Tag: Deal

  • Pakistan, Saudi expected to sign deal for USD 2bn deposits post Eid

    Pakistan, Saudi expected to sign deal for USD 2bn deposits post Eid

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    Islamabad: Cash-starved Pakistan is likely to ink a deal for additional deposits of USD 2 billion from Saudi Arabia after Eid, authorities said on Saturday, a move that will help the country secure the much-required bailout from the IMF.

    In March, Pakistan sought Saudi Arabia’s confirmation for funds to ink an IMF deal. Earlier this month Pakistan got Riyadh’s nod for additional funding.

    The assistance from Saudi Arabia comes at a crucial time as the IMF programme, signed in 2019, will expire on June 30, 2023, and under the set guidelines, the programme cannot be extended beyond the deadline.

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    The Washington-based crisis lender has imposed the condition on Pakistan that it should secure USD 3 billion from other countries for the revival of its USD 7 billion bailout package.

    A top government official told The News International that the State Bank of Pakistan would sign a deal with the Saudi Fund for Development (SFD) soon after Eid for an additional USD 2 billion deposit.

    The official added that Saudi Arabia has confirmed the bilateral assistance support to the International Monetary Fund (IMF), which was also acknowledged by the lender’s staff, the report said.

    This agreement is the follow-up on the confirmation of additional financial support of USD 2 billion and USD 1 billion from the Kingdom and the UAE, the official added.

    Official sources clarified that Pakistan neither made any fresh request for more support from Saudi Arabia nor the UAE, except for the already confirmed USD 2 billion and USD 1 billion by these countries, respectively.

    Saudi Arabia had already rolled over USD 3 billion in deposits for one year, which matured on December 5, 2022. This USD 3 billion deposit is part of foreign exchange reserves of USD 4.43 billion, lying with the State Bank of Pakistan.

    In March, Pakistan received a rollover of USD 2 billion in deposits for a period of one year from its all-weather ally China.

    Pakistan, currently in the throes of a major economic crisis, is grappling with high external debt, a weak local currency and dwindling foreign exchange reserves.

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    ( With inputs from www.siasat.com )

  • German government, trade unions agree on wage deal for public workers

    German government, trade unions agree on wage deal for public workers

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    The German government, local authorities and trade unions reached a deal late Saturday on higher pay scales for the country’s 2.5 million public-sector workers, staving off the possibility of indefinite strikes.

    “We have accommodated the unions as far as we can responsibly do under difficult budgetary circumstances,” said Nancy Faeser, the country’s interior minister. Trade union Ver.di had called for significant raises as the country, like many others across the Continent, grapples with high inflation.

    Among other things, the deal entails tax-free one-time payments totalling €3,000 in several stages, with the first €1,240 to be handed out in June, followed by €220 each month from July to February 2024. In March 2024, monthly pay for all public workers will increase by €200, followed by a 5.5 percent salary increase, with a minimum increase of €340.

    The agreement runs for 24 months.

    The compromise is largely based on a proposal by arbitrators who were called in after talks broke down last month. Ver.di had initially asked for a 10.5 percent raise and at least €500 more pay over a twelve-month period.

    Frank Werneke, the union’s chair, said the negotiations had not been easy. “With our decision to make this compromise, we went to our pain threshold,” he said.

    Municipalities in the country fear the deal may pose new financial challenges for them. Prior to the negotiations, Karin Welge, president of the Federation of Municipal Employers’ Associations, had estimated the deal could create additional costs of €17 billion for cities and municipalities.

    The agreement sets an end to months of negotiations. In a string of walkouts, employee representatives in recent months had disrupted public administration and other public services. At the end of last month, Ver.di, together with the national rail and transport union, brought rail and air traffic to a halt across the country in a large-scale strike.



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    ( With inputs from : www.politico.eu )

  • Rutgers, unions reach tentative deal to end strike

    Rutgers, unions reach tentative deal to end strike

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    New Jersey Gov. Phil Murphy, who stepped in early this week to force the university and unions to the negotiating table, and Rutgers University President Jonathan Holloway called the agreement a “fair and equitable” resolution that raises wages and benefits and improves working conditions for faculty.

