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Sources: US warns countries that if they reject UN deal on ship fuel emissions, they will face tariffs
U.S. officials and European sources have confirmed that the United States has warned countries not to accept a United Nations deal on cutting marine fuel emissions or else face tariffs and visa restrictions. The Trump administration wants to increase the economic power of the United States, which includes taking a larger role in global shipping. It has also used tariffs to force Washington's trading partners to offer better terms. In April, the International Maritime Organization of the U.N. (IMO) reached a draft agreement that would impose a charge on ships that violate global standards for carbon emissions. Washington withdrew from the April talks that led to the draft agreement, and announced in August that it would take retaliation against countries who supported the deal. The US has said that the measures will place an unnecessary burden on the shipping industry and won't help reduce emissions. Four sources who declined to identify themselves due to the sensitive nature of the issue said that the U.S. State Department contacted other IMO members in recent days to warn them against adopting the "Net-Zero Framework". A spokesperson for the State Department said that the U.S. "actively explored and prepared to act on remedies, including tariffs and visa restrictions and/or ports levies, should this effort be successful in the October IMO special session vote". The spokesperson stated that the department would be engaging "our allies and partners" to suggest they take similar steps, but refused to comment on "private discussions with other countries". A spokesperson for the Dutch Ministry of Infrastructure and Water Management said that the Dutch government was verbally warned by representatives of the U.S. Government, warning it of tariffs or retaliatory actions if they supported the adoption. Washington did not specify which other IMO nations it had contacted. The London-based IMO is responsible for regulating international shipping safety and security and preventing pollution. The IMO agreement was intended to accelerate decarbonisation. Global shipping is responsible for almost 3% of CO2 emissions. Around 90% of world trade is carried out by sea and without a mechanism, emissions will soar. An IMO spokesperson stated that the upcoming session of the (IMO) in October will provide the right platform for member states to voice their concerns before the adoption process. The deal was approved by 63 countries, with 16 states voting against it and 24 abstentions. If it is put to a vote it will require a majority. Sources said that it was unclear whether it would pass if there were more abstentions. (Reporting and editing by Jan Harvey; Jonathan Saul, Kate Abnett Nerijus Adomiaitis Valerie Volcovici Enes Tunagur Bart Meijer)
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Russia will cut crude oil exports to its western ports by Sept
The differential between Brent and Urals crudes held steady on Tuesday, but Russia intends to reduce crude oil exports out of its western ports in September to about 1.9 million barrels per day from around 2.0 million bpd. Calculations showed that daily shipments of Urals, KEBCO, and Siberian Light grades in Primorsk Ust-Luga, and Novorossiisk should fall by about 6% from month to month. Two sources familiar with shipping data said that Russia would deliver oil to Brunei for the first ever via the Northern Sea Route in September. This will expand its export reach by using the strategic Arctic route. PLATTS WINDOW On Thursday, no bids or offers for Urals BTC, Azeri BTC Blend or CPC blend were made in the Platts Window. Janaf's CEO said that Croatian pipeline operator Janaf can cover the needs of two refineries in Hungary and Slovakia of Hungarian oil company MOL, which currently rely on Russian oil via the Druzhba pipe. Calculations showed that the total tax revenue on Russia's crude oil production for August is expected to increase by approximately 3.5%, to 600 billion Russian roubles (roughly $7.42 billion) compared to 580 billion in July. Reporting by
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Janaf, a Croatian company, is ready to provide more crude oil to MOL refineries if Druzhba flow stops
Janaf's CEO said that Croatian pipeline operator Janaf can cover the needs of two refineries in Hungary and Slovakia of Hungarian oil company MOL, which currently rely on Russian oil via the Druzhba pipe to meet their requirements. MOL warned of possible fuel shortages last month in Central Europe after Ukrainian attacks on Druzhba, which caused a temporary suspension there. MOL, who signed a February contract with Janaf for the delivery of 2.1 millions tons of oil to the end of 2025 has expressed doubts that the Adriatic Pipeline could provide enough oil even if Druzhba shipments were stopped completely. MOL has two refineries with a total capacity of 14.2 million tons. Most of the crude oil they use comes from Druzhba. Stjepan Adanic said that the chairman of the Janaf management board, Stjepan Adanic replied to questions by email: "Janaf is able to meet the crude oil requirements of MOL Group Refineries (...),". He said that the pipeline was in good condition, and it could provide a stable supply. It would also be able to increase the quantity if the Druzhba Pipeline were to cease. Adanic stated that the pipeline system capacity of Janaf has been tested repeatedly, most recently in June last year with MOL. He said that the test showed the pipeline could carry 11.8 million tons per year of crude oil. This capacity can be increased by adding polymers to reduce friction. Adanic said that Janaf would be able to increase the transport volume for MOL immediately if needed. MOL is under increasing pressure from the European Union to diversify its supplies. However, the group said that both the Druzhba pipeline and the Adriatic were vital for the refineries, and Janaf transit fees made the Adriatic route prohibitively expensive. Adanic responded that Janaf offers a range of services, including shipping, unloading and transshipment as well as technological storage and handling in terminals, which other competitors don't offer. He said that the oil transport industry does not have benchmarks, and there are no comparable pipelines anywhere in the world. Reporting by Marek Stzelecki, Krisztina Thán and Tomasz Jánowski.
