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Trafigura claims Gupta stole money from metals fraud to fund his distressed companies
Lawyers for commodity trader Trafigura accused Indian businessman Prateek gupta of siphoning funds from an alleged metals fraud worth $600 million to prop up their struggling business empire. Trafigura, a Geneva-based company, sued Gupta more than two years ago. It claimed that he was behind a scam where he and his firms agreed to deliver pure nickel but instead delivered scrap steel or other metals. Gupta claims that Trafigura employees designed the scheme at the heart of the case. Trafigura, however, has denied this claim repeatedly. Gupta admitted on the second day of his testimony in the long-running trial at a London High Court that the UG Group was going to run out of money by March 2021. This is partly because of problems related to the COVID-19 Pandemic. Nathan Pillow, a Trafigura lawyer, also confirmed that his company was paid $500 million for pure Nickel but sent containers of lower-value metals. Gupta responded that a portion of the profit went towards increased shipping costs when Pillow asked. Where is the money?" "Did you steal it?" Pillow asked Gupta. The Trafigura fraud scheme was crucial to your survival. Gupta testified via video link from Dubai, where he resides: "I wasn't running the cashflow". Gupta repeatedly stated during his testimony, that he was not aware of operational details. Others were to blame. Gupta stated in a court filing that the trading with Trafigura for shipments labeled as nickel totaled 22,500 metric tonnes from October 2017 through May 2019. This will jump to 57.222 tons in 2020, and to 69.165 tons in 2021. Trafigura's lawyers claimed that Gupta had been involved in fraudulent transactions before the alleged Trafigura fraud. Gupta admitted that he was under investigation in India for fraud, but denied all allegations. His defence is based on his accusation that Trafigura staff devised a secret plan to replace metals in order to boost Trafigura’s position in the nickel markets. He claims that the undercover plan was devised in 2019, when he was told to boost nickel trading by Sokratis ikonomou, then the head nickel trader. Oikonomou denied being involved in fraud during testimony this week. (Reporting and editing by Emelia Sithole Matarise; Eric Onstad)
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Russia's central Bank says G7 attempts to unlock Moscow's frozen assets are driving gold demand
The Russian central bank stated on Thursday that the G7 was trying to use billions in frozen Russian assets to increase their reserves. Gold is on track to have its largest annual rise since 1979. It has risen 59% this year, after reaching a record-high of $4,381 per troy ounce in October, on the back of safe-haven demands driven by geopolitical turmoil and U.S. Tariff uncertainty. According to the central bank, investor interest in gold is increasing due to global uncertainty. The central bank stated that "at the same time the precious metal receives additional support due to the steady demand of central banks from emerging market economies who continue to diversify international reserves amid discussions between the G7 regarding the use frozen Russian assets." Euroclear is a central securities depository in Brussels that holds 185 billion euro of the 300 billion dollars in frozen Russian assets. As of November 14, Russia's gold reserves and foreign exchange reserves totaled $734.1 billion. (1 euro = 0.8630 dollars) (Reporting and editing by Guy Faulconbridge; Maxim Rodionov, Writing).
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Germany's DET will repeat LNG capacity auctions if no bids are received
The German Deutsche Energy Terminal (DET), which failed to assign any slots at its November 25-26 auctions, announced on Thursday it would re-run the auctions of liquefied gas landing capacities for Wilhelmshaven terminals 1 and 2. DET stated on its website that the regasification slots are for the remaining capacity in December 2025 and the first, second, third and fourth quarters of 2020, as well as the first quarter 2027. DET operates and markets floating terminals which convert LNG into gas, and feeds it into Germany's gas pipeline network. The European Union decided to stop relying on Russian fossil fuels in 2027 and has a sharply decreased the imports of pipeline gas from Russia. This will increase demand for seaborne LNG. DET announced that the capacities were sold at 0.56 euro ($0.6488) MMBtu (a measure used in the gas industry of British thermal units). The same conditions would apply to the next auction. DET said the terminal at Wilhelmshaven 2 will be down for several days to perform maintenance on the floating storage unit and regasification (FSRU), Excelsior. This will begin November 27. DET will inform the market when this is complete. Separately the Brunsbuettel Terminal, also under DET, has received its floating storage unit and regasification (FSRU), Hoegh Ganet, which is now ready for the upcoming winter months. The upgrades were completed in September to reduce noise and carbon emissions. ($1 = 0.8631 euro) (Reporting and editing by Vera Eckert)
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Black Sea CPC blend oil exports will jump 17% in December m-o -m, according to sources
Sources say that Black Sea CPC blend oil exports will increase to 1.7 millions barrels per day in December, from around 1.45 million barrels in November. Calculations show that daily shipments of CPC Blend are expected to increase by 17% compared to November's plan. CPC is the main export route of Kazakh crude oil to international markets. The majority of volumes are shipped to Europe and Asia. Russia also provides smaller volumes of crude oil to the CPC system. One source stated that the increase in CPC Blend exported in December is due to an expected higher production in Tengiz, where maintenance was performed in October and Novembre. Another source said that Russian oil producers would increase oil shipments through the CPC system during December. Two sources have said that the December loading schedule could be revised upwards due to multiple disruptions of CPC Blend oil in November, which may result in a poor performance for this month's sales and some volume being rolled over into December. Conor Humphries, Conor Humphries (Reporting)
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Prosecutors say that on Thursday, the suspect in the Ukrainian Nord Stream case will be extradited from Italy to Germany.
