The United States decided to speed up the deployment of B61-12 nuclear bombs in Europe. Politico reports this with reference to its own sources. The deployment of the upgraded thermonuclear gravity bombs was scheduled for the spring of next year, but now, they are due to arrive in December 2022. US officials shared this with NATO allies during a closed-door meeting in Brussels this month. Such a move requires replacing outdated B61 nuclear bombs with a newer B61-12 version in various storage facilities in Europe for potential use by the U.S. and allied bomber and fighter jets. Politico notes that this decision comes amid increasing tensions over Russia’s threats to use nuclear weapons in Ukraine. It is noted that the modernization of the B61 nuclear bomb program has been openly discussed in the US budget documents and public statements for many years. Pentagon officials state that this is necessary to ensure the modernization and safety of the aviation nuclear weapon arsenal. They are convinced: the current steps are not related to current events in Ukraine and were not artificially accelerated. B61 nuclear bombs have been in service with the United States since 1968. Currently, the B61-3, B61-4, B61-7, and B61-11 modifications are being used. B61-3 and B61-4 belong to tactical ammunition, and they are used with F-15E and F-16C fighter jets. B61-7 and B61-11 bombs are considered strategic and are used with B-2 and B-52 bomber jets. The development of B61-12 has been ongoing since 2012. In 2018, the Department of Nuclear Safety and Security approved its project. The upgraded bomb should replace the B61-3, B61-4, and B61-7 currently in service with American combat aircraft. he B61-12 bomb received a 50 kilotons warhead and became high precision: a controlled tail rudder is installed on it, which will significantly increase accuracy and abandon the use of a brake parachute.
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CBS News joined the division's Deputy Commander, Brigadier General John Lubas, and Colonel Edwin Matthaidess, Commander of the 2nd Brigade Combat Team, on a Black Hawk helicopter for the hour-long ride to the very edge of NATO territory — only around three miles from Romania's border with Ukraine. From the moment Russian President Vladimir Putin launched his full-scale invasion of Ukraine on February 24, his forces have advanced northward from the Crimean Peninsula, a Ukrainian region that Moscow illegally seized control of in 2014. For more than seven months, Russian troops have tried to push along the Black Sea coast into the Kherson region, aiming to capture the key Ukrainian port cities of Mykolaiv and Odesa.
Their goal is to cut off all Ukrainian access to the sea, leaving the country and its military forces landlocked. That threat, so close to NATO territory in Romania, is why one of America's most elite air assault divisions has been sent in, with some heavy equipment. "We're ready to defend every inch of NATO soil," Lubas told CBS News. "We bring a unique capability, from our air assault capability… We're a light infantry force, but again, we bring that mobility with us, for our aircraft and air assaults." Skirting northward along Romania's Black Sea coast, the Black Hawk eventually touched down at a forward operating site where U.S. and Romanian troops were pounding targets during a joint ground and air assault exercise. The tank rounds and artillery fire were real. The drill was meant to recreate the battles Ukraine's forces are fighting every day against Russian troops, just across the border. The war games so close to that border are a clear message to Russia and to America's NATO allies, that the U.S. Army is here. "The real meaning for me, to have the American troops here, is like if you were to have allies in Normandy before any enemy was there," Romanian Major General Lulian Berdila told CBS News, referring to the landmark World War II battle on France's north coast. The American forces have been establishing a garrison at the Romanian military's air base. In all, about 4,700 soldiers from the 101st Airborne's home base in Fort Campbell, Kentucky, have been deployed to reinforce NATO's eastern flank. Matthaidess told CBS News that he and his troops were the closest American forces to the fighting in Ukraine. From their vantage point, they've been "closely watching" the Russian forces, "building objectives to practice against" and conducting drills that "replicate exactly what's going on" in the war. "It keeps us on our toes," he said. The "Screaming Eagles" commanders told CBS News repeatedly that they are always "ready to fight tonight," and while they're there to defend NATO territory, if the fighting escalates or there's any attack on NATO, they're fully prepared to cross the border into Ukraine. EU countries are discussing whether to contribute funding to ensure Ukrainians keep their access to vital Starlink internet services currently paid for by Tesla boss Elon Musk. Lithuanian Foreign Minister Gabrielius Landsbergis disclosed the plans, which are at an early stage, in an interview with POLITICO on Monday.
