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Green groups at COP28 demand U.S. halt support for LNG

(Reuters) – More than 250 environmental and community groups on Thursday called on the administration of U.S. President Joe Biden to halt its support for liquefied natural gas (LNG) due to the super-cooled fuel’s contribution to climate change.

The groups, led by Friends of the Earth, released a letter to Biden at the COP28 United Nations climate summit in Dubai, where dozens of nations are pushing for a global agreement to phase out use of CO2-emitting fossil fuels like LNG.

LNG is natural gas used for heating and electricity that has been cooled to a liquid state for shipping and storage. Climate activists advocate for phasing out fossil fuels like LNG and replacing them with renewable sources like wind and solar.

The letter demands that the administration stop permitting new LNG facilities and cease financial and diplomatic support for the industry.

The Biden administration has approved five U.S. LNG export licenses to serve the European market following Russia’s Feb. 24, 2022 invasion of Ukraine, having approved none beforehand.

The U.S. is the world’s largest exporter of LNG, with most of those shipments going to Europe as it seeks to wean itself from a reliance on Russian gas. Carbon dioxide emissions from U.S. LNG facilities have soared 81% since 2019, according to government data.

“Any push for a phase-out of all fossil fuels at COP28 risks falling flat if the world’s leading LNG exporter shows no signs of changing course,” the letter said. “We urge the Biden administration to publicly commit during COP to no further regulatory, financial, or diplomatic support for LNG in the United States or anywhere in the world.”

Ahead of next November’s U.S. presidential election, Biden will have to consider how approvals for fossil fuel projects could alienate environmentally minded voters who are part of his base.

The White House did not immediately respond to a request for comment.

U.S. LNG exports averaged a record 11.6 billion cubic feet per day during the first half of 2023, up 4% from the first half of last year, according to the Energy Information Administration. In November, about 68% of U.S. LNG was exported to Europe, according to LSEG.

VIEW India cenbank keeps key rate unchanged as focus on inflation remains

(Reuters) – The Indian central bank’s key lending rate was held steady on Friday with inflation control remaining a major focus amid expectations of a spike in food prices in coming months and better than expected economic growth.

The six-member monetary policy committee (MPC), consisting of three Reserve Bank of India (RBI) and three external members, kept the repo rate (INREPO=ECI) unchanged at 6.50% in line with the unanimous consensus in a Reuters poll.

The vote on the repo rate decision was also unanimous.

Commentary

Yuvika Singhal, Economist, Quanteco Research, New Delhi Covert In Small Letter

“While Guv (RBI Governor) acknowledged upside risks to the food inflation outlook with pockets of price pressures persisting within some of the key categories, near-term price pressures are likely to be ‘looked-through’.”

“We expect the RBI to be on a prolonged pause, in a bid for headline inflation to align gradually with the 4.0% target. As such, we look at RBI to begin its rate easing cycle in the third quarter of FY25.”

Sakshi Gupta, Principal Economist, HDFC Bank, Gurugram

“The RBI is expected to keep the policy rate unchanged until the middle of 2024. Liquidity conditions are expected to remain tight in the near term.”

Teresa John, Lead Economist, Nirmal Bang, Mumbai

“We do not see much possibility of OMO (open market operations) sales by RBI, particularly with it highlighting the contraction of its balance sheet.”

“We expect a rate cut by June 2024 aligned with global policy easing and just ahead of the expected fall in inflation to 4% in the second quarter of FY25.”

Anuj Puri, Chairman, Anarock Group, Mumbai

“With the fundamentals of the Indian economy remaining strong and the recently announced GDP rates indicating positive outlook, the RBI once again decided to keep the repo rates unchanged. This is an extension of the festive bonanza that RBI gave to the homebuyers in its last policy announcement. It gives homebuyers yet another opportunity to make cost-optimized home purchases.”

Radhika Rao, senior economist, DBS Bank, Singapore

“Outside of autonomous drivers, the RBI is likely to continue to maintain tight liquidity conditions and undertake a targeted approach via macro-prudential measures to check excesses.”

“In concert with the overall emphasis on removing post-pandemic excesses, the RBI will also continue to taper its balance sheet.”