The German Federal Prosecutor said that a Ukrainian man suspected to have coordinated the sabotage in 2022 of the Nord Stream Gas Pipeline will be flown into Germany on Thursday, after Italy's highest court approved his expulsion last week. The explosions that occurred in the Baltic Sea, three years ago, were described by both Moscow, and the West, as acts of sabotage. They essentially cut off Russian gas supplies to Europe. The investigation took years to solve the mystery. SUSPECT DENIES ROLE IN ATTACKS The suspect, who is identified by German privacy laws as Serhii k., denies playing any part in the attacks. His lawyer Nicola Canestrini said he was confident that his client would be acquitted following a German trial. German prosecutors accuse the man of being part of a group that planted devices near the Danish Island of Bornholm, in the Baltic. He is accused of conspiring to cause an explosive, of anti-constitutional acts of sabotage, and of destroying important structures. The suspect was arrested in Italy in Rimini on an arrest warrant issued by the European Union in August, but refused to be transferred to Germany. A court in Poland last month ruled that a second Ukrainian suspect sought by Germany for the explosions should not be handed over and ordered his release immediately. (Reporting and writing by Tilman Blsshofer, Editing by Ludwig Burger.)
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Talks are ongoing, says a Hungary official about MOL and Serbia's NIS.
The chief of staff to Prime Minister Viktor Orban said that talks were ongoing regarding the possibility that MOL, a subsidiary of Hungary's MOL, could purchase a stake in Serbian NIS's Russian owned refinery. Serbia must find a buyer of NIS. This company is subject to U.S. Sanctions due to its Russian ownership. They have stopped crude oil supplies from Croatia's JANAF pipe. Belgrade warned that Serbia’s sole oil refinery would have to close this week if sanctions were not postponed. Orban of Hungary, who will meet Serbian President Aleksandar Vucic on a trip to Serbia, wrote in a post on Facebook that "Hungary would do all it can to assist Serbia's energy supply", but did not give any further details. Gergely Gulyas, his chief of staff, told a press briefing that there could be a chance for a market transaction. However, these discussions are in progress. It is in the best interest of NIS to end Russian ownership. Gulyas said that MOL could play a larger role in the transaction. He added that Hungary was "willing" to help with it if needed. Vucic stated on Tuesday that Belgrade will give Russian owners of NIS, Gazprom Neft & Gazprom, 50 days to sell or their stake in NIS. Otherwise the government will take over the operations and offer to purchase them. Gazprom Neft owns 44.9% and Gazprom 11,3% of NIS. Serbia holds 29.9% of NIS, and the rest is held by small investors. Peter Szijjarto, Hungary's foreign minister, said that MOL will deliver to Serbia two-and-a half times as much crude oil and diesel than usual during December. (Reporting and editing by Krisztina than and Anita Komuves)
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Venezuela revokes flight rights for six airlines amid escalating US tensions
Venezuela has revoked the operating rights of six major international carriers that suspended flights into the country after a warning by the U.S. Federal Aviation Administration. The Civil Aviation Authority revoked the permits of Iberia and TAP. Avianca and Latam Colombia were also affected. Turkish Airlines, Gol and Turkish Airlines are no longer allowed to fly into and out of this Caribbean nation. This further reduces their connectivity and fulfills their threats from last week. Caracas issued a statement in which it said that the airlines had "joined the actions of state terror promoted by the United States", by "unilaterally halting" commercial flights. The U.S. Aviation regulator warned major airlines last week of a "potentially dangerous situation" when flying above Venezuela because of "a worsening security situation and increased military activity around or in" the country. Caracas has said that the U.S. regulator does not have any authority over its airspace. Since months, the U.S. has deployed forces in the Caribbean to combat what they have portrayed as President Nicolas Maduro’s role in providing illegal drugs to Americans that killed them. Maduro denied the allegations and said that U.S. president Donald Trump wants to remove him. The International Air Transport Association (IATA), in a Monday statement, said that Venezuelan authorities gave international airlines 48 hours to resume flights or lose their right to fly into the country. THE AIRLINES In recent days, several international airlines canceled flights bound for Venezuela despite the 48-hour deadline set by Caracas. Iberia has said that it will resume flights to Venezuela once all safety conditions are met. Air Europa and Plus Ultra suspended their flights, but they did not lose their permits. The international airlines Copa, Wingo, and domestic airlines that fly to Colombia, Panama and Curacao are still operating in Venezuela. (Reporting and additional reporting by Corina Poons; editing by Kevin Buckland, Clarence Fernandez and Clarence Fernandez).