The proposal follows warnings from Musk that his SpaceX rocket company could not indefinitely continue paying for Ukrainians to have access to Starlink internet services, amid suggestions that he wanted the U.S. government to foot the bill. Musk, the world’s richest man, later changed his mind and said he would carry on funding the service. But the scare raised concerns about the security of Ukraine’s continued access to a crucial telecommunications system that has played a vital role in their counteroffensives against Russian troops in occupied territories, as well as keeping the civilian population connected. Landsbergis suggested Ukraine's internet access should not be left in the hands of a single "super-powerful" person who could "wake up one day and say, ‘This is no longer what I feel like doing and this is it.’ And the next day, Ukrainians might find themselves without the internet.” He continued: “I figured that it's probably way better to have this as a contractual agreement between, let's say, a coalition of countries that could purchase a service from Mr. Musk, the Starlink service, and provide it to the Ukrainians and keep on providing it to Ukrainians.” The topic made it into the discussion at the meeting of the 27 EU foreign ministers Monday, according to Landsbergis. EU foreign policy chief Josep Borrell raised the subject, “and certain countries also joined in,” the minister said, without specifying which countries. “If it happens in EU, it's even better,” he said. “I don't see why it couldn't.” Russia is a major global commodity producer and exporter. The country’s invasion of Ukraine has already pushed commodity prices to historically high levels and could also lead to commodity shortages. This situation may cause considerable economic damage, with far-reaching consequences for EU industry. Why is there a Russian-Ukraine war? What's the connection with Europe's Green Deal? And what's the role of the USA? Geologists call it the Ukrainian shield. That land in the middle which starts from the northern border with Belarus up to the shores of the Azov Sea, in the south of Donbass. According to the studies of the Ukrainian geological service, in the ancient rocks of this shield are hidden lithium deposits with great potential. Findings that have been identified mainly around the area of Mariupol, the port city of Donbass torn apart by Russian bombing. Lithium deposits in Ukraine “This may not be the main reason for the invasion, but undoubtedly Ukraine's mineral wealth is one of the reasons why this country is so important to Russia,” said Rod Schoonover, former director of the Environment and Natural Resources Section of the U.S. National Intelligence Council. A wealth confirmed by the fact that Ukrainian lithium had begun to attract global attention as early as last year, before the Russian invasion halted exploration. Last November, in fact, the Australian company European Lithium said it was close to securing the rights to two promising deposits of lithium in the region of Donetsk (eastern Ukraine) and Kirovograd, in the center of the country. In the same month, the Chinese company Chengxin Lithium has also asked for the rights on some deposits, a move that would allow China to win the first deposit in Europe. “Since there are no developed deposits, I highly doubt that lithium resources are the motivation for attacks in the Southeast,” Schoonover tells Renewable Matter. “But if this region falls under Russian control, lithium reserves would certainly be a co-benefit for the Kremlin. Certainly, the rest of the world would have a say. It would not import lithium from a pariah state (a nation that is not recognized by the governments of other countries due to human rights violations), especially when there are better alternatives in geopolitically more favourable countries.”
Dini tells Renewable Matter, “ and are problematic for the metallurgical processes of extracting the metal. Since 1991, Ukrainians here have been extracting mostly precious stones.”
The other mineral resources in Ukraine Ukraine has 10% of the world's iron reserves, 6% of titanium and 20% of graphite. “In geology, this extremely flat region is called peneplain,” Andrea Dini points out, “because it is so ancient that it has been flattened by erosion. Many of the rocks are billions of years old and you don't see them on the surface because they are covered by layers of sediment.” There are more than just minerals in Ukraine, however. In the northeast, near the Russian border, there is a 400-million-year-old sedimentary basin filled with organic material and black shale rocks. “These are black slates with large amounts of coal and methane. For example, part of US energy independence is due to the extraction of methane (Shale Gas) from these rocks on US soil.” There is also another sector that has a close link with Ukraine's resources: Italian ceramics. The ceramic industrial district of Sassuolo is one of the most important in the world and the quality of its tiles also depended on the importation from Ukraine of clay and kaolin, a mineral that is extracted from the quarries of Donbass. In the Italian ceramics industry, 25% of raw materials – including clay considered prized – came from Ukraine. After the Russian invasion, companies in the district will have to find compatible and competitive alternatives. According to insiders, first of all they need to find another recipe, that is, a new mixture of clays, kaolins and feldspars with material imported from other countries. Far-right leader Giorgia Meloni has been elected as Italy’s next Prime Minister, making her the nation’s first female prime minister. The head of the nationalist Brothers of Italy party will take over from Prime Minister Mario Draghi.
