Gazprom news – Atlanti Gaz Sun, 25 Sep 2022 15:50:31 +0000 en-US hourly 1 Gazprom news – Atlanti Gaz 32 32 Poland, Ireland and the Baltics call for EU sanctions against Gazprombank and Russian-made diamonds Fri, 23 Sep 2022 14:52:20 +0000

Gazprombank, the entity that has been instrumental in gas payments between Russia and the European Union, is set to be kicked out of the SWIFT system in the next round of EU sanctions, according to a joint Polish proposal , Ireland and the three Baltic States.

In a document obtained by Euronews, the five member states present a series of measures in response to Vladimir Putin’s plans bring up to 300,000 reservists into the Russian army and organize referendums in the occupied territories of eastern and southern Ukraine.

The votes, seen by pundits as a possible prelude to outright annexation, were harshly condemned by Western countries as a “sham”.

The mobilization decree and referendums are fueling calls for a new round of EU sanctions against Russia.

“I think this again calls for sanctions on our part,” said European Commission President Ursula von der Leyen. said this week.

Since the Kremlin launched the invasion of Ukraine, the bloc has imposed six rounds of sanctions, along with complementary measures to refine their effectiveness and expand their reach.

The Commission said the next package will focus on civilian technology, without providing further details.

In their joint document, Poland, Ireland, Estonia, Latvia and Lithuania suggest the path the bloc should choose to put pressure on Russia.

The five countries want Gazprombank to be permanently kicked out of SWIFT, a highly secure system that enables financial transactions. The Moscow-based bank acts as an intermediary between EU customers and Gazprom, the Russian gas monopoly, and enables the conversion of euros into rubles.

Given that several Central and Eastern European countries remain heavily dependent on the gas pipeline from Russia, Gazprombank has so far been spared from SWIFT’s blacklist, a notable omission that Ukrainian officials have repeatedly criticized.

The document also proposes a ban on EU companies providing any type of insurance service to the Russian government, agencies and businesses. The measure provides for an exemption if the insured risk is located on EU territory or if it concerns diplomatic missions.

When it comes to technology, the five countries offer a long list of products and services whose trade should either be banned or severely restricted, such as the export of smartphones, cameras, projectors, lasers, radio devices, lenses and prisms manufactured in the EU, as well as computer software, hardware maintenance, web hosting services and cybersecurity systems.

The group is also proposing an EU-wide ban on the use of technology developed by Kaspersky Lab, a Russian multinational known for its world-renowned antivirus.

The ban on diamonds, back on the table

Beyond technology, Poland, Ireland, Estonia, Latvia and Lithuania are uniting to ban the import of diamonds originating in or processed in Russia.

The EU has already halted the export of its diamonds to Russia in an attempt to harm the country’s wealthy elite, but Russia is still allowed to send diamonds to the bloc market.

According to international trade centerRussian diamond exports were worth $4.5 billion in 2021.

Their first destination is Belgiumwhose Antwerp diamond center dominates the international market for the cutting and polishing of precious materials.

In recent months, the Belgian government has come under scrutiny over its perceived opposition to a further restriction on the diamond trade with Russia.

“The diamond trade in Antwerp has adapted over the months of this conflict and choices have been made,” Belgian Prime Minister Alexander De Croo said. said last weekspeaking in the Flemish city.

“If you look at the situation today and the volume of trade with Russia compared to before the war, we are in a new world and these are deliberate choices that were made in Antwerp.”

De Croo noted that “sanctions should focus more on the aggressor rather than on ourselves.”

In another section of the joint document, the five countries propose to ban the sale of EU-based real estate to any Russian national, resident or company – unless they have the right of permanent residence.

Poland, Ireland, Estonia, Latvia and Lithuania also suggest that the EU broaden its definition of the energy sector to impose restrictions on trade in nuclear technology.

EU sanctions must be unanimously approved by all 27 member states.

“We support the strongest possible sanctions, but we are also aware that strength lies in solidarity and unanimity. We will therefore work in this direction,” said a diplomat from one of the five signatories.

“We hope to adopt the new package next week.”

