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Van Oord Expands its Trencher Fleet
Dutch offshore installation firm Van Oord has introduced Jet-It as the latest unit to join its trencher fleet, following the completion of a test campaign in the North Sea.Building on the expertise gained from its previous trenchers, Dig-It and Deep Dig-It, Van Oord has developed another trencher dubbed Jet-It.With the addition of the latest unit, Van Oord now operates three trenchers, all designed for the purpose of cable burial.While Dig-It and Deep Dig-It feature mechanical cutting and jetting technology, the Jet-It is equipped with jetting technology only.According to Van Oord, it boasts an efficiently designed system which uses high-pressure water to fluidize the substrate and create a trench.“Each trencher in our fleet has its own strengths, allowing us to tailor our approach to soil conditions, trench depth, and project requirements. With the arrival of Jet-It, we can offer even greater efficiency in subsea cable installation,” Vann Oord said on social media.It is said to be ideally suited for the burial of inter-array and export cables in sandy and light clay soils.With two high-pressure, frequency-driven water pumps, it is capable of trenching to depths of up to 3 meters. Multiple integrated sensors enable the trencher to operate at high speed with great precision.Designed for fast mobilization, the Jet-It can be deployed on any vessel in a single lift, Van Oord said.
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The global trade situation is further complicated by the contradictory statements of US and China.
In an interview published Friday, U.S. president Donald Trump claimed that tariff negotiations with China were underway, but Beijing denied there were any talks taking place. This is the latest of a series conflicting signals about what progress has been made in de-escalating a trade battle threatening to sap growth globally. Trump told TIME that there were talks and that Chinese President Xi Jinping called him. He repeated this assertion to reporters on his way out of the White House to Rome, where he would attend the funeral for Pope Francis. China responded in a statement from its foreign ministry posted by the Chinese embassy in the U.S., "China and the U.S. have NOT been in consultation or negotiations on #tariffs." "The U.S. shouldn't be creating confusion." Speaking to reporters on Air Force One, Trump said that it would be great if China opened its markets to U.S. goods and that tariffs might help make this happen. "Free China. "Let's go into China and work it," he said. "That would be fantastic. It would be great, but I am not sure I will ask for it. They don't want the door open. Wang Yi, the Chinese Foreign Minister, said on Saturday that Beijing adheres to international rules regarding U.S. tariffs and will seek solidarity with other nations. According to a Chinese foreign ministry statement, Wang stated that certain countries have their own priorities and engage in coercive and bullying transactions. They also provoke trade wars without any reason. The back and forth adds to uncertainty about Trump's tariff policy. Not just in regards to China, but to the dozens countries that are scrambling to make their own deals, to reduce the heavy import taxes he imposed since reentering the White House. His team of negotiators conducted what was a lightning round trade talks with the foreign officials that had swarmed Washington for the spring meetings the International Monetary Fund Group and World Bank Group. While Trump officials, including Treasury Secretary Scott Bessent, touted signs of rapid progress many of their colleagues were more circumspect. The IMF's finance chiefs were sending home a renewed sense of urgency to reduce the risk posed by tariffs. "I am walking away from these meeting with a clear understanding of what is at stake, and the risks for jobs, growth, and living standards around the world," Irish finance minister Paschal Donohoe said. The meetings here... reminded of the need to reduce uncertainty in the coming weeks and months. DE-ESCALATION There were some signs of de-escalation, even though it was unclear whether a deal is being made to avoid the imposition in early July of higher tariffs. Business groups claim that China has exempted certain U.S. pharmaceuticals from the steep tariffs it imposed on Chinese imports earlier this month. A list of 131 categories of products that are allegedly being considered for exemptions is also circulating in some business and trade groups. The list includes chemicals, vaccines and jet engines. China has yet to publicly address the issue. Bessent said that both sides view the current situation as unsustainable. Trump told reporters in the White House that Japan was very near to signing a trade agreement. Analysts see this as a test case for other bilateral agreements, even though the talks may be difficult. Many expect Shigeru Shiba, the Prime Minister of Japan, and Donald Trump to announce an agreement when they meet in Canada at the Group of Seven summit in June. Trump told TIME he made "200 deals", which he said would be finished in three