Tag Archives: RU

Iran begins process of making enriched uranium metal; U.S., E3 dismayed

VIENNA/WASHINGTON, July 6 (Reuters) – Iran has begun the process ofproducing enriched uranium metal, the U.N. atomic watchdog said on Tuesday, a move that could help it develop a nuclear weapon and that three European powers said threatened talks to revive the 2015 Iran nuclear deal.

Iran’s steps, which were disclosed by the International Atomic Energy Agency and which Tehran said were aimed at developing fuel for a research reactor, also drew criticism from the United States, which called them an “unfortunate step backwards.”

U.S. and European officials made clear that Iran’s decision would complicate, and potentially torpedo, indirect U.S.-Iranian talks seeking to bring both nations back into compliance with the 2015 deal, which was abandoned by former U.S. President Donald Trump.

The deal imposed curbs on Iran’s nuclear programme to make it harder for Tehran to develop fissile material for nuclear weapons in return for the lifting of economic sanctions. After Trump withdrew, Iran began violating many of its restrictions.

Tehran has already produced a small amount of uranium metal this year that was not enriched. That is a breach of the deal, which bans all work on uranium metal since it can be used to make the core of a nuclear bomb. read more

“Today, Iran informed the Agency that UO2 (uranium oxide) enriched up to 20% U–235 would be shipped to the R&D laboratory at the Fuel Fabrication Plant in Esfahan, where it would be converted to UF4 (uranium tetrafluoride) and then to uranium metal enriched to 20% U–235, before using it to manufacture the fuel,” an IAEA statement said.

A confidential IAEA report seen by Reuters said the agency had confirmed that Iran had taken the second of the four steps described, making clear it has begun the process.

Britain, France and Germany said on Tuesday they had “grave concern” about Iran’s decision, which violates the nuclear deal formally named the Joint Comprehensive Plan of Action (JCPOA). read more

“Iran has no credible civilian need for uranium metal R&D and production, which are a key step in the development of a nuclear weapon,” they said in a joint statement issued by Britain’s foreign ministry.

“With its latest steps, Iran is threatening a successful outcome to the Vienna talks despite the progress achieved in six rounds of negotiations,” they said, and urged Iran to return to the talks, which began in April and adjourned on June 20. No date has been set for a next round.

U.S. State Department spokesman Ned Price said that Washington was not setting a deadline for the talks but noted “that as time proceeds Iran’s nuclear advances will have a bearing on our view of returning to the JCPOA.”

Price said the United States found it “worrying” that Iran was continuing to violate the agreement “especially with experiments that have value for nuclear weapons research.

“It’s another unfortunate step backwards for Iran,” he said.

Reporting by Francois Murphy in Vienna and by Humeyra Pamuk and Arshad Mohammed in Washington;
Additional reporting by Doina Chiacu, Jonathan Landay and Simon Lewis in Washington and by David Milliken in London;
Writing by Francois Murphy and Arshad Mohammed
Editing by David Goodman and Sonya Hepinstall

Our Standards: The Thomson Reuters Trust Principles.

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French champagne industry group fumes over new Russian champagne law

PARIS/MOSCOW, July 5 (Reuters) – France’s champagne industry group on Monday blasted a new Russian law forcing foreign champagne producers to add a “sparkling wine” reference to their bottles and called for champagne exports to Russia to be halted.

The law, signed by Russian President Vladimir Putin on Friday, requires all foreign producers of sparkling wine to describe their product as such on the label on the back of the bottle — though not on the front — while makers of Russian “shampanskoye” may continue to use that term alone.

The French champagne industry group called on its members to halt all shipments to Russia for the time being and said the name “champagne”, which refers to the region in France the drink comes from, had legal protection in 120 countries.

“The Champagne Committee deplores the fact that this legislation does not ensure that Russian consumers have clear and transparent information about the origins and characteristics of wine,” group co-presidents Maxime Toubart and Jean-Marie Barillere said in a statement.

French Trade Minister Franck Riester said he was tracking the new Russian law closely, in contact with the wine industry and France’s European partners.

“We will unfailingly support our producers and French excellence,” he said on Twitter.

Moet Hennessy, the LVMH-owned French maker of Veuve Clicquot and Dom Perignon champagnes, said on Sunday it would begin adding the designation “sparkling wine” to the back of bottles destined for Russia to comply with the law.