New acting head of Ukrainian gas network operator promises uninterrupted operations Fri, 23 Sep 2022 11:17:00 +0000 Strong points

The priority is to ensure “stable” operation of the gas system: Stanczak

Former general manager Sergiy Makogon replaced on September 16

Stanczak takes office at ‘difficult time’ ahead of heating season

The new interim head of Ukrainian public gas network operator GTSOU pledged to ensure the uninterrupted transmission of the system, but acknowledged that he was taking office during a “difficult time”.

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GTSOU said at the end of September 22 that Pawel Stanczak had been appointed as interim general manager following the dismissal of Sergiy Makogon on September 16.

GTSOU is responsible for gas transit through Ukraine, as well as inland transportation, and has faced operational challenges since the invasion of Russia in February.

“It’s a big responsibility for me to support the company at such a difficult time,” Stanczak said.

“I consider it a priority to ensure the stable operation of the gas transport system. The main task of our team is to prepare for the heating season and ensure uninterrupted transport of gas to consumers”, a- he declared.

GTSOU must also continue to work to restore infrastructure damaged as a result of hostilities, he said.

No explanation was given for the dismissal of Makogon, who had led GTSOU since its creation as an independent operator of the gas network in 2019 after its separation from the national company Naftogaz Ukrayiny.

GTSOU began operations as a TSO in early 2020 following the signing of a new five-year gas transit agreement with Russia’s Gazprom.

transit gas

GTSOU continues to move Russian gas to Europe despite the ongoing war in Ukraine, although volumes have fallen below shipment or payment levels.

In June, Russian gas flows via Ukraine totaled only 1.25 bcm, according to GTSOU, an average of around 41 million m3/d.

According to the five-year transit agreement concluded at the end of 2019, Gazprom must pay for 40 bcm of gas transit via Ukraine in 2022, an average of 110 million m3/d, whether it transports that much gas or not.

Overall, Gazprom only shipped 12.27 billion m3 of gas to Europe via Ukraine in January-June, GTSOU said.

Lower Russian flows to Europe have helped keep gas prices high until 2022.

Platts, part of S&P Global Commodity Insights, priced the Dutch TTF price at an all-time high of 319.98 euros/MWh on August 26. It was last assessed on September 22 at 188 euros/MWh, still at 160%. higher year after year.

Related Interactive: Russian gas market share in Europe declines as LNG and Norway grow

Russian ruble, stocks at their lowest after the fall in the mobilization Wed, 21 Sep 2022 14:19:47 +0000

Putin said he had signed a decree on partial mobilization, dramatically stepping up what Russia calls its “special military operation” in Ukraine, and warned that Moscow would respond with the might of all its vast arsenal if the West continued. what he called his “nuclear blackmail”. “.

At 0859 GMT, the ruble was 0.2% stronger at 60.50 to the dollar, after falling as low as 62.7975, its weakest point since July 7.

It reversed early losses to trade up 1.2% at 59.87 per euro and 1.2% against the yuan at 8.546.

The ruble has been the world’s best-performing currency this year, buoyed by emergency capital controls put in place by the central bank in a bid to stop a sell-off.

Putin’s move also wreaked havoc on global markets, with investors flocking to safe-haven assets and the pound hitting a new 37-year low against the dollar.


Russian stock indices fell, extending a decline that began on Tuesday as rumors of a possible mobilization spread, with energy giants Rosneft and Gazprom at one point losing around 12% each, before falling set at around 4.7% and 2.6% lower respectively.

The ruble-based MOEX benchmark hit its lowest point since Feb. 24, the day Russia sent tens of thousands of troops to Ukraine, before cutting some losses.

Analysts at Tinkoff Investments said it was the biggest drop in the MOEX since Feb. 24, when the index lost more than 30% in one day.

The MOEX index fell 2.4% to 2,162.4 points, after hitting a low of 2,002.73 points. The dollar-denominated RTS index fell 2.6 percent to 1,124.5 points, after earlier hitting its lowest since April 27.

