Iran: Rouhani calls on Muslim states to end US dollar domination

Iranian President Hassan Rouhani pointed to the potentials of Islamic countries in different economic fields, noting that measures should be adopted to put an end to the domination of the US dollar.

“The Islamic world should adopt measures to set itself free from the domination of America’s financial system and US dollar,” Rouhani told the Kuala Lumpur summit on Thursday in Malaysia.

He went on to say that Islamic countries complement each other and that signing banking cooperation and creating various financial mechanisms can lead to the mentioned aim.

Read more at: Rouhani calls on Muslim states to end US dollar domination - Mehr News Agency

Nord Stream: Germany, EU decry US Nord Stream sanctions

Berlin and Brussels have criticized White House sanctions against companies involved in building a Russian natural gas pipeline to Germany. They accused President Trump of interfering in national and bloc sovereignty.

Note EU- Digest: who made the US the master of all living things ?

Read more at:
https://www.dw.com/en/germany-eu-decry-us-nord-stream-sanctions/a-51759319

Russia-Germany relations: Kremlin: US sanctions won′t stop Nord Stream 2 gas pipeline to Germany

Russia has slammed US sanctions over the mammoth gas pipeline to Germany as illegal and an example of "unfair competition." The measures, which still need Donald Trump's approval, target firms involved in the project.

Read more at:

https://www.dw.com/en/kremlin-us-sanctions-wont-stop-nord-stream-2-gas-pipeline-to-germany/a-51720728

US-Saudi Relations: U.S. sanctions 17 for role in hideous murder of Saudi journalist Khashoggi - a US smokescreen to protect business interests with Saudis?

Khashoggi murder:  Business as usual between US and Saudi Arabia

The U.S. Treasury will announce today 11/15/2018 sanctions on 17 Saudis for their role in the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul, according to a source familiar with the administration's plans.

Those to be sanctioned include Saud al-Qahtani, a former top aide to Crown Prince Mohammed bin Salman, as well as the Saudi Consul General Mohammed Alotaibi, the source said.

The sanctions will be implemented under the Global Magnitsky Act, which imposes sanctions over human rights abuses, the source said.

Among others facing sanctions are Maher Mutreb, an aide to Qahtani who has appeared in photographs with Prince Mohammed on official visits this year to the United States and Europe.

Note EU-Digest: The US sanctions announced by the Trump Administration are an indication the US Administration "has accepted the confusing explanations and statements" about the hideous murder of Saudi journalist Khashoggi by the Saudi Government in the Saudi Istanbul consulate", and as such concludes, "case closed and business as usual",  between the US and Saudi Arabia . 

U.S. sanctions 17 for role in killing of Saudi journalist Khashog

USA: Trump says: Saudi Explanation for journalist's death is credible The US president also says he doesn't want it to impact arms sales to Saudi Arabia. 'Because it means 600,000 jobs' - by W.G. Dunlop

US President Donald Trump said Friday he found Saudi Arabia's explanation about the death of dissident journalist Jamal Khashoggi credible and termed it an "important first step."

Trump added if the US takes action, he does not want it to impact arms sales to the kingdom, which said Khashoggi was killed in a fight at its Istanbul consulate. Turkish officials pointed to a state-sanctioned hit.

"I do, I do," Trump said when asked if he found the Saudis' explanation credible, adding: "It's early, we haven't finished our review or investigation, but... I think it's a very important first step."

"I would prefer, if there is going to be some form of sanction or what we may determine to do, if anything... that we don't use as retribution canceling $110 billion worth of work, which means 600,000 jobs," he said during a visit to Arizona, referring to a major arms deal with the kingdom.

Trump has sent mixed messages about Khashoggi for days, vowing a severe response but also saying that the United States wants to preserve its close relationship with the conservative kingdom.

Members of the US Congress were far harsher in the wake of the kingdom's admission that Khashoggi was dead.

Read More: Trump: Explanation for journalist's death is credible The president says if the U.S. did take action over Jamal Khashoggi's death, he doesn't want it to impact arms sales to Saudi Arabia. 'Means 600,000 jobs' »

Turkey-US Relations: Trump White House sanctions Turkey over pastor Andrew Brunson - by Alex Ward

President Donald Trump announced that he would sanction Turkey for detaining an American pastor — a move that could further imperil the already tense relationship between Washington and Ankara.

The president is “not happy with Turkey’s decision” to continue to detain the man who has been held for nearly two years, White House press secretary Sarah Sanders said on Wednesday. Trump ordered sanctions that target two top Turkish officials — the minister of justice and minister of interior — for their role in the issue.

Turkey, a NATO ally, responded by calling the sanctions “unacceptable” and promised to retaliate. Turkish Foreign Minister Mevlüt Çavuşoğlu tweeted after the announcement that the US can’t “obtain unlawful requests” in this way. The Turkish lira, meanwhile, has dropped in anticipation of the sanctions.

