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Naftogaz, the state-owned gas company in Ukraine, says that Ukraine wants more LNG and diesel imported from Greece
Naftogaz, the Ukrainian energy company, said on Monday that Ukraine is interested in increasing LNG supplies via Greek terminals and pipelines along the Vertical Corridor System. The Vertical Corridor allows Ukraine to receive U.S. LNG via Greece, but the share of imports is still small. In 2016, Greece, Bulgaria Romania and Hungary signed an agreement to build the infrastructure for the Vertical Gas Corridor, which will allow gas to be transported between the countries. After the meeting, Serhiy koretskyi, Naftogaz's CEO, said that "special attention was paid to the possibility of increasing the gas supply volumes for both Ukraine and the Eastern European region via Greek ports." He added that they also discussed diesel fuel supply, the use the Greek fleet and other mutually-beneficial projects. After Russian missile attacks virtually destroyed Ukraine's refining capability, the country became almost completely dependent on imported fuel. It sources supplies from Western, Central and Southern Europe. Enkorr, a Kyiv fuel consultancy, said Monday that Ukraine has increased diesel fuel imports. Analysts do not expect the country to have a fuel shortage by April. ExPro analysts said that this month, gas traders, including the state-owned Naftogaz, will import at least 75,000,000 cubic metres of LNG into Ukraine through the "Vertical corridor"?from Greece in March. ExPro stated that the gas imports from Greece would be 2.41 mcm/day and will come at special transport rates. (Reporting and editing by Keith Weir.)
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Spain shuts down airspace for US planes involved with Iran war, Defence Minister says
Spain has closed its airspace for?U.S. Spain has closed its airspace to 'U.S. She told reporters in Madrid that "we don't authorise the use of either military bases or airspace for actions relating to the war?in Iran". The news was first reported by El Pais, the Spanish newspaper on Monday. It cited military sources. El Pais said that the closure of 'the airspace' forces NATO members Spain to avoid military planes en route to?targets?in the Middle East. However, it doesn't include emergency situations. When asked whether the decision to close Spain's airspace would worsen relations with the United States, Economy Minister Carlos Cuerpo replied in an interview with Radio Cadena Ser. The Spanish Prime Minister Pedro Sanchez is one of the loudest critics of 'the U.S. attacks and Israeli attacks against?Iran. He has called them reckless and illegal. Donald Trump threatened to cut off trade with Madrid if it refused the U.S. the use of Spain's bases during the war.
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Some Canadians in Canada's northernmost regions worry that Carney's military plans overlook everyday needs
There are only two grocery stores in a Canadian hamlet at the northernmost tip of the Arctic Ocean. The sports arena is the only place to go for entertainment. And there's no doctor. A trip south usually requires a 2-hour flight. Dentists visit the 2,000-person community 'twice per year' and trucks bring in water. Giving birth can often involve flying to another city, several hours away. This is done weeks before the due date. Natasha Neglak Lear (49), a Cambridge Bay resident, was not impressed when she heard that Prime Minister Mark Carney planned to spend more than C$2 billion?to designate Cambridge Bay as one of the two new northern military centers. She said there were'more pressing issues' to be considered, such as a local place where women could give birth. She said that before they did all of this, they should give to us what the people in the south have, referring specifically to the two-thirds or more of Canadians living within 100 kilometers of the U.S. Border. "Development and doctors, dentists and birthing centers are needed to help us grow." Carney has committed more than C$35billion to increase military spending in Canada, and to "take control" over its Arctic territory. This move was partly motivated by Donald Trump's threats of annexing Greenland, and making Canada the 51st State, and Trump's demand that Canada and its allies raise their defence expenditure. Canada wants to be able to respond independently to threats in an increasingly dangerous and divided world, which Carney describes as "more dangerous" and "divided". To do this, it is upgrading airports and strengthening northern defenses. It also ensures that aircraft can be deployed anywhere in the Arctic. Climate change is making the icy region more accessible. Russia has more military bases in the Arctic than any other country. In recent years, China began to increase its presence, mainly in partnership with Russia, in this mineral-rich region. TRAUMATIC MEMORIES