India and Russia to tap full potential of economic relationship

The Indian Ministry of External Affairs said in a statement that the 24th India-Russia Inter-governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation was held in New Delhi on April 17-18. Both the countries agreed to unlock full potential of bilateral trade and economic relationship.

Indian External Affairs Minister S. Jaishankar and Deputy Prime Minister and Minister of Trade and Industry of Russia Denis Manturov, who arrived in Indian capital Monday heading a high-level delegation comprising senior officials from several Russian ministries, co-chaired the 24th session of the Inter-governmental commission.

The Inter-governmental Commission, which is a mechanism for monitoring bilateral progress of trade and economic cooperation between the two countries, agreed to address the trade deficit and market access issues.

The visiting Russian deputy PM also met Indian Commerce and Industry Minister Piyush Goyal, Finance Minister Nirmala Sitharaman and National Security Advisor Ajit Doval.

The India-Russia Business Dialogue was also held on Monday with participation of key businesses from both the countries enabling Jaishankar, Manturov and business leaders to engage and drive the momentum of shared priorities of deeper and wider bilateral commercial cooperation.

Though Indian authorities claim that the visit is in continuation of the regular high-level dialogue between the two nations, it assumes greater importance as New Delhi’s closer ties with Russia even while the latter is engaged in a bloody battle in Ukraine is seen with caution in western capitals.

India has so far resisted Western pressure to condemn Russian aggression and instead expressed concern over the humanitarian crisis arising out of the war and called to resolve all differences through dialogue and diplomatic means.

Jaishankar has said that discussions are on over the payments issue with Russia, referring to the trade in local currencies (rupee-ruble).

“There are discussions on the payments issue under the scheme of international trade settlement in Indian rupees through the special rupee vostro account system.

“And I think the payments issue clearly needs to be worked through between our systems. It is something we will be discussing,” said Jaishankar at the India-Russia Business Dialogue.

The event was organized by the Ministry of External Affairs in partnership with FICCI and the Business Council for Cooperation with India (BCCI). India and Russia have a Special and Privileged Strategic Partnership.

“For the period between April 2022 and February 2023, bilateral trade was about $45 billion and is expected to grow,” Jaishankar added.

Russia has said that within the framework of the inter-governmental dialogue, they propose to consider the possibility of the wide use of national currencies.

Meanwhile, Russia also wants to take its partnership with India to another level by having a Free Trade Agreement (FTA).

“Together with the Eurasian Economic Commission, we are looking forward to intensifying negotiations on the FTA with India.

“Additionally, we are working on signing the Russia-India Bilateral Agreement for the Promotion and Protection of Investments,” said Manturov.

To protect the principles of free trade, Russia has undertaken a set of measures which includes permitting import of original goods without consent of the rights’ owners from unfriendly countries — so-called parallel imports.

“Besides, we’ve launched the program of preferential loans and insurance of Russian importers towards procurement of priority products from foreign countries.

“Among the most demanded goods under this program are components and equipment for road construction, products of chemical and pharmaceutical industries. I am sure that this will create opportunities for Indian companies to increase their supplies to Russia,” Manturov added.

Russia has also invited Indian companies who are keen on joint projects to consider ‘cluster investment platform’.

“This provides preferential credits for designing and manufacturing of priority products, subsidies for pilot batches of goods, insurance premium and income tax preferences.

“As far as certain components and technologies are concerned we will definitely rely on trusted foreign partners. We are working in this manner with our Indian friends for decades,” Manturov added.

Marupov also met National Security Advisor Ajit Doval and discussed a wide range of issues under the India-Russia Strategic Partnership.

Iran to expand trade ties with Bangladesh

Iranian President Ebrahim Raisi urged the growth of commercial and trade links with Bangladesh while reiterating his administration’s commitment to fostering connections with other Muslim nations.

In a phone conversation with Bangladeshi Prime Minister Sheikh Hasina on Monday, Raisi emphasized the need for Islamic nations to unite and support Palestine while denouncing the Zionist regime’s aggressions, particularly the brutal Israeli actions in Al-Aqsa Mosque and against the fasting Palestinian worshippers.

