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Zelenskiy calls for urgent renewal of the supervisory board in the defence sector
The Ukrainian president Volodymyr Zelenskiy announced on Wednesday that he has urged the Minister of Defence Denys Shmyhal, to renew supervisory boards within the defence sector urgently in order to restore investor confidence following a recent corruption scandal. Ukraine is currently engulfed in a scandal involving a $100 million kickback scheme, allegedly perpetrated by senior energy officials. A former business partner of Zelenskiy has also been suspected of being involved. This is the biggest scandal in Ukraine since Zelenskiy was elected president of Ukraine on a mission to eradicate corruption. Kyiv must eliminate corruption and strengthen the rule of law in order to be eligible to join the European Union. The Ukrainians view this as a crucial requirement for their future, as they fight off Russian invasion. Zelenskiy stated on Telegram that "management and oversight of the internal processes within companies is carried out by supervisory boards, and this has to be 100% guaranteed." After the termination of the majority of supervisory board powers today, he said that the formation of supervisory boards for state-run energy firms must take place by the end this month. Last month, the government announced that they planned to appoint by the end this year a new board of directors at Energoatom - the state nuclear firm at the center of a scandal involving corruption. Zelenskiy told Prime Minister Yulia Shvyrydenko that the pace of transformation was satisfactory. However, he said there must be full transparency within management. "New members must be appointed to the Supervisory Boards in December, following a fair and transparent procedure." The Ukrainian energy sector is dominated by state-owned companies, such as Naftogaz (oil and gas company), Ukrenergo (power grid operator), and Energoatom (nuclear energy company). (Reporting and writing by Yuliia Dyesa, editing by Andrew Heavens, Timothy Heritage, and Pavel Polityuk)
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Sources: Former Pornhub owner is interested in Lukoil's assets
Two sources with knowledge of the matter claim that Bernd Bergmair (former majority owner of adult entertainment group Pornhub) has approached the U.S. Treasury to buy international assets from sanctioned Russian oil giant Lukoil. As part of its efforts to press Moscow to end the war in Ukraine, the U.S. imposed Sanctions on Lukoil - Russia's largest private oil producer. Exxon Mobil, Chevron, and other oil giants have approached U.S. authorities to get permission to speak to Lukoil. Bergmair, through his lawyer, declined to say which assets he is interested in. He also refused to confirm whether he has already approached Lukoil or if he is part of a consortium. He said: "Clearly, Lukoil International GmbH is a good investment. Anyone would be lucky to own those assets." "I do not comment on potential investment as a matter. Due to the sensitive nature of the issue, the sources refused to identify themselves by name. Since the U.S. Treasury gave companies permission to start talks with Lukoil last month, interest in Lukoil’s foreign assets is growing. Treasury cleared talks until December 13 and any deal would require approval. Lukoil International GmbH is based in Vienna and owns refineries throughout Europe, oilfields across Kazakhstan, Uzbekistan Iraq, Mexico, as well as hundreds of retail fuel station locations around the globe. According to 2024 filings, the assets are estimated at $22 billion. When asked whether Bergmair spoke with the Department, a spokesperson for U.S. Treasury declined to comment. Bergmair was a Goldman Sachs investment banker who moved to private investments in the 1990s. He was the majority shareholder of MindGeek, a Luxembourg-based company with websites such as Pornhub and RedTube. It was sold to a Canadian firm in 2023, for an undisclosed amount. The Sunday Times Rich List, which ranks Britain's richest in 2021, estimated that his wealth was at least PS1.2billion.
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As markets wait for US data, gold and silver prices ease from record highs.
