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WTO is at a 'critical junction' and requires deep reforms, EU and CPTPP claim
The World Trade Organisation is at a 'critical juncture' and needs a 'deep re-structuring, said the European Union and the parties to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership on Friday. On Friday, the EU and CPTPP, which includes 12 countries including Australia, Japan, Canada Mexico, Malaysia, and Britain, met in Cameroon at the WTO ministerial conference. In a joint statement, they stated that "the WTO is at a crucial juncture amid increased tensions in global trading." Both groups of representatives agreed that "urgent reform" was needed for the?WTO. They also said that they want to work together to cooperate in areas of mutual interest. Reporting by Olivia Le Poidevin and Editing by Friederike Hne
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Rosatom and DP World, a joint venture between the UAE and Russia, plan to develop logistics in Russia
The Russian state-owned nuclear company Rosatom announced on Friday it had agreed to form a joint venture in logistics with the UAE-based port operator, DP 'World. Rosatom, a Russian company that builds nuclear plants in Russia and abroad, and owns transport assets there, will hold 51%, and DP World, 49%, according to DP World's spokesman. Rosatom will contribute its 92.4% share in the Russian container logistics group FESCO. DP World, on the other hand, will?provide cash based on FESCO's market value. The Federal Antimonopoly Service and the Government Commission on Foreign Assets must approve the deal. Rosatom stated that the partnership was in line with its strategy to become a global logistics provider and increase cargo flow, including through the Northern Sea Route - the Arctic transport corridor along Russia's north coast. DP World is one of the largest container port operators in the world. The deal will 'give Rosatom access to their global infrastructure. DP World - which is expected to help 'Russia find new cargo volumes, including on the Northern Sea Route. (Reporting and writing by Anastasiyalyrchikova, Editing by Louise Heavens).
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Kazakhstan claims that the attack on Ust-Luga did not impact its oil exports
Kazakhstan's Energy Ministry said on Friday that the attack on Russia’s major port in the Baltic, Ust-Luga, did not affect?Kazakhstan’s oil exports. It added?that flows were operating normally. The Ministry said that it continues to monitor the situation. Three processing units at the Ust-Luga Complex, each with a capacity of three million metric tonnes per year, refine stable condensate to light and heavy naphthas, jet fuel, ship fuel oils and gasoil. Kazakhstan exports part of its crude oil through Russian ports along the Baltic Sea. This includes Ust-Luga which was 'hit by a Ukrainian drone on March 25. Both Ust-Luga port and the nearby Primorsk Port were forced to suspend crude oil and oil-products loadings after this attack. When the Caspian Pipeline Consortium (CPC), its main hub for oil-exports, is disrupted, Kazakhstan will use Russian Baltic ports to find alternative routes. CPC transports oil to the Black Sea Terminal near Novorossiysk from western Kazakhstan, accounting for 80% of Kazakhstan’s?oil? exports. Drones struck CPC's equipment for exporting oil on the Russian Black Sea coast on?November 29. This led to a drop in oil exports through the pipeline. This prompted Kazakhstan's decision to divert 300,000.0 tons of crude oil in December.
