2025-10-10 12:12

MOSCOW, Oct 10 (Reuters) - Russia’s Energy Ministry has proposed limiting dividend payouts by electricity companies in order to free up funds for a major infrastructure upgrade, according to a draft law seen by Reuters. The proposed move would apply to all Russian companies involved in electricity generation, transmission, and distribution. The companies currently set their own dividends, and typically borrow to finance investment. But the new law would oblige them to prioritise investment over dividends in the allocation of their profits, an industry source and a source familiar with the drafting process said. Sign up here. "There are large-scale plans for new power generation construction in Russia, and it makes sense to redirect part of the dividends toward these new projects," one of the sources told Reuters. Officials, regulators, and energy companies are exploring new mechanisms to attract investment for energy construction projects through 2042 against a background of high interest rates, limited access to funding, and restrictions on equipment imports because of Western sanctions against Russia. The projects are seen as necessary in order to modernize the power system and prevent potential shortages amid rising electricity demand. Russia plans to build nearly 90 gigawatts of new capacity by 2042, which, along with grid upgrades, is expected to cost around 40 trillion roubles ($492 billion). In 2008, Russia completed the reform of Soviet-era power monopoly RAO UES, splitting it by business type and privatizing most thermal generation companies to attract investment for a first wave of upgrades to the ageing power system. Dispatching and grid operations remained state-controlled, although shares of most grid companies are listed, and many distribution network companies have a large free float and pay dividends. The largest investors in the sector — grid operator Rosseti, Rushydro, and companies in the Gazprom Energoholding group — in practice pay little to no dividends. InterRAO, the sole operator for Russia's electricity imports and exports, pays out 25% of its profits in dividends, while some retail and grid companies also make payouts to shareholders. Dmitry Bulgakov, an analyst at investment company BCS, said the proposed change appeared unfriendly to non-state shareholders, particularly minority shareholders. "Refusing to pay dividends or limiting the ability to pay them is a negative for companies in the sector. We are not changing our valuation or outlook on the stocks for now, but we will monitor developments," he said. ($1 = 81.2500 roubles) https://www.reuters.com/sustainability/boards-policy-regulation/russian-draft-law-would-limit-power-firms-dividends-make-them-invest-more-2025-10-10/

2025-10-10 12:07

US sanctions an oil terminal in Shandong for Iranian oil trade The sanctioned terminal handles one-fifth of Sinopec crude imports - sources Sinopec may use alternatives to supply at least two major subsidiary refineries - sources Spot VLCC freight rates rise on logistics disruption concerns SINGAPORE, Oct 10 (Reuters) - The latest U.S. sanctions on Iranian petroleum exports deal a blow to Chinese refining giant Sinopec by targeting a terminal through which the state major handles one-fifth of its crude oil imports, industry executives and analysts said. The sanctions announced on Thursday further complicate U.S.-China relations, coming ahead of planned talks between Presidents Donald Trump and Xi Jinping later this month. Sign up here. The move follows China's decision to tighten controls on rare earth exports and reflects Washington's continued efforts to restrict Iran’s oil trade with its largest customer. Rizhao Shihua Crude Oil Terminal Co. Ltd, half-owned by a Sinopec logistics unit, was among the entities listed by the U.S. Treasury in a round of sanctions that also includes ships transporting Iranian crude oil and liquefied petroleum gas, as well as an independent Chinese refinery. Rizhao Shihua terminal, in the Shandong province city of Lanshan, was designated for receiving Iranian oil on board sanctioned vessels, the U.S. said. KEY CRUDE HUB UNDER SCRUTINY The terminal, which runs three berths that can service VLCCs, very large crude carriers, is 50%-owned by Sinopec Kantons Holding (0934.HK) , opens new tab, a Sinopec-controlled logistics operator, while the remainder is held by local-government-backed Shandong Port Group's Rizhao Port, according to Chinese business portal Qichacha. The majority of crude oil passing through the terminal is handled by Sinopec (600028.SS) , opens new tab, according to tanker tracker Vortexa and two industry executives familiar with the port. Sinopec has steered clear of buying Iranian oil, traders and analysts have said. A Sinopec spokesperson did not immediately comment. Calls to Shandong Port Group and Rizhao Port went unanswered and Sinopec Kantons did not immediately respond to a request for comment. The latest measures bring to five the number of sanctioned oil import terminals in the refining hub of Shandong, accounting for half of the province's capacity to handle VLCCs that carry 2 million barrels of oil each. VESSELS MAY SEEK ALTERNATIVE PORTS Shandong, where independent Chinese refiners are clustered, is the largest destination for oil shipments from sanctions-hit Iran, Venezuela and Russia. "Compared to the previous round of sanctions on Chinese terminals, the impact could be larger," said Samuel Kong, senior analyst at FGE, which estimates that only 10-20% of the oil imported at Rizhao is from sanctioned sources. "In the near term, we could see disruptions to discharges around Rizhao, and vessels carrying non-sanctioned barrels might seek alternative ports in Shandong to unload their cargoes." Spot VLCC freight rates for the Mideast-China route gained 3% on Friday, several shipping sources said, buoyed by concerns of congestion or discharge delays resulting from sanctions. Last year, Sinopec imported about 804,000 barrels per day via the Rizhao Shihua terminal, 20% of its total imports, according to Vortexa and one of the industry executives. To avoid using the terminal, Sinopec would be forced to re-direct shipments to other facilities to supply at least two major subsidiary refineries, Sinopec Luoyang Petrochemical in Henan province and Sinopec Yangzi Petrochemical in Jiangsu province. Both plants are connected to the Rizhao terminal via pipelines, the two executives said. These two plants have a combined crude processing capacity of 420,000 bpd. Rizhao terminal indirectly serves several smaller Sinopec refineries along the Yangtze River via pipelines, said a third industry official familiar with Sinopec's refining system. As a workaround, Sinopec may ramp up imports at Ningbo or Qingdao port, or raise throughput at other nearby plants to compensate for possible production cuts at Luoyang and Yangzi, said a second executive, who is close to Sinopec. https://www.reuters.com/business/energy/latest-us-sanctions-iranian-oil-deal-blow-chinas-sinopec-2025-10-10/

