2025-10-03 13:00
WASHINGTON, Oct 3 (Reuters) - The U.S. government has put $2.1 billion in Chicago infrastructure projects on hold, Office of Management and Budget Director Russ Vought said on Friday, in another jab at a Democratic-led city during the government shutdown. Vought said $2.1 billion for major Chicago subway projects -- the Red Line Extension and the Red and Purple Modernization Project "have been put on hold to ensure funding is not flowing via race-based contracting." Sign up here. On Wednesday, Vought said the administration of President Donald Trump had frozen $18 billion for major transit projects in New York, including the Hudson Tunnel and the Second Avenue Subway, citing the same issue. The Trump administration's Energy Department on Wednesday said it would cancel nearly $8 billion for hundreds of energy projects in 16 Democratic-led states, including California and New York. The outgoing administration of former president Joe Biden finalized a nearly $2 billion award in its final days to help extend the Red Line 5.5 miles to connect Chicago Far South Side to the L system. The Biden administration said the project would "address inequalities in access and economic investment in predominantly Black and disadvantaged neighborhoods." Illinois Governor JB Pritzker and the Chicago Transit Authority, which handles more than 300 million passengers yearly and is the third largest U.S. transit agency, did not immediately comment. USDOT has previously threatened transit funding for New York, Chicago and Boston , opens new tab on a number of grounds. Trump on Thursday vowed to cut "Democrat Agencies," as he looks to inflict pain on his political opposition. Trump has repeatedly vowed to send National Guard troops to police Chicago. In recent days, there have been growing scenes of conflict involving federal immigration agents in Chicago and its suburbs. Vought cited a new rule from the Transportation Department that took effect Wednesday to review whether any small-business contractors are engaged in improper diversity initiatives. This is one of a series of efforts intended to pressure Democratic lawmakers in Congress over the partial government shutdown that began just after midnight Wednesday. USDOT said it would not process a $300 million reimbursement due for the subway project pending the review, which it said was hampered by the government shutdown. The $17.2 billion Hudson River tunnel project, which received more than $11 billion in federal grants, involves repairs to an existing tunnel, and the building of a new one for passenger railroad Amtrak and commuter lines between New Jersey and Manhattan. Any failure of the current Hudson tunnel, which was heavily damaged by 2012's Hurricane Sandy, would hobble commuting in the metropolitan area that produces 10% of the country's economic output. https://www.reuters.com/world/white-house-freezes-21-billion-chicago-projects-vought-says-2025-10-03/
2025-10-03 12:48
DUBAI, Oct 3 (Reuters) - Saudi Arabia's path to fiscal consolidation faces risks, Fitch Ratings said on Friday, as lower oil prices and heavy spending commitments tied to the country's Vision 2030 economic transformation plan weigh on the kingdom's finances. The Vision 2030 plan, led by the nearly $1 trillion Public Investment Fund (PIF), aims to reduce the country's reliance on oil and develop more sustainable revenue streams, which requires hundreds of billions of dollars in investment. Sign up here. Fitch Ratings' warning that Saudi's ambitious spending plans face risks follows the Saudi government's 2026 pre-budget statement on Tuesday, which signalled a shift toward tighter fiscal discipline after a sharper-than-expected widening of the 2025 deficit. Saudi, the world's top oil exporter, now forecasts a fiscal shortfall of 5.3% of gross domestic product in 2025, nearly double the 2.3% initially projected, before narrowing to 3.3% in 2026. That compares with an earlier 2025 budget estimate of 2.9% for next year. The deterioration in 2025 was driven by revenue shortfalls and overspending, Fitch said, attributing the revenue miss primarily to weaker oil income. However, it noted non-oil revenues likely remained robust on the back of a strong non-oil economy and conservative budgeting. Flagship projects include NEOM, a massive futuristic urban and industrial development on the Red Sea nearly the size of Belgium. The Saudi government forecasts its revenues will rise 5.1% in 2026 while spending will fall 1.7% versus 2025 projections. Fitch expects fiscal tightening through stable oil revenues, higher non-oil income and modest cuts to current and capital expenditures. Reuters reported in April that falling oil prices were increasing pressure on Saudi Arabia to either rein in spending or raise debt to finance its ambitious agenda. Fitch said the fiscal strain underscored the kingdom's vulnerability to oil market swings, even as it accelerates efforts to build alternative revenue streams. https://www.reuters.com/world/middle-east/saudi-faces-rising-fiscal-risks-amid-mounting-spending-oil-prices-dip-fitch-says-2025-10-03/
