Tag: OILG

Indian PM Modi wraps up Washington trip with appeal to tech CEOs

WASHINGTON, June 23 (Reuters) – Indian Prime Minister Narendra Modi met with U.S. and Indian technology executives in Washington on Friday, the final day of a state visit where he agreed new defense and technology cooperation and addressed challenges posed by China.

U.S. President Joe Biden rolled out the red carpet for Modi on Thursday, declaring after about 2-1/2 hours of talks that their countries’ economic relationship was “booming.” Trade has more than doubled over the past decade.

Biden and Modi gathered with CEOs including Apple’s (AAPL.O) Tim Cook, Google’s (GOOGL.O) Sundar Pichai and Microsoft’s (MSFT.O) Satya Nadella.

Also present were Sam Altman of OpenAI, NASA astronaut Sunita Williams, and Indian tech leaders including Anand Mahindra, chairman of Mahindra Group, and Mukesh Ambani, chairman of Reliance Industries, the White House said.

“Our partnership between India and the United States will go a long way, in my view, to define what the 21st century looks like,” Biden told the group, adding that technological cooperation would be a big part of that partnership.

Observing that there were a variety of tech companies represented at the meeting from startups to well established firms, Modi said: “Both of them are working together to create a new world.”

Modi, who has appealed to global companies to “Make in India,” will also address business leaders at the Kennedy Center for Performing Arts.

The CEOs of top American companies, including FedEx (FDX.N), MasterCard (MA.N) and Adobe (ADBE.O), are expected to be among the 1,200 participants.

NOT ‘ABOUT CHINA’

The backdrop to Modi’s visit is the Biden administration’s attempts to draw India, the world’s most populous country at 1.4 billion and its fifth-largest economy, closer amid its growing geopolitical rivalry with Beijing.

Modi did not address China directly during the visit, and Biden only mentioned China in response to a reporter’s question, but a joint statement included a pointed reference to the East and South China Seas, where China has territorial disputes with its neighbors.

Farwa Aamer, director for South Asia at the Asia Society Policy Institute, in an analysis note described that as “a clear signal of unity and determination to preserve stability and peace in the region.”

Alongside agreements to sell weapons to India and share with it sensitive military technology, announcements this week included several investments from U.S.-firms aimed at spurring semiconductor manufacturing in India and lowering its dependence on China for electronics.

White House national security spokesperson John Kirby said the challenges presented by China to both Washington and New Delhi were on the agenda, but insisted the visit “wasn’t about China.”

“This wasn’t about leveraging India to be some sort of counterweight. India is a sovereign, independent state,” Kirby said at a news briefing, adding that Washington welcomes India becoming “an increasing exporter of security” in the Indo-Pacific.

“There’s a lot we can do in the security front together. And that’s really what we’re focused on,” Kirby said.

Some political analysts question India’s willingness to stand up to Beijing over Taiwan and other issues, however. Washington has also been frustrated by India’s close ties with Russia while Moscow wages war in Ukraine.

DIASPORA TIES

Modi attended a lunch on Friday at the State Department with Vice President Kamala Harris, the first Asian American to hold the No. 2 position in the White House, and Secretary of State Antony Blinken.

In a toast, Harris spoke of her Indian-born late mother, Shyamala Gopalan, who came to the United States at age 19 and became a leading breast cancer researcher.

“I think about it in the context of the millions of Indian students who have come to the United States since, to collaborate with American researchers to solve the challenges of our time and to reach new frontiers,” Harris said.

Modi praised Gopalan for keeping India “close to her heart” despite the distance to her new home, and called Harris “really inspiring.”

On Friday evening, Modi will address members of the Indian diaspora, many of whom have turned out at events during the visit to enthusiastically fete him, at times chanting “Modi! Modi! Modi!” despite protests from others.

Activists said Biden had failed to strongly call out what they describe as India’s deteriorating human rights record under Modi, citing allegations of abuse of Indian dissidents and minorities, especially Muslims. Modi leads the Hindu nationalist Bharatiya Janata Party (BJP) and has held power since 2014.

Biden said he had a “straightforward” discussion with Modi about issues including human rights, but U.S. officials emphasize that it is vital for Washington’s national security and economic prosperity to engage with a rising India.

Asked on Thursday what he would do to improve the rights of minorities including Muslims, Modi insisted “there is no space for any discrimination” in his government.

“There is no end to data that shows Modi is lying about minority abuse in India, and much of it can be found in the State Department’s own India country reports, which are scathing on human rights,” said Sunita Viswanath, co-founder Hindus for Human Rights, an advocacy group.

Reporting by Steve Holland, Simon Lewis and Jeff Mason; additional reporting by Trevor Hunnicutt, Doina Chiacu, David Brunnstrom and Kanishka Singh; Editing by Don Durfee and Grant McCool

Our Standards: The Thomson Reuters Trust Principles.

Jeff Mason

Thomson Reuters

Jeff Mason is a White House Correspondent for Reuters. He has covered the presidencies of Barack Obama, Donald Trump and Joe Biden and the presidential campaigns of Biden, Trump, Obama, Hillary Clinton and John McCain. He served as president of the White House Correspondents’ Association in 2016-2017, leading the press corps in advocating for press freedom in the early days of the Trump administration. His and the WHCA’s work was recognized with Deutsche Welle’s “Freedom of Speech Award.” Jeff has asked pointed questions of domestic and foreign leaders, including Russian President Vladimir Putin and North Korea’s Kim Jong Un. He is a winner of the WHCA’s “Excellence in Presidential News Coverage Under Deadline Pressure” award and co-winner of the Association for Business Journalists’ “Breaking News” award. Jeff began his career in Frankfurt, Germany as a business reporter before being posted to Brussels, Belgium, where he covered the European Union. Jeff appears regularly on television and radio and teaches political journalism at Georgetown University. He is a graduate of Northwestern University’s Medill School of Journalism and a former Fulbright scholar.

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June 23, 2023
Gazprom to send 40.3 million cubic metres of gas to Europe via Ukraine on Saturday

MOSCOW, June 3 (Reuters) – Russia’s Gazprom (GAZP.MM) will send 40.3 million cubic metres (mcm) of gas to Europe via Ukraine on Saturday, the company said, down from 40.6 mcm on Friday.

