Russia Experiences Record Year in Oil, Gas

The company logo of Russian natural gas producer Gazprom is seen on an advertisement installed on the roof of a building in St. Petersburg, November 14, 2013. REUTERS/Alexander Demianchuk
The company logo of Russian natural gas producer Gazprom is seen on an advertisement installed on the roof of a building in St. Petersburg, November 14, 2013. REUTERS/Alexander Demianchuk
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Russia Experiences Record Year in Oil, Gas

The company logo of Russian natural gas producer Gazprom is seen on an advertisement installed on the roof of a building in St. Petersburg, November 14, 2013. REUTERS/Alexander Demianchuk
The company logo of Russian natural gas producer Gazprom is seen on an advertisement installed on the roof of a building in St. Petersburg, November 14, 2013. REUTERS/Alexander Demianchuk

The year 2017 witnessed record levels in oil and natural gas production and gas exports to Europe, which is the most important market for Russian gas.

Russia's successes have not stopped at this point as the country seeks to become a bigger player in the liquefied natural gas (LNG) market and export more crude oil and gas to China, the world's largest energy consumer.

The most important things in the energy sector currently between Russia and China are due to the Russian-Chinese rapprochement, which resulted in more pipelines between them and more crude oil exports, replacing Saudi Arabia as the top exporter to China.

With the beginning of 2018, the two countries doubled China’s ESPO crude import capacity to 30 million tons annually, or about 600,000 barrels a day.

The development of the ESPO crude network will help increase Russia's exports to Asia. The pipeline will directly supply China with oil from eastern Russia as well as a direct pipeline to the Russian port of Kozmino to export ESPO crude via ships to the rest of Asian countries.

Russia exported 54 million metric tons from January till November 2017 to China, 15.5 percent more compared to the same period in 2016.

Saudi Arabia, the world's most committed to cutting global output, remains second with China's imports of Saudi oil this year growing by 0.1 percent.

“Russia's gas exports to Europe and Turkey rose by 8.1 percent to a record high 193.9 billion cubic meters (bcm) in 2017,” head of Gazprom Alexei Miller said in a statement on Wednesday, despite EU efforts to cut its reliance on Russian energy.

Gazprom, run by Miller, a close ally of Russian President Vladimir Putin, supplies more than a third of the European Union's gas.

However, the European Commission has called on EU member states to curb their reliance on Russian energy following Moscow's 2014 annexation of Crimea from Ukraine and a clash over gas deliveries between Kiev and Moscow that saw Gazprom cut off supply.

Gazprom said its gas deliveries to its largest customer, Germany, jumped by 7.1 percent to 53.4 bcm last year, a new record high.

To help safeguard its market share, Gazprom has quietly agreed price deals with big customers and caved in to EU rules it once flouted. Gazprom sources said they have drawn lessons from recent defeats on the European gas market.

Lithuania, which began importing LNG from Norway in 2014 and became the first ex-Soviet state to buy US natural gas in August, refused to renew its contract in 2015.

The company faces more trouble, analysts said, as its major long-term contracts expire between 2021 and 2035. Poland, a gas client since 1944, has said it will not renew its contract in 2022.

On the other hand, Russian natural gas production rose to an all-time high in 2017, supported by increased exports to Europe as well as rising domestic demand.

Government data published Tuesday showed that output jumped 7.9 percent to beat a 2011 record.

With plans to expand into China and new liquefied natural gas plants, the country may close the gap on the US, which leapfrogged Russia to the top spot in global production of the fuel nine years ago, according to Bloomberg.

In terms of its production of oil, Russia’s oil output increased to an average 10.98 million barrels a day in 2017, up 0.1 percent from the previous year.



Trump's Greenland Threat Puts Europe Inc back in Tariff Crosshairs

A worker adjusts European Union and US flags at the EU Commission headquarters in Brussels, November 11, 2013.
A worker adjusts European Union and US flags at the EU Commission headquarters in Brussels, November 11, 2013.
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Trump's Greenland Threat Puts Europe Inc back in Tariff Crosshairs

A worker adjusts European Union and US flags at the EU Commission headquarters in Brussels, November 11, 2013.
A worker adjusts European Union and US flags at the EU Commission headquarters in Brussels, November 11, 2013.

Just as European companies were getting used to last year's hard-won US trade tariff deals, President Donald Trump has put them back in his ​crosshairs with an explosive threat to place levies on nations that oppose his planned takeover of Greenland.

Trump on Saturday said he would put rising tariffs from February 1 on goods imported from EU members Denmark, Sweden, France, Germany, the Netherlands and Finland, along with Britain and Norway, until the US is allowed to buy Greenland, a step major EU states decried as blackmail.

On Sunday, European Union ambassadors reached broad agreement to intensify efforts to dissuade Trump from imposing those tariffs, while also readying a package of retaliatory measures should the duties go ahead, EU diplomats said.

The shock move has rattled through industry and sent shockwaves through markets amid fears of a return to the volatility of last year's trade war, which was only eased with tariff deals reached in the middle of the year.

"This is a very serious situation, the scale of which is unknown," Gabriel Picard, ‌chairman of the French ‌wine and spirits export lobby FEVS, told Reuters.

He said the industry had already seen a ‌20% ⁠to ​25% hit ‌to US activity in the second half of last year from previous trade measures, and new tariffs would bring a "material" impact.

But he said what was happening went far beyond sectoral issues. "It is more a matter of political contacts and political intent that must be taken to the highest level in Europe, so that Europe, once again, is united, coordinated, and if possible speaks with one voice."