(Reporting by Alexander Marrow Editing by Mark Heinrich and Mark Potter)

By Alexandre Moelle

Does China need more Russian gas via the Power-of-Siberia 2 pipeline? Mon, 19 Sep 2022 13:36:52 +0000

Russian President Vladimir Putin held a meeting with his Chinese and Mongolian counterparts on Thursday, during which they discussed a major new infrastructure project, Power-of-Siberia 2, to deliver gas to China via the Mongolia.

Russia proposed the route years ago, but the plan has gained momentum as Moscow looks to Beijing to replace Europe as the main gas customer.

Negotiations will be complex, however, not least because China is not expected to need additional gas supplies until 2030, industry experts said.


The proposed pipeline would transport gas from the huge reserves of the Yamal Peninsula in Western Siberia – Europe’s main source of gas supply – to China, the world’s largest energy consumer and growing consumer of gas.

The idea gained momentum when the first pipes of the currently operational Power of Siberia pipeline were laid in the Eastern Yakutia region of Russia in 2014.

This pipeline stretches 3,000 kilometers (1864.11 miles) through Siberia and into Heilongjiang Province in northeast China.

The new route would cross the eastern half of Mongolia and arrive in the Inner Mongolia region of northern China, not far from major population centers like Beijing, according to a map compiled by Russia’s Gazprom.

Gazprom started a feasibility study on the project in 2020 and aims to start delivering gas by 2030.

The 2,600 km pipeline could transport 50 billion cubic meters (bcm) of natural gas per year, according to Gazprom, slightly less than the Nord Stream 1 pipeline that connects Russia to Germany under the Baltic Sea.


Mongolian President Ukhnaagiin Khurelsukh said on Thursday he supports the construction of oil and gas pipelines from Russia to China via Mongolia, adding that its technical and economic rationale should be studied.

Mongolian Prime Minister Oyun-Erdene Luvsannamsrai told the Financial Times in July that he expected Russia to start building the pipeline within two years.

Luvsannamsrai also said the final route of the line through Mongolia was not yet decided, according to the newspaper.


Russia’s Gazprom is already supplying gas to China through the first Power of Siberia pipeline under a 30-year, $400 billion deal, which was launched in late 2019.

Scheduled to supply 16 billion cubic meters of gas this year, it will supply increasing volumes before reaching its full capacity of 38 billion cubic meters by 2025.

In February, Beijing also agreed to buy gas from Russia’s Far Eastern island of Sakhalin, which will be transported via a new pipeline across the Sea of ​​Japan to Heilongjiang province in northeast China. China, reaching up to 10 billion m3 per year around 2026.

Meanwhile, China is also negotiating a new gas pipeline – Central Asia – China Gas Pipeline D – to supply 25 billion cubic meters of gas per year for 30 years from Turkmenistan via Tajikistan and Kyrgyzstan.

In addition to piped gas, the country also has long-term contracts with Qatar, the United States and global oil majors for 42 million tonnes per year of liquefied natural gas (LNG) to be shipped on tankers, most procurement starting within the next five years.

“Basically, we see little support for Power of Siberia 2 to come to fruition before 2030, as China has already secured enough supplies,” said a Beijing-based industry expert who declined to be named. due to company policy.

“It will be an extremely complex negotiation that could take years, as it involves enormous political, commercial and financial risks,” the expert said.
Source: Reuters (Reporting by Aizhu Chen in Singapore; Writing by Dominique Patton; Editing by Ana Nicolaci da Costa)

Italian media: Orbán’s veto shields Russia’s wealthiest Gazprom CEO from EU sanctions Sat, 17 Sep 2022 15:34:00 +0000

Italy’s largest daily, Corriere della Sera, writes that the European Union cannot sanction several influential Russian oligarchs because of the Hungarian Prime Minister’s veto.

According g7.huthe daily mentions three names in their article:

  • Alexei Miller: the CEO of Gazprom, who blackmails Europe with gas, Corriere della Sera characterizes him;
  • Vladimir Potanin: the CEO of Norilsk Nickel, a nickel and palladium mining and smelting company, who is also the richest Russian with an estimated fortune of around 26 billion USD;
  • Andrei Bokarev is the president of the Transmashholding, a railway company. He had a joint venture in Hungary with Hungarian Defense Minister Kristóf Szalay-Bobrovniczky.

