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☆ Ukraine's economy stabilizes after shock of war
▼ + stars: | 2023-02-27 | by ( Olena Harmash | ) www.reuters.com time to read: +9 min

The economy shrank by a third last year, the largest fall since Ukraine's independence from the Soviet Union in 1991. ArcelorMittal Kryvyi Rih, Ukraine's largest steel mill, said its production was currently at about 25% of pre-war levels amid electricity blackouts. Ukraine's central bank predicts GDP will grow by 0.3% this year, while the economy ministry forecasts 3.2% growth. The agreement saved Ukraine's agriculture, which accounted for about 12% of GDP and some 40% of overall exports before the war. The steel sector, a key pillar of the economy, is among the hardest hit.

Discussions include the impact of the drought on 2023 goals for net reserves, said an Argentina economy ministry adviser who asked not to be named because the talks were ongoing. Officials for the Economy Ministry declined to comment. The discussions to change the central bank net reserves targets for this year are pre-emptive, as the country did meet its end-December 2022 net reserves targets, another source added. Net reserves today stand at around $4.4 billion, according to calculations from Buenos Aires-based brokerage firm PPI Inversiones. Under the latest review, Argentina had been set the target of net reserves to increase by $5.5 billion at the end of March and $9.8 billion at the end of the year.

☆ Analysis: Decree adds to doubts about Mexican lithium industry's future
▼ + stars: | 2023-02-24 | by ( Carolina Pulice | ) www.reuters.com time to read: +4 min

Last Saturday, President Andres Manuel Lopez Obrador signed his latest presidential decree on lithium, establishing a more than 900-square-mile (235,000 hectare) lithium mining zone in northern Sonora state, stating that existing concessions within it "remain safe." But the order also declared "no mining activity can be carried out related to lithium" within this area. Neither Lopez Obrador's office or Mexico's economy ministry, which was part of the decree, responded to a request for comment. Created last August, state-run LitioMx will likely launch further exploration efforts in the new mining zone, BTG Pactual analysts said in a research note. He emphasized the need to minimize political risks associated with the government's latest decree, if Mexican lithium has any hope of transforming its raw potential into a thriving industry with a long-term horizon.

☆ Russia says its economy did better than expected, one year into the Ukraine war. But experts say there's a red flag behind the announcement.
▼ + stars: | 2023-02-23 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

According to Russia's federal statistics service, the country's GDP contracted by 2.1% in 2022. However, Russia stopped publishing some key economic data last year, throwing up a red flag. While this contraction reversed a 5.6% GDP growth in 2021, it did far better than an 8.8% to 12.4% contraction that Russia's economy ministry projected in April 2022. The war in Ukraine triggered heightened concerns over issues related to energy security, particularly about natural gas exports — which Europe was reliant on. The EU's ban on Russian oil imports from December sent countries rushing to load up before the embargo kicked in, which helped prop up Russia's energy coffers.

☆ Tesla scales back German battery plans, won over by U.S. incentives
▼ + stars: | 2023-02-21 | by ( Victoria Waldersee | ) www.reuters.com time to read: +2 min

BERLIN, Feb 21 (Reuters) - Tesla (TSLA.O) has paused plans to produce entire batteries in Brandenburg, Germany, and will instead carry out some production steps in the United States where tax incentives are more favourable, the Brandenburg economy ministry said on Tuesday. The U.S. carmaker had originally planned to produce the full battery at the Gruenheide site in Germany, with a peak capacity of over 50 gigawatt hours per year. But with the United States offering electric vehicle makers sourcing batteries from within the United States tax breaks and consumer discounts, the company has changed course. "Tesla has started its battery system production in Gruenheide and is preparing to manufacture battery cell components. The company has prioritized further production steps in the USA because tax incentives make business conditions more favorable there," the Brandenburg economy ministry said in a statement.

☆ Mexico's Lopez Obrador orders ministry to step up lithium nationalization
▼ + stars: | 2023-02-19 | by ( ) www.reuters.com time to read: +2 min

MEXICO CITY, Feb 18 (Reuters) - Mexican President Andres Manuel Lopez Obrador on Saturday signed a decree handing over responsibility for lithium reserves to the energy ministry, after nationalizing lithium deposits last April. During an event in Sonora, Lopez Obrador signed the decree that orders the energy ministry "to take the actions necessary to carry out" the nationalization process. It also declares 234,855 hectares (907 square miles) in Sonora as a mining zone known as Li-MX 1. "(Let's make) the nation be the owner of this strategic mineral," Lopez Obrador said during the event. Mexico holds important potential lithium deposits, a highly sought material for the production of electric vehicle batteries.

