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Kenya’s tea and flower exporters say global sanctions to punish Russia for invading Ukraine have halted millions of dollars of Kenyan trade with Russian importers. While they hope for peace, Kenyan traders are looking for alternative buyers. Victoria Amunga reports from Kajiado, Kenya.
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Companies would be required to disclose the greenhouse gas emissions they produce and how climate risk affects their business under new rules proposed Monday by the Securities and Exchange Commission as part of a drive across the government to address climate change. 

Under the proposals adopted on a 3-1 SEC vote, public companies would have to report on their climate risks, including the costs of moving away from fossil fuels, as well as risks related to the physical impact of storms, drought and higher temperatures caused by global warming. They would be required to lay out their transition plans for managing climate risk, how they intend to meet climate goals and progress made, and the impact of severe weather events on their finances. 

The number of investors seeking more information on risk related to global warming has grown dramatically in recent years. Many companies already provide climate-risk information voluntarily. The idea is that, with uniform required information, investors would be able to compare companies within industries and sectors. 

“Companies and investors alike would benefit from the clear rules of the road” in the proposal, SEC Chairman Gary Gensler said. 

The required disclosures would include greenhouse gas emissions produced by companies directly or indirectly — such as from consumption of the company’s products, vehicles used to transport products, employee business travel and energy used to grow raw materials. 

The SEC issued voluntary guidance in 2010, but this is the first-time mandatory disclosure rules were put forward. The rules were opened to a public comment period of around 60 days and they could be modified before any final adoption. 

Climate activists and investor groups have clamored for mandatory disclosure of information that would be uniformly required of all companies. The advocates estimate that excluding companies’ indirect emissions would leave out some 75% of greenhouse gas emissions. 

“Investors can only assess risks if they know they exist,” Mike Litt, consumer campaigns director of the U.S. Public Interest Research Group, said in a prepared statement. “Americans’ retirement accounts and other savings could be endangered if we don’t acknowledge potential liabilities caused by climate change and take them seriously.” 

“Climate risks and harms are growing across our communities with threats to our economy,” said Rep. Kathy Castor, D-Fla., chair of the House Select Committee on the Climate Crisis. “Investors, pension fund managers and the public need better information about the physical and transition-related risks that climate change poses to hard-earned investments,” 

On the other hand, major business interests and Republican officials — reaching down to the state level — began mobilizing against the climate disclosures long before the SEC unveiled the proposed rules Monday, exposing the sharply divided political dynamic of the climate issue. 

Hester Peirce, the sole Republican among the four SEC commissioners, voted against the proposal. “We cannot make such fundamental changes without harming” companies, investors and the SEC, she said. “The results won’t be reliable, let alone comparable.” 

The SEC action is part of a government-wide effort to identify climate risks, with new regulations planned from various agencies touching on the financial industry, housing and agriculture, among other areas. President Joe Biden issued an executive order last May calling for concrete steps to blunt climate risks, while spurring job creation and helping the U.S. reduce greenhouse gas emissions that contribute to climate change. 

Biden has made slowing climate change a top priority and has set a target to cut U.S. greenhouse gas emissions by as much as 52% below 2005 levels by 2030. He also has said he expects to adopt a clean-energy standard that would make electric power carbon-free by 2035, along with the wider goal of net-zero carbon emissions through the economy by 2050. 

“This is a huge step forward to protect our economy and boost transparency for investors and the public,” White House national climate adviser Gina McCarthy tweeted as the SEC acted. 

The premier business lobby, the U.S. Chamber of Commerce, and the American Petroleum Institute, the oil industry’s top trade group, expressed objections in letters to the SEC last year. 

Frank Macchiarola, senior vice president of policy, economics and regulatory affairs at API, said Monday the group is concerned that the SEC’s proposal could require disclosure of information that isn’t significant for investors’ decisions, “and create confusion for investors and capital markets.” 

“As the (SEC) pursues a final rule, we encourage them to collaborate with our industry and build on private-sector efforts that are already underway to improve consistency and comparability of climate-related reporting,” Macchiarola said in a statement. 

The threat that opponents could take the SEC to court over the regulations has loomed. 

Last June, a group of 16 Republican state attorneys general, led by Patrick Morrisey of West Virginia, raised objections in a letter to SEC Chairman Gensler. “Companies are well positioned to decide whether and how to satisfy the market’s evolving demands, for both customers and investors,” they said. “If the (SEC) were to move forward in this area, however, it would be delving into an inherently political morass for which it is ill-suited.” 

Morrisey previously threatened to sue the SEC over expanded disclosures from companies of environmental, social and governance information. 

 
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India is considering establishing a payment mechanism in local currencies to allow it to continue trade with Russia, which has been hit with Western sanctions in response to its invasion of Ukraine.

New Delhi is proceeding with purchases of Russian crude at discounted prices despite pressure from the United States.

The state-run Indian Oil Corp. has concluded a deal to buy 3 million barrels of Russian crude, according to local media reports.

Although it has not officially confirmed the deal, India has defended the country’s decision to look at purchasing Russian oil.

“A number of countries are importing energy from Russia, especially in Europe,” Indian External Affairs Ministry spokesman Arindam Bagchi told reporters earlier this week. He said India, which imports most of its oil, is “always exploring all possibilities in global energy markets.”

While the United States has banned Russian oil imports, several European countries, such as Germany, which are dependent on Russian imports of energy, continue to buy it. India, the world’s third-largest oil importer, imports only about 3% of its crude from Russia, but cheap Russian oil could help cushion its economy from spiraling international crude prices.

India will study the impact of Western sanctions against Russia while devising a payment mechanism to settle its trade with Moscow officials say.

“We will await details to examine the impact on our economic exchanges with Russia,” according to Bagchi.

As sanctions limit Russia’s ability to do business in major currencies such as the dollar or the euro, an Indian business body has asked the government to set up a rupee-ruble mechanism to facilitate trade.

“We have proposed that local currency trading may be explored in the given situation. It is one of the plausible options that are on the table,” according to Ajay Sahai, director general of the Federation of Indian Export Organizations. Indian exporters say payments of about $500 million are stuck because Russian buyers cannot pay in foreign exchange.

Work was ongoing to set up a rupee-ruble trade mechanism to be used to pay for oil and other goods, an Indian official, who refused to be identified, has told Reuters.

