Sunday, September 10, 2023

WW3.0

Swarm of Chinese Vessels Tries - And Fails - to Block Philippine Convoy

The Philipping Coast Guard has completed a resupply mission to Second Thomas Shoal despite determined opposition from Chinese forces.

On Friday, the PCG deployed two 150-foot cutters to escort small resupply boats to support the Philippine garrison at the shoal. The Philippine military maintains an outpost aboard the wreck of the BRP Sierra Madre, a WWII-era landing ship that was run aground on the reef in order to create a base in 1999. The deteriorating ship needs regular supply runs, including the delivery of materials for repairs.

China - which contests Manila's claims in the Spratly Islands - maintains a flotilla of China Coast Guard and maritime militia forces near the reef, and the resupply runs are a regular source of friction. On Friday, the opposing force included four China Coast Guard cutters and four Chinese maritime militia trawlers. As during past runs, the CCG vessels intercepted the approaching PCG vessels, maneuvering aggressively to block their passage or intimidate the crews. In one case, a CCG cutter came within yards of ramming a PCG vessel.

This time, the CCG's methods did not feature the use of water cannons, and the supply vessels made it through unharmed. The Chinese task force also sustained a minor casualty when a China Coast Guard launch got entangled with a line from a fishing vessel, AFP spokesman Col. Medel Aguilar said Saturday. “It’s about the karma that they experienced when they tried to shadow our resupply vessel,” he said at a press conference in Quezon City.

Though successful, the mission was unacceptably hazardous because of Chinese forces' maneuvering, according to the PCG. "The routine [rotation and replenishment] mission was again subjected to dangerous maneuvers . . . jeopardizing the crew members' safety aboard the PCG vessels and Philippine resupply boats," said PCG spokesman Jay Tarriela. "Despite the challenging circumstances brought about by the illegal presence and activities of the CCG and CMM in our exclusive economic zone, the mission was carried out successfully."

Tarriella called for China's gray-zone maritime operations to cease in the Philippines' EEZ. "Doing so can foster a stable, secure, and rules-based maritime order conducive to regional cooperation and peace," he said.

Rig Removal Law Threatens Vibrant Artificial Reef off Peru

Subsea platform — The ecosystem under the MX-1 platform (Yuri Hooker / CDO)

[By María Elena Carbajal]

At five o’clock in the morning, the skies begin to clear over the Los Órganos docks in northern Peru, less than 200 kilometres from the border with Ecuador. As dozens of boats loaded with fish begin to arrive at the port, pelicans, turtles, sea lions and seagulls congregate to gorge on any leftover catch.

A few kilometres off shore, away from the buzz of activity in this small fishing hub, stands a rusting oil platform that has attracted attention after finding a new and unexpected purpose.

The MX-1 rig, which was retired in 2011 after more than two decades in operation, has since become a marine biodiversity hotspot, researchers say. “This is the habitat of many species, new to science as well as endemic,” says Yuri Hooker, a marine biologist with more than 30 years’ experience researching the Peruvian sea. He says manta rays, whale sharks and meadows of sea fan corals can be found around the platform, as well as a seemingly “infinite” abundance of fish species.

The ecosystem of the platform hosts damselfishes and other species vital to small-scale fishing in northern Peru, so it attracts many artisanal fishers and divers (Image: Yuri Hooker)

But soon, the accidental reef may have to be removed due to legal requirements. Marine biologists, conservationists and many in local communities are worried that this rich newfound ecosystem will disappear along with it.

An unexpected ecosystem

The MX-1 platform is one of seven disused oil platforms along Peru’s northern coast – all owned by state oil company Petroperú – that are currently facing removal. But, having emerged as an underwater sanctuary, it has attracted the most attention.

Anchored off Los Órganos since 1985, the end of the search for oil at MX-1 and its subsequent abandonment allowed the rig to flourish as the home of 26 fish species and 57 invertebrate species, according to the latest study by Hooker.

The rough surfaces of the MX-1 structure are ideal for marine organisms to attach to, Hooker explains. The solid piles anchored to the seabed encourage the habitation of corals, invertebrates and algae.

MX-1’s location among warm waters and the meeting of ocean currents has helped to create an abundant ecosystem. Though the region sees seasonal variations, the sea off Los Órganos has an average annual surface temperature of around 20C, while the warm South Pacific Current converges here with the cold Humboldt Current. The latter transports colder water and nutrients from the depths to the surface and helps biological productivity in the Los Órganos area, feeding the entire trophic chain.

The conditions of this part of the Peruvian sea have turned MX-1 into a habitat for millions of micro-organisms, which then serve as a feast for fish species such as jack mackerel.

There are also abundant damselfish and two species vital to small-scale fishing in northern Peru: threadfin bass and southern rock bass. For this reason, the platform has attracted artisanal fishers and divers. It has also become a resting point for coastal and oceanic birds, sea lions, dolphins and manta rays. Meanwhile, during their migration season of July to October, humpback whales may be seen leaping from nearby waters.

