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Mohammed Al-Shatti

Ukraine issue poses a challenge to energy security

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Ukraine Crisis: BP to exit Rosneft; EU bans flights; Germany to cut Russian gas

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Updated 28 February 2022
Arab News
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Ukraine Crisis: BP to exit Rosneft; EU bans flights; Germany to cut Russian gas

  • The Group of Seven leaders said on Sunday that western allies had decided to cut off "certain Russian banks" from SWIFT
Updated 28 February 2022
Arab News

RIYADH: The EU decided to ban its aerospace to Russian flights and aircrafts in a fresh round of actions in response to Russia's invasion of the Ukraine.

Highlights:

  • The German government had asked utility firm Uniper UN01.DE to resume its plans to build a liquefied natural gas, or LNG, terminal in Wilhelmshaven, Handelsblatt newspaper reported on Sunday, as Germany steps up its plans to cut dependence on Russian gas.
  • UK considers using strategic oil reserves to stabilize prices, Bloomberg reported
  • British energy giant BP said on Sunday it had decided to exit its 19.75 percent stake in Russian state-controlled oil firm Rosneft after Russia's invasion of Ukraine.
  • BP Chief Executive Bernard Looney, who will step down from the Rosneft board, said in a statement that the invasion "caused us to fundamentally rethink BP's position with Rosneft."
  • Britain's business secretary Kwasi Kwarteng said on Sunday he welcomed BP's decision. "Russia's unprovoked invasion of Ukraine must be a wake up call for British businesses with commercial interests in [Russian President Vladimir] Putin's Russia," he said on Twitter.
  • US banks are preparing for retaliatory cyberattacks after Western nations slapped a raft of stringent sanctions on Russia for invading Ukraine, cyber experts and executives said.

 

From Earlier Today:

 

Fire in Ukraine oil and gas facilities

Huge explosions from Russian attacks on oil and gas installations lit up the night sky in Ukraine early on Sunday, while Western allies tightened sanctions to banish major Russian banks from the main global payments system.

Ukrainian forces were holding off Russian troops advancing on the capital Kyiv, President Volodymyr Zelensky said as the biggest assault on a European state since World War Two entered a fourth day.

But the night was brutal, with shelling of civilian infrastructure and targets including ambulances, Zelensky said.

Germany switch to LNG

Germany will make good on plans to build two liquefied natural gas (LNG) terminals and up its natural gas reserves to cut its dependence on Russian gas after Russia's invasion of Ukraine, Chancellor Olaf Scholz said on Sunday.

"We will do more to ensure secure energy supply for our country," he told lawmakers in a special Bundestag session called to address the Ukraine crisis.

"We must change course to overcome our dependence on imports from individual energy suppliers."

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Germany has been under pressure from other Western nations to become less dependent on Russian gas, but its plans to phase out coal-fired power plants by 2030 and to shut its nuclear power plants have left it with few options.

Earlier this week Germany halted the $11 billion Nord Stream 2 Baltic Sea gas pipeline project, Europe's most divisive energy project, in response to Russia's actions toward Ukraine.

Russian flights ban

A European Union-wide ban for Russian flights is now part of a fresh package of sanctions on Moscow discussed on Sunday by the bloc's foreign ministers.

A vast majority of EU member states have already closed their airspace to these flights.

EU officials meet for emergency refugee talks

European Union interior ministers are gathering Sunday for emergency talks on how to cope with an influx of refugees from conflict-hit Ukraine as tens of thousands of people flee across the border into Poland, Hungary, Romania and elsewhere.

The U.N. refugee agency, the UNHCR, estimates that more than 200,000 people displaced by the fighting in Ukraine have fled the country, and that up to four million could flee if the fighting spreads.

Poland said Saturday that over 100,000 people had entered from Ukraine in the previous 48 hours alone.

At a meeting in Brussels, the ministers will look at ways to shelter people, how to manage the security challenges that the conflict poses to the EU’s external borders, and what kind of humanitarian support can be provided to Ukraine.
Those arriving at the borders are mostly women, children and the elderly.

Ukrainian President Volodymyr Zelensky has banned the departure of men aged between 18 to 60 so they can take up arms against Russian forces.

Separately, Reuters reported that Ukraine is seeking to take Russia to the international court in The Hague, citing President Zelensky.

UK to seek further sanctions as Russian banks face SWIFT ban

British foreign minister Liz Truss said she would press for further sanctions against Russia, especially cutting off their oil and gas supplies. 

“It doesn't end here. I've got a meeting today with my G7 counterparts. I am going to be pressing for further tightening against Russia, particularly including the access to Russian oil and gas,” said Truss. 