The 45-year-old Giorgia Meloni is expected to form Italy’s most right-wing government since Benito Mussolini was prime minister during World War II. Meloni’s victory comes after she ran on anti-immigration policies, plans to limit LGBTQ+ rights, and restricted access on abortions. She has also voiced her support for Ukraine amid the ongoing conflict with Russia. Following the vote, Meloni said that the Brothers of Italy party would “govern for everyone”. She said during her victory speech, “If we are called on to govern this nation we will do it for all the Italians, with the aim of uniting the people and focusing on what unites us rather than what divides us.” Who Is Giorgia Meloni?
Sweden's Prime Minister Magdalena Andersson has conceded defeat in Sweden's general election, after the opposition right bloc gained one extra seat in Wednesday's count of late and overseas votes.
“It’s a thin majority, but it is a majority, so tomorrow I will therefore request my dismissal as prime minister and responsibility for the process will pass to the Speaker and the Parliament,” Swedish Prime Minister Magdalena Andersson said in a press conference on Wednesday evening. “This is going to be a tough and complicated parliamentary term,” she said. “But the government which is going to run Sweden is going to have a good starting point.” She then ran through her party’s achievements in government and pointed to the fact that her party gained votes in the campaign. “We Social Democrats had a strong election campaign with a strong election result. The Social Democrats are not only Sweden’s biggest party, but the biggest party in Northern Europe,” she said. With only twenty districts left to count, the four parties supporting Ulf Kristersson for prime minister have 176 mandates to the 173 mandates held by the four parties backing Andersson. One mandate moved from the Social Democrats to the Moderates in the Wednesday count of late arriving advance votes, and overseas votes. Sweden’s speaker Andreas Norlén is expected to nominate Ulf Kristersson as the first person to go up for a vote in parliament to be Prime Minister. Kristersson needs at least 175 MPs to either vote for him or abstain to be appointed. Until then, Andersson will lead a caretaker government. In her speech, she said she would then stay on to lead her party in opposition. Moderate Party leader Ulf Kristersson said in video posted on Facebook that he was “now beginning work to set up a new, dynamic government”. “Sweden has an election result. The voters have spoken,” he said. “The Moderates and the other parties on my side had got the mandate for change that we asked for,” he wrote. “I will now start the work to set up a new, dynamic government.” The party’s group leader, Tobias Billström, was the first to announce victory, writing “We won!!!” in a tweet which he then immediately deleted. Ebba Busch, leader of the Christian Democrats, then published a victory tweet. “We have an election result and the Swedish people have voted for a change in government,” she wrote. The Hungarian prime minister says his country will not experience any fuel shortages, despite the current energy crisisHungary’s Prime Minister Viktor Orban has blamed the European Union’s energy shortfall on bureaucrats and environmentalists, saying his own country is protected from the crisis.