    The three striking unions said in an email that they secured “profound victories” for students and faculty members ranging from pay increases to teaching conditions.

    “This framework sets a new standard. Our members have struck to transform higher education in the State of New Jersey and across this country,” Becky Givan, president of the union Rutgers AAUP-AFT, said in a statement through Murphy’s office.

    “The framework we have agreed to today sets in place unprecedented gains for contingent workers, graduate students, and our communities. We look forward to working together with the university to realize President Holloway’s vision of a beloved community. We would not have gotten here without our members’ commitment and the support of our governor.”

    According to Holloway’s office, the agreement would:

    • Increase salaries across the board for full-time faculty and counselors by at least 14 percent by July 1, 2025.
    • Provide a 43.8 percent increase in the per-credit salary rate for part-time lecturers over the four years of the contract while strengthening their job security.
    • Increase the minimum salary for postdoctoral fellows and associates by 27.9 percent over the same contract period.
    • Provide “substantial enhancements” in wages, plus a commitment to multi-year university support for teaching assistants and graduate assistants. The graduate students, in addition to receiving health care coverage and free tuition and fees, will see their 10-month salaries increase to $40,000 over the course of the contract.

    It’s unclear how these increases will get paid. Lawmakers are in the process of scrutinizing Murphy’s $53.1 billion budget, which includes funding for Rutgers and higher education. Murphy’s office declined to say how aspects of the new deal would be financed, saying only that the administration “looks forward” to working with Rutgers during the budget process.
    Three unions were on strike: Rutgers AAUP-AFT, which represents full-time faculty, graduate workers, postdoctoral associates and Educational Opportunity Fund counselors; the Rutgers PTLFC-AAUP-AFT, which represents part-time lecturers; and AAUP-BHSNJ, which represents workers at Rutgers’ health sciences schools.

    Those unions and other had been working without a new contract for several months. Under the agreement, the contracts would be retroactive to July 1, 2022, according to Rutgers. It must be voted on to ratify the contract.

    The unions said there are still some “open issues” to be resolved.

    “However, the framework shows the vital progress we have made on the core issues we prioritized during this contract campaign,” an email to members and obtained by POLITICO said.

    The unions — representing about 9,000 full- and part-time faculty, researchers and graduate students — suspended plans to strike next week. They credited the strike with putting pressure on the school to reach this point.

    Givan also credited Murphy with stepping up his efforts and bringing the two sides to the Statehouse on Monday, “which was critical in getting far more movement from the administration in a matter of days than had taken place in months.”

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    ( With inputs from : www.politico.com )

  • ‘Win-win’: Washington is just fine with the China-brokered Saudi-Iran deal

    ‘Win-win’: Washington is just fine with the China-brokered Saudi-Iran deal

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    “Not everything between the U.S. and China has to be a zero-sum game,” said Sen. Chris Murphy (D-Conn.), who leads the Senate Foreign Relations Committee’s Middle East panel. Plus, he said, better relations between Riyadh and Tehran means that there will be less conflict in the region, which would lower the chance of the United States getting dragged into a fighting in the Middle East. “I don’t know why we would perceive there to be a downside to de-escalation between Saudi Arabia and Iran.”

    Others provided reasons stretching from the grand strategic to the tactical.

    At the highest level, a more-involved China means the United States can focus on its national security priorities, namely defending Ukraine against Russia and deterring China from invading Taiwan. Friendlier ties between Riyadh and Tehran also mean that the Saudi-led coalition’s eight-year war on Yemen could soon come to an end, a key goal for the Biden administration. And there’s the fact that the U.S. has no diplomatic relations with Iran, meaning Washington couldn’t have brokered the rapprochement.

    “The United States should see China’s mediation of a Saudi-Iran agreement as a win-win for American interests,” said Martin Indyk, who served as the special envoy for Israeli-Palestinian negotiations from 2013 to 2014. And if the deal falls apart, “the blame for the failure will be on China’s back and its foray into Gulf diplomacy will be seen to be much ado about nothing.”

