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US fuel exports to Cuba cause chaos on the black market
Gasoline for $38 per gallon is sold in cramped apartments. Diesel is marketed on Instagram with reggaeton music by a celebrity. Cuba's communist sector of energy is experiencing capitalist cracks six decades after Fidel's revolution. The exception to Washington's crippling oil embargo on Cuba that allows U.S. companies to export fuel to Cuban private businesses has triggered a black market, and lifted the lid of an energy sector tightly controlled since Dwight Eisenhower occupied the White House. After the U.S., oil shipments to Cuba from its traditional suppliers Venezuela and Mexico abruptly ceased. ousted Venezuelan President Nicolas Maduro in January. U.S. Coast Guard cutters are patrolling the waters near Cuba while sanctions and threats have discouraged tankers from setting sail. The embargo hampered essential services run by the state, such as healthcare, public transportation and schools. Under the Commerce Department's exception, however, only a small amount of fuel is now reaching restaurants, retailers, and taxis. This is the first time that U.S. fuel has been landed on the Caribbean Island since Castro nationalized the refineries following the 1959 Revolution. It is not possible to determine which U.S. oil companies are shipping fuels to Cuba. However, there are no signs that major oil traders have been involved. Some of the fuel is sold on the black-market, allowing those with the means to maintain their gas tanks and home generators. This helps the public transport system, rolling blackouts and the faltering water supply in the country. The new system, while providing some relief to the poor, is increasing wealth disparities. Amarilis Sánchez, 53, spent hours waiting at a Havana bus stop on a recent afternoon in July. She had come to Havana to celebrate the birthday of her daughter, but was now losing hope that the bus, which costs 2 pesos to take home, would arrive. A few taxi drivers were leaning against antique cars across the street. Ismael, one of the taxi drivers, offered to take Sanchez but said the trip would be 1,000 pesos. This is 500 times more than the bus because of the black-market price of diesel and gasoline, the fuel that many Cuban cars run on. Sanchez, who is unemployed, could not afford to do this. She said that her plan was for her to wait until the sun went down and if it didn't arrive, she would sleep at the house of her daughter and then return the next morning. Backroom Deals and Social Media Ads While the 900k barrels of U.S. Fuel imported between February and May were only enough to meet the country's needs for energy for nine days, they have led to "big" changes. Reporters found this out during their visits to legal wholesalers and black market distributors as well as in discussions with business owners and economists. Havana fell into darkness when the national grid failed just before 11 pm on a Sunday night this month. However, generators powered by imported fuel kept a few shops and restaurants lit. In plain view, a thriving resale marketplace has sprung up. Another day, in a central Havana convenience store stocked with sodas, beer, and crackers customers played pool at the entrance. The shopkeeper keeps gasoline in a large room at the back of the store. She sells it for $5 per liter, or $19 per gallon. In a nearby tenement, a man, who advertised gasoline on Facebook, hoards it in his tiny apartment, despite the dangers of fire, explosions, and toxic fumes. WhatsApp groups dedicated to the illegal sale of fuel have become widespread. The black-market price peaked this spring at a staggering $10 per liter ($38 for a gallon), before falling as imports increased. In February, in an effort to avoid the paralysis caused by the oil blockade the government allowed private companies to import fuel to use themselves. Cuban legislators approved in June a comprehensive package of economic reforms to open the energy sector up to foreign and private investors. Although this package is not yet fully implemented, it was approved by Cuban lawmakers in June. The reforms would open up the energy sector to private and foreign investors. In a social media viral advertisement for such a company, a model who is the ex-girlfriend a Cuban reggaeton singer struts around a warehouse full of industrial bulk containers filled with diesel while Daddy Yankee's "Gasolina", a hit song by Daddy Yankee, plays in the background. A spokesperson from the company that created the advertisement, A Granel said they only sell to registered private businesses. The company charges $2.50 per liter for a 940-liter tank. CUBA GAS STATIONS UP TO GRABS? Manuel Marrero Cruz, Cuba's Prime Minister, said that the island has now approved its first foreign investment project to import and sell fuel. He did not name the company. Cuban law prohibits companies from reselling fuel imported without express authorization. Cuba has not yet approved retail sales despite the reforms that indicate private companies may be able soon to operate some of the distinctive Cupet red and green gas stations. Oniel Diz, the founder of Havana's consulting firm Auge, stated that some state-run gas stations store U.S. gasoline, which they can only disburse to vehicles registered with specific private companies. Cuban authorities have not responded to requests for comments. On July 29, President Miguel Diaz Canel denounced Washington's "genocidal" siege of the island. He said that economic reforms weren't undertaken to please Washington, and vowed no "massive Privatization of National Assets." State Department Spokesperson Tommy Pigott responded to questions by saying Washington acknowledged "the significant humanitarian need" of Cubans while accusing Cuban officials of incompetence, and diverting resources without providing any evidence. He stated that private businesses, diplomatic missions, and?NGOs can import fuel