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Sources say that the demand for Russian Urals crude oil is increasing, which has led to an increase in freight rates.
According to calculations and source data, tanker freight rates for the shipment of Urals crude oil from Russia's western ports to India firmed up this week due a?recovering?demand, as port loadings slowly re-invigorate after drone attacks. Sources said that freight costs for Urals cargoes transported from the Baltic port of Primorsk to India by Aframax tankers with 100,000 tons are currently at $18 million, compared to $16 million for a one-way trip in mid-April. Transport costs of Urals shipments from the Black Sea port Novorossiisk in India via Suezmax tankers with a capacity of?about 140,000 tons per voyage have firmed up to $20-21 million, compared to?roughly $19million a few weeks ago. Drone attacks by Ukraine could threaten supplies from Russia's west ports, and thus revenues. Early April saw an increase in exports from March, but ports like?Novorossiisk & Ust-Luga still operate below capacity. After a drone strike on Thursday, a fire broke out in a Transneft oil-pumping facility that supplies crude to Russia's biggest?export terminal?in the Baltic Port of Primorsk. Urals shipments are currently handled by shadow fleet tankers that try to avoid Western restrictions. Greek shipowners are still cautious about working with Russia because of sanctions. EU countries did not approve a complete ban on Russian oil maritime services - one the most prominent restrictions in the 20th package Russia sanctions.
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Tinubu, the Nigerian leader, seeks approval from Parliament for a $516 million road loan
Nigerian President Bola Tinubu asked the Nigerian parliament to approve a $516m foreign loan for a?help to finance a?first section?of a national highway. This is a major transportation corridor connecting the country's southwest to its northwest. Tinubu stated in a letter that was read out by the Senate president on Thursday during a plenary meeting, the 'government' was seeking approval from Deutsche Bank for the'syndicated financing facility'. He added the loan was a part of the'medium-term borrowing program' approved by lawmakers. Tinubu wrote in his letter that the loan would be for nine years, with a grace period of up to three. The highway, which is about 1,000 km (600 miles) long, will connect Sokoto, located in the northwest of Nigeria, with the central Niger, Kwara, and coastal towns of Badagry, located in Lagos, the commercial center. Tinubu stated that the highway would improve north-south connections, reduce travel times and haulage expenses, boost trade and food security, as well as bolster national integration. Last year, Nigeria raised $747 million in a syndicated loan led by Deutsche Bank to?fund a 700 km (435 mile) coastal highway. (Reporting and writing by Elisha Gbogbo, Editing by Emelia Matarise Sithole)
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US Senators demand an investigation into FAA Administrator Stock Sale
Three Democratic U.S. Senators have asked a federal watchdog to investigate whether the head of the Federal Aviation Administration broke his ethics agreement by delaying the sale of stock in order to increase 'his 'payout following his departure from Republic Airways as CEO. On Thursday, Senators Maria Cantwell and Tammy Duckworth asked if FAA administrator Bryan Bedford had misled Congress by explaining why he failed to divest fully his significant equity stakes in Republic before October 7, as per?his ethics contract. The senators claimed that "Bedford deliberately held onto his shares until his airline completed a 'lucrative merger which likely increased the value of his stock holdings". They asked the Office of the Inspector General of the Department of Transportation to conduct an investigation. Bedford completed his divestiture by February. The FAA stated that it would directly respond to senators. Bedford held Republic stock worth between $6 million and $30 million at the time of his confirmation. On November 25, 'Republic completed the merger with Mesa Air Group. Senators had earlier asked Bedford to forfeit any profits if it did not sell the stake by a certain date. Senators claim that Bedford could have made more than $25m from the sale. The senators stated that Bedford's profit would have been higher had he sold his shares in a timely manner on the private markets. Bedford, however, refused to disclose the exact amount he paid for the shares and whether he made any money from the delay. Bedford said he would continue to'recuse himself' from any issues that might impact the airline’s finances, as he sold his holdings. Bedford said he was confident he followed the rules earlier when he asked for a?delayed deadline, and he relied on the advice of career ethics officials. Cantwell had earlier released an?letter? from the Office for Government Ethics?dated December 8, which stated that Bedford had not?complied?with his ethics agreement?and had requested an amendment?to extend the divestiture timeline? OGE stated that the request was not up to the standard required for an amendment. Reporting by David Shepardson, Editing by Chizu nomiyama and Louise Heavens