The trade in local currencies could take place between Russian banks and companies with accounts in Indian state-run banks.

This is not the first time that such a mechanism is being considered — India and the former Soviet Union had a rupee-ruble exchange plan in place during the Cold War to bypass the U.S. dollar.

India has also used a similar program with Iran, under Western sanctions for its nuclear weapons program.

New Delhi has taken a neutral stance on the Russian invasion, calling for a cease-fire and diplomacy to resolve the crisis, but abstaining from condemning Moscow, with which it has longstanding ties.

It has been under pressure from Washington, which has been urging India to the U.S. and other countries’ tough stand on the invasion.

When asked if the U.S. plans to reach out to India for curbs on oil purchases from Russia, White House press secretary Jen Psaki said Friday that Washington has been in touch with Indian leaders but added that countries have different “economic reasoning,” including some in Europe.

“But what we would project or convey to any leader around the world is that the world — the rest of the world is watching where you’re going to stand as it relates to this conflict, whether its support for Russia in any form as they are illegally invading Ukraine,” she told reporters.

New Delhi however has shown no indication that it will weaken trade or strategic ties to Russia — Moscow supplies India with more than 70% of its weapons, which are critical for New Delhi as it faces Chinese troops all along its Himalayan border. During a visit three months ago by Russian President Vladimir Putin to New Delhi, both countries pledged to increase trade in the defense and energy sectors.

Analysts in New Delhi are optimistic that differences over Russia will not harm ties with Washington, which have grown in recent years as both India and the United States look at how to contain a more assertive China.

“It is not as if U.S. and India are on the same page on every issue,” said Sreeram Chaulia, dean of the Jindal School of International Affairs at O.P. Jindal University. Pointing out that India’s focus is primarily Asia and Indo-Pacific region, he said, “We are really fearful of what China could do along our borders and that remains our primary concern. And New Delhi feels that whether or not we take a joint position on Ukraine with the U.S., the Europeans and others, they will still partner with us to counterbalance China.”

That is why India believes that it can navigate its partnerships with both Russia and the United States for the time being, analysts such as Chaulia say.

However, if the war in Ukraine does not wind down and the crisis drags on, he said “then we will have to readjust our position.”
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Weeks of scarce fuel coupled with a failing national electricity grid are hurting countless small businesses across Nigeria. Some businesses have temporarily shut down, while others reduced hours to cope with the energy shortage.

In January, Toochukwu Ohatu started a tailoring business to supplement her laundry business and make some extra cash.

But barely three weeks after she set up, the business was almost grounded by the electricity issues affecting millions of Nigerians. Without power, there’s no way to run a sewing machine.

“It’s just impossible to work and then as a new mom, everything,” she said. “I mean starting my tailoring business in January was a major leap for me and then we’re struck with the fuel scarcity, no power supply.”

The electricity supply was interrupted some two weeks ago when the national power grid malfunctioned due to glitches in the operating system.

Ohatu said she barely has one hour of electricity a day and it’s affecting her productivity and income.

Authorities blame the fuel scarcity on the recall in January of about 170 million liters of tainted fuel imported from Europe. In February, the government announced it has released one billion liters of fuel from the national reserve to normalize distribution.

But amid a worldwide rise in oil and gas prices, the situation has dragged on and is affecting the overall economy.  This week, Nigeria’s Statistics Bureau said the country’s annual inflation rate has increased to 15.7 percent.

“It’s been a tussle, it’s almost becoming a new normal,” said Abuja resident and driver Mohammed Enesi. “Because we’re so resilient, we feel we can adapt.”

Nigeria is Africa’s biggest oil producer but struggles to meet its energy needs.

Only about 47 percent of Nigerians have access to electricity when it is available, according to World Bank estimates. Nigerian authorities in 2020 signed an electricity deal with German counterparts to improve the supply.

But analysts say the energy shortage is impacting citizens negatively.

“Somehow we’ve not been able to get the dynamics right,” said analyst Rotimi Olawale. “To be very fair and honest in the last couple of years we have not witnessed this fuel scarcity that we’re seeing now. The initial explanation they gave to us I don’t think it holds water anymore. It puts a lot of pressure on people.”

This week, Nigeria’s president, Muhammadu Buhari, promised citizens that the fuel and electricity issues will soon be over.

But until the situation improves, millions of people and businesses will continue to suffer.
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Many western companies and brands have temporarily closed their locations in Russia or stopped selling products there. But officials for the some of the companies say they will continue to support their employees. Karina Bafradzhian has the story, narrated by Anna Rice. VOA footage by Artyom Kohkan.
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One man’s loss may be another’s unfortunate gain, and the Ukraine conflict is proving a boon to some energy-producing nations as oil prices soar.

The war has given an unexpected boost to Norway’s oil revenues and now the country, concerned it will be seen as a war profiteer, is mulling what to do with its sudden windfall.

Fueled by the sanctions imposed on Russia after its invasion of Ukraine, the surge in oil and natural gas prices could see Norway racking up almost $170 billion in extra oil and gas revenue this year, according to Nordea bank.

Western Europe’s biggest oil and gas exporter and one of the richest countries in the world, Norway could pocket nearly $5,680 more than expected every second of the day without lifting a finger.

But the boon is giving it a guilty conscience.

“There are times when it’s not fun to make money, and this is one of them, given the situation,” said Petroleum and Energy Minister Terje Aasland in an interview with television channel TV2.

Most of Norway’s oil revenue ends up in the state’s coffers, through taxes, dividends and direct holdings in oil and gas fields, which it then places in its sovereign wealth fund, already the world’s biggest.

The fund has suffered from the global stock market falls in recent weeks but is still worth around $227,000 for each of Norway’s 5.4 million inhabitants.

“Norway cannot escape the unpleasant fact: This is a form of war profit,” the daily Dagbladet wrote in an editorial.

“While Ukraine is being destroyed, and most other countries are mainly feeling the negative effects of the war, such as higher energy prices, higher food prices and general inflation, we are making a gain,” it said.

“This must be reflected in the way we think about the use of money,” it added.

Multiuse Marshall Plan?

Many want to see a redistribution of all or part of the war gains.

Norway’s Green Party has called for the billions of additional petrodollars to be placed in a solidarity fund to be used as a sort of Marshall Plan for various needs.

