Iran-Saudi détente beginning of new era

Alireza Enayati, who has been confirmed as the new Iranian ambassador to Riyadh, told reporters on Monday that the reconciliation deal between Iran and Saudi Arabia will benefit all countries in the region.

When asked about who would benefit most from the deal, Enayati said, “The benefits of Iran-Saudi rapprochement are not polarized”. 

Both countries showed equal willingness to restore ties, he pointed out. 

He added no country can guarantee its own security if it decides to disregard its neighbors. 

The diplomat also hoped for a new order in the Persian Gulf where regional nations can take control and establish security without receiving assistance from any external power. 

Enayati said Iran and Saudi Arabia first sat down at the negotiating table two years ago in Baghdad, Iraq. Five rounds of talks followed the first one is the Omani capital Muscat with the presence of Iraqi mediators, he stated. 

The two countries were finally able to reach a deal in China, he added. 

Both countries are willing to start a new chapter in their ties and are planning to cooperate in various fields, including economy, military, culture and technology. 

The envoy added his country is also looking to strengthen ties with other Arab states. “Iran is looking to expand ties with other regional countries. It has already made constructive moves in case of Kuwait and the Emirates.” 

When asked about the main destabilizing actor in the region, Enayati pointed the finger at Israel. “The only seditious force in the region is Israel.” 

He warned that the Israeli regime is trying to grow its footprint in the Persian Gulf and urged countries to be weary of the regime’s destructive acts.

Iran and Saudi Arabia announced a détente in March 2023 after seven years of frozen ties. Iran’s embassy opened in Riyadh in May. Saudi Arabia has yet to open its embassy in Tehran. 

 

 

Buying Russian crude unviable for Pakistan

In one of my blogs I had questioned the economic viability of Pakistan importing Russian crude oil on three points: 1) longer distance, 2) higher freight and handling charges, 3) Pakistani refineries not tuned to refine Russian crude and on top of all 4) why to buy Russian oil on upfront payment when Saudi Arabia is supplying crude on deferred payment. Today, a Reuters report substantiated my apprehensions.

The report says, “Pakistan is unlikely to meet a target for Russian crude to make up two-thirds of its oil imports, despite attractive prices, hampered by a shortage of foreign currency and limitations at its refineries and ports”.

It also pointed, “The benefits are being offset by increased shipping costs and lower quality of refined products compared to the fuels produced from crude from Pakistan's main suppliers, Saudi Arabia and the United Arab Emirates”.

It goes to the extent of saying, “Added to the challenges, transportation costs for Russian crude are higher than for Middle Eastern crudes not only because of the longer distance traveled, but because Pakistan's ports cannot handle the large vessels departing Russia”.

According to the report, “Urals crude had to be transferred from a supertanker on to smaller ships, known as a lightering operation, in Oman before heading to Pakistan, unlike direct shipments from the Middle East”.

Even with that extra cost, it was worth importing Russian oil, said Viktor Katona, lead crude analyst at Kpler, as Saudi Arab Light crude is US$10 to US$11 per barrel more expensive for Pakistani refiners than Urals, while lightering operations add around US$2 to US$3 per barrel.

"Pakistani buyers would still be much better off," he said.

The key issue is, “Urals quality is a deterrent, as Pakistan's refineries cannot get as much gasoline and diesel out of Urals crude as they produce from Saudi and UAE crudes”.

It will take Pakistan Refinery (PRL) at least two months to fully process its first cargo of 100,000 tons (730,000 barrels) of Urals crude as it needs to be blended with Middle East crude to offset the high output of fuel oil from the Russian oil, Zahid Mir, chief executive of the refinery.

"Our optimum processing solution is to blend Urals with Middle Eastern imported crude while not exceeding 50% Ural in the blend," Mir said.

The residual fuel produced from Urals crude has to be mixed with diesel and kerosene to meet specifications for local use while the remainder is exported, but the deal was still commercially viable for Pakistan, Mir said.

PRL has no plans to upgrade its refinery to process fuel oil into higher quality fuels, he added.

Kpler's Katona expects Pakistan's liquidity issues and technical challenges to weigh on its appetite for Russian crude.

"Russian imports into Pakistan will not grow into anything bigger than one cargo per month," he said.

 

 

Crude oil on track for biggest monthly gains

According to Reuters, crude oil prices hovered near three-month highs on Monday, set to post their biggest monthly gains in over a year on expectations that Saudi Arabia would extend voluntary output cuts into September and tighten global supply.

Brent crude futures dipped 9 cents to US$84.90 a barrel by 0005 GMT while US West Texas Intermediate (WTI) crude was at US$80.41 a barrel, down 17 cents.

The September Brent contract will expire later on Monday. The more active October contract was at US$84.23 a barrel, down 18 cents.

Brent and WTI settled on Friday at their highest levels since April, gaining for a fifth straight week, as tightening oil supplies globally and expectations of an end to US interest rate hikes supported prices. Both the benchmarks are on track to close July with their biggest monthly gains since January 2022.

Saudi Arabia is expected to extend a voluntary oil output cut of one million barrels per day (bpd) for another month to include September, analysts said.

"Oil prices are up 18% since mid-June as record high demand and Saudi supply cuts have brought back deficits, and as the market has abandoned its growth pessimism," Goldman Sachs analysts said in a July 30 note.

"We still expect the extra 1 million bpd Saudi cut to last through September, and to be halved from October."

The bank maintained its Brent forecast at US$86 a barrel for December and expects prices to rise to US$93 in the second quarter of 2024.

Goldman Sachs estimated that global oil demand rose to a record 102.8 million bpd in July and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China's consumption.

"Firmer demand is driving a moderately larger deficit in H2 2023 than expected, averaging 1.8 million bpd, and a modest 0.6 million bpd deficit in 2024," it said.

Exxon Mobil CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year.

In the US, energy firms in July cut the number of oil rigs for an eighth straight month by one to 529, Baker Hughes said in its weekly report on Friday.

 

 

 

Iranian oil exports to China triple

Iranian oil shipments to China have more than tripled over the past three years despite the US sanctions on the country and the increase in Russia’s shipments to the Asian country, data released by data analytics firm Kepler show.

According to the data Iranian crude exports to its major trade partner have been hovering around one million barrels per day (bpd) in 2023, while the figure was roughly 325,000 bpd in 2020.

Iranian oil shipments to China have been on upward trajectory since 2019. In 2021 the exports reached 585,000 bpd and in 2022 the figure was reported at 766,000 bpd.

The International Energy Agency (IEA) in a recent report titled "Oil 2023" confirmed Iran's daily export of one million barrels oil to China saying, “Despite severe financial restrictions, Iran managed to increase its crude oil production by about 140,000 barrels per day in 2022 to an average of 2.5 million barrels per day. It seems that Tehran has maintained its crude sales to China, which has been around one million barrels per day since the third quarter of last year.”

Iranian oil production also increased in the current year, in May the country’s oil output reached 2.9 million bpd, 350,000 bpd more than in 2022.

Back in April, Bloomberg reported that Chinese private refineries are buying more Iranian oil despite the rising competition for supplies from Russia.

“The teapot refineries are prioritizing the flows, with Russian supplies getting more pricey as mainstream buyers such as state-owned Chinese refiners and Indian processors take a greater share,” the report read.