Reporting by Reuters
Editing by Mark Potter

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June 3, 2023
Exclusive: Venezuela’s oil tankers at risk of sinking, fires, spills, report finds

PUNTO FIJO, May 4 (Reuters) – More than half of the 22 oil tankers in Venezuela’s fleet are so run down that they should be immediately repaired or taken out of service, according to an internal report from state-run oil company PDVSA that was shared exclusively with Reuters.

The report by PDVSA’s maritime branch, entitled “Critical deficiencies and risks of PDV Marina’s tanker fleet,” said years of deferred maintenance had left the entire fleet with “low levels of reliability,” at risk of spills, sinking, fires, collisions or flooding.

“The ships currently lack seaworthiness classification and certifications by flag nations,” the report said.

PDVSA and PDV Marina did not respond to requests for comment.

The report, dated March 2023, was among eight documents shared with Reuters describing the state of PDVSA’s tanker fleet from the oil company’s corporate office, trading division and maritime branch, as well as Venezuela’s maritime authority. The existence of the documents has not been previously reported.

Dated from Jan. 2022 to March this year, the documents detail the condition of the company’s tankers; the costs of chartering third-party vessels and the status of shipbuilding contracts with companies in Argentina and Iran.

The deterioration of the fleet has forced PDVSA to charter tankers to move its oil, which provides the bulk of Venezuela’s hard currency, the analysis by PDVSA’s trade division said.

PDVSA and the oil ministry did not respond to requests for comment.

The reports were prepared amid a wide-ranging anti-corruption probe ordered by Venezuela’s President Nicolas Maduro last October after the discovery of billions of dollars in missing payments for petroleum exports. More than 60 people have been arrested and PDVSA’s chief executive and the nation’s oil minister have been replaced.

The report from PDV Marina recommended withdrawing five tankers from active use; sending seven to shipyards for major repairs and installing transponders, fire extinguishers and communication equipment in others. No actions have been taken as the audit on the company’s operations continues.

Five of PDVSA’s tankers are at least 30 years old, past their recommended lifespan, according to the PDV Marina report. The last major maintenance work on the fleet was five years ago, the report said.

“The tanker fleet is showing a decline in the quality of its operations due to advanced physical deterioration, which implies higher maintenance and repair costs. Planning for sending the tankers to dry docks has been very affected by lack of payment to shipyards and providers,” the PDV Marina report said.

Reuters has previously reported on an increase in tanker collisions, spill risks and fires in Venezuela.

PDVSA leased 41 vessels last year, the documents said, paying about double the market rate, between $14,000 and $36,500 per day, to tanker owners willing to work with Venezuela despite U.S. sanctions imposed in 2019.

DELAYED SHIPS

At least four tankers ordered from foreign shipyards have been held up because of payment delays, cost increases and sanctions, according to the documents reviewed by Reuters.

The audits ordered by PDVSA’s new CEO Pedro Tellechea as part of Maduro’s anti-corruption probe could bring further delays, a PDVSA executive said.

“All contracts are frozen,” the executive said on condition of anonymity due to fear of retaliation. PDVSA’s legal and supply and trade departments are asking PDV Marina for documentation on the contracts, he added.

Venezuela has paid shipyards in Iran and Argentina at least $300 million for six new vessels ordered as far back as 2005.

It has taken delivery of only two of them, according to the documents.

PDVSA has paid almost 80% of the $160 million due for two tankers from Rio Santiago shipyard in Argentina, the documents showed.

Rio Santiago said it was not authorized to give information about that particular contract.

In addition, PDVSA paid almost 157 million euros (about $173 million), or 63% of a 248 million euros contract (about $272 million) to U.S.-sanctioned Iran Marine Industrial Company (Sadra) for four tankers, according to the documents.

Two of the four vessels were delivered after payment delays, difficulties with parts supplies and problems with insurance and certifications, according to the documents.

The payment delays generated extra costs for demurrage, the documents said.

Sadra did not reply to a request for comment.

Reporting by Mircely Guanipa; Additional reporting by Marianna Parraga in Houston, Eliana Raszewski in Buenos Aires and Parisa Hafezi in Dubai; Editing by Gary McWilliams and Suzanne Goldenberg

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May 4, 2023
Sudan factions agree to 72-hour ceasefire as foreigners are evacuated
At least 427 people killed since fighting began on April 15

Foreign nations fly military planes to extract citizens

U.N.’s Guterres urges Security Council to intervene
KHARTOUM, April 24 (Reuters) – Sudan’s warring factions agreed to a 72-hour ceasefire starting on Tuesday, while Western, Arab and Asian nations raced to extract their citizens from the country.

The Sudan Armed Forces (SAF) said the U.S. and Saudi Arabia mediated the truce. U.S. Secretary of State Anthony Blinken announced the agreement first and said it followed two days of intense negotiations. The two sides have not abided by several previous temporary truce deals.

Fighting erupted between the SAF and Rapid Support Forces (RSF) paramilitary group on April 15 and has killed at least 427 people, knocked out hospitals and other services, and turned residential areas into war zones.

“During this period, the United States urges the SAF and RSF to immediately and fully uphold the ceasefire,” Blinken said in a statement.

He said the U.S. would coordinate with regional, international and Sudanese civilian interests to create a committee that would oversee work on a permanent ceasefire and humanitarian arrangements.

The RSF confirmed in Khartoum that it had agreed to the ceasefire, starting at midnight, to facilitate humanitarian efforts. “We affirm our commitment to a complete ceasefire during the truce period”, the RSF said.

The SAF said on its Facebook page that it also agreed to the truce deal. A coalition of Sudanese civil society groups that had been part of negotiations on a transition to democracy welcomed the news.

Ahead of the evening truce announcement, air strikes and ground fighting shook Omdurman, one of three adjacent cities in the capital region, and there were also clashes in capital Khartoum, a Reuters reporter said.

Dark smoke enveloped the sky near the international airport in central Khartoum, adjacent to army headquarters, and booms of artillery fire rattled the surroundings.

U.N. Secretary-General Antonio Guterres said that the violence in a country that flanks the Red Sea, Horn of Africa and Sahel regions “risks a catastrophic conflagration … that could engulf the whole region and beyond”.

The Security Council planned a meeting on Sudan on Tuesday.

THOUSANDS FLEE

Tens of thousands of people including Sudanese and citizens from neighbouring countries have fled in the past few days, to Egypt, Chad and South Sudan, despite instability and difficult living conditions there.

