Business

The United States has Barred Russia’s Central Bank from doing Dollar Transactions

Published

3 years ago

March 1, 2022

By Derrick Bangura

The impact of Russia’s ongoing war with Ukraine on the Russian economy is growing by the day, as the country becomes increasingly isolated. As part of its response to Russia’s invasion of Ukraine, the US said on Monday that it would prohibit American currency transactions with the Russian central bank and entirely block the Russian direct investment fund.

According to top US administration sources, the aggressive action was directed at some of Russia’s most powerful tools of reducing the impact of sanctions.
In addition, the US Embassy in Russia warned US nationals to consider leaving “immediately” due to the rising number of airlines that are cancelling flights in and out of the country and closing their airspace to Russian airlines.

That was as indications emerged on Monday that the federal government might have secured 479 Nigerians in the effort to take citizens out of Ukraine amid the Russian attack.

The steps by the US to cut dollar supply to Russia were meant to prevent Russia from accessing a “rainy day fund” that officials said Moscow had been expecting to rely upon during the invasion of Ukraine.

Against plans to use the reserves to buffer a plummeting ruble, Russia would no longer be able to access the funds it keeps in US dollars, according to CNN.

The sweeping new sanctions – taken with Germany, France, the UK, Italy, Canada, the European Union and others – came as Russia’s economy is already in free-fall.

“No country is sanction proof,” a White House official said. “Putin’s war chest of $630 billion in reserves only matters if you can use it to defend his currency, specifically by selling those reserves in exchange for buying the ruble. After today’s actions that will no longer be possible, and fortress Russia will be exposed as a myth.”

In a phone call with reporters Monday morning, a senior US administration official said the move was “the culmination of months of planning and preparation across our respective governments across technical, diplomatic and political channels, including at the highest levels.”

CNN quoted the official as saying, “We were ready and that’s what allowed us to act within days, not weeks or months, of Putin’s escalation.

“Our strategy, to put it simply, is to make sure that the Russian economy goes backward as long as President Putin decides to go forward with his invasion of Ukraine.”

In a bid to mitigate the impact of the sanctions on US and European energy consumers, the Treasury Department would exempt most energy-related transactions from the sanctions, a significant carve-out in the sanctions.

One official called the on-going sanctions a “vicious feedback loop that’s triggered by Putin’s own choices and accelerated by his own aggression.”

The sanctions also fully block the Russian Direct Investment Fund and its CEO, Kirill Dmitriev.

Another official said they were “symbols of deep seated Russian corruption and influence peddling globally.

“Today’s actions represent the most significant actions the US Treasury has taken against an economy of this size and assets of this size.

“What also makes this asset significant is not just the amount of assets or the size of the country we’re targeting, but the speed at which our partners and allies have worked with us to enact this response.”

Asked about potential additional sanctions on Belarus, which appears poised to elevate its role in Russia’s invasion of Ukraine, an official said the US was watching events “very carefully” and that sanctions on Belarus would “continue to ratchet much higher.”

Battles continued Monday near several key Ukrainian cities as Russia presses further into the country.

Russian forces are facing “stiff resistance” with slowing momentum in northern Ukraine, a US defense official said, while invading troops are having a “little bit more success” in the south.

Russian forces have “slowed their offensive” but are “still trying” to take Ukrainian ground around the country, according to the Ukrainian military.

Talks between Russian and Ukrainian delegations also got underway Monday in Belarus. In the lead-up to the meeting, Ukraine demanded an “immediate ceasefire and withdrawal of Russian troops.”

More than 500,000 refugees have fled Ukraine to neighbouring countries after the beginning of the invasion, the United Nations Refugee Agency said Monday.

Ukrainian President Volodymyr Zelensky asked European countries to do more to support his nation on Monday asked the European Union to “urgently admit Ukraine” to the bloc.

A new CNN poll showed Americans overwhelmingly support increased economic sanctions against Russia and broadly support further action to stop Russia’s invasion of Ukraine, but most oppose direct US military action.

Eighty-three percept of Americans said they favoured increased economic sanctions against Russia in response to the invasion, with just 17 per cent opposed.

The US Embassy in Russia warned US nationals that they should consider leaving “immediately” due to the rising number of airlines cancelling flights in and out of the country and countries closing their airspace to Russian airlines.

The embassy said in an advisory, “An increasing number of airlines are cancelling flights into and out of Russia, and numerous countries have closed their airspace to Russian airlines. US citizens should consider departing Russia immediately via commercial options still available.