to four weeks. He declined to give specifics. He said that he would be happy if tariffs remained between 20% and 50% in a year. The president has claimed that his thickets of trade barriers would revive U.S. Manufacturing Industries that have been eroded by global competition. The majority of economists warn, however, that this would increase prices for U.S. consumer and raise the risk of recession. The U.S. stock market was on track to gain a week, even though it has been down about 10% since Trump took office in January. It is also lagging behind other indexes, and the dollar has dropped at an unprecedented pace. Investors were encouraged by signs that the U.S. was willing to ease off its trade war with China. Wall Street's major indexes increased slightly as investors sought clarity on the U.S./China trade front. Trump has imposed tariffs on imports from all countries, as well as a 10% blanket tariff. He also increased duties on autos, steel and aluminum. He also proposed additional industry-specific taxes on semiconductors and pharmaceuticals. According to industry estimates, this could lead to a 12.9% increase in drug prices across the U.S. The IMF meeting this week was dominated by discussions about Trump's tariffs. Finance ministers were vying for one-on-1 meetings with the U.S. Treasury secretary. Bessent described the initial discussions with South Korea on Thursday as "very succesful". Seoul called it a "good beginning." Next week, further discussions will take place. The Swiss government said that it was satisfied with the initial meeting between Bessent and Switzerland. The U.S. Trade Office said that it was "constantly engaging" with Japan and others countries but said Trump would decide whether or not they proceed. The IMF's Kristalina Gheorgieva warned that there was no sign of progress in other countries despite her urging. She said this week that they could lead to a serious slowdown of global growth. Reporting by Bureaus Worldwide; Writing by Andy Sullivan, Dan Burns and Editing by Chizu Nomiyama, Marguerita Choy
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Angola's Finance Minister says that country stress testing for lower oil prices and IMF program is more likely
Angola runs stress tests to assess the impact of a drop in oil prices on the government's finances, said Finance Minister Vera Daves de Sousa on Friday. She added that this situation makes a request for a loan program from the IMF more likely. After U.S. President Donald Trump's announcement of sweeping tariffs, Brent oil futures briefly fell below $60. This was the lowest level for four years. The contract closed at $66.91 per barrel on Friday. Daves de Sousa said in an interview at the International Monetary Fund Spring Meetings in Washington that "we are rolling out stress tests scenarios." De Sousa explained that a decline of less than $45 in oil prices would require an additional budget. She said that the government is working to improve tax administration, increase enforcement of property taxes and mitigate the effect of lower oil prices. Many smaller and riskier emerging countries, including Angola have felt the impact of recent volatility in fixed income markets, particularly U.S. Treasuries. Angola was forced to pay $200m earlier this month when JPMorgan issued an margin call on a $1billion total return swap, a loan that the lender issued in December and which was backed by dollar bonds issued by Angola. De Sousa stated that she was in discussions with JPMorgan about measures that could be taken to avoid a margin call. She also said that investors and rating agencies had not given her any negative feedback on the payment. She said that there were no negative connotations. Instead, they were surprised at how quickly we had been able to raise such a large amount of money. The government is currently examining the possibility of requesting an IMF financing program. De Sousa, when asked about Chinese loans backed with oil, said that the government would have to pay another $8 billion. It expected to be in a position to pay this back by 2028, rather than 2030-2031 as originally anticipated. Angola is also borrowing more money, mainly from China's EXIM Bank, but this money was not secured by collateral, it was concessional, and allocated to specific projects, such as improving internet capability in rural areas, or improving education. De Sousa stated that Angola would love to tap into international capital markets, but does not plan to do so for the time being. We want to go on the market but with the way things are going, this isn't the right time. We will keep an eye on it to make sure we are prepared for the next time. De Sousa said that officials from the Trump administration had confirmed in Washington, in meetings held there, their commitment to fund the Lobito railway corridor without specifying the exact amount. The project is designed to transport vital minerals from central Africa's copperbelt into the West. (Reporting and editing by Paul Simao; Karin Strohecker)
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The global trade situation is further complicated by the contradictory statements of US and China.