LVMH (LVMH.PA) shares were down around 0.2% on Monday afternoon, underperforming the Paris bourse, which was up 0.34%.

Shares in Russian sparkling wine maker Abrau-Durso (ABRD.MM) were up more than 3% after rising as much 7.77% in early trade.

Abrau-Durso president Pavel Titov told Radio France Internationale on Saturday his firm does not have sparkling wines that would be called “champagne” in its portfolio and said he hoped the issue would be resolved in favor of global norms and standards.

“It is very important to protect the Russian wines on our market. But the legislation must be reasonable and not contradict common sense … I have no doubts that the real champagne is made in the Champagne region of France,” he said.

Reporting by Sudip Kar-Gupta and Leigh Thomas in Paris and Alexander Marrow in Moscow;
Writing by Geert De Clercq
Editing by Alison Williams, Andrea Ricci and Catherine Evans

Our Standards: The Thomson Reuters Trust Principles.

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Saudi Arabia pushes back on UAE opposition to OPEC+ deal

DUBAI, July 4 (Reuters) – Saudi Arabia’s energy minister pushed back on Sunday against opposition by fellow Gulf producer the United Arab Emirates to a proposed OPEC+ deal and called for “compromise and rationality” to secure agreement when the group reconvenes on Monday.

It was a rare public spat between allies whose national interests have increasingly diverged, spilling over into OPEC+ policy setting at a time consumers want more crude to aid a global recovery from the COVID-19 pandemic.

OPEC+, which groups the Organization of the Petroleum Exporting Countries and its allies, voted on Friday to raise output by some 2 million barrels per day from August to December 2021 and to extend remaining cuts to the end of 2022, but UAE objections prevented agreement, sources had said. read more

“The extension is the basis and not a secondary issue,” Saudi Energy Minister Prince Abdulaziz bin Salman told Saudi-owned Al Arabiya television channel.

“You have to balance addressing the current market situation with maintaining the ability to react to future developments … if everyone wants to raise production then there has to be an extension,” he said, noting uncertainty about the course of the pandemic and output from Iran and Venezuela.

The UAE said on Sunday it backs an output increase from August but suggested deferring to another meeting the decision on extending the supply pact. It said baseline production references – the level from which any cuts are calculated – should be reviewed for any extension. read more

The standoff could delay plans to pump more oil through to the end of the year to cool oil prices.

“Big efforts were made over the past 14 months that provided fantastic results and it would be a shame not to maintain those achievements. … Some compromise and some rationality is what will save us,” the Saudi energy minister said.

“We are looking for a way to balance the interests of producer and consumer countries and for market stability in general, especially when shortages are expected due to the decrease in stockpiles,” he added.

Responding to oil demand destruction caused by the COVID-19 pandemic, OPEC+ agreed last year to cut output by almost 10 million bpd from May 2020, with plans to phase out the curbs by the end of April 2022. Cuts now stand at about 5.8 million bpd.

OPEC+ sources said the UAE contended its baseline was originally set too low, but was ready to tolerate if the deal ended in April 2022. The UAE has ambitious production plans and has invested billions of dollars to boost capacity.

Prince Abdulaziz, who stressed Riyadh’s “sacrifice” in making voluntary cuts, said no country should use a single month as a baseline reference, adding there was a mechanism to file objections and that “selectivity is difficult”.

The regional alliance that saw Saudi Arabia and the UAE join forces to project power in the Middle East and beyond — coordinating use of financial clout and, in Yemen, military force — has loosened as national interests came to the fore.

Abu Dhabi extricated itself from the Yemen war in 2019, saddling Riyadh. Saudi Arabia this year took the lead to end a row with Qatar despite reluctance from its Arab allies.

The kingdom has also moved to challenge the UAE’s dominance as the region’s business and tourism hub as Riyadh vies for foreign capital to diversify its economy away from oil.

Reporting by Marwa Rashad in London, Ghaida Ghantous in Dubai and Alaa Swilam in Cairo; Writing by Ghaida Ghantous; Editing by Hugh Lawson, Peter Cooney and Daniel Wallis

Our Standards: The Thomson Reuters Trust Principles.

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