2025-06-03 14:02
MOSCOW, June 3 (Reuters) - Russia's economy minister Maxim Reshetnikov said on Tuesday that the central bank should ease monetary policy in a timely manner in order to achieve growth of 3%, a target set by President Vladimir Putin. Reshetnikov's comments came before the central bank reviews its key interest rate on June 6. A Reuters poll of 26 economists has predicted that the regulator will keep the key rate on hold at 21%. Sign up here. Economists expect Russian economic growth to slow to 1.5% in 2025 from 4.3% last year. The government forecasts 2.5% GDP growth this year. "The current task is to navigate the cooling-off period. We are counting on a timely easing of monetary policy to maintain the targeted 3% growth rate outlined by the president in the future," Reshetnikov said. The minister said that output was falling in an increasing number of real economy sectors while a slowdown in lending was hitting demand for engineering products, special equipment, freight transport, light commercial vehicles and buses. The central bank is under pressure from businesses to start cutting the key rate. However Governor Elvira Nabiullina has resisted the pressure, arguing that the bank needs to see a sustainable disinflationary trend before it can begin to ease rates. https://www.reuters.com/business/finance/russias-economy-minister-calls-timely-rate-cut-boost-growth-2025-06-03/
2025-06-03 12:48
June 3 (Reuters) - Brazil's government will unveil a new set of fiscal measures next week aimed at balancing public accounts, with their approval seen as crucial to revisiting a controversial IOF tax hike, said Finance Minister Fernando Haddad on Tuesday. Speaking to reporters after a lunch with President Luiz Inacio Lula da Silva, the heads of the lower house and Senate, and several cabinet ministers, Haddad said the government is holding off on disclosing the details to first align with congressional leaders, with a meeting expected on Sunday. Sign up here. Earlier, the minister had indicated that the measures could be unveiled after the meeting. "The idea is to submit the measures starting next week," he said. "We are being very careful because we depend on the votes of Congress." Negotiations follow intense backlash over a government decree that raised the financial transactions tax (IOF) on a range of credit, foreign exchange and private pension operations to increase public revenue, prompting lawmakers to mobilize to overturn it. Haddad, who earlier in the day said the episode had yielded the "best possible outcome" by bringing together the executive and legislative branches to pursue more structural solutions for fiscal balance, emphasized after the lunch he needed the approval of at least part of the new package to reassess the IOF hike. "The agreement is to present the measures and, if their legitimacy is recognized... I will have room to calibrate (the IOF)," he said. Haddad had previously indicated that the package was superior to the one presented at the end of last year, when the government projected 70 billion reais ($12.39 billion) in spending restraints through 2026. The minister also said the changes would likely involve submitting a constitutional amendment proposal, along with a bill and an executive order to Congress. On Monday, he emphasized that any changes to the IOF tax would be tied to broader corrections of what he described as distortions in financial taxation. Lula's government has said it aims to rebalance the federal budget by eliminating tax distortions and what it sees as unjustified tax benefits, rather than cutting spending, which has risen since he took office. However, several measures to curb tax incentives have been significantly watered down or ignored by Congress. ($1 = 5.6509 reais) https://www.reuters.com/world/americas/brazil-present-fresh-fiscal-package-bid-balance-public-accounts-2025-06-03/
2025-06-03 12:47
BP-led Shah Deniz field to invest $2.9 billion to expand output Aims to boost production by 50 bcm of gas over life of project BP says it completed acquisition of two Caspian offshore blocks BAKU, June 3 (Reuters) - The owners of the Shah Deniz gas field in the Azeri Caspian Sea led by BP (BP.L) , opens new tab made a final decision to invest $2.9 billion in expanding output from the project, BP said on Tuesday. As part of its strategic shift away from renewable energy, the British oil major seeks to boost production of oil and gas, including in Azerbaijan, which has positioned itself as a reliable supplier to Europe that is seeking to cut its reliance on Russian energy. Sign up here. Last year, Shah Deniz produced 28 billion standard cubic metres of gas and more than 4 million tonnes, around 35 million barrels, of condensate, said BP, which owns around 29.9% of the project and operates it. The other owners of the field include Russia's LUKOIL, Turkey's TPAO, Azerbaijan's