It could be used to finance both humanitarian aid and the reconstruction of Ukraine, help Europe reduce its dependence on Russian gas and help the poorest countries counter soaring costs for energy and food, the party suggested.

“The extra oil revenue from the war should go to Ukraine, not us,” it said.

The center-left government has so far pledged up to $227 million in humanitarian aid to Ukraine.

‘Display leadership’

Prime Minister Jonas Gahr Store has insisted that Norway can help most by supplying as much gas as possible to Europe to help reduce its dependency on Russia.

Norway covers between 20% and 25% of the European Union’s and Britain’s needs via a vast network of gas pipelines, compared with between 45% and 50% for Russia.

European Climate Pact ambassador Paal Frisvold meanwhile suggested that Norway should forgo the profits and cap the price of gas sold to European countries, which are just emerging from the pandemic, some with heavy debts.

“Our profits are the invoices of others,” he told AFP.

“The most important thing is to show solidarity, to display leadership at a historic moment. My kids are going to ask me, ‘Dad, what did Norway do during the Ukraine war?’ I don’t want to tell them that we made a killing,” he said.

Norway’s government, which is currently drawing up its spring budget, said there was currently no plan for such a cap.
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Fewer Americans applied for unemployment benefits last week as layoffs continue to fall amid a strong job market rebound.

Jobless claims fell by 15,000 to 214,000 for the week ending March 12, down from the previous week’s 229,000, the Labor Department reported Thursday. First-time applications for jobless aid generally track the pace of layoffs.

The four-week average for claims, which compensates for weekly volatility, fell to 223,000 from the previous week’s 231,750.

In total, 1,419,000 Americans — a 50-year low — were collecting jobless aid the week that ended March 5, down 71,000 from the week before that.

Earlier this month, the government reported that employers added a robust 678,000 jobs in February, the largest monthly total since July. The unemployment rate dropped to 3.8%, from 4% in January, extending a sharp decline in joblessness to its lowest level since before the pandemic erupted two years ago.

U.S. businesses posted a near-record level of open jobs in January — 11.3 million — a trend has helped pad workers’ pay and added to inflationary pressures.

The Federal Reserve launched a high-risk effort Wednesday to tame the worst inflation since the early 1980s, raising its benchmark short-term interest rate and signaling up to six additional rate hikes this year.

The Fed’s quarter-point hike in its key rate, which it had pinned near zero since the pandemic recession struck two years ago, marks the start of its effort to curb the high inflation that followed the recovery from the recession. The rate hikes will eventually mean higher loan rates for many consumers and businesses.

The central bank’s policymakers expect inflation to remain elevated, ending 2022 at 4.3%, according to quarterly projections they released Wednesday.

Last week, the government reported that consumer inflation jumped 7.9% over the past year, the sharpest spike since 1982.

 
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Reports of counterfeit banknotes circulating in Myanmar have skyrocketed in recent weeks amid the junta’s mismanagement of the economy, but experts say the military regime is ill-equipped to address the problem because officials “only know how to give orders” but not implement them.

Since February, a growing number of posts have appeared on social media allegedly documenting fake high-denomination bills involved in public cash transactions, while offers for counterfeit kyats are commonly advertised online or papered on walls at bus terminals in cities and towns across the country.

Earlier this week, Facebook user “Rose Angle” posted a video in which he complained about a growing number of fake kyats and provided a demonstration of how the dye could be washed off one he claimed to have obtained simply by holding it under a running faucet. The post received several responses by users who included photos of what they claimed were counterfeit bills they had received in cash transactions.

RFA’s Myanmar Service spoke with sources in the business and banking communities, as well as other members of the public, who said they had personally dealt with fake currency and described the problem as increasingly severe.

A salesperson based in the seat of Bago region’s Pyay township told RFA that he was recently made to cover his company’s loss after he accepted counterfeit banknotes in one cash transaction.

“We didn’t realize it at first, but when we brought the notes to the bank, they determined that some of them were counterfeits,” he said, speaking on condition of anonymity.

“When such fake notes are discovered, we must pay from our own pockets and it’s not easy to do that when there are two or three 10,000-kyat counterfeit notes. It hurts a lot. Thirty thousand kyats [$17] is a lot for us.”

The salesperson said a similar incident occurred in mid-February and that he had discovered counterfeit currency twice that month. He now regularly examines the watermarks and thickness of all bills during cash transactions but noted that spotting fakes is difficult for average people who lack the tools to detect them.

Soe Tun, a businessman in the commercial capital Yangon, told RFA he had been forced to obtain a counterfeit bill detector because of the increase in fake bills in circulation.

“We have to be very careful these days as counterfeits are now more common than ever before,” he said, suggesting the problem had worsened since the junta seized power in a Feb. 1, 2021, coup, sending the economy into a freefall.

“For money changers, there are machines to detect these counterfeit notes, but they aren’t accessible to ordinary people. Otherwise, your best option is to deal with payments through bank accounts, particularly if there is a large amount of money involved.”

Other sources noted a proliferation of advertisements in recent weeks offering 1 million kyats [$560] worth of counterfeit bills for as little as 100,000 kyats [$56], which they said had exacerbated the problem.

Investigation under way

Aung Kyaw Than, the junta’s director general of the Central Bank’s financial management department, told RFA that efforts are being made to crack down on the sale of counterfeit notes online.

But he said that reports of such services are overblown.

“These are likely rumors, as I haven’t seen such sales being made,” he said, adding that the junta’s Ministry of Home Affairs “is investigating the matter to take proper action.”

Junta Deputy Information Minister Zaw Min Tun outright dismissed concerns over the reports of counterfeiting.

“We have discovered some counterfeit notes, but it wasn’t a lot,” he said, adding that the fakes “were not of high quality.”

“We’re also watching what’s happening on social media and trying to find out the source of the reports. We have found that [offers of counterfeit bills] weren’t being acted on. I just want to say that there’s no need to worry about this problem.”

The junta comments follow media reports citing an official announcement in January which said a police raid on counterfeit bill producers in Karen state’s Myawaddy township had nabbed more than 1,700 fake 10,000-kyat denomination bills along with uncut sheets of paper used to print currency.

Economist Zaw Pe Win said the problem will continue if the junta fails to put systematic controls in place.

“The problem with the military is that it only knows how to give orders, but it offers no systematic or technical policy for how to implement them. The junta just tries to fix problems however it sees fit,” he said.

