Germany Banning Russian Oil Imports by End 2022

Germany has announced a ban on Russian oil imports, halving demand by summer and going to zero by winter.  

One quarter of Germany's oil imports currently come from Russia.  

Natural gas (40% of Germany's needs come from Russia) will be phased out post the oil ban. The 9.5 billion euro pipeline, Nord Stream 2, between Russia and Germany, will now no longer be used having been suspended 2 days before the Russian invastion of Ukraine on February 24th, by German Chancellor Olaf Scholz (successor of Angela Merkel). 

Importing LNG is one option but has been tricky due to the lack of regasification facilities in Germany. The leasing of FSRUs in the short term (Floating Storage and Regasification Units) is one option being explored, and Wilhelmshaven, coastal town facing the North Sea, has been identified as one location.

Employers and unions have resisted an immediate energy import ban due to loss of jobs. The UK will also phase out Russian oil imports by the end of 2022. 

Separately, the EU announced a ban on Russian coal imports on 7 April which will take effect in August (Russia is Europe's largest supplier of thermal coal - which is used in coal-fired power stations).

LME Resumes Nickel Trading after One Week Halt

The LME (an HKEX company) suspended nickel trading for a week after a price surge caused by a short squeeze on Tsingshan Holding Group, the world's largest nickel producer, resulted in "disorderly conditions". Trading resumed on Wednesday 16 March 2022 at 8am.

The Russian invasion of Ukraine has put nickel prices in a tailspin following sanctions of the world's largest exporter of refined nickel and concomitant concerns on global supply.

Nickel demand is driven by stainless steel and battery pack demand in electric vehicles.

Russian and Ukraine Get Comfy with Gas Deal

Russia has agreed to supply Ukraine with gas till end of March 2015.  Just under one third of European gas comes from Russia, and half of that volume comes through Ukraine. The deal involves Ukraine making some advance payments to Russia for winter fuel.

GazProm saga continues...IMF extends loans...Rouble Devaluation Results

Gazprom accuses Ukraine of stealing gas.

In the supply dispute of 2006 there were similar claims.

25% of EU gas consumption (it is estimated) comes from Russia. 80% of the 25% comes from Ukraine, the rest through Belarus (landlocked country south of Lithuania) and Poland.

Belarus also landed a $2.5bn loan from the IMF following a sharp decline in its international reserves, sparked by falling demand for exports and lack of external financing (a direct result of the global financial turmoil). The Central Bank of Belarus allowed the Belarusian rouble to tumble thus increasing competitiveness of exports and stemming the decline in reserves, something the IMF insisted on as a precondition for the loan. Earlier the Russian government had agreed to grant Belarus a $2bn stabilization loan.