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The Kremlin has said that Europe will feel the impact of its 'illegal sanctions' against Russia
In remarks published Sunday, the Kremlin stated that the stronger the sanctions Europe imposes on Russia, the greater the pain for Europe's economies. This is because Russia has become resistant to these "illegal" sanctions. Russia's invasion in Ukraine in 2022 has triggered a wave Western sanctions against Russia. It is now the world's most heavily sanctioned economy. The West said it hoped that its sanctions would force Vladimir Putin to seek peace with Ukraine. Although the economy contracted by 2022, in 2023 and in 2024 it grew faster than the European Union. The European Commission proposed new sanctions against Russia on June 10, targeting its energy revenues, banks, and military industry. However, the United States refused to tighten their own sanctions. When asked about comments by Western European leaders, including French President Emmanuel Macron, that toughening sanctions will force Russia into negotiations to end the war the Kremlin stated only logic and arguments can force Russia to bargain. The recoil of a gun will be more severe the more severe the sanctions package, which we, again, consider illegal. Dmitry Peskov, Kremlin spokesperson, told state TV that this is a two-edged blade. Peskov said to state television's Pavel Zarubin that he had no doubt that the EU would continue to impose sanctions, but that Russia has built up "resistance". Vladimir Putin stated on Friday that additional EU sanctions against Russia would only hurt Europe more. He also pointed out that Russia’s economy is expected to grow at a rate of 4.3% by 2024, compared with the 0.9% growth in the euro zone. Guy Faulconbridge is responsible for reporting and editing.
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More than a third on the sinking Tuvalu are seeking climate visas from Australia
Official figures show that more than a third of the population of Tuvalu in the Pacific, which scientists predict may be submerged under rising seas due to climate change, has applied for an historic climate visa to migrate from the country to Australia. Tapugao Falefou said on Sunday that he was "amazed by the number of people who are vying for the opportunity" and that the small community is interested in learning who will be the first group of climate migrants. Tuvalu is one of the most vulnerable countries to climate change. Experts say that it's causing sea levels to rise. It has 11,000 people living on nine atolls spread across the Pacific Ocean between Australia and Hawaii. Since the Australian visa lottery applications opened in this month, 1,124 applicants have been registered. Family members bring the total number of visa seekers to 4,052 as per the bilateral climate treaty and security. Officials said that the deadline for applications is July 18. An annual visa cap of 280 visas will be implemented to prevent brain drain in Tuvalu from migration to Australia. Tuvaluans can now live, study and work in Australia with the same health and educational benefits as Australians. Falefou stated that "Moving from the Falepili union treaty to Australia will provide an additional remittance for families back home." NASA scientists predict that by 2050, the daily tides of Funafuti will submerge up to half of its main atoll, which is home to 60% Tuvalu residents. The villagers are clinging to a 20-metre strip of land (65 feet) wide. This forecast assumes that sea levels will rise by 1 metre, but the worst-case scenario would see 90% of Funafuti submerged. Tuvalu's sea level has risen 15 cm (6") in the last three decades. This is 1.5 times higher than the global average. It has constructed 7 hectares (17 acre) of artificial land and plans to build more. The island hopes that the land will remain above the tides up until 2100.
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Officials say that the Indonesian-Chinese lithium battery plant will be operational by 2026.
