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Russian grain exports via Baltic Sea will increase by 30% in 2025.
The Federal Centre for Agriculture Products Safety Evaluation reported on Monday that Russia's grain exports to African countries have increased 30% in the past year. Russia, which is the world's largest wheat exporter and has expanded its Baltic Sea ports, intends to diversify agricultural exports, reduce its dependence on Black Sea routes where Ukraine has attacked shipping infrastructure. The data shows that grain exports this year from Baltic Sea ports totaled 1.3 million tons as of November 12. Of these, 42% went to Africa. The data showed that 93% of all grain exported from these ports was wheat. In Africa, grain was sent from Baltic Sea ports to Morocco, Nigeria and Egypt. It also went to Senegal, Togo Tunisia, Algeria, Cameroon, Togo, Togo and Togo. In recent years, Russia opened two major ports in the Gulf of Finland near St. Petersburg, Vysotsky, and Lugaport. These ports can handle up to 15 millions metric tons of cargo per year. The Russian government plans to export 50,000,000 tons of grain during the marketing season 2024/25 (July - June). Rusagrotrans data shows that exports have been low due to a glut of global harvest and low prices. (Reporting and editing by Susan Fenton; Gleb Bryanski)
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India's power regulator warns of grid violations in renewable energy projects
India's power regulator asked grid operators on Monday to crackdown on renewable energy projects which fail to meet technical specifications, warning that persistent offenders could be disconnected in order to protect grid stability. The Central Electricity Regulatory Commission said that solar and wind power plants' repeated failure to comply with ride-through standards for low-voltage and higher-voltage systems caused them to suffer from generation losses, and their frequency dropped during fault events. Grid safety regulations require that wind and solar power plants remain connected to the grid during voltage spikes and dips due to faults. This prevents them from tripping off and causing grid disturbances. This case highlights the growing concern over grid security in India as it accelerates its renewable capacity additions in order to meet its 2030 clean-energy targets. The petition was filed by the Northern Regional Load Despatch Centre. It stated that several renewable generators had repeatedly failed to comply despite numerous meetings and reminders. The regulator has noted that only two generators, including Adani's hybrid project, have met the full compliance requirements so far. Others have not yet submitted mandatory self-audit reporting. The CERC instructed the Northern Regional Load Despatch Centre (NRLDC) and Central Transmission Utility of India (CTUI) to convene a high-level conference and develop a procedure for addressing persistent violations. This could include the disconnection of generators. The regulator has also requested a new compliance review, detailed reporting of grid events and noncompliance rates. (Reporting and editing by Shreya Biwas; Sethuraman N.R.
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Sanad, Abu Dhabi's Sanad, sees an opportunity in the global aircraft engine crunch
Sanad Aerotech, an Abu Dhabi-based aerospace engineering company, said Monday that it was benefiting from the global shortage of aircraft engines. The firm reported a growing backlog as well as a rapid expansion to new platforms. Airlines are scrambling for spare engines and maintenance capacity. Since the pandemic, global engine makers such as Pratt & Whitney, CFM and others have faced parts shortages and manufacturing issues. This has left airlines with grounded aircraft, and increased reliance on MRO providers like Sanad, who manage shop visits and supply chain bottlenecks. A severe shortage of fuel-efficient engines from the next generation has changed the economics of the market. Some engines can be worth more than their aircraft when sold as spares. Mansoor Janahi, CEO of Sanad (which specializes in MRO), said that the shortage has provided an opportunity. Sanad added 16 new airlines customers this year. The company is backed by Abu Dhabi’s sovereign wealth fund Mubadala ($330 billion), which said that its backlog had increased by 5 billion AED (1,36 billion dollars) to more than 38 billion dirhams (10,35 billion dollars) by the end of June. This was due to demand from airlines who are experiencing supply-chain restrictions. Sanad services engines such as the Rolls-Royce Trent 700, IAE's V2500 and General Electric's GEnx. CFM International's LEAP-1A/LEAP-1B and LEAP-1A/LEAP-1B are also used in Airbus A320neo or Boeing 737 MAX. The company is planning to expand with a new facility that will be tailored for Pratt & Whitney engines GTF1100 GTF1500 GTF1900. ($1 = 3.6729 UAE Dirham) (Reporting and Editing by Frances Kerry).