In an interview published Friday, U.S. president Donald Trump claimed that tariff negotiations with China were in progress, but Beijing denied there were any talks taking place. This is the latest in a string of contradictory signals about what progress has been made in de-escalating a trade conflict that threatens to sap global economic growth. Trump told TIME that talks were underway and that Chinese President Xi Jinping called him. He repeated this claim to reporters on his way out of the White House to Rome for the funeral service of Pope Francis. China responded in a statement from its foreign ministry posted by the Chinese embassy in the U.S., "China and the U.S. have NOT been in consultation or negotiations on #tariffs." "The U.S. shouldn't be creating confusion." Speaking to reporters on Air Force One, Trump said that it would be a great win for the United States if China opened its markets to U.S. goods and that tariffs might help make this happen. "Free China. "Let's go into China and work it," he said. "That would be fantastic. It would be great, but I am not sure I will ask for it. They don't want the door open. The back and forth added to the uncertainty over the current state of play regarding Trump's erratic policy. Not only in regards to China, but as it pertains the dozens countries scrambling for their own deals to relieve the burden of hefty import tax he unleashed after returning to the White House. His team of negotiators conducted what was a lightning round trade talks with the foreign officials that had flooded Washington this week to attend the spring meetings for the International Monetary Fund (IMF) and World Bank Group. While Trump officials, including Treasury Secretary Scott Bessent, touted signs of rapid progress, their counterparts, such as the finance chiefs from the IMF, were more circumspect. They were also urged to return home urgently in order to reduce the risk posed by the tariffs. Paschal Donohoe, Irish Finance Minister, said: "I am walking away from these meeting with a clear understanding of what is at stake, and the risks there are for jobs, growth, and living standards around the world." The meetings here reminded me why we must leave no stone unturned over the next few months and weeks to find ways to reduce uncertainty. DE-ESCALATION There were some signs of de-escalation, even though it was unclear whether or not deals would be struck to prevent the imposition of higher tariffs in early July. China has exempted certain U.S. products from its high tariffs. Business groups claim that Beijing allowed U.S. pharmaceuticals to enter China without paying the 125% duty it imposed in response to Trump’s 145% tariffs. A list of 131 categories of products that are allegedly being considered for exemptions is also circulating in some business and trade groups. The list includes chemicals, vaccines and jet engines. China has yet to make a public statement on the matter. Trump's administration also signaled in recent days that it was looking to defuse tensions with China. Bessent said both sides view the current situation as untenable. Trump also told reporters in the White House that an agreement with Japan was close. Analysts see this as a test case for other bilateral agreements, even though the talks may be difficult. Many expect Shigeru Shiba, the Prime Minister of Japan, and Donald Trump to announce an agreement when they meet in Canada at the G7 Summit in June. Trump told TIME he made "200 deals", which he said would be finished in three to four weeks. He declined to give specifics. He said that if tariffs remained between 20% and 50% in a year, he would call it a victory. Trump has claimed that his thickets of trade barriers would revive U.S. Manufacturing Industries that have been hollowed by global competition. However, economists warn that this would increase prices for U.S. customers and the risk of recession. U.S. stock indexes are on track to gain a week, even though they have fallen by about 10% since Trump took office in January. They lag other countries' indexes, and the dollar is falling at an unprecedented pace. The dollar rose for the first time in over a month on Friday, while European and Asian shares were headed to a second consecutive week of gains. Investors took comfort from signs that the U.S. was willing to end its trade war with China. Wall Street's major