“If the military doesn’t change that approach, things won’t get any better. Criminals will produce counterfeits, if given a chance, and they will be distributed to the public. Unless the junta can find an effective way to stop this, the situation will become worse.”

Zaw Pe Win said that the junta’s violent repression of anti-coup protests had destroyed investor confidence in Myanmar and the resulting economic turmoil, but ordinary people are the ones suffering the consequences.

He said the military must normalize foreign trade relations and provide stability if it hopes to repair the economy but has so far been unable or unwilling to do so.

Meanwhile, the proliferation of counterfeit notes has only added to the anxiety of a population already grappling with a rapidly depreciating kyat, rising commodity prices, and worsening food shortages in the wake of the coup.
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The U.S. Federal Reserve launched a high-risk effort Wednesday to tame the worst inflation since the early 1980s, raising its benchmark short-term interest rate and signaling up to six additional rate increases this year. 

The Fed’s quarter-point hike in its key rate, which had been pinned near zero since the pandemic recession struck two years ago, marks the start of its effort to curb the high inflation that followed the recovery from the recession. The rate hikes will eventually mean higher loan rates for many consumers and businesses. 

The central bank, in a policy statement, along with quarterly projections and remarks by Chair Jerome Powell at a news conference, pointed to a somewhat more aggressive approach to rate hikes than many analysts had expected. 

The projections showed that seven of the central bank’s 16 policymakers favor at least one half-point rate hike this year, suggesting that such a large increase is possible, said Michael Feroli, an economist at JPMorgan Chase. 

At his news conference, Powell stressed his confidence that the economy is strong enough to withstand higher interest rates. But he also made clear that the Fed is focused on doing whatever it takes to reduce inflation, over time, to its 2% annual target. Otherwise, Powell warned, the economy might not sustain its recovery from the pandemic recession. 

“We’re acutely aware of the need to restore price stability,” the Fed chair said. “In fact, it’s a precondition for achieving the kind of labor market that we want. You can’t have maximum employment for any sustained period without price stability.” 

Quarterly projections  

The Fed also released a set of quarterly economic projections Wednesday that underscored the potential for extended interest rate increases in the months ahead. Seven hikes would raise its short-term rate to between 1.75% and 2% at the end of 2022. Fed officials also forecast four more rate increases in 2023, which would boost its benchmark rate to 2.8%. 

That would be the highest level since March 2008. Borrowing costs for mortgage loans, credit cards and auto loans will likely rise as a result. 

“Clearly, inflation has moved front and center into the Fed’s thinking,” said Tim Duy, chief U.S. economist at SGH Macro Advisors. 

The central bank’s policymakers expect inflation to remain elevated, ending 2022 at 4.3%, according to quarterly projections they released Wednesday. The officials also forecast a much slower economic growth of 2.8% this year, down from a 4% estimate in December. 

But many economists worry that with inflation already so high — it reached 7.9% in February, the worst in four decades — and with Russia’s invasion of Ukraine driving up gas prices, the Fed may have to raise rates even higher than it now expects and potentially cause a recession. 

By its own admission, the central bank underestimated the breadth and persistence of high inflation after the pandemic struck. And many economists say the Fed has made its task riskier by waiting too long to begin raising rates. 

The Fed’s projections show that by the end of next year, the policymakers expect their short-term rate to be above “neutral” — the level at which they think the rate neither fuels nor slows economic growth. 

Roberto Perli, an economist at Piper Sandler, questioned Powell’s assurances that the economy could withstand such higher rates. 

“In the past, whenever the Fed has approached — let alone exceeded — neutral, the economy weakened sharply,” Perli wrote in a note to clients. “The risk of recession in 2023 and beyond is increasing.” 

Powell’s predictions 

Yet Powell downplayed the likelihood of an economic setback. 

“The probability of a recession in the next year is not particularly elevated,” he said. 

At his news conference, Powell said he believed that inflation would slow later this year as supply chain bottlenecks clear and more Americans return to the job market, easing upward pressure on wages. 

He also suggested that over time, the Fed’s higher rates will reduce consumer spending on interest rate-sensitive items such as autos and cars. Americans may also buy less as credit card rates increase. Those trends would eventually reduce businesses’ demand for workers and slow pay raises, which are running at a robust 6% annual rate, and ease inflation pressures. 

Powell noted that there are a near-record number of job openings, leaving 1.7 available jobs, on average, for every unemployed person. As a result, he expressed confidence that the Fed can lower demand for workers and wage growth without increasing unemployment. 

“All signs are that this is a strong economy,” he said, “one that will be able to flourish in the face of less accommodative monetary policy.” 

The Fed’s forecast for numerous additional rate hikes in the coming months initially disrupted a strong rally on Wall Street, weakening stock gains and sending bond yields up. But stock prices more than recovered their gains soon after the press conference began. 

Most economists say that sharply higher rates are long overdue to combat the escalation of inflation across the economy. 

“With the unemployment rate below 4%, inflation nearing 8%, and the war in Ukraine likely to put even more upward pressure on prices, this is what the Fed needs to do to bring inflation under control,” said Mike Fratantoni, chief economist at the Mortgage Bankers Association. 

Powell is steering the Fed into a sharp U-turn. Officials had kept rates ultra-low to support growth and hiring during the recession and its aftermath. As recently as December, Fed officials had expected to raise rates just three times this year. 

One member of the Fed’s rate-setting committee, James Bullard, head of the Federal Reserve Bank of St. Louis, dissented from Wednesday’s decision. Bullard favored a half-point rate hike, a position he has advocated in interviews and speeches. 

The Fed also said it would begin to reduce its nearly $9 trillion balance sheet, which has more than doubled in size during the pandemic, “at a coming meeting.” That step will also have the effect of tightening credit for many consumers and businesses. 

Since its last meeting in January, the challenges and uncertainties for the Fed have escalated. Russia’s invasion has magnified the cost of oil, gas, wheat and other commodities. China has closed ports and factories again to contain a new outbreak of COVID-19, which will worsen supply chain disruptions and likely further fuel price pressures. 

In the meantime, the sharp rise in average gas prices since the invasion, up more than 60 cents to $4.31 a gallon nationally, will send inflation higher while also probably slowing growth — two conflicting trends that are notoriously difficult for the Fed to manage simultaneously. 