☆ Infineon to begin work on 5 bln euro chip plant in Germany
▼ + stars: | 2023-02-16 | by ( ) www.reuters.com time to read: +1 min

SummarySummary Companies Economy Ministry approved early project launchProject still requires European Commission approvalBERLIN, Feb 16 (Reuters) - Infineon has won approval to begin work on a 5-billion-euro ($5.35 billion) semiconductor plant in the German city of Dresden due to start production in 2026, it said on Thursday. Infineon is seeking 1 billion euros in public funding for the plant, which it said would create around 1,000 jobs. The Economy Ministry approved the early project launch, which allows construction to begin before the European Commission has finished inspecting the legal subsidy aspects. The European Union is seeking to bolster semiconductor production after a global chip shortage over the past two years. Under the European Chips Act, the European Commission has earmarked a total of 15 billion euros for public and private semiconductor projects by 2030.

☆ Analysis: Gazprom's export revenue may fall by 50% in 2023
▼ + stars: | 2023-02-14 | by ( Oksana Kobzeva | ) www.reuters.com time to read: +5 min

If the trend continues, Gazprom's export revenues for the whole year could be halved compared to 2022 when its export volumes also declined by nearly half. LOWER REVENUESIn 2022, Gazprom's export volumes fell by 46%, according to the company. Gazprom has not provided forecasts for gas exports for this year. Gazprom's exports outside ex-Soviet Union fell by more than 45% to 100.9 bcm in 2022 from 185.1 bcm in 2021. The Economy Ministry forecasts Gazprom's export price for 2023 at $700 per 1,000 cubic metres.

☆ Moscow's decades-old gas ties with Europe lie in ruins
▼ + stars: | 2023-02-14 | by ( Vladimir Soldatkin | ) www.reuters.com time to read: +10 min

Washington has long criticised Germany's policy of reliance on Russian energy, which until last year, Berlin had said was a means to improve relations. In October, he mooted an idea of a gas hub in Turkey to divert the Russian gas flows from the Baltic Sea and North-West Europe. The 20-year supply deal is worth about $30 billion in current gas prices. In Europe, gas prices hit record levels and international oil prices shortly after the special military operation began spiked close to their all-time high. Domestic gas prices are regulated by the government and there have been discussions about liberalising the gas market, a sensitive issue for Russian households.

☆ Analysis: Washington pushes for harsher action against banks with Russia ties
▼ + stars: | 2023-02-14 | by ( John O'Donnell | ) www.reuters.com time to read: +6 min

"We are looking at additional banks and financial institutions to see how Russia deals with the outside world. Some European banks, including UniCredit (CRDI.MI) and Raiffeisen Bank International (RBIV.VI), have large businesses there and must follow local rules to grant payment holidays to soldiers. ENFORCEMENTO'Brien said that the United States would step up enforcement, something the EU also hopes to improve. "We are now looking at how sanctions, including financial sanctions, can be most effective," he said. "While the majority of important Russian banks are sanctioned, there is a lot outside that perimeter that you could go after," said Nicolas Veron, of Washington think tank the Peterson Institute for International Economics.

The country buys about 17 million tonnes of mostly GM yellow corn from the United States each year, mostly for animal feed. Mexico will still prohibit use of GM corn for human consumption, such as flour, dough, or tortilla made from the grain. About 20% of Mexican corn imports from the United States is white corn for food products. It will still move forward with its plan to ban imports of the herbicide glyphosate, with a transition period in effect until March 31, 2024. The United States had given the Mexican government until Tuesday to explain the science behind its proposed bans.

☆ China cranking up political espionage, German official tells newspaper
▼ + stars: | 2023-02-11 | by ( ) www.reuters.com time to read: +1 min

[1/2] German and Chinese national flags fly in Tiananmen Square ahead of the visit of German Chancellor Angela Merkel in Beijing, China, May 23, 2018. We must be prepared for these to increase in the coming years," Verfassungsschutz agency chief Thomas Haldenwang told the Welt am Sonntag newspaper. He warned that economic dependence on China could be exploited for political influence. "The political leadership is already using its economic power, which also results from intensive relations with the German and European economies, to implement political goals." The German government has been reassessing its economic relations with authoritarian countries after the Ukraine war laid bare the vulnerabilities of Berlin's years-long energy dependence on Russia.

☆ IMF’s outlook on Russia is too rosy to be true
▼ + stars: | 2023-02-10 | by ( Pierre Briancon | ) www.reuters.com time to read: +3 min

The international body recently estimated that Russia will avoid a recession in 2023 and expand by 0.3% after shrinking by 2.2% in 2022. The measures will not “significantly” affect Russia’s oil exports, the Fund says. That is a matter of intense debate among economists since oil prices remain below the cap set by the G7. Much will depend on the evolution of oil prices this year. But only a serious oil price rally, improbable in the context of the global economy’s “subpar growth” - to quote the IMF - could justify looking at Russia through rosy glasses.