She also warned that Russian leaders will be prosecuted for war crimes. 

The Group of Seven leaders said on Sunday that western allies had decided to cut off "certain Russian banks" from the worldwide interbanking communication system called SWIFT.


The statement, in a joint declaration published by the French presidency, did not specify which Russian banks would be affected.

It added a transatlantic task force will soon be put in place to coordinate sanctions against Russia, Reuters reported.

Google, YouTube take action

Google has blocked the download of Russian state-owned media outlet RT's mobile app in Ukrainian territory. 

Alphabet Inc. which owns Google made this decision upon request from the Ukrainian government. 


Earlier, Google had barred RT and several other Russian channels from receiving money for ads on their websites and apps. 

YouTube has also suspended multiple Russian channels, including RT from revenue generation on the site. 

 

“In light of extraordinary circumstances in Ukraine...we're pausing a number of channels' ability to monetize on YouTube, including several Russian channels affiliated with recent sanctions,” said YouTube in a statement.

Russian Central Bank insists it can ride the storm

Russia's banking system is stable even after facing a raft of new sanctions from the US and the European Union, according to Russia's Central Bank. 

"The Bank of Russia has the necessary resources and tools to maintain financial stability and ensure the operational continuity of the financial sector," said the bank in a statement. 

On Saturday, the US, Europe, and Canada had announced the freezing of Russia's Central Bank's assets.

Reuters reported the bank as also saying it would be temporarily easing restrictions on banks' open foreign currency positions. 

Putin puts Russia’s nuclear forces on alert

In a dramatic escalation of East-West tensions, President Vladimir Putin ordered Russian nuclear forces put on high alert Sunday in response to what he called “aggressive statements” by leading NATO powers, AP reported.

The order means Russia’s nuclear weapons are prepared for increased readiness to launch, raising the threat that the tensions could boil over into nuclear warfare.

In giving it, the Russian leader also cited hard-hitting financial sanctions imposed by the West against Russia, including Putin himself.

Speaking at a meeting with his top officials, Putin directed the Russian defense minister and the chief of the military’s General Staff to put the nuclear deterrent forces in a “special regime of combat duty.”

 

Topics: energy

Saudi Arabia committed to preserving environment, water resources, minister tells WEF

Updated 28 April 2024
Nadia Alfaour
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Saudi Arabia committed to preserving environment, water resources, minister tells WEF

  • Nation providing incentives for private sector to become more engaged, Abdulrahman Al-Fadley says
Updated 28 April 2024
Nadia Alfaour

DUBAI: Saudi Arabia has detailed plans for the protection of its lands and environmental resources, the Minister of Environment, Water and Agriculture said on Sunday.

Speaking at the World Economic Forum in Riyadh, Abdulrahman Al-Fadley said: “We have devised our plans based on the preservation of our environment and the management of our water resources. The Kingdom is also providing incentives for the private sector to become more engaged and more responsible toward the environment.”

With 40 percent of lands around the world degraded and further degrading at an alarming rate, critical action is needed as the UN Convention to Combat Desertification COP16 is set to take place in Riyadh in December.

Al-Fadley said Saudi Arabia had preserved millions of hectares of land and set up programs for cloud seeding and increasing the number of dams in the country.

“This will not only be beneficial to the Kingdom but for the whole region,” he said. “With us hosting COP16 we are hoping to give the meeting the importance it commands. We don’t want matters to go back to the status quo after COP16 ends.”

Tariq Al-Olaimy, a member of the Global Shapers Community Foundation Board at the WEF, commended King Salman for his land restoration efforts.

“When you put nature first, you are equally putting people first,” he said. “Nature is our greatest collaborator … There is no successful growth story without successful land restoration and this starts inwardly, through our religion, community, values and moral clarity.”

Ibrahim Thiaw, secretary of the UNCCD, warned of global repercussions if the world did not pay heed to environmental safekeeping.

“Entire ecosystems are being destroyed through actions and inactions,” he said. “There has been a 29 percent increase in droughts in the past few years and that is affecting 1.8 billion people around the world. For poor nations that is disastrous and carries a large death toll of animals, people and agriculture. We have to be more proactive and not just emergency-ready. We must attempt to avoid emergencies.”

Thiaw said the Panama Canal’s functionality had been reduced by 12 percent, which was causing a problem for supplies.

“Demand is increasing while resources are shrinking,” he said. “As humanity we have been looking at resources as if they are unlimited. We have not been managing them. Companies need to reset their relationship with nature and we need to focus on land restoration to keep going.”