    This is generally the argument Biden administration officials make in public and private, despite President Joe Biden’s push for competition with China in the military, economic and technological arenas.

    A Democratic Senate aide, who like others was granted anonymity to detail sensitive discussions and diplomacy, said lawmakers express mixed feelings when briefed by senior figures on the deal.

    “It’s good in that it reduces the threat of nuclear escalation and conflict in the region,” the staffer has heard lawmakers say, but others argue “it gives China too much influence and positions them in the Middle East, where they have never really been engaged, as a political power.” The good-or-bad arguments don’t fall neatly on party lines, the aide noted.

    But there’s no real evidence that China’s role in the Saudi-Iran deal means the United States has somehow removed itself from the Middle East. Gen. Michael “Erik” Kurilla, the head of U.S. Central Command, called Saudi Arabia’s chief of defense Thursday to discuss security cooperation and the military partnership. Col. Joe Buccino, a CENTCOM spokesperson, said the conversation wasn’t tied to diplomacy in China. “Frankly we didn’t even think of that,” he said.

    It shows that Beijing is involved in one aspect of the Middle East’s politics, but hasn’t usurped America’s place in all facets. Among other things, the U.S. is working with Saudi Arabia to normalize relations with Israel, partnering in cyberspace and maritime security operations, investing in Riyadh’s infrastructure goals and developing advanced telecommunications networks. And Washington remains the kingdom’s most important security partner, sending billions in weapons to help defend against regional threats — mainly from Iran — and stationing 3,000 troops in the kingdom.

    “It’s not like Iran’s Shia militias have quieted down on threats or propaganda,” said Phillip Smyth, an expert on Iranian proxies.

    China’s maneuvering, of course, has raised eyebrows in Washington and around the world. It shows Beijing’s willingness to make nice with distant partners, like Iran, and a possible desire to play the long game so that the region eventually tips in China’s favor.

    “The U.S. is perceived as leaving the Middle East, and China fills the void,” gaining more influence in Saudi Arabia and elsewhere, a Middle East official said. “China becomes the winner here.”

    After saying “the Saudi-Iran thing isn’t that big a deal,” a GOP congressional aide added that the “Chinese capitalized on U.S disengagement…We will see others play upon our absence even more in the months ahead.”

    There’s also the fear that Riyadh, upset that Biden once vowed to make the kingdom a “pariah,” might leverage China’s clout to extract more support from the United States. It’s why Biden traveled to Jeddah last year to mend relations with Saudi Arabia and box China out of the region.

    But in the immediate term, Washington is chalking up China’s work on the Saudi-Iran deal as a win for the United States, not a loss.

    “Anything that reduces the chances of conflict between Iran and Saudi Arabia is a good thing, regardless of who brokered it,” said Matthew Duss, Sen. Bernie Sanders’ former foreign policy adviser now at the Carnegie Endowment for International Peace.

    Joe Gould contributed to this report.

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    ( With inputs from : www.politico.com )

  • Nepal keen to sign 25-year electricity deal with India: Report

    Nepal keen to sign 25-year electricity deal with India: Report

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    Kathmandu: Nepal is keen to sign a 25-year agreement with India on selling its surplus power to the neighbouring country during Prime Minister Pushpa Kamal Dahal Prachanda’s expected visit to New Delhi.

    Though the official date of Prachanda’s visit to India is yet to be announced, the Kathmandu Post newspaper, quoting Nepali officials, reported on Sunday that the prime minister is likely to travel to New Delhi after the second week of April.

    However, the two sides have yet to announce the dates, it said.

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    “We are preparing a proposal for the Indian side on the 25-year agreement. But a lot also depends on whether the Indian side agrees to include our proposal in the agenda,” the report quoted a senior official at the energy ministry as saying.

    Dinesh Ghimire, secretary at the ministry, said the issue of the long-term inter-governmental agreement was under discussion at the ministry but was yet to be forwarded to Nepal’s foreign ministry to make it an agenda item ahead of the prime minister’s trip.

    He said such an agreement can be signed only if the Indian side gives its nod at the bureaucratic level before Prachanda reaches New Delhi, the report said.