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UK landlord Segro expands data centre drive to ride AI boom
British 'warehouse owner'?Segro has expanded its efforts into data centres. It is lining up new sites in France and Germany as well as in Italy and Poland to take advantage of the global boom in artificial-intelligence spending. David Sleath, in an interview on Thursday, said: "We think that there will be a very strong demand in the future in and around other large cities." We are working to secure planning permissions on some of these sites and power. Segro, which has around 10.9m square metres of space to its name, is betting that the?demand for AI-based data centres will continue to grow despite concerns from industry about power supply constraints. Power Supplies Sleath stated that the group is well-positioned in terms of its ability to provide power for its sites located in London and Slough (west of the capital), where it has upgraded 400 megawatts. Segro signed a contract for a data centre of 30,000 square metres in Slough during the first quarter. The company also won approval from planning authorities for a 56-megawatt data center in West London, worth $1.35 billion. Amazon and other technology companies have been slowed down by long electricity queues in Europe, causing them to delay or cancel their data center expansion plans. Sleath claimed that some developers built speculatively, without pre-let agreement, leaving them vulnerable to planning changes. He said that "we are very clear that we will not do that". Segro would only commit to capital after it had secured a prelease with a hyperscaler. Last year, data centre operators made up about 7% of Segro's clients. Transport & logistics, retail, and food manufacturing make up the majority of their clientele.
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Italy will see revenue from the sale of state assets worth 0.8% GDP by 2028
A government document published on Thursday showed that Italy expects to earn a revenue of?0.8% or?19.21 billion euros from the sale of state assets through 2028. Sources familiar with Rome's thinking on the issue said that Rome is considering options such as selling stakes in the air traffic controller ENAV and the bailed-out bank Monte dei Paschi di Siena. In its multi-year plan (DFP), the Treasury stated that asset sales of 0.2 percentage points will be factored into projections for debt-to GDP ratios this year. This figure is expected to rise to 0.5 percentage points in 2027, and 0.1 percent in 2028. The International Monetary Fund predicts that Italy's debt will rise from 137.1% to 138.6% of GDP by 2026. This is above the 138.4% forecast. The?DFP project Italy's debt to remain almost stable at 138.5% by 2027 before falling to 137.9% by 2028, and then to 136.3% in the following year. Giorgia Melons, the Prime Minister of Italy, announced that the government would be able to raise 20 billion Euros from the sale of assets in order to "keep the debt under control" after she assumed office at the end 2022. Rome, however, has gradually scaled back its plans since then. The previous budget plan, unveiled in Septembre, did not contain official targets. Italy has collected just over 4 billion Euros under Meloni by selling 52.5% MPS and 2.8% Eni via share placements. WINDOW DRESSENESSING? The DFP, published on Thursday, anticipates that asset sales will generate almost 5 billion euro this year, and 12 billion more in 2027 - the year of the scheduled general election. However, it does not provide any guidance as to the types of assets expected to be sold. In recent years, Italy's independent auditor court said that selling off plans could be "window dressing" to paint a more favourable budget picture. Meloni told Bloomberg in February in an interview that Rome's involvement in MPS was?over,' raising the prospect of a possible sale of the remaining 4,9% stake of the state, worth 1,36 billion euros based on Thursday's prices. Sources said that Rome would have to issue a decree to allow the sale of an ENAV stake, since current legislation requires the Treasury to'maintain a minimum of 51% in the company. Sources say that, in relation to Eni and the Treasury, investment bankers suggested that Italy sell its 2.17% stake directly to pocket 1.5 billion euros. Sources said that under such a scheme Italy would retain complete?control over Eni via the indirect stake of 30.92% held by the state lender Cassa Depositi e Prestiti. The government also took steps to return BDM to private ownership, a small banking institution that was rescued by the government in multiple steps since 2010.