“Optimism over the growth outlook was reflected in the sharp upward revision in the GDP estimates.”

Suvodeep Rakshit, senior economist, Kotak Institutional Equities, Mumbai

“The policy avoided any surprises while retaining a hawkish tone in its communications, as expected. The revised FY2024 GDP growth estimate at 7% was as expected too.”

“We believe that inflation risks remain on the upside for at least next few months from food inflation. The good part is that growth remains resilient and core inflation remains under check.”

“We maintain our call for a prolonged pause on repo rate at 6.5% well into FY2025 while liquidity over the medium term will be aimed at being close to neutral.”

Manoranjan Sharma, chief economist, Infomerics Ratings, New Delhi

“This policy is entirely in conformity with our pre-policy expectations. In view of the evolving growth-inflation trade-off, the MPC took the right call in holding the rates steady.”

Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank, Mumbai

“The MPC has retained focus on 4% inflation being the medium target, with monetary policy actions to ensure disinflationary trends ahead. We continue to expect prolonged pause by the MPC.”

India keeps key rate unchanged on strong growth, inflation risks

Mumbai (Reuters) – The Indian central bank’s key lending rate was held steady on Friday as growth in the world’s fastest growing major economy is resilient and the outlook for inflation remains uncertain.

The six-member monetary policy committee (MPC), consisting of three RBI and three external members, kept the repo rate (INREPO=ECI) unchanged at 6.50% in line with the unanimous consensus in a Reuters poll.

The vote on the repo rate decision was also unanimous.

The central bank raised its forecast for economic growth to 7% from 6.5% after stronger than expected growth in the July-September quarter.

“Growth has been resilient and robust, surprising everyone,” Reserve Bank of India (RBI) Governor Shaktikanta Das said.

But the central bank’s 4% medium term inflation target is still to be met, said Das. “Monetary policy will remain actively disinflationary.”

The MPC maintained its policy stance of “withdrawal of accommodation” to ensure inflation progressively aligns with the committee’s target while remaining supportive of economic growth.

Reuters Graphics
Reuters Graphics

The RBI had raised the repo rate by a total 250 basis points (bps) since May 2022 in efforts to cool surging inflation, which dropped to a four-month low of 4.87% in October, but is expected to remain above the RBI’s 4% medium-term target for some time.

The central bank projected consumer inflation at 5.4% for 2023-24, unchanged from its previous projection.

The outlook for inflation remains clouded by uncertain food prices, said Das, while adding that core inflation, which excludes volatile food and fuel prices, has broadly moderated.

The Indian rupee was little changed at 83.3425 to the dollar while equity markets kept their gains following no change to the policy rate and stance.

Benchmark bond yields rose two basis points to 7.2565% after the RBI’s stronger growth forecast and cautious remarks on inflation risks.

Fintech startup Pontera raises $60 mln, plans more hiring in Israel

(Reuters) – Fintech startup Pontera has raised $60 million in fresh funding led by investment firm ICONIQ Growth, the New York-based company which builds software to help financial advisers manage retirement accounts, said on Thursday.

Pontera didn’t disclose its valuation, but a source close to the company said it was now worth over $550 million. The source requested anonymity since the numbers are not public.

The company has raised a total of $160 million including the latest round of funding. It also counts Blumberg Capital and Lightspeed Venture Partners as backers.

Financial advisers like Dynasty Financial Partners and SageView Advisory Group use Pontera’s platform to analyze, rebalance and monitor various retirement funds and other accounts across financial institutions.

Pontera co-founder and Chief Executive Yoav Zurel said the company’s annual revenue has quadrupled since 2021, but did not give any financial details. It makes money by charging a percentage fee to financial advisors who use the platform.

Headquartered in New York, Pontera has 220 employees, 65% of which are based in Israel. Some of them have been called for reservist duty since the Israel and Hamas war broke out in October.

Zurel said he plans to invest the money raised in product and engineering and expand its global team, including hiring 50 more employees in Israel.

“We have teams in the U.S. and in Israel and our focus is serving the U.S. retirement saver,” said Zurel.

