Latest News
-
Q&A: Is Venezuela on the verge of losing its prized foreign asset, Citgo?
Gold Reserve's $7.38bn bid was selected by a U.S. court as the winning bid. Preliminary winner After intense competition, Citgo Petroleum (owned by Venezuela) held an auction for its parent company. Robert Pincus is the court officer who oversees this auction. He made his recommendation Wednesday, after evaluating five bids submitted during the "topping period" of the bidding rounds, which was completed at the end of June. The auction is a result of a case Crystallex, a Canadian miner, filed in Delaware eight years ago against Venezuela. Citgo Holding's parent company, PDV Holding was found liable by the federal court for Venezuela's past debts and expropriations. This allowed over a dozen creditors to seek compensation for nearly $19 billion. If Judge Leonard Stark, after a series of delays, approves the bid in the next month's court hearing, it is likely that this year's bidding round will be concluded soon. The final results hearing is scheduled for August 18. In March, a $3.7 billion bid from Red Tree Investments of Contrarian Funds kicked off the round. This included a $2 billion agreement for payment to holders of defaulted Venezuela bonds. In April, rival bidders began to make their offers. According to court documents and sources, rival bidders include the group led Gold Reserve's Dalinar Energy Corporation, a consortium led Black Lion Capital Advisors and a group headed by commodities house Vitol. The court did not reveal the names of some bidders, and certain offers that were received did not meet eligibility requirements. Pincus said that the recent resolutions of parallel legal actions in pursuit of the exact same assets encouraged new bids. Gold Reserve, despite its winning bid being lower than other offers, covered 11 of 15 creditors at the auction and included its own claim of $1.18 billion for expropriation assets in Venezuela. Compensation would be provided for pending claims from oil company ConocoPhillips and miners Rusoro, Crystallex, and conglomerates Koch OI Glass, Siemens Energy, and Siemens Energy. Gold Reserve's offer didn't include an agreement to compensate holders of Venezuelan defaulted bonds, which, according to analysts and bidders, could delay or interfere in the distribution of auction profits. What could be the possible loss for Venezuela? Venezuela would lose its largest overseas asset if it fails to retain equity in the refinery and its U.S. parent companies. With a foreign debt of $150 billion, the country has already lost assets in Europe, Asia, and South America to creditors. Judge Stark left the door open for Venezuelan parties to make an offer. Boards supervising refiners would have to get the backing of politicians from both Caracas as well as Washington. This is a difficult task given the U.S. sanctions against the OPEC nation, and the strained relationship between the two countries. Prior to the sanctions, Citgo's 807,000-barrel-per-day refining network was a primary processor of Venezuela's heavy sour crudes. Citgo, the Houston-based refiner, has been relying on other crude suppliers since it severed ties with PDVSA in Caracas, Venezuela's state-run oil firm, which is Citgo's ultimate parent. Venezuela's opposition has been working for years to keep Citgo. They have funded legal defenses, and lobbied in Washington. Treasury Department must approve the winner of the auction. Treasury Department has protected Citgo in recent years from creditors. Citgo, according to opponents of Venezuelan president Nicolas Maduro, could help the nation's economy recover if democracy was restored. Maduro officials rejected U.S. sanction and called the auction a robbery. Can creditors claim post-auction compensation? Yes. ConocoPhillips and Gold Reserve have taken legal action to seize Venezuelan assets such as tankers, bank accounts and PDVSA controlled storage facilities. If they are not satisfied with the results of the bidding round, which was won by Elliott Investment Management affiliate Amber Energy last year, the creditors can file objections. Other creditors can continue their parallel cases outside of the Delaware case, where they haven't made much progress in proving bond-related claims, or that PDVSA U.S. subsidiaries are liable for Venezuela's obligations, an essential step to pursue Citgo assets. Three of the original 18 creditors cleared by the court have withdrawn due to mounting legal fees and uncertain prospects for recovery. Other participants, such as the owner of artifacts belonging to Venezuelan independence hero Simon Bolivar and a collector of Bolivar-related items, failed to meet all requirements set by the court. All creditors will be compensated? Unlikely. Citgo's value was up to $13 Billion in the Delaware case. However, all bids have been below $11 Billion. Profits for the refiner dropped to $305 millions last year, down from $2 billion in 2020. This suggests that some of the registered creditors who collectively claim $18,9 billion may not be eligible to receive any distributions.