Raisi expressed congratulations to the government and the Muslim people of Bangladesh on Eid-al-Fitr and stated that Iran’s foreign policy is built on bolstering ties with all nations, particularly those in the Islamic world.

He also expressed optimism for strong ties between Bangladesh and Iran, particularly for the advancement of economic and commercial cooperation.

Sheikh Hasina, for her part, vehemently denounced the criminal activities of the Zionist regime against the Palestinian people, saying, “Supporting the oppressed people of Palestine and condemning the aggressions of the Zionist regime is the fixed position of the government and the people of Bangladesh.”

She stressed the need for improving connections with Iran, particularly in the commercial and economic spheres, as well as regional cooperation.

 

Saudi Foreign Minister Meets Syrian President

Syrian President Bashar Al-Assad met with Saudi Foreign Minister Prince Faisal Bin Farhan on Tuesday. The Saudi minister is visiting Damascus currently in a significant step towards ending Syria’s decade-long regional isolation.

Al-Assad and Prince Faisal discussed the necessary steps to achieve a comprehensive political settlement to the Syrian crisis to end all its repercussions, achieve national reconciliation, and contribute to the return of Syria to its Arab surroundings.

They also discussed efforts made to reach a politician solution of the Syrian crisis that preserves the unity, security, and stability of Syria.

The Saudi minister stressed to the Syrian president the importance of providing a suitable environment for the arrival of aid to all regions in Syria, and preparing the necessary conditions for the return of the Syrian refugees and displaced persons to their homeland.

He also called for taking more measures that would contribute to stabilizing the situation in Syrian lands.

Prince Faisal conveyed the greetings of Custodian of the Two Holy Mosques King Salman and Crown Prince and Prime Minister Mohammed Bin Salman to the Syrian president, and their best wishes to the government and people of Syria to have security and stability.

The Syrian president extended his greetings and appreciation to Custodian of the Two Holy Mosques and the Crown Prince and for the government and people of Saudi Arabia.

The reception was attended by the Undersecretary of the Ministry of Foreign Affairs for Political Affairs Dr. Saud Al-Sati and the Director General of Prince Faisal office Abdul Rahman Al-Dawood.

Saudi Foreign Ministry said the visit comes within the framework of Saudi Arabia's keenness and interest to reach a political solution to the Syrian crisis that ends all its repercussions and preserves Syria's unity, security, stability, and Arab identity. It also aims to restore Syria to its Arab surroundings, in a way that achieves the good of its people.

Prince Faisal was received upon his arrival at Damascus International Airport by the Minister of Presidency Affairs Mansour Azzam.

Last Friday, Saudi Arabia hosted a meeting of the GCC countries, Egypt, Jordan and Iraq, to discuss the Syrian crises. They called for unity in Syria and its return to the Arab fold.

They stressed the need to preserve Syria’s sovereignty by ending the presence of militias, emphasizing that the political solution is the only solution to the Syrian crisis.

Bangladesh to repay Russian nuclear power plant loan in Chinese yuan

Reportedly, Bangladesh will repay a US$318 million loan owed to the state-owned Russian firm Rosatom in Chinese yuan so that construction can continue on a nuclear power plant in the country.

Dhaka had been unable to make the payment in US dollars since Russia’s February 2022 invasion of Ukraine. The US and European sanctions barred Moscow from accessing the dollar-denominated international banking system.

Moscow initially wanted Dhaka to make the payment in rubles for the US$13 billion Rooppur plant, said a Rosatom official on the condition of anonymity.

“Both countries agreed to make transactions through yuan,” the official told BenarNews, adding the decision was made on Thursday.

“The ruble created some complications as it is not an official currency for Bangladesh’s foreign payments.”

Mezbaul Haque, a spokesman for the nation’s central bank, Bangladesh Bank, told BenarNews that the yuan is one of five official currencies for foreign exchange. The others are the US dollar, the British pound, the euro and the yen.