indexes grew slightly as investors sought clarity on the U.S./China trade front. Trump has imposed additional tariffs on autos, steel and aluminum in addition to country-specific duties. Trump has also proposed additional levies for the pharmaceutical and semiconductor industries. According to industry estimates, this could lead to a 12.9% increase in drug prices across the U.S. The tariffs of Donald Trump dominated the IMF meetings in this week. Finance ministers vied for one-on-1 meetings with the U.S. Treasury secretary. Bessent described the initial talks with South Korea on Thursday as "very succesful." Seoul referred to it as a "good beginning." Next week, further discussions will take place. Switzerland said that it was also satisfied with the initial meeting between Bessent and Switzerland. The U.S. Trade Office said that it was "constantly engaging" with Japan and others, but Trump would decide whether or not they proceed. The IMF's Kristalina Gheorgieva warned that the lack of progress in other countries could lead to a serious slowdown of global growth. Reporting by Bureaus Worldwide; Writing by Andy Sullivan, Dan Burns and Editing by Chizu Nomiyama, Marguerita Choy
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Dollar gains and tech shares are boosting the stock market
The majority of stock indexes rose on Friday. The Nasdaq was up over 1% during afternoon trading, as shares related to tech gained. Meanwhile, the dollar is headed for its biggest weekly gain in more than a month. Alphabet, the parent company of Google, saw its shares rise 1.5% on Nasdaq after exceeding profit expectations and reaffirming AI spending targets. This earnings season, uncertainty surrounding the impact of U.S. president Donald Trump's tariff offense and the global trade tensions that resulted have dominated the results calls. Trump claimed in an interview published on Friday that tariff talks with China were in progress, but Beijing denied there were any discussions taking place. This is the latest of a series conflicting signals about what progress has been made in de-escalating a trade battle that threatens to sap global economic growth. Trump told Time magazine there were talks taking place, and that Xi Jinping, the Chinese president had called him. The tit-for-tat tariffs, which began on April 2, when Trump announced hefty import duties, had threatened to stall the trade between two of the world's largest economies. They also sparked concerns of a global slowdown. Chip Rewey of Rewey Asset Management in New Jersey, an investment adviser registered with the state, said: "This week, you may have felt some relief that the worst-case scenario of Trump's tariff actions will not come true." We haven't yet returned to the highs. "I think we'll be somewhere between those two ranges for a long time." The S&P 500 is expected to rise for the week while Europe's STOXX 600 has risen more than 2% in the past week. The Dow Jones Industrial Average increased 14.98 points or 0.04% to 40,108.31. The S&P 500 gained 33.83 points or 0.62% to 5,518.60. And the Nasdaq Composite increased 182.65 points or 1.07% to 17,349.66. The MSCI index of global stocks rose by 4.47 points or 0.54% to 824.28. The pan-European STOXX 600 ended with a gain of 0.35%. The Nikkei 225 index rose 1.8% in Japan on Friday. It has recovered all of its losses following Trump's announcement that the United States would be imposing the highest tariffs it had ever seen. Trump suspended most of these tariffs, with the exception of China, which will have a 10% tariff. The dollar has recovered slightly in relation to the euro and the yen after taking a hit due to the tariff news. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and others) rose by 0.07%, reaching 99.49. Meanwhile, the euro fell 0.1%, at $1.1377. The dollar gained 0.66% against the Japanese yen to reach 143.56. The price of gold, which has risen this year due to investors seeking safe haven assets that are not tied to the dollar, was last down by 1.94% on Friday, at $3,283.21 per ounce. The yield on the benchmark 10-year U.S. notes dropped 3.7 basis points, to 4.268% from 4.305% at late Thursday. U.S. Treasury rates declined after recent hopes that the U.S. China trade war would ease and investors considered the possibility of the Federal Reserve lowering interest rates if economic activity slowed.
