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UK targets shadow fleet, sanctions Russia's Lukoil, Rosneft
The UK targeted Russia's largest oil companies Lukoil, Rosneft and 51 tankers of the shadow fleet on Wednesday in a new attempt to tighten sanctions against energy and cut off Kremlin revenue. While on a visit to the United States, Finance Minister Rachel Reeves informed reporters that "we are introducing targeted sanction against the two largest oil companies in Russia - Lukoil & Rosneft". "At the time, we increase pressure on companies located in a number of third-country countries, such as India and China, who continue to facilitate the flow of Russian oil onto international markets." She said that "there is no place for Russia on the global markets", and that Britain will take all steps necessary to stop Moscow funding its war against Ukraine. The new sanctions are aimed at 51 ships in the shadow fleet as well as individuals, companies and organizations across sectors such as energy and defence. Since the Russian invasion of Ukraine, in February 2022, the shadow fleet has become increasingly the target of sanctions by Britain and the United States as well as the European Union. Officials say that the network is made up of old tankers, which are used in order to avoid sanctions against Russian oil. The Russian embassy in London has not responded to an immediate request for comment. (Reporting and writing by Muvija, Sam Tabahriti; editing by Sarah Young, William James, and William James.)
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The Russian rouble is at its highest since July due to a decline in imports
On Wednesday, the Russian rouble reached its highest level against the U.S. Dollar since July 24, with a government official claiming that the strengthening is linked to the shrinking of imports because of high interest rates. In order to combat inflation, the central bank raised its key interest rates to 21%. This year it has cut them to 17% due to a slowing economy and falling inflation. The current rate makes credit impossible for many firms, including importers. According to data from the central bank, Russian imports declined by 7.3% on an annual basis in August. According to China's Customs, imports from China, Russia’s main trading partner fell by 10.6%. "The strengthening of rouble is in part due to tighter monetary policies." The exchange rate is strengthening because imports have declined, but export revenues are still the same. The rouble was trading at 78.85 by 1150 GMT Wednesday after reaching 78.27 on the over-the-counter market, its highest level since 24 July. The rouble strengthened by 0.7%, reaching 11.01 against the Chinese yuan. This is also the highest level since July 24. Proposed VAT increase in 2026 It is expected that the central bank will continue to cut rates in 2019. However, the government's proposal to increase the value-added (VAT) tax by 2026, which would accelerate inflation, has increased the probability of a pause. Siluanov denied that the central banks deliberately supported the rouble by selling foreign currencies. Everything is based on trade balances and capital flows. He said that the tightening monetary policy had led to a strengthening of the currency rate, with corresponding effects on the economy and the budget revenue. The rise in the rouble contrasts with a general slowdown of the economy. According to the International Monetary Fund, the growth rate for the gross domestic product (GDP), which was 4.3% last fiscal year, is expected to slow down from 0.6% this year to just 0.6%. The turn to a new round of strengthening was unexpected. Sofya Donnets, analyst at T-Bank. The overwhelming majority of analysts expect the rouble will weaken to 90 rubles by the end the year. Reporting by Gleb Brianski, Darya Kosunskaya, and Elena Fabrichnaya; editing by Ed Osmond
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States in conflict with each other will receive more assistance on settling disputes and negotiating deals
The deputy general secretary of a group of 20 developing nations affected by conflict approved a plan that will provide emergency assistance to its members who are facing international disputes, or high stakes negotiations with companies about natural resources and infrastructure. Habib Ur Rahman Mayar, a member of the g7+, said that the Rapid Response Advisory Centre was created to offer practical assistance to its members who are facing urgent national issues. The advisory centre will facilitate the access of member states in Africa, Asia, and the Middle East to immediate, free assistance before transferring to more long-term, external support. Mayar stated that "we can help them understand the economic implications of such negotiations" when they are entering into them. The g7+ was founded in 2010 and is based out of Timor-Leste. It also includes Afghanistan and Burundi. The group holds U.N. Observer Status. The timing of the decision is coincidental with a reduction in aid to developing countries by many wealthy nations. It also follows a June letter sent from Timor-Leste’s Prime Minister to leaders of the G7+, urging them to assert themselves more. It said that the need for this had grown more urgent as the world looked to tap into the natural resources of its member states to fuel the global shift to a low carbon economy. Recent g7+ reports showed that members held around 16% global copper reserves. This is the second-largest reserve in the world. They also hold the largest cobalt reserves and the most lithium. Mayar stated that despite their natural wealth, some G7+ countries have signed resource extraction deals with multinational companies and countries who treated them unfairly during highly technical processes they didn't always understand. By the time they realized it was unfair, "it was too late." He said that the advisory center may be interested in getting involved in conflict resolution, and in helping countries to obtain climate financing - a crucial part of the agenda at the COP30 Climate talks in Brazil in the next month. But states have had difficulty accessing this funding.