By June 2021, 401(k) plans in the United States held an estimated $7.3 trillion in assets and represented nearly one-fifth of the $37.2 trillion US retirement market, according to Investment Company Institute.

“401(k)’s can be very meaningful portions of people’s overall portfolios and assets and it’s really important to make the best decisions with them. There was no real way or alternative for advisers to compliantly securely manage held away assets in the past, like they can with Pontera,” said Yoonkee Sull, partner at ICONIQ Growth.

‘Raise the bar’ at UN climate summit, urges COP28 leader Jaber

Dubai (Reuters) – Ahead of the toughest phase of U.N. climate negotiations, COP28 President Sultan Al Jaber appealed to countries to maintain momentum and achieve a punctual finish after what he said was a week of historic progress.

In a speech late on Wednesday, Jaber praised delegates from nearly 200 countries for the agreement on the opening day of the two-week summit on a “loss and damage” fund to aid countries stricken by climate-driven disasters.

Countries, businesses and philanthropies have since pledged to mobilise $83 billion in climate finance, which “can only raise the bar higher”, Jaber told the delegates.

“What we have collectively accomplished only in a week is, in my view, nothing short of being historic,” he said. “In just seven days we have demonstrated that multilateralism does actually work, it is alive and well.”

While the summit venue was quiet on Thursday, with negotiations officially paused for a scheduled “day of rest”, delegates were working toward a final COP28 agreement by the conference’s scheduled Dec. 12 close.

When the summit resumes on Friday, countries will start to tackle the finer details and Jaber is expected to outline his work plan for the second week, including a goal to close on schedule.

That would be a feat U.N. climate talks have not achieved since COP9, 20 years ago in Milan.

Eight of the last 10 COP meetings have stretched into overtime by at least 24 hours, according to Carbon Brief news and data website – including last year’s COP27 in Egypt and the previous COP26 in Glasgow.

In the final stretch of COP28, negotiations focus on some of this year’s toughest issues.

Global Stocktake

For the first time, countries are undertaking the mammoth task of assessing their climate progress so far and what remains to be done.

Known as the “global stocktake,” the work is expected to yield a blueprint for future policy action by governments to try to prevent climate change from escalating to extremes.

Draft texts so far show numerous options for national climate plans to take up, meaning ministers must address a lack of consensus.

“They still have a lot to accomplish to provide the political signals that will course correct towards meeting the goals of the Paris Agreement and keeping 1.5 degrees within reach,” said observer Kiryssa Kasprzyk, climate policy director at Conservation International.

Saudi Arabia

Some delegates have said that oil-producer Saudi Arabia has held up negotiations in different work streams by pressing for the removal of any mention of a phasing down of fossil fuels.

Colombia’s Environment Minister Susana Muhamad told Reuters that her country has asked for a high-level meeting with the Saudi delegation, after Colombian delegates witnessed the Saudis blocking text in negotiating rooms.

Saudi Arabia “is trying to keep things status quo, you know, more of an attitude,” she said. “But the reality is that we can’t do that” given the climate-fueled weather extremes and disasters occuring around the world.

Phase Down? Phase Out?

The 27-member European Union, Chile and others want the final COP28 deal to include a clear call to phase out fossil fuel use – without including language that might enable countries to heavily rely on carbon capture and removal for that goal.

Chile’s Environment Minister Maisa Rojas – herself, a climate scientist – urged her counterparts from other countries to not postpone the issue to a future year.

“It is absolutely necessary,” Rojas told Reuters of a phase out. “We have known this for a long time.”

To get round objections from Saudi Arabia, Russia and other countries whose economies rely on oil and gas, negotiators are looking for alternative wording to signal a shift from fossil fuels through the 2030s.

The “phase down/phase out” language has become a flashpoint for countries that produce oil, gas or coal.

Trinidad and Tobago for the Alliance of Small Island States, known as AOSIS, suggested the language: “phasing out of fossil fuels in line with the best available science and IPCC pathways and principles and provisions of the Paris agreement,” an observer of the negotiations said.