[1/3] Spanish military plane and military vehicles are seen departing on tarmac as Spanish diplomatic personnel and citizens are evacuated, in Khartoum, Sudan, April 23. Spanish Defence Ministry via REUTERS

Foreign governments have been working to bring their nationals to safety. One 65-vehicle convoy took dozens of children, along with hundreds of diplomats and aid workers, on an 800-km (500-mile), 35-hour journey in searing heat from Khartoum to Port Sudan on the Red Sea.

For those remaining in Africa’s third-largest country, where a third of its 46 million people needed aid even before the violence, the situation was increasingly bleak.

There were acute shortages of food, clean water, medicines and fuel and limited communications and electricity, with prices skyrocketing, said deputy U.N. spokesperson Farhan Haq.

He cited reports of looting of humanitarian supplies and said “intense fighting” in Khartoum as well as in Northern, Blue Nile, North Kordofan and Darfur states was hindering relief operations.

Facing attacks, aid organisations were among those withdrawing staff, and the World Food Programme suspended its food distribution mission, one of the largest in the world.

“The quick evacuation of Westerners means that the country is on the brink of collapse. But we expect a greater role from them in supporting stability by pressuring the two sides to stop the war,” said Suleiman Awad, a 43-year-old academic in Omdurman.

Several nations, including Canada, France, Poland, Switzerland and the United States, have halted embassy operations until further notice.

Fighting calmed enough over the weekend for the United States and Britain to get embassy staff out, triggering a rush of evacuations of hundreds of foreign nationals by countries ranging from Gulf Arab states to Russia, Japan and South Korea.

Japan said all its citizens who wished to leave Sudan had been evacuated. Paris said it had arranged evacuations of 491 people, including 196 French citizens and others from 36 other nationalities. A French warship was heading for Port Sudan to pick up more evacuees.

Four German air force planes evacuated more than 400 people of various nationalities from Sudan as of Monday, while the Saudi foreign ministry said on Monday it evacuated 356 people, including 101 Saudis and people of 26 other nationalities.

Several countries sent military planes from Djibouti. Families with children crowded into Spanish and French military transport aircraft, while a group of nuns were among the evacuees on an Italian plane, photographs showed.

The U.N. secretary general urged the 15 members of the Security Council to use their clout to return Sudan to the path of democratic transition.

Islamist autocrat Omar al-Bashir was overthrown in a popular uprising in 2019, and the army and RSF jointly mounted a 2021 military coup. But two years later, they fell out during negotiations to integrate and form a civilian government.

Reporting by Sabine Siebold and Martin Schlicht in Berlin and Simon Johnson in Stockholm; Writing by Michael Georgy and Toby Chopra

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April 24, 2023
Exclusive: India’s Bank of Baroda stops clearing payment for above-cap Russian oil – sources

NEW DELHI, April 4 (Reuters) – India’s Bank of Baroda (BOB.NS) has stopped clearing payments for Russian oil sold above the price cap set by the West from this month, three sources with direct knowledge of the matter said, a move that could expedite transition to a rupee trade mechanism.

Some Indian refiners were paying in the United Arab Emirates dirham currency for Russian low-sulphur crude priced above the $60 a barrel cap using Bank of Baroda, mainly to Dubai-based traders, sources said.

The Group of Seven economies, the European Union and Australia, set the price cap late last year to bar Western services and shipping from trading Russian oil unless sold at an enforced low price to deprive Moscow of funds for its Ukraine war.

“Bank of Baroda is extremely cautious in settling payments for Russian oil bought (at levels) above the price cap,” one of the sources said.

“They have told us no for settling payments for above-cap barrels,” the person said.

The state-run lender told refiners last month that it would not settle payment from Russian barrels bought above the price cap, the three sources said.

Bank of Baroda did not respond to requests for comment from Reuters.

Before the Ukraine war, Indian refiners rarely bought oil from Russia due to higher freight costs. After Western sanctions on Moscow for its invasion of Ukraine, Indian refiners have been gorging on discounted Russian oil.

Russia has replaced Iraq as the top oil supplier to India in the last few months, data from trade sources showed.

Sources anticipate that prices of Russian sweet crude such as Sokol and ESPO Blend, which was sold near $60 a barrel in recent weeks, could breach the price cap due to a sharp spike in global oil prices triggered by Sunday’s OPEC+ decision to cut output.

Some refiners, mainly private operators, have been clearing payments in dirhams for Russian crude through private lender Axis Bank (AXBK.NS), sources told Reuters last month. It was not clear if Axis Bank had also stopped settling trades for Russian oil sold above the price cap.

Axis Bank did not immediately respond to Reuters’ request for comment.

Although Indian refiners buy Russian oil on a delivered basis, copies of invoices reviewed by Reuters also show shipping charges, which helps in calculating the price of crude at Russian ports.

Sources said that problems in settling trade for Russian oil could push sellers to accept rupee payments, at least for barrels that exceed the price cap.

“We have neither stopped nor reduced purchases of Russian oil after Bank of Baroda’s decision … we will consider using rupees to pay for oil purchased above the price cap,” another source said.

India does not recognise the Western price cap on Russian oil, a senior oil ministry source said last month.

SETTLEMENT MECHANISM

India set up a mechanism to settle its international trade in rupees last year. Some Russian banks later opened vostro accounts with banks in India to facilitate rupee trade.

The mechanism has not yet started given the lack of Russian appetite for rupees and India’s trade deficit with Moscow.

However, during a visit last week to India, Igor Sechin, chief executive of Russian oil major Rosneft, discussed ways to expand cooperation with India across the hydrocarbons value chain, including the possibility of making payments in national currencies.

A switch to rupee payments would help wean Russia from dollars and would save foreign exchange for India.

Reporting by Nidhi Verma; Additional reporting by Siddhi Nayak in Mumbai; Editing by Tony Munroe and Jacqueline Wong

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April 4, 2023
Ukraine’s Zelenskiy aims for Western warplane coalition; Russians pressure Bakhmut
Poland pledges more MiG jets for Kyiv during Zelenskiy visit

Zelenskiy cites difficult situation for Kyiv’s forces in Bakhmut

France’s Macron in China to nudge it to help end Russia’s war
KYIV, April 5 (Reuters) – Ukrainian President Volodymyr Zelenskiy said during a trip to Warsaw on Wednesday that Poland would help form a coalition of Western powers to supply warplanes to Kyiv, adding that Ukrainian troops were still fighting for Bakhmut in the east but could withdraw if they risked being cut off.

Neighbouring Poland is a close ally of Ukraine and helped galvanise support in the West to supply main battle tanks to Kyiv. During Zelenskiy’s visit, Poland announced it would send 10 more MiG fighter jets on top of four provided earlier.