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Lukoil is planning asset sales, and Teboil in Finland expects a change in ownership.
Finland's Teboil announced on Monday that it expects Russia’s Lukoil will divest its Finnish petrol station chain as part of Lukoil's ongoing efforts to sell foreign assets. The United States imposed sanctions on Lukoil last month over Moscow's involvement in the war in Ukraine. On Friday, the Trump administration gave potential buyers permission to speak to the Russian firm about purchasing its non-Russian assets. Teboil announced in a Monday statement that Lukoil was currently engaged in active negotiations to sell its foreign assets. Teboil stated that "as a result" of the negotiations it was expected that ownership of the firm would change in the near future. Last month, the Financial Supervisory Authority of Finland said that banks and other Finnish financial institutions are subject to its regulation should be cautious when dealing with Lukoil or companies owned directly or indirectly by it. Helsingin Sanomat, a Finnish newspaper, reported on November 7 that a Teboil representative later stated the chain could run out of fuel because of the U.S. Sanctions. According to Teboil's website, the company is owned by Lukoil and has 430 Finnish service stations. This represents about one fifth of all 2,250 stations in the Nordic countries, according to an industry report from 2024. (Reporting and editing by Terje Solsvik, Anna Ringstrom)
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Trafigura's $600 Million Nickel Fraud Trial Starts in London
Trafigura, a commodities trader in London, filed a $600 million lawsuit against Indian businessman Prateek gupta for fake nickel cargoes on Monday. The commodities trader claimed it was a victim of a fraudulent Ponzi scheme. Trafigura, a Geneva-based company, alleges Gupta is the mastermind behind a fraud where he and his firms agreed to deliver high-quality nickel 99.8% but delivered low-value materials or even worthless material instead. Gupta admits that he didn't deliver high-grade cargoes of nickel, but claims that Trafigura employees devised the scam. They came up with a complex web of transactions to appear as if they were boosting Trafigura's standing in nickel trade. Gupta’s lawyers have filed court documents stating that the scheme involved over 500 trades worth $3.3 billion. The events began in November 20, 2022 when Trafigura received the first complaints regarding cargoes that it sold. 'SYSTEMATIC FRAUD' Trafigura, after receiving concerns from the public, inspected containers in Rotterdam which were supposed to be containing high-grade Nickel. The company's lawyers claim that after the inspections, they found the containers contained carbon steel which was worth only a fraction the value of nickel. Trafigura carried out additional inspections and billed $590 million for the discovery. It then sued Gupta's companies and Gupta in February 2023, claiming "systematic fraud". Nathan Pillow, Trafigura's attorney, said to the High Court Monday: "Trafigura bought rubbish and suffered losses of hundreds of millions of dollars." Trafigura is left with metal that's "worth about 2% of the price we paid" after recovering $10 million in trades valued at more than $500,000,000, Pillow stated. GUPTA DEFENDING CASE Gupta’s lawyers claim that Trafigura executives knew about the deal to "borrow" cheap money from Citi, and then "advance" it to Gupta at a higher rate of interest. In court documents, his lawyers claimed that as long as "the circle kept spinning", all parties involved gained and "nobody was hurt". The COVID-19 virus and Russia's invasion of Ukraine in 2022 sent nickel prices skyrocketing. However, the scheme collapsed when Citi began to push for the return of the cargoes. Trafigura's lawyers say that Gupta's and his companies' defense is "a fiction created after the fact by admitted fraudsters". Gupta is still subject to an asset freezing order, which Gupta tried to lift unsuccessfully in December 2023.