In March, Chinese import of Iranian crude and condensate jumped 20%MoM to 800,000 barrels a day, and are on track to extend gains in coming months, Emma Li, an analyst with data intelligence firm Vortexa told Bloomberg.

While Iranian oil has long been sanctioned by the US, refiners in China have proved to be a consistent outlet.

Most Iranian oil used to go to state-owned refineries but the private refiners in Shandong especially are now running the show, said Homayoun Falakshahi, senior crude oil analyst at Kpler.

Earlier this year, Iranian President Ebrahim Raisi said that the oil and gas sector experienced a growth of 9% in the Iranian calendar year 1401.

Oil Minister Javad Oji has also said recently that a new record high will be reached in the country’s oil export in the current Iranian calendar year.

Despite the negative impacts of the US sanctions, Iran has been ramping up its oil production and exports over the past few months.

In his remarks in November 2022, President Raisi highlighted the failure of the enemy’s policy of maximum pressure, saying the country’s oil export has reached the pre-sanction levels.

Back in January, the EIA in a report put Iran’s average oil production in 2022 at 2.54 million bpd, 140,000 bpd more than a year ago.

Iran's oil production in 2021 was about 2.4 million bpd.

Benjamin Netanyahu’s day of infamy

I have selected this write up from The Jerusalem Post, the leading newspaper of Israel. I want every Pakistani to read this and share with other fellow Pakistanis. According to The Jerusalem Post, on Monday, July 24, 2023 is a date that will live in infamy – the Zionist enterprise was attacked by enemies from within, led by an emperor of lies. 

At midday, Israel’s legislature fired a cannonball at the Jewish state’s Supreme Court. As civil wars often begin, it was actually a limited attack – a single shell with a lightweight payload. Even so, it was announced as a broad offensive’s prelude, and absorbed like a declaration of war. 

Yes, the original plan, a legislative blitzkrieg, was abandoned. It had to be abandoned because the war’s prospective victims – multitudes who gave the Zionist project their best years – took to the streets, shouted in anger, and shook their fists. 

That’s why the assault’s mastermind – the justice minister, of all people – was forced by his emperor to veer to blitzkrieg’s alternative, the strategy of indirect approach. The redesigned assault would target one outpost at a time, while the war’s victims were to be sedated by fake peace talks. 

For several months, the strategy worked. The victims really thought they prevented civil war and saved the court. But then came Monday’s cannonball, and the prime minister’s implied statement: My civil war is here. 

The civil war was sowed three years ago, when our Netanyahu emerged at the courthouse where his trial was set to begin, and publicly attacked the judiciary, libeling its prosecutors for having allegedly conspired with the press and the police to unseat him. 

That was the battle cry. Behind the scenes, a battle plan was being devised. The idea was to conquer the courts in a pincer movement: from one flank, the judges would be appointed directly by the ruling coalition’s politicians; and from the opposite flank, the courts’ wings were to be clipped. That’s how the judges would become subservient to the politicians.

 

Israel Settlers considering returning to their countries of origin

According to a survey more than a quarter of Israelis in the occupied Palestinian territories are considering returning to their countries of origin. The survey comes as credit rating agencies reported that the mounting domestic uncertainty will reduce Israel's economic growth this year. 

The Times of Israel has cited a poll conducted by the regime's channel 13 as saying 28% of respondents were weighing a move abroad while an additional 8% were unsure.

“The survey reflected the impact of the coalition passing the law, despite sustained mass protests, vehement opposition from top judicial, security, economic and public figures, and thousands of Israeli military reservists vowing to quit service,” the newspaper reported.

Highlighting the strong opposition against Netanyahu's cabinet and signs of protests to continue, only 33% respondents said they believe the Israeli prime minister's claim that he wants to compromise on the rest of the judicial overhaul law. 

Among other aspects that the poll found was that 54% of Israelis fear that the judicial overhaul will harm the security of the occupation regime.

Another 56% said that they were worried about a civil war erupting between opponents and supporters of Netanyahu's cabinet judicial reforms. 

The newspaper, also citing the same poll, indicated that “Gantz’s National Unity party would win 30 seats in the 120-seat Knesset, the most of any party, if elections were held today, surpassing Likud, which ranked next with 25 seats.”

Netanyahu - who is facing corruption charges - has resisted pressure from the occupation's staunchest allies, including the United States, which is looking with concern at the crisis unfolding in the occupied Palestinian territories, to drop his judicial overhaul measures.

The plan has also seen the biggest polarization among Israeli settlers in the regime's history with more than seven months of mass protests that saw violent clashes between the Israeli police and settlers after Netanyahu passed the bill on July 24. 

It comes as protests against the bill saw a forum of around 150 of the regime's largest companies holding a strike on Monday. Two of the largest Israeli malls also closed the stores in their shopping centers. 

Israeli President Isaac Herzog and the head of the occupation’s largest labor union failed to mediate a compromise between the coalition and opposition ahead of the vote in a bid to ease the crisis. 

After news emerged that the compromise talks had collapsed the early gains for the Israeli currency were and sent the shekel weaker, with losses deepening further after the vote.

In a sign that the situation could get worse, the head of Israel's Histadrut labor federation has declared that he will be consulting with union officials about declaring a general strike.

"From this moment on, any unilateral progress in the reform will have serious consequences ... Either things will progress with broad agreement, or they will not progress at all," he said.

That has all sent Israeli financial markets tumbling with economists predicting there could also be an effect on inflation and interest rates. 

The shekel has weakened by around ten percent versus the dollar since late January, when the cabinet unveiled its controversial judicial overhaul plan, which harmed foreign inflows.

A report on Thursday by the S&P Global Ratings said the controversy over Netanyahu’s plans to limit the powers of the judiciary is increasing domestic political uncertainty and will lead to lower economic growth for the entity this year. 

"If government and opposition do not achieve an agreement on the topic, this could further exacerbate domestic political confrontation and weigh on medium-term economic growth," S&P said. 

With a deep divide in Israeli society and strained loyalties by thousands of army reservists and foreign investors have been left frightened.

Political watchdog groups have appealed to the Supreme Court to overturn a new law passed by parliament in the first of the changes to trim Supreme Court powers, paving the way to a showdown among branches of government when it hears the arguments in September.

Israeli Finance Minister Bezalel Smotrich, a strong supporter of the judicial changes, pinned the blame on the Israeli protesters and not the cabinet for the warning by the rating agencies.

"S&P, like Moody's ... does not warn of damage to the economy due to the legal reform, but because of the protest that creates instability," Smotrich said in a statement.

S&P said that its ratings for the regime have in the past been consistently constrained by domestic and regional political and security risks. 

Israel, it added, has a history of frequent elections and changes in cabinet composition, which makes future policy direction harder to predict.

The calls by Israeli settlers and unions for further strikes, in addition to more than 10,000 reservists joining the protest movement, have split the regime. 

Experts believe the economic outlook is likely to slow further, adding more fuel for settlers to leave the occupied Palestinian territories where they fear of the possibility of a civil war amid a rise in violent protests on one hand and the increasing retaliatory operations

carried out by the resistance on the other. These have added to the woes of their security concerns. 