SGC, NICO and Hungary's MVM. The Shah Deniz expansion project is designed to tap low-pressure gas in the field and increase output by 50 billion cubic metres (bcm) of gas and about 25 million barrels of additional condensate over the life of the project. After an ill-fated foray into renewables launched in 2020, BP has cut its spending, shifting investments from low-carbon projects back into oil and gas, and vowed to slash its debt pile through to 2027. "These projects are fully accommodated within BP's financial frame. Shah Deniz Compression is one of the 8-10 major projects expected to start up between 2028 and 2030," BP said. "It is expected to contribute to growing BP's global upstream production to 2.3-2.5 million barrels of oil equivalent per day by 2030, with capacity to increase further to 2035." BP said separately on Tuesday that it had completed the acquisition of stakes in two offshore exploration and development blocks in the Azerbaijani part of the Caspian Sea. The agreements to finalise the deal were signed by BP and Azeri state energy company SOCAR, BP said in a statement. There was no immediate indication as to possible production volumes. Azerbaijan's production mainly relies on mature oilfields in the Caspian Sea and the country is aiming to maintain its oil output at around 582,000 barrels per day over the next five years with investment from Western energy companies. Azerbaijan plans to increase natural gas exports by 8 billion cubic metres by 2030, President Ilham Aliyev said on Monday. Azerbaijan exported 25 bcm of natural gas in 2024. Exxon Mobil (XOM.N) , opens new tab and Azeri state energy company SOCAR said on Monday they signed a deal agreeing to explore onshore oil and gas production in Azerbaijan. https://www.reuters.com/business/energy/bp-says-it-acquires-two-exploration-development-blocks-caspian-sea-2025-06-03/
2025-06-03 12:44
DAKAR, June 3 (Reuters) - Mali has suspended artisanal gold mining activities during the June to September rainy season to protect workers from landslides, the West African country's mines ministry said on Tuesday. A spokesperson for the ministry told Reuters that meteorological services have forecast heavy rains from June 15 to September 30. Sign up here. "The reason for this (suspension) is quite simply safety," the spokesperson said in a text message to Reuters. In March, the government of Africa's second-largest gold producer suspended the granting of new artisanal mining permits to foreigners after a couple of accidents left dozens dead. Artisanal mining is a common activity across much of West Africa, and has increased in recent years due to growing demand for the precious metal and rising prices. Deadly accidents are frequent as artisanal miners often use old-fashion and unregulated methods of digging. Mali's gold production plunged 23% to around 57 metric tons last year of which about 6 tonnes came from artisanal miners. https://www.reuters.com/world/africa/mali-suspends-artisanal-gold-mining-activities-due-weather-conditions-2025-06-03/
2025-06-03 12:43
Ukrainian officials in Washington to drum up US support Senior Ukrainian official briefs US officials on battlefield Kyiv accuses Moscow of foot-dragging, not responding to proposals Kremlin says should not expect immediate solutions Russian strike kills four in northern Ukrainian city of Sumy Ukrainian drones strike Russian-occupied regions of Ukraine KYIV, June 3 (Reuters) - Senior Ukrainian officials visited Washington on Tuesday to seek U.S. support against Russia while accusing Moscow of dragging its feet at peace talks. Kyiv showed its ability to continue fighting by setting off an explosive device under a bridge that has become a symbol of the Kremlin's claims on Ukrainian territory. Sign up here. President Volodymyr Zelenskiy said a Russian artillery strike killed four people in the northern Ukrainian city of Sumy, an area where Russian forces have been making advances. Zelenskiy's chief of staff, Andriy Yermak, writing on Telegram after meeting U.S. Ukraine envoy Keith Kellogg, accused Russia of "playing for time, manipulating the talks, trying to avoid U.S. sanctions and not wanting a ceasefire." Ukrainian Foreign Minister Andrii Sybiha was more blunt, saying Russia had ignored a request to comment on Ukraine's proposals at Monday's second round of direct peace talks in Istanbul. "We demand Russia’s reply. Each day of silence from them proves their wish to continue the war," Sybiha wrote on social media. Russia, he said, had "passed a set of old ultimatums that do not move the situation any closer to true peace." Yermak, in the United States with Deputy Prime Minister Yulia Svyrydenko, also said he briefed U.S. envoy Steve Witkoff "on the real situation on the battlefield" and invited him to visit Ukraine "to witness the situation firsthand." "We need a ceasefire — we have fully supported the