Latest news with #MahaElDahan
Yahoo
08-05-2025
- Business
- Yahoo
Saudi Arabia sits on fence over BRICS with eye on vital ties with US
By Pesha Magid, Maha El Dahan and Manya Saini RIYADH/DUBAI (Reuters) - Saudi Arabia has held off formally joining the BRICS bloc of nations despite attending a meeting in Brazil last week, two sources said, finessing an issue that could upset Washington as Riyadh seeks to seal deals with its U.S. ally. The issue of BRICS membership has been diplomatically sensitive for Saudi Arabia since it was first invited to join in 2023, and remains so with President Donald Trump due to visit next week and Riyadh negotiating nuclear and technology deals. BRICS, founded as a grouping of Brazil, Russia, India, China and South Africa to counter Western dominance of the world order, has grown in recent years to include emerging economies such as the United Arab Emirates, Egypt and Indonesia. But while the BRICS website shows Saudi Arabia - the world's largest oil exporter - as a member, it has yet to join, according to the two sources, both with direct knowledge of Saudi policy. Saudi Arabia's government communications office did not immediately respond to a request for comment. Brazil's foreign ministry referred Reuters to the Saudi government when asked about the kingdom's listed status as a member on the website. Brazil is currently presiding over BRICS. Riyadh does not want to risk U.S. anger as negotiations are underway with Washington, one of the sources and a diplomat said. Saudi Arabia sent its deputy foreign minister to the April 29 meeting in Rio de Janeiro, where ministers from the fast-expanding bloc failed to agree a joint communique. The kingdom's ambivalence about BRICS membership lays bare its high-stakes balancing act between China, its biggest oil export customer, and Washington, its indispensable security and technology partner - a tightrope walk made ever more precarious by the deepening U.S.-Chinese divide. "The Saudis still see tons of value in engaging with BRICS and its member states. They will keep double-dipping – or multi-dipping – with global partnerships as long as they can," said Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington. "I think the Saudi calculation is that what they may be able to get out of the U.S. outweighs what they could get from BRICS membership, at least over the short term.' In January, Trump demanded that BRICS commit to not creating a new currency or supporting another currency that would replace the U.S. dollar, or face 100% tariffs against BRICS nations. SEEKING ALLIES While the kingdom still favors its historic ally the United States, it is also seeking to nurture trade ties with China, the largest importer of Saudi crude. In February, Saudi Arabia exported goods worth 15.2 billion riyals ($4.05 billion) to China, marking a 20.6% increase from a year earlier, when trade amounted to 12.6 billion riyals, data from the Observatory of Economic Complexity show. Over the past five years, trade has grown at an annualised rate of 50.3%. Total Chinese investment and construction contracts in Saudi Arabia between 2005 and mid-2024 reached nearly $71 billion, according to the China Global Investment Tracker, reflecting Beijing's growing role in the kingdom's economic transformation. The Saudi partnership with the United States remains central to its security, investment and technology ambitions, even as it expands relations with rival powers like China and Russia. The U.S. is poised to offer Saudi Arabia an arms package worth well over $100 billion, sources told Reuters last month, saying the proposal was being lined up for announcement during Trump's visit. BRICS has sought to shift away from the dollar into other currencies. But a study by the Atlantic Council's GeoEconomics Center last year showed the greenback remains the world's primary reserve currency, and neither the euro nor the BRICS countries have managed to reduce global reliance on the dollar. "While BRICS is a useful forum for airing grievances over American behaviour, it is not yet a body coherent enough to provide public goods on key issues like currency cooperation, security, or economic integration," said Steffen Hertog, associate professor in comparative politics at the London School of Economics. "Saudi feels like they have the leverage and they are enjoying the position," said Saudi analyst Aziz Alghashian. "They see it that the United States is still the main actor, but there are others that could also provide utility," he added. ($1 = 3.7509 riyals)