-
China's Foreign Minister dismisses European concerns over rare Earths
China's Foreign Minister downplayed European concerns over rare earth exports on Thursday. He said it was standard practice to control dual use goods exports, but that Europe could meet its needs if they submitted applications. Wang Yi spoke in Berlin at a joint press conference with his German counterpart. He was on the second leg a European tour to prepare for the summit between EU leaders and Chinese leaders that will take place later this month. Wang stated that "rare earths are not a problem, have never been a problem, and will never be a issue between China, Europe, or Germany." If legal applications are filed, Europe and Germany can meet their normal needs. China, which controls 90% of the global processing capacity for rare Earths, used in everything from cars to home appliances and other products, imposed early April restrictions requiring exporters obtain licenses from Beijing. The German Foreign Minister Johann Wadephul stated that the restrictions caused "great concern" in Germany and damaged China's reputation as a reliable trading partner. He said: "We're on our way to finding joint sustainable solutions that will bring about the detente necessary," When Wang was asked whether an agreement on restrictions could be reached ahead of the EU and China summit, he replied: "This issue is not between China or Europe... Controlling dual-use products is standard practice." China and Germany have both the right to do this." He added that the Chinese Ministry of Commerce has already implemented a fast track procedure to ensure that all normal approvals can be processed as quickly and efficiently as possible. Wang arrived in Berlin after a visit to Brussels where he had a meeting with EU officials, including Kaja Kallas the EU's High Representative for Foreign Policy, who also encouraged Wang to lift export restrictions on rare earths. Wadephul stated that the two ministers discussed the Russian invasion of Ukraine, Taiwan, and the Middle East crisis. He said, "We think China can play an important role in the relationship with Iran." (Reporting and editing by Bill Berkrot; Sarah Marsh, Andreas Rinke)
-
Two people killed in wildfires in western Turkey; a little-known group accuses arson
Wildfires in Turkey's western Izmir Province killed a second individual on Tuesday, as they raged across many regions for the seventh consecutive day. Meanwhile, a group with little known ties to Kurdish extremists claimed responsibility for dozens of arson incidents. Anadolu, the Turkish state news agency, reported that the latest victim was Ibrahim Demir, a backhoe driver who died fighting the fires in Odemis. A man, 81, who was bedridden and living alone in the same neighborhood, died earlier when the fires reached his home. This marked the first death that has occurred since the fires started. According to an online statement, a group calling themselves "Children of Fire", claimed responsibility for "tens of blazes" in six Turkish cities. The group is not well-known, but claims to be affiliated with the banned Kurdistan Workers Party, or PKK, a group that has been designated as terrorism by Turkey, United States, and European Union. The PKK has not responded to the claim. In May, it announced that its 40-year-old insurgency was coming to an end and that they were disbanding. Anadolu reported that firefighting continued in Izmir with the use of helicopters and planes, which dropped water on mountainous terrain. Authorities also closed roads leading to the Aegean holiday resort town Cesme. As water tankers approached, broadcasters showed footage of flames on the main highway. Scientists call the area around Turkey, Greece and countries of the Mediterranean "a hotspot for wildfires" because they are prone to blazes during hot and dry Summers. The climate has changed rapidly in the last few years, making these fires more destructive. Interior Minister Ali Yerlikaya stated that wildfires in the west of Turkey have destroyed around 200 homes. The victims were provided with alternative housing. Around 50,000 people temporarily evacuated from fire-prone areas earlier this week due to high temperatures, low humidities and strong winds. Anadolu reported that new fires broke out in Antalya, a resort in Turkey's south, and in forest areas near Istanbul. The authorities have been able to put out several of the fires. Reporting by Ezgi Erkoyun, Ece Toksabay and Jonathan Spicer; Editing by Bernadettebaum and Mark Heinrich
-
Latin America court calls on united climate action as legal battles mount