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US Senators demand an investigation into FAA Administrator Stock Sale
Three Democratic U.S. Senators asked a federal watchdog to investigate if the head of 'the Federal Aviation Administration' violated his ethics agreement after he left his position as CEO of Republic Airways. On Thursday, Senators Maria Cantwell and Tammy?Duckworth asked if FAA Administrator Bryan Bedford had misled Congress?in his explanation of why he failed to divest?his substantial equity stake in?Republic before?October 7 - the date set in his ethics agreement. Senators claimed that "Beford deliberately held onto his shares until his airline completed a lucrative merger, likely boosting his holdings' value significantly." Bedford completed his divestiture by February. The FAA said it would directly respond to senators. Bedford held stock in Republic valued between $6 and $30 million at the time of his confirmation. On?November 25th, Republic completed a merger with Mesa Air Group. Reporting by David Shepardson, Editing by Chizu nomiyama
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Chernihiv wins Ukrainian Cup semi-finals without firing a shot at the opponent's goal
FC Chernihiv, of Ukraine's second-tier league, reached the final of the Ukrainian Cup after beating Metalist 1925 on penalties following a goalless semi-final on Wednesday. Chernihiv was reduced to 10 men when defender Pavlo Shusko was sent off after only five minutes. Metalist, who had 31 shots, including 13 on goal, was able to score once, but it was disallowed for offside. Maksym?Tatarenko led Chernihiv?to a?6-5 victory in the penalty shootout and brought the club into the Ukrainian Cup finals for the first ever. Chernihiv also defeated Mariupol after their quarter-final match ended in a goalless draw. The Ukrainian Football Association (?FA) overturned the results to give Chernihiv the 3-0 victory. This was because Kryvbas had fielded more than seven foreign players simultaneously, which violated a tournament rule. Chernihiv is set to face 13-time champions Dynamo Kyiv on 20 May. (Reporting by Chiranjit Ojha in Bengaluru, editing by Pritha Sarkar)
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Panama Canal says $1 million-plus auction slots reflect temporary surge in demand
The Panama Canal Authority announced on Thursday that some ships paid over $1 million at an auction for crossing slots, but the high prices were due to a temporary increase in demand rather than a persistent congestion of 'the waterway. After the Middle East conflict began, the authority reported that the average auction price had increased to $385,000, up from $135,000-$140,000. This was due to the increase in traffic, which boosted the demand for reservations. Last week, the authority downplayed reports stating that a LPG vessel paid up to $4 million in an auction for faster passage. Victor Vial is the vice president of finance at the canal. He said in a press release that certain vessels have paid over $1 million during recent auctions. However, he described these results as exceptional, and linked to a temporary rise in demand. He said that many ships pre-book their transits, avoiding queues. The canal offers a variety of booking methods, including long-term slot allocations as well as a system specifically designed for LNG vessels. It also offers auctions and last-minute bookings for ships who do not make reservations in advance. Between three and five slots are currently available each day. The Canal Administrator Ricaurte Vazquez stated that container and liquefied gas shipments were among the best-performing segments, with energy products playing a larger role in the volumes handled by this waterway. EL NINO RISK The authority said that it had also 'taken steps to preserve the water levels in its retention lakes, as 'it monitors a?risk of an El Nino potentially strong later this year. Ilya Espino de Marotta, the deputy administrator of the Canal Authority said that unusual rainfall in 'the dry season' kept Gatun Lake and Alhajuela Lake at their maximum levels. This allowed for the canal to accumulate reserves. She explained that they were continuing to monitor 'the situation' and that their goal was to maintain the lake levels at the highest possible level before the next dry period. The canal has cut its daily crossings in the past due to drought. (Reporting and editing by Aida Pelaez-Fernandez; Elida Moreno)
EU loan gives Ukraine a lifeline, but more assistance is needed to end the war
According to economists and government officials, Kyiv could need additional money this year to meet its military needs. Ukraine's budget projects a huge deficit of 1.9 trillion hryvnias (43 billion dollars) by 2026, which is around a fifth of its economic output. However, economists claim that this figure significantly underestimates the costs of the?war against Russia.