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China's C919 rivals Boeing and Airbus makes its debut outside Asia
China made its Middle East debut of its C919 jetliner at the Dubai Airshow, Monday. It was its first time outside East Asia. The display showcased plans to compete against Airbus and Boeing. The C919 aircraft in white with blue and green detailing took off around 3:30 pm local time (1130 GMT). It made several circle passes in the air before safely landing on the Al-Maktoum International Airport runway tarmac. COMAC, a Chinese aircraft manufacturer, has ambitious plans to compete with the dominant Western manufacturers Airbus & Boeing and their smaller Brazilian competitor Embraer. COMAC's C909 and C919 planes lack certification from Western regulators. They are therefore looking to other markets in order to boost their profile. C919: CHINA’S ANSWER FOR THE BOEING MAX 10, AIRBUS A321NEO On Monday, at the Airshow in London, hundreds of people waited to see the C919 aircraft parked alongside other aircraft. The pilot was seated in the cockpit of the C919 and talked to visitors about how he operated it. COMAC has developed plans for an aircraft family. Visitors took pictures of a C919 stretched variant at COMAC's stand in the main airshow exhibition hall. The aircraft, COMAC stated, would carry 210 passengers, and service the Asia-Pacific region. The longer version is aimed at the Airbus A321neo, and Boeing's 737 MAX 10 – the top end of single-aisle markets where Airbus and Boeing are battling it out for the most highly contested orders. COMAC displayed the regional C909 on the tarmac. This plane was China's very first jet-engined aircraft to enter commercial production in 2016 and enter service. So far, neither model has been a big global success. CHINA TAKES ON THE LAST BASEMENT OF WESTERN MACHINING COMAC also showed materials outlining the C929 wide body jet, originally developed with Russia but now solely driven by COMAC. However, there were few technical details. COMAC officials declined comment on their company's participation at the airshow, and stated that there was no planned media engagement. COMAC stated in a press release that it is "committed to open collaboration and looks forward building stronger and closer relationships with global partners and customers." Gulf countries enjoy strong ties with China. It is the largest trading partner of both Saudi Arabian and UAE. They have also welcomed Chinese firms' cooperation in the past few years in areas such as manufacturing, construction, and technology. Analysts don't expect China to capture a significant share of the global jet industry beyond deals with supporting countries anytime soon, but they say that its presence is a signal of its intention to penetrate one the last bastions for Western manufacturing. Stephanie Pope, CEO of Boeing Commercial Airplanes, welcomed COMAC to one of the industry's most prestigious events. She pledged that the company would maintain its edge by continuing innovation. Competition is good for the industry. Boeing benefits from it. "It makes us better as a whole," she said. (Additional reporting and editing by Adam Jourdan, Joe Bavier, and Tim Hepher)
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Low-cost carrier AirAsia X plans new long-haul European routes, CEO says
Benyamin Ismail, CEO of Malaysian low-cost airline AirAsia X who recently launched flights to Istanbul said that the company plans to launch more long-haul European routes in 2019. AirAsia X started flying directly to Istanbul from Kuala Lumpur starting November 14. The airline's return to Europe was a result of a restructuring process after it suffered a severe blow during the COVID-19 epidemic. AirAsia X operates four flights a week between Istanbul, Malaysia and Kuala Lumpur. The airline offers more than 150 000 seats per year. Ismail said on the sidelines a press event in Istanbul that the airline aims to increase the number of flights to daily between the two cities. Ismail stated that AirAsia X will connect Asia with European cities via Istanbul, and introduce other long-haul flights to Europe in an effort to expand AirAsia's footprint outside Asia. He said, "At the very least, one or two cities per year." He didn't say what European destinations the company is considering.