In a Thursday advisory opinion, the Inter-American Court of Human Rights said that states have an obligation to work together to reduce emissions and protect the environment in order to combat climate change. The advisory opinion requested by Colombia, Chile and other Latin American countries states that the countries must regulate and monitor corporate emission. State emissions targets should also be based on best available science. They should be proportionate to the respective contributions and not burden future generations. The decision is part of a global trend in climate litigation, as more and more countries, organisations and individuals turn to the courts for climate-related action. The European Court of Human Rights ruled that climate inaction is a violation of human rights. A South Korean court ruled that the climate change law of the country does not protect future generations. Vanuatu also asked the highest court of the United Nations to acknowledge the harm caused to the climate change when it renders its ruling on the legal obligations of countries to combat the issue and to address the consequences if they contribute to global warming. The decision is expected to be made this year. (Reporting and editing by Brendan O'Boyle; Alexander Villegas)
-
UN report: Major Rwandan coltan supplier bought smuggled Congolese mineral minerals
A forthcoming UN report claims that Rwandan-based Boss Mining purchased coltan from Congo. Mineral trade is used to finance M23 rebels in eastern Congo Boss, Rwanda and other countries deny any involvement in the smuggling of goods from Congo Reade Levinson and David Lewis, Sonia Rolley According to a report reviewed by the United Nations, a Rwandan company called Boss Mining Solution purchased minerals that were smuggled out of rebel-held areas in neighboring Congo. This helped fund an insurgency there. This is the first time that the U.N. has publicly named a company accused of being complicit in the trafficking of minerals looted in Congo after M23 insurgents took over a major mining area in the country last year. Boss Mining is named in a U.N. document that documents how recent territorial gains by M23 in Congo have further destabilized an area beset by decades-long conflict. U.N. accuses the heavily armed rebels of plundering Congo’s natural resources, and of committing atrocities on civilians. They are backed by Rwanda's government. The report stated that illegal mining and smuggling minerals into Rwanda from M23-controlled zones had "reached unprecedented heights". Diplomats said that the report, which was presented to the U.N. Security Council's sanctions committee for Congo at the beginning of May, will be published shortly. M23 has not responded to our requests for comment. Corporate records show that Eddy Habimana is a Rwandan entrepreneur who runs Boss Mining. U.N. investigators had identified Habimana as a minerals trafficker a decade earlier, with ties to rebels fighting in the eastern Congo. Habimana refused to comment on allegations made in an unpublished U.N. Report. According to Rwandan corporate records, two Russian-born mining executives also own Boss Mining. Yolande Makolo said on Wednesday that the U.N. Report "misrepresents Rwanda’s longstanding concerns about security" regarding Hutu groups who have attacked ethnic Tutsis both in Rwanda and Congo. This threat "requires a defense posture in our borders." The Congolese government spokesperson did not respond immediately to our questions, but officials in the Democratic Republic of Congo have accused Rwanda of fomenting conflict to plunder Congo’s mineral wealth. Mineral sales have been crucial to M23's funding. Insurgents swept through large areas of eastern DRC this year, including mines that produce gold, copper and tin, as well as the largest coltan mining operation in the world. An analysis of 2024 customs records revealed that Boss Mining was one of several Rwandan companies exporting significant volumes of coltan, despite the fact Rwanda produces very little of this metallic ore. Rubaya is the Congolese mine area, now controlled by the M23 group, which produces 15% of all the coltan in the world. The ore can be processed into tantalum, a heat resistant metal that is in demand by manufacturers of mobile phones, computer systems, and other electronics, aerospace, and medical applications. M23 insurgents took control of the two main crossings to Rwanda when they seized Bukavu, a border city located on the Congolese side, and Congo. According to a forthcoming U.N. Report, smuggled Congolese mineral are transported to Rwanda through these cities. They do so at night to "avoid detection." According to the report, 195 tons were discovered in just the last week of march. The report stated that Boss Mining purchased some of the minerals. Habimana responded to previous questions in June about Boss Mining operations by saying that his company had "never purchased coltan" from Rubaya. "All materials we purchase are in compliance with international guidelines designed to ensure mining doesn't fund armed group or contribute to abuses of human rights," he