Canada is home to a quarter of the Arctic region of the globe, with most of its territory being significantly less developed than those of European nations. This region is larger than continental Europe and accounts for 40% the land mass of Canada, 75% its coastline but only has less than 150,000 residents. Indigenous leaders, who make up the majority of Arctic residents, have complained for years about insufficient investments. Politicians also acknowledge that the sparsely-populated region lacks tax bases to finance major infrastructure projects. Interviews with dozens of military, community and Indigenous leaders in Canada's Arctic?territory showed that some were encouraged by Carney's plan - which includes investing C$294 million to renovate Arctic airports and build new runways. In interviews with dozens military, Indigenous and community leaders in Canada's Arctic Territory, some expressed their support for Carney's plans. This includes investing C$294 millions in renovating Arctic Airports and building new airport runways. Some people were worried that the military would change their lives without improving education, health care and social services. Cambridge Bay Mayor Wayne Gregory stated that he was "ecstatic' about Carney’s Arctic strategy announcement made on March 12. He described the military?hub design as a possible turning point for the city. Some Inuit, which make up over 80% of Nunavut’s population of 42,000 people, still have painful memories from previous militarization attempts during the Cold War. In the 1950s-'60s, the government relocated people thousands of kilometers away and killed thousands of dogs to control disease and public safety. This deprived Inuits of their ability to travel and hunt. Indigenous leaders are concerned that Canada's response to Trump's threat could again violate their constitutional rights to manage their land, culture, and education. Natan Obed is the president of Inuit Tapiriit Kanatami which represents over 70,000 Inuit living in Canada's far north. "We're the best-prepared to deal with any threats that come our way. What we have been asking for are the necessary funds so we can?have thriving community." Carney's Government disputed the idea that increased defence spending could result in fewer funds being allocated to other local initiatives. Eric Head, the Indigenous Services Ministry's spokesman, pointed to resources dedicated for youth programs, community safety and mental health for Indigenous communities, as well as plans recently announced to spend C$1.4billion on health and social initiatives. CARIBOU MIGRATION Census figures show that Indigenous people living in the Arctic have a higher rate of unemployment and are more likely to struggle to find housing and food than other Canadians. This has serious consequences. The rate of tuberculosis in Indigenous people living in the Arctic is more than 600 times greater than that of non-Indigenous Canadians, and their life expectancy falls by about 10 years. Carney's plan only allocates a small fraction of the funds to be spent in the next 12 year for civil projects. For example, a C$1billion Arctic Infrastructure Fund will be used to build roads, ports, and bridges. Carney, according to some Indigenous leaders, failed to consult them before releasing the plan for developing the Arctic. George Mackenzie is the Dene National Chief of the Northwest Territories. He said that the Prime Minister should meet with regional chiefs from Canada's Indigenous People, as he does with the premiers in each province and territory. Carney has promised to work with Indigenous Leaders and that the government will invest C$10 Billion into energy projects. This investment is expected to create more than 10,000 jobs during construction in the Arctic. Ottawa has backed the Grays Bay Road and Port Project, which is aimed at connecting a mineral-rich area in the Arctic with?global shipping lanes. Some locals fear that it could harm the migration of the 'local caribou herds', the main food source in the region. Lear, a member of the Kitikmeot Inuit Association's board, expressed her surprise that Carney was promoting the project before the environmental impact had been evaluated. She said that the caribou population is already declining and construction could push them out of the area. Inuit rely on caribous for food, hide and fur. Haugaaq, 62, was teaching local youths how to make traditional fur and gloves at a workshop. She said it was the first in her lifetime that she saw so many politicians involved in the Arctic. She said, "We need more protection with what is going on in the rest of the world." I hope that the leaders who are in charge of us think about our needs first." (Reporting and editing by Caroline Stauffer, Deepa Babington and Maria Cheng)
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South Korea is considering nationwide driving restrictions as oil prices rise
