TRADE NEWS

Russia & China Ditch Western Currencies

The trade between Russia and China has significantly shifted away from Western currencies, with Russian First Deputy Prime Minister Andrey Belousov revealing that 95% of transactions are now conducted using rubles and yuan. This change is a direct consequence of Western sanctions on Moscow, prompting the two nations to rely more on their own currencies for trade.

Belousov highlighted this trend during a Russia-China intergovernmental commission meeting in Beijing, where he also projected that bilateral trade would surpass $200 billion this year, potentially reaching $300 billion by 2030. China remains a key trade partner for Russia, and the collaboration is expanding across various sectors, including automotive, mining, agriculture, logistics, and IT.

This shift has opened significant opportunities for Chinese companies in the Russian market, particularly as Western companies withdraw. Chinese firms are increasingly filling these gaps, especially in sectors like oil and gas, petrochemicals, car manufacturing, consumer goods, glass products, and construction materials.

The trade balance showcases Russia's export of energy products, agri-food, and industrial goods to China, while China exports a diverse range of goods to Russia, including food, electronics, engineering products, furniture, toys, textiles, clothing, and footwear. This evolving trade dynamic illustrates the growing economic interdependence between Russia and China in the current global landscape.

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VIDEO OF THE WEEK

Yemen's Houthis Share Footage of Militants 'Hijacking' Galaxy Leader Ship With Helicopter

Yemen's Houthis rebels have shared dramatic footage of what they claim is the moment they hijacked the Galaxy Leader ship. The Houthis' said on Sunday that they had seized an Israeli ship in the southern Red Sea and taken it to a Yemeni port. "We are treating the ship's crew in accordance with Islamic principles and values," a spokesperson of the group's military said in a statement. See full story below

GLOBAL TRADE SNIPPETS

EU nations reach major breakthrough to stop exporting plastic waste to poor countries. Under a tentative agreement, the 27 EU countries will no longer be able to export their plastic waste outside the Organization for Economic Cooperation and Development club of wealthy countries. The text now needs to be formally approved by both the council representing the EU member states and the EU Parliament to enter into force.

West Coast Ports See Rebound in Container Volumes. The Port of Long Beach notched a 14.7% year-over-year increase, moving 755,150 20-foot-equivalent containers compared with 658,428. The adjacent Port of Los Angeles reported a 7% increase to 725,774 TEUs compared with 678,429 a year ago

Russia set for $75 billion surplus. Russia’s current account surplus has increased sharply, propping up the national currency as energy exports recovered despite pressure from Western sanctions, the country’s central bank reported on Tuesday

France is in no way being driven out of Africa" says Foreign trade Minister. Nigeria is "France's leading trading partner in sub-Saharan Africa" and "around 100 French companies" are present there, according to the Ministry

SHIPPING NEWS

NYK Line Cargo Ship Hijacked

In a significant maritime incident, Yemen's Houthi rebels captured a cargo ship linked to Israel in the Red Sea, escalating regional tensions. The ship, seized on a key shipping route, carried 25 crew members from various countries, including the Philippines, Bulgaria, Romania, Ukraine, and Mexico. The Houthis, backed by Iran, claimed the hijacking was a response to Israel's actions against Hamas in Gaza and threatened further attacks on Israeli-affiliated vessels.

Israeli Prime Minister Benjamin Netanyahu condemned the seizure, labeling it an Iranian act of terror, while the Israeli military emphasized its global implications. The ship, the Bahamas-flagged Galaxy Leader, reportedly affiliated with Israeli billionaire Abraham "Rami" Ungar, was British-owned and Japanese-operated. It had no cargo during the hijacking, according to its operator, NYK Line.

Japan, involved due to the Japanese operation of the ship, strongly condemned the hijacking. Japanese officials engaged in negotiations with the Houthis for the crew's release, collaborating with Israel, Saudi Arabia, Oman, and Iran. The Houthis assured that the crew was being treated in accordance with Islamic values, though details were unspecified.

The incident's complexity is underscored by the international nature of shipping, often involving diverse management companies and national flags. The U.S. confirmed the Houthis' attack, carried out by rappelling from a helicopter. This act resembled previous Iranian strategies, as Iran has been known to arm the Houthis.

Recent U.S. military interventions in the region included intercepting missiles and drones from Yemen, believed to be threats to Israel or American vessels. The Galaxy Leader, en route from Turkey to India, had turned off its Automatic Identification System, a safety measure usually kept active.

The incident occurred against the backdrop of heightened Israel-Hamas tensions and ongoing conflicts in the region, raising concerns about the potential for a broader regional escalation.

SHIPWRECK OF THE WEEK ⚓️☠️ 

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