Results for: Sanctions

The United States has cautioned Pakistan against conducting business with Iran, warning of potential sanctions. This warning follows Iranian President Ebrahim Raisi’s visit to Pakistan, during which the two countries pledged to increase bilateral trade to $10bn annually and collaborate in the energy sector, including the Iran-Pakistan gas pipeline project. The US has imposed sanctions on Iran for decades to restrict its income from oil and petroleum products and has sanctioned entities and individuals accused of supporting its armed forces or militant groups. Pakistan is facing economic challenges and is seeking financial assistance from allies like Saudi Arabia, the United Arab Emirates, and the US, who are considered rivals of Iran. Experts believe Pakistan needs to balance its relationships with Iran and the US, prioritizing trade and energy cooperation with Iran while addressing the risk of sanctions.

A Russian court has ordered the seizure of funds in JPMorgan Chase bank accounts in Russia in a lawsuit filed by state-owned bank VTB. VTB is seeking to recover funds blocked abroad due to sanctions. JPMorgan Chase has sued VTB in New York to halt its efforts to recover $439.5 million. The Arbitration Court of St Petersburg and the Leningrad Region’s ruling on April 22 ordered the seizure of all funds in JP Morgan bank accounts in Russia, including correspondent accounts and those opened in the name of a subsidiary. Securities and property held by JP Morgan funds, or the domain, were not seized.

China’s exports to Russia have plummeted by 15.7% in March, the first time since the war in Ukraine began. The drop is attributed to Chinese businesses seeking to avoid secondary sanctions imposed by the Biden administration on entities aiding Russia’s war effort. Despite the decline in trade, China remains a crucial lifeline for Russia, which has faced an exodus of international businesses since invading Ukraine. The US has threatened to impose full sanctions on Chinese businesses providing Russia with support, further straining relations between Washington and Beijing.

The US government has advised businesses considering deals with Iran to be aware of the potential risk of sanctions. The warning came in response to a visit by the Iranian president to Pakistan, during which the two countries signed eight memorandums of understanding and agreed to increase bilateral trade. The US recently imposed sanctions on suppliers to Pakistan’s ballistic missile program, including three Chinese companies, due to their role in supplying equipment and materials to the program. Despite the sanctions, the US maintains a good relationship with Pakistan, which it considers an important security partner in the region.

Despite being the first Western nation to sanction Russian titanium, the Canadian government has granted Airbus permission to use the metal in its manufacturing processes. The exemption aims to facilitate the importation of EU-produced jets that were built with Russian titanium. While the EU has sanctioned Moscow following the Ukraine conflict, it has not blacklisted VSMPO-AVISMA, the world’s largest processed titanium producer. Airbus and Boeing both announced plans to discontinue using Russian titanium in 2022, but major suppliers for Boeing continue to purchase from VSMPO-AVISMA. Only Canada and Ukraine have sanctioned the company, while the US has imposed export controls.

Iraq has a long history of making promises to the United States regarding reducing gas and electricity imports from Iran, but has consistently failed to follow through. In 2020, Iraq signed a historic five-year deal to import gas and electricity from Iran, despite promising the US that it would reduce its reliance on Iranian energy. Iraq also continues to flare large amounts of natural gas that could be used for power generation or exports. Despite signing agreements with US companies to reduce gas flaring, Iraq has made little progress and continues to be the second-largest gas flaring country in the world. The US has repeatedly granted Iraq waivers from sanctions, but Iraq has not fulfilled its commitments to reduce its reliance on Iranian energy or reduce gas flaring.

Canada has granted Airbus a waiver to use Russian titanium in its manufacturing after becoming the first Western government to ban supplies of the strategic metal. This move allows Airbus flexibility in its Canadian plants and addresses concerns about potential disruptions to its operations caused by the ban on the import of European-built long-range jets that rely heavily on titanium. Russian state-backed VSMPO-AVISMA has been the industry’s largest titanium supplier. The Canadian government’s stance is expected to elevate the debate over further sanctions against Russia’s economy.

The US State Department has issued a warning to Pakistan regarding its growing closeness with Iran, highlighting the potential risk of sanctions due to Iran’s global position and regional activities. The warning came during Iranian President Raisi’s three-day visit to Pakistan, where the two nations signed several bilateral agreements. The US, Pakistan’s largest export market and investor, emphasized the importance of their economic partnership and reminded Islamabad of their own trade ties.

Sanctions imposed on Chinese banks could have ripple effects on the ‘China proxy’ trade, which involves investing in currencies and assets that are expected to benefit from China’s economic growth. One such currency is the Australian dollar (AUD), which has been seen as a proxy for the Chinese yuan. However, if Chinese banks are sanctioned, it could reduce demand for the yuan and, by extension, the AUD.

As sanctions intensify, Russian mining giant Norilsk Nickel has announced plans to move some of its copper smelting operations to China. The company will establish a joint venture to build a new plant in China, which is expected to be operational by mid-2027. The final product will be sold as Chinese, reducing the risk of sanctions and ensuring access to the Chinese market.