Zawya
07-05-2025
- Business
- Zawya
Iraq boosts condensate production amid gas capture efforts, statement says
Iraq's Deputy Prime Minister for Energy Affairs and Minister of Oil announced in a statement that the country has seen an increase in natural gas production and associated gas capture projects. These initiatives, aimed at reducing flaring and meeting local demand, have led to the availability of large volumes of condensates, reaching approximately 160,000 barrels per day, said an Iraqi oil ministry statement on Wednesday. Condensate, an ultra-light oil, is primarily processed at splitters to produce petrochemical feedstock naphtha or used as a diluent for heavy crude. According to the statement, most of the condensates produced are blended with crude oil to enhance their specifications. The increase in condensate production marks a notable step in Iraq's efforts to optimize its energy resources and reduce environmental impact through improved gas capture and utilisation. (Reporting by Maha El Dahan; Writing by Ahmed Rasheed; Editing by Vijay Kishore)
Yahoo
16-04-2025
- Politics
- Yahoo
No final agreement at London Sudan conference with Arab powers at odds
By Maha El Dahan and Nafisa Eltahir DUBAI/CAIRO (Reuters) - A top Emirati diplomat said the Gulf state was disappointed at the failure of a London conference this week to find consensus on ending the two-year war in Sudan, as sources blamed differences between Arab states. Both Sudan's army and the paramilitary Rapid Support Forces have drawn on the support of countries in the region, making them key to efforts to end the conflict, which has displaced 13 million people and spread disease and hunger among those remaining. At a London-hosted meeting on Tuesday, however, the UAE, Egypt and Saudi Arabia disagreed on issues surrounding Sudan's governance, four sources told Reuters. "There was a clear call from us that we needed unity around, you know, an urgent need first and foremost that Sudan should transition to a independent civilian-led government," said Lana Nusseibeh, assistant minister for political affairs at the UAE's Ministry of Foreign Affairs. "And that's why ... we were very disappointed that despite the gravity of the situation and the UK's efforts, we were unable to agree on a joint communique yesterday." Sudan had protested the inclusion of countries including the UAE which it has accused of supporting the RSF including this month at the International Court of Justice, accusations the UAE denies. The summit also included Egypt, which maintains close ties to the Sudanese army, which has run Sudan since a coup in 2021, as well as Saudi Arabia, which has hosted rounds of failed peace talks. Two Egyptian security sources said that disagreements were over the insistence by some of the presence of a civilian-led government in Sudan versus a path to end the war and leaving the issue of governance to the Sudanese to decide later on. But one diplomat present at the talks said the disagreement stemmed from language on state institutions. Egypt argued for language rejected by others including the UAE as it was seen as legitimising the army regime, while Saudi Arabia supported Egypt's efforts, the source added. Saudi Arabia's government communications office and the spokesman for the Egyptian foreign ministry did not immediately respond to requests for comment. The open disagreement between the Arab powers ultimately doomed the communique, the diplomatic source said, and created a further roadblock for future peace efforts. The disagreements came amid the backdrop of efforts by the RSF to install a parallel government, which it says will represent all of Sudan. Such a government, however, is unlikely to gain wide approval. The army and RSF had ruled Sudan together since ousting civilians in 2021, before falling out in April 2023 over plans to integrate their forces. Though the RSF quickly took over swathes of Sudan during the first half of the war, the army has in recent months regained most of central Sudan. The RSF is consolidating its control of the Darfur region in the west, including in recent days during devastating raids of the Zamzam displacement camp which have drawn widespread criticism.