The United States and China managed to avoid the terms altogether, agreeing in their November bilateral in Sunnylands, California – to triple renewable energy deployment to “accelerate the substitution for coal, oil and gas generation” and “meaningful absolute power sector emission reduction, in this critical decade of the 2020s”.

“I expect we’ll see some creative wordplay,” Catherine Abreu, founder of NGO Destination Zero, said.

Climate Finance And Adaptation

Since the deal for the disaster fund was adopted on Nov. 30, Jaber said countries have mobilised over $726 million to capitalise it, and he expected to get more into the fund by the end of this year’s COP.

Progress on climate adapatation has stalled, however, with ministers needing to resolve a stalemate over wealthy versus poor country obligations to pay into the fund.

They will also need to address how to boost climate finance.

The pledges made at COP28 are still far short of the hundreds of millions that will be needed each year to help developing countries adapt to the conditions of a warming world – including sea level rise and increasingly dangerous heat.

Developing nations also need billions, if not trillions of dollars in annual finance to shift to cleaner energy.

“The finance piece is particularly important because developing countries are understandably hesitant to be burdened with global targets that they can’t afford to carry out,” said Teresa Anderson, who leads climate justice work at the global nonprofit ActionAid International.

Belgium wants to deny entry to violent Israeli settlers from occupied West Bank

Brussels (Reuters) – Belgium wants to deny entry to Israeli settlers from the occupied West Bank involved in violence against Palestinians, vice prime minister Petra De Sutter said on Thursday.

The European Union has condemned the increase in settler violence since the Oct. 7 Hamas attacks on Israel and this week the United States began imposing visa bans on people accused of being involved.

“Violent settlers will be denied entry into Belgium and I will be proposing that Belgium advocates for an EU-wide travel ban,” De Sutter said on X.

Israeli citizens do not need a visa to enter the Schengen zone, which Belgium is part of, and can stay for up to 90 days. But a government spokesperson, Barend Leyts, said Belgium will ask at the European Council to add violent settlers to the Schengen information database to deny them entry.

On Wednesday evening, De Croo had also said that Belgium will work with the U.S. on sanctions against individuals harming peace in the West Bank.

Since a 1967 Middle East war, Israel has occupied the West Bank, which Palestinians want as the core of an independent state. It has built Jewish settlements there that most countries deem illegal. Israel disputes this and cites historical and biblical ties to the land.

Israel’s Defence Minister Yoav Gallant said this week that no one besides the government had the right to use violence, and that Israel had taken some steps to hold people responsible for the West Bank violence like administrative detention.

Iran’s Raisi tells Putin in Moscow that West backs Gaza “genocide”

Moscow (Reuters) – Iranian President Ebrahim Raisi accused the West on Thursday of supporting “genocide” by Israel against Palestinians in Gaza, at the start of talks in Moscow with President Vladimir Putin.

As part of a burst of meetings focused on the Middle East, Putin greeted Raisi in the Kremlin a day after visiting the United Arab Emirates and Saudi Arabia, where he discussed the wars in Gaza and Ukraine and efforts by Russia and OPEC to boost oil prices.

In televised opening remarks, neither leader referred to their countries’ growing military cooperation – a source of concern to the United States, which says Iran is supplying Russia with weapons to use against Ukraine.

Putin said it was very important to discuss the situation in the Middle East, especially in the Palestinian territories.

Raisi responded via a translator: “What is happening in Palestine and Gaza is of course genocide and a crime against humanity.” He said it was “even more sad” that this was supported by the United States and the West.

Iran backs the Palestinian militant group Hamas, the ruling authority in Gaza, in its war with Israel. Russia has relations with all the key players in the region including Hamas and Israel, which it angered by hosting a Hamas delegation in Moscow in October.

Analysts say the conflict has helped Russia by distracting world attention from the war in Ukraine and enabling Moscow to align itself with developing countries in solidarity with the Palestinians.

Putin has said the sight of suffering and bloodied children in Gaza makes “tears come to your eyes”, but Western governments say such comments are hypocritical when Putin’s forces have killed thousands of civilians in Ukraine.

Russia and Arab countries say the West is showing double standards by supporting Israel’s bombing and siege of Gaza while accusing Russia of war crimes.

