Archives for July 2018

The project has been included in the state armament program though 2027 and work on the new aircraft will begin within that time frame, according to Russian Deputy Prime Minister Yuri Borisov.

In June, Russia said it will resume the production of the Antonov An-124 jet, which is still one of the world’s heaviest cargo airplanes. The jet was first constructed by the Antonov Design Bureau, which was established in 1946 in the Russian city of Novosibirsk but later relocated to Kiev, Ukraine.

Russia prepares for production of iconic Soviet-era megaplane

Russia says it has the rights for the aircraft despite Ukraine’s claim on intellectual property. The new jet will be significantly modified to meet the modern requirements and will come under a new brand.

Analysts have said that Russia has the capacity to build the aircraft, but the country needs a significant update of the An-124 or even a new jet.

“The Antonov Bureau, which is located in Ukraine, is now doing everything possible to prohibit us from producing these aircraft – although even in Soviet times, technologies were transferred to the relevant enterprises, and we have the right to produce these aircraft. But in any case, probably, while there is no big need to resume production of the Ruslan aircraft, there is a need for modernization. And then it’s easier, probably, to start making a new plane,” Ph.D. in Engineering and honored military pilot of Russia Vladimir Popov told RIA Novosti.

The Antonov-124 can carry super-heavy and oversized cargo up to 120 tons across 4,500 kilometers at a height of up to 10,000 meters. The jet completed its maiden flight in December 1982 and entered service in January 1986. The aircraft is 36m long and 4.4m high; it can operate under 60°C below zero and 45°C above zero.

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Article source: https://www.rt.com/business/434623-russia-an124-new-jet-production/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“We are in the G20 with five of those countries. I wish they would take the necessary steps to let us in and we could take our place in BRICS,” the Turkish president told the Hurriyet Daily News on the sidelines of the group’s forum in the South African city of Johannesburg. “If you take us in the name of the platform would become BRICST.”

BRICS gearing up for digital revolution

According to Erdogan, the suggestion was warmly welcomed by the member states, especially by China. He reportedly said that the BRICS members had been considering adding other nations in the group.

“Especially China says that it stands in favor of enlargement. I have seen that they are considering involving other countries in this platform. They are not opposed to it,” Erdogan said, as quoted by the media.

Turkey was invited to the 10th annual meeting of the group of emerging economies, which took place on July 25-27, as the term chair of the Organization of Islamic Cooperation. The Turkish president attended the summit together with the country’s foreign minister, finance and treasury minister, defense minister, commerce minister, and the ruling Justice and Development Party.

The multinational grouping was founded in 2006 during the St. Petersburg International Economic Forum. Initially, it was formed by Brazil, Russia, India and China, with South Africa joining the group in 2010. The current participants represent more than 40 percent of the world’s population and 25 percent of global GDP.

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Article source: https://www.rt.com/business/434610-turkey-wants-join-brics-erdogan/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The problem is especially acute for independent, regional, family-run breweries like Fiege in the western German city of Bochum. The brewery’s spokesperson told Deutsche Welle that Fiege normally bottles 100,000 to 120,000 beers a day, whereas this summer that figure is up to 150,000 to 160,000.

The struggling brewery has even launched an urgent appeal to consumers via Facebook.

“We need your help,” the brewery wrote. “Although we regularly buy new empty bottles, they’re becoming scarce in our bottling facility. So before you go on summer holidays, please bring your Moritz Fiege empties back to the shop. First the deposit, then the party!”

The issue is “dramatic through the industry,” according to the publisher of a leading German drinks industry magazine which was cited by the dpa news agency. The German Brewers Association also said that the scarcity of containers is “especially pronounced” this summer.

Soused sea birds? Charity blames breweries for turning seagulls into boozehounds

Statistics showed there are an estimated two billion reusable beer bottles in circulation among Germany’s 82.6 million people. They are being refilled on average 36 times.

Bottles in Germany vary from dumpies (also called “steinies”) to Vichies to longnecks. They are mostly glass and some breweries “personalize” them by having their names embossed on the glass.

Cans, used in the US and the UK, are considered being “unsexy” and environmentally unfriendly. Breweries can’t order more new bottles that are produced seasonally. The Fiege spokesperson says that orders have to be placed a year in advance, but breweries don’t know what the next summer’s weather, and hence consumption, will be like.

Response to Fiege Facebook call for empty bottles has been “overwhelming.” Beer fans brought carloads of bottles and beer crates. One woman even wrote in from Guatemala that she had a bottle. Several users responded with pictures of returnables, pledging that help was on the way.