[1/2] The main deck of the Floating Storage and Regasification Unit (FSRU) "Neptune" is seen during the official commissioning of the liquefied natural gas (LNG) terminal "Deutsche Ostsee" at the harbour in Lubmin, Germany, January 14, 2023. John Macdougall/Pool via REUTERSLONDON/FRANKFURT, Feb 9 (Reuters) - Germany and Oman are in advanced talks to sign a long-term deal for liquefied natural gas (LNG) lasting at least 10 years as Berlin continues its search for alternatives to Russian fuel supplies, three sources familiar with the matter said. Europe has been scrambling to replace Russian gas since last year against a backdrop of war in Ukraine, with state-run Gazprom (GAZP.MM) progressively reducing and then suspending the lion's share of pipeline supplies to Europe. Germany has been holding talks for months with the world's biggest LNG producer Qatar for additional supplies, but negotiations have been lengthy. While supply deals with Qatar would be positive for Germany, they would not offer an immediate solution to Berlin's energy crisis.

☆ Intel wants 10 bln euros of government funding for plant in Germany -Handelsblatt
▼ + stars: | 2023-02-08 | by ( ) www.reuters.com time to read: +1 min

BERLIN, Feb 8 (Reuters) - Intel (INTC.O) has provided the German economy ministry with a new calculation for a planned chip factory in the city of Magdeburg that considers almost 10 billion euros ($10.74 billion) of government funding to be necessary, business daily Handelsblatt reported on Wednesday, citing government sources. An Intel spokesperson declined to comment on the figure in Handelsblatt but was quoted as saying the group was "working very closely with government partners to close the critical cost gap". The company explains that its new demand, which exceeds the already approved funds of 6.8 billion euros ($7.3 billion), was necessary due to higher energy costs and that it would like to use a more advanced technology in the plant than initially planned, Handelsblatt said. ($1 = 0.9308 euros)Reporting by Kirsti Knolle; editing by Matthias WilliamsOur Standards: The Thomson Reuters Trust Principles.

☆ German ministry to review sale of regional airport to Russian investor - source
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +2 min

The insolvency administrator for Frankfurt-Hahn airport, in western Germany, said the investor and seller had decided to submit a purchase contract to the economy ministry, which has the power to block some takeovers by foreign players. A source close to the proceedings confirmed local media reports that the successful, and highest, offer came from NR Holding, which belongs to Russian billionaire Viktor Kharitonin. The federal economy ministry can block takeovers of critical infrastructure by firms outside the European Union. Economy Minister Robert Habeck said on Monday that his ministry had launched a routine screening of the process. It had 1.23 million passengers between January and November last year, less than half the number a decade ago.

BERLIN, Feb 5 (Reuters) - Germany's Economy Minister Robert Habeck has called for cooperation in green investments between Europe and the United States ahead of meetings in Washington next week with U.S. Treasury Secretary Janet Yellen and other officials. "The USA is now gearing its economy towards green markets and driving forward cost reductions in the development of climate-friendly technologies," Habeck said. EU governments are worried the IRA could not only put European producers at an unfair disadvantage but lure investment away from Europe to the United States. They are likely to want to explore exceptions when the United States implements the plans. The talks will be focused on the U.S. subsidy package in the context of future trade relations between the EU and the United States.

☆ French, German ministers to tell U.S. don't poach EU investments -sources
▼ + stars: | 2023-02-04 | by ( ) www.reuters.com time to read: +2 min

PARIS, Feb 4 (Reuters) - France and Germany's economy ministers will tell senior U.S. officials not to try to actively poach green investments from Europe when they visit Washington next week to raise concerns about U.S. green tech subsidies, two French officials said. "One of the ministers' messages will be to not approach European companies about moving plants to the U.S. The second official said the aim was to avoid "aggressive pitches" to EU firms to invest in the United States. They will also seek a U.S. commitment to be transparent about subsidies companies receive under the Inflation Reduction Act, both officials said. That is key because it could determine how much state support European companies can receive under a European Commission proposal to allow third-country subsidies to be matched in Europe.