Of course, all three are close allies of President Vladimir Putin and have been sanctioned by the US and UK.

However, the European Union cannot sanction them, so they can travel freely within the EU. Even if, for example, Miller’s Gazprom threatened in a video to turn off the gas taps to freeze the West. HERE you can watch their video. To make matters worse, the Kremlin openly said in September that it was reducing the amount of gas delivered to Europe due to EU sanctions.

The Italian daily did not share details of Orbán’s veto but referred to unnamed sources working in Brussels.

However, it would not be the first time that Hungary has vetoed an EU sanction against someone. For example, Hungary removed pro-war Patriarch Kirill of Moscow from Hungary’s sanctions list, reported. The Hungarian media questioned Orbán’s office about the Italian newspaper’s claims but received no response.

Read also True Friends: Orbán awarded the Order of Merit of the Republic of Serbia


]]> How gas rationing at Germany’s BASF plant could plunge Europe into crisis | Gas Thu, 15 Sep 2022 19:48:00 +0000

Eeverything is connected at the Ludwigshafen site of the German chemical company BASF, a 10 km² industrial complex so large that the company operates its own bus network to take employees from its doors to their place of work.

By-products from the manufacture of ammonia, for example, are transported through a 1,771-mile (2,850 km) network of pipes from one end of the site to the other, where they are recycled to produce fertilizers. , disinfectants, diesel exhaust fluid or carbon dioxide for soft drinks. .

the said verbose The (composite) principle was the key to BASF’s rise in 157 years from “Baden Aniline and Soda Factory” to the largest chemical manufacturer in the world. Today, when Vladimir Putin has severely restricted energy exports to Europe, this ingenious interconnectivity could be his downfall.

The site in southwestern Germany depends on gas as a raw material and as a source of energy, consuming roughly as much each year as the whole of Switzerland, and BASF has played an active role in ensuring that much of this gas is imported cheaply from Russia.

If the German state were forced to ration gas for industrial use this winter, BASF says it can reduce its consumption to some extent, by limiting individual factories or replacing gas with fuel oil at certain stages of production. . It has already reduced its ammonia production locally, instead of shipping the chemical from overseas.

However, since Ludwigshafen’s 125 production plants constitute an interconnected value chain, there is a point where a drop in gas supply would lead to a site-wide shutdown.

“Once we can meaningfully and permanently receive less than 50% of our maximum requirement, we will have to shut down the entire site,” said Daniela Recchenberger, a company spokeswoman. “This is something that has never happened in BASF’s history, and something that no one here would want to see happen. But we would have little choice.

With German gas storage 87% full, there is growing optimism that rationing can be avoided this winter. But even then, high gas prices could force companies such as BASF to halt production. With large parts of verbose A site that has operated around the clock since the 1960s, BASF says it is unclear whether production could simply be restarted afterwards or whether the drop in pressure would cause some machines to break down.

The consequences of a shutdown in Ludwigshafen would be far-reaching, not just in Europe’s biggest economy, but across the continent. Buyers still associate BASF’s initials with audio and video cassettes, but it sold off that business arm in the mid-1990s and today its sales are mostly business-to-business; its products more invisible but also more essential.

The Ludwigshafen Acetylene Plant. About 20 factories at the site use the chemical as a building block for many everyday products, including plastics and solvents. Photography: Andreas Pohlmann/BASF

Chemicals produced by BASF are used to make everything from toothpaste to vitamins, building insulation to diapers. It is one of the world’s largest manufacturers of ibuprofen for painkillers and the automotive industry accounts for 80% of its sales, which means that the spraying of pipelines in Ludwigshafen would have a direct impact on automotive manufacturing regions such as Emilia-Romagna, Catalonia or Hauts-de-France.

One of the few end products still produced in Ludwigshafen is AdBlue, a liquid used to reduce air pollution from diesel engines. This is a legal requirement for HGVs, so a shortage could cause trucks across Europe to stop.