An Indonesian official stated on Sunday that a lithium-ion plant to be built by an Indonesian firm and China's CATL will have a capacity of 6,9 gigawatts by the end 2026. Dwi Aggia, spokesman for the energy ministry, stated that the plant will expand in order to produce electric vehicles batteries with a storage capacity up to 15 GWh. The output of this plant will be sold on both domestic and international markets. The partnership between Indonesia Battery Corp. and Contemporary Amperex Technology Co. is a part of a $6 Billion power battery project that will be signed by 2022 by Indonesian firms, including the state-miner PT Aneka Tambang Tbk and a CATL Consortium. The partnership covers nickel mining, processing and manufacturing of EV batteries and battery recycling. Speaking at the groundbreaking of the project, Indonesian Energy minister Bahlil Lahadalia said that the plant could also produce a battery type to store energy generated by solar panels. The total production capacity could be up to 40 GWh with the solar panel battery, he added, noting that discussions were ongoing with the owner of the plant. The battery plant is being built in West Java. Meanwhile, the other sub-projects are in North Maluku in Indonesia's nickel rich province in eastern Indonesia. Indonesia, which has the largest nickel reserves in the world, has set a goal to produce 600,000 electric vehicles by 2030. This would be about 13 times more than the number of EVs sold in Indonesia last. (Reporting and editing by Kim Coghill, William Mallard, and Stefanno Sulaiman)
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Saudi Arabia's net direct foreign investment fell 7% in the first quarter
Saudi Arabia's foreign direct investment (FDI), as measured by the government, fell 7% from the previous quarter to the first quarter 2025. The kingdom is still lagging behind its ambitious FDI targets. In the three-month period ending March 31, the kingdom attracted 22.2 billion riyals (5.92 billion dollars) in FDI, down from 24 billion riyals (6.40 billion dollars) in the final three months of 2024. General Authority of Statistics figures show that net FDI increased by 44% in comparison to the same period last year, when the Kingdom received 15.5 billion riyals (about $4.13 billion). The Kingdom's Vision 2030 Economic Transformation Programme, which aims at reducing the dependence of the country on oil and expanding the private sector as well as creating jobs, is built around increasing FDI. Saudi Arabia is aiming to attract $100 billion in foreign direct investment by 2030. It has spent massively on "gigaprojects" (huge development projects) and expanded sectors such as sports, tourism and entertainment. The FDI numbers are still far below the target. Sources said that when the FDI target was announced for 2021, Saudi Arabia had been viewed as a capital source rather than a place to invest. Foreign investors may find it difficult navigating the business environment of the kingdom. A recent report from the International Monetary Fund said that the kingdom will likely post a budget deficit of $27 billion in this year. This deficit will be funded largely by borrowing. Saudi Arabia is the world's largest issuer of emerging market dollar debt, according to the IMF, and its net debt of 17% of GDP makes it one of the lowest indebted countries globally. Riyadh is encouraging foreign companies to invest in the country. Saudi Arabia has been the mandatory regional headquarters for companies that want to win state contracts since 2021. The government also announced that it would update the existing investment laws in order to promote transparency and equal treatment for local and foreign investors. ($1 = 3,7504 riyals). (Reporting and editing by Kate Mayberry; Pesha Magd)
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Document reveals EU plans to add Carbon Credits to New Climate Goal
A document from the European Commission, seen by, revealed that the Commission will propose to count carbon credits purchased from other countries toward the European Union’s 2040 climate goal. On July 2, the Commission will propose a legally-binding EU climate target 2040. In the beginning, the EU executive planned to reduce net emissions by 90% compared to 1990. However, it has been more flexible in recent months, as a result of pushback from countries such as Italy, Poland, and the Czech Republic who were concerned about costs. A summary of the internal proposal by the Commission, which was seen by, stated that the EU could use "high quality international credits" to achieve 3% of its emissions reductions towards the 2040 target. The document stated that credits would be phased-in from 2036 and that EU legislation will later specify the quality and origin criteria for the credits, as well as details on how they will be purchased. This would reduce the amount of emissions reductions and investments needed from European industries to reach the 90% target. The EU would purchase "credits" for the part of the target that is met by credits from projects abroad, such as forest restoration in Brazil, rather than reducing CO2 emissions