The pastor in question, Andrew Brunson, is originally from North Carolina but has lived in Turkey for more than 20 years. Turkish authorities detained him on October 7, 2016, claiming that he was a spy and had connections to a terrorist group. The US expected him to be released on July 18, but on Wednesday, Turkish officials moved Brunson due to health concerns and kept him under house arrest.

The charges he’s facing mean he could spend the rest of his life in prison.

Trump has repeatedly called Brunson a “great Christian” and expressed his displeasure over the pastor’s detainment for months, but hadn’t taken significant action before Thursday. It’s unclear, though, why Trump decided to escalate this issue now, or what the sanctions he promised to impose might look like.

On July 26, Vice President Mike Pence had noted the possibility of sanctions during a speech at a conference on religious freedom. After the speech, Trump tweeted that he would follow through on the threat.

Read more: Trump White House sanctions Turkey over pastor Andrew

Ukraine - Russia: EU leaders extend Russian sanctions over Ukraine for six more months

US sanctions against Russia are likely to figure large when US President Donald Trump meets,,his Russian counterpart Vladimir Putin in Helsinki on July 16.

Evidence of Russian meddling in the US 2016 election led the US to impose sanctions on Russia in April, but Trump and some European leaders have questioned if sanctions against Russia have the desired effect.

A spokeswoman from the German economy ministry said on Friday that the ministry had received a commitment from the US that any new US sanctions would not affect Russian pipelines, a reference to the controversial Nordstream II pipeline linking Russia and Germany.

Read more: EU leaders extend Russian sanctions over Ukraine for six more months | News | DW | 29.06.2018

EU-Iran Relations: Europe’s governments look to bypass Trump to save Iranian nuclear deal - by Julian Borger

European governments fear a concerted effort to persuade Donald Trump to continue to certify the Iran nuclear deal may have failed and are now looking for other ways to try to salvage the two year-old agreement.

European lobbying efforts are now focused on Congress which will have two months to decide – in the absence of Trump’s endorsement of the 2015 deal – whether to reimpose nuclear-related sanctions.

Fresh sanctions could in turn trigger Iranian withdrawal and a ramping up of its now mostly latent nuclear programme, taking the Middle East back to the brink of another major conflict.

When Trump threatened to withhold certification by a congressional deadline of 15 October, the UN general assembly in mid-September was seen by the European signatories of the agreement – the UK, France and Germany – as the last best chance to convince Trump of the dangers of destroying it.

But according to the accounts of several diplomats involved, the effort got nowhere.

Angela Merkel, in the final stages of an election campaign, could not attend, so it was left to Theresa May and Emmanuel Macron to use their meetings with the US president in New York to make a personal plea to keep the deal alive.

The French president made no headway. To his consternation, Trump kept repeating that under the deal, the Iranians would have a nuclear bomb in five years, and nothing Macron could say would persuade him otherwise

Note EU-Digest: Isn't it high time for all the signatories, minus the USA,  who signed the Iran nuclear deal; and Paris Climate agreement, specially those nations within  the EU, to bypass Trump, and continue to honor both agreements and tell Trump that in case he steps out of the Paris Climate Agreement, they will start sanctioning and  taxing US products produced by ecology unfriendly  US companies. 

Read more: Europe’s governments look to bypass Trump to save Iranian nuclear deal | World news | The Guardian

China demands U.S. 'correct its mistake' over North Korea sanctions

China urged the United States on Wednesday to immediately withdraw sanctions that Washington imposed on Beijing as part of its efforts to pressure North Korea into halting development of its missile and nuclear weapons program.

In a news conference, Chinese foreign ministry spokeswoman Hua Chunying told reporters that the country "especially opposes any country conducting ‘long-arm jurisdiction' over Chinese entities and individuals."

Hua added: "Measures taken by the United States are not helpful in solving the problem and unhelpful to mutual trust and cooperation. We ask the United States to correct its mistake immediately."

Read more: China demands U.S. immediately withdraw North Korea sanctions

Steel Industry: EU proposes duties on Brazil, Iran, Russia, Ukraine steel

The European Union is planning to impose duties of up to 33 percent on hot-rolled steel imports from Brazil, Iran, Russia and Ukraine to counter what it sees as unfairly low prices, according to a document seen by Reuters.

The EU has over 40 anti-dumping measures to aid European steel producers, mostly aimed at China. 

In June, the bloc set duties of up to 35.9 percent on Chinese hot-rolled steel, prompting an angry response from Beijing. 

Steel is the second biggest industry in the world after oil and gas and the EU's attention has recently shifted as barriers aimed at cheap Chinese imports have an impact.