Under German law, households would be excluded from gas rationing along with other “protected” customers such as nursing homes or hospitals. The weight of the reductions is expected to be carried out by industry, responsible for about a third of the country’s demand.

The federal grid regulator has forced large industrial consumers to submit their needs to a centralized database set to go live this fall to assess where shutdowns would have the most devastating ripple effects. The chemical industry should be in the front line for exemptions.

The question is how fair is it for the government to help BASF out of a dilemma in which it played a part and continues to profit?

BASF's Ludwigshafen site at night
One of the end products produced in Ludwigshafen is AdBlue, a liquid used to reduce air pollution from diesel engines. A shortage could cripple trucks across Europe. Photography: Andreas Pohlmann/BASF

The chemicals company’s ties to Russia’s state energy company Gazprom date back to just after German reunification in 1990, when it tried to use newly opened gas routes from the east to break the monopoly of Germany’s own trader, Ruhrgas. . Through its subsidiary Wintershall, it co-financed the construction of Nord Stream 1, the gas pipeline with which the Kremlin tried this year to ransom the European Union, and Nord Stream 2, which was stopped just before the invasion of the EU. Ukraine in February.

The collaboration flourished despite mounting evidence of Moscow’s aggression: in 2015, a year after Russia’s annexation of Crimea, Wintershall handed over Western Europe’s largest gas storage tank in Rehden to Gazprom in exchange for shares in gas fields in Western Siberia.

The swap was “politically desired and politically backed” at the time, says BASF, and strategic gas reserves were not considered a priority by then-Chancellor Angela Merkel.

But the role BASF has played in the current energy crisis may not be so easily overlooked in the long run. Its chief executive, Martin Brudermüller, who in April strongly opposed a Russian gas embargo, came across as “an arsonist who sets the house on fire first and then claims that he alone is capable of turn off,” wrote the editor of the Taz newspaper in a recent comment.

The chemical company’s lucrative link with Gazprom continues to this day despite Russia’s war in Ukraine, which prompted the EU to impose sanctions on several figures linked to Gazprom, but not the company itself . BASF ended its business operations in Russia and Belarus in July, but implemented exceptions to support food production and retains its stake in Wintershall, now known as Wintershall Dea.

The chemical company made strong profits in the first half of the year, mainly due to the fact that this subsidiary benefited from high oil and gas prices.

BASF owns two-thirds of Wintershall Dea, with the rest held by Russian-Israeli oligarch Mikhail Fridman, who faces European and British sanctions. The energy company’s adjusted net profit in the first half of this year was €1.3bn (£1.1bn), as its pre-tax profit in Russia increased fivefold from the same period in 2021.

A steam cracker at BASF's Ludwigshafen site, the largest individual plant in the facility.
A steam cracker at BASF’s Ludwigshafen site, the largest individual plant in the facility. Photography: Detlef W Schmalow/BASF

BASF says these profits come from gas produced by Gazprom sold on the Russian market, rather than to the EU.

The company has tried to make up for lost time in recent months, starting to build a solar farm in Brandenburg and a large wind farm off the Dutch coast to ensure that renewables meet more of its energy needs. But keeping Ludwigshafen’s value chain intact without gas can be an insurmountable challenge.

The essential centerpiece of the site are its two steam crackers, in which giant gas furnaces “break” crude oil derivatives into smaller components by rapidly heating them to 84°C.

A test site using electricity rather than gas to crack hydrocarbons was unveiled in early September at BASF’s premises on the Rhine but will not be fixed for next winter. “It’s not something you can do in two months,” says Nonnast. “It might be possible in five years, but only because we started thinking about it five years ago.”

Moldova expects support from Romania as Gazprom could cut gas supply after October 1 Wed, 14 Sep 2022 05:54:16 +0000

The Republic of Moldova could receive natural gas from Romania if Russian supplier Gazprom stops gas deliveries to Chisinau after October 1, Moldovan President Maia Sandu told TV8 channel. She also pointed out that Transnistria could receive gas from Romania, but only if it paid for it, Radio Chisinau reported, according to

The Moldovan gas company Moldovagaz signed a long-term contract with Gazprom last autumn, but Moldova failed to comply with a memorandum attached to it – namely that it did not carry out an independent audit on the historical debts between the two parties.