“If we want to dig to the bottom of the problems, we always end up in the same place: the issue of energy. And the situation is that Europe has run out of energy,” Orban wrote in a Facebook post on Saturday. The premier blamed the situation on “fundamentalist greens and the bureaucrats” playing “geopolitical games,” arguing that the bloc is refusing to use “different energy sources” for “political reasons,” driving up the cost of living and damaging its industries. “There are few continents in such a difficult situation as ours, but only our continent is making its own life so much harder,” Orban said, pledging to do everything “needed by the homeland.” In late August Hungary secured a deal with Russian energy giant Gazprom for additional natural gas supplies, pumped via Serbia. Hungary is one of the few EU member states to comply with the Moscow’s ruble payment requirement for gas deliveries. However, Budapest is also moving to cut energy consumption. Earlier this week, the government introduced an 18-degree Celsius temperature cap in all public institutions across the country. The authorities have also instituted a mandatory slashing of gas consumption for state institutions, except hospitals and social housing facilities. Hungary has repeatedly criticized EU sanctions against Russia introduced over the conflict in Ukraine. Budapest argues that the restrictions have failed to produce the intended result, while disrupting the supply of natural gas to the bloc and sending energy prices to unprecedented highs. Some farmers in Europe are winding down production this winter due to high energy prices, further threatening the global food supply that is already in a crisis. Europe faces a potential energy shortage this winter as countries in the region are highly dependent on Russia for natural gas. However, Russia has shut down a significant pipeline to Europe, citing technical issues due to sanctions over the invasion of Ukraine, and the EU is planning a full Russian oil ban this winter. This has caused a massive surge in natural-gas prices that were already on the rise even before the war due to rebounding demand as pandemic restrictions eased.
As energy is required throughout the food production process, farmers and food producers are feeling the pinch from red-hot prices with some halting or slowing output in the colder months ahead. Nordic Greens Trelleborg, a top Swedish tomato producer, said it will not be planting a winter crop this year because it would be running at a loss given current electricity prices, Swedish newspaper Afton Bladet reported on Sunday. That's because Nordic Greens had already locked in tomato prices earlier in the year when electricity prices were lower, explained the company's site manager Mindaugas Krasauskas. It's the first time the company is suspending production. EU farmer union Copa-Cogeca told the Financial Times that the dairy and bakery sectors are the most impacted by the surge in fuel prices because processes for pasteurization and milk powder production consume a lot of energy. This, in turn, has pushed up butter and milk powder prices, which were up 80% and 55% respectively at the end of August from a year ago, according to the European Commission. Meanwhile, some greenhouses — which regulate temperatures for off-season growing — in the Netherlands are switching off or reducing production areas this winter due to expensive fuel prices, Reuters reported on Wednesday. The Netherlands is the world's second-largest agricultural exporter after the US, so a reduction in farm output would hit shipments of fruits, vegetables, and flowers. With man-made farming solutions slowing due to the energy crisis, the industry could be going back in time this year. "It's like we will go back in history again with Spain producing in wintertime and the northern European countries producing their own vegetables in summertime," Rabobank analyst Cindy van Rijswick told Reuters. "Some people say maybe that's the way it should be." One trend in the precious metals markets which has yet to get widespread coverage but deserves more attention is the plummeting inventories of physical silver in the London vaults of the London Bullion Market Association (LBMA). These comprise vaults in and around London run by the bullion banks JP Morgan, HSBC and ICBC Standard Bank, as well as the London vaults of three security operators, Brinks, Malca-Amit and Loomis. London sub-Billion Market Association. Haemorrhaging Quietly, and almost under the radar, the quantity of silver held in the LBMA vaults has been consistently haemorrhaging for 7 straight months now. Latest data from the LBMA as of the end of June 2022 shows that the LBMA vaults now hold only 997.4 million ozs of silver (31,023 tonnes). Compared to the end of June 2021 when LBMA silver inventories stood at 1.18 billion ozs (36,706 tonnes), the LBMA vaults’ June 2022 month-end silver inventories are now 182.7 million ozs (5,683 tonnes) lower than a year ago, in other words a whopping 15.48% lower compared to June 2021. Notably, most of this freefall in London silver holdings has occurred since the end of November 2021, with LBMA silver inventories having consistently fallen each and every month since then. From the end of November 2021 when the LBMA London vaults reported holding 1.17 million ozs of silver (36,422 tonnes), silver inventories have fallen