Naoki Ishii, director of the Center for Global Commons, had similar concerns.

“We are on a collision course,” he said. “The only solution is to modify our economic system. COP16 must be transformative for all of us. We need the political momentum to implement positive changes.

“If we are able to push those efforts, economically and ideally speaking, that will be a game changer.”

Topics: WEF Riyadh Saudi Arabia WEF Abdulrahman Al-Fadley

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Saudi Arabia, UAE have world’s most ambitious decarbonization programs: WEF panel

Updated 28 April 2024
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Saudi Arabia, UAE have world’s most ambitious decarbonization programs: WEF panel

  • “Solving sustainability problems requires technology and China has contributed greatly by increasing technical progress and making the cheapest energy available to the world”
Updated 28 April 2024
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DUBAI: A panel of ministers and experts gathered at the World Economic Forum in Riyadh on Sunday to discuss the road map for tripling renewables by 2030.

The UAE’s Minister of Energy and Infrastructure Suhail Mohamed Al-Mazrouei said his country’s goal would not only be reached but possibly exceeded by 2030.

“The UAE has been offering solar power to aid the world in reaching the goal of tripling renewables,” he said. “We have very few years until 2030, we need to work alongside and encourage countries to make the achievement by then.”

Li Zhenguo, president of Longi Green Energy Technology, said the Chinese government had been at the forefront of efforts to develop renewables.

“In 2023, China installed 216 solar power plants, which is more than 50 percent of the global capability,” he said.

“Solving sustainability problems requires technology and China has contributed greatly by increasing technical progress and making the cheapest energy available to the world.”

Marco Arcelli, CEO of Saudi-based ACWA Power, said he was surprised by the momentum in the region.

“Saudi and UAE have the most ambitious decarbs programs in the world. There is a speed and dimension you don’t see much elsewhere,” he said.

“There is leadership with a vision, there is cheap energy available and I believe you will start seeing greenshoring in the Kingdom by 2030. Lots of upcoming projects in the country, be it NEOM or others, will be solar driven and using renewable energy.”

Kuwait’s Minister of Electricity, Water and Renewable Energy Salem Alhajraf said there was a need to increase global production capacity.

“Innovative financing is key,” he said. “We need to move from small giga-sized projects to deploying renewables. Cities or towns with small populations can possibly have all their needs met by solar power.”

Stephanie Jamison, global Resources Industry Practices chair at Accenture, said her company had been developing guidelines for community engagement and nature transition.

“By conducting surveys and interviewing various CEOs, it has become clear that companies understand the impact they are making on nature. And so, partnerships between companies and proactive partnerships between companies and the community is one way to tackle challenges.”

Topics: WEF Riyadh Saudi Arabia UAE WEF

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Saudi energy minister, EU official discuss cooperation on clean energy

Updated 28 April 2024
Arab News
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Saudi energy minister, EU official discuss cooperation on clean energy

Updated 28 April 2024
Arab News

RIYADH: Saudi Energy Minister Prince Abdulaziz bin Salman on Sunday held talks with EU Energy Commissioner Kadri Simson to discuss prospects for cooperation in the field of clean energy.

The top officials met on the sidelines of the World Economic Forum in the Saudi capital, the Saudi Press Agency reported. They discussed ways to strengthen bilateral ties, boost cooperation for the promotion of green energy and advance the goals of the Paris Agreement and ensure the implementation of the outcomes of the COP28 held in Dubai last year.

The Paris Agreement is an international treaty on climate change that was adopted back in 2015. It was negotiated by 196 parties at COP21 in France and covers climate change mitigation, adaptation, and finance.

They reaffirmed the common goals of Saudi Arabia and the EU and the determination of both parties to accelerate private investment in the renewable energy sector, cooperate on electricity interconnection and the integration of renewables into the electricity grid.

The officials stressed the need to strength the electricity supply infrastructure through demand side management smart grid. They also discussed carbon capture, utilization and storage technology and opportunities for industrial partnerships in those sectors.

They also shared their view on building on the UNFCCC, the Paris Agreement and COP28 outcomes. The officials also discussed a Saudi-EU memorandum of understanding to boost cooperation in the energy sector.

According to SPA report, they were of the view that such an MoU should provide a solid and mutually beneficial basis for orienting and anchoring investment decisions in the energy and clean tech sectors, involve and mobilize stakeholders from the public, private and financial sectors, and lay the foundation for a more sustainable and secure energy future.

The European Commission and Saudi Arabia aim to conclude the MoU in the next few months.