Read more: EU proposes duties on Brazil, Iran, Russia, Ukraine steel

WTO upholds ruling against Washington’s tax reduction for Boeing - by Dominic Gates

The World Trade Organization (WTO) on Friday ruled that the U.S. has suitably addressed all but one piece of the European Union’s case alleging that Boeing receives illegal subsidies.

As the years-long legal process enters its final chapters, the lingering trouble lies in the biggest slice of Washington state’s aerospace tax incentives.

A WTO panel adjudicating U.S. compliance with previous rulings found that, while all other Boeing subsidies have been remedied, the state’s aerospace business tax rate reduction — worth about $800 million to Boeing since 2004 through last year — remains illegal and must still be fixed.

The ruling by the compliance panel is another legal step in an international trade dispute that has played out slowly over more than a decade: The U.S. sued the European Union in 2004 over Airbus
.
The U.S. will appeal Friday’s ruling and the appeal won’t be decided for about another year. Only then might Boeing have to consider what it can do to bring the Washington state tax subsidies into WTO compliance.

U.S. government and Boeing officials spun the outcome as a victory because the other 28 state and federal funding programs challenged as subsidies in the dispute, amounting to an alleged $10.4 billion in subsidies to Boeing, have been addressed and are now resolved.

Read more: WTO upholds ruling against Washington’s tax reduction for Boeing | The Seattle Times

Netherlands -Turkey: Economics of the standoff between Turkey and the Netherlands - by Altay Atli

 Mark Rutte and Recep Tayip Erdogan in the better days

As the diplomatic squabble between Turkey and the Netherlands continues to fester, concerns are raised about whether — and to what extent — the tensions will harm bilateral relations, particularly in economics where the two countries have robust trade and investment connections.

For Turkey, the Netherlands offers a large and expanding export market. Trade between the two countries has roots in the 17th century when the Ottomans exported wool and cotton (later tobacco as well) to the Netherlands and imported clothes and linen in return. Commerce between the two
countries remained strong into modern times; in 2016 the bilateral trade volume was US$6.6 billion.

The Netherlands is the 10th largest export destination for Turkey, and perhaps more importantly from the Turkish perspective, it is also a fast-growing market. Last year Turkish exports to the Dutch market amounted to $3.6 billion, against $3 billion in imports. And while the annual increase in imports was 3.4%, exports expanded much faster, at 13.8%. For the Turkish economy, which is suffering an acute current-account deficit, the increasing trade surplus with the Dutch is a precious commodity.

On the other side of the equation, Turkey is and has always been a favored destination for Dutch investment. A process that started in 1930 when the Dutch company Philips set up shop in the newly established Republic of Turkey has reached new levels since then, making the Netherlands by far the largest source of foreign direct investment in Turkey today. According to data by the Turkish Central Bank, Dutch investment stock in Turkey was $22 billion in 2016, compared with $11.2 billion in US investments in second place, and $9.8 billion from Austria in third place.

Turkey is home to 2,700 companies funded by Dutch capital. This figure includes those transnational companies registered in the Netherlands for legal and tax-related purposes. This sizeable Dutch involvement in the Turkish economy benefits both sides. For Dutch multinationals such as Unilever, ING Bank, Philips, Perfetti, Royal Dutch Shell and Philip Morris, Turkey is not only a favorable production base but also a lucrative market and a trading and logistics hub for access to the Middle East and North Africa, Balkans, Caucasus and Central Asia. More Dutch investment is set to come to Turkey, such as the recent purchase by Vitol Group of the Turkey-based fuel products distribution company Petrolofisi for $1.47 billion. Investment needs a stable political climate, and the diplomatic spat between Turkey and the Netherlands doesn’t help.

It is also worth nothing that while the amount of Turkish investment in the Netherlands is considerably smaller, there are several large Turkish firms that have set up subsidiaries enabling access to the larger EU market.

For the past week, Dutch pundits have been commenting that Turkey is more dependent on the Netherlands, so possible sanctions imposed by Ankara would only mean “shooting themselves in the foot.” Turkish authorities have imposed political sanctions over the Dutch government’s refusal to allow Turkish ministers to meet with members of the Turkish diaspora there, including halting high-level political discussions between the two countries and the closing of Turkish airspace to Dutch diplomats. But Ankara has carefully ruled out economic sanctions. Turkey’s economics minister, Nihat Zeybekçi said: “If we take these steps, both sides would be hurt.” Ömer Çelik, minister of EU affairs said the Dutch business community, which is “investing in Turkey, doing commerce and generating employment” is “certainly not a part of this crisis,” and “Dutch investment in Turkey is by no means under risk.”