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Sources say that Russia will ship oil via the Arctic route to Brunei for the first ever.
Two sources familiar with shipping data said that Russia would deliver oil to Brunei for the first ever via the Northern Sea Route in September. This will expand its export reach by using the strategic Arctic route. NSR shipments were limited until now to China because of its proximity to Russia’s Far East. Moscow has actively promoted the route to partners such as India and the U.S., claiming that it is cheaper and quicker than shipping crude oil through the Suez Canal. One source confirmed that the tanker Latur was currently on its way to Muara, Brunei, carrying Arctic heavy ARCO Oil loaded in Murmansk by Gazprom and supplied by Gazprom. Gessi Marine of Seychelles owns the vessel, which was sanctioned in January 2025 by the U.S. Treasury. It sails under the Comoros Flag. Gazprom and Brunei Energy Ministry did not respond to our requests for comment. Gessi Marine could not be reached for comment. Brunei imports small quantities of Russian crude oil since 2022, when Western sanctions forced Moscow to look for new buyers. Brunei imported $15,6 million of Russian oil in 2023. This included its first Urals cargo, which was delivered to Hengyi Industries' Pulau Muara Refinery. The NSR is navigable during summer and fall, connecting Russia's western port to Asia via the Arctic. This route can reduce shipping times by up to ten days when compared with the Suez Canal. Over 12 million barrels of oil were transported to China last year via this route. Russia will likely increase NSR shipments in this year, despite the high costs and approval requirements from Rosatom. LSEG data indicates that around 4 million barrels are on their way to China through the NSR. Rosatom has said that it offers permits, icebreaker services and safe navigation, but refused to disclose the vessel's details. Reporting by journalists in Moscow and Gleb Stlyarov in Tblisi. Additional reporting by Ain Bandial, Bandar Seri Begawan. Editing by Jan Harvey.
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Sources say that Russia will cut oil exports to western ports in September by 6% compared to August
Two industry sources say that Russia will cut crude oil exports to its western ports, Primorsk Ust-Luga, and Novorossiisk, to 1.9 million barrels per day in September, down from 2.0 million barrels per day in August, as refinery runs increase in the country. Calculations showed that daily shipments of Urals, KEBCO, and Siberian Light grades will fall by approximately 6% from month to month. As a result of the completion of maintenance work at several Russian refineries, expected in late August or early September, domestic processing is expected to increase and crude exports to decrease. Sources said that delays in the completion of scheduled maintenance, as well as external factors like drone attacks on energy infrastructure and oil plants could cause Russia to adjust its crude lifting plans in September. After drone attacks, Russia increased its August export program sharply after additional crude volumes were available for export. The provisional plan for crude exports and transit through Russia's western port ports was exceeded by 200,000 barrels per day in August. Calculations based on data from the industry suggest that Russia's idle refining capacity could fall to around 5 million metric tonnes in September, down from a record-breaking 6.4 million tons recorded in August. (Reporting and Editing by Jan Harvey).
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Canada's WestJet orders 67 Boeing aircraft as part of its fleet renewal plan
WestJet, a low-cost Canadian airline, announced on Wednesday that it had ordered 67 Boeing aircraft for a fleet upgrade, including seven Boeing 787-9 Dreamliners and 60 Boeing 737-10 MAX narrowbodies. The Calgary-based airline said that it has also acquired options to purchase 25 additional 737-10 MAXs and four Dreamliners with delivery dates extending through 2034. WestJet operates 193 aircraft, and it has an order list of 123 jets with 40 options. The average age is 10 years. Alexis von Hoensbroech, Chief Executive Officer of WestJet, said: "With these additions to our aircraft fleet, WestJet will double our Dreamliners." The Boeing planes will be expected to improve fuel efficiency significantly, he said. Boeing claims that the 737 MAX reduces fuel consumption and emissions by 20 percent and airframe maintenance costs are reduced by 14 percent.