from the United States. However, he did not address questions regarding the impact of U.S. policies on Cuba's high prices and black market. The average monthly government salary is only $10 (roughly 6,700 pesos), so imported fuels are out of reach for most of the 9 million islanders. Fuel sold on the blackmarket is illegal in Cuba and violates U.S. export regulations, which state that fuel can only be used by the private sector and not the Cuban government. Jorge Pinon, an energy expert and former oil executive from Cuba who works at University of Texas at Austin, stated that "it looks good on paper but there is no monitoring of the people's compliance" with the restrictions. The news agency was not able to determine the amount of U.S. gasoline that reaches the black markets, nor could it find any evidence that the fuel ended up in Cuban officials' hands or government sanctioned entities. Diaz stated that other countries such as Mexico and Panama have also exported small amounts to Cuba's Private Sector in recent months. STATE CONTROLS GAS STATIONS AND PORTS Fuel destined for U.S. private buyers is currently required to pass through state-owned ports and storage tanks controlled by entities sanctioned by the U.S. Diaz says that private Cuban companies enter into service agreements for the use state infrastructure with these entities, paying?11 cents per liter. No evidence was found that fuel was diverted in this process. Jeremy Paner is a former U.S. Treasury Department Investigator who advises businesses. Cuba has said it will continue to relax restrictions and encourage private investment but it is unclear how far these reforms will extend. Mayra Espina is a Cuban sociologist who specializes on poverty. She says that the few supplies of expensive U.S. gasoline don't even begin to compensate for the volume of fuel Trump's embargo has kept out. She said, "It has at least prevented the country from being paralyzed completely." For the vast majority who depend on public services, "it increases and entrenches inequalities." Reporting by Laura Gottesdiener in Havana and Ayose Naranjo in Mexico City. Claudia Parsons edited the piece.
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AirBaltic, a Latvian airline, is considering converting its debt into equity and has requested EUR225 million in interim funding
The Latvian state-controlled carrier airBaltic has asked bondholders to allow it to secure EUR225m interim financing in order for the airline's near-term liquidity requirements. It is doing this as a way of securing its finances and avoiding default. The company stated that the plan was to "strengthen the airline on a long-term basis". It added that the flight schedule would be maintained as usual. According to airBaltic, Lufthansa has a 10% share in the company. The proposal is dependent on bondholder approvals and other approvals. The company also said that it proposed a permanent funding package, which "contemplates", the?bondholders converting part of their EUR380 million bonds into shares, and the remainder of the bonds being replaced by new debt, up to EUR125 millions. AirBaltic said that its other unnamed obligations will also be converted into equity. The revised business plan calls for a fleet of all Airbus A220-300 aircraft to be reduced from 54 to 36 by the end of 2026 and then gradually increased to 40 by 2030. In the previous plan, it was anticipated that the fleet would grow to 100 planes by 2030. The company expects that "more efficient operations" will generate EUR45 million per year. AirBaltic said that it plans to "recapitalise" EUR225 million in new debt financing, and EUR100 millions of?new equity. AirBaltic’s financial struggles highlight the structural problems that some airlines have faced since the U.S./Israeli war against Iran began. The company had planned to ask bondholders for short-term funding at an August 3 meeting. However, the meeting was postponed when bondholders did not show up. The Latvian public broadcaster LSM reported that a new meeting was scheduled for three days after the interest payment due August 14. Andris Kuulbergs, the Prime Minister of Latvia, said last month that the government was in negotiations with a strategic shareholder to put the company on a "sustainable footing". Fitch Ratings said last month that airBaltic’s capital structure was not sustainable. It included leased aircraft as well as a "very expensive bond", due in 2029. (Reporting and editing by Keith Weir in Vilnius)
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Farmers union: Ukraine grain exports drop to meager levels in August
The?exports of Ukraine's wheat and?barley were very low?over the period August 1-10, after Russian attacks?effectively?shut?Black?Sea?ports, said?traders? at a major farmer's union on Tuesday. Both Ukraine and Russia have intensified their campaigns against logistic targets. E-commerce warehouses and Ukrainian petrol stations were targeted heavily this summer. In recent weeks, Russia has attacked Ukrainian Black Sea port terminals, vessels and export terminals almost every day. UAC's trading department, the largest farmers' union in the country, reported that Ukraine had exported a total of 122,000 metric tons (tonnages) of wheat, and 1,160 ton (tonnages) of barley between August 1-10. This is only 6% the total exports of wheat and barley for 'last August. In a report published every week, UAC said that "wheat and barley will be extremely difficult to export in August and Septembre." Ukraine exports significant volumes of barley, wheat and other grains in the first few months following harvest. 90% of Ukraine's agricultural exports are handled by the Odesa hub. The Agriculture Ministry?said?this month that losses to the agriculture sector could reach $3 billion. (Reporting and editing by David Goodman, Pavel Polityuk)
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What has been attacked by Ukraine in its attacks on Russian energy sites?