“The US Embassy reminds US citizens that the Department of State’s Travel Advisory level for Russia is at ‘Level 4: Do Not Travel.’”

Nigeria and South Africa expressed alarm at reports that their nationals were being stopped from leaving war-torn Ukraine. At Lviv train station, in western Ukraine, FRANCE 24 met several African students who said they were pushed back at the Medyka border crossing with Poland.

However, African governments yesterday scrambled to help their nationals escape the Russian invasion in Ukraine, as reports emerged of racist and unfair treatment of their citizens at the border with Poland. The reports, denied by both Polish and Ukrainian officials, cast a pall on the massive evacuation effort that had already seen half a million civilians cross into the European Union.

While some Africans had been able to leave Ukraine, FRANCE 24 spoke to several students at Lviv train station in western Ukraine who said they were turned back by Ukrainian border guards while attempting to cross into Poland.

“They stopped us at the border and told us that Blacks were not allowed. But we could see White people going through,” said Moustapha Bagui Sylla, a student from Guinea. He said he fled his university residence in Kharkiv, Ukraine’s second-largest city, as soon as the bombing began.

Like thousands of Ukrainian civilians scrambling for the border, the young Guinean said he walked for hours in freezing temperatures heading for the Polish frontier village of Medyka – only to be ordered to turn back.

Moustapha Bagui Sylla had been studying medicine in Ukraine’s Kharkiv for the past year.

Another student from Nigeria described similar scenes at the border crossing. He said his group, which included women, was shut out of the border post even as White people were let through.

“They won’t let Africans in. Blacks without European passports cannot cross the border. They’re pushing us back just because we’re Black!” said the Nigerian student, who gave only his first name, Michael. “We’re all human,” he added. “They should not discriminate against us because of the colour of our skin.”

Jean Ngando, a French teacher from Cameroon, said he was looking for alternative routes to avoid being pushed back at the Polish border, France 24 reported.

According to Bagui Sylla, the Ukrainian border guards said they were merely following instructions from their Polish counterparts – a claim denied by officials in Warsaw.

Anna Michalska, a spokesperson for the Polish border guards, said she had spent “the past two days denying such allegations”.

She told FRANCE 24, “I don’t know what is happening on the Ukrainian side of the border, but we let everyone in regardless of nationality.”
Later, Polish officials reaffirmed that no visas were required to cross the border and that identity cards and passports, even if expired, would be allowed.

Natacha Daniels, a Nigerian student, expressed concern that she would be denied exit from Ukraine since her passport was in the hands of officials in Kharkiv, where she studies economics.

Related Topics:Accessmagazine Accessnews AccessNewsMagazine business foreign news NewsUpdate security US

Up Next

In Bayelsa, Women are Protesting the Invasion and Destruction of Farmlands by Herders

Don't Miss

Israeli Citizen Killed Trying to Flee Ukraine

AccessNewsNG

Click to comment

Business

Businesses count losses amid power outage in Bauchi, Gombe, and Jigawa

Published

2 months ago

October 28, 2024

Matthew Eloyi

Business owners in Bauchi, Gombe and Jigawa are recording losses due to week-long blackout ocassioned by vandalism of the power transmission line in parts of northern Nigeria.

The sudden disruption in electricity supply in the past days, also affected essential services such as water, sanitation, street lighting and healthcare delivery as most hospitals have been operating without light.

Some of the affected businesses including shop keepers, millers and artisans, who spoke while reacting to a survey by the News Agency of Nigeria (NAN), described the situation as “pathetic”.

The survey examined the perennial collapse of national grid and the need for alternative power supply in the country.

Rice millers in Gombe had decried the impact of the erratic power supply on their businesses.

A Miller, Musa Arab, at Nassarawo Industrial Layout in Gombe, said the trend was crippling their operations as they relied on electricity supply from the grid to process paddy.

He said the mills were not operational power outage as they could not afford exorbitant pump prices of petrol or diesel to run their machines.

This, he said, reduced the volume of rice supply to the market and posed serious challenge to food security.

“We must invest in power because it is the biggest determining factor for industries to thrive.

“I have over 20 workers in my mill, and we have 100 mini rice mills here, so you can imagine those who have no jobs for the past 10 days.

“Government must go tough on those responsible for the perennial grid collapse because some persons may be benefitting from it,” he said.

Also, Yusuf Ibrahim said the situation might trigger the already fragile inflation, as prices of local varieties would shot up ocassioned by the diminish supply.

