- BP, a British-owned global energy supplier, plans to offload its stake in Russian oil firm Rosneft.
- The UK government has pressured this decision from BP since Russia’s invasion of Ukraine on Thursday.
- BP’s chief executive Bernard Looney and director Bob Dudley have resigned from the Rosneft board with “immediate effect”.
BP, an English multinational energy company and one of the world’s 7 oil and gas supermajors, will be offloading its stake in Russian state-owned oil firm Rosneft. This decision is a result of Russia’s invasion of Ukraine and will likely be a significant financial hit to BP. Offloading the stakes may involve selling or having the shares be seized.
BP will “divest”, meaning that it will cut all financial ties with Rosneft, forfeit its dividends from the firm, and step back from its 2 seats on Rosneft’s board. Bernard Looney, BP’s chief executive and BP-nominated director Bob Dudley have immediately resigned from Rosneft’s board. Looney had been on the board since 2020 alongside Rosneft chairman Igor Sechin who is a close ally and friend to Russian President Vladimir Putin.
BP’s latest annual report from 2 weeks ago reveals that Rosneft accounts for about a fifth of BP’s total revenue. The British oil and gas supermajor had been under immense political pressure from the UK government to cut relations with Rosneft following Moscow’s invasion of Ukraine. Bernard Looney is “convinced that the decisions [BP has] taken as a board are not only the right thing to do, but are also in the long-term interests of BP”.
UK Secretary of State for Business, Energy and Industrial Strategy Kwasi Kwarteng spoke with Looney on Friday and left him in “no doubt about the seriousness of government concerns about BP’s overexposure to Russian interests” according to an official. Following BP’s announcement of offloading Kwarteng praised the decision stating that “Russia’s unprovoked invasion of Ukraine must be a wake-up call for British businesses with commercial interests in Putin’s Russia.”
Saira is a Muslim American with a passion for writing, economics, and justice. With a background as a UC Berkeley graduate with a bachelors in economics allows her to quantitatively analyze critical developments from around the globe as well as their long term impacts on financial systems and social welfare. She is dedicated to reporting in an investigative, honest and compassionate manner to give voice to those who need it most.
First Grain Ship Departs Ukraine After Six Months of Russian Blockade
- The first shipment of grain departed the port of Odesa on Monday after Russia’s blockade of Ukrainian ports for the last six months trapped around 20 million metric tons of wheat and corn.
- Russia recently made a deal with Ukraine, brokered by the UN and Turkey, allowing grain exports to resume, appeasing fears of a global food supply crisis and rising prices.
- Ukrainian Foreign Minister Dmytro Kuleba celebrated the shipment, calling it a “day of relief for the world, especially for our friends in the Middle East, Asia, and Africa.”
- Ukrainian President Volodymyr Zelensky was more hesitant to celebrate the shipment, stating “it is too early to draw any conclusions and make any forecasts” and he wants to “see how the agreement works and whether security will be really guaranteed.”
Concerns Rise As US Teeters on the Brink of Recession
- The US economy declines for the second quarter in a row, causing, what other countries would consider, an economic recession.
- The prices for groceries, gas, and other basics are rising at the fastest pace since 1981. The US Central Bank is quickly trying to raise borrowing costs in order to cool the economy and ease the prices on goods, but with the contraction, at the annual rate of 0.9% in the 3 months to July, many are still getting concerned.
- President Biden struggles to convince the public that the economy is sound, with the unemployment rate at a low 3.6%. But with inflation in the US hitting 9.1% in June, the fastest price appreciation in 4 months, consumer spending has slowed at an annual rate of 1%.
- Many other countries, such as China and the UK, have been hit harder by the surge in energy prices and the War in Ukraine, causing risks from abroad. Other countries are facing much more serious problems and once they’re hit, their problems can spill over and affect the US.
Russia cuts Germany’s Gas Supply causing Prices to Soar ￼
- Over the course of the Russian-Ukrainian War, Russia began to slowly cut off Germany’s gas supply through the Nord Stream 1 pipeline.
- Before the war, over half of Germany’s gas came from Russia. By the end of June it was reduced to a quarter of its normal captivity, and now it operates at less than a fifth of it.
- Russia’s energy firm Gazprom has stated that this need to cut off Germany’s gas supply was due to maintenance work on a turbine that is needed. Critics have disagreed, claiming that Russia is using it’s gas as a ploy to cause terror to Europe.
- The cut of Gas supply to Germany and other central European countries has caused gas prices to rise almost 2%, causing the trade to close to a record high similar to that of when Russia invaded Ukraine.