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Olympic-Transport Fears Force Cap on Ticket Sales for Events in Italy's Cortina
The local organisers were forced to limit the number of tickets available for the Winter Olympic events at Cortina D'Ampezzo, in February. This was due to concerns about transport congestion. These were exacerbated by the delays in the construction of a new cable-car to carry fans up the mountain. The problems with the Apollonio Socrepes Gondola are perhaps the most urgent sign of the transportation challenges Italy is facing as it hosts a Games that will be co-hosted in Cortina and Milan, but also include events held across northern Italy. The Games are less than two months away and the construction of the cable car to transport thousands of spectators to the Tofane Alpine Skiing Centre, where the women's race is being held, has been well behind schedule. CAP ON TICKET NUMBERS The new sliding centre in Cortina, which is located within the town, will also host bobsleighing, luge, and skeleton. Massimo Bortoluzzi is the provincial transport councillor. He said that the uncertainty surrounding the cable car project, and the delays in setting up the collection points to collect spectators going to the event, have led him, in the preliminary, 15% less than the initial estimate of 200,000 spectators. Bortoluzzi said, "We have to draw the line. We're too close to deadline now and risk having trouble finding drivers and shuttles." The local organizing committee, Milano Cortina 2026 Foundation said that the organizers have temporarily limited the number of event tickets to Cortina in order to keep up with the current transport system capacity and avoid excess traffic. TRAFFIC WILL BE LIMITED DURING GAMES Cortina, located in the Dolomites and one of Italy's most popular winter resorts, hosted the 1956 Winter Olympics. However, it lacks a rail station, and the main road to the town is often slow during peak hours. The only way to travel around the town of 5,500 residents is by car. During the Olympic Games, which will run from 6 February to 22 February, special measures are being taken to reduce congestion. Permits will only be issued to vehicles that are used by local residents, people who own second homes and those providing services for the Games. Shuttle buses will be used to transport fans with tickets to Olympic events. They must leave their vehicles at designated locations and use shuttle buses to get to the event. CABLE CAR FACES PRESSING DEADLINE Cable cars should ease crowding by taking visitors from an elementary school to the slopes. The project is called a gondola-ropeway and involves 10 pylons, three stations (valley, intermediate, and summit) with 50 cabins that can seat 10 passengers each. It has the capacity to transport 2,400 passengers per hour. The contract was only awarded in July after a long approval process. However, a group local residents also tried to stop the project in court. A crack in the earth can complicate work in an area that is prone to landslides. Simico, a state-backed agency responsible for building the Games' infrastructure, has said repeatedly that it will deliver the Gondolas on time. It cited the example of the sliding centre, where delays were avoided. Massimo Saldini, Simico's special commissioner, told RAI in an interview on November 22 that the majority of the project would be completed by December 31, with the final tests to follow in early January. Franco Sovilla, owner of a Cortina bookshop, looks forward to potential benefits in the long term. Traffic would be heavy without the link. "It will also ease congestion after Games," he added. (Elvira Pollina and Sara Rossi contributed to the report, with additional reporting from Claudia Greco; Keith Weir, Conor Humphries, and Keith Weir edited it.)
Netherlands increases tax on private jets
The Dutch parliament approved on Thursday a plan for a tax increase on private jet travel starting in 2030. The rules will be applicable to aircraft that have 19 seats or less.
Passengers on flights up to 2,000 kilometers (1,243 miles), will be charged 420 euros (486 dollars). The fee for those travelling between 2,000 km and 5,500km is 1,015 euro, while journeys over that distance are charged 2,100 euros.
Private jets will be taxed based on distance in 2027, when all aviation taxes will move to a weight-based system. Between 2027 and 2030 the taxation of private jets will be the same as that for commercial flights.
Distance-based pricing will see passengers paying just over 70 Euros for commercial flights that exceed 5,500 km. Short-haul flights will cost around 29 Euros, and long-haul flights will be roughly 47.
The legislators who proposed this measure said that the principle "the polluter pays" should apply to even the richest and biggest emitters.
Oxfam, The Guardian and the Stockholm Environment Institute conducted research that showed the richest 1 percent of the population emits more greenhouse gases than the 66% poorest. In their request for an increase in the distance-based private jet tax, the lawmakers stated that a significant portion of these emissions can be attributed to the use private aircraft. In June, France, Kenya and Spain, as well as Barbados, had pledged to tax private jets and premium-class flights. ($1 = 0.8633 euros) (Reporting by Charlotte Van Campenhout; Editing by Kirsten Donovan)
(source: Reuters)