economy performed better than anyone could have expected, despite the thousands of Western sanctions. He also says that it has remained debt-free unlike many Western countries. Despite this, he has acknowledged that there are some issues with investments and the pain caused by high interest rates. Sberbank's senior executive, who is the country's biggest lender, said that Russia's economy has been "continued cooling". Growth will be around 1% in next year, and business activity will remain weak for at least four or five quarters. $1 = 78.7500 Rubels (Additional reporting by Darya Korsunskaya and in Moscow; editing by Guy Faulconbridge, Tomaszjanowski).
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NATO scrambles jets following the deepest drone penetration yet into Romania
On Tuesday, Romanian and German NATO jet fighters scrambled near Romania's Ukraine border to respond to an incursion by a drone that penetrated further than ever before into Romanian airspace in what Bucharest referred to as a Russian provocation. Ionut Mosteanu, the Defence Minister, said that NATO pilots were close to shooting down the drone, which repeatedly violated the airspace of the member state, but held back out of concern for causing damage on ground. Later, drone fragments with no explosive charges were found on Romanian soil. Mosteanu stated that "we are dealing with a Russian provocation, a drone that the Romanian Army and German Eurofighters tried to shoot down." "My assumption would be that the pilots... analyzed the collateral damage potential and chose to not engage." Overnight, Russian drones struck Ukrainian ports near the border of Romania across the Danube River. The breach that Romania reported on Tuesday was the 13th violation of its airspace since Russia invaded Ukraine in 2022. It was not only the largest breach, but also the first one to occur during daylight rather than night. A DRONE TRACED more than 100 km INLAND The Romanian Defence Ministry said that it scrambled initially two Eurofighters, from a German air-policing operation in Romania. These aircraft tracked a drone before it returned to Ukraine in the county of Tulcea in Romania's south-east. Later, the army scrambled 2 Romanian F-16 fighters after radar revealed a second breach of airspace in the neighboring county Galati. Mosteanu reported that two more Eurofighters were sent after. The ministry stated that the planes were able to track the drone as it moved towards the county Vrancea. This county is located more than 100 kilometers inland and does not share any border with Ukraine. Residents in all three counties received a warning to seek cover. The warning was lifted later. Romania and Ukraine share a border of 650 km (400 miles). General Christopher Donahue of the U.S. Army Europe & Africa said that a new capability to shoot down drones would be deployed in Romania. "We have tested it and are in the final stages before it's used." This capability has been taught to Romanian soldiers as well as other soldiers in the alliance. I'm sure you will see it very soon on the Danube Delta. Romania has a law that allows it to shoot drones down in peacetime when lives or property is at risk. However, it hasn't fully used it. In recent months, tensions along Europe's east flank have risen after Russian drones allegedly breached NATO airspace. The latest breach occurs as U.S. officials and Ukrainian officials are holding intense talks to narrow their differences over a plan for ending the war. They have already agreed to modify an American proposal, which Kyiv and European allies viewed as a Kremlin list. (Reporting and editing by Andrew Heavens, Peter Graff and Luiza Hovet)
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CPC claims it temporarily stopped oil loadings out of Russia's Novorossiysk after a drone attack
The Caspian Pipeline Consortium said that it has temporarily halted oil loadings on its Russian Black Sea Terminal near Novorossiysk because of an overnight Ukrainian drone strike which damaged the office. It didn't provide any further details and referred to its previous statements regarding its operations, which are usually resumed once the air raid warnings have been cancelled. CPC's business operations were largely unaffected, according to a source in the industry. CPC is Kazakhstan's main export route to the global market, with the majority of volumes going to Europe and Asia. Russia contributes smaller volumes to CPC. CPC is owned by Chevron, Exxon Mobil and other major U.S. oil companies. CPC Blend oil Exports Sources claim that the November revision was to reduce production to 1.45 million barrels a day (bpd), down from 1.55 million. Officials in Russia's southern Krasnodar Region said on Telegram earlier that five residential high-rise buildings and two private residences had been damaged in the Ukrainian attack. The emergency services are bringing the fires under control. They say that falling drone debris has caused two fires. Four people have been reported as injured. In Krasnodar - the administrative hub of the region - it was also reported that drone fragments had damaged windows and destroyed buildings. A person was reported injured in a village located south of Novorossiysk. (Reporting from the bureau in Moscow, with additional reporting by Ron Bousso and Andrew Osborn in London)
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Heathrow Airport expansion plan of $64 billion chosen by UK
The government announced on Tuesday that it had chosen Heathrow Airport Limited’s plan of 49 billion pounds ($64 billion) to expand the country's largest hub over a more affordable option. After the government announced in January that it wanted to build a new Heathrow runway, they hoped the massive infrastructure project would help drive economic development. This decision ends decades of uncertainty over the future of the airport. Heathrow Airport was comparing its own plan with an alternative proposed by Arora Group. The group owns hotels and land around the airport and had estimated that it would cost 21 billion pounds, but did not include development costs. Heathrow was a "most viable option", according to the government, and it is most likely that the plan will be granted planning permission or development consent by 2029 - the end of this parliament. Heathrow Airport is owned by Ardian France, Qatar Investment Authority, and Public Investment Fund of Saudi Arabia. The airport estimates a 49 billion pound bill to build a new runway and relocate a section of London’s M25 orbital autobahn. Heathrow Airport, located west of London is Europe's busiest and most crowded airport. It operates at maximum capacity. Heathrow's two runways are comparable to those of Charles de Gaulle Airport in Paris, Frankfurt Airport and Schiphol Airport in Amsterdam. ($1 = 0.7620 pounds) (Reporting and editing by Andy Bruce, James Davey, and Sarah Young)