Israel has previously said allegations of genocide are deplorable and that its actions target Hamas, not civilians.

Military Ties

Like North Korea, whose leader Kim Jong Un met Putin in Russia’s far east in September, Iran is an avowed enemy of the U.S. and can provide Moscow with military hardware for its war in Ukraine, where Russia has made extensive use of Iranian drones.

The Kremlin last month said Russia and Iran were developing relations, “including in the field of military-technical cooperation”, but declined to comment on a suggestion by the White House that Iran may be considering providing Russia with ballistic missiles.

White House spokesman John Kirby on Wednesday described the burgeoning defence relationship as “worrisome”.

Iranian authorities have said military cooperation with Russia is expanding day by day.

Iran said last month it had finalised arrangements for Russia to provide it with Su-35 fighter jets, Mi-28 attack helicopters and Yak-130 pilot training aircraft.

Russian Defence Minister Sergei Shoigu was present at Thursday’s meeting, as was Deputy Prime Minister Alexander Novak, Putin’s point man on oil.

50 days in Hamas captivity – Thai man recalls beatings and bleakness

Don Pila (Reuters) – When Thai farm labourer Anucha Angkaew scrambled out of the bunker where he had been sheltering from rockets on Israel’s border with the Gaza Strip around 7.30 am on Oct. 7, he expected to see Israeli soldiers.

Instead, Anucha and his five Thai colleagues were accosted by 10 armed militants, whom he identified as Hamas by the Palestine flags on their sleeves.

“We shouted ‘Thailand, Thailand’,” said Anucha, a soft-spoken 28-year-old with a wispy goatee. “But they didn’t care.”

Two of the six Thais were killed soon after, including a friend who Anucha said was shot dead in front of him in a random act of violence. The rest were forced on to a truck for a roughly 30 minute ride into Gaza.

Anucha’s first person account offers a glimpse into what many hostages endured – and some continue to endure. He described sleeping on a sandy floor and beatings by Hamas captors, who he said singled out Israelis for especially brutal treatment.

To keep their hopes up, the four Thai men relied on chess games on a makeshift board, memories of family and craving for Thai food.

Few of the freed hostages have spoken at length about their ordeal, though others who have since been released also described beatings and death threats.

Hamas officials did not immediately respond to a written request for comment on Anucha’s account.

“I thought I would die,” he said on Wednesday, at his family home in rural northeastern Thailand, where he returned this month after 50 days in captivity.

Almost all that time was spent inside two small underground rooms, secured by armed guards and accessed by dark narrow tunnels.

At least 240 people – Israelis and foreign nationals – were abducted to Gaza on Oct 7. by Hamas militants who burst through the border and killed some 1,200 people.

More than 100 hostages – largely women, children and non-Israelis – have been released.

In retaliation for the Oct. 7 attack, Israel mounted a devastating bombing campaign and ground offensive that has killed more than 15,000 people, according to figures from Palestinian health officials deemed reliable by the United Nations.

Some 130 people, including eight Thais, remain captive.

Before the war, around 30,000 Thai labourers worked in the agriculture sector, making them one of Israel’s largest migrant worker groups. Israel offers the farmhands higher wages.

Thailand, which has friendly ties with Israel, recognised Palestine as a sovereign state in 2012.

Israel’s Foreign Ministry has compared the dead Thai hostages to “heroes” and said the released captives would receive the same benefits as their Israeli counterparts.

Two Meals, Two Bottles Of Water

Once in Gaza, the uniformed militants handed the Thais to a small group of men who took them to an abandoned house and tied their hands behind their backs.

The Thais were joined by a terrified 18-year-old Israeli, a man Anucha said he knew from Kibbutz Re’im, where he worked on an avocado farm.

Beatings began shortly after, as their captors punched and kicked them. “We shouted ‘Thailand, Thailand’,” he said, which eased the intensity of the blows. The young Israeli wasn’t spared.

An hour later, all five were put into another truck that drove for about 30 minutes to a small building that led into a tunnel.

