Logistics & Geopolitics

World Container Index Down 0,1 % Week 20, But Remains 24,7 % Higher than a Year Ago.

The average composite index of the World Container Index , assessed by analyst firm Drewry for year-to-date, is $8,712 per 40ft container, which is $5,360 higher than the five-year average of $3,352 per 40ft container. Drewry expects spot rates to remain stable in the coming weeks. (19/05/2022). Source: hellenicshippingnews.com

US S&P 500 stock index indicates the direction of the US economy. (Click for bigger image)(20/05/2022).

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Renault is selling its business in Russia, including a controlling stake in Lada, becoming the latest carmaker to exit the country over its assault on Ukraine.

The French company said it had agreed to sell Renault Russia to the city of Moscow and its stake of nearly 68% in Lada parent Avtovaz to a state-owned industry research center. Renault is keeping open the option of returning to Russia — the deal gives the company various windows to buy back its interest in Avtovaz over the next six years, the company added. Renault have 45,000 employees in Russia. Avtovaz's Lada brand represented nearly 21% of the Russian market in 2021. Lada — an icon of Soviet-era self-reliance — could, in theory, stand to benefit from the absence of foreign competition. But it is heavily dependent on imported parts. (16/05/2022). Source : Renault Group Press Reliase 16. May 2022

The G7 group might impose tariffs on Russian oil as an alternative to an embargo, says representatives of the US Treasury Department.

At a meeting of G7 finance ministers, they will propose that the EU introduce tariffs on Russian oil as a faster alternative to a direct oil embargo. The tariffs will be designed to keep Russian oil on the market, but limit the amount of revenue that can come to Moscow from exports. A direct EU embargo could significantly raise oil prices. This, in turn, may offset the impact of the embargo on Russian revenues, even if exports are reduced. In addition, funds from such duties could be channeled to Ukraine's Reconstruction Fund, forcing Russia to pay for the destruction it has brought to Ukraine. (18/05/2022). Source: ubn.news (Ukraine Business News).
UPDATE :
Moscow Says Tariffs to Trigger Higher Prices. Russia’s top authorities claimed that the US proposal to slap tariffs on Russian oil will result in buyers having to pay more as the cost of the tariff would be priced into the final price. (20/05/2022).

An internal Communist Party directive bars senior officials from owning property abroad or stakes in overseas entities, whether directly or through spouses and children.

China’s Communist Party (CCP) will block promotions for senior cadres whose spouses or children hold significant assets abroad, people familiar with the matter said, as Beijing seeks to insulate its top officials from the types of sanctions now being directed at Russia. The ban, outlined in an internal notice by the party’s powerful Central Organization Department, could play a role in Chinese leader Xi Jinping’s efforts to increase his influence at a twice-a-decade leadership shuffle scheduled for later this year. (20/05/2022). Source: www.wsj

Pope says NATO may have caused Russia’s invasion of Ukraine. Francis says NATO was ‘barking’ at Russia’s door.

Pope Francis said that NATO “barking” at Russia’s door may have led to Vladimir Putin’s invasion of Ukraine — and said he has offered to meet the Russian president in Moscow. In an interview with the Italian newspaper Corriere della Sera, Francis reflected on Russia’s lethal aggression toward its neighbor and said while he might not go as far as saying NATO’s presence in nearby countries “provoked” Moscow, it “perhaps facilitated” the invasion. Since the invasion of Ukraine, Francis has repeatedly criticized the invasion, while avoiding naming Putin explicitly, in line with the Vatican’s foreign policy of keeping the door open for possible dialogue. (03/05/2022). Source : www.corriere.it

The number of businesses closed in Ukraine decreased from 32% to 17%.

As of the end of April, the number of enterprises that had entirely ceased operations fell to 17% from 32% at the beginning of the full-scale war, as stated in the monthly macroeconomic and monetary review of the National Bank of Ukraine (NBU). At the same time, small and medium-sized businesses are recovering more slowly than larger ones. According to the NBU, most enterprises operating in agriculture, transport and processing resumed operations at the end of April. The most challenging situation is observed in the construction and mining industry, where trade congestion remains well below the pre-war level. (09/05/2022). Source : ubn.news (Ukraine Business News).