in Europe. These credits, say their supporters, are an important way to raise money for projects that reduce CO2 emissions in developing countries. Recent scandals revealed that some projects that generated credits did not achieve the claimed climate benefits. In the document, the Commission said it would add additional flexibility to the 90% goal, as Brussels tries to contain the resistance of governments who are struggling to finance the green transition along with other priorities, such as defence, and from industries that say ambitious environmental regulations harm their competitiveness. The document stated that these include the integration of credits from projects that remove carbon dioxide from the atmosphere in the EU's market for carbon credits so that European industry can purchase these credits to offset a portion of their emissions. The draft also gives countries more flexibility in which sectors of their economy will do the heavy lifting in order to reach the 2040 target, "to help achieve targets in an efficient way". Un spokesperson for the Commission declined to comment on upcoming proposals, which may still be altered before they are published next week. The EU countries, the European Parliament and the European Commission must negotiate on the final target. They could also amend what the Commission suggests. (Reporting and editing by Timothy Heritage, Kate Abnett)
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China's flood-hit Guizhou is hit by heavy rain for the second time this week
On Saturday, heavy rains again hit China's southwest Guizhou Province. The city of Rongjiang was half submerged in floodwaters for the second time this past week. Residents were forced to evacuate higher ground. Rongjiang, a city of 300,000 people located at the confluences of three rivers, was inundated by torrential rains earlier this week, which caused six deaths and forced over 80,000 residents to flee. The city average rainfall for June was twice as much rain in 72 hours. The city's flood emergency level was raised to its highest level by authorities on Saturday in response to a new round of flooding. State broadcaster CCTV reported that the benchmark hydrological station at one of the rivers predicted the maximum water level to reach 253.50 meters (832 ft), surpassing the safety threshold by two metres. The Guizhou Provincial Government said that the floods began earlier this week when the water reached a peak of 256.7 meters, which was the highest level since 1954. They blamed "the extreme weather" for the flooding. Floods in Southwest China will have a major impact on local economies. Rongjiang has been removed from the national list of poverty in 2020. The unexpected boom in tourism began after the local soccer league, nicknamed "Village Super League", became a sensation on social media and attracted thousands of tourists and fans. The soccer pitch was submerged up to 7 metres on Tuesday. China has been fighting summer flooding for millennia. But some scientists claim climate change is leading to heavier rains and more frequent floods. Chinese officials warn that massive flooding could trigger "black swans" with devastating consequences such as dam collapses. CCTV, citing Saturday's report by the Ministry of Water Resources, reported that 13 major rivers were affected by storms in southern China during the past two weeks and rose above their warning level. (Reporting and editing by Shanghai & Beijing Newsroom)
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Senate Republicans want to end the EV tax credit before September 30
The U.S. Senate Republicans released a revised budget and tax bill late Friday that would eliminate the $7,500 credit for new electric vehicles and leases as well as $4,000 credit for used EVs by September 30. Prior to the new version, the credit would have been terminated 180 days after it was signed into law for new vehicles, 90 days after that for used vehicles. It would also have been terminated immediately for vehicles that were not assembled in North America or those that met other requirements. The Republicans have targeted EVs in a variety of ways, reversing former president Joe Biden's policies that encouraged the use of electric vehicles and renewable energies to combat climate change and reduce emission. The House of Representatives' version would extend the $7,500 tax credit for new-EVs through 2025 and 2026, respectively, for automakers who have not sold 200,000 electric vehicles before it is eliminated. The Senate bill includes a provision that eliminates fines for failure to comply with the requirements. Corporate Average Fuel Economy rules In a move designed to make it easier for automakers build gas-powered cars. The Republican bill exempts auto loan interest from tax for new cars manufactured in the U.S. until 2028. However, it phases out for individuals making more than $100,000 per year. Senate Republicans Dropped a bid to make the U.S. Postal The bill will scrap thousands of electric cars and charging equipment after a decision by the Senate Parliamentarian. The U.S. The U.S. President Donald Trump This month, a resolution was signed Congress has approved a bill to block California's historic plan to stop selling gasoline-only cars by 2035. This plan was adopted by 11 states, representing one third of the U.S. automobile market. (Reporting and editing by David Shepardson)