2025-10-10 11:48

WARSAW, Oct 10 (Reuters) - Generators, extra electricity supplies and an LNG terminal are at Ukraine's disposal, Polish foreign minister Radoslaw Sikorski said on Friday, as Russia continues to attack Kyiv's energy infrastructure. Moscow has intensified its assaults in recent weeks. Early on Friday, large parts of Kyiv were plunged into darkness and around 600,000 households were temporarily without power across Ukraine after Russian strikes. Sign up here. Sikorski, visiting Lviv in western Ukraine, said Poland was discussing how to support its eastern neighbour. "Generators, extra electricity supplies, accelerated construction of power connections between Ukraine and Poland, and of course, our LNG terminal in Swinoujscie is at your disposal," he said during a press conference with his Ukrainian counterpart. "This is another escalation, because we know why it's being carried out. It's meant to intimidate people ahead of winter," he added. In August, Polish refiner Orlen (PKN.WA) , opens new tab said it aimed to keep supplying 100 million cubic metres (mcm) of gas every month to Ukraine after having already delivered 430 mcm this year. The liquefied fuel is imported from the United States to the terminal in Swinoujscie and shipped across Poland to Ukraine. https://www.reuters.com/business/energy/poland-offers-help-ukraine-reels-russian-attacks-energy-infrastructure-2025-10-10/

2025-10-10 11:42

GABORONE, Oct 10 (Reuters) - Botswana has enforced a new rule requiring mining companies to sell a 24% stake in new concessions to local investors if the government chooses not to buy the stake, its mines ministry said on Friday. The rule was proposed last year as part of draft legislation, but the government had not said when it would take effect. Sign up here. The Mines and Minerals Act previously gave Botswana's government the right to buy a 15% shareholding in any mining concession upon being licensed, with an option for a higher stake in diamond projects. The Southern African country is the world's top diamond producer by value and an emerging copper mining hotspot. The Ministry of Minerals and Energy said in a statement that the rule requiring 24% local ownership in mining projects had entered into force on October 1. As well as increasing local ownership of the country's mineral wealth, the law aims to promote local value-adding activities and ensure mining companies establish environmental rehabilitation funds. When the amendment to the Mines and Minerals Act was being debated in parliament, the former mines minister said local investors could buy stakes in concessions with the help of domestic pension funds. https://www.reuters.com/world/africa/botswana-enforces-new-24-local-ownership-rule-mines-2025-10-10/

2025-10-10 11:38

LONDON, Oct 10 (Reuters) - The pound fell to two-month lows on Friday, set for its biggest weekly fall since a rout in UK bonds in January, largely driven by a resurgent dollar, which has vaulted higher as political crisis unfolded in France and Japan, in particular. Sterling has lost 1.4% against the dollar this week, the most on a weekly basis since a 1.8% drop in early January, when a swell of concern about Britain's long-term finances unleashed a sell-off in gilts and the pound itself. Sign up here. The pound was last down 0.2% on the day at $1.32875. It was also a touch weaker against the euro , which rose 0.2% to 87.11 pence. The single currency, which has been weighed down by political paralysis in France, has barely made any headway against the pound this week, while sinking 1.4% against the dollar . A survey of recruitment companies on Friday showed that Britain's hiring market remains sluggish and pay is stagnating, as employers fret about possible further tax increases in finance minister Rachel Reeves' November budget. "A stabilising UK jobs market could offer that near-term counterweight to sterling's bearish momentum," George Vessey, Lead FX & Macro Strategist at Convera, said. Reeves is widely expected to increase taxes to keep public finances on track to meet her fiscal targets. Investors are becoming increasingly concerned about the stability of the government's finances and this is materialising as weakness in both sterling and gilts. The yield on the benchmark 10-year gilt has risen 2 basis points so far this month, compared with a 4 bp decline in both U.S. and German yields, which in theory, should support the pound. "We continue to expect sterling to struggle while investors await clearer signals on UK fiscal policy and the timing of rate cuts," Monex strategists said in a note. https://www.reuters.com/world/uk/sterling-skids-two-month-lows-dollar-shines-2025-10-10/

2025-10-10 11:02

PARIS, Oct 10 (Reuters) - French authorities placed its Caribbean department of Guadeloupe on red alert, its most serious warning, on Friday, as Tropical Storm Jerry passed close to the islands, while Martinique to the south remains on orange alert. "After the torrential rains which hit the east and north of the archipelago from late evening onwards, a spiral band, also generating very heavy, persistent and stormy rain, is setting in over the archipelago," Meteo-France said in a statement. Sign up here. Improvement is expected from midday local time on Friday, it added. Local officials did not provide details on whether the storm had caused any damage or led to any victims. https://www.reuters.com/business/environment/france-places-guadeloupe-red-alert-due-tropical-storm-jerry-2025-10-10/