Germany currently receives a quarter less gas transported through Ukraine after the Ukrainian authorities closed the pipeline because the key compressor station was in Russia’s hands.

The German government has rejected speculation that it may activate the Nord Stream 2 gas pipeline from Russia to Germany to compensate for gas flow reduction through Ukraine, stated the press secretary of the German Ministry of Energy, Annika Eingorn. “Nord Stream 2 died after Russia attacked Ukraine, and no one is thinking of switching back to it,” she said. She also noted that most of Russia’s gas comes to Germany through the Nord Stream 1 gas pipeline. However, Germany has pledged to stop importing Russian gas no later than 2024. (12/05/2022). Source : https://ubn.news/ (Ukraine Business News).

One of Germany's biggest energy firms Uniper, ready to meet Russian pay demand

Under the Russian decree, European importers must pay euros or dollars into an account at a Russian Bank. Uniper will pay into Gazprombank, the Swiss-based trading arm of Gazprom, and then convert this into roubles in a second account in Russia. The European Commission said last week that if buyers of Russian gas could complete payments in euros and get confirmation of this, before any conversion into roubles took place, that would not breach sanctions. Europe gets about 40% of its natural gas from Russia, but it is much higher for some countries and sudden supply cuts could have a huge economic impact. (28/04/2022). Source : bbc.com

Cargonet opens for freight trains from Narvik in Norway to New Dehli, India !

CargoNet will from May 01 on weekly basis, send northern Norwegian exports to Helsinki in Finland, and from there further out into the world, by train. The port of Narvik is behind the new freight route on the Ofot Line. (The Ofot Line was build in 1902 to transport ironore from Kiruna in Sweden to Narvik).
From Helsinki railways run across the European continent and east into Asia. We hope that the interest will be large enough to expand. We hope to open up a new "local market" for fresh fish as well. Goods to Finland have previously gone on the roads with trailers. (29/04/2022). Source : mtlogistikk.no

India has asked state energy firms to consider buying Russian oil assets from BP and Exxon Mobile Corp. due to sanctions on Russia.

Rosneft
The call on Indian companies to explore buying the stake in Rosneft came after BP CEO Bernard Looney met Indian oil minister Hardeep Singh Puri in March. BP has announced it is abandoning its 19.75% stake in Rosneft.

Sakhalin 1
India Oil ministry also asked Oil and Natural Gas Corp (OVL) to consider buying a 30% stake held by Exxon Mobile Corp, in the Sakhalin 1 project in Russia's Far East. Exxon is the operator of the project. OVL already holds a 20% stake in the project. Exxon said on March 1 it would exit about $4 billion in assets and discontinue all its Russia operations, including Sakhalin 1. Exxon said on its Russian unit Exxon Neftegas Ltd has declared force majeure for its Sakhalin-1 operations due to sanctions on Russia that have made it increasingly difficult to ship crude to customers.

Vankorneft
OVL also holds 26% stake in Vankorneft, owner of the Venkor field in the West Siberian Basin. Separately, a consortium of Oil India, IOC, and BPRL, the exploration arm of state refiner Bharat Petroleum Corp, holds a 23.9% stake in Vankorneft and a 29.9% stake in Taas-Yuryakh in east Siberia.
India is the world's third biggest oil importer and consumer, India imports about 85% of its 5 million barrels per day (bpd) of oil needs. (29/04/2022). Source: Reuters.com

After Russia Now NATO To Enter Asia-Pacifc To Target China, Stoltenberg says in NATO meeting on March 07.

In Brussels, NATO and its Asia-Pacific allies Australia, Japan, New Zealand, and South-Korea discussed international support for Ukraine. "...After Russia, now NATO is set to enter the Asia-Pacifc with the aim of targeting China. In view of Beijing’s expanding power and coercion, as well as its refusal to criticize Russia’s special military operation in Ukraine, NATO has declared that it will commence intervening in the Asia-Pacific area both practically and politically. And it makes it even more important that we stand together to protect our values..." NATO`s Secretary-General Jens Stoltenberg said this during the session of NATO Ministers of Foreign Affairs on April 7. (11/04/2022).

