UKRAINE WRAP | Ferrari suspends production of cars for Russian market

March 08 2022 - 19:37

Ukraine and Russia: what you need to know right now

President Joe Biden announced on Tuesday a US ban on Russian oil and other energy imports, ramping up pressure on Moscow in retaliation for its invasion of Ukraine.

Ukraine's government accused Russia of shelling a humanitarian corridor it had promised to open to let residents flee the besieged port of Mariupol.

Biden said “Putin's war” is hurting American families at the gas pump and prices will rise further but says the moves are necessary and should encourage the shift towards cleaner energy.

March 08 2022 - 17:37

VW stops orders for some plug-in hybrids amid supply crunch

Volkswagen will stop taking orders for several plug-in hybrid models from Wednesday, the German car maker said, as Russia's invasion of Ukraine destabilises its supply chain just as chip troubles were beginning to ease.

Orders for plug-in hybrid versions of the Golf, Tiguan, Passat, Arteon and Touareg models will be halted in Germany until further notice and delivery of already placed orders may not happen this year, the company said on Tuesday.

“Our plug-in hybrids are highly sought after, leading to high order backlogs we are working through,” a spokesperson said. “Due to this demand and limitations in supply of semiconductors, we cannot take any further orders for plug-in hybrid electric vehicle models in Germany,” the spokesperson said, adding the crisis in Ukraine also played a part.

March 08 2022 - 17:37

Ferrari suspends production of cars for Russian market

Luxury car maker Ferrari said on Tuesday it would suspend exports to Russia because of Moscow's invasion of Ukraine.

"Given the ongoing situation, Ferrari has taken the decision to suspend the production of vehicles for the Russian market until further notice," the Italian company said.

"We continue to monitor the situation closely and will always respect all rules, regulations and sanctions," it said.

March 08 2022 - 15:07

LISTEN | Ukraine-Russia: 'SA’s fence-sitting reflects a lack of principles'

In his weekly newsletter on Monday, President Cyril Ramaphosa said the Russia-Ukraine conflict should be resolved through mediation. This after the country abstained from voting on a  UN resolution reprimanding Russia last week and appearing conflicted on what stance to take. 

Head of politics and international relations at Rhodes University, Dr Siphokazi Magadla, said it's not a matter of supporting one country over the other but supporting the country’s principles.

March 08 2022 - 14:51

World's oldest competitive tennis player faces Russian bombing in Ukraine

When the world's oldest tennis player took on Rafa Nadal, he said his dreams had come true. Now, the 97-year-old Ukrainian athlete says he is living through his worst nightmare as Russian forces bomb his home city of Kharkiv.

March 08 2022 - 14:30

JSE-listed retailers expect ‘far tougher inflationary environment’ due to Russia-Ukraine conflict

With the Russia-Ukraine conflict expected to bring pricing pressure to bear on commodities such as wheat and edible oils, JSE-listed SA retailers such as Shoprite and Walmart-owned Massmart are steeling themselves for a far tougher inflationary environment.

As it is retailers are already dealing with rising fuel prices, with the oil price rocketing up to trade in the region of $130 (about R1,988) per barrel.

Speaking during an investor conference call on Tuesday after the release of results of the 26 weeks ended January 2, Shoprite CEO Pieter Engelbrecht said “inflation is always a question”, adding “none of us would have expected the Ukraine-Russia war” which is anticipated to have an effect on commodities such as fuel, wheat and edible oils.

March 08 2022 - 14:30

Medical supplies, field hospital set up in Lviv

The World Health Organization prepared aid supplies for distribution, while an emergency medical team set up a field hospital in the western Ukrainian city of Lviv

March 08 2022 - 14:05

Civilians must be allowed to leave Ukraine, says UN's Bachelet

U.N. human rights chief Michelle Bachelet called for civilians trapped in active hostilities in numerous areas of Ukraine to be able to leave safely

March 08 2022 - 13:52

Eskom bondholders sound alarm as fuel costs surge on Ukraine war

The surge in oil prices is raising alarms for Eskom bondholders, amid fears about increased credit risk. 

The premium investors demand to hold Eskom’s 2028 dollar bonds rather than similar-maturity US Treasuries has widened more than 100 basis points since the beginning of February to 711, a 15-month high. And the cost of insuring the utility’s dollar debt against default for five years jumped 15 basis points this month to the highest since April.