“Just as your (Polish) leadership proved itself in the tank coalition, I believe that it will manifest itself in the planes coalition,” Zelenskiy said in a speech on a square in Warsaw.

Earlier in the day, Zelenskiy said Ukrainian troops faced a really difficult situation in Bakhmut and the military would take “corresponding” decisions to protect them if they risk being encircled by Russian invasion forces.

Ukrainian forces in Bakhmut sometimes advanced a little only to be knocked back, Zelenskiy said, but remained inside the city.

“We are in Bakhmut and the enemy does not control it,” Zelenskiy said.

BOMBARDMENT

Bakhmut, in Ukraine’s mainly Russian-occupied Donetsk province, has proven one of the bloodiest and longest battles of Russia’s invasion, now in its 14th month. Kyiv’s forces have held out against a Russian onslaught with heavy losses on both sides and the city, a mining and transport hub, reduced to ruin after months of street fighting and bombardment.

“For me, the most important is not to lose our soldiers and of course if there is a moment of even hotter events and the danger we could lose our personnel because of encirclement – of course the corresponding correct decisions will be taken by generals there,” Zelenskiy said.

He appeared to be referring to the idea of withdrawing.

However, Deputy Defence Minister Hanna Malyar said later in that the situation at the front was “completely under control” despite repeated Russian attempts to take Bakhmut and other cities in the east.

Reuters could not verify the battlefield reports.

Ukrainian military commanders have stressed the importance of holding Bakhmut and other cities and inflicting losses on Russian troops before an anticipated counter-offensive against them in the coming weeks or months.

[1/6] Ukrainian service member, Naza, 21, commander from 28th mechanised brigade repositions his machine gun during a fire exchange at the frontline, amid Russia?s attack on Ukraine in the region of Bakhmut, Ukraine, April 5, 2023. REUTERS/Kai Pfaffenbach

Mercenaries from the Wagner group – who have spearheaded the assault on Bakhmut – said at the weekend they had captured the city centre, a claim dismissed by Kyiv.

The U.S.-based Institute for the Study of War said the Wagner fighters had made advances in Bakhmut and were likely to continue trying to consolidate control of the city centre and push westward through dense urban neighbourhoods.

PLAYING THE CHINA CARD

French President Emmanuel Macron, meanwhile, was visiting China after he and U.S. President Joe Biden agreed they would try to engage Beijing to hasten the end of the Russian assault on Ukraine.

China has called for a comprehensive ceasefire and described its position on the conflict as “impartial”, even though the Chinese and Russian presidents announced a “no limits” partnership shortly before the invasion.

Both Macron and European Commission President Ursula von der Leyen, due in Beijing shortly after him, have said they want to persuade China to use its influence over Russia to bring peace in Ukraine, or to at least deter Beijing from directly supporting Moscow in the conflict.

The U.S. and NATO have said China was considering sending arms to Russia, which Beijing has denied.

‘SHOULDER TO SHOULDER’

Poland has played a big role in persuading Western allies to supply battle tanks and other heavy weapons to Ukraine, which helped Kyiv stem and sometimes reverse Russian advances so far.

“You have stood shoulder to shoulder with us, and we are grateful for it,” Zelenskiy said after Polish President Andrzej Duda presented him with Poland’s highest award, the Order of the White Eagle.

Duda said Warsaw was also working to secure additional security guarantees for Ukraine at a NATO summit to be held in the Lithuania in July.

Russian Foreign Minister Sergei Lavrov told state TV that Moscow needed to maintain relations with Washington even though American supplies of weapons to Ukraine meant “we are really in a hot phase of the war”.

In addition to MiG-29s, Kyiv has also pressed NATO for F-16 jet fighters but Duda’s foreign policy adviser, Marcin Przydacz, said Poland would not decide soon on whether to send any.

Reporting by Pavel Polityuk with additional reporting by Ron Popeski, Mike Stone, Alan Charlish, Pawel Florkiewicz and Tom Balmforth; writing by Angus MacSwan, Mark Heinrich and Idrees Ali; editing by Philippa Fletcher, Nick Macfie and Grant McCool

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April 4, 2023
Saudi Arabia could invest in Iran ‘very quickly’ after agreement – minister

RIYADH, March 15 (Reuters) – Saudi Arabia’s Finance Minister Mohammed Al-Jadaan said on Wednesday that Saudi investments into Iran could happen “very quickly” following an agreement to restore diplomatic ties.

“There are a lot of opportunities for Saudi investments in Iran. We don’t see impediments as long as the terms of any agreement would be respected,” Al-Jadaan said during the Financial Sector Conference in Riyadh.

Iran and Saudi Arabia agreed on Friday to re-establish relations and re-open embassies within two months after years of hostility, following talks in China.

“Stability in the region is very important, for the world and for the countries in the region, and we have always said that Iran is our neighbour and we have no interest to have a conflict with our neighbours, if they are willing to cooperate,” Al-Jadaan later told Reuters in an interview.

The hostility between the two Middle Eastern powers had endangered the stability and security of the Middle East and helped fuel regional conflicts including in Yemen, Syria and Lebanon.

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“We have no reason not to invest in Iran, and we have no reason not to allow them to invest in Saudi Arabia. It is in our interest to make sure that both nations benefit from each others resources and competitive advantage,” Al-Jadaan told Reuters.

“If they (Iran) are willing to go through this process, then we are more than willing to go through this process and show them they are welcome and we would be more than happy to participate in their development,” he said.

CHINESE LEVERAGE

The deal, brokered by China, was announced after four days of previously undisclosed talks in Beijing between top security officials from Saudi Arabia and Iran.

China has leverage on Iran and Tehran will find it difficult to explain if it does not honour the agreement signed with Saudi Arabia in Beijing, another Saudi official told reporters, separately, on Wednesday.

The official, who declined to be named, said China is in a unique position as it enjoys exceptional relations with both Iran and Saudi Arabia.

“China is the first trading partner for both countries so the leverage is very important in that regard. And since we are building confidence, that commitment should be made with the presence of Chinese officials,” he said.

Saudi Arabia cut ties with Iran in 2016 after its embassy in Tehran was stormed during a dispute between the two countries over Riyadh’s execution of a prominent Shi’ite Muslim cleric.

The kingdom also has blamed Iran for missile and drone attacks on its oil facilities in 2019 as well as attacks on tankers in Gulf waters. Iran denied the charges.