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Weaker dollar, Fed cut bets drive copper up
The copper price rose on Wednesday, thanks to a weaker US dollar and expectations for further interest rate reductions in the U.S. The price of three-month copper at the London Metal Exchange increased by 0.9%, to $10.673.50 per metric ton as of 0939 GMT. Copper reached its highest level in 16 months of $11,000 Oct. 9 due to the increased investment into hard assets, and concerns about reduced mine supplies after disruptions occurred in Indonesia, Chile and the Democratic Republic of Congo. Analysts added unexpected production accidents to their estimates of the supply-demand balance for metals used in construction and power by 2025. Amy Gower is a commodities strategist with Morgan Stanley. In his speech on Tuesday, Federal Reserve chair Jerome Powell opened the door to more rate cuts. The prospect of lower interest rate increases the appeal of metals priced in dollars for buyers who use other currencies. China, the world's largest metals consumer, was hoping for a fresh round of monetary stimulus after September data showed deflationary pressures continued, as both consumer and producer price fell amid a prolonged housing market slump and tensions with America. The premium between the LME Cash Copper Contract and the Three-Month Contract continued to drop, reaching its lowest point at $37 per ton. On Monday, it widened up to $227 - its highest level since June - due to activity in the run up to Wednesday when holders of short positions will have to reduce or rollover contracts. Zinc premium The price of a ton dropped to $75 from the previous day's $200. Gower stated that the LME contract is vulnerable to price volatility because zinc stocks are at their lowest levels since early 2023 in LME-registered storage warehouses. LME aluminium increased 0.4% to $2.747.50 per ton. Zinc rose 0.2% to $2.946.50, lead climbed 0.6% to $1.994, tin shot up 0.9% to $35.465, while nickel increased 0.3% to $15.175. (Reporting and editing by Louise Heavens; Polina Devitt)
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India's steel industry will be hit by a shortage of met coke in the first half 2025
India's steelmills only obtained about half their metallurgical coal needs from domestic suppliers during the first half 2025. This highlights shortages, and intensifies their calls for a easing of the import restrictions on this key steelmaking material. India produced 1.5 millions metric tons between January and June of metallurgical coal, but the demand was almost double at 3.09million tons, according to an insider and government data. India, which is the second largest crude steel producer in the world, implemented import restrictions on metallurgical coal in January, to stimulate the industry. In June, the country extended its curbs by setting country-specific quotas. It also capped overseas purchases between July 1 to December 31 at 1.4 millions tons. Steelmakers call for a reduction in import curbs Several steel mill executives who spoke on condition of anonymity as they were not authorized to speak to the media said that the latest data regarding the local metallurgical output raised doubts about this decision. Indian steel producers are urging the government to increase import quotas by nearly seven times to alleviate what they describe as a critical shortage. The Federal Ministry of Commerce and Industry has not responded to an email asking for comment. The Society of Indian Automobile Manufacturers sent a letter to the government last year warning of possible supply disruptions of auto components. The industry group has not responded to an email seeking comments. Steelmakers such as JSW Steel, ArcelorMittal Nippon Steel India, and ArcelorMittal Nippon Steel India, have expressed concern about curbs. They claim that they interfere with their expansion plans because it is difficult to obtain preferred grades locally. The imports of low-ash coke have more than doubled over the past four years, with the major suppliers being China, Japan and Poland. (Reporting and editing by Mayank Bhahardwaj, Mark Potter and Neha Arora)
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Shanghai copper pares its losses amid optimism about rate cuts; trade tensions to be watched
Shanghai copper pared early losses on Monday, boosted by expectations for further U.S. Federal Reserve interest rate cuts. Investors remained vigilant of U.S. China trade tensions. The Shanghai Futures Exchange's most active copper contract closed the daytime trading lower by 0.2% at 85,650 Yuan ($12 020.55) per metric tonne. Early in the session, the contract traded at a low of 83,820 Yuan per ton. This was a drop of more than 1%. As of 0822 GMT, the benchmark three-month price for copper had also recovered from Tuesday's losses, rising by 1.06% and trading at $10,690 per ton. Red metal prices were supported by renewed U.S. interest rate cuts as Jerome Powell, the U.S. Federal Reserve chair's Tuesday speech signaled an unchanged economic outlook compared to weeks ago when policymakers cut rates and predicted two more reductions this year. Powell pointed to the weakening job market as a sign that he should consolidate a rate reduction later this year despite the still high and possibly rising inflation. Copper prices rose after Powell's speech as the dollar weakened. Investors using other currencies can get cheaper commodities when the dollar is weaker. The market was supported by concerns over a shortage of supply due to disruptions in the mining industry, including the Grasberg mine suspension. This helped to limit any price decline. The market continued to focus on the tensions surrounding US-China trading relationships. On Tuesday, Donald Trump, the U.S. president, threatened to end some trade relations with China over cooking oil. Trump's threat was the latest escalation of trade tensions ahead of a high-stakes summit between Trump and his Chinese equivalent Xi Jinping in South Korea later this month. Beijing has sent a conciliatory message, stating that its export control on rare earths does not represent a complete export ban. However, it left the door open to talks. Scott Bessent of the U.S. Treasury Department said that talks between leaders in South Korea were still proceeding according to schedule. Nickel grew 0.37%. Lead climbed 0.91%. Tin was up 0.2%. $1 = 7.1253 Chinese yuan renminbi $1 = 7.1253 Chinese Yuan Renminbi (Reporting and editing by Janane Vekatraman; Lewis Jackson, Dylan Duan)