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Burkina Faso grants mining license to Russia's Nordgold project
The military-led West African Government announced that Burkina Faso had granted an industrial mining license to Russian miner Nordgold to develop a gold project. This was to capitalize on the record high gold prices and strengthen an economy that has been hit by insecurity. The move is a sign of the deepening economic relations between Russia and Burkina Faso as the junta which seized power in Burkina Faso in 2022 continues to pivot away from its traditional Western allies toward Moscow. The Niou gold deposit is located in Burkina Plateau-Central's Kourweogo Province. It covers an area of 52.8 square kilometers (20.44 square miles). This area was previously owned by Jilbey Burkina and now belongs to Nordgold. Nordgold operates the Bissa, Bouly and Bouly mines. The Council of Ministers announced late Thursday that it expected the Niou Mine to produce approximately 20,22 metric tonnes of gold in its eight-year lifespan. Jilbey Burkina retains 85% of the project while the Burkinabe Government will own the remaining 15%, without any financial contribution. This is in line with the new mining regulations in the country. The council of ministers stated that the project would contribute over the course of its life 51.5 billion CFA Francs ($89million) to the budget and 7.06 billion CFA Francs to the mineral wealth fund. The geopolitical instabilities and the trade policies of U.S. president Donald Trump have driven gold prices up by more than 25% this year. Burkina Faso is a major producer of gold. The country has been fighting jihadist militants in Burkina Faso since 2015. Swissaid, a non-governmental organization that analyses mining, estimates the country's production at over 57 tonnes in 2023. There are several mining companies in the region, including Endeavour Mining and IAMGOLD from Canada and West African Resources Ltd. The cooperation with Nordgold, and other industrial mines are important for Burkina Faso's government as it faces budget constraints. Ulf Laessing is the head of the Sahel program at the Konrad Adenauer Foundation in Germany. He said that the Niou project would be located in an area of large artisanal mines and could deprive people who work as artisanal gold miners from important income. The government stated that the mine would create 204 jobs and also help sustain employment at Bissa Gold SA, which is located nearby. (Reporting from the newsroom, with additional reporting by Maxwell Akalaare Adombila. Editing by Maxwell Akalaare Adombila and Portia Crowe.
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LyondellBasell's quarterly profit forecast is missed due to weak volume
LyondellBasell missed Wall Street's expectations of quarterly profit on Friday due to maintenance downtime, lower volumes and its largest segment, supplying raw materials for the automotive, construction, and electronics industries. The chemical industry has been suffering due to a slump in demand and the rising cost of raw materials, particularly in Europe. Businesses are also being forced to reconsider their strategy in the region due to the strict regulatory environment. LyondellBasell has launched a $500 million initiative to increase earnings in order to navigate the continued macroeconomic volatility. The company stated on a earnings call that they have cut costs by around $300 million due to portfolio management measures such as refining exits from businesses and a strategic review of their European operations. LyondellBasell said it will provide an update on five European assets that are still being reviewed by the middle of the year. Eastman Chemical announced on Thursday cost-cutting initiatives in response to the market volatility. This was partly due to renewed trade concerns resulting from President Donald Trump’s tariff policies. The business activity in the Eurozone barely increased in February as a slight increase in services barely compensated for the ongoing decline in manufacturing. LyondellBasell’s largest segment in terms of sales volume, olefins and polyolefins, Americas, reported core adjusted earnings of $251 millions, down from the $521 million earned last year as higher feedstock prices impacted margins. The adjusted core profit for its Intermediates & Derivatives segment, which produces oxyfuels, intermediate chemicals and intermediate chemicals, dropped 69.9% from the previous period to $94 millions. In the second quarter, the company anticipates that seasonal demand will improve across all businesses. According to data compiled and analyzed by LSEG, on an adjusted basis the company reported a quarterly profit in the amount of 33 cents. This was below analysts' estimates of 43 cents. (Reporting and editing by Vijay Kishore in Bengaluru, Shailesh Kumar, and Pooja Menon)
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The FX effect has a negative impact on the pre-tax profits of Chilean miner Codelco
Codelco Chile, the largest copper producer in the world, reported on Friday a slight increase in production for the first quarter. However, this was not enough to offset the exchange rate effects that caused the company's profits to plummet. Codelco reported a 53% decline in pre-tax profits compared to the same period last year, falling to $213 millions for the first quarter of the year. The state-owned company said that its own production increased by 0.3% to total 296,000 metric tonnes, while total production, including its stakes at Freeport's El Abra and Anglo American Sur, as well as Teck's Quebrada blanca, rose 1.6% to total 324,000 metric tonnage. The miner aims to increase output for the second consecutive year after it fell to a quarter century low in 2023. Codelco reported that rains in the first quarter and a nationwide power outage in February reduced copper production by 10,000 tonnes. Codelco reported that core earnings (earnings before interest, tax, depreciation, and amortization, or EBITDA) fell by nearly 12%, to $1.35billion, as the peso currency lost value. The Chilean Peso increased by 2.76 percent from March 2024 until March 2019. Codelco said that the company had experienced rising costs as a result of planned maintenance at mines and plants, as well higher operating costs in equipment leasing. These costs were partially offset by lower input costs, such as power and fuel. The miner stated that the Andesita segment is expected to begin production at El Teniente in the second quarter, followed by Andes Norte in the third. The ramp-up at Rajo Inca in Codelco’s Salvador Division is expected to finish in the third quarter. Reporting by Fabian Cambero, Natalia Siniawski and Alistair Bell; editing by Kyrry Madry and Alistair Bell
EXCLUSIVE-Putin growing concerned by Russia's economy, as Trump mulls more sanctions
President Vladimir Putin has grown progressively worried about distortions in Russia's. wartime economy, simply as Donald Trump pushes for an end to the. Ukraine conflict, five sources with knowledge of the circumstance. told Reuters.