The most difficult topics in the talks with Iran were related to Yemen, the media, and China’s role, the official said without elaborating.

Both sides have agreed to re-activate a 2001 security agreement, which covers cooperation in fighting drugs, smuggling and organised crime, as well as another earlier pact on trade, economy and investment.

“Resuming diplomatic relations does not mean we are allies… Diplomatic relations are the norm for Saudi Arabia, and we should have them with everybody,” the official said.

Additional reporting by Aziz El Yaakoubi; Writing by Clauda Tanios and Hadeel Al Sayegh; Editing by Christopher Cushing, Jon Boyle and Andrea Ricci

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March 15, 2023
Adani’s market losses top $100 bln as crisis shockwaves spread
Market rout deepens in Indian tycoon Adani’s shares

Adani Enterprises loses $26 bln in value since report

Falls after Adani pulled share sale, investors spooked

Analysts say signals confidence crisis in Indian market
NEW DELHI/MUMBAI, Feb 2 (Reuters) – Adani’s market losses swelled above $100 billion on Thursday, sparking worries about a potential systemic impact a day after the Indian group’s flagship firm abandoned its $2.5 billion stock offering.

Another challenge for Adani on Thursday came when S&P Dow Jones Indices said it would remove Adani Enterprises from widely used sustainability indices, effective Feb. 7, which would make the shares less appealing to sustainability-minded funds.

In addition, India’s National Stock Exchange said it has placed on additional surveillance shares of Adani Enterprises <ADEL.NS>, Adani Ports <APSE.NS> and Ambuja Cements <ABUJ.NS>. read more

However, Adani Group Chairman Gautam Adani is in talks with lenders to prepay and release pledged shares as he seeks to restore confidence in the financial health of his conglomerate, Bloomberg News reported on Thursday. read more

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The shock withdrawal of Adani Enterprises’ share sale marks a dramatic setback for founder Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years but have plunged in just a week after a critical research report by U.S.-based short-seller Hindenburg Research.

Aborting the share sale sent shockwaves across markets, politics and business. Adani stocks plunged, opposition lawmakers called for a wider probe and India’s central bank sprang into action to check on the exposure of banks to the group. Meanwhile, Citigroup’s (C.N) wealth unit stopped making margin loans to clients against Adani Group securities.

The crisis marks an dramatic turn of fortune for Adani, who has in recent years forged partnerships with foreign giants such as France’s TotalEnergies (TTEF.PA) and attracted investors such as Abu Dhabi’s International Holding Company as he pursues a global expansion stretching from ports to the power sector.

In a shock move late on Wednesday, Adani called off the share sale as a stocks rout sparked by Hindenburg’s criticisms intensified, despite it being fully subscribed a day earlier.

“Adani may have started a confidence crisis in Indian shares and that could have broader market implications,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.

Adani Enterprises shares tumbled 27% on Thursday, closing at their lowest level since March 2022.

Other group companies also lost further ground, with 10% losses at Adani Total Gas (ADAG.NS), Adani Green Energy (ADNA.NS) and Adani Transmission (ADAI.NS), while Adani Ports and Special Economic Zone shed nearly 7%.

Since Hindenburg’s report on Jan. 24, group companies have lost nearly half their combined market value. Adani Enterprises – described as an incubator of Adani’s businesses – has lost $26 billion in market capitalisation.

Adani is also no longer Asia’s richest person, having slid to 16th in the Forbes rankings of the world’s wealthiest people, with his net worth almost halved to $64.6 billion in a week.

The 60-year-old had been third on the list, behind billionaires Elon Musk and Bernard Arnault.

His rival Mukesh Ambani of Reliance Industries (RELI.NS) is now Asia’s richest person.

[1/4] Indian billionaire Gautam Adani addresses delegates during the Bengal Global Business Summit in Kolkata, India April 20, 2022. REUTERS/Rupak De Chowdhuri

Reuters Graphics

BROADER CONCERNS

Adani’s plummeting stock and bond prices have raised concerns about the likelihood of a wider impact on India’s financial system.

India’s central bank has asked local banks for details of their exposure to the Adani Group, government and banking sources told Reuters on Thursday.

CLSA estimates that Indian banks were exposed to about 40% of the $24.5 billion of Adani Group debt in the fiscal year to March 2022.

Dollar bonds issued by entities of Adani Group extended losses on Thursday, with notes of Adani Green Energy crashing to a record low. Adani Group entities made scheduled coupon payments on outstanding U.S. dollar-denominated bonds on Thursday, Reuters reported citing sources.

“We see the market is losing confidence on how to gauge where the bottom can be and although there will be short-covering rebounds, we expect more fundamental downside risks given more private banks (are) likely to cut or reduce margin,” said Monica Hsiao, chief investment officer of Hong Kong-based credit fund Triada Capital.

In New Delhi, opposition lawmakers submitted notices in parliament demanding discussion of the short-seller’s report.

The Congress Party called for a Joint Parliamentary Committee be set up or a Supreme Court monitored investigation, while some lawmakers shouted anti-Adani slogans inside parliament, which was adjourned for the day.

ADANI VS HINDENBURG

Adani made acquisitions worth $13.8 billion in 2022, Dealogic data showed, its highest ever and more than double the previous year.

The cancelled fundraising was critical for Adani, which had said it would use $1.33 billion to fund green hydrogen projects, airports facilities and greenfield expressways, and $508 million to repay debt at some units.

Hindenburg’s report alleged an improper use of offshore tax havens and stock manipulation by the Adani Group. It also raised concerns about high debt and the valuations of seven listed Adani companies.

The Adani Group has denied the accusations, saying the allegation of stock manipulation had “no basis” and stemmed from an ignorance of Indian law. It said it has always made the necessary regulatory disclosures.

Adani had managed to secure share sale subscriptions on Tuesday even though the stock’s market price was below the issue’s offer price. Maybank Securities and Abu Dhabi Investment Authority had bid for the anchor portion of the issue, investments which will now be reimbursed by Adani.

Late on Wednesday, the group’s founder said he was withdrawing the sale given the share price fall, adding his board felt going ahead with it “will not be morally correct”.

