Latest news with #Dombrovskis
United News of India
5 days ago
- Business
- United News of India
EU redirects 335 billion Euros of Covid relief money to defence projects
Brussels, June 5 (UNI) The European Union will redirect 335 billion euros from the Resilience and Recovery Facility (RRF), which was established for COVID relief, to defence projects, after receiving permission from the European Commission. According to Politico, the Commission, while declaring the amount to be eligible for defence expenditure, said that countries have until August 2026 to meet the certain agreed targets in order to receive the funds. On Wednesday, the body told countries that defence projects under common EU plans such as the satellite communication programmes were now eligible. The European Commission has called for lawmakers and governments to include in the European Defence Industry Programme (EDIP) regulations - a provision to make it possible for countries to use the recovery money - to make contributions to the defence fund. 'These alternatives could help the Recovery Facility to deliver additional important benefits from common European priorities, including in the areas of security and defense,' Economy Commissioner Valdis Dombrovskis told reporters, listing a large number of ways in which countries can redesign their plans. This move signals a significant shift in Europe's priorities since the pandemic, as the Russia-Ukraine war has both greatly impacted the European economy, as well as led to most of the EU stand with Ukraine and become increasingly hostile towards Russia, necessitating its need for greater defence spending to ensure it security, as well as the advancement of its weapons and arms industry. The idea behind the initiative is, that if a country diverts RRF-backed money to make contributions to the EU's target plans, then it can easily secure the required funds. When asked how defense investments can contribute to the RRF's green and digital goals, Dombrovskis said the current rules provide no specific treatment for defence-related measures. However, there is no clear consensus on the issue, as several countries which include Spain and Italy - the top beneficiaries of the funds - have asked for the postponement of the 2026 deadline. Additionally, the EU executive has also rejected the idea, meaning that a deal has to be reached between countries and then ratified by 20 parliaments, a process that would not only add considerable time to the initiative, but could outright stall it for a very long and uncertain time. UNI ANV PRS
Int'l Business Times
22-05-2025
- Business
- Int'l Business Times
G7 Finance Chiefs Push For Consensus Despite Trump Tariffs
G7 finance leaders played down their differences Thursday, despite turmoil from US President Donald Trump's wide-ranging tariffs, and sought common ground on Ukraine as talks in Canada entered the final hours. The Group of Seven advanced economies are expected to issue a joint statement at the end of their three-day gathering, a diplomatic source told AFP, but all eyes are on whether they can overcome tensions sparked by President Donald Trump's trade wars. "The mood in the meetings was positive and constructive," EU economy chief Valdis Dombrovskis told AFP early Thursday. He said officials made progress on many issues including the global economy, in addressing imbalances, but also with regards to a response to Russia's aggression against Ukraine. "All in all in all, we are making good progress," added Dombrovskis, the European Union commissioner for the economy. Leaders opened a final morning of talks early Thursday, with sessions on financial crimes and artificial intelligence on the agenda at the session, held in western Canada's spectacular Banff National Park. But tensions among the finance ministers and central bank governors from Britain, Canada, France, Germany, Italy, Japan and the United States remained. "On tariffs, obviously that remains a concern," Dombrovskis said, adding that the G7 partners were working together, as well as bilaterally with Washington, "to address this tariffs situation and to find a negotiated solution." German Finance Minister Lars Klingbeil told reporters Thursday it was crucial to "resolve the current trade disputes as quickly as possible." He stressed that higher tariffs place "a heavy burden on the global economy, unsettle the financial markets and ultimately reduce global prosperity," adding that this "cannot be in the interests of the G7." "Our hand is extended," Klingbeil added, noting that US tariffs threaten jobs and economic strength on both sides of the Atlantic. A European official told AFP that while the trade issue is not resolved with this week's talks, "we see the positive side." "Everything was warmer, as if we were suddenly among friends and allies again," the official added. On