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Gazprom Restarts Gas Deliveries to Ukraine

KIEV, Ukraine—Russian state natural-gas company PAO Gazprom resumed deliveries to Ukraine on Monday, after halting exports in July, reducing the risk of disruption to supplies to the rest of Europe this winter. Deliveries were resumed after Ukraine paid $234 million of a total $500 million prepayment expected for gas in October, Gazprom chief executive Alexei Miller said. Ukrainian Energy Minister Volodymyr Demchyshyn confirmed to Interfax news agency that deliveries had resumed early on Monday. Ukraine and Russia finalized, but didn’t yet sign, a preliminary gas agreement last month, which would bring down the cost of Russian gas for Ukraine to that paid by neighboring European Union countries until March. In return, Ukraine promised to ensure that Russia can ship gas to the EU without interruptions and to pump 2 billion cubic meters of gas into underground storage facilities over the next month. The European Union has worked to bring […]

Posted On : Published By : Tom Whipple
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Shiites in Iraq Hailing Putin for Syria Push

Photo Karim Nihaya, an artist in Baghdad, wrapped a painting of President Vladimir V. Putin of Russia last week. Mr. Putin’s popularity is soaring in Iraq’s Shiite heartland for his military raids in Syria. Credit Sabah Arar/Agence France-Presse — Getty Images NAJAF, Iraq — One of the most popular Facebook posts in Iraq ’s Shiite heartland is a Photoshopped image of President Vladimir V. Putin of Russia dressed in the robe of a southern tribal sheikh. It was the American-led invasion in 2003 that toppled Saddam Hussein and empowered Iraq ’s long-repressed Shiite majority. The United States also took the lead more than a year ago to assemble a coalition to conduct airstrikes in Syria and Iraq against the Sunni militants of the Islamic State. But with the struggle against the Islamic State largely stalemated, it is the naked display of Russian military power in neighboring Syria, as well […]

Posted On : Published By : Tom Whipple
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Ruble Pares Best Weekly Gain This Year as Oil Rally Seen Limited

The ruble weakened for the first time in five days amid speculation that gains in oil, the main driver for the currency’s movements, will be limited. While Brent crude headed for its biggest weekly increase since March 2009, technical studies suggest that its rally will face resistance at $54-$55 per barrel, Denis Davydov, an analyst at Nordea Bank AB in Moscow, said. As oil trades less than a dollar below that level, traders might be unwinding their positions in the ruble, he said in emailed comments. The currency of the world’s largest energy exporter rallied this week as speculation that oil demand is rising and supplies are retreating buoyed crude prices. Oil, which has traded below its 200-day moving average since July 2014, rose closer to that landmark as Federal Reserve minutes indicated policy makers won’t rush to lift interest rates, making commodities priced in the dollar more attractive. […]

Posted On : Published By : Tom Whipple
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Russia running short on reserve funds

Russian coffers facing mid-term shortage because of strains of lower crude oil prices and Western economic sanctions. Photo by DyMax/Shutterstock MOSCOW, Oct. 9 (UPI) — Stumbling under the strain of low crude oil prices, the Russian economy will run out of reserve funds as early as 2017, the deputy finance minister said. Russian Deputy Finance Minister Tatiana Nesterenko said private sector investments are all-but out of the question when access to foreign markets is limited . "Reserve funds are depleting. We believe reserve funds may end at such rates of their spending," she said. "We will use up resources received when oil prices were high by 2017-18." The Russian military intervention in the Syrian civil war on the side of Syrian President Bashar al-Assad put positive pressure on crude oil prices. White House Press Secretary Josh Earnest said last week Russia was responding from a position of weakness brought […]

Posted On : Published By : Tom Whipple
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Ruble Pares Best Weekly Gain This Year as Oil Rally Seen Limited

The ruble weakened for the first time in five days amid speculation that gains in oil, the main driver for the currency’s movements, will be limited. While Brent crude headed for its biggest weekly increase since March 2009, technical studies suggest that its rally will face resistance at $54-$55 per barrel, Denis Davydov, an analyst at Nordea Bank AB in Moscow, said. As oil trades less than a dollar below that level, traders might be unwinding their positions in the ruble, he said in emailed comments. The currency of the world’s largest energy exporter rallied this week as speculation that oil demand is rising and supplies are retreating buoyed crude prices. Oil, which has traded below its 200-day moving average since July 2014, rose closer to that landmark as Federal Reserve minutes indicated policy makers won’t rush to lift interest rates, making commodities priced in the dollar more attractive. […]

Posted On : Published By : Tom Whipple
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Gazprom to Sell Debt in €1 Billion Deal