Transnistria has received Russian gas for free over the decades and owes some $7-8 billion in unpaid bills. However, the breakaway region is critical for Moldova since it provides about 70% of electricity at low prices (possible due to Russian gas received for free).

On Tuesday, Romanian Prime Minister Nicolae Ciucă received his counterpart from the Republic of Moldova, Natalia Gavriliţa, at the Victoria Palace. On this occasion, the stage of implementation of concrete projects intended to support the Republic of Moldova was analysed, in areas such as energy and gas supply.

(Photo credit: Sasa Maricic/

“Precarious” Nuclear Power Plant; Naftogaz vs. Gazprom Fri, 09 Sep 2022 21:49:36 +0000

(Bloomberg) – The UN nuclear agency has stepped up its warning about Ukraine’s Zaporizhizhia nuclear power plant, saying the facility could soon lose power and shut down its last operating reactor after sustained shelling in the area . “It is an unsustainable situation and is becoming more and more precarious,” the agency chief said.

Bloomberg’s Most Read

Ukrainian President Volodymyr Zelenskiy said the national army had taken over more than a thousand square kilometers (386 square miles) of territory since September 1, including dozens of settlements.

The World Bank and the European Commission have estimated that rebuilding Ukraine will cost at least $349 billion, based on damage inflicted in early June, and that figure is expected to rise as the war continues.

(See RSAN on the Bloomberg Terminal for the Russian sanctions dashboard.)

Key developments

  • US Treasury issues guidance on Russian oil price cap plan

  • US sees economic reasons for Russia to comply with oil price cap

  • Ukrainian military breakthrough in the north threatens Russian stranglehold

  • Russian-occupied reactor poses heightened security risk, warns UN

  • Russia’s current account surplus hits record high as growth slows

On the ground

Russia continued to shell the city of Kharkiv on Thursday night, local authorities said. Ukrainian forces are conducting a successful counter-offensive towards Kharkiv, advancing nearly 50 kilometers in three days, the Ukrainian General Staff reported. Ukrainian forces will likely capture Kupyansk within the next 72 hours, severely but not completely degrading Russian land lines of communication with Izyum, the Institute for the Study of Warfare said. Ukraine is launching military drills along its border with Belarus in response to similar war games in the neighboring country, Ukraine’s Interior Ministry said on its website.

(every hour CET)

US issues guidelines on Russian oil price cap plan (00:50)

The US Treasury released rough compliance guidelines for its proposed Russian oil price cap on Friday, shortly after officials said Russia would have an economic incentive to participate.

The guidelines, issued by the Treasury’s Office of Foreign Assets Control, instruct private companies to enforce the cap by seeking certification that Russian oil is being sold at or below a price set by the United States with d other members of the Group of Seven. The guidance is aimed at insurance companies and financial firms that facilitate the international oil trade.

The cap is expected to be in place by December 5 for crude oil and February 5 for petroleum products, in line with the implementation of the European Union’s ban on services associated with oil transported by sea and to refined products.

Ukraine Files Arbitration Case Against Gazprom (4:56 p.m.)

Ukraine’s state-owned Naftogaz filed an arbitration claim against Russia’s Gazprom PJSC for failing to pay for natural gas transit on time and in full, according to an emailed statement.

Naftogaz asked Gazprom to pay for the transit of gas through Ukrainian territory, because its contract includes a pumping or payment clause, which means that the Russian company must pay the minimum gas transit fee even if it does not does not displace the contractual volumes. Russia cut off its gas transit through Ukraine this year.

A hearing will be held in Zurich, according to the statement. Gazprom did not immediately respond to a request for comment sent by Bloomberg News.

The situation of nuclear power plants is “increasingly precarious”, according to the UN agency (4:30 p.m.)

