EU adopts its latest package of sanctions against Russia

In light of Russia’s escalating war of aggression against Ukraine and the illegal annexation of Ukraine's Donetsk, Luhansk, Zaporizhzhia and Kherson regions, the Council decided today to impose a new package of economic and individual sanctions against Russia, said Consilium.europa.

The agreed package includes a series of biting measures intended to reinforce pressure on the Russian government and economy, weaken Russia's military capabilities, and make the Kremlin pay for the recent escalation.

This new sanctions package against Russia is proof of our determination to stop Putin’s war machine and respond to his latest escalation with fake “referenda” and illegal annexation of Ukrainian territories. We are further hitting Russia’s war economy, limiting Russia‘s import/export capacities and are on the fast-track to liberate ourselves from Russian energy dependence. We are also targeting those responsible for the illegal annexation of Ukrainian territories. The EU will stand by Ukraine for as long as it takes.

The package agreed today introduces into the EU legislation the basis to put in place a price cap related to the maritime transport of Russian oil for third countries and further restrictions on the maritime transport of crude oil and petroleum products to third countries.

Concretely, the combination of these measures works as follows. It will be prohibited to provide maritime transport and to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries of crude oil (as of December 2022) or petroleum products (as of February 2023) which originate in or are exported from Russia. The price cap derogation would allow the provision of the transport and these services if the oil or petroleum products are purchased at or below a pre-established price cap. The new prohibition for EU vessels to provide maritime transport for such products to third countries will apply as of the date in which the Council will unanimously decide to introduce the price cap. The price cap will drastically reduce the revenues Russia earns from oil after its illegal war on Ukraine has inflated global energy prices. The oil price cap can also serve to stabilise global energy prices.

As concerns trade, the EU is extending the import ban on steel products that either originate in Russia or are exported from Russia. Further import restrictions are also imposed on wood pulp and paper, cigarettes, plastics and cosmetics as well as elements used in the jewellery industry such as stones and precious metals, that altogether generate significant revenues for Russia. The sale, supply transfer or export of additional goods used in the aviation sector will also be restricted.

We remind, The United States imposed sanctions on companies it accused of involvement in Iran's petrochemical and petroleum trade, including five based in China, pressuring Tehran as it seeks to revive the 2015 Iran nuclear deal.
The Iranian mission to the United Nations in New York did not immediately respond to a request for comment. U.S. Secretary of State Antony Blinken said in a separate statement that the State Department designated two China-based companies, Zhonggu Storage and Transportation Co Ltd and WS Shipping Co Ltd.
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DKSH creates a scalable platform with the acquisition of Terra Firma for growing its presence in Performance Materials in North America, said the company.

Terra Firma has national coverage in the USA and Canada and is representing premier suppliers in its core segments of Coatings, Adhesives, Sealants, and Elastomers (CASE), plastics and construction, agrochemicals, health and nutrition, as well as personal care.

The addition of a strong player in the North American Industrial speciality chemicals distribution sector is a major contribution to DKSH's Performance Materials business and is complementary to DKSH's existing speciality industrial business globally.

Terra Firma currently operates with around 100 highly skilled professionals across the region and has offices in Los Angeles, Dallas, Baltimore, and Toronto. Terra Firma expects net sales of around $240 M in 2022. The transaction, which is expected to close towards the end of year, will be valued at USD360 M enterprise value.

DKSH will acquire at least 80% of Terra Firma with the remainder held by the company's existing management team. The transaction is EPS-accretive and will be financed via debt and cash.

As per MRC, specialty chemicals producer Elementis (London, UK) says it has entered an exclusive distribution agreement with DKSH (Zurich, Switzerland), a holding company specializing in market expansion services, for personal care applications in the French market. The two companies have a 40-year relationship and, under the terms of the new agreement, DKSH will provide sales and marketing, distribution, logistics, and customer management for Elementis’s entire range of specialty ingredients for personal care products.
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Huhtamaki, a Finnish packaging company, reported increases in both sales and profits in 1H 2022, said the company.

In 1H 2022, the company's sales increased by 31% to about EUR 2.2 bn while its profitability increased by 28% to around EUR 200 M. The flexible packaging segment's sales have increased by 43% to EUR 768 M. In North America, sales increased by 28% to EUR 712 M, while its food service business sin Europe, Asia and Oceania's (EAO) sales increased by 23% to EUR 543 M.