 
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India is exploring the possibility of buying oil from Russia amid sanctions imposed by Western countries in the wake of its invasion of Ukraine.

India’s petroleum and natural gas minister, Hardeep Singh Puri, said in parliament Tuesday that the government was having discussions with Russia on crude oil purchases.

“I myself have had a conversation with the appropriate levels of the Russian federation. There are discussions currently underway,” he told lawmakers. Puri said that the government was looking at issues such as availability and payment for the crude.

A report in the Times of India newspaper said that India is close to finalizing a deal to buy 3.5 million barrels of Russian crude at “deep discounts.” It attributed the report to people aware of the development but who requested anonymity to discuss the matter.

India is the world’s third largest importer of oil, depending on crude from overseas for over 80% of its needs.

The bulk of its supplies come from the Middle East and the United States, with Russian crude accounting for only about three per cent of its imports.

But the wild fluctuation in international prices following the outbreak of fighting in Ukraine has raised worries about the impact of a ballooning oil import bill on the nascent economic recovery that the country has posted in the last year.

Analysts say New Delhi’s talks on the purchase of crude from Moscow signal that India will keep the doors to trade with Russia open.

Russia has urged India to increase oil exports and investment. In a statement last Friday, Russian Deputy Prime Minister Alexander Novak said that Russia’s oil and petroleum product exports to India have approached $1 billion and there are “clear opportunities to increase this figure.” He also told Petroleum Minister Puri that Moscow was “interested in further attracting Indian investment to the Russian oil and gas sector and expanding Russian companies’ sales networks in India.”

Asked about the possibility that India could take up the Russian offer of discounted crude oil at her daily press briefing on Tuesday, White House Press Secretary Jen Psaki said, “Our message to any country continues to be that abide by the sanctions that we have put in place and recommended. But I don’t believe this would be violating that (sanctions).”

“But also think about where you want to stand when history books are written in this moment in time. And support for the Russian leadership is support for an invasion that obviously is having a devastating impact,” she added.

While the United States has banned Russian oil imports, the European Union has issued sanctions against some Russian companies without banning the purchase of Russian oil.

Resisting pressure from the United States and other Western allies, India has abstained from voting against Moscow at the United Nations. Analysts cite the country’s huge dependence on Russian weapons for its position.

India has called for an end to violence and a diplomatic solution to the crisis in Ukraine. But New Delhi has found itself in a difficult situation as it tries to balance its longstanding ties with Russia with its growing strategic partnership with Washington, that is seen as critical in countering China.
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Traditional Kashmiri carpet weavers are turning to a 21st century technology already embraced by French winemakers and other international purveyors to boost sales by reassuring buyers that they are buying authentic made-in-Kashmir carpets, not cheap imitations.

The technology, used to authenticate wine from Cabo Verde, watches made in Switzerland, Bashkir honey from Russia and Tushuri Guda cheese from Georgia, combines a digital QR code with geo-locational features to guarantee to buyers that a carpet was actually woven in Kashmir.

Carpets from the region are ranked among the finest in the world because of the fineness of the weaving and the quality of the wool and silk yarn.

Mahmood Ahmad Shah, director of Handloom & Handicrafts in Kashmir, says this is the first time the region’s pashmina or Kashmir silk carpets have received QR code-based geographical indications.

With QR code tagging, Shah expects to attract more clients, benefiting local artisans in Indian-administered Kashmir.

“We are optimistic that it would give boost to the $40 million [export] business and would benefit 54,000 artisans registered with the Department of Handloom & Handicrafts in Kashmir,” he told VOA.

The origin of Kashmir’s hand-knotted carpets, locally called as “Kalbaffi,” dates back to the 15th century. Sultan Zain-ul-Abidinis is believed to have sent Persian and Central Asian carpet weavers to Kashmir to teach the locals.

But Shah said the widespread sale of misbranded Kashmiri carpets has eroded trust among the consumers and led to the marginalization of local weavers such as Nissar Ahmad, a 50-year-old weaver from the outskirts of Srinagar who told VOA he works from 9:30 a.m. until 5 p.m. earning the equivalent of just $4.15.

“I have been into carpet weaving for over 35 years and at this age I can’t shift to any other economic activity to earn my living. With this earning, it is hard to manage daily expenses,” he said.

Shah said the certification will help the industry to regain customer trust, leading to a better life for the artisans.

From Gruyère cheese to Tequila, appellations of origin are jealously guarded by local growers and makers, especially in industries in which the quality of the product is directly linked to the place where it was made or grown. Many agricultural products, for example, are impacted by factors such as the climate and quality of soil.

The Srinagar-based Indian Institute of Carpet Technology (IICT) started labeling the Kashmiri carpets earlier this month, embedding such factors into the QR codes as the identity of the weaver, district, raw material, size, knots per square inch, pile height, quality and whether the weaver is an authorized GI user.

That information is readable on digital devices including smart phones, marking the first time the technology has been used in India. “Every piece of information you could ever want to know about a piece of carpet may be found in its QR code,” said Zubair Ahmad, director of the IICT.

Customers who are unable to scan the barcode can verify the product’s legitimacy by typing an alphanumeric code found on the label into a web browser. Ahmad said the label also bears certain information that can be read with infrared equipment, and which cannot be reproduced or damaged.

In order to participate in the program, artisans and manufacturers needs to register with the Indian federal government’s office of the Controller General of Patents, Designs & Trade Marks. According to the Geographical Indications Registry of India, so far there are 25 authorized users in Kashmir.

Shah said the government will be able to map the movement of each carpet in order to better evaluate the international market.

“When a customer scans the QR-tag through a smart phone fixed on the carpet, the department through block-chain technology will be able to trace the geographic location of the carpet and assess the demand from the various countries and will accordingly formulate market strategy.”

The institute has already received hundreds of carpets for labeling and expects the process to standardize the quality of hand knotted carpets. Shah hopes that will lead to Kashmiri carpets being valued on a par for price and quality with the best Iranian and Turkish hand knotted carpets.

A geographical indication can also highlight a product’s human-made attributes, such as manufacturing skills and traditions. The quality of handicrafts often depends on local natural resources and techniques handed down from one generation to the next.
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A massive container ship, owned by the same company whose vessel last year blocked the Suez Canal, has run aground near the U.S. port of Baltimore, U.S. officials said Monday.