Senior officials have said that South Korea may extend driving restrictions to the public if global oil prices continue to rise. This is because authorities are trying to curb energy demand amid supply constraints due to the U.S./Israeli war against Iran. Finance Minister Koo Yon-cheol'said 'on Sunday that the government may expand restrictions on the use of passenger cars beyond public institutions if oil prices increase to $120-$130 a barrel, from the current range of $100-$110. The policy, if it were to be extended to all citizens, would mark the first national driving restrictions since 1991, when the government implemented a 10-day rotation system for vehicles to save energy. Koo, speaking on a local radio station, said that if the Middle East crisis worsens, then the crisis alert system would be upgraded to the "warning" stage. At this point, we would also need to reduce?consumption. This is the third highest level of the four-stage crisis?alerts for resource security in the country. He said that the government could also look at further fuel tax reductions to reduce the burden on the households. In a separate press release, the finance ministry stated that mandatory driving restrictions for the private sector are still undecided. The authorities will weigh energy supply conditions and other economic factors before taking any action. South Korea imports 70% of its crude from the Middle East. This leaves the country exposed to disruptions in supply and price fluctuations resulting from tensions within the region. Last week, the government implemented a five-day mandatory vehicle rotation system in the public sector. This restricted vehicle use according to licence plate numbers. Kim Sung Whan, the Energy Minister, said that authorities would consider tighter measures to manage demand if the alert level rose 'further. This includes enforcing driving curbs and encouraging voluntary participation from companies and financial institutions. Samsung Electronics, SK Group and other major conglomerates have joined in the effort to encourage employees to reduce their private car usage and adopt fuel-saving methods. Senior politicians and lawmakers have also posted on social media about using public transport, bicycles and other energy-saving methods and urging the public to do the same. Kim tried to stop panic-buying of trash bags. Some consumers hoard the bags in anticipation that there could be a?shortage due to the Middle East Energy Crisis. In a recent Facebook post, he stated that over half of local governments had an inventory of garbage bags of more than six months, and Korea will 'allow regular bags to be used for waste in worst-case scenarios. Lee Jae Myung, South Korea's president, said that the energy crisis is so severe that he can't even sleep at night. (Reporting and Additional Reporting by Hyunjoo Ji; Editing by Sonali Paul, William Maclean).
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Tanger Med port in Morocco prepares to increase traffic after Gulf War
Tanger Med in Morocco, Africa's biggest container port, is planning to increase calls from ships due to escalating tensions around the Middle East, said the port's managing director on Monday. Container carriers such as Hapag-Lloyd, Maersk and CMA CGM have announced this month that they will reroute vessels around Cape of Good Hope. Idriss Aarabi, the managing director of Tanger Med told me by email that rerouting would increase transit time from 10 to 14 extra days for vessels diverted via Cape of Good Hope in order to reach Tanger Med. Aarabi stated that the port of Tanger Med in northern Morocco, on the Strait of Gibraltar is focused on "capacity-management and the prevention of congestion." He said that the full impact of cargo flows would not be visible until April 2026. At this point, no cancellations had been reported. Since late 2023 when Houthi attacks against Red Sea shipping began, ships have avoided the Suez Canal as well as the Bab el-Mandeb Strait. U.S., Israeli and other strikes against Iran and the closing of the Strait of Hormuz has reinforced this?shift. This is leading to expectations that Africa's Bunkering Sector will benefit from the prolonged instability. Aarabi stated that higher fuel costs have added pressure to freight rates because of longer voyages via Cape Good Hope. He said that carriers have implemented war-risk and emergency conflict surcharges between $1,500 to $3,300 for standard containers, with fees as high as $4,000 if the equipment is specialised. Tanger Med?outperformed Mediterranean competitors with 11.1 millions?containers in 2025. This is an 8.4% increase from a year ago. It has route connections to over 180 ports around the world. (Reporting and editing by Susan Fenton; Ahmed El Jechtimi)
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El Pais reports that Spain has closed its airspace to US aircraft involved in the Iran war.