The gold price remained stable on Wednesday, as traders awaited U.S. Economic indicators to gauge Federal Reserve policy direction. Silver prices also declined from their record highs. After losing over 1% the previous session, spot gold dropped 0.1% at 1128 GMT to $4203.58 per ounce. U.S. Gold Futures for February Delivery were up 0.3% to $4,234.60. Ole Hansen is the head of commodity strategy for Saxo Bank. He said, "Pay attention to key U.S. statistics that could cement expectations about a rate cut in December which would be supportive of metals." Investors await the U.S. ADP November employment figures at 13:30 GMT, and Friday's delayed Personal Consumption Expenditures data for September. Brokerages are projecting a policy easing as a result of weaker U.S. data and dovish Fed signals. CME's FedWatch shows that there is now an 87% probability of a rate reduction next week. Gold that does not yield a return tends to do well when interest rates fall. Silver fell 0.5%, to $58.15 per ounce. It had previously reached a record-high of $58.94. Hansen said that silver is supported by tight supply, momentum buying, and short-covering following last Friday's breakout above $54.50. He added that overbought condition posed a risk to bulls in the near term. Silver, a precious metal and an industrial metal, has risen by 101% in the past year. Its inclusion on a U.S. critical mineral list is also a factor. This year, gold has gained 60%. Palladium fell 0.5%, while platinum rose 0.6%, to $1.647.75 per ounce. Reporting by Pablo Sinha, Bengaluru Editing Mark Potter and David Goodman
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Copper reaches record highs on concerns about supply and a weaker dollar
The copper price reached a new record on Wednesday, thanks to the weaker dollar and concerns about supply. Benchmark LME 3-month copper rose 1.7% to $11,333 per metric tonne by 1102 GMT, after reaching a record high at $11,434.50. Copper is looking bullish, after hitting new highs. Algorithmic models are flashing buy signals. Dan Smith, managing Director of Commodity Market Analytics, said that there's a good chance the price could rise to $12,000 per ton. Data showed that business activity in Europe expanded at the fastest rate in over two years in November, adding to the bullish mood. LME data on Tuesday showed that there were net cancellations of 50 725 tons of copper in Asian warehouses. This brought the LME's available or on-warrant copper stock to its lowest level since July, at 105 275 tons. Smith said that despite the Comex premium to the LME benchmark, there is still a strong interest to export copper to the U.S. Comex copper prices are rising due to the premium of Comex over LME. That is already a record. The LME cash premium over the 3-month contract reached $69 per ton on February 2, its highest level since mid-October. This indicates some tightness of supply in the near term. The expectation of a rate cut from the U.S. Federal Reserve in the coming week, as well as the weaker dollar, also helped to support the rise in base metals. Dollar-priced materials are more appealing to buyers who use other currencies due to the weaker dollar. Low interest rates improve the prospects of metals that are dependent on growth. Other LME metals include aluminium, which rose by 0.5% to 2,880 dollars a ton. Zinc was up by 0.2% at $3,066, while lead gained 0.5%, reaching $2,005. Tin climbed 1%, to $39 505, and nickel grew 0.7%, to $14 895. (Reporting and editing by David Goodman.)
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SNB to maintain negative rates despite inflation decline
Economists on Wednesday said that the Swiss National Bank would not opt for negative interest rates next week or until 2026, despite the fact that inflation was below expectations and at the lower end of its target range. Official data revealed that the annual inflation rate in Switzerland unexpectedly fell by a tenth of a percent point to zero in November, slightly below expectations. A poll of analysts found that the consensus was that last month's inflation rate would be unchanged, at 0.1%. The SNB has set a price stability target of 0% to 2% for inflation. This 0% figure is the lowest since May. DATA IS THE LAST READING OF INFLATION BEFORE RATES ARE DETERMINED The central bank refused to comment on these figures, the last inflation data before it announces the next interest rate decision at its December 11th meeting. Even with the economic downturn, economists believe the SNB will maintain its benchmark rate at 0% until 2026. Karsten Junius is an economist with J.Safra Sarasin and he also believes that there will be no policy change in 2026. Rudolf Minsch is the chief economist of economiesuisse and he also predicts that central bank will keep interest rates zero for the next week, as well as throughout 2026. Swiss inflation should increase to 0.4% in next year. He said that negative interest rates have unwanted effects and are used only when an urgent need is present, which we do not see. SNB HAS A HIGH THRESHOLD FOR CUTTING RATES Alessandro Bee, an economist at UBS, said that he expects the SNB to maintain rates at 0% until 2026. He also predicted a slight increase in Swiss inflation next year due to increased wages. The market expects that the bank's benchmark rate will remain unchanged next week. Officials of the SNB have previously stated that they expect inflation will rise in the future. They also said that they would tolerate an inflation rate below 0% for a temporary period. (Writing and editing by John Revill, Dave Graham, Aidan Lewis, Miranda Murray)