U.S. proposal on this since March. We are also ready for a leaders’ meeting, which Russia continues to avoid," he said. A U.S. official said Yermak was scheduled to meet with U.S. Secretary of State Marco Rubio on Wednesday. Yermak said officials would also discuss a deal that gives the U.S. preferential access to new Ukrainian mineral projects and sets up an investment fund that could be used for reconstruction. Monday's talks in Istanbul made little headway toward ending Russia's war in Ukraine, apart from an exchange of proposals and an undertaking to conduct a new large-scale swap of prisoners of war. Moscow has responded to accusations of foot-dragging by saying Ukraine is not making a genuine effort to seek peace. At the talks, Russia told Ukraine it would agree to end the war only if Kyiv gives up big new chunks of territory and accepts limits on the size of its army. Ukraine rejects the Russian conditions as tantamount to surrender. "The (peace) settlement theme is extremely complex, it consists of a large number of nuances...," said Kremlin spokesman Dmitry Peskov, adding that "it would be wrong to expect any immediate solutions and breakthroughs here". It was not clear what would be the next step in negotiations between Russia and Ukraine, but Moscow said early on Wednesday that Istanbul will remain the venue for future talks. COORDINATED ATTACKS Kyiv launched in recent days what appeared to be one of its biggest waves of coordinated attacks of the conflict. Ukraine's SBU security service said it had hit a road and rail bridge that links Russia and Crimea below the water level with explosives. The extent of any damage was not clear and Russian officials later said vehicle traffic had resumed. The bridge is a flagship project for Russian President Vladimir Putin, built after he annexed Crimea from Ukraine in 2014, a precursor to the latest conflict. Russian officials also announced that emergency crews had restored power to some 700,000 customers in Russian-controlled areas of southern Ukraine - in Zaporizhzhia and Kherson regions - after drones and shelling had knocked out substations and other infrastructure. Ukraine's attack on Russian-occupied territory in the Zaporizhzhia and Kherson regions followed multiple Russian attacks on Ukrainian energy infrastructure that have at times left millions of Ukrainians without power. The latest attacks followed drone strikes over the weekend on Russian military airfields, some of which housed long-range nuclear-capable bombers. Ukraine's success in striking deep into Russia has prompted calls by some Russian military bloggers for a harsh response. Zelenskiy denounced the Russian military strike on Sumy, describing the incident as: "all one needs to know about the Russian wish to end this war." He also announced a military shakeup, including the appointment to a new post of a commander who resigned over a deadly Russian attack on a training area. Zelenskiy, speaking in his nightly video address after a meeting of top commanders, said the reshuffle sought to ensure that the military remained focused on combat more than three years after Russia's invasion of its smaller neighbour. https://www.reuters.com/world/europe/zelenskiy-aides-visit-us-ukraine-strikes-russian-held-territory-2025-06-03/
2025-06-03 12:41
BERLIN, June 3 (Reuters) - Germany's auto lobby warned on Tuesday that export restrictions by China on rare earths alloys, mixtures and magnets posed a serious risk to the industry and could cause production delays and outages if a solution was not found quickly. Slow granting of export licenses, as well as lags in customs clearance of exports with valid licenses, was causing significant problems for automakers, the head of auto lobby VDA, Hildegard Mueller, said in a statement to Reuters, marking the first time the lobby has warned of an impending stop to output. Sign up here. Diplomats, automakers and other executives from India, Japan and Europe are urgently seeking meetings with Beijing officials to push for faster approval of rare earth magnet exports, sources told Reuters earlier on Tuesday, after China imposed new rules in April demanding exporters obtain licenses from Beijing. "Although some licenses have now been granted, this is currently insufficient to ensure smooth production... If the situation is not changed quickly, production delays and even production outages can no longer be ruled out," Mueller said. The shortage threatens to wreak further havoc to the already strained supply chains of automakers like Volkswagen (VOWG.DE) , opens new tab, Mercedes-Benz (MBGn.DE) , opens new tab and BMW as well as suppliers including Bosch and others who rely on rare earths for applications including motors for electric cars. https://www.reuters.com/business/autos-transportation/chinas-rare-earth-export-curbs-risk-halting-german-car-production-lobby-group-2025-06-03/
