Putin’s daughters targeted in US sanctions against Russia

Joe Biden links new measures directly to accounts of atrocities committed by Russian forces in Bucha

The US has announced a new round of sanctions targeting Russia’s top public and private banks and two daughters of Vladimir Putin, following mounting global accusations of Russian war crimes in Ukraine.

The sanctions targeted Maria Vorontsova and Katerina Tikhonova, two adult daughters of Putin’s with his former wife Lyudmila Shkrebneva.

Continue reading...

UK economy grows faster than expected; prices drop as US mulls big oil reserve release – business live

In Italy, inflation rose to an annual rate of 6.7% in March, according to a preliminary estimate from Istat, Italy’s statistics office.

Here’s a ranking of European inflation rates, based on the EU’s harmonised index of consumer prices (HICP) measure:

Inflation rose more than expected in France in March, reaching 4.5%. This is a figure that has not been seen since the 1980s, but it is still much lower than in neighbouring countries. Inflation will continue to rise in the coming months, before falling sharply.

For the next few months, we expect inflation to continue to rise, driven by energy and food prices, but also by inflationary pressures that are increasingly spreading to all sectors of the economy. The 5% mark for the national inflation indicator could be exceeded in the second quarter, even without further increases in energy prices. Indeed, all business indicators suggest that companies expect to set higher prices in the coming months.

Continue reading...

NatWest bank returns to majority private control, oil prices fall on Shanghai lockdown – business live

Major investors have launched a campaign calling for Sainsbury’s to help tackle the cost of living crisis by becoming the first supermarket group to pay all its workers the “real living wage” of £9.90 an hour, reports my colleague Rupert Jones.

Legal & General Investment Management, Nest (National Employment Savings Trust), which is Britain’s largest workplace pension scheme, and several MPs have formed a coalition to push for the change after reports that increasing numbers of supermarket workers are having to turn to food banks to feed themselves and their families.

Continue reading...

Inflation raises cost of UK government borrowing in February; crude oil up again – business live

Analysts say chancellor has wriggle room for limited package of measures in Wednesday’s mini-budget, as US Fed chair signals more aggressive rate rises to tame inflation

Bethany Beckett, UK economist at Capital Economics, has looked at what the chancellor might do tomorrow.

Notwithstanding the deterioration in the public finances in February, large revisions to the back data mean that borrowing in 2021/22 is on track to undershoot the OBR’s October 2021 forecast by a huge £23bn.

Even so, we suspect the sharper rise in debt interest costs in February than many expected may embolden the chancellor to keep a fairly tight grip on the public finances in tomorrow’s spring statement.

Continue reading...

Egypt fixes price of bread as Ukraine war hits wheat supply

Commercially sold bread set at 11.50 Egyptian pounds a kilo as Russian invasion sends wheat prices soaring

Egypt has fixed the price of unsubsidised bread amid a global surge in wheat prices since Russia’s invasion of Ukraine.

The move comes after war shut off access to cheaper wheat from the Black Sea region, particularly affecting exports to the Middle East and north African region. Egypt is the world’s biggest wheat importer, bringing in about 60% of its grain from overseas. Russia and Ukraine accounted for 80% of the country’s imports last year.

Continue reading...

After Ukraine, how will the world replace Russia’s oil products?

A report from the International Energy Agency makes clear that viable alternatives are limited

As Boris Johnson flew to the Gulf this week to ask for more oil to replace supplies from Russia, he was accused by the Labour leader, Keir Starmer, of “going cap in hand from dictator to dictator”.

At the same time, a report produced by the International Energy Agency (IEA) underlined just how limited the options are for any economy seeking to replace Russian crude and other oil products.

Continue reading...

Car-free Sundays? IEA sets out 10-point plan to reduce global oil demand

Energy watchdog says measures could help cut oil usage by 2.7m barrels a day within four months

Driving more slowly, turning down the air-conditioning, car free Sundays and working from home should be adopted as emergency measures to reduce the global demand for oil, according to a 10-point plan from the International Energy Agency (IEA).

Such measures and changes to consumer behaviour would allow the world to cut its oil usage by 2.7m barrels per day (bpd) within four months – equivalent to more than half of Russia’s exports – the global energy watchdog said.

Reduce speed limits on highways by at least 10 km/h
Saves about 290,000 bpd of oil use from cars, and an additional 140,000 bpd if trucks also reduced their speed.

“A reduction in speed limits can be implemented by national governments; many countries did so during the 1973 oil crisis, including the United States and several European countries,” the IEA said.

Work from home up to three days a week where possible
One day a week saves about 170,000 bpd; three days saves about 500,000.

Pre-pandemic, the use of private vehicles to commute was responsible for about 2.7m barrels of oil use a day, the IEA said, yet about one-third of those jobs could be done from home.

Car-free Sundays in cities
Every Sunday saves about 380,000 bpd; one Sunday a month saves 95,000.

Switzerland, the Netherlands and West Germany did this during the 1973 oil crisis and some cities have used the measure to promote public health more recently. Benefits include cleaner air, reduced noise pollution and improved road safety, the IEA report said.