Reporting by Chris Thomas, Nallur Sethuraman, Tanvi Mehta, Ira Dugal, Aftab Ahmed, Sumeet Chatterjee, Anshuman Daga, Summer Zhen, Ross Kerber and Bansari Mayur Kamdar; Editing by Muralikumar Anantharaman, Jason Neely and Alexander Smith

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February 3, 2023
Adani crisis ignites Indian contagion fears, credit warnings
Both houses of parliament adjourned amid row

Flagship Adani firm plunges 35% at one point

Moody’s warns will find it harder to raise capital
NEW DELHI, Feb 3 (Reuters) – Financial contagion fears spread in India on Friday as the Adani Group’s crisis worsened, with ratings agency Moody’s warning the conglomerate may struggle to raise capital and S&P cutting the outlook on two of its businesses.

Chaotic scenes in both houses of India’s parliament led to their adjournment on Friday as some lawmakers demanded an inquiry after a dramatic meltdown in the stock market values of Indian billionaire Gautam Adani’s companies.

The crisis was triggered by a Hindenburg Research report last week in which the U.S.-based short-seller accused the Adani Group of stock manipulation and unsustainable debt.

Adani Group, one of India’s top conglomerates, has rejected the criticism and denied wrongdoing in detailed rebuttals, but that has failed to arrest the unabated fall in its shares.

In the latest sign of the crisis widening, India’s ministry of corporate affairs has begun a preliminary review of Adani Group’s financial statements and other regulatory submissions made over the years, two government officials told Reuters.

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Although shares in Adani companies recovered after sharp falls earlier on Friday, the seven listed firms have still lost about half their market value, totalling more than $100 billion since Hindenburg published its report on Jan. 24.

Moody’s warned the share plunge could hit the Adani Group’s ability to raise capital, although fellow credit ratings agency Fitch saw no immediate impact on its ratings.

“These adverse developments are likely to reduce the group’s ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years. We recognise that a portion of the capex is deferrable,” Moody’s said.

For Adani, a former school drop-out from Gujarat, the western home state of Indian Prime Minister Narendra Modi, the crisis presents the biggest reputational and business challenge of his life, as his firm struggles to assuage investor concerns.

Amid fears the turmoil could spill over into the broader financial system, some Indian politicians have called for a wider investigation, and sources have told Reuters the central bank has asked lenders for details of exposure to the group.

“Contagion concerns are widening, but still limited to the banking sector,” Charu Chanana, a market strategist with Saxo Markets in Singapore, said on Friday.

The Reserve Bank of India said the country’s banking system remains resilient and stable. State Bank of India said it was not concerned about the exposure to Adani Group, but further financing to its projects would be “evaluated on its own merit”.

Adani Enterprises shares closed 1.4% higher, after earlier slumping 35% to hit their lowest since March 2021. That low took its losses to nearly $33.6 billion since last week, a 70% fall.

Shares fell 5% in Adani Total Gas (ADAG.NS), a joint venture with France’s TotalEnergies (TTEF.PA), which said its exposure to Adani companies was limited.

Traffic moves past the logo of the Adani Group installed at a roundabout on the ring road in Ahmedabad, India, Feb. 2, 2023. REUTERS/Amit Dave

Adani Ports and Special Economic Zone (APSE.NS) was up 8%, while Adani Transmission (ADAI.NS) and Adani Green Energy (ADNA.NS) were both down 10%.

“There is a risk that investor concerns about the group’s governance and disclosures are larger than we have currently factored into our ratings,” S&P said, as it cut its outlook on Adani Ports and Adani Electricity to negative from stable.

India’s divestment secretary Tuhin Kanta Pandey told Reuters that Life Insurance Corp (LIC) shareholders and customers should not be concerned about its exposure to the Adani Group.

State-run LIC (LIFI.NS) has a 4.23% stake in the flagship Adani Enterprises, while its other exposures include a 9.14% stake in Adani Ports.

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‘ONE INSTANCE’

Adani, 60, has in recent years forged partnerships with, and attracted investment from, foreign giants as he pursued global expansion in industries from ports to power.

The market and financial crisis means foreign investors, many already underweight on India as they consider its stock market overpriced, are reducing exposure.

“One instance, however much talked about globally it may be … is not going to be indicative of how well Indian financial markets are governed,” Indian Finance Minister Nirmala Sitharaman told Network18 when asked about the market weakness.

Reuters Graphics

Hindenburg’s report said key listed Adani companies had “substantial debt” and shares in the seven listed firms had a downside of 85% due to what it called sky-high valuations.

The Adani Group has called the report baseless and said over the past decade, its companies have “consistently de-levered”.

The listed Adani firms now have a combined market value of $107.5 billion, versus $218 billion before the report.

That has forced Adani to cede the crown of Asia’s richest person to Indian rival Mukesh Ambani of Reliance Industries Ltd (RELI.NS), and he has slid to 17th in Forbes’ list of the world’s wealthiest people.

He had ranked third, behind Elon Musk and Bernard Arnault.

Reporting by Aditya Kalra, Chris Thomas, Ankur Banerjee, Bansari Mayur Kamdar, Shivam Patel, Tanvi Mehta and Rae Wee in Singapore; Editing by Clarence Fernandez, Mark Potter and Alexander Smith

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February 3, 2023
Ukraine says Russia strike kills at least 10; Moscow blames pro-Kyiv forces

KYIV, Dec 24 (Reuters) – A Russian strike on Ukraine’s recently recaptured city of Kherson killed at least 10 people, wounded 58 and left bloodied corpses on the road, authorities said, in what Kyiv condemned as wanton killing for pleasure.

A pro-Moscow official responded by saying Ukrainian forces had launched the attack in a bid to blame the Russian military.

Fresh from a trip to the United States seeking weapons to resist the 10-month-old Russian invasion, President Volodymyr Zelenskiy published photos showing streets strewn with burning cars, smashed windows and bodies.

“Social networks will most likely mark these photos as ‘sensitive content’. But this is not sensitive content – it is the real life of Ukraine and Ukrainians,” he wrote.

“These are not military facilities. … It is terror, it is killing for the sake of intimidation and pleasure.”

Russia controls most but not all of Kherson region. Local Governor Yaroslav Yanushevych, appointed by Kyiv, told national television the death toll had risen to 10, Interfax Ukraine news agency said.

Vladimir Saldo, the region’s Russian-installed governor, said Kyiv had ordered troops to shell the city.

“This is a disgusting provocation with the obvious aim of blaming the Russian armed forces,” he wrote on Telegram.

Yuriy Sobolevskyi, deputy chair of the regional council, said a missile landed next to a supermarket by the city’s Freedom Square.