He said that some had jerked up their charges to cover the expenses on diesel thereby affecting rice prices.

A check by NAN at the Gombe Main market showed that a 100 kilogramme of rice was sold for between N120,000 and N160,000, as against N110,000 and N150,000, before the blackout.

Mr Usman Sani, a rice dealer, attributed the hike in price to low supply of the produce to the market in spite of the number harvest recorded this cropping season.

He said the prices had decreased slightly at the onset of the harvest, however, it showed sprawling increase due to power outage.

“The price of rice is already dropping as a result of harvest but the trend reverse since the blackout in the past days “ he said.

Ugochukwu Daniel, a bartender in Bauchi, decried the epileptic power supply in the country, adding that lack of durable energy supply would retard Nigeria’s quest to attain social and economic greatness.

Daniel said that she spent much on fuel to run power generator for refrigrator and lightening the beer parlour, to enable her to keep the business running.

He said that businesses could only thrive in an enabling environment with stable electricity supply, to enhance wealth creation and reduce poverty among Nigerians.

“My trade is about chill drinks and it survives on electricity to operate otherwise you will out of bussiness.

“Without electricity there is nothing you can do, and not only business but about everything. We depend on it,” he said.

Similarly, Samuel Adamu, said the persistent power outage had forced him to patronised charcoal for ironing clothes in spite of its high cost and cumbersome processes.

He said that most cleaners in the area had resorted to fabricated iron charcoal in spite of hike in its prices which suddenly jumped from N5,000 to N15,000.

Adamu said the situation also encouraged division of labour in laundry to cut cost and make some gains.

“Presently, I do wash the cloth, and engage someone for ironing. The charge is N300 per set as against N150”.

While advocated development of renewable energies to enhance power supply in the country, Adamu urged security agencies to entensify efforts towards electrical installations in the country.

In the same vein; Mr Muhammad Adamu, Chairman, Jigawa State House Assembly Commitee on Power and Energy, said the Jigawa Electricity Law 2024, made sound provisions to improve power generation and distribution in the state.

This, he said, was an offshoot of the devaluation brought about by the 5th alteration of the constitution, where removed power from the executive legislative list and to the concurrent list.

“It empowered the state houses of assembly to enact laws on power.

“The committee has also carefully pursued the bill and reviewed its structure and the promise it holds for the state power sector, infrastructure and the overall economy of the state.

“The new law will pave way for the establishment of Jigawa Electricity Commission, to regulate the state’s electricity market,” he said.

According to Adamu, the law will protect residents and investors in the energy sector through ensuring prepaid meter installation and possibility of recouping investor’s funds as well as address vandalism.

“The law will lead to provision of reliable, affordable and sustainable power, essential for development of all sectors of the economy, particularly in rural areas,” Adamu said.

“Vandalism will be over because we pay Kano Electricity Distribution Company (KEDCO) money for powered supplies, but whenever there is problem of damages or broken down transformers, it is either the communities or individuals that pay for the repairs”.

Business

Mercedes urges delay of EU tariffs on Chinese electric vehicles

Published

2 months ago

October 21, 2024

Matthew Eloyi

Mercedes urges delay of EU tariffs on Chinese electric vehicles

The head of German luxury carmaker Mercedes-Benz, has called for the European Union to de-escalate the dispute with China over tariffs on electric cars.

“We need more free trade instead of new trade barriers.

“That is why it is important to find a solution that suits both the EU and China,” chief executive Ola Källenius told the Monday edition of Bild newspaper.

“The negotiations for this take time. In order not to jeopardise them, the EU should postpone the enforcement of the planned tariffs,’’ he said.

At the start of the month, a majority of EU countries paved the way for additional tariffs of up to 35.3 per cent on battery-powered electric vehicles imported from China.

Germany, however, voted against the measure amid concerns over retaliatory actions which could hurt the country’s giant car industry.

The European Commission had pressed for extra tariffs after an investigation accused Beijing of subsidising domestic electric car manufacturers, and thus distorting the market in the EU.

But whether the import tariffs would actually come into force at the beginning of November is still up to the commission.

The plans can still be dismissed if Brussels reaches a solution with China at the negotiating table.

Business

ACCI moves to promote business connections, balance work-life

Published

2 months ago

October 16, 2024

Matthew Eloyi

ACCI moves to promote business connections, balance work-life

The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.

The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.

Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.

He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.

“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.

“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.

“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.

“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.

According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.

“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.

“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.

“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.

“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.

The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.

Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.

He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.