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Article source: https://www.rt.com/business/434575-beer-producers-lack-bottles/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Saudi Arabia temporarily halted all oil shipments through the Bab al-Mandeb strait after Saudi Aramco reported attacks from Houthi rebels on two oil tankers. The two ships in question were very large crude carriers (VLCCs), each carrying 1 million barrels of oil, and one of them sustained minor damage. The Houthis said that they have the naval capability to hit Saudi ports and other targets in the Red Sea, according to Reuters.

In response, Saudi energy minister suspended oil shipments through the strait. “Saudi Arabia is temporarily halting all oil shipments through Bab al-Mandeb strait immediately until the situation becomes clearer and the maritime transit through Bab al-Mandeb is safe,” Khalid al-Falih said. The Kuwait Oil Tanker Company said that it might also suspend tanker traffic through the narrow chokepoint.

Saudi Arabia halts oil shipments through key waterway after attack on tanker

The sudden risk to two of the world’s most critical chokepoints has pushed up oil prices a bit this week, although serious outages have yet to materialize.

Nearly two-thirds of the world’s oil trade travels via maritime routes. Here is a quick rundown of the top global chokepoints for the oil trade.

1. Strait of Hormuz. The most vital chokepoint in the world sees nearly 19 million barrels per day (mb/d) of oil traffic, according to the EIA. At its narrowest point, Hormuz is only 21 miles wide. Through that narrow passage, oil exports from Iraq, Iran, Kuwait, Bahrain, Qatar (including large volumes LNG exports), the UAE and Saudi Arabia must pass. The US Navy patrols the area because of its strategic importance. Iran has threatened to disrupt oil traffic through the Strait, but for now the market is assuming that is all bluster.

2. Strait of Malacca. The second most important chokepoint in terms of oil volumes is the Strait of Malacca, between Indonesia and Malaysia, which saw 16 mb/d of oil in 2016. The Strait links the Indian and Pacific Oceans, and is the main route for oil from the Middle East to reach Asian markets. The Strait is only 1.7 miles wide at its narrowest point, “creating a natural bottleneck with the potential for collisions, grounding, or oil spills,” according to the EIA. China, the largest oil importer in the world, has a strategic interest in seeing uninterrupted tanker traffic through the Strait.

3. Suez Canal and SUMED pipeline. Located in Egypt, the Suez Canal is another crucial chokepoint. Combined with the SUMED pipeline, which bypasses the canal and connects the Mediterranean to the Red Sea, the two routes account for roughly nine percent of the world’s daily seaborne oil, or 5.5 mb/d. Most of the oil goes north, from the Middle East to Europe. The Suez Canal cannot handle the largest oil ships, ultra-large crude carriers (ULCCs), and it can only handle VLCCs that are not fully laden. As such, VLCCs can offload some of their cargo onto the SUMED pipeline, and then the lighter ship can pass through the canal, picking up the oil at the other end of the pipeline in the Mediterranean. The SUMED pipeline can carry 2.34 mb/d, and offers a hedge of sorts against an outage at the Suez Canal.

4. Bab el-Mandeb. The Strait of Bab el-Mandeb is a narrow passage between the horn of Africa and the Middle East (between Djibouti and Yemen, specifically). It connects the Red Sea and the Gulf of Aden, or more broadly, it is the linkage between the Mediterranean and the Indian Ocean. This chokepoint saw just under 5 mb/d of oil traffic in 2016, but its importance is magnified for two reasons. First, most oil that has to pass through the Suez Canal/SUMED pipeline must first pass through the Bab el-Mandeb, so, tankers have multiple obstacles on this Middle East-to-Europe route. Second, it is, at this point, close in proximity to the war in Yemen.

There are a series of other smaller chokepoints, but these four are the most important in terms of size of the trade and because of the risk. An outage at any of these locations, even for a brief period of time, has the potential to force steep oil price increases, with the effects magnified by the size and duration of the outage. Even the whiff of a potential outage, particularly when the oil market is tight, can add a few dollars per barrel as a risk premium.

This article was originally published on Oilprice.com

Article source: https://www.rt.com/business/434573-key-chokepoints-for-oil/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

WALMART

US retailer Walmart, with revenue of $486 billion in 2017, out-earned the sixth-largest economy in the euro zone – Belgium (with GDP of $468 billion). If it were a country, Walmart would be ranked 24th in the world by GDP.

VOLKSWAGEN

Revenues of German automaker Volkswagen are greater than Chile’s GDP. The company, which has been hit by the ‘Dieselgate’ scandal, earned $276 billion last year. Chile’s GDP in 2016 was $250 billion, and it is considered by many to be the most stable nation in South America, ahead of other nations such as Argentina, Brazil, and Colombia. Volkswagen would be number 43 in the world if its revenue represented its GDP.