Make public transport cheaper and incentivise walking and cycling
Saves about 330,000 bpd.

New Zealand is halving public transport fares for the next three months in response to high fuel prices, while studies in the US have shown cheaper fares lead to greater use. Some governments have incentivised people to walk or subsidised bike purchases. All of this would require government subsidy.

Alternate private car access to roads in large cities (eg every other day)
Saves about 210,000 bpd.

For example, cars whose number plate ends with an odd number can drive on Monday and those with an even number can drive on Tuesdays. Such schemes have been deployed to tackle congestion and air pollution peaks in Athens, Madrid, Paris, Milan and Mexico City. Exceptions could be made for electric vehicles. One downside is that households with multiple cars could game the rules.

Increase car sharing and adopt practices to reduce fuel use
Saves about 470,000 bpd.

Carpooling has long been used as a way to save money and reduce emissions. Governments can incentivise this with dedicated traffic lanes and parking spaces, or by reducing road tolls on higher occupancy vehicles. Many smartphone apps exist to arrange ride-shares.

Promote efficient driving for freight trucks and delivery of goods
Saves about 320,000 bpd.

As with private cars, freight trucks can be driven more efficiently, including the use of so-called “eco-driving” techniques such as reducing excess weight and not slowing down or speeding up abruptly. Loads should also be optimised to avoid journeys with empty vehicles.

Using high-speed and night trains instead of planes
Saves about 40,000 bpd.

Based on existing high-speed rail infrastructure, about 2% of flights in advanced economies could be shifted to trains, according to the IEA. Almost all of this involves flights of less than 800km.

Avoid business air travel where alternative options exist
Saves about 260,000 bpd.

The IEA recommends virtual meetings where possible and points out that firms such as HSBC, Zurich Insurance and S&P Global plan to cut their business travel emissions by as much as 70%.

Reinforce the adoption of electric and more efficient vehicles
Saves about 100,000 bpd.

By the end of last year, 8.4m electrical vehicles (EVs) were on the road in advanced economies but the IEA urged faster adoption. “Actions taken now to hasten the adoption of electric vehicles will have a sustained effect in the future,” it said.

Continue reading...

Philippines considers four-day working week to combat rising costs

Economist calls for compressed working hours with 10-hour days in response to higher fuel prices

The Philippines is considering a four-day working week to conserve energy, as the cost of fuel continues to rise globally, driven by Russia’s invasion of Ukraine.

Officials are searching for ways to soften the impact of dramatic price increases, which have prompted calls for a rise in the minimum wage and greater assistance for drivers.

Continue reading...

Boris Johnson upbeat on Saudi oil supply as kingdom executes three more

PM accused of ‘trading blood for oil’ as he seeks increased Middle East output to lessen reliance on Russia

Boris Johnson has hinted Saudi Arabia could speed up oil production to help calm spiralling energy prices for Britons, as he praised the country for improving its human rights record despite three more people being executed during his visit.

With pressure rising at home over a cost of living crisis compounded by western countries trying to end their reliance on Russian imports, the UK prime minister made a dash to the Middle East to urge leaders to help stabilise oil prices by ramping up supply.

Continue reading...

Fed expected to raise interest rates for first time since 2018, markets rise on Ukraine hopes – business live

The UK government released $530m of its debts to Iran, ahead of Tehran’s release of two British-Iranian prisoners, Iran’s semi-official Fars news agency reported.

The prisoners are Nazanin Zaghari-Ratcliffe, who had been detained by Iran for six years, and Anousheh Ashouri.

Continue reading...

Johnson compares Putin to drug dealer ahead of Saudi Arabia trip

British PM hopes to persuade Gulf state to raise oil and gas production to reduce reliance on Moscow

Boris Johnson has compared Vladimir Putin to a drug dealer who managed to hook western nations on Russian supplies of oil and gas, ahead of a trip to the Middle East in an attempt to diversify the sources of Britain’s energy imports.

The UK prime minister urged European countries to “get ourselves off that addiction” and said he wanted support from “the widest possible coalition” to help offset the pressures caused by spiralling oil and gas prices.

Continue reading...

Oil price falls below $100 amid Russia-Ukraine ceasefire talks

Drop in price comes as Covid-19 infections rise in China, which could hit demand for energy supplies

Global oil prices have fallen back below $100 (£77) a barrel amid ceasefire talks between Russia and Ukraine and concerns over the rapid growth in Covid infections in China.

The price of a barrel of oil slid to $99 on energy markets on Tuesday, before rising back to just above $100 in early afternoon trading. It comes amid a decline from a 14-year high of close to $130 reached earlier this month after Vladimir Putin ordered troops into Ukraine.

Continue reading...

Johnson faces uphill task to convince Saudis and UAE to boost oil production

Analysis: PM will try and succeed where Biden failed but is unlikely to get a sympathetic hearing

Boris Johnson is facing criticism both domestically and in the Gulf as he tries to persuade Gulf states to boost oil production.

