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Saudi Arabia Investigates First Stockpiling Attempt

Saudi Arabia Investigates First Stockpiling Attempt, Asharq Al-Awsat
Saudi Arabia Investigates First Stockpiling Attempt, Asharq Al-Awsat
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Saudi Arabia Investigates First Stockpiling Attempt

Saudi Arabia Investigates First Stockpiling Attempt, Asharq Al-Awsat
Saudi Arabia Investigates First Stockpiling Attempt, Asharq Al-Awsat

Saudi market regulators struck with an iron fist as they started investigating the first case of illegal stockpiling of medical preventative products and price hiking. Authorities have been conducting inspections to prevent market manipulation amid the coronavirus crisis.

The Ministry of Commerce and Investment and the General Authority for Competition revealed that they are investigating several market violations related to the coronavirus crisis. Among these violations was the stockpiling of sterilizers and protective face masks and an agreement among suppliers to hoard large quantities of products and sell them at a higher price later.

The ministry and authority reaffirmed that coordination of efforts to the protection of the consumer and preserve healthy market competition are ongoing.

In a statement, the two entities asked consumers to file complaints from the new online app created, “Balagh Tijari,” through relevant websites, or by calling the joint call center.

Oversight teams from the ministry continued to follow-up on the markets in all regions of the Kingdom.

On Monday, they conducted 8,000 inspection visits in Riyadh to verify the availability of goods and asses the stocks in markets and outlets.

They had received 12,000 reports and complaints in the Riyadh region that included the hiking of prices of products and other commercial irregularities. The violations were addressed swiftly with violators receiving the just penalties.

In other news, the Saudi General Authority of Civil Aviation (GACA), in cooperation with the concerned authorities, announced that all of the Kingdom’s airports will continue to work as usual in the reception of air freight cargo around the clock.

The measures taken by GACA include requiring all relevant authorities and air freight companies operating in the Kingdom's airports to comply with health and safety requirements and precautionary measures to combat the novel coronavirus (Covid-19).

All the concerned departments have taken all the necessary precautions to sterilize and disinfect all the air cargo stations at the Kingdom's airports. Furthermore, medical checkpoints have been established in all stations for staff and visitors alike. This in addition to providing the working teams with all means of protection and prevention measures to ensure the flow of goods and services to all the Kingdom’s cities safely and securely.

GACA has called on all air cargo companies operating in the Kingdom's airports to implement the precautionary and preventive measures implemented at the Kingdom’s airports. This in addition to adhering to strict health guidelines followed in the Kingdom of Saudi Arabia to prevent the emergence of Covid-19.

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Russian Gas Flows via Ukraine for Last Days as Transit Deal Crumbles

A view shows the Orenburg gas processing plant of Gazprom in the Orenburg Region, Russia September 1, 2023. REUTERS/Alexander Manzyuk/File Photo
A view shows the Orenburg gas processing plant of Gazprom in the Orenburg Region, Russia September 1, 2023. REUTERS/Alexander Manzyuk/File Photo
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Russian Gas Flows via Ukraine for Last Days as Transit Deal Crumbles

A view shows the Orenburg gas processing plant of Gazprom in the Orenburg Region, Russia September 1, 2023. REUTERS/Alexander Manzyuk/File Photo
A view shows the Orenburg gas processing plant of Gazprom in the Orenburg Region, Russia September 1, 2023. REUTERS/Alexander Manzyuk/File Photo

Russia pumped gas on Monday to European customers via Ukraine for one of the last days before a key transit deal expires at the end of the year, marking the almost complete loss of Russia's once mighty hold over the European gas market.

Supplies of Russian gas via Ukraine are due to stop from the early hours of Jan. 1 after the current five-year deal expires. Kyiv has refused to negotiate a new transit deal as its war against Russia approaches the end of a third year.

Russia and the Soviet Union spent half a century building up a major share of the European gas market, which at its peak stood at 35%, but the war in Ukraine has all but destroyed that business for Gazprom, Russia's state-controlled gas giant.

Moscow has lost its share to rivals such as Norway, the United States and Qatar since the 2022 invasion of Ukraine, which prompted the EU to cut its dependence on Russian gas.

The slump in Russian gas supplies to Europe pushed gas prices to an all-time high, stoking inflation and raising the cost of living across the continent.

The end of the transit deal is unlikely to cause a repeat of the 2022 EU gas price rally as the remaining volumes are relatively small. Russia shipped about 15 billion cubic metres (bcm) of gas via Ukraine in 2023 - only 8% of peak Russian gas flows to Europe via various routes in 2018-2019.

President Vladimir Putin said last week that there was no time left this year to sign a new Ukrainian gas transit deal, laying the blame on Kyiv for refusing to extend the agreement, according to Reuters.

The Soviet-era Urengoy-Pomary-Uzhgorod pipeline brings gas from Siberia via the town of Sudzha - now under the control of Ukrainian soldiers - in Russia's Kursk region. It then flows through Ukraine to Slovakia. In Slovakia, the gas pipeline splits into branches going to the Czech Republic and Austria.

Most other Russian gas routes to Europe are shut, including Yamal-Europe via Belarus and Nord Stream under the Baltic that was blown up in 2022.

The only other operational Russian gas pipeline routes to Europe are the Blue Stream and TurkStream to Turkey under the Black Sea. Turkey sends some Russian gas volumes onward to Europe including to Hungary.

DISPUTES

Gazprom plunged to a net loss of $7 billion in 2023, its first annual loss since 1999, because of the loss of the EU's gas markets.

Disruptions to gas supplies have also sparked numerous contractual and political disputes.

On Monday, Moldovan Prime Minister Dorin Recean ordered his government to start preparing for the possible nationalisation of gas company Moldovagaz, which is 50%-owned by Gazprom.

Gazprom had said it plans to suspend gas exports to Moldova from 0500 GMT on Jan. 1 due to unpaid debts. Moldova disputes it is in arrears for previous gas shipments and accuses Russia of destabilising the country, which Moscow denies.

Slovakian Prime Minister Robert Fico said on Friday that Slovakia would consider reciprocal measures against Ukraine such as halting back-up electricity supplies if Kyiv stops the gas transit from Jan. 1.

Ukrainian President Volodymyr Zelenskiy accused Fico on Saturday of opening a "second energy front" against Ukraine on the orders of Russia. Slovakia denied the accusation.

Gazprom said that it will send 42.4 million cubic metres of gas to Europe via Ukraine on Monday, a volume in line with recent days.

Reuters reported last month that Gazprom is making the assumption that no more gas will flow to Europe via Ukraine after Dec. 31 in its internal planning for 2025.

Ukraine could consider continued transit of Russian gas on the condition that Moscow does not receive money for the fuel until after the war, Zelenskiy said earlier this month.