عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Suez Canal Authority Discusses Red Sea Crisis, its Impact on Global Supply Chains

A giant ship passes through the Suez Canal. (Suez Canal website)
A giant ship passes through the Suez Canal. (Suez Canal website)
TT
TT

Suez Canal Authority Discusses Red Sea Crisis, its Impact on Global Supply Chains

A giant ship passes through the Suez Canal. (Suez Canal website)
A giant ship passes through the Suez Canal. (Suez Canal website)

Chairman of the Suez Canal Authority (SCA) Ossama Rabie discussed the current situation in the Red Sea and Bab el-Mandeb region and their impact on the sustainability of global supply chains.

Rabie met with Secretary General of the International Chamber of Shipping (ICS) Guy Platten and Head of Marine and Aviation at Lloyd's Market Association (LMA) Neil Roberts via video conference.

Rabie stressed the Authority's keenness to promote cooperation with all the international maritime organizations and institutions.

He indicated that the SCA discussed the repercussions of the current crisis with its clients and presented insights on facing the related challenges to minimize its impact on global trade.

The official explained that the current crisis requires the consolidation of all efforts, the exchange of viewpoints on its repercussions, and the identification of its tangible impacts on global supply chains and all the sectors related to maritime transportation, including the naval insurance sector. The sector is witnessing increased costs for vessels passing through the Red Sea and Bab el-Mandeb Strait.

For his part, Platten expressed his appreciation of the SCA's efforts to achieve effective communication with all the key players in the maritime community.

He emphasized the positive impact of communication on understanding the current conditions in the maritime transport market and the consecutive variables it witnesses.

Also, the LMA chief clarified that the ongoing tensions in the Red Sea region have led to numerous concerns among ship owners and shipping lines regarding the safety of the vessels and crews, eventually leading to increased maritime insurance costs.

Roberts stressed that for matters to return to normal, there needs to be a de-escalation of the situation and a recovery of the international maritime community's confidence.

Most Viewed

 
 
Business

US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
TT
TT

US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo

The United States imposed new sanctions on Russia's Gazprombank on Thursday, the Treasury Department said, as President Joe Biden steps up actions to punish Moscow for its invasion of Ukraine before he leaves office in January.
The move, which wields the department's most powerful sanctions tool, effectively kicks Gazprombank out of the US banking system, bans its trade with Americans and freezes its US assets, Reuters reported.
Gazprombank is one of Russia's largest banks and is partially owned by Kremlin-owned gas company Gazprom. Since Russia's invasion in February 2022, Ukraine has been urging the US to impose more sanctions on the bank, which receives payments for natural gas from Gazprom's customers in Europe.
The fresh sanctions come days after the Biden administration allowed Kyiv to use US ATACMS missiles to strike Russian territory. On Tuesday, Ukraine fired the weapons, the longest range missiles Washington has supplied for such attacks on Russia, on the war's 1,000th day.
The Treasury also imposed sanctions on 50 small-to-medium Russian banks to curtail the country's connections to the international financial system and prevent it from abusing it to pay for technology and equipment needed for the war. It warned that foreign financial institutions that maintain correspondent relationships with the targeted banks "entails significant sanctions risk."
"This sweeping action will make it harder for the Kremlin to evade US sanctions and fund and equip its military," Treasury Secretary Janet Yellen said. "We will continue to take decisive steps against any financial channels Russia uses to support its illegal and unprovoked war in Ukraine."
Gazprombank said Washington's latest move would not affect its operations. The Russian embassy in Washington did not respond to requests for comment.
Along with the sanctions, Treasury also issued two new general licenses authorizing US entities to wind down transactions involving Gazprombank, among other financial institutions, and to take steps to divest from debt or equity issued by Gazprombank.
Gazprombank is a conduit for Russia to purchase military materiel in its war against Ukraine, the Treasury said. The Russian government also uses the bank to pay its soldiers, including for combat bonuses, and to compensate the families of its soldiers killed in the war.
The administration believes the new sanctions improve Ukraine's position on the battlefield and ability to achieve a just peace, a source familiar with the matter said.
COLLATERAL IMPACT
While Gazprombank has been on the administration's radar for years, it has been seen as a last resort because of its focus on energy and the desire to avoid collateral impact on Europe, a Washington-based trade lawyer said.
"I think that the current administration is trying to put as much pressure and add as many sanctions as possible prior to January 20th to make it harder for the next administration to unwind," said the lawyer, Douglas Jacobson.
Officials in Slovakia and Hungary said they were studying the impacts of the new US sanctions.
Trump would have the power to remove the sanctions, which were imposed under an executive order by Biden, if he wants to take a different stance, Jacobson said.
After Russia's invasion in 2022, the Treasury placed debt and equity restrictions on 13 Russian firms, including Gazprombank, Sberbank and the Russian Agricultural Bank.
The US Treasury has also worked to provide Ukraine with funds from windfall proceeds of frozen Russian assets.