added. M23's rapid advance in eastern Congo has reignited a conflict that dates back to the Rwandan genocide of 1994 and has caused millions of people to be displaced. The rebels are determined to topple the Congolese Government. The Rwandan government has denied for years that it is involved in the trade of coltan looted by its neighbor, or that it supports M23. Rwanda's ruling Tutsi majority party shares the same concern as M23 about the alleged threat of rival Hutu groups in eastern Congo. According to a confidential U.N. document, Rwanda had 1,000 troops in Congo as of April. Rwanda and Congo signed on Friday a peace agreement mediated by the United States that will see Rwandan troops withdrawn from Congo. The agreement does not include the M23. The rebel group is a part of an independent, parallel mediation that Qatar leads to try and end hostilities. Success in these talks is crucial to any lasting peace. MURKY SUPPLY CHAINS An analysis of customs data revealed that Boss Mining exported 150 metric tonnes of coltan in 2024, worth at least $6.6 million. This figure represented 6.5% of all Rwandan coltan exports in 2024. Boss Mining was the sixth largest exporter of ore for the year. According to a Boss Mining worker who requested anonymity because he wasn't authorized to speak with the media, Boss Mining doesn't mine its own coltan, but instead buys it from Speck Minerals and other sellers. According to an employee of Boss Mining and a database online from the Rwanda Mining Board, the company has a mining license in Rwanda's Burera District where they mine wolframite. According to maps and the mining industry press, there are no major coltan mines in that area. According to reports from the Rwanda Mining Association, and the Rwandan mining press, Habimana also represents Speck Minerals. According to a publication from the 2024 Rwanda Mining Association, Habimana also uses this number for Boss Mining. Boss Mining's employee said that Speck operated two mines, in the Gakenke district and Muhanga district of Rwanda. These mines produce a total of 18 tons of colltan per month. In a 2018 audit conducted by a Thai smelter of the Muhanga Mine, the site owner was listed as Eddy Habimana and the mine name was listed as Speck. According to the audit, the production was 2.3 tons per month at that time. Habimana, in response to questions last month about Boss Mining in text messages, described the two mines in Muhanga & Gakenke as being part of Boss Mining operations. Was unable to verify current production at either mine. Habimana refused to answer any questions regarding Speck, or the employee's claims about production. U.N. investigators as well as non-governmental organisations and sources from the mining industry have accused M23 and their Rwandan supporters of smuggling minerals from Congo illegally for more than a decade. According to a U.N. Report published in December 2024, the scale of the trade increased after M23 took Rubaya. The rebels established a parallel government that controlled mining, trade, transportation, and taxation on minerals produced in the area. U.N. 2024 report stated that the rebels had taken Rubaya and established a parallel administration to control mining activities, trade, transport, and taxation of the minerals produced there. U.N. experts said that the resulting mixing of Congolese coltan with Rwandan production is "the most significant contamination of supply chain" to date. According to the report 2024, M23 received $800,000 per month in taxes from the coltan mines in eastern Congo. Mining experts claim that official statistics on Rwanda's production of coltan are not reliable. In May 2024, the central bank of Rwanda suspended publishing export statistics shortly after M23 had seized Rubaya. An analysis of the customs records revealed that Rwanda exported 2,300 tons ore coltan last year. Eleven geologists and mining experts who are based in the area said that Rwanda exports much more coltan than it produces. They have all visited mines and found that the Congo has a much larger mine site and more miners. Bill Millman, a mineral consultant based in the UK, said that Rwanda's coltan exports for 2024 are "totally implausible". Rwanda's government has not commented on its coltan output. In January, the DRC cut diplomatic ties with Rwanda after M23 took over the Congolese capital of Goma. Congo's army has repeatedly struggled to quell Rwanda-backed revolts. Kigali, however, has benefited for years from the corruption in the Congolese minerals trade and the lack of regulation. RUSSIAN CONNECTION Rwandan records of company show that Boss Mining, which was established in 2013, is owned by Habimana. The managing director denied buying Congolese colltan. These records reveal that Boss Mining also has two other owners, Yuriy tolmatchev (the managing director who denied