Gazprom’s headquarters in Moscow. Russian energy giant OAO Gazprom became the latest emerging-market borrower to sell debt to international investors on Thursday, taking advantage of growing expectation that the U.S. Federal Reserve will delay raising interest rates. Gazprom will pay an interest rate of 4.625% on a €1 billion ($1.12 billion), three-year bond, according to a deal notice released today. Gazprom didn’t respond to requests for comment. The latest offering follows several bond deals from emerging-market governments and companies this week as investors backed the idea that the U.S. Federal Reserve might push back raising interest rates following a weaker-than-expected jobs report released Friday. Turkcell Iletisim Hizmetleri AS TKC 1.17 % , Turkey’s biggest mobile-phone operator, sold a 10-year, $500 million bond on Wednesday at an interest rate of 5.75%. Ghana issued a 15-year, $1 billion bond at an interest rate of 10.75% Wednesday. And Poland sold a six-year, […]

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Russia: No political issues with Turkish pipeline

Russian gas monopoly Gazprom chief Alexei Miller says there are no political obstacles to advancing a gas pipeline through Turkey. File photo by Anatoli Zhdanov/UPI MOSCOW, Oct. 8 (UPI) — There are no political affairs interfering with bilateral talks on building a natural gas pipeline through Turkey, Russian energy company Gazprom said. Turkey is the second-largest consumer of Russian natural gas. Gazprom last year surveyed the land route through Turkey for a pipeline dubbed Turkish Stream, a scaled-back version of the South Stream gas pipeline proposed for the region. The Kremlin sent two offers to the Turkish government for consideration on the pipeline project in mid-2015. In August, the government said there was still no word on the project from Ankara. Alexei Miller , chief executive officer at Gazprom, said there was nothing in the way of bilateral agreements on the gas pipeline. "Work to draft the text [of […]

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Iraqis Urge Russia to Strike Islamic State

BAGHDAD—Iraqi Shiite lawmakers and militia leaders are urging Russia to launch airstrikes on Islamic State militants in their country, a sharp reproach to the U.S.-led air campaign targeting the extremist group. Since Moscow began bombing opponents of the regime in Syria last week, the lawmakers and militia leaders have pressed Prime Minister Haider al-Abadi to invite Russia to intervene in Iraq. Mr. Abadi said last week that he would welcome Russian airstrikes in Iraq as long as they were coordinated with the U.S.-led coalition. Iraq’s Shiite politicians, who dominate the government, were largely united in their praise of Russia’s intervention and calls for Russian airstrikes. “We welcome Russian airstrikes in Iraq to help hit Islamic State headquarters, target Islamic State supply lines from Syria and target the oil smuggling lines,” said Moeen al-Kadhimi, a spokesman for the Badr Corps, an Iranian-backed militia and political party that plays a front-line […]

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Russia Military’s Actions in Syria Cause Rift With Turkey

Photo President Recep Tayyip Erdogan of Turkey, right, with Jean-Claude Juncker, the president of the European Commission, in Brussels on Monday. Credit Francois Lenoir/Reuters ISTANBUL — Tensions between Russia and Turkey widened on Tuesday over the Russian bombings of Syrian rebels and multiple violations of Turkish airspace , which have deeply undercut Turkey’s goals in the Syrian civil war. “Our positive relationship with Russia is known,” President Recep Tayyip Erdogan said Tuesday at a news conference during a visit to Brussels. “But if Russia loses a friend like Turkey, with whom it has been cooperating on many issues, it will lose a lot, and it should know that.” Aside from blunt warnings, however, there appears to be little that Mr. Erdogan can do about Russia’s assertive military actions in Syria , which have upended his priorities to oust the Syrian leader, Bashar al-Assad , and establish a buffer zone […]

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Russia, Saudi Energy Ministers Discussed Oil Demand, Production, Shale

Russia and Saudi Arabia agree to continue consultations, exchanging views on demand, production and shale oil, Russian Energy Minister Alexander Novak tells reporters. NIZHNY NOVGOROD, Russia, Oct 6 (Reuters) – Russia and Saudi Arabia discussed the situation on the oil market last week and agreed to continue consultations, exchanging views on demand, production and shale oil, Russian Energy Minister Alexander Novak told reporters on Tuesday. Even though the oil price has halved since last year on oversupply, Russia, the world’s top oil producer, has refused to cooperate with OPEC, where Saudi Arabia is the leading producer. Both OPEC and Russia are instead increasing production in a move to defend market share. Novak did say on Saturday that Russia was ready to meet with OPEC and non-OPEC producers to discuss the market and his comments have supported prices, although analysts have warned that relations may suffer over the two sides’ […]

Posted On : Published By : Tom Whipple