Economic sanctions between Turkey and the Netherlands don’t seem likely at the moment, but longer-term threats remain. First, even if no sanctions are imposed, the significant loss of confidence caused by recent events will take a toll on bilateral economic relations for some time.
Second, the sizeable Turkish diaspora in the Netherlands, as well as the relatively smaller Dutch community living in Turkey, will face uncertainty, and this will have an economic impact too. An estimated 400,000 Turks live in the Netherlands, according to a diaspora association, and there are 25,000 businesses with Turkish owners, most of them smaller enterprises. Many of these companies are doing business with Turkey, and they are negatively affected by the current dispute between the two governments. So is the much smaller Dutch community in Turkey. But it is equally active in the economy, especially in the tourism sector. Declining tourist numbers will hurt Turkish and Dutch operators alike, and it might take some time to recover to pre-crisis levels of business.

Third, the diplomatic spat is likely to have a negative effect on efforts to revise the Turkish-EU Customs Union. The union, which took effect in 1996, is outdated, failing to catch up with the requirements of today’s global trade. Ankara and Brussels had begun talks to improve the deal, but the current circumstance is likely to overshadow attempts based on economic rationality.

This week Turkish football team Beşiktaş played the Greek side Olympiakos in the European cup. The Turks won 4-1 helped by two goals from Ryan Babel, the Amsterdam-born Dutch striker. Turkey and the Netherlands have links that are closer than many realize, and it will benefit both to keep them intact.

Read more: Economics of the standoff between Turkey and the Netherlands | Asia Times

USA: Trump-Led Thaw Between Russia, US to Undermine EU Unanimity Over Sanctions

United States President-elect Donald Trump said he would consider the possibility of lifting anti-Russian sanctions, but provided no further details.

 At the same time, Morgan Stanley estimated a 35 percent chance of Washington lifting sanctions against Moscow in the coming two years.

According to the bank, Trump’s presidency will result in easing sanctions against Russian companies and individuals. Meanwhile, the European Union is now concerned over a possible thaw between Russia and the US because this will create obstacles for Brussels’ policy of sanctions.

During his campaign, Trump repeatedly said he wanted to normalize ties with Russia. After the election, he confirmed he wants a "good relationship" with Moscow. Russian markets reacted to Trump’s victory more positively than other global stocks, on expectations of an improvement in bilateral economic ties between Russia and the US.

Read more: Sputnik

EU-Russia Relations, EU pledge to continue dialogue despite sanctions: Juncker

Dialog not confrontation

Russia and the EU should continue their dialogue despite sanctions, the European Commission head Jean-Claude Juncker has said at the St. Petersburg Economic Forum. Russian Foreign Minister Sergey Lavrov responded by saying that Russia is in favor of an equal, mutually beneficial, but not selective dialogue.

"We can have no illusions about the problems weighing on our relationship today. They exist. It would be pointless, even dangerous, to ignore them. We must tackle them urgently," Juncker added."I have strong preference for pipelines that unite, rather than pipelines that divide," he added, as quoted by Reuters.

The dialogue should start with discussing the Minsk agreements, and ensuring the norms and rules of international law, Juncker said.

"Russia's actions have shaken the principles of European security. Sovereignty, sovereign equality, the non-use of force, and territorial integrity matter. They cannot be ignored," he added.

As for Ukraine, it should make its own decisions regarding relations with all states, including with Russia and the EU, or both, and the choice should be respected, Juncker said, adding that a stable Ukraine would do the Russian economy good, too.

Juncker also defended his decision to arrive in Russia for the summit, saying it was just common sense to continue the dialogue with Moscow despite any tensions, and that he knew some didn't support his step to come to St.Petersburg. He said he was expecting "frank" negotiations with President Vladimir Putin on many subjects.

Russia has never courted confrontation with the West and is always open to dialogue, Russian Foreign Minister Sergey Lavrov has said during the St. Petersburg Economic Forum.

“The current crisis should help us, as well as the EU, understand how to proceed. We will neither take offense nor go into isolation,” Lavrov added.

“We have carried out an inventory of our relations with the EU, drafted it on paper, and have an extensive document. We’ll give it to our colleagues and offer to conduct an inventory together,” Lavrov said.

The foreign minister also said that the EU is a most important economic partner for Moscow, and expressed his certitude that “the development of various ties in economics, politics, culture, security directly aligns with the interests of both Russia and European countries.”

The EU is Russia's main trading partner (44.8 percent of Russia's foreign trade in 2015). Russia is the fourth largest trade partner of the bloc after the US, China and Switzerland, plus the biggest natural gas supplier to the EU and one of its biggest oil suppliers.

However, due to recent tensions, trade between Moscow and Brussels sharply dropped from $417.7 billion in 2013 to $235.7 billion last year.

The St. Petersburg International Economic Forum is held on June 16-18, focusing on the theme ‘Capitalizing on the New Global Economic Reality’.

Read more: Russia, EU pledge to continue dialogue despite sanctions: Juncker | Russia