Cars burn on a street after a Russian military strike, amid Russia’s attack of Ukraine, in Kherson, Ukraine December 24, 2022. Ukrainian Presidential Press Service/Handout via REUTERS

“There were civilians there, each of whom lived their own life, went about their own business,” he said, noting a girl selling phone Sim cards, others unloading items from a truck, and passersby.

Reuters was unable to independently verify the reports from Kherson.

Ukraine retook the city, the only regional capital Russia had since its Feb. 24 invasion, in November. Since then, Kyiv says Russian forces have heavily shelled the city from across the vast Dnipro river.

‘KILL WITH IMPUNITY’

Ukrainian presidential aide Kyrylo Tymoshenko said the attack came from a Grad multiple rocket launcher.

Another aide, Mykhailo Podolyak, criticized those calling for Kyiv to seek peace talks with Russia, referencing Moscow’s relentless pounding of Ukraine’s power grid since October that has left millions without heat or water.

“I’ll remind those who propose to take into account (Russian) ‘peace’ initiatives: Right now Russia is ‘negotiating,’ killing Kherson residents, wiping out Bakhmut, destroying Kyiv/Odesa grids, torturing civilians in Melitopol,” Podolyak wrote.

“Russia wants to kill with impunity. Shall we allow it?”

Yanushevych had earlier shared a message from the city’s blood bank calling for urgent donations.

Kyiv was still recovering from Monday’s wave of missile strikes, which knocked out half the city’s power supply into the next day, according to Ukraine’s prime minister.

Reporting by Max Hunder;
Editing by Andrew Cawthorne, David Ljunggren, Josie Kao and Leslie Adler

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December 24, 2022
Putin discusses West’s oil price cap with Iraqi leader – Kremlin

Nov 24 (Reuters) – Russian President Vladimir Putin on Thursday discussed Western attempts to cap the price of Russian oil during a phone call with Mohammed Shia al-Sudani, the new Iraqi prime minister, the Kremlin said in a readout of the call.

It said Putin had told Sudani that a price cap would have serious consequences for the global energy market.

“Attempts by a number of Western countries to impose restrictions on the cost of crude oil from Russia were touched upon,” the Kremlin’s statement said.

“Vladimir Putin stressed that such actions contradict the principles of market relations and are highly likely to lead to serious consequences for the global energy market.”

The European Union and United States have stepped up attempts in recent days to strike an agreement on where to set a price cap on their imports of Russian oil.

Russia and Iraq are both major oil producers and members of the OPEC+ agreement, which sets oil production levels in a bid to manage world prices.

Writing by Jake Cordell; Editing by Kevin Liffey

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November 24, 2022
Ghana plans to buy oil with gold instead of U.S. dollars

ACCRA, Nov 24 (Reuters) – Ghana’s government is working on a new policy to buy oil products with gold rather than U.S. dollar reserves, Vice-President Mahamudu Bawumia said on Facebook on Thursday.

The move is meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which is weakening the local cedi and increasing living costs.

Ghana’s Gross International Reserves stood at around $6.6 billion at the end of September 2022, equating to less than three months of imports cover. That is down from around $9.7 billion at the end of last year, according to the government.

If implemented as planned for the first quarter of 2023, the new policy “will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency,” Bawumia said.

Using gold would prevent the exchange rate from directly impacting fuel or utility prices as domestic sellers would no longer need foreign exchange to import oil products, he explained.

“The barter of gold for oil represents a major structural change,” he added.

The proposed policy is uncommon. While countries sometimes trade oil for other goods or commodities, such deals typically involve an oil-producing nation receiving non-oil goods rather than the opposite.

Ghana produces crude oil but it has relied on imports for refined oil products since its only refinery shut down after an explosion in 2017.

Bawumia’s announcement was posted as Finance Minister Ken Ofori-Atta announced measures to cut spending and boost revenues in a bid to tackle a spiraling debt crisis.

In a 2023 budget presentation to parliament on Thursday, Ofori-Atta warned the West African nation was at high risk of debt distress and that the cedi’s depreciation was seriously affecting Ghana’s ability to manage its public debt.

The government is negotiating a relief package with the International Monetary Fund as the cocoa, gold and oil-producing nation faces its worst economic crisis in a generation.

Reporting by Cooper Inveen and Christian Akorlie
Writing by Sofia Christensen
Editing by Estelle Shirbon and Elaine Hardcastle

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November 24, 2022
Biden vows to ‘free Iran’ in West Coast campaign speech

OCEANSIDE, Calif., Nov 3 (Reuters) – U.S. President Joe Biden on Thursday vowed to “free” Iran, and said that demonstrators working against the country’s government would soon succeed in freeing themselves.

“Don’t worry, we’re gonna free Iran. They’re gonna free themselves pretty soon,” Biden said during a wide-ranging campaign speech in California, as dozens of demonstrators gathered outside holding banners supporting Iranian protesters.

Biden did not expand on his remarks or specify what additional actions he would take during the remarks at MiraCosta College near San Diego.

The White House’s National Security Council did not immediately respond to a request for comment.

U.S. President Joe Biden speaks during a campaign fundraising event for U.S. Rep. Mike Levin (D-CA) in San Diego, California, U.S., November 3, 2022. REUTERS/Kevin Lamarque

Seven weeks of demonstrations in Iran were ignited by the death of a 22-year-old woman, Mahsa Amini, in the custody of Iran’s morality police.

The protests triggered by Amini’s death on Sept. 16 have shown the defiance of many young Iranians in challenging the clerical leadership, overcoming fear that has stifled dissent in the wake of the 1979 Islamic Revolution. read more

The United States on Wednesday said it will try to remove Iran from the 45-member U.N. Commission on the Status of Women (CSW) over the government’s denial of women’s rights and brutal crackdown on protests. read more

Iran is just starting a four-year term on the commission, which meets annually every March and aims to promote gender equality and the empowerment of women.

Reporting by Trevor Hunnicutt, writing by Andrea Shalal; Editing by Stephen Coates

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November 4, 2022
Saudi Arabia ‘maturer guys’ in spat with U.S., energy minister says
OPEC+ oil output cut led to U.S., Saudi spat

Saudi Arabia and U.S. “solid allies” – minister

Big Wall St turnout at flagship Saudi investment summit
RIYADH, Oct 25 (Reuters) – Saudi Arabia decided to be the “maturer guys” in a spat with the United States over oil supplies, the kingdom’s energy minister Prince Abdulaziz bin Salman said on Tuesday.