On Friday, the Israeli Air Force chief warned that enemies may exploit the internal crisis, saying his forces need to remain vigilant and prepared.

Tomer Bar said, "It is possible that at a time like this, they (Israel's enemies) will try to test the frontiers, our cohesion, and our alertness," he said without elaborating. 

As the crisis escalated further after the July 24 vote, Israeli media have reported that Netanyahu had received at least four letters from the regime's military intelligence warning of serious security ramifications and historic weaknesses as a result of his judicial overhaul measures.
 

 

Hydropolitics: A new term coined in Asia

Most of Asia's major rivers originate in China and flow into countries like India, Bangladesh and Vietnam. China has earned the title of "upstream superpower," but concerns over the weaponization of water, the responses of nations downstream, and climate change are stirring up water politics and stoking tensions.

The visually rich three-part Nikkei Asia series titled Asia's Age of Hydropolitics explores the effects that the actions of upstream nations -- exacerbated by climate change -- have on countries downstream.

The first story focuses on Asia's rivers that originate in the Indo-Tibetan plateau in China. They flow into 18 other nations, delivering water to a quarter of the world's population.

As China gets ambitious about managing its own water shortages by drawing on these rivers -- and allows its foreign policy to dictate its actions upstream -- many nations downstream are feeling its presence.

The second story frames Bangladesh -- and the geopolitically significant Brahmaputra River -- as a proxy of Sino-Indian conflict. The story follows the Brahmaputra as it enters India through the disputed border with China, and explores the effects of dams and upstream politics on the region's most disenfranchised.

As the Brahmaputra makes its way into Bangladesh, the lowest riparian country in the region finds itself at the center of China-India hydropolitical hostility.

The third and final piece in the series focuses on the Mekong -- one of the world's longest and most biodiverse rivers. Dams being built upstream, 22 by China alone, combined with climate change and human activity, have contributed to the sinking of the Mekong Delta. Half of the river-strewn region could be underwater before the century is through.

But locals are adapting -- and emerging innovative strategies offer hope of mitigating the worst.

Courtesy: Nikkei Asia

 

 

 

Iranian LPG export to exceed 9 million tons

Iran's average monthly LPG export in the first half of this year was 784,833 tons. It is expected that if the loading rate is at the current level or more, the total export this year will reach 9.42 million tons.

Iran’s LPG exports mostly go to China despite the US sanctions, facilitated by Chinese shipowners who have developed an armada of very large gas carriers since sanctions were imposed on Iran in 2014 and then in 2018.

Iran’s LPG exports could be higher without the restrictions that international shipping and trading firms face due to the sanctions and allow Iranian exporters to resume access to the global markets.

Iran exported 4.71 million tons of liquefied petroleum gas (LPG) in the first six months of 2023, according to the data released by S&P Global Platts.

Based on the Platts data, Iran's LPG exports loading in June were estimated at around 696,000 million tons, 28.5% less than May when 973,260 million tons of LPG was shipped.

 

 

 

Pakistan-Saudi Arabia to create a refinery

Four Pakistani state-owned petroleum companies (SoEs) have signed on Thursday a memorandum of understanding (MoU) to facilitate US$10 billion Saudi investment in a new oil refinery at Gwadar, Baluchistan with a refining capacity of 300,000 barrels per day – the first in more than a decade and the largest in the country.

The government is reportedly in the advanced stages of negotiations with Saudi giant Aramco to execute the Greenfield refinery project at the strategic Gwadar Port and wanted to complete the initial paperwork before its tenure ends in two weeks.

Oil and Gas Development Company (OGDCL), Pakistan State Oil Company (PSO), Pakistan Petroleum (PPL), and Government Holdings (GHPL) signed the MoU to join hands and provide comfort to the Saudi firm to enter Pakistan with a major investment. The four SoEs would join the project through equity participation.

The project envisions setting up an integrated refinery petrochemical complex with a crude oil processing capacity of a minimum 300,000 bpd along with a petrochemical facility. The integrated complex shall comprise various components such as marine infrastructure, petrochemical complex, storages for crude oil and refined products, pipeline connectivity etc.

According to the Petroleum Division, despite being integral to the growth of the economy, no new refinery project has materialized in Pakistan for more than a decade and only two refineries have been added in the last 40 years. Compared to the 20 million tons of refining capacity, the actual capacity utilization is at around 11 million tons.

This is mainly due to the decreasing furnace oil demand in the country as a result of a change in the energy mix in the power sector and the fixed production slate of refineries that cannot produce just petrol and high-speed diesel and all products are produced simultaneously. Thus, as furnace oil demand declines, refineries have to lower their overall production and struggle to maintain their throughput at optimal levels.

This is despite the fact that independent consultants forecast Pakistan’s demand for petrol and diesel to grow beyond 33 million tons per annum by 2023.

To facilitate the Saudi investment in refining, the government has recently passed a new policy under which a new deep conversion oil refinery of a minimum 300,000 bpd achieving financial close of the project within five years shall be eligible for a customs duty of 7.5% for 25 years on petrol and diesel of all grades produced effective from the date of commissioning of the refinery.

The said refinery shall also enjoy a 20-year tax holiday and would also be entitled to exemption from levy of customs duties, surcharges, withholding tax, general sales tax, any other ad valorem tax or any other levies and duties on import of any equipment to be installed, or material to be used in the refinery projects without any precondition for obtaining certification by the Engineering Development Board.

These fiscal incentives and other facilitation would be recorded and protected under the project agreements between the project company, the key sponsors, investors and the concerned government and would be protected through a grant to Special Economic Zones Act.

Minister for State Musadiq Malik, who witnessed the MoU signing ceremony, said the Saudi oil firm showed a willingness to inject the entire equity into the multibillion-dollar refinery project, leading the Pakistani government to decide on a joint venture with key SoEs.

 

 

Can Wang Yi improve US-China relations?

According to Nikkei Asia, Chinese President Xi Jinping's decision to recall senior diplomat Wang Yi to head the Ministry of Foreign Affairs reflects a misstep, but it could be a crucial move ahead of US-China summit in November 2023.

"Qin Gang's fall from grace was as unexpected and abrupt as his elevation over the heads of many experienced diplomats," said Daniel Russel, a former diplomat who now is an expert at the Asia Society Policy Institute, United States. "Since both moves are attributed to China's leader, this episode will be seen as an embarrassing lapse in judgment at the top."

By and large, analysts do not expect any change to the direction of China's foreign policy, guided by Xi's thinking on diplomacy, aimed at seeking to assert global influence in line with the country's development achievements.

"Whether this is, in fact, effectively a placeholder appointment until a younger official gets the nod is unclear, but for now Wang is the most dominant foreign affairs official in China for a very long time," said Bill Bishop, a China expert at sinocism.com.

Known for his tough-talking style, the 69-year-old Wang held the ministerial portfolio for a decade before being promoted in October last year to head the Communist Party's Foreign Affairs Commission in charge of policymaking. He is also a member of the party's top decision-making body, the Politburo.

"Wang's oversight of policy implementation is therefore likely to strengthen the consistency of Beijing's diplomatic messaging and actions, while further cementing the party's already strong guidance of foreign affairs," US consultancy Eurasia Group wrote in a note.