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Fortescue collaborates with Chinese steelmaker to develop green iron technology
Fortescue, an Australian company, announced on Wednesday it would work with China Baowu's subsidiary, the largest steelmaker in the world, to investigate new green technologies for accelerating the decarbonisation of the steel industry. Fortescue, which is the fourth largest iron ore supplier in the world, signed a contract with China's Taiyuan Iron and Steel Group in November for a pilot project on plasma-enhanced hydrogen-based iron and steel metallurgical technologies, according to a company statement posted on WeChat. The project will develop a technology to eliminate the pre-treatment of raw materials, such as iron ore pelletizing, coking and sintering. These processes are typically major contributors to carbon dioxide emissions during steelmaking. The collaboration involves the design, construction and operation of an industrial test line that can produce 5,000 tons of hot iron, a product from a blast-furnace. Agustin Pichot, Fortescue’s Chief Executive Officer for Growth and Energy, said: "We are exploring technology for green-smelting using Fortescue’s Pilbara Iron Ore." The decarbonisation of steel will increase the demand for high-grade iron ore. This is a challenge for Australian miner, who mainly supply low to medium grade iron ore. Fortescue said it would provide the capital for this project. Fortescue and another subsidiary of China Baowu partnered earlier this year to develop green iron technology. (Reporting and editing by Amy Lv, Lewis Jackson)
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India's JSW Steel will move Bhushan Power Steel's business to a JV with JFE Steel
India's JSW Steel is selling the steel business from its Bhushan Power and Steel unit to a joint venture of equal stakes with Japan's JFE Steel, for 244.83 Billion Rupees ($2.72 Billion), in order to fund its growth. After the announcement made on Wednesday, shares of JSW Steel, India's largest steelmaker in terms of market capitalization, fell. The shares closed 1.6% down, making them among the biggest percentage losers in the Nifty Metal Index. In September, India's top court approved JSW's acquisition of Bhushan Power and Steel. This decision capped months of legal battles that saw the court reverse its earlier decision to reject this deal. JSW Steel announced that JFE Steel would invest 157.50 billion rupies in the JV. JFE Steel stated in a separate press release that the JV aims to increase crude steel production to 10 million tonnes at integrated steelworks by 2030. The two steelmakers have pledged to invest in a separate joint venture to increase production of grain-oriented electric steel. Analysts claim that the increase in steel demand has been attributed to increased manufacturing and infrastructure spending in India. Reporting by Anuran Sahu, Manvi Pan and Hritam Mukerjee from Bengaluru. Editing by Mrigank Dahniwala
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Fuel and funds to aid flood-hit Indonesian areas are running low
The authorities battling the floods that hit Sumatra, an island in Indonesia, this week and killed around 800 people have asked for additional central government assistance to address shortages of food, fuel and funds. According to updated government figures, 463 people are missing in West Sumatra (North Sumatra), Aceh and West Sumatra. Local officials say that the lack of power and roads is preventing aid from reaching those who need it. Iskandar Al-Farlaky, the chief of East Aceh, stated that fuel had been limited in East Aceh for days and that aid was delivered by boat. Some people who lived in isolated districts faced the threat of starvation. He said that food stocks were dwindling in three districts and that hunger was imminent. He asked the central government to declare a national state of emergency. "The regional budget has a limited amount." DWINDLING FUEL AND RICE SUPPLIES According to national data, 135,000 people were affected in East Aceh by the disaster. Haili Yogi, the chief of Central Aceh where 21 people were killed by floods and 54,000 were affected, reported that fuel and rice supplies were running low. He is one of four regional leaders who are urging