Near the mouth of the tunnel, they were beaten again and photographed, Anucha said, before walking through a dark, roughly meter-wide passage to a small room.

In this windowless space, which measured around 1.5 meters by 1.5 meters and was lit by a bulb, the five were joined by another Israeli man.

The militants continued kicking and punching the captives for two days, Anucha said. After that, they persisted with another two days of beatings for the Israelis, who were whipped using electrical wires.

Anucha was not seriously injured but weeks after his release from captivity, his wrist still bore marks from the restraints.

The captives slept on the bare sandy floor. The six men were served flat bread twice a day and shared two bottles of water between them that was replenished daily.

Their toilet was a hole in the ground near the room, where they were taken by one of eight guards armed with assault weapons that resembled AK-47s. Guards told them not to talk among themselves.

“I felt hopeless,” Anucha said.

Anucha initially counted down the days by the number of meals. After four days, the six were marched to another room.

During the walk, Anucha said the tunnel, which was lit by flash lights carried by their captors, was lined with metal doors.

‘Thailand, Go Home’

Their new room was more spacious. They had plastic sheets to sleep on. Three bulbs lit the space. An alcove served as their toilet.

The beatings stopped. The food improved to include nuts, butter and, later, rice.

Still using meals to measure time, Anucha left scratches on the floor to mark the number of days in captivity.

That changed when a guard brought in some papers for them to sign. He, like the other guards, only spoke Arabic. The Israelis interpreted for Anucha, who said he speaks rudimentary Hebrew.

But the guard left behind a white ballpoint pen. They used it to mark time, draw tattoos and sketch a chessboard on the plastic sheet. Chess pieces were crafted out of a pink-and-green toothpaste box.

Another distraction was talk of food. Anucha craved soi ju, a Thai delicacy of pieces of raw beef dipped in spicy sauce, that he dreamt and spoke of.

“Food was a source of hope,” he said, smiling.

Weeks passed. Anucha had no inkling of the Israeli raids and bombings aboveground. He often thought of home, his father, his seven year old daughter and his partner of 14 years.

On Day 35, a man dressed in black arrived for a brief inspection. From his demeanour and the respectful behaviour of the guards, the captives surmised he was a senior Hamas leader.

Their routine resumed, until one day, a guard arrived following their first meal and announced: “Thailand, go home.”

The four Thais were led through tunnels for roughly two hours and arrived overground to a Hamas facility, where a handful of female Israeli hostages were also waiting.

Some 11 hours later, they were handed over to the Red Cross, which drove them out of Gaza on Nov. 25.

“I didn’t think I would get released,” he said, “It was like I was reborn.”

But the hardest part was still what he saw on Oct. 7, Anucha said. “I lost my friend in front of my eyes.”

Turning over a page, Greece and Turkey agree to mend ties

Athens (Reuters) – Greece and Turkey on Thursday agreed to reboot their relations, establishing a roadmap designed to usher in a new era of ties between the two NATO allies but historic foes.

In a landmark visit of Turkish President Tayyip Erdogan to Greece, the long-time sparring partners agreed to focus on pursuing good neighbourly relations, keep open channels of communication, boost trade volumes and work on issues which have kept them apart, notably in the Aegean Sea.

“There is no issue between us that is unsolvable. So long as we focus on the big picture and don’t end up being like those who cross the sea and drown in the river,” Erdogan said after a meeting with Greek Prime Minister Kyriakos Mitsotakis in Athens. The meeting went on longer than expected.

The NATO allies wanted to raise bilateral trade volume to $10 billion, while Erdogan said both countries could benefit from high-level meetings held annually.

“Geography and history has dictated that we live in the same neighbourhood.. But I feel a historical responsibility to utilise this opportunity to bring the two states side-by-side, just as our borders are,” Mitsotakis said.

More accustomed to verbal jousting in recent years, chilly relations between the two neighbours thawed markedly after Greece swiftly dispatched aid in the wake of a devastating earthquake in Turkey in February.

Greece and Turkey have been at odds for decades over issues including where their continental shelves start and end, energy resources, overflights of the Aegean Sea, and ethnically-split Cyprus.