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French Development Agency lends 300 million euros to South Africa's Transnet
The French development agency has agreed that the state-owned South African logistics group Transnet will receive a loan of 300 million euros ($345.78 millions) for clean energy initiatives. Transnet is responsible for managing the rail freight network, ports and pipelines of Africa's largest economy. After years of underperformance, the South African government has been trying to revive the company. This has stifled commodity exports such as iron ore and coal. However, turnaround efforts are just beginning to bear fruit. Transnet and AFD announced in a Tuesday joint statement that loan disbursements will be linked to progress made on sustainability goals, such as Transnet's increased use of renewable energies. The statement stated that the financing would also encourage a shift away from road transport and towards rail. This includes the rehabilitation of 550 kilometers of railway as well as the modernisation port infrastructure.
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Russia urges LNG cooperation with China as it sees potential for boosting oil exports to China
Alexander Novak, deputy prime minister of Russia in Beijing on Tuesday, said that Russia is looking to increase oil exports to China as well as to enhance cooperation with regards to the supply of liquefied gas. Since the beginning of Russia's military operation in Ukraine, in February 2022, China and India are the two largest buyers of Russian crude oil. China imports approximately 1.4 million barrels per day of Russian crude oil via sea, and about 900,000. bpd by pipeline. The United States introduced sanctions last month against Russia's largest oil producers Rosneft, and Lukoil. Russian President Vladimir Putin denounced the sanctions, calling them unfriendly and saying that they wouldn't have a significant impact on the Russian economy. He also emphasized the importance of Russia to the global marketplace. Russia's crude oil exports to China and India have remained relatively stable despite conflicting reports. Novak said at a SinoRussian Business Forum in Beijing that Russia and Chinese partners have been discussing the possibility of increasing oil exports to China. He said, "We see the prospects of increasing oil supply via pipeline routes and sea." He said that the intergovernmental agreements allow for the extension of the terms for oil supply to China via Kazakhstan for a period of 10 years, until 2033. He later met Chinese Vice Premier Ding Xuexian, Russian government said. "Russia is a trustworthy supplier of oil to China." "We will continue actively working on expanding energy as a major area of partnership between China and Russia," Novak said at the meeting. Russia and China have also actively cooperated in the production and export of seaborne liquefied gas. Silk Fund, a subsidiary of China's state-owned energy giant CNPC, owns 9.9% of the Novetek project. U.S. sanctions against Ukraine have slowed down the export of LNG from Russia, particularly the new Arctic LNG 2 facility, and have also significantly reduced the use by the tanker fleet to transport fuel. Receive a 10% discount It received its first LNG cargo, from the sanctioned Russian Project at the end August. This was just days before a summit between President Xi Jinping and Russian President Putin. Novak said at the forum that it was crucial to continue creating conditions for joint projects through joint efforts in the face of external challenges. Mark Heinrich/Guy Faulconbridge edited the article.
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The Gulf markets are mixed in their reactions to the US rate cuts
The major Gulf stock markets were mixed early on Tuesday, after the Federal Reserve's dovish remarks revived hopes of a U.S. interest rate cut in December. Fed Governor Christopher Waller stated on Monday that the labor markets have softened enough to justify a rate cut of 25 basis points at the December meeting. However, any further easing depends on the release of economic data which was delayed due to the government shutdown. His comments follow New York Fed president John Williams' Friday comment that interest rates will likely decline "in a near-term." According to the CME FedWatch tool, investors now price in an 81% probability of a rate reduction in December. This is up from 40% last Monday. The U.S.'s monetary policy changes have an important impact on Gulf markets where the majority of currencies are pegged with the dollar. Dubai's main stock index increased 0.4%. Toll operator Salik Company gained 1.7%, while blue-chip developer Emaar Properties rose 1.1%. Dubai has approved a budget for 2026-2028 with 302.7 billion dirhams in expenditures, and 329.2 milliards dirhams in revenues. The state news agency announced this on Sunday. In Abu Dhabi the index rose by 0.2%. Saudi Arabia's benchmark stock index fell 0.2% due to a drop of 1.2% in the oil giant Saudi Aramco, and a decline of 3.2% in Saudi Tadawul Group. Bloomberg News reports that Saudi Aramco has been exploring ways to raise billions of dollars by selling various assets. The oil prices, which are a major catalyst for Gulf financial markets, eased Tuesday due to concerns that the supply of oil will be greater than the demand in the coming year. This is more important than worries that Russian shipments would remain under sanctions because the talks to end Ukraine's war have not been conclusive. Qatar Islamic Bank also lost 0.7%.