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China's flood-hit social security network expands as extreme rainfall takes its toll
China has increased the financial protections offered to segments of the population who are affected by flood control measures during extreme rain, including direct compensation and payment for livestock losses. Diverting floodwaters into areas adjacent to rivers in China is an important step to manage downstream flooding. China, as extreme rainfall increases, is using these areas more and more. Some of them were unused and populated with farms, crops and even residential structures, which has exacerbated social tensions. According to the revised rules for compensation related to flooding diversions, released late Friday, the central governments will now be responsible for 70% of the compensation funds. Local governments are responsible the remainder. The ratio used to be determined based on the actual economic losses of the local governments and their fiscal condition. For the first time, compensation will be paid for livestock and poultry that are unable to be relocated before floodwaters arrive. Prior to this, compensation was only available for the loss of working animal. The summer of 2023 saw almost 1,000,000 people relocated from Hebei, the province that borders Beijing. Record rains forced the authorities to divert water to populated areas to store it. This angered many who were angry about the loss of their homes and farms to save Beijing. China has designated 98 flood diversion zones spanning major rivers basins, including the Yangtze River Basin which is home to one-third of the population. Eight flood storage areas have been used during the Hebei floods of 2023. China Meterological Administration officials told reporters that since the East Asia Monsoon began in early June, the precipitation on the middle and lower Yangtze River has been two to three times greater than normal. They said that in other parts of China the daily rainfall measured at 30 meteorological stations, including Hubei and Guizhou, broke records during June. Guizhou, China, was at the center of China's flood relief efforts this week. One of its cities had been hit by flooding of a magnitude that only happens once every 50 years and with a speed that stunned its 300,000 inhabitants. This prompted Beijing on Thursday to pledge to relocate vulnerable populations and industries into low-flood zones and to allocate more space to flood diversion. (Reporting and editing by Kim Coghill; Ryan Woo)
Russia oil fleet shifts away from Liberia, Marshall Island flags amid US sanctions crackdown
Lots of oil tankers utilized by Russia have stopped cruising under the Liberian and Marshall Islands flags in recent weeks after the United States increase sanctions enforcement on ships connected to those windows registries, according to shipping information and interviews with industry and federal government officials.
The shift reflects the close relationship in between the U.S. and the flag administration business of Liberia and the Marshall Islands, which are headquartered not in their home countries, but in Virginia, just miles from Washington D.C. and within the jurisdiction of U.S. sanctions enforcement.
The heavy previous use of those flags also represents a. possibly enduring vulnerability for Russia's oil fleet, whose. tankers will stay responsible for sanctions infractions even after. they have changed to a brand-new flag outside of U.S. reach,. according to energy and sanctions professionals.
They have actually created an enduring liability and long-lasting threat,. said Craig Kennedy, a center partner at Harvard University's. Davis Center for Russian and Eurasian Research Studies.
Commercial ships need to be registered, or flagged, with a. particular country to guarantee they are adhering to. worldwide acknowledged security and environmental guidelines.
analyzed LSEG and Lloyd's List Intelligence shipping. information, and spoke with federal government authorities, flag registry. representatives and shipping experts to supply previously. unpublished information on the function of flag computer system registries in the recent. wave of U.S. sanctions statements targeting Russia's oil. fleet, and the vulnerabilities they position to Russian oil. shipping.
The G7, the EU and Australia imposed a $60 a barrel cost. cap on Russian oil exports in December 2022 as part of larger. financial sanctions focused on cutting Moscow's earnings without. disrupting worldwide energy products, following Russia's intrusion. of Ukraine.
When, the cap bans the use of Western maritime services. tankers bring Russian oil priced at or above the cap. A U.S. official, who requested anonymity when discussing the. sanctions, validated that the Liberian and Marshall Islands flag. pc registries qualify as Western services.