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Indonesia resumes international carbon trading after four years
According to a copy seen on Wednesday, Indonesian President Prabowo Subianto has issued a decree to resume international carbon trading after a hiatus of four years. In 2021, the Southeast Asian country published carbon market regulations that focused more on compliance than voluntary markets. The regulation effectively ended all trading of carbon credits across borders, even those generated by large projects such as the Katingan Mentaya Conservation Project. Indonesia claimed that the moratorium allows the country to prioritise meeting its own greenhouse-gas reduction targets instead of selling the reductions abroad. The suspension was also a result of concerns that carbon prices were too low and countries selling the product weren't benefiting from it. Until now, Indonesia had been one of the largest suppliers of carbon credits on the international market. This was mainly through the REDD+ reforestation program. The new decree signed by the president last week, and made public on Tuesday, allows for the international trade of carbon offset units in accordance to Indonesian standards or standards set forth by the United Nations Framework Convention on Climate Change, and other international certifiers. In order to avoid double counting, the decree calls for a decentralised registry of carbon units. This registry will be transparent and operate in real-time. Prabowo who is about to celebrate his first anniversary as president, on October 20, plans to generate capital from the sale of carbon offsets by foreign buyers for projects like rainforest preservation. This year, Indonesia signed agreements of mutual recognition with international organisations which certify projects to reduce greenhouse gas emissions. These include Verra Gold Standard, Global Carbon Council Plan Vivo, and Joint Credit Mechanism. Officials have stated that these deals are meant to facilitate international trade in carbon and foreign investment to support Indonesia's goals on climate change. Indonesia's local Carbon Exchange, which was launched in September 2023 and offers carbon credits to foreign buyers, began offering certificates of carbon credits to foreign buyers last year. However, trading has been very thin. Indonesia has committed to achieving net-zero emissions of greenhouse gases by 2060, or sooner. (Reporting and editing by David Stanway; Gayatri Suryo)
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Aurubis shares fall as Salzgitter's share shrinks in bond deal
The shares of German copper producer Aurubis dropped on Wednesday, after Salzgitter, the company's largest shareholder sold bonds worth 500 million euros ($582 millions) that could be exchanged for 7.6% Aurubis stock. Aurubis shares, which had been boosted by the booming copper market, dropped 6.7% at 0752 GMT to 108.2 Euros, erasing gains made earlier in the month. This move quenched simmering speculation about a takeover. Salzgitter held 29.99% in Aurubis, and a stake greater than 30% would have required a mandatory offer for remaining shareholders. The bonds are due in 2032 and offer a fixed interest rate of 3,375%. They can be exchanged for Aurubis shares, at a price of 145.80 euro, initially. BNP Paribas acted as global coordinators, Commerzbank acted in the capacity of bookrunners, and UniCredit was the joint global coordinator. The transaction aims to diversify Salzgitter’s maturity profile and financing structure. Salzgitter's shares rose 0.5% and the company plans to list its bonds on the Frankfurt Stock Exchange Open Market segment.
Poll: Swiss voters are likely to reject a proposed 50% tax on the super-rich -
According to a Wednesday poll, the Swiss referendum to impose a tax of 50% on inheritances worth 50 million Swiss Francs (62.53 millions) will likely be rejected by the voters.
The October 8-9 survey by 20 Minuten and Tamedia of 11,178 Swiss citizens showed that two-thirds opposed the initiative to raise funds for climate change. Only 31% were in favor.
The referendum will take place on 30 November.
According to Swiss tax authorities there are currently around 2,500 taxpayers with assets of more than 50 millions francs. This represents a wealth totaling about 500 billion Swiss francs.
The proposal, if adopted, would theoretically result in an additional 4 billion francs of tax revenue.
Supporters of the RICH say that they damage the environment disproportionately.
According to the JUSOs, the youth section of Social Democrats of the Left (leftist Social Democrats), who launched the initiative, these revenues should be invested into projects that reduce the impact on climate change.
JUSO leader Mirjam Hostetmann said that those who consume luxury most are the ones responsible for the worst climate damage.
She said, "The 10 wealthiest families in Switzerland cause as much emissions as 90% the Swiss population." "It is not fair that the entire population pays the cost."
Business leaders have criticized the proposal and warned that it could lead to an exodus wealthy Swiss people, which would reduce overall tax revenue. One senior banker compared it to a nuclear bomb for the country.
The government has called on voters to reject this initiative.
Karin Keller Sutter, Swiss Finance Minister, said that the initiative would reduce Switzerland's appeal to wealthy individuals. Reporting by John Revill, Editing by Dave Graham. $1 = 0.7996 Swiss Francs.
(source: Reuters)