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The high shipping costs and contract structure limit Russia's ability to reroute LNG away from Europe
Industry analysts say that Russia's threats to stop LNG deliveries to Europe and divert cargoes towards Asia would be difficult to achieve due to its long-term agreements and the need for more Arctic class tankers. In a television interview conducted in early March, President Vladimir Putin stated that Russia would'stop gas deliveries to Europe immediately and seek long-term commitments from other buyers. Gas prices have risen due to the impact of the U.S. and Israeli war on Iran, which has effectively cut off 20% of the global LNG supply. Russia could be forced to look for alternative customers in order to obtain LNG, as the European Union has banned Russian LNG imports under short-term contracts starting April 25, and long-term agreements beginning January 1, 2027. In a TV interview, Putin said that he had been "thinking aloud" and said: "Perhaps we would be better off if we stopped supplying the European Market right now." Analysts said that the structure of Russia’s LNG contracts left it with limited flexibility to ship gas elsewhere. Kpler data shows that the European Union will import 14.94 million metric tonnes (mt) or 20.3 billion cubic meters (bcm), from the Yamal LNG Project in Russia's Western Arctic by 2025. Around 70% of the Yamal volumes are bound to long-term agreements. Tom Marzec Manser, Director Europe gas & LNG, Wood Mackenzie, stated that Russian companies had around 2.4 mt spot LNG available in this year. It would be uneconomical to send those volumes before the Arctic routes reopen in the summer. Marzec-Manser said that based on the available volumes for the remainder of the year, "a maximum of 1.7 mt can be diverted from Europe to Asia." According to Eurostat, this represents approximately 1.7% of EU LNG imports in 2025, which total 100.5 million tonnes. Shipping the gas can be a challenge, despite the fact that there is a supply. The Northern Sea Route along the Russian Arctic coast is the fastest way to reach Asian customers, but it is only navigable part of the time. Kjell Eikland of Eikland Energy, a shipping consultancy that analyses energy shipping, says that ARC7 ice class vessels are able to travel via the Northern Sea Route between July and late November. Analysts and shipping data indicate that cargos bound for Asia must always travel through the Suez Canal, or via the Cape of Good Hope. This can take up to twice as long, depending on the route. According to Eikland, Yamal LNG exports 18 millions of tons per annum. He said that to maintain this level, and to serve customers in Asia by 2027, Novatek, Yamal LNG’s majority owner, would have to charter 25 to 35 additional tankers for the winter to ship LNG through the Suez Canal, or Cape of Good Hope. Eikland stated that re-routing 30 percent of the volumes sold in spot contracts this year from Europe to Asia could require ten additional vessels. Since early March, Russia has avoided using the Suez route after a tanker containing 'Russian LNG' caught fire near the coast of Libya. Moscow described the incident in Libya as an attack launched by Ukrainian drones. Ukraine has not responded. Need for Big Discounts The issue of financing is another major obstacle for Russia. Yamal does not face direct sanctions by the U.S. and?Europe but many other Russian LNG facilities, vessels, and finance companies do, making it difficult to obtain trade financing. LNG trading sources told that ?payment for extra LNG flows would likely have to be outside conventional banking channels, largely through government-to-government arrangements. According to a Rystad Energy analyst, Masanori Odaka: "LNG freight rates have risen following the Middle East Crisis, so diverting to Asia only makes sense at substantially discounted prices." Analysts said that given the rise in LNG prices, even a steep discount on Russian LNG could still be "too expensive" for Asia's price-sensitive buyers. Analysts said that China, which is already Russia's largest customer, would likely seek large price discounts if it were to purchase any additional Russian LNG. China has taken in all volumes of Russia's Arctic LNG-2 project sanctioned by the United Nations, but at a steep discount of 30-40% to LNG benchmark prices.
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Sources: Novatek suspends operations in Ust-Luga after drone attack
Three market sources have confirmed that Russian energy company Novatek suspended 'gas condensate export loadings and naphtha processing at its Ust-Luga facility following drone attacks which caused a fire at the facility. Novatek's cuts to naphtha exports will have an impact on Asian markets. They already experienced a feedstock shortage last March when the U.S./Iran conflict disrupted Middle East fuel shipments. These attacks were one of the most intense drone strikes in Russia's western energy corridor. The Baltic ports Primorsk, Ust-Luga, and the surrounding area were repeatedly targeted by drone strikes. Explosions tore through terminal infrastructure and ignited storage tanks, forcing emergency crews to battle huge columns of smoke. The fire that broke out at Novatek’s Ust-Luga Complex damaged some of the processing units as well as a part of the fuel tanks. Sources said that the time frame for repairs would be determined after a "full assessment" of the damages. Novatek did not immediately respond to an inquiry for comment. Three processing units of the Ust-Luga Complex, each with a 3 million ton capacity, refine stable condensate and produce light and heavy naphthas, jet fuels, ship 'fuel oil, and gasoil. Data from the company show that in 2025?the complex processed 8 million tons of condensate gas.