His return, while signaling a comeback for more aggressive "wolf warrior" diplomacy, is seen as crucial ahead of a series of international events, notably the Asia Pacific Economic Cooperation summit to be hosted by the United States later this year.

"A key agenda item in US-China relations is whether the working and ministerial level can set the conditions for a successful visit of Xi to San Francisco for APEC in November," said Rorry Daniels, a senior fellow at the Asia Society Policy Institute's Center for China Analysis.

Reappointing Wang also reflects Xi's preference for someone with a track record of defending China's positions, such as its stance on Taiwan, well as asserting the country's interests amid geopolitical tensions with the United States and its allies.

"This could complicate the Biden administration's efforts to maintain and build on the recent detente in the bilateral relationship," Eurasia Group wrote.

Wang's reappointment has been broadly welcomed in Indonesia. "Wang Yi's return could even be bringing a sense of predictability and ease to Indonesian ministers, who already have good relations with him for a long time," said one analyst, who spoke on condition of anonymity.

Pakistan Stock Exchange index up 2.5%WoW

The week ended on July 27, 2023 continued its bullish run at Pakistan Stock Exchange (PSX). The benchmark index started the week at 45,920.73 points, remained on upward trajectory and closed at 47,076.99 points, gaining 1,156.26 points or 2.5%WoW. Investors’ sentiments remained positive after the approval of the IMF Standby Agreement for US$3 billion and expectations that the general elections would be held in time.

Average daily traded volume was reported 125.64 million shares as compared to 325.12 million shares a week ago, down by 61.4%.

The PKR parity appreciated to PKR286.45 to a US$.

Results announcements for the period ended June 30, 2023 continued during the week. Several companies posted results below past performances mainly owing to the lingering global and local economic headwinds resulting in record high interest rates, deteriorating exchange rate, imposition of super tax, amongst other reasons.

Monetary policy announcement is scheduled for July 31, with market consensus remaining at a 100bps hike.

In other positive news, 5 state owned enterprises (SOEs) have signed  MoUs to finance their 30% portion in the development of a Greenfield refinery project with Saudi Aramco, and establishment of a Sovereign Wealth Fund worth PKR2.3 trillion by including 7 SOEs (where UAE has shown interest in acquiring shares) to fund capital investments. Abu Dhabi Investment Authority has provided technical assistance to finalize the law.

Other news for the week were: 1) global crude oil remained higher owing to production cuts amidst sluggish demand from China, 2) Pakistan scheduled to repay US$2.44 billion during July; 3) an electricity tariff hike for PKR7.50 per unit announced, barring consumers using up to 200 units and partial subsidy for consumers up to 300 units; 4) prolonged wet spell threatens cotton crop output; 5) POL products worth US$1.182 billion imported on deferred payment basis from Saudi Arabia; 6) Petroleum dealers margins increase by PKR1.64 per liter; 7) US FED announced rate interest rate hike by 0.25bps.

Flow-wise, major selling was recorded by Mutual Funds with a net sell of US$5.98 million. Other Organization absorbed most of the selling with a net buy of US$5.22 million.

Top performing scrips during the week were: HGFA, AICL, HBL, NBP, and SHEL, while top laggards included: SML, BNWM, DAWH, MUGHAL, and ENGRO.

In brokers’ opinion, the market shall maintain it’s positive uptick owing to news relating to Chinese loans rollovers, fresh funding from GCC and other bilateral allies, chances of political stability post general elections towards the end of the year and a possible re-entry into a bigger IMF program to address any lingering default concerns.

However, it is imperative to see which direction the policy rate goes in the July 31, announcement, which will further determine market sentiments.

Brokers reiterate their stance to follow a cautious approach while taking new positions and we continue to advocate dollar-denominated revenue stream scrips (Technology and E&P sector) to hedge against currency risk or high dividend yielding scrips.

 

 

 

 

North Korea, China and Russia commemorate victory 70 years ago

Delegations from Russia and China, North Korea’s key allies in the Korean War, gathered in Pyongyang this week to celebrate North Korea’s Victory Day in the war that ravaged the Korean Peninsula seven decades ago.

North Korean leader Kim Jong Un gave Russian Defense Minister Sergei Shoigu – an architect of Moscow’s assault on Ukraine – a tour of a defense exposition in Pyongyang on Wednesday, with images from North Korean media showing them walking past an array of weaponry, from Pyongyang’s nuclear-capable ballistic missiles to its newest drones.

At a state reception for Shoigu and the Russian delegation, in a reference to the war in Ukraine, North Korean Defense Minister Kang Sun Nam expressed Pyongyang’s full support for the just struggle of the Russian army and people to defend the sovereignty and security of the country, according to a report from the state-run Korean Central News Agency (KCNA).

In remarks of his own, Shoigu then said the Korean People’s Army (KPA) has become the strongest army in the world and pledged continued cooperation to keep it that way.

Also Wednesday, at a reception for the Chinese delegation led by Politburo member Li Hongzhong, senior North Korean official Kim Song Nam thanked Chinese forces for joining in the Korean War, saying North Korea “would not forget forever the heroic feats and merits of the bravery soldiers who recorded a brilliant page in the history.”

Ankit Panda, Stanton senior fellow in the Nuclear Policy Program at the Carnegie Endowment for International Peace said the presence of the Chinese and Russian delegations at the armistice anniversary underscores the importance Pyongyang attaches to its relationships with both countries.

“Shoigu’s presence is particularly notable, a sign of just how close Pyongyang and Moscow have become since Russia’s invasion of Ukraine last year,” Panda said.

The gathering in Pyongyang illustrates a weakness too, said Blake Herzinger, a research fellow at the United States Studies Center in Australia.

“It’s really representative of how short both China and Russia’s lists of friends are, and the willingness of both to show support for a rogue regime,” Herzinger said.

Thursday was the 70th anniversary of the end of the 1950-1953 Korean War, one of the first international conflicts of the Cold War era.

In the fall of 1950, China sent a quarter million troops into the Korean Peninsula, supporting its North Korean ally and pushing back the combined forces of South Korea, the United States and other countries under the United Nations Command.

More than 180,000 Chinese troops died in the Korean War, Beijing calls the War to Resist US Aggression and Aid Korea.

Russia’s predecessor, the Soviet Union, also supported North Korea during the war, with combat support like Soviet aircraft engaging US jets and with supplies of heavy weaponry like tanks.

Despite Pyongyang’s claims of a victory, the war it launched in 1950 ended in a stalemate, with the current demilitarized zone along the 38th parallel in much the same location as it was before the war.

The Korean War armistice was signed on July 27, 1953, ending hostilities although a true peace deal has never been signed.

After the war, the US, which anchored the UN Command that supported South Korea, kept a large contingent of troops in the South at a range of Army and air bases. The US Camp Humphreys in Pyeongtaek, south of Seoul, is the largest overseas US military base.

Meanwhile, Moscow over the decades has been a staunch ally for North Korea, especially as the two share a joint animosity toward the West. The same can be said for the Chinese Communist Party, especially under China’s current leader Xi Jinping.

Panda noted how both Moscow and Beijing, permanent members of the UN Security Council, have defended Pyongyang’s interests before the world body as Western powers led by the US have tried to put further sanctions on North Korea.