APPLE

US technology giant Apple would be 47th in the world by GDP if it were a country. The company, which has been accused of mistreating and underpaying their employees, hiding money offshore, and not paying taxes, earned $229 billion last year. In comparison, Portugal’s GDP in 2016 was $205 billion.

AMAZON

Online retailer Amazon, which is close to surpassing Apple as the world’s most valuable company, earned almost $118 billion in 2017. Its revenue exceeded the GDP of Kuwait ($111 billion). Amazon CEO Jeff Bezos has recently become the richest man in modern history, with his wealth topping $150 billion this month.

ALPHABET

Google’s parent company, Alphabet, earned more last year than Puerto Rico, which has a GDP of $105 billion. Alphabet revenues in 2017 totaled $111 billion. Going off its revenues, the company would be 59th in the world by GDP if it were a country.

Experts say globalization is largely responsible for companies being able to grow to such sizes. However, bigger does not always mean better. Many multinational corporations, including those from the list above, have generated negative headlines and are among the most hated.

Statistics show that salaries of CEOs have ballooned over the past 50 years, extending the gaps between them and their employees. Today, these ‘fat cats’ can earn the annual salary of a typical worker by lunchtime. Walmart CEO Doug McMillon’s total compensation rose two percent in 2017 to $22.8 million. Meanwhile, the company’s average employee earned $19,177 in the same period.

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Article source: https://www.rt.com/business/434516-companies-countries-gdp-revenue/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Some nations have started to either repatriate gold from abroad or actively buy the precious metal over recent years. Last year, the German central bank (Bundesbank) brought back 674 tons of gold reserves kept in Paris and New York since the Cold War. Earlier this year, Turkish media reported that in 2017 Ankara repatriated 220 tons of gold from abroad with 28.7 tons was brought back from the US. At the same time, the National Bank of Hungary announced plans to repatriate the country’s 100,000 ounces (3 tons) of gold reserves from London.

Dollar detox: Russia’s gold reserves near 2000 tons to set historic benchmark

Over the recent decade, central banks across the globe turned from being net sellers of gold to net buyers of gold with official sector activity jumping 36 percent to 366 tons in 2017 against the previous year. Demand in the first quarter of the current year was up 42 percent year-on-year, with purchases totaling 116.5 tons for the highest first quarter total since 2014, according to the World Gold Council.

Russia, which is currently number five among the countries with the largest gold reserves of nearly 2,000 tons, has been the biggest purchaser of the precious metal for the past six years. In 2017, the country’s central bank bought 224 tons of bullion with another 106 tons purchased in the first six months of the current year. The Bank of Russia explains the strategy as part of diversifying the country’s reserves away from the US dollar.

Nearly two thirds of the nation’s gold is reportedly kept in a Central Bank repository in Moscow with the rest is stored in the country’s Northern capital of St. Petersburg and the Ural city of Yekaterinburg. Russia’s gold is reportedly kept in bullions weighing from 100 grams to 14 kilograms.

The nation’s affection for gold dates back to the Tsarist era. At the time, the precious metal was used to boost the national currency. In 1894, the Russian Empire’s gold reserves reached 1,400 tons, and were the world’s largest until 1914. Gold holdings were significantly run down by the First World War and the subsequent Russian Revolution, as Russia had to pay off loans to foreign banks. Most of the Tsarist era reserves were spent by the Bolshevik government on food and industrial equipment with only 150 tons remaining in the treasury by 1928.

During the Stalin era the country’s gold bullion reserves grew again, as the Soviet leader believed the precious metal to be one of the key pillars for the economy’s rapid industrialization. Gold reserves increased to 2,500 tons during the period, but gradually decreased to only 290 tons by October 1991.

Russia’s gold mines are mostly located in the Far Eastern region of Magadan. The precious metal is also mined in Chukotka, Yakutia, Irkutsk and Amur region, Zabaykalsky Krai, as well as in the regions of Sverdlovsk and Chelyabinsk and the republics of Buryatia and Bashkortostan.

Among the biggest companies mining gold in the country are; Polyus Gold, one of the 10 biggest gold mining companies globally by output, Toronto-based Kinross Gold Corporation, and Russia’s miners Polymetal International, UGC group and GV Gold.

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Article source: https://www.rt.com/business/434500-russia-gold-reserves-history/?utm_source=rss&utm_medium=rss&utm_campaign=RSS