Uttam Kumar Karmaker, the head of the European affairs wing of the Bangladeshi Finance Ministry’s economic relations division, told The Washington Post that the transaction was yet to be completed because payment details needed to be resolved.

Russia is constructing as well as financing 90% of the total cost for the Rooppur Nuclear Power Plant (RNPP) in Pabna, a district in northwestern Bangladesh. In late 2017, the Russian state-run nuclear energy firm Rosatom began building the plant, which is expected to be ready in mid-2023.

Dhaka’s decision to make the loan repayment in yuan was a positive one, a former lead economist at the World Bank’s Dhaka office said on Monday.

“The decision is a timely one for both Dhaka and Moscow, as over 90% of the work on the project has been completed,” Zahid Hussain told BenarNews.

Observers had anticipated delays at the plant since February 2022 when the Russia-Ukraine conflict began, although Bangladesh Prime Minister Sheikh Hasina said last year that Dhaka would not stop doing business with Moscow.

Still, Bangladesh blocked a Russian ship from entering a local port just before Christmas because of  US sanctions on the vessel linked to Moscow’s war in Ukraine. The ship was carrying cargo for the Rooppur plant.

Then in January, Bangladesh banned the entry of nearly 70 US-sanctioned Russian ships.

Russia was not happy, and a month later summoned Bangladesh’s envoy to Moscow and said the ban did not bode well for the cooperation between the two nations.

In its statement, the Russian Foreign Ministry spoke obliquely of the help it is providing Bangladesh, saying that blocking its ships may have a negative impact on the prospects for our cooperation in various fields.

Hasina counts Russia as one of her strongest allies. The ties between her Awami League party and the Russian state date to Bangladesh’s war of independence in 1971, which the Soviet Union supported.

Immediately after she returned to power following the 2008 election, Hasina signed a treaty with Russia to build the Rooppur nuclear power plant. The costliest infrastructure project ever undertaken in Bangladesh, it has solidified ties between the two countries.

A Rosatom official told BenarNews in February that the Russian firm planned to send some light equipment for the plant via air.

“Most of the heavy materials have already been sent to the site,” said the official in Bangladesh, who asked not be named because he was not allowed to talk to the media.

“If needed, the company would use such vessels which are out of sanctions, in the future,” the official said to BenarNews.

 

 

 

 

 

 

Chinese economy grows by 4.5% in first quarter

Chinese economy grew by 4.5% in the first quarter of 2023 amid Beijing’s intensive efforts to consolidate the post-pandemic recovery, according to South China Morning Post.

This was above the 4% growth predicted by Wind, a Chinese data provider, and up from the 2.9% growth seen in the fourth quarter of last year.

After its growth slowed to the second worst in nearly five decades at 3% last year, China set a modest growth target for 2023 at around 5%.

All other major economic indicators, released by the National Bureau of Statistics on Tuesday, showed recovery may still be uneven. Retail sales up by 10.6% last month from a year ago, rising from 3.5% growth in combined figures for January and February.

Industrial production, a gauge of activity in the manufacturing, mining and utilities sectors, rose by 3.9%YoY in March.

But fixed-asset investment – a conventional tool for Beijing to drive up growth – rose by just 5.1%YoY in the first three months of 2023, down from a rise of 5.5% in the first two months of the year.

Beijing has also pledged to shore up trade as a pillar for the overall recovery this year and exports surprised the market with strong growth in March despite signs of weak external demand.

The economic recovery may still be uneven as low price indices triggered warnings about the risks of deflation and inadequate demand, while pressure to create enough jobs continued to persist.

The urban surveyed jobless rate, meanwhile, stood at 5.3% in March, down from 5.6% in February.

The jobless rate for the 16-24 age group also remained at an elevated level of 19.6% in March, up from 18.1% in February.

 

 

 

Tehran to host Petrochemical Forum

Tehran will host the 14th edition of Iran Petrochemical Forum (IPF) at the IRIB International Conference Hall on May 1-2.