Yahoo
04-03-2025
- Business
- Yahoo
Talks to resume Kurdish oil exports postponed to Thursday after financial disputes
By Ahmed Rasheed, Maha El Dahan and Nerijus Adomaitis BAGHDAD/DUBAI (Reuters) - Talks to speed a resumption in oil exports from Iraq's semi-autonomous Kurdistan region have been delayed until Thursday because of disagreements over terms between oil companies and the oil ministry, three sources told Reuters. The meeting had been scheduled for Tuesday but initial talks on Sunday ended without agreement on key issues including how foreign companies operating in the region would be paid, forcing the two-day postponement. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. The meeting was called after repeated statements by Iraqi oil minister Hayan Abdel-Ghani and his government said that the Iraq-Turkey pipeline, which has been shut for two years, would resume exports soon. But the Association of the Petroleum Industry of Kurdistan (APIKUR), which groups eight companies representing 60% of production from the region, said last Friday that there had been no formal approach offering any clarity on commercial agreements and guarantees of payment for past and future exports. Iraq has come under U.S. pressure to allow Kurdish oil exports via Turkey, thereby boosting supply to the global market at a time when Washington wants to reduce Iranian oil exports as part of efforts to curb Iran's nuclear programme. Seven sources told Reuters a meeting had taken place on Sunday with no agreement made and that one of the main sticking points had been written guarantees on payment for past and future exports. An Iraqi oil ministry source said that oil companies had demanded clarification on how debts accumulated between 2022 and 2023 would be repaid but were told that the meeting was held to discuss future exports and not past payments. Other sticking points included pricing and payment mechanisms, the sources said. The Sunday meeting, which took place at the oil ministry headquarters in Baghdad, included the international oil companies operating in Kurdistan and Kurdish regional energy officials. Oil companies and the Kurdish officials will confer with the Kurdistan Regional Government before relaying their final position to Baghdad, said one Kurdish official briefed about the meeting. Another key lingering issue is companies seeking guarantees over their contracts, the seven sources said. Reuters reported last week that the Iraqi government had made a fresh attempt to deem all Kurdish production-sharing oil contracts illegal through filings to a Baghdad court.
Yahoo
21-02-2025
- Business
- Yahoo
Exclusive-U.S. piles pressure on Iraq to resume Kurdish oil exports, sources say
By Maha El Dahan, Ahmed Rasheed and Jarrett Renshaw DUBAI/BAGHDAD/WASHINGTON (Reuters) - U.S. President Donald Trump's administration is piling pressure on Iraq to allow Kurdish oil exports to restart or face sanctions alongside Iran, eight sources with direct knowledge of the matter told Reuters. A speedy resumption of exports from Iraq's semi-autonomous Kurdistan region would help to offset a potential fall in Iranian oil exports, which Washington has pledged to cut to zero as part of Trump's "maximum pressure" campaign against Tehran. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. The U.S. government has said it wants to isolate Iran from the global economy and eliminate its oil export revenues in order to slow Iran's development of a nuclear weapon. Iraq's oil minister made a surprise announcement on Monday that exports from Kurdistan would resume next week. That would mark the end of a near two-year dispute that has cut flows of more than 300,000 barrels per day (bpd) of Kurdish oil via Turkey to global markets. Reuters spoke to eight sources in Baghdad, Washington and Erbil, the capital of Iraqi Kurdistan, who said that mounting pressure from the new U.S. administration was a key driver behind Monday's announcement. All of the sources declined to be named due to the sensitivity of the issue. Iran views its neighbor and ally Iraq as vital for keeping its economy afloat amidst sanctions. But Baghdad, a partner to both the United States and Iran, is wary of being caught in the crosshairs of Trump's policy to squeeze Tehran, the sources said. Trump wants Iraqi Prime Minister Mohammed Shia al-Sudani to sever economic and military ties with Iran. Last week, Reuters reported that Iraq's central bank blocked five more private banks from dollar access at the request of the U.S. Treasury. Iraq's announcement on export resumption was hurried and lacked detail on how it would address technical issues that need to be resolved before flows can restart, four of the eight sources also. Iran wields considerable military, political and economic influence in Iraq through its powerful Shi'ite militias and the political parties it backs in Baghdad. But the increased U.S. pressure