Ukrainian forces have intensified their strikes against Russian energy infrastructure, among other targets. Kyiv claims that this is part of an effort to deny Russia the resources it needs to fund its military. Here is a list of recent attacks and their impact, starting with the latest: ORSK On Tuesday, the Ukrainian military announced that it had attacked the Orsknefteorgsintez refinery located in Orsk. Orsk is the second largest city in Orenburg and an important industrial center. The refinery has a design capacity of around 6 million tons of oil per annum. ZapSibNeftekhim Ukraine’s special forces announced on August 10 that their drones hit the ZapSibNeftekhim plant in Russia’s Tyumen Region. Sibur Holding's ZapSibNeftekhim plant has a total design capacity of 2.5 million tonnes per year. TANECO The Ukrainian military attacked the TANECO oil refining plant owned by Tatneft, a Russian company. TANECO will process 17 million tons crude oil by 2024. ILSKY Following a drone attack by Ukraine, a fire broke out in the Ilsky oil refining plant and five people were injured in southern Krasnodar, the local authorities reported on August 8. The fire was then extinguished. Local officials reported on July 10 that the Ilsky refinery was set ablaze by a drone. The design capacity of the refinery is more than 6 million metric tonnes of oil per annum. YAROSLAVL The Yaroslavl Russian refinery, located about 250 km (160 mi) northeast of Moscow was on fire after a large Ukrainian drone attack on August 6, but emergency crews were able to extinguish it later, according to regional governor Mikhail Evrayev. On July 27, Ukrainian President Volodymyr Zelenskiy announced that Ukrainian forces had attacked Russian oil installations in Yaroslavl. The Yaroslavl refinery has a processing capacity of up to 15 million tons per annum. VOLGOGRAD A drone attack on the Volgograd refinery has caused a complete shutdown of crude oil processing, according to two sources in the industry. Five people were injured in the Volgograd area after a drone attacked an energy facility. Regional governor Andrei Bocharov did not provide further details about the damage. The Lukoil owned refinery will process 13.5 million tonnes of oil in 2024. SARATOV On August 2, the military in Kyiv reported that Ukrainian forces had attacked the Rosneft owned Saratov oil refining plant located in southwest Russia. Two sources claim that the Saratov oil refinery in Russia stopped processing oil on August 2, following this attack. The plant will process 5.8 million tons of oil in 2024. RYAZAN Russia’s Ryazan refinery, which is one of the largest in the country, halted crude processing on July 29, following a drone strike, and two industry sources said that it could close for up to two weeks. In 2024, the refinery will process 13.1 million tonnes of crude oil. Two industry sources said that a Ukrainian drone attack at Lukoil’s Perm refinery caused an fire which damaged and forced the closure of one of their crude distillation units. By 2024, it is expected that the refinery will process approximately 12.6 million tonnes of oil. TYUMEN On July 25, Russian authorities reported that a Ukrainian drone struck the Tyumen refinery, causing a fire. The fire was extinguished later. Sources said that the refinery stopped operations following the attack. The plant processes approximately 6 million tonnes of crude oil per year. Industry sources reported that the Salavat complex in Bashkortostan's Urals region halted its operations on 14 July following an attack by a Ukrainian drone. AFIPSKY A fire has broken out at the Afipsky refinery, located in southern Krasnodar Region of Russia. The cause was drone debris that fell from the sky. The refinery is capable of processing over 9 million tons of oil each year. SYZRAN According to industry sources, the Russian oil refinery Syzran on the Volga River in the Samara Region halted its operations on July 12 after a drone strike damaged a primary unit. The Rosneft refinery was also attacked by Ukrainian drones on May 21. After the attack, which damaged a primary unit of processing, the refinery stopped operations. The refinery had suspended operations after the attacks of April 18. The refinery can process 8.5 million tonnes per annum. OMSK On July 6, Ukrainian drones attacked the Omsk'refinery,' causing a fire. The Russian air defences destroyed the majority of drones, said Vitaly Khotsenko, the Governor. The extent of the damage to the refinery was not immediately known. The design capacity of Omsk's oil refinery is about 22 million metric tonnes of oil per annum. NORSI Ukrainian drones struck NORSI, Russia’s fourth largest oil refinery owned by Lukoil for the second time on 2 July and crude processing has been?suspended', according to sources. The attack damaged CDU-6 which can process 25700 metric tonnes per day. This is 53% of refinery capacity. NORSI