KTFA:

Samson:  Al-Kazemi and bin Salman confirm a number of issues concerning Iraq, Saudi Arabia and Iran

26th June, 2022

Prime Minister Mustafa Al-Kazemi met the Crown Prince of Saudi Arabia, Prince Muhammad bin Salman Al Saud, at the start of his official visit to the kingdom, which he arrived earlier yesterday, Saturday.

A statement issued by the Iraqi government stated that during the meeting, they discussed bilateral relations between the two countries, and the importance of developing them in a way that achieves the interests of the peoples of the two countries. The two sides also discussed a number of regional and international issues of common interest, and efforts to consolidate peace and calm in the region.

The statement added that the meeting witnessed an emphasis on strengthening economic integration and inter-regional cooperation in a way that promotes sustainable development in the region, and strengthens bilateral efforts to confront economic crises.

 The two sides stressed the prominent role of Iraq in bringing the views of the region closer and advancing calm efforts and constructive dialogues forward, according to the statement.

The Saudi royal court had announced earlier that US President Joe Biden would visit Saudi Arabia in mid-July to meet with Crown Prince Mohammed bin Salman, and the visit schedule includes a meeting with Iraqi Prime Minister Mustafa Al-Kazemi, Egyptian President Abdel Fattah Al-Sisi and Jordan's King Abdullah Bin Al Hussein.

And on Friday, a number of members of the Iraqi parliament collected signatures asking Al-Kazemi not to sign any agreement or treaty while attending the Saudi meeting in the presence of the American president.

And Baghdad embraced negotiations between Iran and Saudi Arabia with the aim of calming the two sides, reopening embassies between Riyadh and Tehran, and ending regional crises, especially in Yemen.

It is noteworthy that Riyadh severed relations with Tehran in 2016 after Iranian protesters stormed the Saudi embassy in the Iranian capital to protest the execution of a Shiite cleric in Saudi Arabia.  LINK

**************

Samson:  In the "Key Card" case... Integrity announces the return of about 14 billion dinars to the state treasury

26th June, 2022

The Investigation Department of the Federal Integrity Commission announced on Sunday that billions of dinars were returned to the state treasury as a result of the investigation into the case of the former delegated director of the global smart card company "Key Card".

 A statement of integrity was received by Shafak News Agency; Its investigative and audit procedures taken in the criminal case of the accused whose fate has been postponed (the authorized director of the company) in the case of acquiring the profits of Al-Rasheed Bank arising from the bank's contribution to the capital of the International Smart Card Company, led to the payment of the amount of the bank's profits.

The department added that an amount of (13,629,416,118) billion dinars was transferred to the account of Al-Rasheed Bank, pointing out that this amount represents the bank's contribution to the company.

She added that the statements of the legal representative of Al-Rasheed Bank, who requested the complaint against those in charge of the company and the statements of the defendants, were recorded, in addition to linking the minutes of the Integrity Commission’s investigation and the external audit report in it, and the agreement concluded between the bank and the company, noting that Al-Rasheed Bank informed the Authority that it had paid the amount of damage to its account from before the International Smart Card Company.  LINK

***************

Samson:  Britain, America, Japan and Canada ban gold imports from Russia

26th June, 2022

The British government said on Sunday that it, along with the United States, Japan and Canada, would ban any new imports of Russian gold as part of measures aimed at punishing Moscow for its invasion of Ukraine.

The ban is due to come into effect soon and will apply to newly mined gold. The British government stated that this would not affect the gold of Russian origin, which was previously exported from Russia.

An informed source told Reuters on Saturday that US President Joe Biden and his counterparts in the Group of Seven will agree to ban the import of new gold from Russia, while expanding the scope of sanctions against Moscow, due to its war on Ukraine.

According to the source, the US Treasury will issue a decision to ban the import of new gold into the United States on Tuesday, in a move aimed at further isolating Russia from the global economy by preventing its participation in the gold market.

Russia produces about 10% of the gold mined worldwide each year. Its gold holdings have tripled since it annexed Crimea in 2014. The ban on Russian gold imports will be the latest in a series of sanctions targeting Moscow since its February 24 invasion of Ukraine, which killed or injured thousands. LINK

*************

Samson:  Putin is on his first foreign tour since the start of the war.. These are his destinations

06/26/2022 19:53:24

Russian President Vladimir Putin plans to visit two Soviet republics this week, in his first known trip abroad since the start of the Russian military operation in Ukraine in late February.