purchasing Congolese coltan) and Alexander Konovalchik. According to UK and Russian company records, and Russian mining press reports, both men are dual citizens of the UK and Russia and have worked in the mining sector for decades. Now they live and work in Britain. According to corporate records, the two men own other companies which buy the coltan from Boss Mining. They are also directors of Metarex Ltd., according to Cyprus corporate records. According to corporate records from the United Arab Emirates provided by corporate intelligence firm Diligencia, Metarex is 100% owner of Novacore FZE. Tolmatchev manages Novacore, which according to corporate records and an analysis of customs data, purchases all the coltan produced by Boss Mining. Tolmatchev declined to comment on Novacore’s purchases. He stated that Boss Mining was the smallest exporter of coltan in Rwanda but refused to give more details. He said he had no idea what local traders were doing in North Kivu, the Congo province where the Rubaya mine is located. Tomaltchev responded that the company does not buy material from Congo. Konovalchik was not able to comment on the U.N. Report. He said that all minerals purchased by Boss Mining are "from Rwandan Sources". He then referred any further questions to Habimana. He said, "I don't control day-to-day operations." Reade Levinson reported from London, David Lewis from Nairobi, and Sonia Rolley from Paris. Filipp Lebedev contributed additional reporting from London. Marla Dickerson, Silvia Aloisi and Marla Dickerson edited the article.
-
Tennis-Challenge! Wimbledon say Avocados still in
Not banned, just sliced. The green avocado, the brunch staple, Instagram darling, and millennial favorite, is still on the menu. After reports that claimed Wimbledon was ditching avocados in favor of crushed peas, panic spread through brunch circles. The World Avocado Organisation also weighed in Thursday to defend the fruit’s reputation. Wimbledon organizers said on Thursday that there was no official ban. Avocados were spotted in an Itsu King Prawn Poke Bowl sold near Henman Hill. Fans can relax and stay calm. The All England Tennis Club has reduced the amount of avocados served on its premises and offers crushed British peas in some dishes. However, it was made clear that there is no ban, and the ingredient is still used in many products. The club has taken additional measures to reduce its emissions, including the removal from 30 of 42 kitchens, solar water tubes, and 100% renewable electricity for the grounds. It aims to achieve net zero emissions by 2030. Hattie park, AELTC’s senior sustainability manager and after a panel discussion on environmental issues, said: "We aim to achieve net zero in our operations by 2030, as well as net zero in everything else, including the supply chain, by 2040." We need to find an electric solution for the heating of the Centre Court and Number One courts. We're working on a solution to minimize disruption. The extreme heat is also a concern. On Monday, Wimbledon had its hottest start ever with temperatures reaching 32.3 degrees Celsius. Park, AELTC's Park, said: "I've worried about the extra heat for years." "We must adapt to climate change and reduce our fossil fuel impact." Park said that if we could have green and blue infrastructures, which are naturally cooling, they would help with natural resilience. (Reporting and editing by Ken Ferris; Amy-Jo Crowley)
-
Petrobras invests $4.8 billion to integrate Reduc and Boaventura
Petrobras, the Brazilian state-owned oil company, announced in a Thursday statement that it would invest 26 billion Brazilian reais (4.80 billion dollars) to integrate the Reduc refinery with the Boaventura complex of energy in Rio de Janeiro. Petrobras stated in a statement that the new structure would increase production by 76,000 barrels of diesel per day and by 20,000 barrels of jet fuel. Petrobras executives stated that the company plans to renovate a thermal plant in Reduc. The estimated cost is 860 million reais. The statement also states that the investment will be 2.4 billion reais in maintenance stops at Reduc up until 2029. Braskem, a Brazilian petrochemical company, announced that it was also planning to invest 4.3 billion reais in a polyethylene facility near Reduc. Petrobras owns 47% of voting share Braskem. Magda Chambriard, Petrobras' Chief Executive Officer, stated that the total investment by Petrobras and Braskem in petrochemicals as well as refining will be 33 billion reais. The announcement is made a day before Brazil's president Luiz inacio Lula da silva's visit to Reduc where he'll present the new investment alongside Chambriard. Lula, who began his presidency in 2023 has been pushing Petrobras to invest more in order to create economic growth and jobs in the region. Chambriard cited two cities from Rio de Janeiro as examples.