Eskom started rotational power cuts on Monday for the first time in four weeks after breakdowns at multiple generating units. It’s been using diesel-fuelled turbines as an emergency measure and is concerned about cost overruns given the recent spike in crude prices, according to CFO Calib Cassim.

March 08 2022 - 13:47

In Ukraine, 80,000 births expected amid insufficient care

As many as 80,000 births by Ukraine women are expected in the next three months without access to sufficient medical care because of Russia’s military invasion, according to the World Health Organisation (WHO). 

An estimated 1.7-million people, mostly women and children, have been displaced by the war, and as many as 1,000 births a week are anticipated with many mothers lacking proper maternal care and facilities, the WHO said on Tuesday.

March 08 2022 - 13:45

Shell to stop buying Russian oil and gas

Shell will phase out all purchases of Russian oil and gas, with an immediate halt to crude deals on the short-term market, following international opprobrium over its dealings with the country.  

“We are acutely aware our decision last week to purchase a cargo of Russian crude oil” was wrong, the company said on Tuesday.

“Our actions to date have been guided by continuous discussions with governments about the need to disentangle society from Russian energy flows.”

March 08 2022 - 12:38

Thirty buses are en route to collect evacuees from Mariupol, says Ukrainian official

Thirty buses are en route to the besieged Ukrainian city of Mariupol to collect evacuees via a humanitarian corridor to Ukraine-controlled territory, deputy prime minister Iryna Vereshchuk said on television on Tuesday.

There were signs Russian forces were firing in the direction of a route for humanitarian aid, she added, without providing further details.

Reuters

March 08 2022 - 12:24

London marine insurers widen high risk area as Ukraine conflict escalates

London’s marine insurance market has widened the area of waters around the Black Sea and Sea of Azov that it deems high risk, as Russia's invasion of Ukraine intensifies and perils to merchant shipping grow.

Marine insurers said in advisory dated March 7 that the high risk area had been widened to waters close to Romania and Georgia after initially adding Russian and Ukrainian waters in the Black Sea and Sea of Azov in February.

Guidance from the insurance industry's Joint War Committee is watched closely and influences underwriters’ considerations over insurance premiums.

Reuters

March 08 2022 - 11:55

Russia's missile strikes killing civilians - Pentagon

Russia's growing reliance on longer-range strikes on Ukrainian targets is increasing the number of civilian casualties and damage to civilian infrastructure, the Pentagon said

March 08 2022 - 11:25

Russia, Ukraine spar over civilian aid, safety at UN

The Russian and Ukrainian ambassadors to the United Nations hit out at each other at a Security Council meeting called to discuss the worsening humanitarian crisis in Ukraine.

March 08 2022 - 10:39

Will Western banks walk away from Russia?

Banking is an asymmetric business. You make modest amounts of money most of the time and occasionally you suffer extraordinary losses. A small fraction of your assets going bad can trash a material percentage of your earnings.

This is the reality many banks face as they size up their exposure to Russia. European bank stocks, in particular, have suffered steep declines since the invasion in Ukraine began, and the cost of insuring their debt has risen. 

There are four ways US and European banks are exposed.

March 08 2022 - 10:33

High fuel prices from war in Ukraine may hurt the DRC, IMF warns

Higher commodity costs linked to Russia’s invasion of Ukraine risk slowing down the Democratic Republic of the Congo’s (DRC) economic recovery from the coronavirus pandemic, the International Monetary Fund warned.

Crude has soared by almost a third since the start of the war to a 2008 high of more than $126. The surge could squeeze the DRC’s budget for development spending as the government subsidises fuel prices, the IMF said Monday in an e-mailed statement, after a weeklong mission led by Mercedes Vera Martin to evaluate the lender’s loan agreement with the Central African nation.

March 08 2022 - 10:15

European gas futures surge 30% as Russia threatens to cut flows

European gas futures jumped as much as 32% after Russia threatened to cut natural gas supplies to Europe via the existing Nord Stream pipeline.

In a further deterioration relations between Moscow and the European Union, Russia threatened to halt gas flowing along the pipeline to Germany. The warning is part of Russia’s response to international sanctions imposed on the country following its invasion of Ukraine.