by a cumulative 173.5 million ozs (5,398 tonnes). That’s a 14.82% drop over 7 months from end of November 2021 to the end of June 2022. In addition, these June 2022 LBMA silver holdings are the lowest LBMA silver inventories since December 2016 and the first time since November 2016 that the LBMA silver inventories have fallen below 1 billion ozs. Over the exactly 6 year period since monthly LBMA silver inventory data was first published in July 2016, there has never before been a 7 month period (nor a 6 month period) in which the LBMA silver holdings fell consistently each and every month. The only partially comparable time period across the data series was when LBMA silver holdings fell consistently in each of 5 months between April and August 2020, and that was during the LBMA – COMEX (Exchange for Physical (EFP)) crisis when the LBMA bullion banks in panic mode were forced to transport huge amounts of silver (and gold) bars from the LBMA London vaults to the COMEX vaults in New York to meet the delivery requirements on futures contracts so as to prevent gold and silver prices moving into real price discovery mode. Over that 5 month period between April and August 2020, the LBMA silver inventories dropped by 102.2 million ozs (i.e. a drop of 8.7%). But to put it into context, the current haemorrhaging of silver from London of 182.7 million ozs that has been ongoing since June 2021 is now approaching a figure that is twice as large as the April – August 2020 LBMA silver vault outflows from London. Lack of Underpinning
On its website, the LBMA disingenuously claims that the silver (and gold) held in its London vaults “provide an important insight into London’s ability to underpin the physical OTC market.” What the LBMA doesn’t say however, is that of the 31,023 tonnes of silver that it claims was held in the LBMA London vault warehouses at the end of June 2022, a massive 19,422 tonnes, or 62.6% of this total, represented silver held in the LBMA London vaults that was owned by Exchange Traded Funds (ETFs) such as the iShares Silver Trust (SLV), the Wisdomtree Physical Silver ETC (PHAG), and the Aberdeen (abrdn) Physical Silver Shares ETF (SIVR). The Dead Daisies have announced a temporary new vocalist and bassist after Glenn Hughes was diagnosed with Covid. The band issued a statement on Monday afternoon (25th July) confirming that Glenn Hughes will be sitting out the rest of their European tour following his positive Covid test. David Lowy’s rock collective have drafted in Whitesnake’s Dino Jelusick as their new vocalist for their European tour dates, while Yogi Lonich will play bass. “We're sad to have to announce that the dreaded virus has hit the camp again with Glenn testing positive and unfortunately unable to continue,” The Dead Daisies said. “He's doing OK and please join us in wishing him a speedy recovery.“As Yogi filled in for David when he was crook, we're forging forward with Yogi playing bass and Dino Jelusick joining us on vocals for the rest of these shows. “We know some of you were coming to see Glenn but we hope you will still come out, rock with us and have a great time. “Too many bands find it easy to just cancel but we're determined to keep playing for you guys ... Rain, Hail, Heat or Virus. “If you do want to give it a miss, we're in the process of speaking with the promoters to work something out .. we'll keep you posted. “Look forward to seeing you at the shows.” The Dead Daisies support Judas Priest at Vienna Ancient Roman Theatre in France tonight (26th July) and they wrap up their European trek at Time To Rock Festival in Sweden on 5th August. The current incarnation of The Dead Daisies features Glenn Hughes, sole constant member David Lowy, guitarist Doug Aldrich and drummer Brian Tichy.
Verdi union said workers walked out in all major German North Sea ports, with the action set to last until Saturday. At 6am on Thursday employees on the early shift in Bremen and Bremerhaven stopped work, Verdi district manager of Bremen-Nordniedersachsen, Markus Westermann, said. The work stoppages are planned until 6am on Saturday. A strike has also begun at the port of Hamburg, said Stephan Gastmeier, trade union secretary in the transport and maritime department at Verdi Hamburg. The industrial action is because no agreement over pay has been reached with the Central Association of German Seaport Operators (ZDS) following the latest meeting on Wednesday, union bosses said. Negotiations are currently suspended. The union is negotiating for about 12,000 workers in 58 companies in Hamburg, Lower Saxony and Bremen who are covered by collective agreements. Dockworkers have already left ship and cargo handling at a standstill twice in June, most recently for 24 hours on June 23rd. According to Verdi negotiator Maya Schwiegershausen-Güth, the latest 48-hour ‘warning strikes’ will affect Emden, Wilhelmshaven and Brake, as well as Hamburg, which is the largest seaport in Germany and third largest in Europe. Like many unions across Europe, they are fighting for wage increases amid extreme inflation rises. Verdi is demanding an increase in wages of €1.20 per hour for employees as well as compensation for inflation amounting to 7.4 percent for the duration of the collective agreement which is 12 months. The union also wants to push through an increase in the annual allowance for container operations by €1,200.