is Russia's largest?producer? of gasoline. It can process up to 16 million metric tonnes?of oil each year. UFA Ukraine forces attacked an oil refinery a second-time on 1 July in Ufa near the Ural Mountains. The refinery is capable of processing more than 7,000,000 tons of oil annually. MOSCOW According to sources, the operations of the Moscow oil refinery were halted after an attack by a Ukrainian drone on June 16. On June 18, another attack caused damage to processing units and multiple fires. The Kapotnya district in the south-east of the capital has a capacity of 11 million tons per year. Ports/Oil Facilities Drone attacks on the Black Sea in July affected as much as one fifth of the Caspian Pipeline Consortium's (CPC's) oil loadings, according to four sources who are familiar with the figures. The Russia-Ukraine conflict also impacted the sales of western and Kazakhstani oil majors. Kyiv’s security service reported on July?25 that Ukrainian drones had struck the Filanovsky platform owned by Russia's Lukoil LKOH.MM, in the Caspian Sea. Volodymyr Zelenskiy, the President of Ukraine, said that Ukraine had struck two Russian oil storage depots located in Tver and Stavropol, which are both about 500 km away from the front lines. On July 8, Ukrainian drones'struck the Krasnodarskaya Pumping Station, which is part of the natural-gas supply chain from Turkey to Ukraine via the Blue Stream Pipeline, but the gas supply was not affected. Kyiv reported on July 8 that Ukrainian drones had struck an oil pumping facility in Russia's Bashkortostan Region, which is more than 1,500km from the border. Authorities said that Ukrainian drone attacks in Sevastopol (home to Russia's Black Sea Fleet) and Vysotsk, both Baltic Sea ports, caused damage on July 6. Authorities reported on June 8 that a drone strike caused a fire to break out in a loading complex at the Black Sea port city of Novorossiysk. (Reporting and Editing by Timothy Heritage).
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Phillips 66, Kinder Morgan, HF Sinclair approve $5 billion Western Gateway project
Phillips 66?Kinder Morgan & HF Sinclair announced on 'Tuesday that they had decided to move forward with the $5 bn Western Gateway Pipeline -system. They also finalized a joint venture agreement. Phillips 66, Kinder Morgan and HF Sinclair will each own 49.9%. Companies are racing to build an important new fuel pipeline for the U.S. West Coast ahead of planned refinery closings in California. This is a relatively 'isolated'?fuel market, with limited connections to major refining centers that leaves it?vulnerable? to supply disruptions and spikes in price. Western Gateway is proposed as a 1,300-mile refined product pipeline system with a capacity of 230,000 barrels a day. It would create a new fuel supply route between St. Louis Missouri, Gulf Coast origin points and Arizona and California. Phillips 66 Gold Pipeline which runs between Borger, Texas and St. Louis will be reversed in order to supply the proposed East-to-west'system', as well as Kinder Morgan's current pipeline between Colton California and Phoenix Arizona. Kinder Morgan will contribute its SFPP 'East Line' and SFPP - West Line assets to the joint venture after it completes a new pipeline connecting Borger with Phoenix. The value of these assets is estimated at $1.5 billion. Phillips 66 will provide nearly $2.5 billion as cash to the project, which is estimated to have a?enterprise worth of $5 billion. Kinder 'Morgan and HF Sinclair will each contribute approximately $250'million. They added that the new system was based on a 10-year take-or pay contract. (Reporting and editing by Jonathan Ananda in Bengaluru)
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Venture Global misses its quarterly forecasts as lower LNG prices and higher costs weigh
Venture Global missed analyst's estimates on Tuesday for a?quarterly profit and revenue at its Calcasieu Pass?facility?as lowered LNG prices and higher borrowing and operating costs offset the stronger sales volumes from its Plaquemines?project. The shares of the LNG Company fell by about 7% during premarket trading. According to LSEG data, Venture Global reported a second-quarter adjusted core income of $2.49billion, which is slightly less than the analysts' expectation of $2.50billion. The second quarter revenue rose by 48%, to $4.58 Billion. However, it fell short of expectations at $4.66 Billion. Calcasieu’s operating income dropped 63% from the previous year due to lower U.S. Natural Gas prices and a decrease in facility fees after it began commercial operations. Interest expense increased 58%, to $489 millions. Operating costs rose by 15.9% to 2.39 billion dollars. GROWTH?DRIVES OUTLOOK Venture Global's growth was largely driven by Plaquemines as it continued to commission and ramp up production. In the third quarter, sales of LNG by the company