    Nepal proposed such a deal during the 10th secretary-level meeting of the Joint Steering Committee (JSC) on Energy Cooperation in India in late February.

    “During the meeting, it was decided that Nepal would make a proposal which India would examine,” said Prabal Adhikari, power trade director at the Nepal Electricity Authority (NEA), who was also in the Nepali delegation.

    At the JSC meeting in Mount Abu, Rajasthan in February, Nepal and India inked an agreement to increase the power import and export capacity through the Dhalkebar-Muzaffarpur transmission line from 600 megawatts to 800 megawatts.

    An agreement to import and export 70 to 80 MW of electricity from Tanakpur-Mahendranagar 132 KV (kilovolt) power transmission was also signed between the two sides.

    They agreed to set up the necessary mechanisms to export power from Nepal to Bihar during the rainy season through the existing 132 KV transmission line.

    Currently, Nepal is allowed to sell 452.6 MW of electricity generated by 10 hydropower projects in the Indian power markets. The Himalayan nation awaits approval for more projects from Indian authorities to export electricity.

    Adhikari said an inter-government agreement could also pave the way for selling power to India irrespective of whether a third country has invested or is involved in a particular project.

    Currently, India has been refusing to buy electricity from projects that involve Chinese investors or contractors, the report said.

    Nepal produces surplus energy during the wet (summer) season while it has to buy electricity from India during the dry (winter) season.

    NEA Managing Director Kul Man Ghising believes the country will be self-sufficient in hydropower even during the dry season by 2026.

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    ( With inputs from www.siasat.com )

  • Biden to mark Good Friday peace deal in 5-day Irish trip

    Biden to mark Good Friday peace deal in 5-day Irish trip

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    DUBLIN — U.S. President Joe Biden will pay a five-day visit to both parts of Ireland next month to mark the 25th anniversary of the U.S.-brokered Good Friday peace accord, according to a provisional Irish government itinerary seen by POLITICO.

    The plans, still being finalized with the White House, have the president arriving in Northern Ireland on April 11. That’s one day after the official quarter-century mark for the Good Friday Agreement, the peace deal designed to end decades of conflict that claimed more than 3,600 lives.

    With Irish roots on both sides of his family tree, Biden has long taken an interest in brokering and maintaining peace in Northern Ireland. He has welcomed the recent U.K.-EU agreement on making post-Brexit trade rules work in the region — a breakthrough that has yet to revive local power-sharing at the heart of the 1998 accord.

    According to two Irish government officials involved in planning the Biden visit itinerary, the president will start his stay overnight at Hillsborough Castle, southwest of Belfast, the official residence for visiting British royalty, as a guest of the U.K.’s Northern Ireland Secretary Chris Heaton-Harris.

    Then he’s scheduled to visit Stormont, the parliamentary complex overlooking Belfast, at the invitation of its caretaker speaker, Alex Maskey of the Irish republican Sinn Féin party.

    That could prove controversial given that, barring a diplomatic miracle, the Northern Ireland Assembly and its cross-community government — a core achievement of the 1998 agreement — won’t be functioning due to a long-running boycott by the Democratic Unionists. That party has not yet accepted the U.K.-EU compromise deal on offer because it keeps Northern Ireland, unlike the rest of the U.K., subject to EU goods rules and able to trade more easily with the rest of Ireland than with Britain. Nonetheless, assembly members from all parties including the DUP will be invited to meet Biden there.

    The president is booked to officiate the official ribbon-cutting of the new downtown Belfast campus of Ulster University. During his stay in Northern Ireland he also is expected to pay a visit to Queen’s University Belfast, where former U.S. Secretary of State Hillary Clinton serves as chancellor.

    Next, the Irish government expects the presidential entourage to cross the border into the Republic of Ireland, potentially by motorcade, the approach last adopted by Bill Clinton during his third and final visit to Ireland as president in 2000.

    This would allow Biden to pay a visit to one side of his Irish family tree, the Finnegans, in County Louth. Louth is midway between Belfast and Dublin. Biden previously toured the area in 2016 as vice president, when he met distant relatives for the first time and visited the local graveyard.