comes at a time when Iran has been weakened by Israel's attacks on its regional proxies. CURB SMUGGLING With the pipeline taking Kurdish crude to the Turkish port of Ceyhan closed since 2023, the smuggling of Kurdish oil to Iran by truck has flourished. The U.S. is urging Baghdad to curb this flow, six of the eight sources said. Reuters reported in July that an estimated 200,000 barrels per day of cut-price crude was being smuggled from Kurdistan to Iran and, to a lesser extent, Turkey by truck. The sources said the exports remained at around that level. "Washington is pressuring Baghdad to ensure Kurdish crude is exported to global markets through Turkey rather than being sold cheaply to Iran," said an Iraqi oil official with knowledge of the crude trucking shipments crossing to Iran. While the closure of the Turkish pipeline has prompted an uptick in Kurdish oil smuggling via Iran, a larger network that some experts believe generates at least $1 billion a year for Iran and its proxies has flourished in Iraq since al-Sudani took office in 2022, Reuters reported last year. Two U.S. administration officials confirmed the U.S. had asked the Iraqi government to resume Kurdish exports. One of them said the move would help to dampen upward pressure on oil prices. Asked about the administration's pressuring of Iraq to open up Kurdish oil exports, a White House official said: "It's not only important for regional security that our Kurdish partners be allowed to export their own oil but also help keep the price of gas low." There has been close military cooperation between authorities in Kurdistan and the United States in the fight against Islamic State. Trump's restoration of the "maximum pressure" campaign on Iran was one of his first acts after returning to office in late January. In addition to efforts to drive Iran's oil exports to zero, Trump ordered the U.S. treasury secretary to ensure that Iran can't use Iraq's financial system. Trump also came into office promising to lower energy costs for Americans. A sharp drop in oil exports from Iran could drive up oil prices, and with it the gasoline price worldwide. The resumption of Kurdish exports would help offset some of the loss to global supply of lower Iranian exports, but would cover only a fraction of the more than 2 million bpd of crude and fuel that Iran ships. However, Iran has proven adept in the past at finding means to circumvent U.S. sanctions on its oil sales. Ole Hansen, head of commodity strategy at Saxo Bank, said the restart of exports from Kurdistan could help increase global oil supplies at a time when output was disrupted from other regions, such as Kazakhstan, where exports have dropped this week following a Ukrainian drone attack on a major pipeline pumping station in southern Russia. "At this point in time, I believe the market has adopted a relatively neutral but nervous stance on crude oil prices," he said. HURDLES TO RESTART The pipeline was halted by Turkey in March 2023 after the International Chamber of Commerce (ICC) ordered Ankara to pay Baghdad $1.5 billion in damages for unauthorized exports between 2014 and 2018. There are still unresolved issues around payment, pricing and maintenance, the sources told Reuters. Two days of talks in the Kurdish city of Erbil this week failed to reach agreement, sources said. The federal government wanted exports to restart without making commitments to the KRG on payments and without clarity on the payment mechanism, a source familiar with the matter said. "We can't do that. We need clear visibility on guarantees," the source said. Oil companies working in Kurdistan also have questions over payments. Executives from Norwegian firm DNO told analysts on Feb. 6 that before agreeing to ship oil through the pipeline to Ceyhan they wanted to understand how the company would be paid for future deliveries and how it would recoup $300 million for the oil it had delivered before the pipeline was shut. Turkey has yet to receive any information from Iraq on the resumption of flows, Turkish Energy Minister Alparslan Bayraktar told Reuters on Wednesday. A restart could also cause issues in OPEC+, or the Organization of the Petroleum Exporting Countries plus Russia and other allies, where Iraq has been under pressure to comply with its pledge to reduce its output. Additional supply from the Kurdish region could put Iraq over its OPEC+ supply target. An Iraqi official said it was possible for Iraq to restart the pipeline and remain compliant with OPEC+ supply policy. Giovanni Staunovo, a commodity analyst at investment bank UBS, said the overall impact of the resumption could be muted. "From an oil market perspective, Iraq is bound to the OPEC+ production deal, so I wouldn't expect additional production from Iraq in case of a pipeline restart, but just a change in the way it is exported (currently, among others, using trucks)," he said.