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Senate approves funding for Homeland Security in large part after airport shutdown
On Friday, the U.S. senate passed a bill that would?finance the Department of Homeland Security while withholding funds from ICE. This was in response to a partial government shutdown lasting weeks which caused major disruptions at airports. Senate Democrats blocked DHS funding in November, when they sought to curb the Trump administration's immigration crackdown after federal agents killed two U.S. Citizens in Minneapolis. A funding shortage has left tens and thousands of Transportation Security Administration (TSA) employees without pay. This has led some airport security officers to call in sick, or even resign. Donald Trump announced on Thursday that he would pay 50,000 airport workers to address the staff shortages which have caused travel to be hampered across the country. The Senate bill would fund DHS elements such as the TSA and U.S. Coast Guard, but withhold funding from Immigration and Customs Enforcement and Customs and Border Protection. The bill could be voted on by the House of Representatives as early as this Friday. Chuck Schumer, Democratic Senate Minority Leader, said in a statement that "this agreement funds TSA and the Coast Guard. It also funds FEMA and CISA. This agreement strengthens border security?and entry ports, keeping America safe." He added that "Democrats were steadfast in their opposition to Donald Trump's deadly and rogue militia getting more funding if there are no serious reforms." Republican Senator Susan Collins, who chairs Senate Appropriations Committee said Democrats have damaged Congress' annual funding processes, weakened the national?security and set "a precedence that they may regret one day". She said that Democrats remained intransigent with their demands.
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Lufthansa signs wage agreement with German ground staff
The 'Lufthansa Group' has reached an agreement on collective bargaining for more than 20,000 ground staff in Germany, allowing them to breathe easier as other labour disputes continue. Verdi, a trade union, reported that the agreement reached after four rounds of?talks will see the basic?salary for ground staff raised by 4.65% total in two steps. The '2,2% initial raise was agreed retroactively by Lufthansa for air freight and maintenance and repair units as of January 1, this year. Staff at the passenger?business Deutsche Lufthansa AG will receive their raise one year after that date due to a "challenging environment". From March 1, 2027 there will be a 2.4% increase across all businesses. The airline is still 'in a protracted dispute over benefits with the pilots and flight attendants, who are on strike. (Reporting by Klaus Lauer; writing by Miranda Murray, Ludwig Burger and Thomas Seythal, editing by Thomas Seythal).
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Wall St Week Ahead: US jobs data will give an economic outlook for war-torn markets
The U.S. Employment Report next week will be a major economic event for investors. They'll also closely monitor the Iran War, which is now in its second month. The markets will continue to focus on the impact of the Middle East conflict that has slashed a large portion of oil supply. U.S. crude oil?is up over 60% year-to date to almost $100 a barrel. This has led to U.S. gas prices to?surge at $4 per gallon. This could squeeze consumer spending. Investors worried about inflation pushed benchmark Treasury yields to their highest level since last summer. This could put pressure on equity valuations. The S&P 500 index, which is the standard for the stock market, fell sharply on Thursday. Its slide has now reached nearly 6% in the time since the U.S. and Israeli military strikes against Iran at the end of February. The Nasdaq Composite closed down by more than 10% compared to its all-time October high, confirming that it was in correction. Jim Baird of Plante Moran Financial Advisors, Chief Investment Officer, stated that the stock market would likely remain headline driven in the coming days due to conflicting signs of a possible de-escalation. Baird stated that any signs of a positive breakthrough in the discussions with Iran, and a cessation in the conflict in Iran would go a great way to 'providing a sense of reassurance and boost sentiment for investors. "Anything which would indicate that this could become longer and drawn-out would be a negative to investor sentiment, and would certainly weigh on the market," Baird