EAO's profit dropped by 6% while the flexible packaging segment's profit dropped by nearly 3%. North American profit has declined by 0.6%.

We remind, Huhtamaki and Stora Enso, both based in Finland but with global operations, say they have joined forces to launch a paper cup recycling initiative called The Cup Collective. The EU has set recycling target for paper and board packaging of 85 percent by 2030, say the two companies. Stora Enso is a paper and board producer that recently purchased a containerboard mill in the Netherlands. Huhtamaki makes packaging products with molded pulp and other materials, some with recovered paper content.

We remind, Huhtamaki has decided to initiate the process to divest its operations in Russia. This follows an earlier decision to stop all investments in Russia at the outbreak of the invasion of Ukraine. Huhtamaki considers that the current evolution of the situation and the long-term outlook in Russia will prevent the realization of its growth strategy and long-term ambitions in the country. Huhtamaki will continue to prioritize investments that capture the significant growth opportunities in the rest of the world, in line with its global ambitions and 2030 Strategy.
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BASF introduces the novel X3DTM technology, a new additive manufacturing technology for catalysts based on 3D printing, said the company.

Catalysts produced with this technology feature an open structure, resulting in a reduction of the pressure drop across the reactor and a high surface area, significantly improving the catalysts’ performance.

BASF has capabilities to supply commercial quantities. The technology offers a greater freedom of catalyst design compared to conventional production technologies. It brings catalysts’ performance to the next level and helps to customize catalysts to customers’ specific conditions and needs by designing infill pattern, fiber diameter and orientation. Customers can benefit from an increased reactor output, higher product quality and lower energy consumption. The novel catalysts are mechanically robust and proven in commercial plant operation externally and for several years in BASF.

BASF can apply the technology to a wide variety of existing catalytic materials, including base or precious metal catalysts as well as carrier materials. BASF’s Sulfuric Acid catalysts O4-111 X3D and O4-115 X3D are the first catalysts produced with the new technology and are used in industrial plants.

"With this technology, we are able to provide catalysts that are tailored to our customers’ needs to help significantly boost their plant performance while reducing energy consumption and increasing sustainability at the customer level”, said Detlef Ruff, Senior Vice President, Process Catalysts at BASF. “BASF’s technical service team will work with customers to identify the best catalytic technology for their individual projects,” said Chris Wai, Vice President, Global Chemical Market Catalysts at BASF.

BASF and Hannong Chemicals are planning to establish a production joint venture “BASF Hannong Chemicals Solutions Ltd.” BASF will hold 51% and Hannong Chemicals 49% shareholding, in the proposed joint venture. The joint venture will combine BASF’s strong technology and product innovation capabilities with Hannong’s highly efficient production capabilities to supply best-in-class non-ionic surfactant products to BASF and Hannong Chemicals, each with their own sales and distribution network, enabling the two companies to cater for increasing market demand.

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Petrobras is set to present its new strategic plan for the coming years in November, an executive for Brazil's state-run company said on Wednesday, hinting it should be "consistent" with the current focus on offshore oil formation known as pre-salt, said Reuters.

During an oil and gas event in Rio de Janeiro, Petrobras' executive director of governance, Salvador Dahan, said that the company will continue "what it has been doing" in pre-salt exploration and production.

"The plan continues to address our focus in Brazil and with development in the pre-salt, with a lot of investment in exploration and production, but also in the downstream (logistics segments)," he said.

Part of the future investment will also be focused in areas such as decarbonization and renewable energies, Dahan added without giving further details.

The executive did not disclosure the dollar value for the new plan. Last year, the company's plan stood at $68 B over five years, almost 25% more than the previous program.

We remind, India's state-run Bharat Petroleum Corp said it had signed a preliminary agreement with Brazil's national oil company Petrobras to help it diversify its crude oil sourcing. The MoU will help the company to explore sourcing of crude oil through long term contracts "especially considering the current geopolitical situations," it added.
India recently allowed BPCL to invest USD1.6 B for developing an ultra-deep water hydrocarbon block in Brazil. The block is majority owned and operated by Petrobras.

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