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Putin claims China will benefit from market-based price of gas via new pipeline
The Russian President Vladimir Putin stated on Wednesday that China would benefit from the new Power of Siberia 2 pipeline because it would provide gas at a competitive price, based on market formula. Gazprom announced on Tuesday that Russia and China had signed a binding agreement on the pipeline but they have not yet agreed on its price. This shows President Xi Jinping’s disdain for Western pressure to back away from a deeper partnership with Moscow. Putin said that the gas agreements would guarantee Russia's supply of more than 100 billion cubic meters (bcms) of gas to China each year when the new pipeline is built. He stated that the price of gas to be supplied to China will be determined by a "market-based formulation", but did not provide any further details. Putin stated that energy demand was increasing globally, including in China. He said that agreements with Russia, as the world's largest producer of natural resources would ensure reliable and stable supplies. Reporting by Guy Faulconbridge; Editing by Mark Trevelyan and Guy Faulconbridge
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Ryanair reduces capacity in Spain following airport fee increases in a move that the operator calls "blackmail"
Irish airline Ryanair announced on Wednesday that it would reduce its passenger capacity for Spain by one million seats next winter in response to a fee increase announced by airport operator Aena, which it called "shameless". Aena's CEO Maurici Lucena responded by accusing Ryanair of "self-righteousness", "rudeness", "blackmail" and greed, as the long-running conflict between the largest airline in Spain by passenger numbers and the operator of most of the country's commercial airports escalated. Ryanair stated in a press release that the Aena fee hike of 6.5% announced for 2026 rendered some regional routes non-viable. Eddie Wilson, CEO, Ryanair DAC, said that the monopoly airport operator had no interest in developing traffic to regional airports throughout Spain, but only wanted to concentrate on achieving record profits at Spain's largest airports. The Irish low cost carrier announced that it would reduce capacity at regional airports on the peninsula by 600,00 seats, and in the Canary Islands 400,000 seats from late October to late March. This represents 16% its traffic at regional Airports. Ryanair said that because it operates the majority of flights from several regional airports throughout Spain, these cuts would lead to the closures of Valladolid Airport and Jerez Airport. Lucena stated that the slots booked by the airline at regional airports during this period are larger than what Ryanair claimed. Aena's price increase is much lower than that of Ryanair, which has increased its ticket prices by a significant amount. Yolanda Diaz, Labour Minister Yolanda Diaz announced on Wednesday that she would request a meeting between Ryanair's Chairman and herself. She told reporters that she would enforce the labour laws. Ryanair announced in January that it would be cutting 800,000 seats at regional airports throughout the country during the summer. Ryanair plans to increase its passenger numbers by at least 3% in 2026, despite the reduction of capacity in Spain. The airline said it would redistribute some of its winter capacity to airports that are cheaper in Croatia, Hungary and Morocco, as well as Sweden. Marta Serafinko, Gdansk reporter; Inti Landauro, Jan Harvey and Inti landauro are editing this report.
Berlin to reduce grid fees and power tax in order to lower energy costs
The finance and economy ministers said that the German cabinet approved a draft law on Wednesday to reduce power grid fees as well as the power tax. This is to lower electricity costs, which are among the highest in Europe.
Transmission fees, levies, and taxes increase the costs, adding an additional burden to both energy-hungry sectors and the economy as a whole.
Budget cuts forced the ruling coalition to curtail some of their plans.
A draft bill proposes to reduce network usage fees for all consumers starting in 2026. The government will transfer 6.5 billion euro in subsidies per year to the transmission system operators.
The second bill is aimed at lowering electricity taxes to the European Minimum, but only in specific sectors, such as agriculture, industry and forestry.
According to the Finance Ministry, the cut will benefit approximately 600,000 businesses. However, it is a reduced version of a previous pledge to extend tax cuts to all consumers.
The burden on the government budgets will still be estimated at 1.5 billion euros and 3.0 billion euros, respectively, in 2026-2027.
The lower and upper chambers of parliament must still approve the draft bills before they can come into effect in 2019. Reporting by Riham alkousaa, Christian Kraemer and Ludwig Burger.
(source: Reuters)