Spain has closed down its airspace for?U.S. Spanish newspaper El Pais, citing military source, reported that Spain has closed its airspace to?U.S. El Pais said that the closure of Spain's airspace does not include emergency situations. The Spanish Ministry of Defence did not respond immediately to a comment request. When asked whether the decision to shut down Spain's airspace would worsen relations with the United States, Economy Minister Carlos Cuerpo replied in an interview to radio Cadena Ser that "this decision is part of the?decision already?made by?the Spanish?government to not participate or contribute to a unilaterally initiated war and against international law." Spanish Prime Minister Pedro Sanchez has been one of those who have spoken out most against the U.S.-Israeli attacks in Iran. He called them "reckless and illegal". Donald Trump threatened to cut off?trade with Madrid if it was denied?the U.S.'s use of?Spanish bases in the war.
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Air China resumes North Korea flights but no longer accepts new bookings
According to Chinese state-run media and tour operators, 'China's Flag carrier' resumed flights on Monday between Beijing, the capital, and Pyongyang, the North Korean capital. However, it has stopped taking new bookings for the route. Chinese state media reported that Air China resumed weekly flights in North Korea for the first since the COVID-19 outbreak. The information was based on the tour operator Young Pioneer Tours. Rowan Beard, from Young Pioneer Tours, said that Air China had stopped accepting new bookings and future flights were not confirmed. He cited his company's communication with Air China. The airline did not respond immediately to a comment request. After the return of passenger trains between the two capitals, the flights between Beijing and Pyongyang were reinstated. North Korea remains largely closed for foreign tourism with a few exceptions. For example, some Russian tour groups are allowed to visit under certain restrictions. Beard said that with tourism non-existent at the moment, it would be much harder to fill these planes with a weekly service. Yonhap News Agency in South Korea reported that only 10 passengers were on the flight from Beijing to Pyongyang. Beard stated that high fuel costs could be another reason for Air China's decision to stop flights into North Korea. Air China's site did not show any future flights between Beijing Pyongyang. Reporting by Liz Lee and Ju-min Park; Editing by Christopher Cushing, Jamie Freed and Shanghai Newsroom
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South Korea is considering nationwide driving restrictions as oil prices rise
Senior officials have said that South Korea may extend driving restrictions to the public if oil prices continue to rise. The authorities are trying to curb energy demand due to supply constraints caused by the U.S./Israeli war with Iran. Koo 'Yun-cheol'said that the government may expand restrictions on the use of passenger cars beyond public institutions if oil prices increase to $120-$130 a barrel, from the current range of $100-$110. The policy, if it were to be extended to all citizens, would mark the first national driving restrictions since 1991, when the government implemented a 10-day rotation system for vehicles to save energy. Koo, speaking on a local radio station, said that if the Middle East situation worsened, the crisis alert level would be raised to the "warning" stage. At this point, we would need to reduce consumption. This is the third-highest alert level of the four-stage system for resource security in Malaysia. He said the government may also consider further fuel tax reductions to ease the burden of households. In a separate press release issued on Monday, the finance ministry stated that a decision regarding mandatory driving restrictions for the private sector was still pending. The authorities will weigh up energy supply conditions as well as broader economic factors prior to taking any action. South Korea imports 70% of its crude oil from the Middle East. This leaves the country vulnerable to disruptions in supply and price fluctuations resulting from tensions. Last week, the government enforced a five-day mandatory vehicle rotation system in the public sector. This restricted vehicle use according to licence plate numbers. Energy Minister Kim Sung Whan stated last Thursday that authorities would review tighter demand management measures if the alert level rose further. This included a wider enforcement of driving restrictions, and encouraging voluntary participation from companies and financial sectors. Conglomerates like Samsung Electronics, SK Group and others have joined this?effort and urged their employees to reduce the use of private cars and adopt 'fuel-saving measures. Senior politicians and lawmakers have also posted on social media about the use of public transport and bicycles as an example, and called on the public to join in energy-saving efforts.