the government to declare an emergency in the face growing public anger. In Indonesia, 3.1 million people have been affected by the flooding, and 592,600 people were evacuated. Prasetyo hadi, the presidential spokesperson, said that Indonesia's disaster relief budget of 500 billion Rupiah (30 million dollars) was adequate. He added that this figure could be raised if needed. These comments follow remarks made by the President Prabowo Subianto to reporters last week, in response to a question about declaring an emergency national, that things were improving and existing arrangements were sufficient. People turn to muddies when they don't have access to fresh water Sibral Malasi, the chief of Aceh's Pidie Jaya Region, also said that fuel supplies in this region were limited. KompasTV reported that residents of Aceh Tamiang, due to a lack of freshwater, were drinking and cleaning muddy floodwater. Jonathan Victor Rembeth is an official with the disaster mitigation agency. He said that a national disaster could be declared if provincial governments declare their inability of responding to a catastrophe, which they haven't done yet. Indonesia, which is frequently hit by natural catastrophes, declared a state of emergency in response to the COVID-19 epidemic. The law allows the president to declare an emergency national, releasing additional funds for aid and rescue. Indonesians have criticised the central Government for not declaring a state of emergency. They also cited budget cuts for the agency that deals with disaster mitigation, which according to official data was down by 50% from last year. Tito Karnavian said that Indonesia's Minister of Home Affairs, Tito Karnavian had asked regional governments to donate funds not used by flood victims to those who were affected. Muhammad Baron, a spokesperson for Pertamina, said that the company faces fuel distribution problems in "nearly" all of the flood-affected regions. The company is looking for alternative routes but it will take some time to deliver. Green groups blame illegal logging and deforestation for the worsening of the disaster. $1 = 16,625,0000 rupiah (Reporting and editing by Clarence Fernandez, Alex Richardson, and Stanley Widianto)
Sources say that Putin's peace demands include a stop to NATO expansion.
According to three Russian sources familiar with the negotiations, President Vladimir Putin has set conditions to end the war in Ukraine. These include that Western leaders commit in writing to stop expanding NATO eastwards as well as lifting a portion of sanctions against Russia. Donald Trump, the U.S. president, has said repeatedly that he wants the European conflict to be over. He has also shown growing frustration towards Putin in recent weeks. On Tuesday he warned the Russian leader 'playing with fire' by refusing ceasefire talks with Kyiv while his forces were making gains on the battlefield. Putin told Trump that after a two-hour conversation last week, he agreed to work on a document with Ukraine that would outline the terms of a peace agreement, including when a ceasefire will be implemented. Russia is drafting their version of the document and has no idea how long it will take.
Kyiv, as well as European governments, have accused Moscow for stalling its troops' advance in the east Ukraine.
One senior Russian source, speaking on condition of anonymity and with intimate knowledge of the Kremlin's thinking, said that Putin is willing to make peace at any cost.
Three Russian sources have said that Putin wants an "written" commitment from major Western powers to not expand the U.S. led NATO alliance eastwards. This is a shorthand way of formally excluding Ukraine, Georgia, Moldova and other former Soviet Republics. The three sources also said that Russia wants Ukraine to remain neutral, certain Western sanctions lifted, a solution for the frozen Russian assets in the west, and protection of Russian speakers in Ukraine.
First source: If Putin is unable, on his terms, to achieve a peaceful settlement, he'll try to demonstrate to the Ukrainians and Europeans, through military victories, that "peace tomorrow would be even more painful".
The Kremlin has not responded to a request for a comment about'reporting. Putin and Russian officials repeatedly stated that any peace agreement must address the "root cause" of the conflict. This is Russian shorthand for NATO expansion and Western support for Ukraine. Kyiv repeatedly stated that Russia shouldn't be given veto rights over Ukraine's aspirations to become a member of the NATO alliance. Ukraine wants the West to provide a solid security guarantee that is backed up by teeth in order to deter future Russian attacks. The administration of President Volodymyr Zelenskiy did not reply to a comment request. NATO has said in the past that it would not change its policy of "open doors" just because Moscow demanded it. The 32-member alliance's spokesperson did not answer any questions.
