Oxagon CEO to Asharq Al-Awsat: We Hope to Redefine Concept of Industrial Cities

Oxagon industrial city is located in NEOM in northwestern Saudi Arabia. (Asharq Al-Awsat)
Oxagon industrial city is located in NEOM in northwestern Saudi Arabia. (Asharq Al-Awsat)
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Oxagon CEO to Asharq Al-Awsat: We Hope to Redefine Concept of Industrial Cities

Oxagon industrial city is located in NEOM in northwestern Saudi Arabia. (Asharq Al-Awsat)
Oxagon industrial city is located in NEOM in northwestern Saudi Arabia. (Asharq Al-Awsat)

Oxagon industrial city is hoping to redefine the concept of industrial cities in the world.

 

‘Located in NEOM, a region in northwestern Saudi Arabia, it is aiming to confront some of the world’s most pressing industrial challenges with the least impact on the environment and planet. This is a representation of NEOM’s vision to redefine livability, business, and conservation.’

 

Oxagon CEO Vishal Wanchoo told Asharq Al-Awsat that industrialists will be able to decrease their carbon footprint by using renewable energy at a 100% through operations that will be activated at the appropriate time to confront the challenges imposed by traditional industrial locations.

 

Oxagon, he stressed, embodies NEOM’s approach in changing the concept of the traditional industrial city and looking towards establishing a new model that revolves around man and innovation and consolidates values of sustainability to act as a gateway to advanced and clean sectors and industries at NEOM.

 

Oxagon boasts a strategic location on the Red Sea, he added, citing the NEOM port that will act as the main trade gateway to northwestern Saudi Arabia.

 

Moreover, he said industrial companies that are seeking to expand their operations and establish factories in Oxagon will be encouraged to adopt the best sustainable practices followed by NEOM.

 

This will help drive the circular economy, he explained. This can be achieved through the application of four strategies: design, industry, utilization and recoupment.

 

‘This approach will support the highly advanced marine port and integrated supply chain network. It will allow manufacturers at Oxagon to directly and transparently reach markets in NEOM, Saudi Arabia and the whole region in a way that can be more sustainable than moving goods by road or air, Wanchoo went on to say. The CEO explained that each container coming into Port of NEOM could save up to one tonne of CO2 emissions, compared to on-land transportation.’

 

Moreover, he revealed that plans are in place to build a system of research and innovation that will make Oxagon the optimal destination for innovators and entrepreneurs where they can be empowered to innovate and manufacture their products and put them on the market in NEOM or abroad.

 

NEOM port will act as a vital link in the direct connection with global markets, he said. This will boost the competitiveness of the region and help the growth of the Kingdom’s economy.

 

Manufacturing at Oxagon will help in social and economic development across NEOM, he stressed.

 

Industry at NEOM will be based on the fourth industrial revolution and the development of talents. This will allow companies to develop sustainable products and services.

 

At the end of the day, everything taking place at Oxagon supports NEOM’s ambitions and is aligned with Saudi Arabia’s Vision 2030, Wanchoo added.

 

Moreover, he stressed that the city’s location on the Red Sea provides a perfect opportunity for industrial companies seeking to expand their operations to enter new ones. They will also benefit from Saudi Arabia’s strategic location as an entry point to main and greater markets and provide faster contacts with local and international markets.

 

Wanchoo said what Oxagon was doing was radically different from what traditional industrial cities were doing.

 

He explained that it is working on empowering an industrial model that beats with the development of its society. “This encourages us to provide a high quality of living standard for residents and workers alike,” he added. Oxagon will provide a vibrant social environment for talents, researchers, experts and entrepreneurs.

 

He revealed that work is underway on the expansion of NEOM port that will serve the world’s largest vessels. The port is expected to have a capacity of over 1.5 million containers by 2025.

 

The year 2026 will witness the first phase of the construction of the first permanent residential compound in NEOM and Yotel Hotel will open its doors in Oxagon.

 

NEOM has also started building the world’s largest green hydrogen plant in Oxagon and it will enter production in 2026.

 

The plant will be a major player in creating job opportunities and bolster local production, added Wanchoo.

 

“The size, scale, and ambition of Oxagon is complex,” he added. “That is why we are keen on forging partnerships with companies from around the world to ensure that our vision is translated into reality.”



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
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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.