2025-10-03 12:32
JAKARTA, Oct 3 (Reuters) - Indonesia's shrimp industry suffered a 30-35% drop in processing absorption after a radioactive contamination was detected in a batch of shrimp shipped to the U.S. in August, the country's shrimp farmers' association said on Friday. The shrimp was processed at an industrial estate near Jakarta that was later found to be contaminated with of Cesium 137 and the Southeast Asian nation's nuclear agency is seeking to pinpoint the size of the area affected. Sign up here. Indonesia is the world's fifth largest shrimp exporter, accounting for 6% of global exports. About two-thirds of its exports go to the United States. While the radioactive finding was in just one shrimp consignment from one company, PT Bahari Makmur Sejati (BMS), U.S. and other foreign buyers are now waiting to determine whether all shrimp from Indonesia is safe, said Andi Tamsil, the head of Indonesia's shrimp farmers' association. Prices have fallen by up to 35% in several regions, he said. "Since BMS was added to the U.S. Food and Drug Administration's red list, shrimp absorption from farmers has decreased by around 30%-35%," Tamsil told Reuters. In 2024, Indonesia exported about 215,000 tonnes of shrimp, valued at about $1.7 billion, according to government data. The U.S. is the main market for Indonesian shrimp, accounting for 63.7% of the total exports, followed by Japan. "If this continues, millions of households that depend on this industry from upstream to downstream are at risk of losing their jobs," Tamsil said. The shrimp industry had become the victim of negligence and the incident had shaken public confidence, he added. "This fatal mistake has caused the U.S. to question the safety of our food." Indonesia established a task force after the U.S. FDA issued an advisory to American consumers, distributors and sellers not to eat, sell or serve frozen shrimp imported by BMS, doing business as BMS Foods, after their products were associated with Cesium 137 contamination. So far, the U.S. FDA has listed , opens new tab 10 brands associated with BMS. Cesium 137 is present in the environment mainly from past nuclear testing or accidents, like Chernobyl and Fukushima, according to the FDA's website. https://www.reuters.com/sustainability/climate-energy/indonesias-shrimp-industry-suffers-after-radioactive-case-association-says-2025-10-03/
2025-10-03 12:13
Production sites in Kharkiv, Poltava regions damaged Russia aims to disrupt heating season, Naftogaz says Ukrainian drones target Russia's oil refinery KYIV, Oct 3 (Reuters) - A massive Russian air assault struck several of Ukraine's main gas production facilities, officials said on Friday, in some cases causing critical damage as Ukraine prepares for a new heating season. Russia fired 35 missiles and 60 drones at sites of the state gas and oil company Naftogaz in the Kharkiv and Poltava regions overnight, said CEO Sergii Koretskyi, adding the attack was the biggest of the war on gas production. Sign up here. "As a result of this attack, a significant portion of our facilities has been damaged. Some of the destruction is critical," he said on Facebook, adding that there was "no military rationale" for this strike. The Russian Defence Ministry confirmed its forces had carried out massive overnight strikes on Ukraine's gas and energy infrastructure, saying it had also attacked military-industrial facilities. "Just before the heating season starts, Russians are looking for ways to cause more harm to our people," President Volodymyr Zelenskiy said in his evening address, adding that only half of the missile salvo has been shot down. Ukraine has boosted gas imports, fearing disruption of domestic supplies, and intends to stockpile 13.2 billion cubic meters (bcm) of gas in storage facilities by mid-October. This will include some 4.6 bcm of imported gas. Russian strikes on Ukraine's gas infrastructure earlier this year cut domestic output by 40%. BLACKOUTS, FUEL CRISIS Ukraine's top private energy provider DTEK said it had suspended operations at several gas facilities in the Poltava region after the overnight attack. Over 8,000 consumers were left without power, the regional governor said. According to Ukraine's air force, the massive Russian strike on 6 out of 24 regions included a total of 381 drones and 35 missiles. Russia has stepped up its attacks on Ukraine's energy sector as the fourth winter of war approaches, and they have already triggered prolonged blackouts in several regions. Late on Friday, Russian attacks left without