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Saudi Companies Outline Challenges in Facilitating Flow of Goods with GCC Countries

The Federation of Gulf Cooperation Council Chambers (FGCCC) aims to ensure the smooth flow of goods within member states. (Asharq Al-Awsat)
The Federation of Gulf Cooperation Council Chambers (FGCCC) aims to ensure the smooth flow of goods within member states. (Asharq Al-Awsat)
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Saudi Companies Outline Challenges in Facilitating Flow of Goods with GCC Countries

The Federation of Gulf Cooperation Council Chambers (FGCCC) aims to ensure the smooth flow of goods within member states. (Asharq Al-Awsat)
The Federation of Gulf Cooperation Council Chambers (FGCCC) aims to ensure the smooth flow of goods within member states. (Asharq Al-Awsat)

The Federation of Gulf Cooperation Council Chambers (FGCCC) is collecting proposals from member states on the technical challenges and non-tariff obstacles that hinder the agreement on the requirements for certificates of conformity and quality.

Sources told Asharq Al-Awsat that the Gulf Cooperation Council (GCC) member states continue to make progress towards completing the necessary steps to reach Gulf economic integration.

They said this step aims to understand the challenges facing the industrial and commercial sectors, whether technical or non-tariff obstacles, that affect the completion of the Gulf customs union and the common market.

The efforts exerted by the Federation help in enhancing the effective flow of goods and products between member states.

Informing Saudi companies

The Federation asked the Saudi private sector to fill out a special questionnaire outlining the challenges facing them in establishing the Gulf customs union and the mechanisms of the common Gulf market.

The Federation recently launched the first GCC Business and Tenders Gate within a series of platforms to keep pace with digital transformation and facilitate cooperation by providing and displaying the most essential Gulf trade and economic opportunities.

GCC Business and Tenders Gate is a fully functional business guide, service search engine, and business accelerator that connects all public and private businesses.

It is the only official governmental platform representing the GCC countries in all the updated tenders and projects, providing an additional unique service feature with daily updated tenders in all the GCC.

It will also update members in the six countries with all the business and tender news and the latest updates for any sector or service.

Tenders and trade

The platform is divided into three main sections: the government and private tenders section, which contains all government agencies and departments, as well as private sector tenders.

It also includes all decisions and cooperation mechanisms between local and regional companies for entrepreneurship.

The third section is a media center that includes the latest news and reports on Gulf projects, which helps investors and business owners follow up on projects and participate in them to increase the local and Gulf national product.

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Business

Ukraine Threatens to Halt Transit of Russian Oil to Europe

A view of storage tanks and pipelines at the Mero central oil tank farm, which moves crude through the Druzhba oil pipeline, near Nelahozeves, Czech Republic, August 10, 2022. REUTERS/David W Cerny/File Photo
A view of storage tanks and pipelines at the Mero central oil tank farm, which moves crude through the Druzhba oil pipeline, near Nelahozeves, Czech Republic, August 10, 2022. REUTERS/David W Cerny/File Photo
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Ukraine Threatens to Halt Transit of Russian Oil to Europe

A view of storage tanks and pipelines at the Mero central oil tank farm, which moves crude through the Druzhba oil pipeline, near Nelahozeves, Czech Republic, August 10, 2022. REUTERS/David W Cerny/File Photo
A view of storage tanks and pipelines at the Mero central oil tank farm, which moves crude through the Druzhba oil pipeline, near Nelahozeves, Czech Republic, August 10, 2022. REUTERS/David W Cerny/File Photo

A top aide to Ukrainian President Volodymyr Zelensky on Friday said Kyiv would halt the transit of Russian oil across its territory at the end of the year, when the current contract expires and is not renewed.

Mykhailo Podolyak said in an interview with the Novini.Live broadcaster that current transit contracts for Russian supplies that run through the end of the year will not be renewed.

“There is no doubt that it will all end on January 1, 2025,” he said.

Kiev says it is prepared to transport gas from the Central Asian countries or Azerbaijan to Europe, but not from Russia, as it is crucial for Ukraine to deprive Russia of its sources of income from the sale of raw materials after it attacked its neighbor well over two years ago.

The contract for the transit of Russian gas through Ukraine to Europe between the state-owned companies Gazprom and Naftogaz ends on December 31.

Despite the launch of Russia's full-scale invasion of Ukraine in February 2022, the Ukrainians have fulfilled the contract terms - in part at the insistence of its European neighbors, especially Hungary.

But the leadership in Kiev has repeatedly made it clear that it wants the shipments to end.

Meanwhile, the Czech Republic energy security envoy Vaclav Bartuska said on Friday that any potential halt in oil supplies via the Druzhba pipeline through Ukraine from Russia from next year would not be a problem for the country.

Responding to a Reuters question – on comments by Ukrainian presidential aide Mykhailo Podolyak that flows of Russian oil may stop from January – Bartuska said Ukraine had also in the past warned of a potential halt.

“This is not the first time, this time maybe they mean it seriously – we shall see,” Bartuska said in a text message. “For the Czech Republic, it is not a problem.”

To end partial dependency on the Druzhba pipeline, Czech state-owned pipeline operator MERO has been investing in raising the capacity of the TAL pipeline from Italy to Germany, which connects to the IKL pipeline supplying the Czech Republic.

From next year, the increased capacity would be sufficient for the total needs of the country’s two refineries, owned by Poland’s Orlen, of up to 8 million tons of crude per year.

MERO has said it planned to achieve the country’s independence from Russian oil from the start of 2025, although the TAL upgrade would be finished by June 2025.

On Friday, oil prices stabilized, heading for a weekly increase, as disruptions in Libyan production and Iraq’s plans to curb output raised concerns about supply.

Meanwhile, data showing that the US economy grew faster than initially estimated eased recession fears.

However, signs of weakening demand, particularly in China, capped gains.

Brent crude futures for October delivery, which expire on Friday, fell by 7 cents, or 0.09%, to $79.87 per barrel. The more actively traded November contract rose 5 cents, or 0.06%, to $78.87.

US West Texas Intermediate (WTI) crude futures added 6 cents, or 0.08%, to $75.97 per barrel.

The day before, both benchmarks had risen by more than $1, and so far this week, they have gained 1.1% and 1.6%, respectively.

Additionally, a drop in Libyan exports and the prospect of lower Iraqi crude production in September are expected to help keep the oil market undersupplied.

Over half of Libya’s oil production, around 700,000 barrels per day (bpd), was halted on Thursday, and exports were suspended at several ports due to a standoff between rival political factions.

Elsewhere, Iraq plans to reduce oil output in September as part of a plan to compensate for producing over the quota agreed with the Organization of the Petroleum Exporting Countries and its allies, a source with direct knowledge of the matter told Reuters on Thursday.

Iraq, which produced 4.25 million bpd in July, will cut output to between 3.85 million and 3.9 million bpd next month, the source said.