Operators of a Russian-occupied nuclear reactor in southeastern Ukraine may soon have to tap into their last line of defense to prevent a nuclear accident, according to the most dire warning ever issued by nuclear watchdogs. International Atomic Energy Agency.

Continued attacks around the Zaporizhzhia nuclear power plant have cut power cables and rendered layers of back-up systems ineffective. Today, the electrical systems of the nearby town of Enerhodar were destroyed by bombardment, IAEA chief Rafael Mariano Grossi said in a lengthy statement.

The IAEA described the situation as “increasingly precarious”.

Poland could buy Ukrainian electricity (3:22 ​​p.m.)

Poland may soon buy an undetermined amount of electricity from the Khmelnytskyi nuclear power plant in western Ukraine, Prime Minister Mateusz Morawiecki said at a joint press conference in Kyiv with Ukrainian President Volodymyr Zelenskiy.

Imports from Ukraine could help the European Union’s largest eastern economy weather this winter, as the coal-dependent country faces tight supplies following the embargo on Russia. Ukraine synchronized its network with the EU earlier this year.

Northern Kyiv Breakthrough Threatens Russian Grip (2:00 p.m.)

A Ukrainian counter-offensive appears to be progressing in the north, but less so in the southern region of Kherson which has attracted greater Russian attention and reinforcements.

On Thursday, Ukrainian officials and Russian military bloggers described a counteroffensive in the north that surprised with its speed, the first time since the start of the war that Ukrainian forces were able to push Russian defenses to a level more than tactical.

Read more: Ukrainian military breakthrough in the north threatens Russian grip

Ukraine inflation tops 23% as prices rise for seventh month (1:55 p.m.)

Ukraine’s inflation rate accelerated for a seventh month as the country grappled with the Russian invasion, which devastated the economy and hampered logistics.

Consumer prices rose 23.8% in August from a year earlier, driven by staples such as eggs and sugar, data showed Friday.

Ukraine may need $349 billion to recover from war damage (1:30 p.m.)

The World Bank and the European Commission estimated that rebuilding Ukraine would cost at least $349 billion, according to an assessment that covered damage inflicted between February 24 and June 1. on, said the World Bank.

The first stage will require $17 billion, of which $3.4 billion is already needed this year, Prime Minister Denys Shmyhal said. The Ukrainian government needs to balance recovery plans and immediate needs, and the World Bank’s assessment will help the cabinet set priorities.

Ukraine will need $105 billion over three years to restore education and health systems and heating infrastructure before the winter season and to remove ruins and explosives, the World Bank has estimated.

Ukraine begins drills to mirror Belarus war games (12:02 p.m.)

Ukraine has started military exercises along its border with Belarus in reaction to similar war games on the territory of the neighboring country.

The National Guard of Ukraine, border troops and police from the northern regions of the country are training to defend the border, the Interior Ministry said on its website.

Belarusian troops have started massive exercises in the border areas of Ukraine and Poland near Brest, simulating the “liberation” of its captured territory from a hypothetical enemy. The drills, scheduled for September 8-14, involve paratroopers, tanks and rocket artillery.

Bloomberg Businessweek’s Most Read

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IBA too slow with reforms, too dependent on Russian Gazprom, says CIO Thu, 08 Sep 2022 19:09:00 +0000

BERLIN: The International Boxing Association’s (IBA) financial dependence on Russian energy company Gazprom and the slow pace of reform are a serious concern for the International Olympic Committee as the sport struggles to retain its Olympic spot .

The IOC stripped the IBA of qualifying tournaments and competitions at the 2024 Paris Olympics after also stripping the boxing body in 2019 of its participation in the Tokyo Olympics last year due to governance issues. , financing, arbitration and ethics.

The IBA had to overhaul the refereeing after the 2016 Rio de Janeiro Olympics and a fight manipulation system that existed there. Boxing was not included in the initial program of the Los Angeles Games in 2028.

“Financially, according to the information we have in the report we received last night, the IBA does not yet have any new sources of income,” IOC sporting director Kit McConnell said on Thursday during of a press conference.