What paying for gas in rubles means for "unfriendly" foreign buyers. President Putin`s decree signed March 31, set the deadline to switch, for April 1.

Do foreign companies have to buy rubles? Not necessarily. They can transfer the Euro or Dollar to a Russian Bank. (Such as Gazprombank). The Russian Bank will convert them to Ruble and that Ruble will be used for Gas Payment to Gazprom. No Euro or Dollar will reside in any account in a foreign country. So they cannot be confiscated as has been done with Russian Foreign assets. This way it does not violate existing contracts, as buyers will continue to make payments in their currency of choice. New contracts or spot contract Russia can insist payment in ruble. («Petro-Ruble»). Source : President Putin`s decree 31/03/2022.

UPDATE:
UK is the only country to have imposed sanctions on Russia’s Gazprombank and can`t get any Russian gas, says Dmitry Peskov, the press secretary of President Putin.
The new Payment system will start at the end of April. (06/04/2022).

Other Russian exports can follow: Crude oil, coal, metal, rare earth minerals, precious stones, precious gas, timber, fertilizer, cooking oil and grain.

"If you think things are crazy now, just you wait until the imperial crosshairs move to Beijing".

No mercy for anyone who challenges the US world hegemony and petro dollar system. They are going to be destroyed ? (Like Irak, Libya, Iran, Venezuela...).
Source : caitlinjohnstone.com
(31/03/2022).

Editor`s notice :
The controversy surrounding the political status of Taiwan, may be the next world conflict, ultimo year 2022.
"you are either with us, or against us". Former US president George W.Bush.

UPDATE : 02/04/2022 :
US Threatens India "...With Consequences For Propping Up Ruble Trade Undermining Dollar Based Financial System...", said US deputy Daleep Singh in New dehli on March 31. Singh is an American economic advisor who is a Deputy National Security Advisor for International Economics in the Biden administration. He is one of the architects of the sanctions that the US implemented on Russia after Russia invaded Ukraine in 2022. Source : www.opindia.com

Japanese firms have no plans to abandon Russian energy project. Mitsui and Mitsubishi will stick with Sakhalin 2 to keep China away from the gas project.

The Sakhalin-2 project, that is focused on producing and shipping liquified natural gas (LNG), 60% of which is destined for the Japanese market. This reprecent nearly 100% of the Japanese import of LNG. Sakhalin-2 produces 11.5 million tons of LNG annually which is mainly exported to major markets in Asia. The majority stake in the enterprise belongs to Russia’s energy giant Gazprom. Shell, the world’s largest LNG trader, holds 27,5 % Mitsui’s share totals 12,5%, while Mitsubishi Corporation owns 10%. On February 28, UK-based Shell announced plans to pull out its stake in the Sakhalin-2. Source: NIKKEI Asia. (14/03/2022).

The ‘Cowboy Cocktail’: How Wyoming (USA) became one of the world’s top tax havens for oligarchs and criminals among others.

Wyoming, South Dakota, Alaska, Delaware and Nevada were named in October 2021, by the European Parliament as home of “financial and corporate secrecy”. Millionaires and billionaires from around the world abandoned international financial centers, such as traditional tax havens in Europe and the Caribbean, for law firms in Wyoming, allowing the world’s wealthy to move and spend money in extraordinary secrecy, protected by some of the strongest privacy laws in the country and, in some cases, without even the cursory oversight performed by regulators in other states. Source : icij.org (14/03/2022).

UPDATE : US law firm Baker McKenzie, now says it’s leaving Russia.(15/03/2022).

Concerns of “dark ships” evading Russian sanctions. A ship typically goes dark by switching off their Automatic Identification System (AIS).

Ships going dark is the biggest challenge in sanctions compliance, meaning they cannot be detectable by public monitoring systems, despite all ships of 300 tons or greater on international journeys being required to broadcast their location. Iranian, North Korean, Venezuelan, and other sanctioned trades, are often seen with such tactics. For example ship-to-ship transfers between two vessels or transfer of oil from a Russian-flagged tanker carrying crude oil to another tanker flagged outside Russia." Source: Pole Star Maritime Intelligence (16/03/2022).

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