The 14th Iran Petrochemical Forum is a suitable ground for cooperation between active domestic and foreign companies so that the latest developments, plans and new investment opportunities for the development of the country's petrochemical industry are provided to the participants.

Hassan Abbas-Zadeh said during this international event, a large number of specialized meetings will be held, and a strategic meeting is dedicated to the members of the BRICS countries (Brazil, Russia, India, China, and South Africa) with the aim of examining the future cooperation of the Iranian petrochemical industry in the markets of the BRICS member countries, highlighting that for the first time, member countries of the BRICS group will attend the international conference of the Iranian petrochemical industry.

Other important event of this conference is the holding of special meetings with the presence of ambassadors and political and commercial representatives of Iran in order to examine the development of energy diplomacy, empowering the petrochemical industry with the aim of preventing crude sales (selling final products instead), and self-sufficiency in this industry, the NPC director further noted.

The petrochemical industry plays a crucial role in Iran’s non-oil economy, as petrochemical export is the second-largest source of revenue for the country after crude oil. Petrochemical exports already constitute nearly 33 percent of the country’s non-oil exports.

According to NPC Managing Director Morteza Shahmirzaei, the petrochemical industry is a value and job-creating industry, which has no risk.

The official has stated that currently, the petrochemical sector has the highest added value in the oil industry chain.

He has announced that marketing Iran’s petrochemical products throughout the world is on the agenda of the NPC’s activity, and mentioned completing the production value chain as another major program of the company.

“As we have previously announced, we will fully provide all the capacity of the National Petrochemical Company to the private sector and investors so that the plan to complete the value chain of the petrochemical industry will be realized”, he noted.

 

FBI makes arrests over alleged secret Chinese police stations in New York

According to Saudi Gazette, US prosecutors have arrested two men in New York for allegedly operating a Chinese secret police station in Manhattan’s Chinatown neighborhood.

Liu Jianwang, 61, and Chen Jinping, 59, both New York City residents, face charges of conspiring to act as agents for China and obstruction of justice.

China has previously denied operating the stations, calling them “service centers” for nationals overseas.

Jianwang and Jinping worked together to establish the first overseas police station in the United States on behalf of China’s Ministry of Public Security, the US Department of Justice alleged on Monday.

The outpost was closed in the fall of 2022, the department said, after those involved became aware of an FBI investigation into the station.

“This prosecution reveals the Chinese government’s flagrant violation of our nation’s sovereignty by establishing a secret police station in the middle of New York City,” said Breon Pearce, the top prosecutor in Brooklyn.

The stations are believed to be among at least 100 operating across the globe in 53 countries, including the UK and the Netherlands. And last month, Canada’s federal government announced an investigation into two Montreal-area sites thought to be police outposts.

“The PRC’s actions go far beyond the bounds of acceptable nation-state conduct. We will resolutely defend the freedoms of all those living in our country from the threat of authoritarian repression,” said Assistant Attorney General Matthew Olsen, from the Justice Department’s National Security Division.

According to prosecutors, Jianwang was closely connected to Chinese law enforcement, and was enlisted to help China with repressive activities in the US beginning in 2015, including harassing Chinese dissidents.

In 2018, he allegedly participated in efforts to push a purported PRC fugitive to return to China, including repeated harassment and threats to the individual and his family, living in China and the US.

And prosecutors said he was also enlisted to locate a pro-democracy activist in China. Jiangwang denied these actions when confronted by US authorities.

If convicted, both Jianwang and Jinping face up to 25 years in prison.

Chinese embassies in the US and Canada have said the locations are overseas service stations’ opened during the pandemic to assist nationals abroad with driver’s licensee renewal and similar matters.

But human rights groups have accused China of using the outposts to threaten and monitor Chinese nationals abroad.

FBI director Christopher Wray said last November that his agency was monitoring reports of such stations, calling them a real problem.

“To me, it is outrageous to think that the Chinese police would attempt to set up shop, you know, in New York, let’s say, without proper coordination,” Wray said.

“It violates sovereignty and circumvents standard judicial and law enforcement cooperation processes.”