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Saudi Arabia to Terminate Financial Claims in June

Saudi Arabia is aiming to accelerate and facilitate the disbursement of private sector dues through Etimad (Asharq Al-Awsat)
Saudi Arabia is aiming to accelerate and facilitate the disbursement of private sector dues through Etimad (Asharq Al-Awsat)
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Saudi Arabia to Terminate Financial Claims in June

Saudi Arabia is aiming to accelerate and facilitate the disbursement of private sector dues through Etimad (Asharq Al-Awsat)
Saudi Arabia is aiming to accelerate and facilitate the disbursement of private sector dues through Etimad (Asharq Al-Awsat)

The Saudi Finance Ministry terminated some services for financial claims through "Etimad," a government platform that supports a partnership between the public and private sectors to achieve development goals and facilitate service procedures.

Asharq Al-Awsat learned that the authorities intend to stop the service permanently at the end of next June and transfer it to the private sector.

The Ministry of Finance and the National Center for Government Resource Systems (NCGR) aim to enable the private sector to pay financial dues according to their deadlines.

According to the information, the National Center informed the private sector that the service is currently available to all contractors and suppliers on the Etimad platform to start taking the necessary authorizations under the designated guideline, using services and filing financial claims.

The Ministry and the Center recently launched a service for raising financial claims from the private sector for contracts registered on the platform and only submitting them to government agencies through the platform through the private sector.

Contractors and suppliers from the private sector can submit their financial claims directly to government agencies through Etimad and complete the procedures for the payments electronically, provided that this is activated gradually.

In 2021, the Ministry, in partnership with NCGR, launched the financial claims service to enable the private sector to implement its projects and financial transactions according to the highest standards of efficiency and transparency within the efforts aimed at achieving Vision 2030.

Assistant Minister of Finance for Financial Affairs Yaser al-Quhidan explained that the service's launch comes within the framework of the government's continued support of the private sector to promote economic growth to achieve the goals of Vision 2030.

The CEO of NCGR, Ahmed al-Suwaiyan, stated that the service supports the private sector and the government agency in raising financial claims for contracts and preventing duplication of requests from both parties. It allows the companies and institutions to review the status of the monetary claim and obtain certificates.

The platform also facilitates following up the procedures for issuing exchange orders and payments, allowing the disbursement process to be completed following the contract terms.

Suwaiyan pointed out that the service allows the private sector to submit financial claims directly to government agencies through an approval platform, complete the payment procedures electronically, and monitor performance through service-level agreements.

The Etimad platform achieved a qualitative leap in the services of contracts, payments, financial dues for employees, revenue collection, and other services provided to the beneficiary sectors, reflecting the volume of efforts made with the aim of digital transformation.

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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
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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.