The Ever Forward, a 1,096-foot (334-meter) vessel ran aground in the Chesapeake Bay shortly after leaving a Baltimore port Sunday night, William Doyle, the executive director of the Maryland Port Administration, said in a statement.

“There have been no injuries or spills,” Doyle clarified.

“The ship’s grounding is not preventing other ships from transiting to the Port of Baltimore,” he added, noting that efforts had been underway since Sunday night to free the stranded vessel.

The accident came almost exactly a year after the 200,000-ton container ship MV Ever Given became wedged in the Suez Canal during a sandstorm, blocking the key waterway for six days.

The Suez Canal is a vital artery from Asia to Europe that carries 10% of global maritime trade and provides Egypt with vital revenues.

Both vessels are owned by the Evergreen Marine Corp., which is based out of Taiwan.

The Ever Forward was bound for Norfolk, Virginia, when the accident happened, U.S. media reported. 
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Russian officials have said that they will move to nationalize the assets of Western companies that pull out of their country over its invasion of Ukraine, a decision that will cause significant economic harm to hundreds of businesses while, at least temporarily, preserving the jobs of the tens of thousands of Russians employed by them. 

As of Monday, at least 375 companies had announced some sort of pullback from Russia, according to a list maintained by the School of Management at Yale University. The list includes companies that have cut ties with Russia completely, as well as those that have suspended operations there while attempting to preserve the option to return. 

According to multiple media reports, dozens of Western companies have been contacted by prosecutors in Russia with warnings that their assets, including production facilities, offices, and intellectual property, such as trademarks, may be seized by the government if they withdraw from the country. 

Endorsed by Putin 

Russian President Vladimir Putin last week endorsed the proposed seizure of Western assets, a plan that was originally aired by a senior member of United Russia, the country’s dominant political party. 

United Russia’s proposal went beyond asset seizures, advocating a policy of arresting executives of foreign business who criticize the actions of the Russian government. According to Reuters, another proposal under consideration would target public companies if more than 25% of their shares are held by individuals from “unfriendly states.” A bill put forward by United Russia legislators would allow the government to force such firms into “external administration,” leading to the elimination of existing shareholder rights and the auctioning of new shares recognized by the Russian government. 

On Twitter last week, White House press secretary Jen Psaki warned that Russia could face further sanctions or legal action if it goes forward with the nationalization plan. “Any lawless decision by Russia to seize the assets of these companies will ultimately result in even more economic pain for Russia,” she wrote. 

New sort of expropriation 

There is a long history of governments expropriating the assets of foreign firms, but experts said that what Russia is threatening falls outside the typical pattern. In the past, governments have nationalized foreign businesses in the name of ideology, as Cuba did in the wake of the Communist revolution there, or because they want to capture the revenue going to private enterprise, as with Iran in the nationalization of its oil industry in 1951. 

Elisabeth Braw, a senior fellow at the American Enterprise Institute, told VOA that is not what is happening in Russia. 

“It’s not about Russia saying, ‘Well, we think we can run these companies better on our own,'” she said. “It’s really about punishing those companies, which makes it so different from various revolutionary governments that have seized Western companies’ assets in the past.” 

In other cases of nationalization, Braw said, the government seizing assets typically did so strategically. They chose business sectors, at least in part, based on the assumption that they had, or could quickly develop, the capacity to operate them independently. 

But Russia’s threat of blanket nationalization of foreign companies that leave the country would effectively put the Kremlin into the role of operating everything from McDonald’s fast-food franchises to Gillette razor factories to Mercedes-Benz car manufacturing plants. 

Success unlikely 

Experts said that Russia is likely to have a difficult time finding people with the expertise to run many of the foreign firms that might be subject to nationalization. The management ranks of most non-Russian firms have historically been heavily weighted with expatriates, many of whom have been rushing to get out of the country. 

“Some businesses, some manufacturing operations, might well fit the Russian model,” James O’Rourke, a professor of Management at the University of Notre Dame’s Mendoza College of Business, told VOA. 

Certain kinds of companies, he said, “might be run by an oligarch or a friend of the regime, and it might work out. But I don’t think most of them will.” 

O’Rourke said that even if Russia were able to find the managers needed to keep foreign businesses running, supply chain problems may prove insurmountable. McDonald’s, for example, sources its produce and baked goods from multiple different countries, most of which are actively engaged in the international effort to cut off trade with Russia. Gillette’s manufacturing facilities in Russia use machines made in the U.S. and Germany, which will be unwilling to supply spare parts. 

Political benefits 

The Russian government might be able to score a short-term public relations victory with its own people if it can portray the nationalization of Western businesses as an effort to retain jobs that might otherwise have been lost, said Braw, of the American Enterprise Institute. 

However, she said, unless the Kremlin can find a way to successfully perpetuate the companies’ operations without Western expertise or supplies, the PR benefits of nationalization are likely to be short-lived. 

 
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The United States has banned Russian energy imports and wants Saudi Arabia to increase oil production to mitigate a dramatic spike in gas prices. But just how willing Gulf states are to help bring oil prices down remains to be seen. VOA’s Senior Diplomatic Correspondent Cindy Saine reports.
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A shrinking number of well-known companies are still doing business in Russia, even as hundreds have announced plans to curtail ties. 

Burger King restaurants are open, Eli Lilly is supplying drugs, and PepsiCo is selling milk and baby food, but no more soda. 

The pace of businesses exiting Russia accelerated over the past week as the deadly violence and humanitarian crisis in Ukraine worsened, and as Western governments ratcheted up economic sanctions to punish Russia for its two-week-old invasion. Major oil companies BP and Shell walked away from multibillion-dollar investments. McDonald’s and Starbucks stopped serving customers. 

The companies that still have a presence in Russia say they have franchise owners or employees to consider; they don’t want to punish Russians by taking away food or medicine; or they provide software or financial services for Western businesses that aren’t easy to replace. 

“It’s a business calculation. On the stay side: How much revenue do they earn in Russia? Do they provide an essential service?” said Mary Lovely, a senior fellow at the Peterson Institute for International Economics in Washington. “Each day that passes, though, calculations change. Sanctions against Russia are likely to last a long time, along with rising revulsion.” 

Some companies in lower-profile industries like agriculture have been able to fly under the radar and avoid the type of social media pressure that had been directed at brands such as McDonald’s, Uniqlo and Starbucks, before they decided to cut ties this week, if only temporarily. 