What new taxes can help raise money for climate change?
The COP29 Climate Talks in Azerbaijan are aiming to reach an agreement on a finance target of at least $1 trillion a year for poorer countries to combat global warming. New taxes are one option.
The Global Solidarity Levies Task Force, led by France Barbados and Kenya is exploring this issue. The following are excerpts from the latest report of its Global Solidarity Levies Task Force (GSLT), led by France, Barbados and Kenya.
Shipping
A levy for shipping could be the closest to agreement, as it is responsible for about 3% of global emission. Governments will debate a number of measures during a meeting of International Maritime Organization (IMO) in April.
The GSLT has proposed several models for a levy, including a Pacific Islands and Caribbean proposal of a flat rate $150/ton CO2e (carbon dioxide equivalent), increasing every five years.
The European Union, Japan and other countries such as Bahamas and Liberia are in favour of a $100/ton levy by 2027.
The GSLT, citing a U.N. Trade and Development study, said that a levy between $150 and $300 per ton could generate $127 billion a yearly in 2027-2030. As ships become less polluting, revenue would drop to $103 billion between 2031-2040. It would then fall to $36 billion from 2041-2050.
AVIATION
The aviation industry accounts for only 2% of all global emissions, but is exempt from value-added taxes (VATs) and sales taxes. The GSLT is considering levying taxes on kerosene, private jet fuel and luxury tickets, as well as frequent flyers. These could collectively generate between $19 billion and $164 billion a yearly, according to the estimates.
Around 29 countries tax aviation fuel via excise taxes, carbon levies, or emission permits. In 2021, the average price per ton among G20 countries was $9.50 euros.
The biggest obstacles to a wider tax are ensuring that industry players have a level playing ground and removing legal barriers.
The GSLT reported that at least 21 other countries have a similar levy, ranging in price from 2 euros per ticket in Portugal up to 500 euros for some flights departing Britain.
FOSSIL FUELS
Many countries already charge a tax on fossil fuels. This can be done in several ways, such as through the purchase of gasoline at the gas station, VAT, carbon taxes, emissions trading schemes, royalties, or taxes paid by oil companies.
GSLT stated that revenues could be generated by a levy or windfall tax on profits of energy companies in the future. Greenpeace's report from this year estimated that a "Climate Damages Tax", of $5/ton, would generate $216 billion in 2024. A report by ActionAid said that a 50% tax would have been levied on the windfall profit of the 14 largest fossil fuel companies based on their market value over the two-year period up to July 2023. This would have raised $173 billion.
FINANCIAL TRANSACTIONS
Over 30 countries impose a tax on financial transactions, including Britain, France and Italy. However, establishing a cross-border tax has proven difficult. Austrian Institute of Economic Research estimates that a 0.1% tax on stocks, bonds, and derivatives could generate $238 billion to $400 billion annually.
CARBON
According to the GSLT, there are 75 carbon pricing mechanisms in 83 countries. Of these, 36 are carbon taxation and 39 are emissions trading systems. They cover 24% global emissions.
Most are cheaper than the $40 to $80 per ton that is needed to curb global warming. This is due to the political concerns about the impact of the product on businesses and households.
The International Monetary Fund proposed a plan where countries would agree to a minimum price per ton of $50, or $25, $50, and $75 depending on the country's stage of development.
Another option, according to the GSLT, could be linking existing trading schemes.
WEALTH
This year, the Group of 20 largest countries discussed raising taxes on super-rich people. The current G20 leader Brazil backed a report that proposed a minimum global tax of 2% on wealth for the roughly 3,000 billionaires in the world. This would raise $250 billion per year.
You could also change the threshold and rate of taxation.
CRYPTO
The creation of cryptocurrency such as bitcoin is based on the use of energy that produces emissions.
The GSLT stated that Kazakhstan will charge crypto-miners 1 to 25 Tenge ($0.002-0.056) for each kilowatt hour in 2022. The IMF estimated that a global tax of $0.045/kWh on electricity could raise $5 billion.
IMF research suggests that a 0.1% tax on crypto trading could generate $15.8 billion and a 20% capital gains tax could raise $323 billion.
PLASTICS
Next week, a group of countries will meet in South Korea to reach an agreement on reducing plastic pollution. Ghana and other countries have called for a tax on virgin polymers.
The GSLT, citing an analysis by the Australian non-profit Minderoo Foundation, said that a fee of $60-90 a tonne for primary polymer production would raise between $25-35 billion yearly.
(source: Reuters)