 

Topics: Saudi Arabia EU renewables

Saudi Arabia to host 28th World Investment Conference in Riyadh

Updated 28 April 2024
Arab News
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Saudi Arabia to host 28th World Investment Conference in Riyadh

Updated 28 April 2024
Arab News

RIYADH: Saudi Arabia is on track to host the 28th World Association of Investment Promotion Agencies’ World Investment Conference from Nov. 25 to 27 in Riyadh.

The forum themed “Future-ready IPAs: Navigating digital disruption and sustainable growth,” will bring together leaders from investment promotion agencies, corporates, multilateral institutions, and other stakeholders to discuss global financial trends and opportunities, according to a statement. 

The Kingdom’s selection as a host underscores its position as an international funding hub, according to Saudi Investment Minister Khalid Al-Falih. 

“We are honored to be welcoming the global investment community to Saudi Arabia. Our strategic location at the crossroads of three continents, coupled with our world-class investment ecosystem and long-term political and economic stability, has seen the Kingdom develop into a global investment hub,” Al-Falih said.

“The World Investment Conference will serve as a platform to showcase our nation’s potential and forge partnerships that will shape the global investment landscape for years to come,” the minister added. 

On WAIPA’s behalf, Executive Director and CEO Ismail Ersahin said: “WAIPA is honored that the 28th WAIPA World Investment Conference will be held in Riyadh, a city with a rich history and culture.”

Ersahin added: “With each edition, the WIC reaffirms its status as a guiding force for sustainable and inclusive development.” 

He went on to stress how the conference is poised to be an impactful gathering aimed at the future readiness of IPAs. 

Since 1995, the annual gathering has provided a forum for stakeholders to exchange insights and best practices and forge partnerships that drive economic development globally.  

Topics: Saudi Arabia International forum Host World Association of Investment Promotion Agencies

Human capital a ‘key challenge’ for Kingdom’s tourism sector, says Saudi minister

Updated 28 April 2024
ANAN TELLO
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Human capital a ‘key challenge’ for Kingdom’s tourism sector, says Saudi minister

  • Saudi Arabia's tourism sector is 'heading to achieve $80 billion this year' in private investment, Al-Khateeb told a WEF panel
Updated 28 April 2024
ANAN TELLO

LONDON: Developing human capital is a key challenge for Saudi Arabia’s travel sector, the country’s tourism minister has said on Sunday.

Ahmed Al-Khateeb, speaking during a two-day meeting of the World Economic Forum in Riyadh, discussed the Kingdom’s burgeoning tourism industry, which has boomed over the past half-decade.

To address the human capital challenge, the Saudi leadership has encouraged young people across the Kingdom “to join the sector,” he said.

“We are spending a lot to train (young Saudi talents) and scale them, and involve them in the sector,” he told the “Vacationomics” panel discussion, adding that hiring local experts is essential for delivering better tourism experiences.

“You get the best experience and you know more about other people’s culture and other nations’ cultures when you deal and interact with locals,” he said. “We want to make sure that our guests are served by local people.”

Saudi Arabia has delivered “strong growth in Q1 this year, and we are moving to deliver our 2030 numbers,” the minister said.

The Kingdom’s tourism sector “has come a long way” since the launch of the National Tourism Strategy as part of efforts to diversify the economy, Al-Khateeb said, adding that the industry is “heading to achieve $80 billion this year” in private investment.

Last year, Saudi Arabia attracted about $66 billion in private investment into tourism.

“We doubled the number of visitors coming from outside — 100 million in total … 77 million domestic (and) 27 million international,” he said. “This is double the number that we achieved before we launched our National Tourism Strategy.

“We have the funding. We have a great country. We have everything that the international tourists would like to see and experience.”

Jerry Inzerillo, chief of the Diriyah Gate Development Authority, told the panel: “What the Gulf and its leadership will do in the next 10 years is going to be breathtaking to allow people to come from all over the world.”

With “so much to do in the region,” Inzerillo said he believed the “warmth and hospitality” of the Saudi people is serving as a strong selling point for tourism in the Kingdom.

Though the traditional Gulf tourism market in Saudi Arabia is well developed, European tourism is “now activating” through new business with the Kingdom, he added.

“And as we sign more and more airline deals and… (the) Ministry of Tourism has done a brilliant job in getting bilaterals, you’ll see those numbers grow very exponentially.”

Other panelists included Abdulla Bin Touq Al-Marri, UAE minister of economy; Thiago Alonso de Oliveira, CEO of JHSF Participacoes; and Aireen Omar, president and CEO of RedBeat Capital.

Topics: WEF Riyadh tourism

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