Thursday, Klingbeil added that he had an "intensive and constructive discussion" with US Treasury Secretary Scott Bessent, whom he plans to meet again in Washington. A day prior, Italian Finance Minister Giancarlo Giorgetti said there were "some difficulties" at the beginning of talks, but that the group was able to overcome these differences. Bessent has been expected to face pushback on the policies, though he told reporters that Wednesday's talks were "very productive." The week's meetings come ahead of the G7 Summit next month, and are seen as a litmus test of how the leaders' gathering -- which Trump is expected to attend -- will proceed. One topic where consensus could prove easier to achieve is China, with the G7 broadly aligned on addressing Beijing's trade practices. Ukrainian Finance Minister Sergii Marchenko attended the talks in Banff and has urged the G7 to maintain pressure on Russia. Wednesday's session on Ukraine was chaired UK finance minister Rachel Reeves, who said "pressure on Russia's war machine is needed now more so than ever," according to a government statement. She charged that Russia's President Vladimir Putin has "failed to engage in good faith with proposals", and attempts to broker a ceasefire from his "illegal and brutal war." Reeves also aired an ambition to move fast in lowering the $60 price cap on Russian crude oil, the UK statement said. Lars Klingbeil, Federal Minister of Finance and Vice Chancellor at G7 meeting in Banff, Canada AFP
France 24
22-05-2025
- Business
- France 24
G7 finance chiefs push for consensus despite Trump tariffs
The Group of Seven advanced economies are expected to issue a joint statement at the end of their three-day gathering, a diplomatic source told AFP, but all eyes are on whether they can overcome tensions sparked by President Donald Trump's trade wars. "The mood in the meetings was positive and constructive," EU economy chief Valdis Dombrovskis told AFP early Thursday. He said officials made progress on many issues including the global economy, in addressing imbalances, but also with regards to a response to Russia's aggression against Ukraine. "All in all in all, we are making good progress," added Dombrovskis, the European Union commissioner for the economy. Leaders opened a final morning of talks early Thursday, with sessions on financial crimes and artificial intelligence on the agenda at the session, held in western Canada's spectacular Banff National Park. But tensions among the finance ministers and central bank governors from Britain, Canada, France, Germany, Italy, Japan and the United States remained. 'Joint solutions' "On tariffs, obviously that remains a concern," Dombrovskis said, adding that the G7 partners were working together, as well as bilaterally with Washington, "to address this tariffs situation and to find a negotiated solution." German Finance Minister Lars Klingbeil told reporters Thursday it was crucial to "resolve the current trade disputes as quickly as possible." He stressed that higher tariffs place "a heavy burden on the global economy, unsettle the financial markets and ultimately reduce global prosperity," adding that this "cannot be in the interests of the G7." "Our hand is extended," Klingbeil added, noting that US tariffs threaten jobs and economic strength on both sides of the Atlantic. A European official told AFP that while the trade issue is not resolved with this week's talks, "we see the positive side." "Everything was warmer, as if we were suddenly among friends and allies again," the official added. On Thursday, Klingbeil added that he had an "intensive and constructive discussion" with US Treasury Secretary Scott Bessent, whom he plans to meet again in Washington. A day prior, Italian Finance Minister Giancarlo Giorgetti said there were "some difficulties" at the beginning of talks, but that the group was able to overcome these differences. Bessent has been expected to face pushback on the policies, though he told reporters that Wednesday's talks were "very productive." The week's meetings come ahead of the G7 Summit next month, and are seen as a litmus test of how the leaders' gathering -- which Trump is expected to attend -- will proceed. One topic where consensus could prove easier to achieve is China, with the G7 broadly aligned on addressing Beijing's trade practices. 'Russia's war machine' Ukrainian Finance Minister Sergii Marchenko attended the talks in Banff and has urged the G7 to maintain pressure on Russia. Wednesday's session on Ukraine was chaired UK finance minister Rachel Reeves, who said "pressure on Russia's war machine is needed now more so than ever," according to a government statement. She charged that Russia's President Vladimir Putin has "failed to engage in good faith with proposals", and attempts to broker a ceasefire from his "illegal and brutal war."