But in this era of hyper-awareness that some customers and even employees have about the positions companies take on social and moral issues, those still doing business with — or in — Russia are putting their reputations on the line. 

Take Japanese clothing chain Uniqlo, which drew negative attention after the CEO of its parent company told the Nikkei newspaper in a story published Tuesday that the reason to keep nearly 50 Russian stores open was that: “clothing is a necessity of life.” By Thursday, Uniqlo said it would close the stores. 

“There’s potentially a big downside of companies to be on the wrong side of this,” Lovely said. 

Many large multinationals didn’t flee Russia at the start of the war. But that changed as the invasion led to increasing violence — and more than 2 million refugees fleeing Ukraine. 

There are now more than 300 companies that have curtailed operations in Russia, according to a list maintained by a team at Yale. Apple stopped shipments. Google paused ad sales. Automakers halted production. Hollywood studios ceased releasing films, and Netflix stopped streaming. 

Some of these decisions were driven by the need to comply with the sanctions Western governments leveled at Russia; others came because of supply chain issues or the fear of a hit to their reputations. Sanctions have already taken a toll on Russia’s economy and global trade. 

Some companies that plan to sever ties with Russia say it isn’t so simple. 

Citigroup said Wednesday that selling its 11 Russian bank branches will be difficult because the country’s economy has been cut off from the global financial system. Until then, Citi said it is “operating the business on a more limited basis” and is helping its U.S. and other corporate clients suspend their businesses in Russia. 

Likewise, Amazon says its biggest cloud-computing customers in Russia are headquartered elsewhere. The company said Tuesday it has stopped accepting new cloud-computing customers in Russia and that it plans to suspend e-commerce shipments to Russia. 

Fast-food companies often have franchising agreements that complicate an exit, because they don’t own those locations. 

That helps explain why Restaurant Brands International, owner of Burger King, is keeping its 800 restaurants open in Russia. And why Yum Brands, parent company of KFC and Pizza Hut, announced the closure of 70 company-owned KFCs across Russia, but not the nearly 1,000 franchisee-owned KFCs, or its 50 Pizza Hut locations. 

This sometimes applies to hotels as well: Marriott says its Russian hotels are owned by third parties, and it’s evaluating their ability to remain open. 

“I think a lot of these companies are expecting a backlash if they’re staying,” said Susanne Wengle, a political science professor and Russia expert at Notre Dame. 

McDonald’s action in Russia was easier: it owns most of the 850 restaurants in Russia it will temporarily close. 

But there are companies that remain in Russia — whether in whole or in part — and say that it’s because they view their products as essential. 

Pharmaceutical company Eli Lilly is one of them. “We continue to distribute medicines in Russia as patients with cancer, diabetes and auto-immune diseases everywhere count on us to support them,” said spokesperson Tarsis Lopez, noting that EU and U.S. sanctions do not apply to medicine. 

PepsiCo said it will stop selling soda but will continue to supply milk, baby formula and baby food in Russia. And Unilever said it will keep selling “everyday essential” Russian-made food and hygiene products to Russians, but that it will stop exporting and advertising these products. 

Tech companies have their own balancing act. Providers of internet-based services like Google, Twitter and Facebook have been mostly reluctant to take actions that could deprive Russian citizens access to information other than what they get from state media. (Russia blocked Facebook and Twitter, however, and then TikTok largely suspended its service in the country.) 

The response from industrial food producers has been complicated by Russia’s role as a major exporter of wheat and other commodities. 

Bunge, which has assets of $121 million in Russia, said Thursday that its Russian oilseed plant will operate and serve the domestic market, but that it has suspended “any new export business.” Farm equipment maker John Deere said it has stopped machine shipments to Russia; it is monitoring a Russian plant that makes seeding equipment and its dealer network in the country “day-by-day.” Cargill and ADM, other agriculture companies, have not responded to questions. 

These companies don’t want the Russian government to seize their assets should they close up shop, said Vincent Smith, an economics professor at Montana State University. 

Other companies point to their employees’ livelihoods in rationalizing decisions to stay, or not completely sever ties. 

Starbucks initially expressed concern for its 2,000 Russian employees before reversing course Tuesday. The Kuwaiti company that franchises its 130 Russian stores is closing them but continuing to pay employees. 

British American Tobacco on Wednesday said it would keep making and selling cigarettes in Russia, where it has 2,500 employees, citing a “duty of care” for employees. 

 
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Sudan’s military rulers this week announced an emergency committee to address the country’s collapsing economy and pointed to its gold mining as a possible boost. Sudan’s ambassador to Russia has denied reports that Moscow has been smuggling gold from Sudan in preparation for sanctions over its invasion of Ukraine. But Sudanese analysts say gold smuggling is rampant, including to Russia.

State media on Thursday said the ruling Sovereign Council’s second in command, General Mohamed Hamdan Dagalo, known as Hemeti, met with gold miners who vowed to supply the central bank with gold.

The report came after Hemeti gave a rare press statement this week on efforts to prevent the country’s economic collapse.

Sudan’s exports dropped 85% in January and prices for everything are quickly rising — one of the main sparks for the 2019 uprising that led the military to oust former president Omar al-Bashir.

In remarks to media Monday, Hemeti announced an economic emergency committee to address the issues. Among other measures, he pointed to Sudan’s gold mining, which amounts to at least 50 tons per year, as a potential solution.

Hemeti says one of the most important resources that can help boost Sudan’s economy is the gold. He says security forces have arrested a lot of people smuggling gold, 40 buyers in all. He says the buyers are not the problem and asks, from whom are they buying this gold? That’s the question, he says, adding, “We will find out.”

Hemeti gave no details on the nationalities of those arrested, the timing, or who was suspected of buying how much smuggled gold.

His comments came just days after a report in the British Telegraph newspaper said Russia prepared for sanctions over its Ukraine invasion by buying smuggled Sudanese gold.

Hemeti didn’t comment on the allegation in his remarks.

Late last month, Hemeti began a week-long visit to Moscow as much of the world was criticizing Russia for preparing to invade its neighbor.

The Kremlin’s invasion began as Hemeti met with Russian officials to discuss expanding and strengthening cooperation with Sudan.