grew 42%, to 466.4 trillion British Thermal Units (Btu). The Middle East conflict, coupled with the growing demand in Europe has boosted interest in U.S. LNG. This has led buyers to look for long-term contracts. The global market is also benefiting from new export projects. Venture Global has raised its adjusted core profit forecasts for 2026, the second consecutive quarter, from $8.2 billion to $8.5 billion. The company has also increased its Calcasieu forecast from 147 to 154 cargoes and reduced the Plaquemines forecast from 349 to 369 cargoes. Venture Global now expects fixed liquefaction charges of $12.50 to $13.50 per million Btu, up from $9.50 to $10.50 previously. The U.S. Liquefaction Fees are a major source of income for the U.S. Long-term contracts are the main way LNG exporters secure their revenue. Operators can, however, adjust certain pricing elements to reflect global market conditions. (Reporting and editing by Leroy Leo in Bengaluru, Sumit Saha)
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Source: India summons Air India's CEO to explain the altitude loss of the flight between Phuket and Delhi
A source with first-hand knowledge of the situation said that India's civil aviation minister summoned Air India CEO Campbell Wilson after a flight from Phuket to Delhi suddenly dropped 300 feet in altitude. Air India and the Minister's Office did not respond immediately to'requests for comment. The Indian authorities launched an investigation days before the government's move. Air India reported that the flight from the 'Thai tourist town experienced a'momentary elevation variation' while flying over Odisha in eastern India, resulting in injuries for 13 passengers and four crew members. The aircraft carrying 137 passengers and eight crew members safely landed in Delhi. The Indian civil aviation ministry announced on Sunday that the captain returned an initial screening result for psychoactive drugs, prompting additional laboratory testing. Air India claimed that it had not been informed of the results. (Reporting and Writing by Abhijith Gaapavaram; Editing and Proofreading by YP. Rajesh).
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Sources: Cargo ship is attacked in the Red Sea
Two?Yemeni?coastguard sources and two government military officials confirmed that a?small cargo vessel was attacked by Houthis, who are allied with Iran, in the Bab El-Mandeb Strait on Tuesday, killing three crew members. Sources in maritime security said that a small cargo vessel was believed to be a target of the Red Sea. However, the fate of the crew is still unknown. If confirmed, if the?Tihamah flying the flag of Tanzania is hit by a Houthi attack on a ship it would be the first death in a Houthi attack on a'ship since the Middle East conflict began with U.S. and Israeli attacks on Iran towards the end of February. In response to what the Houthis described as a Saudi-led siege, they declared a blockade of?Saudi Arabia's naval forces in the Red Sea last month. Riyadh has denied that it has besieged Yemen. Yemeni sources say that the Houthis has not claimed responsibility for the attack which killed two Pakistanis and one Indonesian on the boat leaving Salalah, Oman via Djibouti. The closure of the Strait of Hormuz has already caused a lot of uncertainty to?shipping firms? Kpler data revealed that an average of 32 ships a day traversed the Bab el-Mandeb strait in the last week. Before the blockade, an average of 50 ships per day traversed the strait.
After Marine One's close call, the U.S. Transport secretary is working to fix telecom problems.
Sean Duffy, the U.S. Transportation Secretary, said that he is working to fix telecom issues raised?after? a military helicopter with President Donald Trump sped too close last week to a departing passenger jet at Reagan Washington National Airport. The incident raised serious concerns about why the passenger plane?was allowed?to depart while Marine One was near, at a time when commercial traffic is usually halted.
After a crash in January 2025 between a military heli and a commercial plane that killed 67, the Federal Aviation Administration banned mixed helicopter and jet traffic around the airport.
Duffy, a reporter at Newark Liberty International Airport, said that there had been "some telecom issues".
He said that the FAA is now working on a fix for the White House.
Duffy and FAA Administrator Bryan Bedford addressed the media at the New Jersey Airport for a?event that marked the installation of a surface?movement?radar?used to increase runway safety. After a series failures, including major outages affecting Newark and Washington traffic and an FAA radar surveillance system that failed in 2023 and forced a nationwide ground stop, the FAA will spend billions replacing outdated 'air traffic control telecom infrastructure' and radar.surveillance systems.
(source: Reuters)