The decision by the OPEC+ oil producer group led by Saudi Arabia this month to cut oil output targets unleashed a war of words between the White House and Riyadh ahead of the kingdom’s Future Investment Initiative (FII) forum, which drew top U.S. business executives.

The two traditional allies’ relationship had already been strained by the Joe Biden administration’s stance on the 2018 murder of Saudi journalist Jamal Khashoggi and the Yemen war, as well as Riyadh’s growing ties with China and Russia.

When asked at the FII forum how the energy relationship with the United States could be put back on track after the cuts and with the Dec. 5 deadline for the expected price-cap on Russian oil, the Saudi energy minister said: “I think we as Saudi Arabia decided to be the maturer guys and let the dice fall”.

“We keep hearing you ‘are with us or against us’, is there any room for ‘we are with the people of Saudi Arabia’?”

Saudi Investment Minister Khalid al-Falih said earlier that Riyadh and Washington will get over their “unwarranted” spat, highlighting long-standing corporate and institutional ties.

“If you look at the relationship with the people side, the corporate side, the education system, you look at our institutions working together we are very close and we will get over this recent spat that I think was unwarranted,” he said.

While noting that Saudi Arabia and the United States were “solid allies” in the long term, he highlighted the kingdom was “very strong” with Asian partners including China, which is the biggest importer of Saudi hydrocarbons.

The OPEC+ cut has raised concerns in Washington about the possibility of higher gasoline prices ahead of the November U.S. midterm elections, with the Democrats trying to retain their control of the House of Representatives and the Senate.

Biden pledged that “there will be consequences” for U.S. relations with Saudi Arabia after the OPEC+ move.

Princess Reema bint Bandar Al Saud, the kingdom’s ambassador to Washington, said in a CNN interview that Saudi Arabia was not siding with Russia and engages with “everybody across the board”.

[1/3] Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman Al-Saud speaks at the Future Investment Initiative conference, in Riyadh, Saudi Arabia, October 25, 2022. REUTERS/ Ahmed Yosri

“And by the way, it’s okay to disagree. We’ve disagreed in the past, and we’ve agreed in the past, but the important thing is recognizing the value of this relationship,” she said.

She added that “a lot of people talk about reforming or reviewing the relationship” and said that was “a positive thing” as Saudi Arabia “is not the kingdom it was five years ago.”

FULL ATTENDENCE AT FII

Like previous years, the FII three-day forum that opened on Tuesday saw a big turnout from Wall Street, as well as other industries with strategic interests in Saudi Arabia, the world’s top oil exporter.

JPMorgan Chase & Co Chief Executive Jamie Dimon, speaking at the gathering, voiced confidence that Saudi Arabia and the United States would safeguard their 75-year-old alliance.

“I can’t imagine any allies agreeing on everything and not having problems – they’ll work it through,” Dimon said. “I’m comfortable that folks on both sides are working through and that these countries will remain allies going forward, and hopefully help the world develop and grow properly.”

The FII is a showcase for the Saudi crown prince’s Vision 2030 development plan to wean the economy off oil by creating new industries that also generate jobs for millions of Saudis, and to lure foreign capital and talent.

No Biden administration officials were visible at the forum on Tuesday. Jared Kushner, a former senior aide to then-President Donald Trump who enjoyed good ties with Prince Mohammed, was featured as a front-row speaker.

The Saudi government invested $2 billion with a firm incorporated by Kushner after Trump left office.

FII organisers said this year’s edition attracted 7,000 delegates compared with 4,000 last year.

After its inaugural launch in 2017, the forum was marred by a Western boycott over Khashoggi’s killing by Saudi agents. It recovered the next year, attracting leaders and businesses with strategic interests in Saudi Arabia, after which the pandemic hit the world.

Reporting by Aziz El Yaakoubi, Hadeel Al Sayegh and Rachna Uppal in Riyadh and Nadine Awadalla, Maha El Dahan and Yousef Saba in Dubai; Writing by Ghaida Ghantous and Michael Geory; Editing by Louise Heavens, Mark Potter, Vinay Dwivedi, William Maclean

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October 25, 2022
Biden disappointed by ‘shortsighted’ OPEC+ cut, more SPR releases possible

WASHINGTON, Oct 5 (Reuters) – President Joe Biden called on his administration and Congress to explore ways to boost U.S. energy production and reduce OPEC’s control over energy prices after the cartel’s “shortsighted” production cut, the White House said on Wednesday.

The Saudi Arabia-led OPEC+ cartel at a Vienna meeting on Wednesday ignored pleas from the White House to keep oil flowing and agreed to cut output by 2 million barrels per day, its deepest cuts in production since the 2020 COVID-19 pandemic.

The move drew a sharp response from Biden that underscores the growing rift between the United States and Saudi Arabia on energy policy.

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“The President is disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of (Russian President Vladimir) Putin’s invasion of Ukraine,” national security adviser Jake Sullivan and National Economic Council Director Brian Deese said in a statement.

Biden warned that he will now continue to direct releases from the nation’s Strategic Petroleum Reserve “as necessary,” a shift from the White House’s previous comments that it would end the drawdown in the coming weeks.

Earlier this year, the Biden administration announced the largest sale ever from the reserve: 180 million barrels for six months beginning in May. Last month it extended that historic sale into November as only about 155 million barrels had been sold. It now aims to sell 165 million through November.

As a result, the amount of oil in the reserve has fallen to the lowest level since July 1984. It now holds about 416 million barrels of oil, well above what the United States is required by its membership in the International Energy Agency, at sites on the Texas and Louisiana coasts.

Rising oil and fuel prices are a risk to Biden’s fellow Democrats as they seek to keep control of Congress in the Nov. 8 midterm elections.

Biden also pledged to consult with Congress on additional tools to cut OPEC’s control over energy prices, a potential reference to a decades-long effort to open the cartel to antitrust lawsuits for orchestrating supply cuts.

The so-called NOPEC bill, which has brought up numerous times over the past 20 years but never enacted, easily passed a Senate committee in May.

The White House has previously expressed concerns about unintended consequences of the bill.

The White House is also worried about the cut cementing Saudi Arabia’s closer cooperation with Russia, also a member of OPEC+, as oil revenues fund Moscow’s war machine in Ukraine.

“Look it’s clear that OPEC Plus is aligning with Russia with today’s announcement,” White House spokesperson Karine-Jean Pierre told reporters aboard Air Force One on Wednesday.

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Reporting by Susan Heavey and Jarrett Renshaw; editing by Tim Ahmann and David Gregorio

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October 5, 2022