Russia's economy, driven by exports of oil, gas and. minerals, grew robustly over the previous two years in spite of numerous. rounds of Western sanctions enforced after its invasion of. Ukraine in 2022.
However domestic activity has actually ended up being strained in recent months. by labour lacks and high interest rates introduced to tackle. inflation, which has accelerated under record military costs.
That has actually added to the view within a section of the. Russian elite that a worked out settlement to the war is. preferable, according to 2 of the sources familiar with. believing in the Kremlin.
Trump, who went back to office on Monday, has promised to. quickly fix the Ukraine conflict, Europe's biggest because. World War Two.
This week he has actually said more sanctions, in addition to tariffs, on. Russia are likely unless Putin negotiates, adding that Russia. was heading for big trouble in the economy. A senior Kremlin. aide said on Tuesday that Russia had up until now gotten no specific. proposals for talks.
Russia, naturally, is economically interested in. negotiating a diplomatic end to the dispute, Oleg Vyugin,. previous deputy chairman of the Reserve bank of Russia said in an. interview, pointing out the risk of growing economic distortions as. Russia turbo-charges military and defence costs.
Vyugin was not one of the 5 sources, who all spoke on. condition of anonymity due to the level of sensitivity of the scenario. in Russia. The degree of Putin's concerns about the economy,. described by the sources, and the influence of that on views. within the Kremlin about the war, are documented here for the. very first time.
Reuters has actually previously reported that Putin is prepared to. discuss ceasefire choices with Trump but that Russia's. territorial gains in Ukraine need to be accepted which Ukraine. must drop its quote to sign up with the U.S-led NATO military alliance.
Kremlin spokesperson Dmitry Peskov, when asked about the. Reuters reporting, acknowledged bothersome elements in the. economy, however stated it was developing at a high rate and was able. to satisfy all military requirements incrementally along with all. welfare and social requirements.
There are issues, but regrettably, issues are now. the buddies of almost all nations of the world, he said. The scenario is evaluated as stable, and there is a margin of. safety.
Trump is focused on ending this ruthless war, by. engaging a wide range of stakeholders, White Home National. Security Council representative Brian Hughes stated in action to. Reuters' questions. In current weeks, Trump's advisers have. walked back his boast that the three-year-old war could be. solved in a day.
Simply days before Trump's inauguration, outbound U.S. president Joe Biden's administration imposed the broadest. bundle of sanctions to so far target Russia's oil and gas. earnings, a relocation that Biden's nationwide security adviser, Jake. Sullivan, said would provide Trump utilize in any talks by. applying economic pressure on Russia.
Putin has said that Russia can battle on as long as it. takes and that Moscow will never bow before another power over. essential national interests.
Russia's $2.2 trillion economy had actually till just recently shown. exceptional endurance throughout the war, and Putin has actually applauded top. financial authorities and business for circumventing one of the most. strict Western sanctions ever troubled a major economy.
After contracting in 2022, Russia's GDP grew faster than the. European Union and the United States in 2023 and 2024. This. year, nevertheless, the central bank and the International Monetary. Fund forecast sub-1.5% growth, although the government tasks. a somewhat rosier outlook.