power part of eastern Donetsk region, including the frontline city of Kostiantynivka, the regional governor said. A drone attack on the northern Kyiv and Chernihiv regions on Wednesday knocked out power to the Chornobyl nuclear power plant for three hours, including the new containment vessel erected in 2016 to keep radiation from leaking. Seeking retaliation, Kyiv's troops have also stepped up deep strikes on oil refineries deep in Russia in recent months, prompting fuel shortages in some regions. In September alone, Ukraine attacked 19 oil facilities across Russia and Russia-occupied territories of Ukraine, according to the commander of Ukraine's drone forces. On Friday, Ukrainian drones hit Orsknefteorgsintez refinery in the Russian city of Orsk near the border with Kazakhstan, causing fires. https://www.reuters.com/business/energy/russia-attacks-ukraines-energy-infrastructure-overnight-energy-ministry-says-2025-10-03/
2025-10-03 12:00
Voltage surge caused April blackout, report confirms Final report in 2026 to investigate root causes and control measures Some data still missing on power generation losses BRUSSELS/MADRID, Oct 3 (Reuters) - The massive power outage that hit the Iberian Peninsula in April is the first known blackout caused by excessive voltage, the European network of electricity transmission system operators said in a report on Friday. The report, released ahead of an October 28 legal deadline, focused on the power systems' condition on the day of the outage and the sequence of events, and did not look into what acted as its trigger. Sign up here. The report, like previous probes, pointed to a surge in voltage as the immediate cause of the April 28 outage, Europe's most significant blackout in more than two decades, which paralysed cities and stranded people on trains across Portugal and Spain. A final report, due in the first quarter of 2026, will investigate the root causes and steps taken to control voltage in the system. MISSING DATA AND UNEXPLAINED POWER GENERATION LOSSES Damian Cortinas, chair of ENTSO-E's board, said nothing in its findings had indicated a cyber-attack was involved. He also said neither Spain's increasing reliance on renewable energy nor the country's limited power interconnections with other countries had played a role. "If there had been double the interconnection capacity, this would not have stopped the blackout, and this would not have accelerated the recovery," Cortinas told Reuters. After the blackout, the Spanish and Portuguese governments have urged the EU to help them develop new power links with other countries, which they say would help their power grids respond to disruptions. The report said that the reasons for some initial power generation losses were still unknown and that some power plant operators in Spain said they lacked this data. "Collecting complete, high-quality data proved very challenging for this investigation," ENTSO-E said. Its report follows several others by the Spanish government and power and grid companies. The national energy watchdog and Spanish lawmakers are also conducting separate probes. Redeia, owner of grid operator REE, has blamed the blackout on some power plants' failure to help maintain appropriate voltage while Spanish utilities blamed the Spanish grid operator's poor planning. ENTSO-E's investigation panel includes representatives from Spanish grid operators - a set-up Spanish utilities have criticised. Cortinas said their expertise was needed for the investigation, and the 45-member panel included representatives from across Europe, ensuring no individual operator had undue influence. Redeia said on Friday that the report confirmed the sequence of events described in its own findings. Spanish power utility lobby Aelec declined to comment. https://www.reuters.com/business/energy/iberian-blackout-was-first-over-voltage-caused-blackout-2025-10-03/
2025-10-03 11:51
COPENHAGEN, Oct 3 (Reuters) - Sweden is proposing legislation to increase security in the Baltic Sea by expanding its coast guard's ability to conduct maritime surveillance, the Nordic country's defence ministry said on Friday. The Baltic Sea region is on heightened alert following a string of undersea cable and gas pipeline outages in the years following Russia's 2022 invasion of Ukraine, as well as recent drone sightings and airspace violations. Sign up here. "We have not chosen our external situation, but we must deal with the reality we face," Sweden's Minister for Civil Defence Carl-Oskar Bohlin said in a statement. NATO, of which Sweden is a member, said on Saturday that it was upgrading its mission in the Baltic Sea with an air-defence frigate and other assets following drone incursions in Denmark. https://www.reuters.com/business/media-telecom/sweden-plans-boost-coast-guard-surveillance-baltic-sea-2025-10-03/