Now the three authoritarian nuclear powers are putting up a united front over Ukraine, a former Soviet state which Russia invaded in February 2022 after Russian President Vladimir Putin declared it was historically Russian territory.

That invasion soon stumbled as Ukrainians put up a fierce defense of their homeland and as Western powers scrambled to send weapons and ammunition to Kyiv while Moscow burned through its own stocks and looked to allies like Iran and North Korea to resupply.

US officials said last year that North Korea was selling millions of rockets and artillery shells to Russia for use on the battlefield in Ukraine.

China has not supplied Russia with weaponry, but remained steadfastly in Moscow’s corner as the war in Ukraine drags into its 18th month, with Xi deepening his relationship with Putin and echoing the Kremlin’s rhetoric over the conflict.

After the brief mutiny in Russia by the Wagner mercenary group last month, a Chinese Foreign Ministry spokesperson expressed support for the Putin regime.

“As Russia’s friendly neighbor and comprehensive strategic partner of coordination for the new era, China supports Russia in maintaining national stability and achieving development and prosperity,” an online statement said.

Russian and Chinese militaries have been active in the waters off the Korean Peninsula, with their latest joint exercise, Northern/Interaction-2023, bringing together naval and air forces from both countries in drills aiming to “strengthen both sides’ capabilities of jointly safeguarding regional peace and stability and responding to various security challenges,” according to the People’s Liberation Army’s English website.

Those exercises in the waters between the Korean Peninsula and Japan occurred as South Korea and the US were conducting military displays of their own, including a US Navy nuclear-capable ballistic missile submarine making a port call in South Korea for the first time in four decades.

Pyongyang’s armistice commemorations were expected to continue Thursday with a military parade in the capital. North Korea typically marks key moments in its history with displays of its newest weaponry.

One such weapon that may be on display is the Hwasong-18 ICBM, a solid-fueled, nuclear-capable missile that North Korea claims could hit anywhere in the United States. It has tested that missile twice this year, most recently earlier this month.

Saudi Arabia welcomes UN initiative to resolve decaying oil tanker issue

Saudi Arabia has welcomed United Nations initiative to implement an operational plan to solve the problem of the Saffer floating oil tanker and to start unloading its crude oil, which is estimated at 1.14 million barrels.

“The Kingdom would continue its efforts to work with the United Nations and the Yemeni government to end the oil tanker problem,” the Ministry of Foreign Affairs said in a statement.

The ministry welcomed the success of the international efforts and endeavors of the United Nations during the past years that culminated in the start of unloading the floating tanker and averting a marine environmental disaster that threatens maritime security and the economy in the Red Sea region.

Saudi Arabia appreciated the efforts of the UN Secretary General Antonio Guterres and the UN working team, who worked to harness all efforts to end this huge environmental problem. Saudi Arabia is one of the first donor countries to provide financial grants to Yemen through the King Salman Humanitarian Aid and Relief Center (KSRelief) as part of its efforts along with the international community to solve this problem.

The ministry expressed the Kingdom’s hope that the unloading of the tanker will soon be completed through using an alternative ship in line with the UN operational plan. It also thanked the leadership of the Arab Coalition to Support Legitimacy in Yemen for its support to facilitate the arrival of the ship to start the unloading process.

It is noteworthy that the UN recently announced the purchase of an alternative tanker to empty the crude oil. The UN Development Program had signed an agreement with the Euronav Company operating in the field of maritime transport to purchase a large crude oil tanker.

The rusting oil tanker Saffer is located less than five nautical miles off the coast of Yemen. After plying the seas for six years, the ship was converted in 1987 into a floating storage-and-offloading facility — cheaper than an onshore terminal — linked by pipeline to the Yemeni oilfields in Marib. Since 2015, operations have been disrupted by the country’s civil war. A skeleton crew maintains the ship, which is steadily corroding and could break apart at any moment.

Egypt seeking funds for purchase of wheat

Egypt, one of the world’s biggest wheat importers, is in talks with the UAE for a US$400 million financing to help it purchase the commodity.

The funding would come from the Abu Dhabi Fund for Development, via tranches of US$100 million, Egyptian Supply Minister Ali El-Mosilhy told Bloomberg. He didn’t say when a deal is likely to be finalized. 

It would be a boost for Egypt, facing a dire shortage of foreign exchange and a cost-of-living crisis, partly as a result of soaring food prices.

Earlier this month, Egypt announced that Abu Dhabi wealth fund ADQ would invest US$800 million in companies in its economy. Qatar has also looked bolster the nation’s economy.

El-Mosilhy criticized Russia’s exit from the Black Sea grain-export initiative and said it will continue to import Ukrainian wheat even after the collapse of the United Nations-backed agreement this week.

“We are not pleased with the Russian withdrawal from the UN grain-export deal,” El-Mosilhy said. He urged Moscow to reconsider its position.

Egypt’s economy has been negatively affected by an increase in grain prices since Russia invaded Ukraine last year. 

While global benchmark wheat futures had begun to moderate, they’ve surged this week after Russia terminated the export pact. 

The pact that had allowed Ukraine's grain to be exported safely over the Black Sea for the past year expired on Monday when Russia withdrew and warned that it could not ensure ship safety, a move that the United Nations said would strike a blow to people in need everywhere.

Moscow has said that if demands for increased exports of its own grain and fertilizer were met, the Black Sea pact might be revived.

Russia said it would not prolong the grain pact after accusing the West of failing to fulfill a parallel memorandum aimed to facilitate Russia's agricultural and fertilizer exports.

The International Monetary Fund has said Russia's withdrawal from the agreement allowing Ukrainian exports via the Black Sea weakens the global food security outlook and risks increasing food prices, particularly in low-income countries.

 

China removes Qin Gang as foreign minister

Qin Gang, who has not been seen in public since June, has been removed as the country’s foreign minister, reports South China Morning Post.

The abrupt announcement of Qin’s removal came after weeks of speculation about his fate.

His absence has dominated domestic political discussions, and evolved into one of the biggest crises for Chinese President Xi Jinping since his unprecedented third term began last year.

Wang Yi, who outranks Qin and serves as Xi’s top foreign policy aide, is the new foreign minister.

Wang, the director of the Office of the Central Foreign Affairs Commission, has been standing in as foreign minister for the past few weeks.

He has been attending a series of diplomatic activities including the BRICS summit under way in South Africa and meetings with former US secretaries of state Henry Kissinger and John Kerry in China last week.

Wang was China’s foreign minister in Xi’s first and second term before Qin was promoted in December

Reportedly, the decision to remove Qin from his post was made at a special session of the National People’s Congress Standing Committee, which took place one day after the top decision-making body, the Politburo, convened on Monday.

According to rules updated in June last year, the NPC Standing Committee holds a session once every two months, but in practice, usually holds them near the end of even-numbered months. An interim session for special cases can be scheduled by the committee’s chairman.

Qin’s removal as foreign minister is in line with the Organic Law of the National People’s Congress, which came into effect in March 2021. The rule empowers the Standing Committee rather than a national congress to appoint or remove from office some members of the State Council.