The war in Iran forces Asian economies to deal with a sagging currency and a surge in oil prices
The Asia-Pacific region is facing its toughest test yet since the COVID-19 Pandemic. There are few options available to policymakers as they try to protect their economies from an energy shock which is hitting them harder and earlier than anywhere else.
Asia purchases about 80% of oil shipped through the Strait of Hormuz. According to commodity analysts at J.P. Morgan, shortages are expected to worsen in April and May, meaning that authorities will have to act quickly.
Diesel prices have tripled in Manila for 'drivers' of jeepneys, colourful minibuses with a lot more power. Vietnam is facing a jet-fuel shortage, and South Korea's leading cosmetics companies are looking for plastic resin in order to manufacture the pots which hold their skincare products.
The U.S. and Israel war against Iran in Asia will likely lead to higher inflation and a slower growth rate, just as it has in other parts of the world.
Asian currencies, some of which were already in trouble, have been heavily sold. This has made them the biggest losers worldwide. The Asian financial crisis is resurfacing and policymakers are faced with a difficult choice: raise rates, spend reserves or watch their currencies fall further.
This month, the rupee of India, the rupiah of Indonesia, and the peso de Philippines have all reached record lows in relation to the dollar. The yen, too, has also hit a new low.
"The main problem is that Asian currencies were too strong before," said Alicia Garcia Herrero Asia-Pacific Chief?economist of Natixis, Hong Kong.
She said, "The central bankers... do not have any instrument."
"The economy is going to crash and they can't cut any more, not just because of inflationary pressure but also because they have already cut so many times."
The dollar has been one of the few safe havens for the past month, and it's reached historic highs. It is up more than 4% versus the won, the peso, and the Thai baht, compared to a gain of only 1.5% against the euro.
No Easy Options
The problem is that there is no easy solution, not least because the options other than importing more oil do not actually solve the squeeze. This is already affecting prices of plastics and fertilizers.
In response to higher rates, you risk slowing down an economy at a time when it is most in need of support. Subsidizing fuel is expensive, and bond investors may not like such a move in countries or emerging markets with budget pressures. Direct currency interventions can be risky and costly in volatile foreign exchange markets.
Sonal Varma is Nomura's Asia Outside Japan chief economist.
Varma stated that "whether it is the role of currency (or) monetary policy, fiscal policy," Varma. There will be macro variables which will have an impact.
"Each country must decide what the best trade-off is for their own local situation."
Australia has increased interest rates so far since the war started in late February. Authorities in other parts of Asia-Pacific rely on currency intervention, guidance and unconventional tools to help cushion rising petrol prices and stabilize financial markets.
Last week, it was reported that South Korea has turned to its huge national pension fund to increase its hedging and protect the won. India and Indonesia are defending their currencies, and changing the way their markets work. India has capped banks' currency positions while Indonesia opened a repo marketplace for short-term dollar.
Japan has renewed its intervention threats. The yen is not far from a four-decade low. Meanwhile, the Philippines declared a state emergency and let their currency fall to a new record low. They also held a surprise policy meeting last week, warning that they were ready to act.
Fred Neumann is the chief Asia economist for HSBC Hong Kong.
"I believe there is a growing recognition in Asia that you cannot really change the fundamental course of exchange rates. You can only lean against the wind.
Most of Asia has healthy foreign exchange reserves. There are no parallels to the dollar debts and pegged currencies that drove capital out nearly 30 years ago.
According to the most recent data available, India had approximately $698 billion of reserves on March 20. This would cover more than 11 months of imports. Indonesia and the Philippines have each more than six months worth of foreign currency import cover.
Analysts say that central bankers must be creative to counter the strong dollar demand due to the haven effect.
Neumann, from HSBC, said that policymakers need to be more agile. "Having unscheduled meeting and having frequent communication with market is likely helpful."
In an environment such as this, you don't want be dogmatic. You must be very clear. "You need to be clear in your assessment."
(source: Reuters)