Given that October, the U.S. Treasury Department has enforced. sanctions on some 41 oil tankers for Russian price cap. infractions, 24 of which were flying the Liberian flag and among. which was using the Marshall Islands flag.
Nearly all of the other tankers were flagged in Gabon,. including 12 of the 14 targeted by the Treasury Department in. its newest bundle of sanctions on Feb. 23. Of those. Gabon-flagged tankers, in which Russia's top shipping business. Sovcomflot (SCF) has an interest, a minimum of three had recently. flown the Liberian flag, according to ' analysis of. shipping data.
Those tankers were among a slew of ships in the SCF fleet. moving to Gabon, according to the data: as of early February,. SCF had 42 tankers in its 147 tanker fleet that had just recently. shifted to the Gabon flag, mainly from Liberia and Panama.
SCF declined to comment and Russia's transportation ministry did. not react to an ask for remark.
The Liberian flag windows registry informed that all the. Liberian-flagged vessels which were sanctioned remained in the. process of having their Liberian flags eliminated. We are all. residing in a different world right now and the registries require to. adapt to what the international scenario is at this point, the. Liberian pc registry said.
The computer registry declined to talk about its previous. organization with SCF.
A U.S. authorities informed that Liberia had actually been actively. engaged with the Treasury Department, and that approved. tankers have about a three-month unwind duration to change to. another flag.
Marshall Islands registry officials are also in contact with. U.S. firms on the problem, a Marshall Islands windows registry. spokesperson said.
Gabon Transportation Minister Loic Moudouma confirmed to. that numerous tankers had left the Liberia windows registry for. Gabon recently, and said Gabon would de-list them if they are. found to be participated in prohibited activity.
We are not a flag pc registry for the world's rogue navigators. or transporters, he stated.
If any ally, any partner on the planet, understands that. there is a Gabonese ship flying the Gabonese flag and carrying. out prohibited activities, all they need to do is send us the file. in full and we will take actions to get rid of the flag from this ship. ourselves. Whether Russian or any other citizenship.
Panama authorities did not respond to a request for. comment.
INVITING TROUBLE
The sanctions enforced up until now have actually sent a chill through the. industry involved in Russian trade.
A number of the still to be de-listed Liberian-flagged vessels,. Are stuck, sitting at anchor outside of ports. throughout the world including in the Black Sea, according to. shipping information, marking a costly liability for their owners and. those economically linked to their cargoes.
U.S. Treasury Department sanctions can have a contagion. effect on tankers by detering market gamers from dealing with. them, according to Harvard's Kennedy.
In the dollar denominated world of oil trading, why put a. deal worth 10s of millions of dollars at danger by utilizing a. obstructed tanker? You're simply inviting difficulty for everybody. included, he said.
Switching to the Gabon flag might also welcome extra. threat at ports for tankers bring Russian oil.
A U.S. authorities stated tankers that brought Russian oil above. $ 60 that switch to the Gabon flag might likewise have a more. difficult time with port authorities concerned about the security. of aging tankers.
The United States, European Union and UK provided a letter. late last year pushing Liberia, the Marshall Islands and. Panama to increase oversight of ships carrying their flags to. ensure they do not carry Russian oil offered above the cost. cap, a source informed at the time.
While the U.S. has been the primary enforcer of the rate. cap, other countries in the system are working with. Washington to tighten the screws.
We're making it harder for Russia to utilize its shadow fleet,. which in turn would require more volume back into the G7 fleet,. where company are certified with the cap, Olga. Dimitrescu, an official at the UK Treasury's sanctions. enforcement arm OFSI told a Feb. 1 podcast with ship insurance provider. NorthStandard.
U.S. officials state delivering practices associated with the. export of Russian oil above the West's rate cap remain in their. crosshairs. We are really worried about evasion, I think that's. clear from the actions we've taken, Claire McCleskey, an. official with the U.S. Treasury's sanctions enforcement arm. OFAC, told a New york city shipping conference last month.
You can expect our continuing to take action..
(source: Reuters)