“Reliance on the Russian company Gazprom continues. It has only been exacerbated, aggravated by the fact that a number of bank accounts (used by the IBA) are subject to sanctions in the current environment.

“There has been no mitigation of this reliance on one organization,” he said.

The Russian energy company is the biggest sponsor of the IBA, formerly known as AIBA.

European governments have accused Moscow of using the energy as blackmail, in retaliation for Western support for Ukraine after the Russian invasion. Russian gas giant Gazprom GAZP.MM blamed the cuts on Western sanctions and technical issues.

IBA President Umar Kremlev, a Russian businessman, was re-elected unopposed following the disqualification of his only opponent, Boris van der Vorst, two days before the vote in Istanbul on May 14.

Van der Vorst, however, has since been upheld by the Court of Arbitration for Sport, adding to the governance turmoil within the body.

The IOC said that apart from ongoing governance issues, more and more powers were being transferred to the office of the IBA President, now located in Moscow, instead of strengthening the sport’s headquarters in Lausanne.

McConnell said the IBA headquarters had been “stripped” of senior officials and advisers.

He warned the body that he risked missing out on the Games altogether if there was no rapid progress on the reform plan agreed last year.

“Boxing is not currently included in the sports program for the Olympic Games Los Angeles 2028,” the IOC said in a letter sent to the IBA President on Thursday.

“Given the lack of real progress, the IOC Executive Board is unable to reverse this decision and will continue to monitor the governance of IBA with serious concern.”

Gazprom and CNPC agree to use ruble and yuan for gas payment – Gazprom Wed, 07 Sep 2022 09:13:00 +0000

PetroChina’s logo is seen at a gas station in Beijing, China March 21, 2016. REUTERS/Kim Kyung-Hoon/File Photo GLOBAL BUSINESS WEEK AHEAD

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SINGAPORE, Sept 7 (Reuters) – State-owned energy giants Gazprom (GAZP.MM) and China National Petroleum Corporation (CNPC) signed several agreements on Tuesday, including on the use of the Russian ruble and Chinese yuan to pay supply of Russian natural gas from China, says Gazprom.

The deals came on top of a February deal between them to boost gas supplies from 2023 via the eastern route of a China-Russia gas pipeline, cementing an energy alliance at a time of strained relations between Russia and the West on Ukraine and other issues.

Gazprom CEO Alexei Miller said in a statement on its website that allowing payments in Russian rubles and Chinese yuan was “mutually beneficial” for Gazprom and China’s state-owned CNPC.

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Russian President Vladimir Putin said on Wednesday that China would pay Gazprom for its gas on the basis of a 50-50 split between the ruble and the yuan. Read more

Gazprom, which has a monopoly on Russian gas exports via pipeline, said the linear part of the pipeline connecting the Kovyktinskoye field in the Irkutsk region to the Chayandinskoye field in Yakutia was almost complete. Gas from the Kovykta field is expected to be delivered to Power of Siberia before the end of 2022, the company said.

“Compliance with Gazprom’s contractual obligations to increase the volume of gas supplies from China in 2023 will be ensured,” the company said.

In February, China and Russia signed a 30-year contract for the supply of 10 Gm3 of gas per year. Read more

Gazprom said the main technical parameters for deliveries have been fixed and it has started designing the pipeline.

Russia already sends gas to China through its Power of Siberia pipeline, which began pumping supplies in 2019, and by shipping liquefied natural gas (LNG). It exported 16.5 billion cubic meters (bcm) of gas to China in 2021.

According to previously drawn up plans, Russia will increase annual gas transportation through the pipeline to China to 38 billion m3 by 2025 from 5 billion m3 in the first year.

CNPC, the parent company of PetroChina (601857.SS), said on Wednesday it had signed an agreement with Gazprom over the Power of Siberia gas pipeline, but did not provide further details.

China’s foreign and trade ministries were not immediately available for comment.

Gazprom and CNPC executives met via video conference held during the 2022 Eastern Economic Forum.

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Reporting by Muyu Xu, Dominique Patton and Reuters; Editing by Jacqueline Wong and Tom Hogue

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