    In Dublin, it is not yet confirmed whether Biden will deliver a speech at College Green outside the entrance of Trinity College. That’s the spot where Barack Obama delivered his own main speech during a one-day visit as president in 2011.

    A White House advance team is expected in Dublin this weekend to scout that and other potential locations for a speech and walkabout. He isn’t expected to hold any functions at the Irish parliament, which begins a two-week Easter recess Friday.

    Members of Ireland’s national police force, An Garda Síochána, have been told by commanders they cannot go on leave during the week of April 10-16 in anticipation of Biden’s arrival. The Irish expect U.S. Secretary of State Antony Blinken to accompany the president and take part in more detailed talks with Northern Ireland’s leaders.

    Irish Prime Minister Leo Varadkar plans to host the president and Blinken at Farmleigh House, a state-owned mansion previously owned by the Guinness brewing dynasty, inside Dublin’s vast Phoenix Park.

    The final two days of Biden’s visit will focus on the other side of his Irish roots, the Blewitts of County Mayo, on Ireland’s west coast, which he also visited in 2016. Distant cousins he first met on that trip have since been repeated guests of the White House, most recently on St. Patrick’s Day.

    White House officials declined to discuss specific dates or any events planned, but did confirm that Biden would travel to Ireland “right after Easter.” This suggests an April 11 arrival in line with the Irish itinerary. Easter Sunday falls this year on April 9 and, in both parts of Ireland, the Christian holiday is a two-day affair ending in Easter Monday.

    Jonathan Lemire contributed reporting.



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    ( With inputs from : www.politico.eu )

  • SL to sign deal with India to shift to renewable energy for power generation

    SL to sign deal with India to shift to renewable energy for power generation

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    Colombo: Sri Lanka will sign a memorandum of understanding (MoU) with India to promote renewable energy as the Island nation aims to generate 70 per cent of its electricity requirements from renewable sources by 2030.

    Sri Lankan Cabinet has given approval for a MoU on the cooperation in the field of renewable energy between the two countries, a Sri Lanka Cabinet spokesman said.

    “The government has declared generating 70 per cent of the electricity requirement by 2030 from renewable energy sources to become independent in power supply and for neutralising carbon emissions by 2050,” the spokesman added.

    He said that the Indian government has expressed willingness to strengthen renewable energy sector by operating and facilitating power generation using solar, wind and power generation through biomass.

    India is also to provide continuous transmission of infrastructure in places where agreed mutually in the island including the northern and eastern provinces in cooperation with private and state entrepreneurs in India and Sri Lanka.

    Meanwhile, the National Thermal Power Corporation (NTPC) of India and the Ceylon Electricity Board (CEB) of Sri Lanka have entered into an agreement to jointly implement a solar power project in two stages in the same venue where the previous coal power generation plant was planned to be established in Sampoor in Trincomalee, generating 135 megawatts.

    “As the first stage of this project, it is expected to implement a solar power project of 50 megawatts with a total estimated investment of $42.5 million and to construct a 220 kilowatts transmission line with 40 km length from Sampoor to Kappalthure in the Eastern province spending $23.6 million and it is planned to complete this stage in two years from 2024 to 2025,” the spokesman said.

    “A solar power generation plant with an additional 85 megawatts is expected to be constructed under a total investment of $72 million at the stage 2 of this project. Further to this, it has been planned to construct a transmission line of 76 km with a capacity of 220 kilowatts from Kappalthure to New Habarana in the North Central province with an estimated expenditure of $42 million in order to the distribution of electricity generated under the above stage 02,” he added.

    On Friday, Sri Lanka’s Power and Energy Minister Kanchana Wijesekera had a discussion on investment opportunities and energy sector corporation with an Indian delegation led by Pankaj Jain, Secretary of the Indian Ministry of Petroleum and Natural Gas. The discussion had focused on developing Trincomalee as an energy hub and promoting renewable energy, infrastructure development and supply of liquefied natural gas.