No decision has been taken yet, according to Deputy Prime Minister Alexander Novak.

Gas prices surged after climbing as much as 79% on Monday in the most volatile trading conditions markets in Europe have ever seen.

March 08 2022 - 09:30

US may act alone on Russian oil ban

The United States is willing to move ahead with a ban on Russian oil imports without the participation of allies in Europe, two people familiar with the matter said, in light of Russia's invasion of Ukraine

March 08 2022 - 09:20

Ukraine says Russian air strikes sparked oil depot fires

Two fires broke out at oil depots in the Zhytomyr region of Ukraine, with the country's State Emergency Services saying they were caused by Russian air strikes

March 08 2022 - 08:10

Germany to host G7 meeting on Ukraine invasion's impact on food security

Germany will host a virtual meeting of agricultural ministers from G7 countries on Friday to discuss the impact of Russia's invasion of Ukraine on global food security and how to best stabilise food markets, the government said. 

“The provision of foodstuffs in Germany and the European Union is safe but greater shortages can be expected in some countries outside the EU — especially where scarcity already reigns today due to issues like drought,” German Agriculture Minister Cem Oezdemir said in statement.

March 08 2022 - 07:59

Dolly Parton dedicates country music awards show to people of Ukraine

Singer Dolly Parton dedicated the Academy of Country Music Awards show to the people of Ukraine on Monday during a music-filled ceremony that saw Miranda Lambert crowned entertainer of the year.

Taking the stage in a mirrored jumpsuit, Parton made one of two tributes to Ukraine while opening the annual awards ceremony at Allegiant Stadium in Las Vegas. The show was live-streamed on Prime Video for the first time.

"I want us to send our love and hope to our brothers and sisters in Ukraine. Why don't we just dedicate this entire show to them and pray for peace," the 76-year-old country music matriarch said to loud applause.

Brad Tursi of Old Dominion thanked Parton for the dedication as the band accepted their award for group of the year, adding that it felt strange to be celebrating while "people are fighting for their lives.

"The invasion of Ukraine by Russia has caused 1.7 million people to flee and triggered fears of wider conflict in the West.

Miranda Lambert won the night's top award, entertainer of the year, following a year in which she released hit album "The Marfa Tapes" with singer-songwriters Jon Randall and Jack Ingram to critical acclaim.

Lambert accepted her award via live-stream from London, where she is scheduled to perform this week.Other big winners included Morgan Wallen for his best album, "Dangerous," and Jason Aldean and Carrie Underwood for song of the year, "If I Didn't Love You.

"Chris Stapleton was named male artist of the year and Carly Pearce was awarded female artist of the year.Kelly Clarkson performed a stirring version of "I Will Always Love You" in tribute to Parton, who hosted the show alongside Jimmy Allen and Gabby Barrett.

Reuters

March 08 2022 - 07:20

Estee Lauder to suspend all commercial activities in Russia

Estee Lauder Companies Inc said on Monday it had decided to suspend all commercial activities in Russia, including closing all its stores in the country.

The company will also suspend brand sites and shipments to its retailers in Russia, it added. 

Reuters

March 08 2022 - 07:00

'Oil industry is under siege' - OPEC head

OPEC has no control over the events that have led to the run up in global oil prices and there is not enough capacity worldwide to compensate for the loss of Russian supply, OPEC Secretary-General Mohammad Barkindo said

March 08 2022 - 06:20

Fleeing Ukrainian's plea to NATO: 'close the skies'

As a flood of Ukrainian refugees fleeing a Russian invasion pours over the borders into neighboring nations, the people bring with them harrowing stories of hardship.

March 08 2022 - 06:10

Foreign fighters find purpose and cause in Ukraine

Foreign fighters say they volunteered to fight for Ukraine to halt what they view as an unprovoked attack by Russia in a once-in-a-generation showdown between the forces of democracy and dictatorship.

March 08 2022 - 06:00

US seeks to calm ally fears that 'Putin will not stop'

US Secretary of State Antony Blinken sought to reassure Washington's Baltic allies who fear President Vladimir Putin will not stop at Ukraine in trying to redraw the borders of Europe.