Container congestion likely to worsen The impact of the strike on the handling of container and cargo ships is likely to be considerable and bring the loading and unloading of ships largely to a standstill. This will further aggravate the already tense situation with ship congestion on the North Sea, and the processes at the quaysides are likely to get even more out of step. Container ships have been piling up in the North Sea, while ports are becoming storage areas. ZDS negotiator Ulrike Riedel called the strike “irresponsible” in view of the disrupted supply chains and said it was to the detriment of consumers and businesses. Due to the Covid pandemic, the global traffic of container and cargo ships has been in chaos for several months. According to recent calculations by the Kiel Institute for the World Economy, more than two percent of global freight capacity is stuck in the North Sea. There are currently around 20 cargo shops waiting in the German bay area for clearance, most of them bound for Hamburg. The euro inched higher on Tuesday, reversing earlier falls that had taken it to the brink of parity with the dollar, but it stayed under heavy pressure from a potential energy supply crunch and uncertainty over the ECB's rate rise campaign. The euro fell as low as $1.00005, before edging off that level . By 1315 GMT it was up 0.15%, at $1.00540.
Neil Jones, head of currency sales at Mizuho, said markets had been 'short' the euro in anticipation of a break below parity, but "we didn't get it and now these shorts are buying back into the early New York market". One-month implied euro-dollar volatility, a gauge of expected swings, around 12.5% , the highest since March 2020. The biggest pipeline carrying Russian gas to Germany, the Nord Stream 1, began annual maintenance on Monday, with flows expected to stop for 10 days. But governments and markets are worried Russia might extend the shutdown, exacerbating the euro bloc's energy crunch and tipping its economy into recession. A dire reading from the ZEW economic research institute, reinforced the economic gloom, showing German investor sentiment nosedived in July to -53.8 points from -28.0 in June. "The market is playing cat and mouse with euro parity at the moment in the absence of any major macro drivers," said Simon Harvey, head of FX at Monex Europe, adding that Wednesday's U.S. inflation data -- expected at 8.8% for June -- could prove the catalyst. "We may have to wait for U.S. CPI...or a clearer picture for European energy markets once planned maintenance in Nord Stream comes close to finalising for euro-dollar to break the threshold," Harvey added. Euro weakness was most pronounced against the dollar. The dollar index , which tracks the unit against a basket of six counterparts with the euro most heavily weighted, earlier climbed to 108.56, its highest since October 2002, but then eased to $108.10. Analysts also cited growing uncertainty over the European Central Bank's plans to raise interest rates, initially by 25 basis points in July, then by 50 bps in September. Fed funds futures, meanwhile, price U.S. rates reaching 3.50% by March, rising from 1.58% currently. "The expectation is for the (U.S. Federal Reserve) to do 75 bps this month and its aim seems to be to get to neutral (rates) as soon as possible, while with ECB, it's more of a mixed message given the backdrop over gas," said Sarah Hewin, senior economist at Standard Chartered. Euro weakness has been a big part of the dollar index's push higher, but the greenback has been also supported by worries about growth elsewhere, with China in particular implementing strict zero-COVID policies to contain fresh outbreaks. The offshore-traded yuan approached one-month lowsat 6.753 . The dollar slipped however to 136.72 yen , down 0.5%, following Monday's jump to new 24-year highs at 137.75. The stuttering global economyis undermining commodity-focused currencies. Canada is expected to raise interest rates by 75 bps respectively on Wednesday but the Canadian dollar eased 0.2% versus U.S. dollar. G7 nations are to invest as much as $600 billion into the infrastructure of less-prosperous nations around the world, with the US footing one third of the bill over the next five years. The announcement was made on Sunday in Germany, with the money supposed to rival the Chinese Belt and Road Initiative. Flanked by other leaders of the G7 group, US President Joe Biden said Western countries were committing to “financing for quality, high-standard, sustainable infrastructure in developing and middle-income countries.” Without mentioning China by name, he said that what the G7 were doing was “fundamentally different because it’s grounded on our shared values”.