They came to the brink of war in the 1990s, and in recent years have argued over energy resources in the Eastern Mediterranean, defence issues, migration and the acquisition of fighter jets, which interrupted cooperation talks.

But ‘earthquake diplomacy’ – similar to another thaw under similar circumstances in 1999 – has turned the tide, again.

Striking an upbeat tone, Erdogan earlier said the two countries should focus on the positives, and less on the negatives.

“It will be much more beneficial for the future if we look at things from a glass half-full perspective,” Erdogan said during a meeting with Greek President Katerina Sakellaropoulou earlier.

Greece got permission from the European Union to re-activate a seven-day tourist visa for Turkish visitors for 10 islands close to the Turkish coast.

Both countries want to show they are willing to mend ties.

Turkey has been seeking EU membership for more than two decades. Following a debt crisis that rocked the euro zone, Greece wants to regain its footing and appear as a pillar of stability in a changing geopolitical landscape due to the war in Ukraine and the Gaza conflict.

Russia and Saudi Arabia urge all OPEC+ powers to join oil cuts

Moscow (Reuters) – Saudi Arabia and Russia, the world’s two biggest oil exporters, on Thursday called for all OPEC+ members to join an agreement on output cuts for the good of the global economy just days after a fractious meeting of the producers’ club.

Hours after Russian President Vladimir Putin went to Riyadh in a hastily arranged visit to meet Saudi Crown Prince Mohammed bin Salman, the Kremlin released a joint Russian-Saudi statement about the conclusion of their discussions.

The Organization of the Petroleum Exporting Countries, Russia and other allies agreed last week to new voluntary cuts of about 2.2 million barrels per day (bpd), led by Saudi Arabia and Russia rolling over their voluntary cuts of 1.3 million barrel per day (bpd).

“In the field of energy, the two sides commended the close cooperation between them and the successful efforts of the OPEC+ countries in enhancing the stability of global oil markets,” the statement released by the Kremlin said.

“They stressed the importance of continuing this cooperation, and the need for all participating countries to join to the OPEC+ agreement, in a way that serves the interests of producers and consumers and supports the growth of the global economy,” the statement, which was in Russian, added.

The Russian version used the word “join” while an English translation of the statement, also released by the Kremlin, used the word “adhere” to the OPEC+ agreement.

Saudi state news agency SPA said that the crown prince, known as MbS, and Putin had stressed in their meeting the need for OPEC+ members to commit to the group’s agreement.

Sources in the oil market said such an explicit public remark from the Kremlin and the kingdom about “joining” cuts appeared like a hint aimed at specific oil powers.

Putin will hold talks with Iranian President Ebrahim Raisi in Moscow on Thursday.

Mystery still surrounds Putin’s trip to Riyadh and Abu Dhabi, on which he was escorted by four Russian fighter jets, and it was not immediately clear what particular issue was so important for Putin to make a rare overseas trip.

The Kremlin said Putin and MbS also discussed the conflicts in Gaza, Ukraine and Yemen, the Iranian nuclear programme and deepening defence cooperation.

OPEC+

OPEC+, whose members pump more than 40% of the world’s oil, had to delay its meeting over disagreements about output with African producers, though some oil traders said they suspected a deeper schism inside the group.

After the producers decided to cut, oil prices fell to a five month low – a clear sign that the market had expected more forthright action from OPEC+.

Putin and MbS, who together control one-fifth of the oil pumped each day, were shown with smiles and engaging in an effusive handshake as Putin emerged from his car in the Saudi capital.

Both MbS, 38, and Putin, 71, want – and need – high prices for oil – the lifeblood of their economies. The question for both is how much of the burden each should take on to keep prices aloft – and how to verify the burden.

At the talks with MbS, Putin said that a planned visit by the prince to Russia had been changed at the last minute, prompting him to visit Riyadh.

“We awaited you in Moscow,” Putin told MbS with a smile.

“I know that events forced a correction to those plans but as I have already said nothing can prevent the development of our friendly relations.”

Putin then said: “But the next meeting should be in Moscow.”

The crown prince said through a Russian translator that he was of course ready to do that.

“Then we are agreed,” Putin said.