Yahoo
19-05-2025
- Business
- Yahoo
EU to push G7 to lower Russian oil price cap, commissioner says
The European Union will propose this week that Group of Seven (G7) finance ministers reduce the current $60-per-barrel cap on Russian seaborne oil exports, European Economic Commissioner Valdis Dombrovskis said on May 19, according to Reuters. Brussels and its allies seek to further reduce the Kremlin's revenue from fossil fuel exports, a key funding source for its war against Ukraine. Dombrovskis confirmed the EU will formally raise the issue during this week's G7 finance ministers' meeting in Canada. "This is something which we flagged from the Commission's side in the context of the 18th sanctions package," Dombrovskis said. "I would expect some interest also from other G7 partners in this regard and some discussion." The G7 oil price cap, established in December 2022, prevents Western companies from shipping, insuring, or providing related services for Russian crude sold above $60 per barrel. EU officials told Reuters that a $50 per barrel proposal would be made at the upcoming meeting. Western leaders are concerned that the existing cap has lost effectiveness as Russia reroutes exports through a "shadow fleet" of tankers operating outside regular maritime oversight. The fleet enables Moscow to bypass the cap and sell oil above the threshold, including to countries in Asia. Germany's Foreign Minister Johann Wadephul on May 17 said the EU would back expanded sanctions targeting this shadow fleet. The Kremlin's budget is increasingly strained by soaring military expenditures, with Russia's Finance Ministry relying heavily on energy revenues to maintain operations and fund continued aggression against Ukraine. Read also: Trump calls Putin after Ukraine, Russia peace talks in Istanbul We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
19-05-2025
- Business
- Yahoo
EU will propose that G7 further reduce price cap on Russian oil
This week, the EU will propose lowering the current price cap (US$60 per barrel) on Russian oil transported by sea at the G7 finance ministers' meeting. Source: Valdis Dombrovskis, European Commissioner for Economy and Productivity, as reported by Reuters Details: This will be done as part of a new package of sanctions against Moscow. "Dombrovskis did not mention the level to which the European Union would want the price cap lowered, but EU officials briefed on the discussions said the EU would propose US$50 per barrel," Reuters reports. "Asked by reporters if he would make the proposal to lower the cap at the G7 finance ministers' meeting in Canada this week, he said: 'Yes'," the article says. "This is something which we flagged from the Commission's side in the context of the 18th sanctions package. I would expect some interest also from other G7 partners in this regard and some discussion," the agency quotes Dombrovskis as saying. The G7 countries are the United States, Canada, the United Kingdom, France, Germany, Italy, and Japan. The European Commission and the head of the Eurogroup are also involved in the G7 finance ministers' meetings. The G7 price cap, agreed upon in December 2022, bans trade in Russian crude oil transported by tankers if the price exceeds US$60 per barrel. It also prohibits shipping, insurance, and reinsurance companies from working with Russian crude oil cargoes worldwide unless they are sold at a price below the cap. This measure was intended to reduce Russia's revenues so that it would have less money to finance the war against Ukraine, while preventing a sharp drop in global oil supplies. "Russia has been bypassing the G7 price cap through a 'shadow fleet' of tankers that do not get their insurance from Western companies and Russian Urals crude has been trading above the price cap for much of the time," the agency says. "But the price has fallen below US$60 in early April, as global concern about economic growth in the wake of US announcements on global tariffs hit oil prices as well," the publication said. Background: Earlier, it was reported that in the first quarter of 2025, exports of goods from Russia fell to US$94.9 billion, which is 6.8% less than in the same period in 2024. Nevertheless, imports remained almost unchanged at US$63.1 billion (+0.1%). As a result, the foreign trade balance decreased by 17.8% to US$31.8 billion. The main reason for the decline is cheaper oil. According to the Russian Ministry of Economic Development, in 2024, the price of Urals crude rose from US$64.1 to US$70.3, while in 2025, it fell from US$67.7 to US$59 per barrel. As a result, exports of mineral products, which account for more than half of Russian exports, fell by 14.1% to US$55.4 billion. Earlier, the price of Russian oil in roubles fell below 4,000 roubles per barrel, the lowest level in two years and 40% less than provided for in the state budget. According to Reuters estimates, the average price of Urals and ESPO crude fell to US$48.92 per barrel, or 3,900 roubles. This is less than the figure of 6,700 roubles featured in the Russian budget. This is the lowest price since May 2023 and is also significantly lower than the updated government forecast of 5,281 roubles per barrel, which is used to calculate taxes. Due to the fall in oil prices, the Russian Federation's budget deficit has sharply increased, forcing the government to revise its financial indicators. US President Donald Trump said that lower oil prices are putting more pressure on Russia and increasing the chances of a peaceful deal to end the war in Ukraine. Support Ukrainska Pravda on Patreon!
