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Kremlin Stresses Strong Relations With Saudi Arabia, no Oil Price War

A woman holds new 200 and 2,000 rouble banknotes in a bank in Moscow, Russia November 21, 2017. REUTERS/Maxim Shemetov
A woman holds new 200 and 2,000 rouble banknotes in a bank in Moscow, Russia November 21, 2017. REUTERS/Maxim Shemetov
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Kremlin Stresses Strong Relations With Saudi Arabia, no Oil Price War

A woman holds new 200 and 2,000 rouble banknotes in a bank in Moscow, Russia November 21, 2017. REUTERS/Maxim Shemetov
A woman holds new 200 and 2,000 rouble banknotes in a bank in Moscow, Russia November 21, 2017. REUTERS/Maxim Shemetov

The Kremlin's spokesperson has suggested that no one should interfere in Russia and Saudi Arabia relations as an oil price dispute continues roiling global markets. Dmitry Peskov told reporters Friday that relations between Moscow and Riyadh remain strong despite the disagreement, which he claimed was not a price war.

"There are no price wars between Russia and Saudi Arabia," Peskov said, according to Russian state news agency Tass. "There is a very unfavorable pricing environment for many countries," he added.

Russia’s Central Bank held its benchmark rate at 6 percent. “In February-March, the situation has been developing with a significant deviation from the Bank of Russia’s forecast under the baseline scenario. This is related to worsening global growth prospects amid the spreading coronavirus as well as to a rapid deterioration of dynamics in global commodity and financial markets,” the Central Bank said in a statement.

Fitch Ratings on Thursday lowered its forecast for Russia’s 2020 gross domestic product (GDP) growth to 1 percent from 2 percent in December, citing a global economic slump, the collapse in oil prices and a weaker rouble. It said subdued external demand and the weaker rouble had reduced investment.

Peskov also commented on US President Donald Trump statements on his intention to discuss at the right time the debate between Russia and Saudi Arabia. He said the two nations still enjoy "good relations, a partnership."

Responding to Fedun’s estimations that the drop of oil prices to less than USD25 per barrel would be catastrophic for the Russian economy, Peskov said "Certainly, the price situation is unpleasant... But we can't agree that this is a disaster for Russia in the medium term because our government has a solid safety cushion which for several years could provide an opportunity to fulfill all social obligations, development plans, and so on."

He added: "You know that the Russian budget is calculated at USD42 per barrel. Of course, this price is unfavorable for us, but we have a safety cushion, which we'll use when it is necessary. Both in the short and medium term nothing bad is going to happen."

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Business

Saudi Industry Ministry Signs MoUs to Advance Manufacturing Empowerment

The agreements were signed during the "Industrial Transformation Saudi Arabia 2025” Exhibition. SPA
The agreements were signed during the "Industrial Transformation Saudi Arabia 2025” Exhibition. SPA
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Saudi Industry Ministry Signs MoUs to Advance Manufacturing Empowerment

The agreements were signed during the "Industrial Transformation Saudi Arabia 2025” Exhibition. SPA
The agreements were signed during the "Industrial Transformation Saudi Arabia 2025” Exhibition. SPA

The Ministry of Industry and Mineral Resources has signed a number of memoranda of understanding (MoUs) with leading local and international companies to advance advanced manufacturing, support local content, and strengthen national supply chains, enhancing the regional and global competitiveness of Saudi industry.

The agreements were signed during the "Industrial Transformation Saudi Arabia 2025” Exhibition, organized by the ministry in partnership with Deutsche Messe and Riyadh Exhibitions Company Ltd.

The ministry signed two memoranda to provide innovative financing solutions for industrial establishments, strengthen national supply chains, and support local content.

Additionally, the ministry's National Center for Advanced Manufacturing and Production signed several memoranda of understanding with local and international industrial and advisory companies to support the path of advanced manufacturing, develop supply chains, enhance technological innovation, and boost the competitiveness of national factories, in line with the National Industrial Strategy and Saudi Vision 2030.

These strategic partnerships are part of the ministry's ongoing efforts to develop the Kingdom's industrial ecosystem, enable manufacturers to access the latest industrial solutions, support supply chain development, and stimulate innovation, contributing to the building of a sustainable industrial sector that competes regionally and globally.

Business

China Says Working on Streamlining Rare Earth Export Licenses

FILE PHOTO: Workers transport soil containing rare earth elements for export at a port in Lianyungang, Jiangsu province, China October 31, 2010. REUTERS/Stringer/File Photo
FILE PHOTO: Workers transport soil containing rare earth elements for export at a port in Lianyungang, Jiangsu province, China October 31, 2010. REUTERS/Stringer/File Photo
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China Says Working on Streamlining Rare Earth Export Licenses

FILE PHOTO: Workers transport soil containing rare earth elements for export at a port in Lianyungang, Jiangsu province, China October 31, 2010. REUTERS/Stringer/File Photo
FILE PHOTO: Workers transport soil containing rare earth elements for export at a port in Lianyungang, Jiangsu province, China October 31, 2010. REUTERS/Stringer/File Photo

China said on Thursday it is working on streamlining rare earth export licenses - a key promised outcome after a meeting between US President Donald Trump and his counterpart Xi Jinping.

"The government is actively adapting," Commerce Ministry spokesman He Yadong told reporters at a weekly briefing, adding that authorities "were aligning themselves with general license mechanisms".

Reuters reported on Tuesday that at least three Chinese rare earth magnet makers had secured licenses enabling them to accelerate exports to some customers.

He did not say if new licenses had been issued.

China began designing the new rare earth licensing regime following a late October meeting between Trump and Xi that eased trade tensions between the two countries.

Business

Saudi Aramco's Jafurah Gas Plant Begins Output with 450 Million Cubic Feet Per Day

The resources at Jafurah are now estimated at 229 trillion standard cu ft of gas and 75 billion barrels of condensates. (Saudi Aramco)
The resources at Jafurah are now estimated at 229 trillion standard cu ft of gas and 75 billion barrels of condensates. (Saudi Aramco)
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Saudi Aramco's Jafurah Gas Plant Begins Output with 450 Million Cubic Feet Per Day

The resources at Jafurah are now estimated at 229 trillion standard cu ft of gas and 75 billion barrels of condensates. (Saudi Aramco)
The resources at Jafurah are now estimated at 229 trillion standard cu ft of gas and 75 billion barrels of condensates. (Saudi Aramco)

The first phase of oil giant Aramco's Jafurah gas plant is complete and production has begun with a capacity of 450 million cubic feet per day, the Saudi finance ministry said on Tuesday.

The finance ministry, in its 2026 budget statement, listed the milestone as an achievement reached in 2025.

Jafurah's gas output will be used for domestic power generation, freeing up crude for export that is currently used for power in the kingdom.

Aramco has said its unconventional gas program at peak production is expected to generate electricity equivalent to displacing 500,000 barrels per day of oil.

The $100 billion Jafurah project, estimated to contain 229 trillion standard cubic feet of raw gas, is central to Aramco's ambitions to become a major global player in natural gas and boost its gas production capacity.

Aramco's gas production was 12.6 billion cubic feet per day at the end of September, up from 12 bcfd a year earlier.

Aramco last month said it was boosting its gas growth target to 80% above 2021 levels from a previous targeted growth of 60%.

In its 2021 annual report, Aramco said it reached a single-day record gas output at the time of 10.8 bcfd.

Aramco CEO Amin Nasser, who has called Jafurah a crown jewel in the company's portfolio, said during an earnings call last month the first phase was on track for completion by the end of this year.