He is expected to visit Saudi Arabia and other Gulf states such as the United Arab Emirates as western powers seek extra oil supplies to loosen the west’s dependence on Russian energy and slow the massive price rises caused by sanctions due to the war in Ukraine.

Continue reading...

Boris Johnson plans Saudi Arabia visit to seek oil supply increase

MPs voice deep concerns over trip after mass execution by regime and its continuing role in Yemen war

Boris Johnson is facing scrutiny over a planned trip to Saudi Arabia to push for an increase in oil output amid an outcry over the regime’s biggest ever mass execution and growing fears the prime minister may try to limit media scrutiny of the visit.

Downing Street would not confirm Johnson’s likely trip to Riyadh, but sources have said he wants to appeal to the Gulf state to increase its oil output to replace supplies from Russia.

Continue reading...

White House faces oil standoff with Saudi Arabia and UAE as prices soar

Analysis: Disputes with Biden administration mean Riyadh and Abu Dhabi are likely to drive hard bargain

Joe Biden’s hardline stance on Russia has won him widespread plaudits, but with the most serious oil shock in decades now a reality, the US president’s attempt to cushion the blowback continues to meet resistance from the two allies he needs most.

Saudi Arabia’s de facto leader, Mohammed bin Salman, and his counterpart in the United Arab Emirates, Mohammed bin Zayed, are yet to agree to a phone call with the west’s most powerful man – a scenario all but unthinkable during previous administrations.

Continue reading...

US inflation rises to new 40-year high of 7.9%; Abramovich sanctioned by UK – as it happened

Rishi Sunak is also facing intense pressure from Conservative colleagues to take action in this month’s spring statement to alleviate the cost of living crisis, which has been dramatically exacerbated by the Russian invasion of Ukraine, write our political editor Heather Stewart and political correspondent Peter Walker.

Asked about the impact of sanctions on Russia for consumers at home, the business secretary, Kwasi Kwarteng, told MPs on Wednesday he believed the public was “willing to endure hardships” in solidarity with the people of Ukraine.

The crisis is likely to have a negative impact on investment intentions of UK firms following Brexit and Covid. This is the worst timing possible, as business investment intentions were high coming into 2022. So the Government must move now to stimulate business investment to maintain UK growth, thereby demonstrating true independence from Russia.

Continue reading...

Turbulent times: Australian air fares predicted to soar as bans on Russian oil lift jet fuel prices

Qantas chief says airlines have no choice but to increase prices and believes travel will be impacted

Travellers are facing steep air fare hikes as bans on Russian oil cause jet fuel prices to surge, Australian aviation experts warn.

Qantas chief executive, Alan Joyce, has said the average fare would increase by 7% as a result of the increased crude oil prices following Russia’s invasion of Ukraine, but others predict the price rises could be higher.

Continue reading...

Energy crisis: UK could learn from Fukushima response, MPs told

Japanese measures including turning down the heating and slower trains could ease pressure on British households, say experts

Britain could learn from Japan’s response to the Fukushima nuclear plant disaster by reducing energy consumption to deal with soaring global gas prices after the Russian invasion of Ukraine, academics have said.

Suggesting a coordinated response to record gas prices could help ease the pressure on households, experts told MPs on the Commons business committee that steps to reduce national demand for gas-fired power next winter could be deployed.

Continue reading...

Foreigners travelling to Ukraine to fight invasion will be given citizenship – as it happened

This blog is now closed. Follow our live coverage of the Russian invasion here.

Stoock markets have been struggling again today with no sign of any let up in the adverse economic impact of the war.

Brent crude is on the rise again – up 2.48% to $126.26 – after see-sawing violently yesterday when it touched almost $140.

Griffiths urged all sides to ensure that civilians, homes and infrastructure in Ukraine were safeguarded.

“This includes allowing safe passage for civilians to leave areas of active hostilities on a voluntary basis, in the direction they choose,” he said, after Ukraine rejected an earlier deal that would only allow its civilians to evacuate into Russia or Belarus.

The meeting came as Ukraine and Russia seek an agreement on creating “humanitarian corridors” out of pummelled cities, as the civilian toll from the Russian assault mounts.

Continue reading...

Nickel soars to record $100,000 a tonne as risk of shortages from Russia rises – business live

Rolling coverage of the latest economic and financial news

The oil price has opened higher too, with Brent crude up 2% at $125.70 per barrel.

Yesterday, Brent spiked alarmingly to $139 per barrel, a 14-year high, after the US said it was talking to its European allies about potentially banning Russian oil imports. It then slipped back, as Germany’s Olaf Scholz pushed back against the idea.

“This is the tightest fundamental backdrop in years and the developments in Russia/Ukraine have ignited a market that was already a coiled spring. How high can oil prices go? Pick a number, this is a market in disarray.

Market fundamentals are the strongest in at least 15 years… it is not unfathomable for prices to rocket to $200/bbl by summer, spur a recession and end the year closer to $50/bbl ($200 call options have been bid). To be clear, this is not our base case, but such a scenario does not sound implausible today. Two weeks ago, such a notion would have been ludicrous.”

Continue reading...