Maksym Samoiliuk, an economist at Kyiv's Centre for Economic Strategy (a?think tank), said that military spending will be assessed more realistically now that the delayed loan has been approved. This is because factors like a pay increase for military personnel expected this summer can be taken into consideration.
Samoiliuk stated that the loan was crucial because it created space to deal with pressures on Ukraine's defense budget.
The remaining 90 billion euro will be paid to Ukraine in 2027. The majority of the loan will be used for military expenditures, while around 17 billion euro per year is allocated to general budget needs like health and education.
A group of over 20 allies, in addition to Ukraine’s own budget for military expenditures, funds the purchase of U.S. made weapons through the PURL program.
Viktor Orban, the Prime Minister of Hungary, had blocked the EU loan from Ukraine for several months. He accused Ukraine of being slow to repair an oil pipeline that Kyiv claimed was damaged by a Russian drone. The pipeline transports Russian oil from Russia to Hungary and Slovakia. Following Orban's loss in the April 12 elections, the resumption on oil flow Wednesday allowed EU ambassadors to approve the loan.
Yuliya Marcuts, Vice President for Macro and Public Finance, at the KSE Institute in Kyiv (an economic think tank), estimated that budgetary spending on defence could be increased by as much as 10 billion euro, depending on the outcome of the conflict on the front lines.
Markuts stated that Ukraine?also increased its military expenditure estimates last year. Part of this was covered by government bonds as well as loans from the Extraordinary Revenue Acceleration Loans (ERA), a G7 initiative.
"How will this year be?" She said that, although it's difficult to predict, "there could be a repeat of this," adding that the EU loan may cover the revised budget.
Confidence in Tomorrow
If the EU loan is not paid by June, economists predicted that Ukraine will run out of cash and have to cut back on public services.
The approval of the EU aid package by ambassadors was welcomed by many Ukrainians. Under President Donald Trump, the U.S. has cut back on aid to Ukraine.
Hanna Fedotova is a 58 year old nursery caretaker who said that EU funding provides stability to Ukraine's institutions of state "and, most importantly, for education".
Fedotova, a nurse in the basement of a nursery in Zaporizhzhia in the south-east, said: "This aid is all about confidence for tomorrow. The certainty that we'll be able to continue doing our job."
The EU loan must only be repaid in the event that Russia pays war reparations to Ukraine.
Volodymyr Zelenskiy, the president of Ukraine, has stated that Ukraine needs additional funds to fight even though it received an EU loan. "We say 90 billions and that's enough to cover everything." "That's not true," Zelenskiy said in an interview with a Russian newspaper last month.
More Money Needed
Zelenskiy stated that the loan "only allows Ukraine order 60%" of the weapons it can produce. Ukraine needed 5 billion Euros to upgrade its electricity sector in the wake of Russian attacks.
Zelenskiy stated that Ukraine needed $15 billion, despite the fact that allies spent $5 billion last year on PURL weapons, mostly for air defence equipment.
We can't protect all of it, but we should. Where can we get the money? He said he was hopeful that the defence cooperation agreements with Gulf states could provide additional financing. The EU admits that its two-year loan covers only around two thirds of Ukraine's needs for external financing. Valdis Dombrovskis, EU Economy commissioner, said that international partners will still have to commit funding for 2027. However, the funding needed this year is covered.
Ukraine has access to other financing sources. Yulia svyrydenko, the Prime Minister of Ukraine, announced last week that it would receive 2.7 billion euro from the EU Ukraine Facility after parliament had approved some long-overdue reforms. Ukraine agreed to a $8.1 billion IMF four-year loan in February.
All this money is tied to a number of conditions, including tax and governance reforms that are not popular. Last week, the IMF agreed to delay the imposition on VAT for entrepreneurs following a backlash from the parliament.
Samoiliuk stated that "Ukraine’s ability to maintain the momentum of reforms" will be the main issue moving forward. "Ukraine’s international partners need to apply more pressure...and stress that Ukraine needs these reforms."
(source: Reuters)