    At the discussion, Jain had called for enhanced partnership between India and Sri Lanka in energy sector and said that the two countries need to explore renewable energy sources as well as understanding newer molecules like green hydrogen, ammonia and compressed biogas.

    The Indian delegation participated at the discussion included Indian High Commissioner to Sri Lanka Gopal Baglay, Deputy High Commissioner Vinod K. Jacob, Special Duty Officer of the Ministry of Petroleum and Natural Gas Esha Srivastava, Chairman of IOC Company S.M. Vaidya, Engineers India Limited Chairman Varthika Shukla, Managing Director of Petronet LNG Limited A.K. Singh, Managing Director of ONGC Videsh Limited Rajarshi Gupta, Director of Hindustan Petroleum Corporation Limited Amit Garg and officials from the High Commission of India.

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    ( With inputs from www.siasat.com )

  • China expects Saudi, Iran to improve ties under Beijing brokered peace deal

    China expects Saudi, Iran to improve ties under Beijing brokered peace deal

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    Beijing: Weeks after China brokered a landmark peace deal between Iran and Saudi Arabia, Chinese President Xi Jinping on Tuesday said he expects both countries to improve their ties as arch-rivals in the Middle East faced an array of challenges to implementing it.

    Xi in his phone conversation with Saudi Crown Prince and Prime Minister Mohammed bin Salman said it is hoped that Saudi Arabia and Iran will uphold the spirit of good neighbourliness and continue to improve their relations on the basis of the results of their talks in Beijing, official media here reported.

    China is ready to continue to support the follow-up process of the Saudi-Iranian talks, Xi said, referring to the China-negotiated peace deal between the arch-rivals to end their hostilities.

    The agreement signed on March 11 in Beijing was regarded as a major diplomatic coup for China’s efforts to emerge as a major power rivalling the US to enlarge its strategic influence especially in the Middle East.

    “The Iran-Saudi rapprochement has been touted as a momentous development in the region. But how it ultimately impacts the Middle East remains a very open question, as the long adversarial powers are fighting a proxy war in Yemen and continue to support opposing sides across the region,” said a report by the US Institute of Peace.

    “Amid perceived US retrenchment from the Middle East, the deal is a diplomatic win for China as it increasingly seeks to present an alternative vision to the US-led global order,” it said.

    Following the Iran-Saudi deal, Xi during his March 20 visit to Russia made a strong pitch for Russia-Ukraine peace talks to end their current war.

    In his phone call with the Saudi Crown Prince, Xi said with the joint efforts of China, Saudi Arabia and Iran successfully held and achieved significant results, helping the two countries to improve their relations.

    It is a significant demonstration effect on enhancing the unity and cooperation of regional countries and easing regional tensions, and thus having been widely praised by the international community, he said.

    It is hoped that Saudi Arabia and Iran will uphold the spirit of good neighbourliness and continue to improve their relations on the basis of the results of their talks in Beijing, Xi said, adding that China is ready to continue to support the follow-up process of the Saudi-Iranian talks.

    As Xi and Crown Prince Mohammed held talks for the successful implementation of the deal, both countries appear to be building a “more meaningful” relationship with a landmark USD 10 billion deal to construct a state-of-the-art refining complex in north-eastern Liaoning province.

    Under the deal announced on Sunday, Riyadh will invest in the integrated refinery and petrochemicals complex to consolidate energy ties amid uncertainty over Russian supplies, the Hong Kong-based South China Morning Post reported on Tuesday.

    For now, analysts expect China to continue buying heavily discounted Russian crude, but there are fears that US-led sanctions against Russia for its war in Ukraine “could greatly disrupt the global oil supply chain, leading to big price fluctuations”, Joey Zhou, a Shanghai-based petrochemicals analyst, told the Post.

    “We expect Middle Eastern companies would be willing to participate in [more] joint ventures with Chinese firms to ensure they have a secure outlet for their oil,” he said.

    “To obtain a more competitive position for feedstock costs, Chinese producers are also likely to welcome Saudi or Emirati funds by involving them in existing or new plans for integrated refinery and petrochemical complexes,” Zhou said.