Putin sent tens-of-thousands of troops to Ukraine in February 2022, after eight years fighting between separatists backed by Russia and Ukrainian troops in the east of Ukraine.
Russia controls less than one fifth of Ukraine. The Russian advance has accelerated in the last year. However, both Russia and Ukraine are paying a heavy price for the war.
In January, it was reported that Putin had become increasingly concerned about the economic distortions of Russia's wartime economies. This is due to labour shortages as well as high interest rates implemented in order to combat inflation. Oil, which is the foundation of Russia's economic system, has been steadily declining in price this year. Trump, who boasts of his friendly relationship with Putin, and believes that the Russian leader is seeking peace, warned Washington it could impose additional sanctions if Moscow delayed efforts to reach a settlement. Trump suggested on social media that Putin was "absolutely CRAZY", for unleashing an aerial attack against Ukraine last week.
First, the source stated that Putin would move further into Ukraine in the event he saw an opportunity to do so on the battlefield. The Kremlin also believed that Russia could continue fighting for many years despite the economic and political pressures imposed by Western countries. Second source: Putin is less willing to compromise with regards to territory, and is sticking to his public position that he wants to claim the entire four regions of eastern Ukraine.
The second source stated that Putin has reaffirmed his position on the issue of territory.
NATO Enlargement As Trump and Putin battled in public about the prospects for peace in Ukraine could not tell if the intensification of war and the hardening of positions signaled a determination to reach an agreement or a collapse of talks.
In June of last year, Putin laid out his first terms for an end to the conflict immediately: Ukraine must abandon its NATO ambitions and remove all its troops from four Ukrainian regions that are claimed by Russia and largely controlled by them.
Russia controls more than 70% Donetsk and Zaporizhzhia regions, as well as almost all of Luhansk. Russia also controls a small part of Kharkiv, Sumy and Kherson regions and threatens Dnipropetrovsk.
The former U.S. president Joe Biden and Western European leaders, as well as Ukraine, have repeatedly called the invasion an imperialistic land grab. They also vowed that they would defeat Russian forces.
Putin sees the war in the context of the watershed moment for Moscow's relationship with the West, which he claims humiliated Russia in 1991 after the Soviet Union collapsed by expanding NATO and encroaching upon what he believes to be Moscow's sphere.
In 2008, NATO leaders in Bucharest agreed that Ukraine and Georgia will one day be members. In 2019, Ukraine amended its constitution to commit to full membership in NATO and the European Union. Trump said that the U.S.'s previous support for Ukraine’s NATO membership bid caused the war and indicated that Ukraine would not be granted membership. The U.S. State Department has not responded to a comment request on this story.
Putin, who became the Kremlin's top official in 1999, has returned to NATO enlargement several times, including his most detailed remarks on a possible peaceful future in 2024. Just two months prior to the Russian invasion in 2021, Moscow presented a draft of an agreement with NATO that, under Article 6 would bind NATO "to refrain from any further expansion of NATO, which includes the accession of Ukraine and other States." At the time, U.S. diplomats and NATO officials said that Russia had no veto over the expansion of the alliance. Russia wants to see a written commitment from NATO because Putin believes that the United States misled Moscow after the fall of the Berlin Wall in 1989 when U.S. Secretary James Baker told Soviet leader Mikhail Gorbachev, in 1990, that NATO wouldn't expand eastward.
William J. Burns, the former director of Central Intelligence Agency, said that there was a verbal agreement, but it never became formalized. It was also made before the fall of the Soviet Union. NATO, which was founded in 1949 as a means of providing security against the Soviet Union says that it does not pose a threat to Russia, even though the 2022 assessment on peace and security within the Euro-Atlantic region identified Russia as the "most significant and direct danger".
Finland joined NATO in 2023 after the Russian invasion of Ukraine in that same year. Sweden followed in 2024. Western European leaders have said repeatedly that if Russia won the Ukraine war it could attack NATO one day - which would trigger a global war. Russia has dismissed such claims as scaremongering but also warned that the conflict in Ukraine could escalate. (Reporting in Moscow; Editing by Daniel Flynn).
(source: Reuters)