- While Germany scrambles to find a solution to this, Poland states it will be fully independent from Russia by the end of the year in order to avoid blackmail from Russia.
Russia Limits Gas Supply to Germany
- Gazprom, a major Russian energy provider, has stated it will reduce the supply of gas to Germany by half via the Nord Stream 1 pipeline due to repair work.
- Germany has said that they see no technical reason for the decrease in gas supply. The European Union continues to accuse Russia of weaponizing energy, with Ukrainian President Volodymyr Zelensky stating, “This is an open gas war that Russia is waging against a united Europe.”
- Ukraine and Russia signed an agreement to allow the export of grain via the Black Sea after Russia continued to block millions of tonnes from being exported. The next day, Russia struck missiles at the port, some of which hit the infrastructure of the port.
- The US and Ukraine are optimistic that the agreement will still be implemented, with the US State Department stating, “Despite these attacks, we do understand that the parties are continuing preparations to open Ukraine’s Black Sea ports for food and fertilizer exports…we also continue to expect that the Black Sea agreement will be implemented.”
‘Effects of nuclear war globally catastrophic’, new study warns.
A nuclear war could lead to a ‘nuclear ice age’, plummeting global temperatures, eradicating a vast proportion of sea life and largely implicating global food security, a new study indicates.
Researchers at Louisiana State University in the US conducted several computer simulations in an Earth System Model to assess the impacts of regional and global nuclear wars on oceans. The study, which examined the potential consequences of
conflicts between the US and Russia, as well as Pakistan and India, revealed that in every scenario, smoke and soot from firestorms would release into the upper atmosphere, obstructing the sun and plunging temperatures at an average of 13F (-11C) within just one month.
Cheryl Harrison, assistant professor and lead author of the study, said the impact would be all-consuming.
“It doesn’t matter who is bombing whom. It can be India and Pakistan or NATO and Russia. Once the smoke is released into the upper atmosphere it spreads globally and affects everyone,” she told Bloomberg.
“We can and must, however, do everything we can to avoid nuclear war. The effects are too likely to be globally catastrophic,” she added.
The simulations involved testing the impacts of the US and Russia bombing cities and industrial sites with 4, 400 nuclear weapons weighing 100 kilotons or Pakistan and India detonating 500 of the explosives.
Alan Robock, Professor in the Department of Environmental Sciences at Rutgers University, said he hoped the study would “encourage” greater action to thwart the threat.
“Nuclear warfare results in dire consequences for everyone. World leaders have used our studies previously as an impetus to end the nuclear arms race in the 1980s, and five years ago to pass a treaty in the United Nations to ban nuclear weapons. We hope that this new study will encourage more nations to ratify the ban treaty.”
The research warned that a US and Russia conflict may lead to permanent increased Artic sea ice extent and volume.
A UN report also warned of the rapid “global collapse” of civilisations, partially induced by global conflicts, unless urgent steps were taken to address the issue.
The latest American study follows a warning to British troops by the army’s top general to prepare to “deter Russian aggression with the threat of force”. Shortly after Russia’s invasion of Ukraine, the Russia Foreign Minister, Sergie Lavrov said a Third World War would involve nuclear weapons and destruction would not be limited to Eastern Europe.
Ocean temperatures could fall, and sea ice expand by six million square miles, affecting trading as major ports, such as Tianjin in China would be occluded.
Reversing the damage would take decades, the study warned.
A report from the thinktank Stockholm International Peace Research Institute said that the global nuclear arsenal, since the cold war, is expected to increase drastically in the next few years and reversal this amid tensions between Russia and Ukraine is unlikely.
John Erath, senior policy director for the Centre for Arms Control and Non-Proliferation, warned earlier that NATO was only capable of blocking an “extremely limited attack” if Russia were to launch a ballistic missile.
As record temperatures hit the UK, scientists claim that frequent and intense heatwaves are the result of human-induced climate change.
Key Ports in Ukraine are Severely Attacked from Russian Missiles
- According to Ukrainian reports, the city of Odessa was severely attacked, even though Russia agreed to not target any ports with grain shipment.
- These products are vital to fight against the global food crises and caught on fire after the attack, in which Russia claimed they had nothing to do with the attack.
- Russia attacked a key port after the signature of the Istanbul Agreement and agreed with Ukraine to ease the exportation of grain.
- As a result of Russia’s actions, Ukrainian forces have utilised new US missile supplies to target the Antonovsky Bridge in Kherson, which would harshly impact the Russian supply if the bridge was destroyed.
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