Qin was last seen in public during a meeting of senior diplomats from Russia, Vietnam and Sri Lanka on June 25, according to China’s foreign ministry.

Despite rumours circulating on social media and among foreign diplomats, Beijing has remained vague about Qin’s status and whereabouts, attributing his prolonged absence to unspecified health reasons since early July.

“China’s diplomatic activities are under way as usual,” foreign ministry spokeswoman Mao Ning said on July 17 when pressed about Qin’s disappearance, while stopping short of denying speculation about his fate.

But Beijing’s secretive handling of the drama has drawn widespread criticism, raising questions about the Chinese government’s credibility and its notoriously opaque decision-making. It has also fuelled uncertainty to China’s troubled relations with the outside world.

Once seen as a trusted aide to the president, Qin rose rapidly through the ranks – from ministry spokesman and deputy foreign minister in charge of protocol and European affairs to the country’s second-ranking diplomat.

Qin was appointed China’s ambassador to the United States in July 2021, and 17 months later was elevated to foreign minister, and then state councillor in March, a position that ranks above a cabinet minister.

 

UN starts removing oil from tanker near Yemen

The United Nations said on Tuesday it had started the removal of more than one million barrels of oil from a decaying supertanker off Yemen's Red Sea coast in a complex operation it hopes will ward off a regional disaster.

UN officials have been warning for years that the Red Sea and Yemen's coastline was at risk as the Safer tanker could spill four times as much oil as the 1989 Exxon Valdez disaster off Alaska.

A UN spokesperson said on Tuesday a spill could cost US$20 billion to clean up.

The war in Yemen caused the suspension in 2015 of maintenance operations on the Safer, which is used for storage and has been moored off Yemen for more than 30 years.

The UN, which has never before undertaken such a rescue mission, has warned its structural integrity has significantly deteriorated and it is at risk of exploding.

"In the absence of anyone else willing or able to perform this task, the United Nations stepped up and assumed the risk to conduct this very delicate operation," UN Secretary-General Antonio Guterres said.

"The ship-to-ship transfer of oil which has started today is the critical next step in avoiding an environmental and humanitarian catastrophe on a colossal scale."

The oil transfer is expected to take 19 days to complete, the United Nations' Development Program (UNDP) said in a statement.

"We are obviously very cautious – it's only the beginning of a transfer," UNDP spokesperson Sarah Bel told a Geneva press briefing when asked about the operation's risks.

"The cost of an oil spill is estimated to be approximately US$20 billion, and it will take years to clean up," she added.

She warned that any spilled oil could reach the African coast, damaging fish stocks for the next 25 years and destroying 200,000 jobs.

It would also close ports that bring food and supplies to Yemen, where some 17 million people rely on humanitarian aid, she said.

 

Egypt could help end Sudan conflict

Egypt recently took the initiative to host a summit in order to address the civil war in Sudan. The summit brought together leaders from several countries, including the Central African Republic, Chad, Eritrea, Ethiopia, Libya, and South Sudan.

However, notably absent from the summit were representatives from the Rapid Support Forces (RSF) and the Sudanese Armed Forces (SAF). At the Cairo summit, the Egyptian leadership wanted to draw a framework for any potential peace agreement and to remind all parties to facilitate the humanitarian corridors for civilians for aid delivery.

Egypt possesses historical and political influence in the MENA region, enabling it to potentially bring about an end to the conflict. By engaging directly with the key stakeholders in Sudan as well as their regional supporters, Egypt can initiate negotiations for sustainable political reforms by creating the environment where both sides and their supporters agree to sit together and try to reach sustainable peace.

The conflict has the potential to be long-lasting due to the steadfastness of both parties in their positions. General Mohamed Hemeti declared that he is present on the field and would not cease fighting until he achieved the desired goal, overthrow the government and seize power. Similarly, General Abdel Fattah Al-Barhan announced that he was defending the Sudanese state's sovereignty.

Numerous efforts to bring about peace in Sudan have proven unsuccessful so far due to disagreements involving the mediators and the parties involved in the conflict. A notable instance occurred when Khartoum raised objections to the peace initiative presented by Intergovernmental Authority on Development (IGAD) and rejected Kenya’s chairmanship of the conflict resolution committee, claiming that the Kenyan president favors the RSF. Furthermore, both parties opposed a demand from Ethiopia to impose a no-fly zone in Sudan. Additionally, Sudan vehemently rejected a proposal to deploy East African forces, even going so far as to threaten the suspension of its membership in the East African bloc of IGAD.

The Sudanese leadership strongly believes that the deployment of foreign troops would only prolong the conflict by potentially involving external actors. They also harbor concerns that Ethiopia and Kenya may stand to benefit from Sudan's vulnerability and its inability to unite its own factions, thereby gaining regional power.

This objection to various proposals from neighboring countries indicates that the solution in Sudan can’t be found through traditional ways. The warring parties have to agree on one regional mediator—a country or a regional organization with good relations with both SAF and RSF—to end the conflict.

The Cairo summit stressed that the Sudan conflict would only be resolved in Sudan, closing the door to any external interference in Sudan. An announcement is welcomed in Khartoum, but it still could not end the conflict or at least bring both warring parties to the negotiation table. 

Egypt and Sudan have long been connected by historical, social, and political ties, as well as a shared destiny as one nation. This led the Egyptian Parliament in October 1951 to amend King Farouk's title to the King of Egypt and Sudan.

Egypt fears that the outbreak of conflict in Sudan could lead to the influx of mercenaries and armed militants through the country's southern borders. Intelligence reports suggest that Hemeti and his forces receive military support from several Arab and foreign countries.

Reports have also revealed a relationship between the Wagner Group, a Russian military contractor, and the Rapid Support Forces. 

The Wall Street Journal reported that General Khalifa Haftar in Libya is supplying weapons to Hemeti.

This unstable security situation in Sudan, coupled with the availability of arms and equipment from various regional and international parties, is a cause for concern for the Egyptian administration.

Egypt maintains strong alliances and close ties with the United Arab Emirates, Saudi Arabia, and Libya, making it an important regional player. Furthermore, Egypt has established a stable relationship with Russia. These connections enable Egypt to communicate effectively with its regional allies, who possess significant influence and leverage over the RSF, thereby increasing the chances of initiating negotiations.

Egypt enjoys a distinct bond with the Sudanese army, characterized by shared experiences and military strategies. By leveraging these relationships, Cairo has the potential to resolve the conflict by convening both opposing factions in Cairo and creating regional support to ensure a lasting peace.

The Cairo initiative received a positive response on social media from both conflicting parties. Additionally, all seven neighboring nations expressed their support for the initiative, which is considered as a significant accomplishment for the leadership in Egypt. With its strong political influence and regional power status, Cairo has the opportunity to leverage its relationships to advance towards a durable and extended ceasefire. The ultimate goal is to establish a comprehensive plan for political reform and ensure transparent elections. Consequently, it is crucial for Egypt to capitalize on the achievements of the Cairo summit and take further steps to promote stability in the region, which is of great importance to the country. 

 

Netanyahu defies Biden’s advice

The White House on Monday called it unfortunate that Israel's parliament ratified part of Benjamin Netanyahu's contested judicial overhaul, defying US President Joe Biden, and again urged the prime minister to seek a broad political consensus.