☆ Latvia says traders use Turkey, Kazakhstan, Armenia to dodge Russia sanctions
▼ + stars: | 2023-02-03 | by ( Andrius Sytas | ) www.reuters.com time to read: +2 min

VILNIUS, Feb 3 (Reuters) - Traders are using Turkey, Kazakhstan and Armenia to evade European Union sanctions on Russia in a tactic that breaches these countries' compliance with the bloc's embargo, Latvia's prime minister said on Friday. Krisjanis Karins made the assertion following talks with counterparts from fellow EU members Estonia and Lithuania, which along with Latvia have been among most vocal supporters of sanctions on Russia following its 2022 invasion of Ukraine. "It seems quite clear that traders are finding ways to legally trade goods, say with Turkey, Kazakhstan or Armenia which are then resent to Russia, because these countries are not adhering to the sanctions regime", Karins told reporters in the Estonian capital Tallinn. There was no immediate response from the foreign ministries of Turkey and Kazakhstan to requests for comment on the remarks by Karins. At the same time, it opposes Western sanctions on Russia and has close ties with both Moscow and Kyiv, its Black Sea neighbours.

☆ Russia approves Veon's sale of Vimpelcom to management -RBC, citing sources
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +1 min

Feb 1 (Reuters) - A Russian government commission has approved the sale of telecoms company Vimpelcom to senior managers by its Dutch owner Veon (VON.AS), the Russian economic news outlet RBC reported, citing two unnamed sources. The disposal is notable in that Veon, unlike many Western investors, is receiving money for its asset - one that accounts for about half of Veon's revenue. RBC reported that the deal had been amended to ensure all bondholders were treated equally. Veon declined to comment and no comment was immediately available from Vimpelcom or the Russian digital ministry. Writing by Kevin Liffey Editing by Barbara Lewis and David GoodmanOur Standards: The Thomson Reuters Trust Principles.

Their messages show they knew the money paid for telecommunications equipment – despite European Union sanctions which restrict the supply of such gear to Russia's military. An EU regulation from Feb. 25, 2022 bans supplying or financing the purchase of certain goods for the Russian military. The office did not reply to a question about Schlund and Kolbasnikova helping buy gear for the Russian military. PROTEST ORGANISERSSchlund, who studied in a Russian military academy, moved to Germany in 2012. He later began a relationship with Kolbasnikova, who is originally from Ukraine and has worked in Germany as a nurse.

☆ German economy unexpectedly shrinks in Q4
▼ + stars: | 2023-01-30 | by ( ) www.reuters.com time to read: +1 min

BERLIN, Jan 30 (Reuters) - The German economy unexpectedly fell in the fourth quarter, data showed on Monday, a sign that Europe's largest economy may be entering a much-predicted recession as an effect of the Ukraine war. Gross domestic product decreased 0.2% quarter on quarter in adjusted terms, the federal statistics office said. A Reuters poll of analysts had forecast the economy would stagnate. In the previous quarter, the German economy grew slightly by an upwardly revised 0.5% quarter on quarter. The German government last week revised up its economic forecast for 2023 and now foresees GDP growing by 0.2%, up from an autumn forecast of a 0.4% decline.

☆ Germany Sees Its Economy Growing This Year Despite the Ukraine War
▼ + stars: | 2023-01-25 | by ( Tom Fairless | ) www.wsj.com time to read: 1 min

German has avoided the worst-case scenarios for its economy, Economy Minister Robert Habeck says. FRANKFURT—The German economy will grow this year and might even avoid a shallow recession in the short term, the government said on Wednesday, the latest sign of brightening growth prospects in Europe despite the shock of Russia’s invasion of Ukraine. Europe’s largest economy is likely to expand by 0.2% this year, the German Economy Ministry said Wednesday in its annual economic report, revising up an autumn forecast for a 0.4% contraction.

The future of the Saarlouis site has been unclear since last June when Ford picked a site in Spain to assemble its next-generation electric vehicle (EV) over the German plant, which will stop producing its current model, the Ford Focus, from 2025. Separately, union representatives for Ford's largest German site in Cologne will meet with Ford's management on Saturday to negotiate on planned job cuts across Europe announced by management to workers on Monday. Management figures presented a worst-case scenario to 12,000 workers in a packed assembly hall of up to 2,500 job cuts in product development and a further 700 in administration. The carmaker has committed to an all-electric lineup in Europe by 2030 and its U.S. leadership has repeatedly flagged that EVs require less labour. Reporting by Victoria Waldersee and Christina Amann; Editing by Paul Carrel, Alexander Smith and Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

WASHINGTON, Jan 23 (Reuters) - U.S. farm and trade officials raised "grave concerns" over Mexico's agricultural biotechnology policies in meetings with their Mexican counterparts on Monday, as lingering disagreements threaten decades of booming corn trade between the neighbors. The United States accounts for most of Mexican corn imports. U.S. officials traveled to Mexico to discuss Mexico's approach to agricultural biotech products. Mexico's agriculture ministry declined to comment, while the country's economy ministry, which handles trade, did not immediately provide comment. Mexican officials have said they will keep importing GM corn for animal feed.

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