Inflation has actually edged toward double digits regardless of the main. bank hiking the benchmark rates of interest to 21% in October.
There are some issues here, particularly inflation, a specific. getting too hot of the economy, Putin said in an annual news. conference on Dec. 19. The government and the central bank are. already entrusted with bringing the pace down, he stated.
' WAR GOALS MET'
In 2015, Russia made its most considerable territorial. gains considering that the early days of the war and it now controls nearly. a fifth of Ukraine.
Putin thinks crucial war objectives have actually already been fulfilled,. consisting of control of land that links mainland Russia to. Crimea, and compromising Ukraine's military, stated among the. sources acquainted with thinking in the Kremlin.
The Russian president also recognizes the strain the war is. putting on the economy, the source said, citing actually big. problems such as the effect of the high interest rate on. non-military businesses and market. Russia has treked defence spending to a post-Soviet high of 6.3%. of GDP this year, accounting for a 3rd of budget expenditure. The spending has actually been inflationary. Along with wartime labour. shortages, it has actually driven incomes higher.
On top of that, the government has actually looked for higher tax. revenues to reduce the financial deficit.
Vyugin, the former deputy guv, said continual high. rates would put pressure on the balance sheets of organizations and. banks. Russian coal and steel manufacturer Mechel, owned by. entrepreneur Igor Zyuzin and his household, on Tuesday said it had. restructured its debt, under pressure from low coal prices and. high interest rates.
PUTIN ISSUE
Putin's aggravation appeared at a Kremlin conference with. magnate the evening of Dec. 16, where he scolded top. financial officials, according to two of the sources, who have. understanding of conversations about the economy in the Kremlin and. government.
One of the sources, who was briefed after the conference, was. informed Putin was visibly displeased after hearing private. financial investment was being cut because of the cost of credit.
The Kremlin released Putin's initial remarks praising. company however did not determine any of business individuals. at the mainly closed-door meeting. Reuters verified with one. source that Reserve bank Governor Elvira Nabiullina was not. present.
On Wednesday, Putin stated in televised remarks to ministers. that he had actually just recently gone over with business leaders the dangers. of a decrease in credit activity for long-lasting growth, in an. apparent referral to the December conference.
A few of Russia's most powerful business people, including. Rosneft CEO Igor Sechin, Rostec CEO Sergei Chemezov, aluminium. magnate Oleg Deripaska and Alexei Mordashov, the largest. investor in steel-maker Severstal, have actually openly criticised. the high rates of interest.
Nabiullina has actually dealt with pressure not to raise rates even more. from 2 of Russia's most effective bankers - her former boss,. Sberbank CEO German Gref, and VTB CEO Andrei Kostin - who feared. that Russia was heading towards stagflation, one source with. understanding of discussions about the economy stated.
In his Dec. 19 comments, Putin required a well balanced rate. choice. The next day, at its last financial policy meeting of. the year, the reserve bank held the rate at 21% in spite of market. expectations that it would hike by 200 basis points. In a speech after the decision, Nabiullina rejected caving in to. pressure. She said criticism of central bank policy increased. when rates were high.
Nabiullina, Gref and Kostin did not instantly respond to. requests for remark for this story.
NABIULLINA
Nabiullina, a former financial aide to Putin who likewise served. as his economy minister, is one of Russia's most effective females:. she has functioned as central bank governor because June 2013 and. three of the sources stated that Putin trusts her.
Simply a couple of weeks after sending out soldiers into Ukraine in 2022,. Putin proposed Nabiullina take a third term as reserve bank. chief. Her term ends in 2027.
Her fans say critics miss the underlying reason for the. inflation - the huge spending on the war - and say that without. her, financial stability would have be threatened.
Some lawmakers have actually required her to be replaced, an. not likely outcome, according to 2 of the sources.
No one in such a circumstance will alter the guv of the. reserve bank, stated one of the sources, who is acquainted with. conversations about the economy. Nabiullina's authority is. indisputable, the president trusts her.
(source: Reuters)