STAND-OFF COULD BRING BACK LAST YEAR'S TRADE WAR

In a post on Truth Social, Trump said additional 10% import tariffs would take effect next month on goods from the listed European nations — all already subject to tariffs imposed by the US president last year of between 10% and 15%.

The bloc - which had an estimated $1.5 trillion in goods and services trade with the US in 2024 - looks set ⁠to fight back. Europe has major carmakers in Germany, drugmakers in Denmark and Ireland, and consumer and luxury goods firms from Italy to France.

EU leaders are set to discuss options at an emergency ‌summit in Brussels on Thursday, including a 93 billion euro ($107.7 billion) package of tariffs on ‍US imports that could automatically kick in on February 6 after a ‍six-month pause.

The other is the so far never used "Anti-Coercion Instrument" (ACI), which could limit access to public tenders, investments or banking activity or restrict ‍trade in services, in which the US has a surplus with the bloc.

Analysts said the key question was how Europe responded - with a more "classic" trade war tit-for-tat tariff retaliation, or an even tougher approach.

"The most likely way forward is a return to the trade war that was put on hold in high-level US agreements with the UK and the EU in summer," said Carsten Nickel, deputy director of research at Teneo in London.

COMPANIES WILL LOOK TO TRADE WITH 'LESS PROBLEMATIC NATIONS'

German submarine maker ​TKMS CEO Oliver Burkhard said the Greenland threat was perhaps the jolt that Europe needed to toughen its approach and focus on developing its own joint programmes to be more independent from the US.

"It is probably necessary... to get ⁠a kick in the shin to realise that we may have to suit up differently in the future," he told Reuters.

Susannah Streeter, chief investment strategist at Wealth Club, said the new threat created "another layer" of complexity for firms grappling with an already "chaotic" US market. Firms had little capacity to soak up new tariffs, she added.

"A trade war only creates losers," said Christophe Aufrere, director general of French autos association the PFA.

An official at a French industry association that represents the country's largest firms added the Greenland issue was turning tariffs into a "tool for political pressure", and called for the region to reduce its dependency on the US market.

Neil Shearing, group chief economist at Capital Economics, pointed out that some EU countries - Spain, Italy and others - were not on the tariff list, which would likely see "re-routing" of trade within the EU free trade bloc to avoid the taxes.

Analysts added the new tariffs - if imposed - would likely hurt Trump. They would push up US prices and lead to front-loading of exports before the tariffs kicked in, while encouraging companies to seek new markets.

"For Europe, this is a bad geopolitical headache and a moderately significant economic problem. But it could also backfire for Trump," said Holger Schmieding, London-based chief economist at Berenberg.

"Logic ‌still points to an outcome that respects Greenland's right to self-determination, strengthens security in the Arctic for NATO as a whole, and largely avoids economic damage for Europe and the US."


IMF Upgrades Outlook for Surprisingly Resilient World Economy to 3.3% Growth this Year

FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier//File Photo/File Photo
FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier//File Photo/File Photo
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IMF Upgrades Outlook for Surprisingly Resilient World Economy to 3.3% Growth this Year

FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier//File Photo/File Photo
FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier//File Photo/File Photo

An unexpectedly sturdy world economy is likely to shrug off President Donald Trump's protectionist trade policies this year, thanks partly to a surge of investment in artificial intelligence in North America and Asia, the International Monetary Fund said in a report out Monday.

The 191-nation lending organization expects that global growth will come in at 3.3% this year, same as in 2025 but up from the 3.1% it had forecast for 2026 back in October, The Associated Press reported.

The world economy "continues to show notable resilience despite significant US-led trade disruptions and heightened uncertainty,'' IMF chief economist Pierre-Olivier Gourinchas and his colleague Tobias Adrian wrote in a blog post accompanying the latest update to the fund's World Economic Outlook.

The US economy, benefiting from the strongest pace of technology investment since 2001, is forecast to expand 2.4% this year, an upgrade on the fund's October forecast and on expected 2025 growth — both 2.1%.

China — the world's second-largest economy — is forecast to see 4.5% growth, an improvement on the 4.2% the IMF had predicted October, partly because a trade truce with the United States has reduced American tariffs on Chinese exports.

India, which has supplanted China as the world's fastest-growing major economy, is expected to see growth decelerate from 7.3% last year (when it was juiced by an unexpectedly strong second half) to a still-healthy 6.4% in 2026.


France Says Still Loyal to Syria Kurds, Hails Ceasefire

Syrian army personnel celebrate as government forces enter Raqqa city following the withdrawal of Syrian Democratic Forces, in Raqqa, Syria, January 18, 2026. REUTERS/Karam al-Masri
Syrian army personnel celebrate as government forces enter Raqqa city following the withdrawal of Syrian Democratic Forces, in Raqqa, Syria, January 18, 2026. REUTERS/Karam al-Masri
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France Says Still Loyal to Syria Kurds, Hails Ceasefire

Syrian army personnel celebrate as government forces enter Raqqa city following the withdrawal of Syrian Democratic Forces, in Raqqa, Syria, January 18, 2026. REUTERS/Karam al-Masri
Syrian army personnel celebrate as government forces enter Raqqa city following the withdrawal of Syrian Democratic Forces, in Raqqa, Syria, January 18, 2026. REUTERS/Karam al-Masri

France on Monday welcomed a ceasefire between the Syrian government and Kurdish-led forces and stressed it remained loyal to the latter who spearheaded the battle against the ISIS group.

"France is faithful to its allies," the foreign ministry said, urging all sides to respect the ceasefire deal, which will also see the Kurdish administration and forces integrate into the state after months of stalled negotiations.