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    ( With inputs from www.siasat.com )

  • Israel-UAE free trade deal takes effect

    Israel-UAE free trade deal takes effect

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    Jerusalem: A free trade agreement between Israel and the United Arab Emirates (UAE) has come into effect, the first such economic deal the Jewish state reached with an Arab country.

    Officials from both countries signed a customs agreement on Sunday, enabling the free trade agreement signed in May 2022 to come into effect, an official statement said.

    The customs agreement was signed by Israeli Foreign Minister Eli Cohen and UAE Ambassador to Israel Mohamed Al Khaja in the presence of Netanyahu, reports Xinhua news agency.

    According to the statement, the free trade deal is expected to reduce customs duties and lower the cost of living while increasing business between the two countries.

    Additionally, Israeli companies will gain access to UAE government tenders, it added.

    “The taking effect of the free trade agreement is important news for the Israeli economy, for the strengthening of ties with the UAE and is further testament to the importance of the Abraham Accords,” Cohen said.

    The Abraham Accords are a series of US-brokered deals Israel reached with the UAE, Bahrain and Morocco in 2020 to establish diplomatic relations.

    According to the Israeli Foreign Ministry, the UAE is Israel’s 16th largest trading partner, with bilateral trade volume reaching over $2.5 billion in 2022.

    Israel is currently in talks with Bahrain to sign a free trade agreement.

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    ( With inputs from www.siasat.com )

  • New York nears deal to ban gas stoves in new homes

    New York nears deal to ban gas stoves in new homes

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    New York would be the first to take this step through legislative action; California and Washington have done so through building codes. An agreement has not been finalized to ensure passage, but the new restrictions are included in all three plans being discussed in Albany.

    Supporters see the potential law as a national model that they hope can spur similar action by other states and the federal government to limit fossil fuel use in buildings, which are a major source of greenhouse gas emissions contributing to climate change.

    “All eyes are on us and a lot of other states are looking to what New York does,” said Pat McClellan, policy director at the New York League of Conservation Voters. “If we prove it can be done and we have the political will to do this, it’s going to open the floodgates for other states to take action.”

    Republicans across the nation have stoked anger about proposals targeting gas stoves after a federal official said the Consumer Product Safety Commission should consider a ban. In Florida, Republican Gov. Ron DeSantis urged lawmakers to approve a tax exemption for gas stoves and declared federal officials aren’t “taking our gas stoves away from us.”

    In New York, Hochul hasn’t proposed a measure to ban the sale of new gas stoves for existing buildings, just new buildings. New York’s climate plan, however, backs such a step in the future.

    All three proposals being considered in New York — the ones from the Assembly, Senate and governor — have some exemptions, including for emergency back-up generators, hospitals, laundromats and commercial kitchens.

    The measures would continue to allow gas stoves in new restaurants, but would ultimately block them in residential and most other new buildings. Details would be worked out by the state’s building codes council.

    The proposals face opposition from fossil fuel companies, business groups and homebuilders. Some upstate Democratic lawmakers have concerns about the plan and are sensitive to questions from their constituents about the perceived cost and reliability of electric heating options.

    “I would prefer that we incentivize electric buildings, either through tax credits or other proposals, rather than forcing it as an issue because there’s a lot of concern and angst in particular in western New York,” said Assemblymember Monica Wallace (D-Lancaster). “We shouldn’t necessarily ban people from pursuing other options if that’s what they want.”

    New York’s climate law mandates steep emissions reductions in the coming years with a goal of net-zero by 2050. A ban on burning fossil fuels in new buildings is recommended by the state’s climate plan that was developed over a multiyear process and approved last December.

    New York City has already enacted a ban on fossil fuel combustion equipment including stoves, with exemptions for restaurants and other specific uses, in most new buildings under seven stories starting next year and in 2027 for taller buildings.

    The proposed dates for the statewide new requirement differ, as do the height of the buildings that would be captured. The earliest date backed by the state Senate is the beginning of 2025 for residential and buildings below seven stories. Hochul and the Assembly backed banning gas in new homes starting in 2026.

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    ( With inputs from : www.politico.com )