Biden's administration reiterated its long-standing concerns after Israel's Knesset approved an initial bill aimed at curbing the Supreme Court's powers, despite months of street protests and appeals from the US and other countries to hold off and negotiate with the opposition.

The vote, driven by Netanyahu's religious-nationalist coalition, showed the limits of Biden's ability to rein in the divisive judicial overhaul, even after bringing to bear pressure from Israel's closest ally.

"As a lifelong friend of Israel, President Biden has publicly and privately expressed his views that major changes in a democracy to be enduring must have as broad a consensus as possible," White House Press Secretary Karine Jean-Pierre said in a statement.

"It is unfortunate that the vote today took place with the slimmest possible majority," she added.

Opposition members of parliament boycotted the vote backed by Netanyahu's coalition, which is considered the most far-right in Israel's history.

Hours after the vote, Netanyahu said in a televised address the courts will remain independent and he hopes to reach agreement with the opposition on judicial changes by the end of November.

Biden, who has had frosty relations with Netanyahu compared with former President Donald Trump, finally invited the prime minister last week for an official visit later this year. But US officials have yet to set a date or concur with Israeli statements that they would meet at the White House in September.

Biden had delayed extending the invitation out of concern over Netanyahu's judicial overhaul plan and Jewish settlement construction in the occupied West Bank. The two leaders have occasionally clashed in public and in private.

Biden, a Democrat, has said Netanyahu must maintain Israel's independent judiciary as crucial to democracy, but some Republican lawmakers have accused him of meddling in Israeli domestic affairs.

However, there have been no signs Biden's criticism has hurt other key areas such as US-Israel military and intelligence cooperation.

"We have a long-standing friendship with the government of Israel that really transcends any one issue," US State Department spokesperson Matthew Miller told reporters.

At a regular White House briefing, Jean-Pierre repeated Biden's pledge that the US commitment to Israel remains iron-clad and gave no indication Washington was prepared to use billions of dollars in military aid to Israel as leverage.

"The United States will continue to support the efforts of President (Isaac) Herzog and other Israeli leaders as they seek to build a broader consensus through political dialogue," she said.

 

Crisis in Israel getting deeper

For the 29th week in a row, thousands of Israeli settlers demonstrated against the regime’s hardline cabinet, led by Benjamin Netanyahu in Tel Aviv, West al-Quds, Beersheva, Herzliya, and Kfar Saba.

In a last-ditch show of force against a disputed judicial reform plan pushed by Netanyahu, the demonstrators approached al-Quds while carrying Israeli flags, water bottles, and umbrellas to protect them from the sweltering sun. 

They then began to assemble close to the parliament and the Supreme Court.

After a multi-day march that started in Tel Aviv earlier this week, the demonstrators had reached the holy city.

Meanwhile, some 10,000 reservists have said they’ll halt their volunteer duty if the bill becomes a law.

“We all share a responsibility to stop the deep division, polarization and rift among the people,” the reservists said in a declaration whose signatories included 235 fighter pilots, 173 drone operators, and 85 commando soldiers.

They called on Netanyahu’s cabinet to arrive at a broad consensus, strengthen the trust of the people in the judicial system and maintain its independence.

The signatories stated that any legislation implemented unreasonably would undermine their willingness to continue risking their lives and would compel them to suspend their voluntary reserve service.

Towards the end of the day on Thursday, Netanyahu stated that he was still trying to reach an agreement with the opposition, primarily about the reasonability clause.

The goal of the judicial overhaul plan is to deny the Israeli Supreme Court the ability to overturn political decisions made by the ruling party. 

Additionally, it aims to give the government more control over the selection of judges for the court.

Supporters claim that the proposal will put a stop to decades of judicial overreach, while detractors say it will do away with important restraints on political authority.

Netanyahu, who is on trial for many counts of corruption, has also been accused by detractors of seeking to use the plan to overturn potential convictions.

Protesters have vowed to keep holding the monumental rallies until the cabinet decides against pushing through with the plan.

Those who support the plan claim that it brings some balance in the power that the various parts of the regime possess.

However, according to the plan’s detractors, approval would give the ruling class more authority to operate in an authoritarian manner.

According to pro-Netanyahu legislators, the new measure would be a much milder version of earlier bills that tried to almost completely pull down the Supreme Court’s authority to overturn presidential decisions. 

However, the opposition claims that the proposed measure would still provide room for corruption.

 

 

United States and Britain block Iran from hosting International Maritime Organization

Iranian Ports and Maritime Organization (PMO) has condemned the actions of the United States and UK Britain governments blocking Iran from hosting International Maritime Organization (IMO), a parallel event of World Maritime Day.

According to Reuters the United States has blocked Iran from hosting the annual meeting of the International Maritime Organization (IMO) in October this year.

Reacting to this action, Iranian Foreign Ministry spokesman Nasser Kanaani said on Friday that the US once again demonstrated its coercive and arrogant nature by hindering Iran to host the International Maritime Organization conference.

Strongly condemning the US move, Kanaani said the US move, supported by Britain, showed that there are no limits to the political exploitation of technical and specialized institutions of the United Nations by Washington, even if it tarnishes the international credibility of these organizations.

Following is the text of the PMO statement reacting to this action:

The Ports and Maritime Organization (PMO) as the duly authorized maritime administration of the Islamic Republic of Iran reacted against the actions of the Governments of the United States and Britain in preventing the Iranian hosting of the IMO Parallel Event of World Maritime Day in 2023, and declared in an official statement, “Such an action is a clear sign of desperation and pettiness of a few treacherous and oppressive governments, and will not weaken the resolve of the Iranian government and nation, and the port and maritime community thereof, to participate actively in IMO activities and progress toward sea-based economy.”

According to the official news website of the PMO, the above statements continued, “The hosting of the mentioned event in October 2023 was cancelled under the vain efforts of the US and British governments, and the support of a few western governments foolishly following the US government, under groundless accusations that Iran intended to jeopardize maritime safety and security.

Iran as an undisputed regional power continuously strives to promote maritime safety and security, and protect the marine environment, as confirmed and commended by the IMO in 2011.

The US and British governments have always resorted to threats, intimidation and even destructive operations, whether in territorial and regional waters or high seas, in order to violate the rights of this country to its vessels and cargos, against international laws, and disrupt such peaceful maritime commerce, while threatening safety and security of the seafarers.

It is our firm belief that such illegal, immoral and non-technical actions led by two oppressive governments, against an event of festivity and commendation of seafarers and maritime community, arises from their outrageous failures and fiascos in exerting economic pressure and sanctions against Iran, focusing on the petroleum and maritime industries, which further proves their evil intentions and desperation in the face of the honorable Iranian nation on one side, and their manipulation and abuse of international specialized and technical organizations for their political agendas on the other.

We are certain that such actions as a clear sign of desperation and pettiness of a few treacherous and oppressive governments will not weaken the resolve of the Iranian government and nation, and the port and maritime community thereof, to participate actively in IMO activities and progress toward sea-based economy.

 

 

India: When state fails people take law in their hands

Furious women set fire to the houses of two Indian men accused of parading two women naked in a state where months of ethnic clashes have left at least 120 dead.