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Trafigura's $600 Million Nickel Fraud Trial Starts in London
Trafigura filed a $600 million lawsuit against Indian businessman Prateek gupta in London's High Court over fake nickel cargoes on Monday. The commodities trading company claimed it had been the victim of an extremely large fraud. Trafigura, a Geneva-based company, alleges Gupta is the mastermind behind a fraud that it discovered in November 20,22 when it examined some containers that were meant to contain high grade nickel. Trafigura inspected the containers and found that they contained carbon steel, which was worth only a fraction of what nickel is worth. Trafigura then carried out more inspections and incurred a $590-million charge. In February 2023, Trafigura sued Gupta's companies. Gupta admits that the supposedly high-grade nickel cargoes contained low-value material, but says Trafigura employees devised the plan. The parties then traded the difference in price between the cargoes. He claims Trafigura created a complex web of transactions, totaling more than 500 trades worth $3.3 billion. Trafigura's lawyers say that Gupta's and his companies' defense is "a fiction created after the fact by admitted fraudsters." Nathan Pillow said that Trafigura had paid for garbage and suffered losses of hundreds of millions of dollars. Trafigura is left with metal that's "worth about 2% of the price we paid" after recovering $10 million in trades valued at more than $500,000,000, Pillow said. Gupta and former Trafigura executives are expected to testify during the five-week trial.
Unsolved ship crash off UK coast sparks race for answers
Three shipping and insurance sources told Reuters that the collision between a tanker transporting jet fuel to the U.S. Military and a container vessel off Britain's coastline is an unusual event, which raises questions about what went wrong in spite of safety measures.
Stena Immaculate, the chemical tanker flying the U.S. flag and the Solong container ship flying the Portuguese flag were still on fire Tuesday. A day after a morning collision that left a large hole in the side of the tanker. It is not expected that either vessel will sink.
Little is known so far about the events that took place.
One source, who is a maritime specialist and an insurer with experience in collisions at sea, described the incident as unique. He also said that it was odd that the Solong hadn't slowed down.
The source stated that authorities could begin to answer questions about the incident once they had obtained the voyage data recorders of the vessels.
Another source said that both vessels were equipped with a variety of technological aids. These included two radar systems, automated plotting radars, public AIS tracking systems and VHF radios to contact coastal authorities.
Shipping data revealed that the Stena Immaculate was built in 2017, and it underwent an inspection for safety certification in 2023. Its next renewal is due in 2027.
Data shows that the Solong, which was built in 2005, will be subject to a safety certification renewal survey in October.
Shipping sources say that such accidents are rare off Britain's coastline. The Sea Empress, which sank on the rocks near Milford Haven in Britain's West Coast in 1996 and spilled over 70,000 tons of oil was the worst.
Both the manager and owner of Stena Immaculate said that the container ship struck the tanker while it was anchored, whereas the owner Solong described the incident as an accident.
Safety measures are in place
Shipping sources stated that AIS tracking data indicated the Solong was close to its maximum speed of 18 knots and had sailed through the waters many times.
Although the area of the incident near the North Sea, off the coast of Britain, is known to have rougher weather, depending on the season and the location, there are strict safety measures in place to ensure navigation during times of reduced visibility.
According to a third source who, like the other two, declined to identify themselves due to the sensitive nature of the matter, such incidents are not uncommon in the world, but this incident was "spectacular", because both ships caught fire.
A tanker carrying approximately one million barrels bitumen mixture was involved in an accident near the Chinese port of Qingdao, during heavy fog. Oil spilled into the Yellow Sea.
According to the shipping sources, the first step after Monday's accident would be to address any injuries or deaths and manage the effects of any pollution.
British maritime minister Mike Kane informed lawmakers that both crews were safe, despite the British government's assumption that one Solong sailor was dead.
Stena Bulk - the owner of the tanker - said that search and rescue experts had "been invaluable throughout this difficult situation".
The British police arrested an individual on suspicion of gross negligent manslaughter following the collision. Authorities have also launched a criminal probe into the collision's cause.
Sources said that although the incident was still under investigation, procedures were in place to at least provide a frame.
Third source: Britain is a coastal state that has mastered the art of managing casualties. It also had top-tier insurers on board.
ITOPF, an independent advisory group that provides information on oil spills, has found that in 2024 there will be six major spills and four minor ones. This compares to 18 spills in 2009 and more than 100 in the 1970s. (Reporting and editing by William Maclean, Jonathan Saul)
(source: Reuters)