 Russian state television reported that Putin will visit Tajikistan and Turkmenistan, and then hold talks with Indonesian President Joko Widodo in Moscow. In Dushanbe, the capital of Tajikistan, Putin will meet President Emomali Rahmon, a close ally of Moscow and the most surviving president of a former Soviet republic.

It is expected that Putin will attend, according to a Russian television correspondent, in Ashgabat, the capital of Turkmenistan, a summit that includes the leaders of the countries bordering the Caspian Sea, namely Azerbaijan, Kazakhstan, Iran and Turkmenistan.

Putin's last known trip abroad was a visit to Beijing in early February, where he and his Chinese counterpart Xi Jinping unveiled a "borderless" friendship treaty hours before they attended the opening of the Winter Olympics in the Chinese capital. The Russian military operation in Ukraine, which began on February 24, has killed thousands of people, displaced millions more from their homes and prompted the West to impose harsh financial sanctions on Moscow.

 The Russian president says the sanctions will build stronger trade ties with other countries such as China, India and Iran.   LINK

Samson:  Russia on brink of default as debt deadline looms

26th June, 2022

Russia is on the brink of its first debt default since 1998 as the Sunday deadline to make a $100m interest payment seems certain to be missed.

Russia has the money and is willing to pay, but sanctions make it impossible to get the payments to international creditors.

The Kremlin has been determined to avoid a first default since 1998, and a major blow to the nation's prestige. The Russian finance minister branded the situation "a farce".

Russia has seemed on an inevitable path to default since sanctions were first imposed by the US and EU following the invasion of Ukraine.These restricted the country's access to the international banking networks which would process payments from Russia to investors around the world. The Russian government has said it wants to make all of its payments on time, and so far it has succeeded. About $40bn of Russia's debts are denominated in dollars or euros, with around half held outside the country.

A default would be the first since 1998, at the chaotic end of Boris Yeltsin's regime.

The $100m interest payment was due on 27 May. Russia says the money was sent to Euroclear, a bank which would then distribute the payment to investors.

But that payment has been stuck there, according to Bloomberg News, and creditors have not received it. "They have not got it," says Jay Auslander, a US lawyer who has worked on many government debt cases. "And the overwhelming probability is they're not going to get it." If this money has not arrived within 30 days of the due date, that is, Sunday evening, that will widely be considered a default.

 Euroclear wouldn't say if the payment had been blocked, but said it adheres to all sanctions.

Default appears inevitable

Default seemed inevitable when the US Treasury decided not to renew the special exemption in sanctions rules allowing investors to receive interest payments from Russia, which expired on 25 May.

The Kremlin now appears to have accepted this inevitability too, decreeing on 23 June stating that all future debt payments would be made in roubles through a Russian bank, the National Settlements Depository, even when contracts state they should be in dollars or other international currencies.

Finance Minister Anton Siluanov admitted foreign investors would "not be able to receive" the payments according to the RIA Novosti news agency.

This was for two reasons, he said. "The first is that foreign infrastructure - correspondent banks, settlement and clearing systems, depositories - ares prohibited from conducting any operations related to Russia. The second is that foreign investors are expressly prohibited from receiving payments from us."

Because Russia wants to pay and has plenty of money to do it, he denied that this amounts to a genuine default, which usually occur when governments refuse to pay, or their economies are so weak that they cannot find the money. "Everyone in the know understands that this is not a default at all," RIA Novosti quoted him. "This whole situation looks like a farce." It's not clear how a default would be officially declared.

The credit ratings agencies, which assess the creditworthiness of borrowers, would normally play the role of officially declaring a default, but they are banned from covering Russia by EU sanctions. And the Credit Derivatives Determinations Committee, which determines whether payments have been missed and investors can claim on insurance-like contracts called Credit Default Swaps, has already ruled that Russia failed to pay, after it didn't pay around $2m interest due on a late payment in May.

Alternatively, the creditors themselves could declare a default, and request that Russia pays the entire value of the debts back right away. Other creditors to Russia could also claim immediate repayments on their debts, under so-called cross-default provisions, Mr Auslander says. If Russia fails to pay, they could go to court to try to get their money.

Though default would be a symbolic blow, it would have few immediate practical consequences for Russia. Defaulting nations usually find it impossible to borrow any more money, but Russia is already effectively barred from borrowing in Western markets by sanctions. In any case, it is reportedly earning around a billion dollars a day from fossil fuel exports, and Siluanov said in April the country has no plans to borrow more.  LINK