said. Tuesday marks the end of a difficult first quarter in U.S. equity markets. Stocks have been rattled by the Iran conflict and concerns over business disruptions caused by artificial intelligence. After three years of double-digit gains, the S&P 500 has fallen more than 5% in 2026. James Ragan is co-CIO at D.A. Davidson. "As we approach the final?couple days of the quarter I think you can see the market sentiment a little bit rolling over." A POSITIVE JOB NUMBER Data suggests that the March payroll report will show an increase of approximately 48,000 jobs, and an unemployment rate around 4.5%. The report is due April 3, when the U.S. Stock Markets will be closed on Good Friday. The previous report for February showed a surprising decline in jobs of 92,000. Ragan noted that, given the fact that the two previous monthly reports showed a negative growth in employment, "anything positive would be good for market," Ragan stated. Next week, we will also be receiving the retail sales figures for February as well as reports on manufacturing and service activity. Last year, the Federal Reserve cut interest rates due to concerns about an deteriorating labor markets. The U.S. Central Bank will be in a difficult position if employment problems become more serious. The Fed had already set a target for inflation, so the surge in energy prices is a barrier to any further rate reductions. According to LSEG data, the markets have 'factored in' no rate cuts this year. Fed funds futures are actually pricing in a small chance of a 2026 hike, according to LSEG. RISE IN YIELDS AND FALLING VALUES The benchmark yield on the 10-year Treasury note has increased to 4.4%, up from 4% just before the start of the war. David Bianco is Americas chief Investment Officer at DWS. He said that the equity market was also paying close attention to the increase in yields. He said that the rise in yields has a wide range of implications, including the mortgage market, debt sustainability for the U.S. Government, and the fair price to earnings valuation. In fact, in recent weeks the market has lowered its valuation. According to LSEG Datastream, the S&P 500 P/E ratio was just below 20 at the end of last year. It had been over 22 when the year began. This P/E remains above the long-term average of 16 Investors want to know the implications of the war on corporate profits and how this will affect energy prices. Delta Air Lines, FedEx and others recently released reports encouraging investors in the face of rising?fuel prices and other costs. Nike will announce its quarterly results on February 2, while the bulk first-quarter results won't be available for a few weeks. Bianco stated, "I believe the U.S. economic situation is still safe from recession." We can argue about the likelihood of a recession increasing as oil prices rise, but I think that we are still a long way from one. (Reporting and editing by Colin Barr, David Gregorio and Lewis Krauskopf)
Sources say that Russian oil producers may declare force majeure in response to attacks on Baltic ports
Two 'industry' sources said that Russian oil producers warned buyers on Friday they could declare force majeure over supplies from major Baltic Sea ports, as Ukraine continues to attack Russian energy infrastructure.
The Ukrainian president Volodymyr Zelenskiy said this week that Kyiv uses long-range attacks to maintain pressure on Russia, after international sanctions against Moscow were eased because of global supply disruptions caused by the Iran War.
Sources said that Ukrainian drones targeted the port of Ust-Luga on Friday, where an ongoing fire from a strike made Wednesday still burned.
The raids have halted oil loadings in the port since Wednesday, according to sources. They also said that the official suspension notice issued by the Ust-Luga Port Authority did not specify a timeframe for the resumption.
According to one source, oil loading from the Ust-Luga Terminal may not resume before mid-April.
Primorsk was also damaged by the recent attacks. However, it resumed partial oil and fuel loadings on Thursday.
Alexander Drozdenko is the governor of the north-western Leningrad region, where the two ports are located. He said on Friday in a Telegram post that the area has been experiencing "unprecedented drone attacks" since March 22.
According to calculations based upon market data, at least 40% of Russia's capacity to export oil is at a standstill because of?Ukrainian attacks on drones, a disputed attack on a pipeline, and the seizure or tankers. (Reporting and Editing by Joe Bavier).
(source: Reuters)