-
Sources say that BRICS will launch a guarantee fund to boost investments in member nations.
Two people with knowledge of the matter said that the BRICS group is about to announce a new fund to reduce financing costs and increase investment. Sources who spoke on condition of anonymity said that the initiative is modeled after the Multilateral Investment Guarantee Agency, or MIGA, which was established by the World Bank to help address global investment shifts in the face of uncertainty regarding U.S. policy. Brazilian officials consider the fund to be the focal point of the BRICS' financial agenda for the duration of Brazil's rotating presidency. Sources claim that the fund will be included in the joint declaration at the BRICS Summit in Rio de Janeiro, next week. Initially formed by Brazil and Russia, India, and China, BRICS later added South Africa, and expanded recently to include other developing countries to increase their influence in global governance. One source said that the proposed BRICS Multilateral Guarantee Mechanism (BMG), incubated by the NDB, had received technical approvals from the member states. It now awaits the final signoff of BRICS Finance Ministers. This is considered a formality. The Brazilian Finance Ministry has declined to comment. At this stage, the initiative does not require any additional capital from members. It aims instead to channel existing NDB funds to projects in developing countries. Officials involved in the negotiations have not disclosed the initial funding value, but they expect that each dollar of guarantees provided by NDB will mobilize between $5 and $10 in private capital to fund pre-approved project. This is a political guarantee instrument. One source stated that it sends a signal to the world that BRICS are alive and working on solutions. The technical preparations for the establishment of the fund should be completed by the end this year. This will pave the way for the pilot projects to get guaranteed funding in 2026. The BRICS nations face the same challenges as other developing countries in attracting private investment on a large scale in infrastructure, adaptation to climate change and sustainable development. Officials claim that the NDB's credit rating, which is higher than most of its member countries, can help to mitigate perceived risk for commercial banks and institutional investors. (Reporting and editing by Manuela Andreoni and Bernardo Caram)
AlixPartners estimates that only 15 electric car brands will be left in China by 2030.
AlixPartners, a consultancy, said that only 15 of the 129 brands currently selling electric vehicles and hybrids in China are financially viable by 2030. This is because intense competition has forced consolidation, and others have left the market.
AlixPartners, without naming brands, said that these 15 brands will account for 75% of China’s EVs and plug-ins by the end the decade. Each brand averages annual sales of 1,02 million units.
Stephen Dyer of AlixPartners, the head of their automotive practice in Asia said that consolidation in China will be slower than other markets because local governments are likely to continue to support non-viable brand names due to their importance for regional economies, employment, and supply chains.
China, which is the largest auto market in the world, is currently experiencing a price battle and overcapacity. Both are putting pressure on profitability. Other than BYD, Li Auto and other publicly listed Chinese electric vehicle makers have not achieved profitability for a full year.
Chinese regulators called on automakers to stop the price wars. Dyer, however, said that he believed the price wars would continue but with "hidden factors" such as zero-interest finance and insurance subsidies.
Dyer stated that the capacity utilisation ratio in Chinese auto plants fell to 50% on average last year. This is the lowest level in 10 years and has a negative impact on profits.
(source: Reuters)