A clip went viral Wednesday showing two women reported to be from the Kuki tribal group walking naked along a street while being jeered at and harassed by a mob reportedly from the Meitei community.

Violence erupted in the northeastern state of Manipur between the mainly Christian Kuki and the predominantly Hindu Meitei in May over job quotas and land rights, and intermittent clashes have continued since.

The emergence of footage of the women’s humiliation — which happened in May — triggered outrage across the country, with Prime Minister Narendra Modi saying it had “shamed India”.

Police arrested four suspects Thursday, and the same day a group of women activists put stacks of hay into the house of one of the men in Imphal and set it on fire.

As the fire raged, the women — from the Meitei community, like the accused — broke down the walls and roof of the house with sticks.

Another mob of women destroyed the house of a second accused, reducing it to ash and bars.

India is generally traditionalist, conservative and patriarchal, but the Meitei have a history of women’s activism, with women having a more prominent role in society than elsewhere.

The video of the naked women sparked protests across India on Friday, with demonstrators calling for the state’s chief minister to step down over the delay in taking action.

“Can normal people do these things?… Even cats, dogs, animal(s) never committed these kind of filthy act,” said one demonstrator near Imphal, where hundreds of women gathered to protest.

“This is not even how human beings treat other human,” she said.

India’s Supreme Court warned Modi’s government Thursday that if it does not act, “we will”.

Authorities in Manipur, led by the ruling Hindu-nationalist Bharatiya Janata Party (BJP), said police had taken action as soon as the video surfaced on social media.

A “thorough investigation” was under way, the state’s chief minister N Biren Singh tweeted Thursday.

“We will ensure strict action is taken against all the perpetrators, including considering the possibility of capital punishment,” he added.

The Manipur violence came after the Kuki community protested Meitei demands for reserved public job quotas and college admissions as a form of affirmative action, stoking long-held fears that they might also be allowed to acquire land in areas currently reserved for tribal groups.

Homes and churches were torched, with tens of thousands of people fleeing to government-run camps.

In a detailed report to the Supreme Court in June, civil society group Manipur Tribal Forum said many gruesome acts of violence, including rape and beheading, had not been investigated by state authorities.

Footage of one such incident was shared on Twitter Thursday, reportedly showing an aide to a BJP lawmaker in the state holding a victim’s severed head, before it disappeared from the platform within hours.

 

India-ADNOC sign agreement for supply of LNG

ADNOC Gas (ADNOC Gas), a world-class integrated gas processing company, has signed a 14-year supply agreement with Indian Oil Corporation (IOCL) for the export of up to 1.2 million metric tons per annum (mmtpa) of liquefied natural gas (LNG) to India’s largest integrated and diversified energy company.

The agreement, valued in the range of US$7 billion to US$9 billion over its 14-year term, signifies a major step forward in the partnership between the two industry leaders.

The landmark deal marks another significant milestone for ADNOC Gas as it expands its global reach, reinforcing its position as a global LNG export partner of choice, and reaffirming IOCL as its key strategic partner in the LNG market.

Commenting on the agreement, Ahmed Alebri, Chief Executive Officer of ADNOC Gas said, “We are pleased to announce this long-term LNG sale, further strengthening the long-standing partnership with IOCL. We look forward to expanding our collaboration and take pride in the knowledge that ADNOC Gas’ LNG exports will further support the development of IOCL and contribute to India’s growth story.”

Under the terms of the agreement, ADNOC Gas will deliver up to 1.2 mmtpa of LNG to IOCL to India. The deal serves as a testament to ADNOC Gas’ ability to meet the growing global demand for LNG, a critical fuel in the energy transition.

 

G20 members fail to reach agreement on cutting fossil oil use

According to Reuters, the Group of 20 (G20) major economies meeting in India failed on Saturday to reach consensus on phasing down fossil fuels following objections by some producer nations.

Major fossil fuel producers Saudi Arabia, Russia, China, South Africa and Indonesia are all known to oppose the goal of tripling renewable energy capacity this decade.

Scientists and campaigners are exasperated by international bodies' foot-dragging on action to curb global warming even as extreme weather from China to the United States underlines the climate crisis facing the world.

The G20 member countries together account for over three-quarters of global emissions and gross domestic product, and a cumulative effort by the group to decarbonize is crucial in the global fight against climate change.

However, disagreements including the intended tripling of renewable energy capacities by 2030 resulted in officials issuing an outcome statement and a chair summary instead of a joint communiqué at the end of their four-day meeting in Bambolim, in the Indian coastal state of Goa.

A joint communiqué will be issued when there is complete agreement between member nations on all issues.

"We had a complete agreement on 22 out of 29 paragraphs, and seven paragraphs constitute the Chair summary," Indian Power Minister R.K. Singh said.

Sections urging developed countries to deliver on the goal of jointly mobilizing US$100 billion per year for climate action in developing economies for 2020-25, and description of the war in Ukraine, also eluded consensus.

Fossil fuel use became a lightning rod in day-long discussions, but officials failed to reach consensus over curbing unabated use and argued over the language to describe the pathway to cut emissions.

A draft late on Friday reviewed by Reuters read, "The importance of making efforts towards phase down of unabated fossil fuels, in line with different national circumstances, was emphasized."

However, the chair statement released on Saturday evening included concerns from some member nations which were missing in the Friday draft, noting that "others had different views on the matter that abatement and removal technologies will address such concerns".

Singh, in a press briefing after the conference, said some countries wanted to use carbon capture instead of a phase down of fossil fuels. He did not name the countries.

United States picks first woman to lead Navy

US President Joe Biden on Friday picked Adm. Lisa Franchetti to be the next chief of naval operations after Defense Secretary Lloyd Austin passed over her when recommending for the role.

The promotion of Franchetti, who has been vice chief of naval operations since last fall, will be the first time a woman has the spot of the Navy’s highest-ranking officer and she will be the first female member of the Joint Chiefs of Staff.

Biden, in announcing his nomination, noted that Franchetti has already made history as the second woman ever to achieve the rank of four-star admiral in the United States Navy. She would replace current Chief of Naval Operations Adm. Mike Gilday, whose four-year term is over this fall.  

Austin in June reportedly recommended that Adm. Samuel Paparo become the next chief of naval operations despite Franchetti being considered the front-runner for the top position as the Navy’s No. 2 officer. Biden on Friday nominated Paparo for commander of Indo-Pacific Command.

The president also nominated Vice Adm. James Kilby for vice chief of naval operations and Vice Adm. Stephen “Web” Koehler for commander of US Pacific Fleet.

He also urged the Senate to quickly confirm these nominations and the other pending military nominations that have been held up by Sen. Tommy Tuberville. Tuberville is blocking the Senate from moving on military promotions in protest of the Pentagon’s abortion policy, which allows for paid leave and travel reimbursement for abortions. 

“It has long been an article of faith in this country that supporting our service members and their families, and providing for the strength of our national defense, transcends politics. What Senator Tuberville is doing is not only wrong — it is dangerous,” Biden said Friday.

Biden also called out Republicans in Senate for not stopping Tuberville from continuing the hold and said the Alabama Republican is risking our ability to ensure that the United States Armed Forces remain the greatest fighting force in the history of the world.