The US has long accused China of weaponizing its wealth by investing heavily into countries in Asia, Africa, and Latin America. The Trump administration claimed Beijing was pursuing “debt trap diplomacy” towards its borrowers, offering loans that the recipients ultimately can’t pay back and taking already built infrastructure as collateral. China rejects the claim, saying that its global infrastructure investments, which are estimated at $2.5 trillion, benefits both itself and the target countries. Much of the money goes into things like roads and ports, giving China increased physical access to foreign resources and markets. Since its launch almost a decade ago, the US and its allies have struggled to offer an alternative to the Chinese program. Last year, during a meeting in Cornwall in the UK, G7 nations announced their own version, named “Build Back Better World” (BBBW) to mirror the domestic plan of the Biden administration that was ultimately shunned by Republicans and some Democrats. BBBW was then renamed the Partnership for Global Infrastructure and Investment (PGII). “This isn’t aid or charity,” Biden said on Sunday, during his speech in Schloss Elmau in Germany. “It’s an investment that will deliver returns for everyone, including the American people and the people of all our nations.” “It’ll boost all of our economies, and it’s a chance for us to share our positive vision for the future and let communities around the world see themselves – and see for themselves the concrete benefits of partnering with democracies,” he said.The $200 billion commitment from the US is to be covered by a combination of federal government money with private capital from investors like pension funds, private equity and insurance funds. The EU announced its own €300 billion ($317bn) answer to Belt and Road in December last year. The White House said PGII investments will focus on four key areas, including climate resilient infrastructure and energy sources, secure communications, projects advancing gender equality and healthcare. Biden said there were “dozens of projects already underway” and gave a handful of examples. Those included, $14 million in support of Romanian efforts to build a small modular reactor (SMR) plant; a $600 million contract to build an undersea telecommunications cable to connect Singapore to France via the Middle East and the Horn of Africa; and a $320 million private development project to build hospitals in Cote d’Ivoire. Some publications like Politico noted that the Western investment plans were already undermined in terms of combating climate change. While still relevant, they took a backseat due to hiking energy prices and the EU’s plans to decouple from Russia, which led some members to rely again on coal-fired power plants instead. There is also the issue of high inflation in the US and the EU, which affects the value of the dollar and the euro, potentially reducing the actual impact of the allocated funding in the long run. Spanish oil company Repsol and Italy’s Eni will begin shipping Venezuelan oil to Europe as early as July, five people familiar with the matter told Reuters. This will resume the oil-for-debt swaps, which were suspended two years ago, when Washington intensified sanctions against Venezuela. The oil from Venezuela is intended to help Europe ease its dependence on Russian crude.
The president of Venezuela, Nicolás Maduro, confirmed in a televised press conference that the United States had authorized Chevron, Eni and Repsol to exploit their gas and oil deposits in Venezuela. “Steps are being taken, the first steps. About a week ago, the United States took small but significant steps by granting licenses to the US company Chevron, the Italian company ENI and Repsol,” he said. But while Chevron has been allowed to resume operation in the country, it has not yet been authorized to export oil to the US. The change in position comes after the US authorized European oil companies to operate in Venezuela in a bid to promote dialogue between Maduro and Venezuelan opposition groups. The green light from Washington to resume flows of oil from Venezuela to Europe could provide a symbolic boost for Maduro. US authorities communicated the news to the companies last month, but the details and the resale restrictions had not been communicated until now. The administration of US President Joe Biden hopes that Venezuelan crude oil will help Europe reduce its dependence on Russia and redirect some of Venezuela’s cargoes from China. The volume of oil expected to be supplied by Eni and Repsol from Venezuela is not large, according to one of the sources, who said that any impact on world oil prices will be modest. Eni and Repsol did not respond to requests for comment. Repsol’s financial exposure to Venezuela at the end of 2021 amounted to €298 million. According to the Spanish company’s 2021 financial statements, this amount includes: “the US dollar financing granted to the joint ventures Cardon IV, S.A. and Petroquiriquire, S.A., amounting to €166 million and €304 million, respectively, and trade receivables from [Venezuelan state-owned oil company PDVSA] Petróleos de Venezuela, S.A. amounting to €344 million [...] less provisions for liabilities and charges amounting to €500 million.” |
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