After the general’s trip to Moscow, he reaffirmed a Bashir-era deal for Russia to open a navy base in Port Sudan, which for Russia to open a navy base in Port Sudan, which — if carried out — would be Russia’s first in Africa.

Sudan’s Foreign Ministry spokesman refused to comment on the allegations of Russian gold smuggling.

But in a written response to VOA through a messaging application, Sudan’s acting ambassador to Russia Onor Ahmed Onor dismissed the claims.

“I have nothing to say other than it is fake news and a story created from the imagination of the Telegraph reporter,” read the text.

Hemeti commands the Rapid Support Forces (RSF), which grew out of the Janjaweed militias that human rights groups say committed crimes against humanity in Sudan’s Darfur region.

Analysts say the RSF is itself involved in gold smuggling.

Salah AlDoma is dean of political science at Khartoum’s Omdurman Islamic University.

“Russia surely obtained gold from several sources, not only Sudan,” he said. “But, yes, Sudan is one of the countries that the Russian companies managed to benefit from with secret agreements with the RSF and other entities like the former ruling National Congress Party. Russia, like many countries, benefited from smuggling Sudanese gold.”

The RSF office refused to take a call from VOA seeking comment on the allegations.

A spokesman at Sudan’s Ministry of Minerals confirmed to VOA that two Russian gold mining companies are operating in the country — Elianze and Meroe Gold, a subsidiary of M-Invest.

But the ministry’s spokesman would not comment on allegations of gold smuggling.

A 2019 report by CNN says M-Invest, a Russian company linked to the Kremlin and Russian mercenaries, was heavily involved in smuggling gold out of Sudan.

CNN reported in 2019 that M-Invest, a mining company the U.S. says is owned by Russian President Vladimir Putin’s ally, Yevgeny Prigozhin, also advised Sudanese authorities how to quash public protests.

Authorities say Prigozhin is behind the Wagner Group of Russian mercenaries that U.N. experts have accused of human rights abuses from Syria to Libya to the Central African Republic.

While it’s not clear to what extent the Russian companies are still involved in Sudan’s gold mining, analysts say most of it has been off the books.

Sanhori Eissa, the former head of economics at Sudan’s largest newspaper Al-Rayaam, says exporting Sudan’s gold to Russia remains a smuggling operation, as is the case with nine other neighboring countries of Sudan.

“The export is probably done through the United Arab Emirates [UAE], through Khartoum international airport. The only outlet is the UAE, where Sudan’s [smuggled] gold gets refined and stamped as an emirate product then [re-]exported,” he said.

It was not possible to independently verify Eissa’s claims.

Sudan was headed for international relief from lenders but was cut off from foreign assistance after an October military coup overthrew the transitional government formed after Bashir’s ouster.

Since the coup, ongoing street protests against military rule have left at least 85 people dead.

Some information in this report came from Reuters.
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Propelled by surging costs for gas, food and housing, consumer inflation in the U.S. jumped 7.9% over the past year, the sharpest spike since 1982 and likely only a harbinger of even higher prices to come.

The increase reported Thursday by the Labor Department reflected the 12 months ending in February and didn’t include most of the oil and gas price increases that followed Russia’s invasion of Ukraine on Feb. 24. Since then, average gas prices nationally have jumped about 62 cents a gallon to $4.32, according to AAA.

Even before the war further accelerated price increases, robust consumer spending, solid pay raises and persistent supply shortages had sent U.S. consumer inflation to its highest level in four decades. What’s more, housing costs, which make up about a third of the government’s consumer price index, have risen sharply, a trend that’s unlikely to reverse anytime soon.

The government’s report Thursday also showed that inflation rose 0.8% from January to February, up from the 0.6% increase from December to January.

For most Americans, inflation is running far ahead of the pay raises that many have received in the past year, making it harder for them to afford necessities like food, gas and rent. As a consequence, inflation has become the top political threat to President Joe Biden and congressional Democrats as the midterm elections draw closer. Small business people say in surveys that it’s their primary economic concern, too.

Seeking to stem the inflation surge, the Federal Reserve is set to raise interest rates several times this year beginning with a modest hike next week. The Fed faces a delicate challenge, though: If it tightens credit too aggressively this year, it risks undercutting the economy and possibly triggering a recession.

Energy prices, which soared after Russia’s invasion of Ukraine, jumped again this week after Biden said the United States would bar oil imports from Russia. Oil prices did retreat Wednesday on reports that the United Arab Emirates will urge fellow OPEC members to boost production. U.S. oil was down 12% to $108.70 a barrel, though still up sharply from about $90 before Russia’s invasion.

Yet energy markets have been so volatile that it’s impossible to know if the decline will stick. If Europe were to join the U.S. and the United Kingdom and bar Russian oil imports, analysts estimate that prices could soar as high as $160 a barrel.

The economic consequences of Russia’s war against Ukraine have upended a broad assumption among many economists and at the Fed: That inflation would begin to ease this spring because prices rose so much in March and April of 2021 that comparisons to a year ago would show declines.

Should gas prices remain near their current levels, Eric Winograd, senior economist at asset manager AllianceBernstein, estimates that inflation could reach as high as 9% in March or April.

The cost of wheat, corn, cooking oils and such metals as aluminum and nickel have also soared since the invasion. Ukraine and Russia are leading exporters of those commodities.

Even before Russia’s invasion, inflation was not only rising sharply but also broadening into additional sectors of the economy. Many prices have jumped over the past year because heavy demand has run into short supplies of items like autos, building materials and household goods.

But even for some services unaffected by the pandemic, like rents, costs are also surging at their fastest pace in decades. Steady job growth and high home prices are encouraging more people to move into apartments, elevating rental costs by the most in two decades. Apartment vacancy rates have reached their lowest level since 1984.

In the final three months of last year, wages and salaries jumped 4.5%, the sharpest such increase in at least 20 years. Those pay raises have, in turn, led many companies to raise prices to offset their higher labor costs.

Soaring energy costs pose a particularly difficult challenge for the Fed. Higher gas prices tend to both accelerate inflation and weaken economic growth. That’s because as their paychecks are eroded at the gas pump, consumers typically spend less in other ways.

That pattern is akin to the “stagflation” dynamic that made the economy of the 1970s miserable for many Americans. Most economists, though, say they think the U.S. economy is growing strongly enough that another recession is unlikely, even with higher inflation.
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