Many companies run diving tours around the platform, which is said to be one of the best spots for the activity in Peru. Local tourism businesses are calling for MX-1 to be conserved. (Image: Yuri Hooker)

“It is one of the best diving spots in Peru and to lose it would be a shame, both for ecotourism, conservation and artisanal fishing,” says Adriana Zavala, a marine biologist and founder of the Chelonia dive centre, which works in this part of the country. Companies such as hers have been running tours around the platform since 2012.

Zavala highlights the ambiguity of regulations surrounding MX-1’s removal, and a lack of specific regulations for artificial reefs in Peru. These may threaten the range of economic activities that have sprung up around the platform in its second life, she says.

Legal obligations

Since 2011 – the same year MX-1’s operations ceased – the concession for the platform has belonged to Savia Peru. The company, owned by US-based De Jong Capital, carries out offshore oil and gas extraction and exploration in Peruvian waters.

The MX-1, which ceased operating in 2011, has become a resting place for coastal and oceanic birds, sea lions, dolphins and manta rays (Image: Chelonia Dive Center)

Savia’s concession contract ends on 15 November 2023, following which it is obliged to remove all the infrastructure installed at the site under Peru’s Environmental Protection Regulations for Hydrocarbon Activities. This regulation establishes that the operator of a concession must submit an “abandonment plan” for the end of their contract to the Ministry of Energy and Mines (MINEM). The removal of MX-1 “is part of this plan and includes seven platforms, as well as underwater lines, tanks and land remediation,” Orlando Mercado, Savia Peru’s social responsibility manager, told China Dialogue Ocean.

Savia submitted its abandonment plan to MINEM’s General Directorate of Hydrocarbons in November 2018.

“We thought it would be approved in 2019, which would give us four years to carry out the removal of the facilities without problems. There are more than 500 tonnes of iron that cannot be removed overnight,” said Mercado.

However, the plan was only approved in April 2022. This established that Savia is obliged not to leave any environmental liabilities at the end of its contract. Otherwise, it would lose its US$20 million bond held by OEFA – the government’s environmental assessment and enforcement agency – for failing to comply with the abandonment plans.

Although the regulation orders the removal of infrastructure once its period of use is over, there are two exceptions: when there is an entity interested in keeping the facility, and when the removal would cause greater damage to the environment.

MX-1 is not the first piece of oil or gas infrastructure to have found a new lease of life once operations have ceased, thus forcing a nation to consider legal frameworks for their management. Countries such as Australia, Canada, the US, the UK, Malaysia, Norway and the Netherlands have policies related to abandonment that include, for example, permitting their ongoing use as an artificial reef.

Other initiatives have found creative uses for disused infrastructure. In the UK, a platform was renamed See Monster and converted into a temporary art installation before its eventual dismantling. Meanwhile, off the coast of Malaysia, another was renamed Seaventures Dive Rig and turned into a tourist centre.

See Monster is a retired oil platform in the North Sea. A local creative project in the UK brought it to the coast of Somerset and turned it into a temporary art installation. (Image: Andrew Gustar / Flickr, CC BY ND)

Against this background, Asetur Los Órganos, an association of local tourism businesses, has promoted efforts to conserve MX-1, seeking to get the state to implement policies related to artificial reefs.

“In Peru, although there is no legislation that regulates these types of practices on these spaces, there are many structures such as docks, sunken ships and, in this case, the platform, which when submerged in the water begin to attract a large number of organisms and eventually become artificial reefs,” says Hooker.

Should Savia not fulfil its obligation to dismantle MX-1, it remains unclear who may take responsibility for the structure’s maintenance and management once its concession ends, with no legal clarity over who this duty should pass to. Percy Grández, the legal advisor of the marine governance programme of the Peruvian Society of Environmental Law (SPDA), explains that abandoning such a large structure without a maintenance plan is a risk – not only for the ecosystem, but also for tourists and fishers.

Zavala echoes this point: “In the current situation, the platform is an environmental liability. It means that it does not extract anything, so it is not seen as an investment, but rather as a social responsibility. It is not seen as a productive infrastructure, so there is no real interest on the part of the companies.”

Bringing the debate to court

On 6 July, through the Coastal Marine Observatory (OMC), an organisation formed by ocean activists, an injunction was filed against MINEM, the Ministry of Environment, OEFA and Savia Peru to suspend the abandonment plan for the removal of the MX-1 platform.

“What should happen as soon as possible, due to the urgency of the matter, is that the judge admits the lawsuit and stops the decommissioning,” said legal expert Grández. He also confirmed that the decommissioning has been halted until the judge’s verdict is known.

Speaking to China Dialogue Ocean in July, Grández described the platform’s future as a “priority issue” that should be decided “in the next few weeks”. However, a date for the case to be concluded is still yet to be set.

The future of MX-1 is at a crossroads. On the one hand, tourism companies and civil society are campaigning for the platform not to be removed, but on the other, no clear proposals for who should take over its management have been put forward.

For Grández, if decommissioning the platform is avoided, every precaution should be taken to avoid a future environmental emergency. He said that sealing the wells and removing all levels of the platform should be the first step – tasks that had been completed as of August, according to Savia. What should not be moved is the submerged base of the structure that has become a major artificial reef, the legal expert added.

“The infrastructure that remains and is seen as an environmental liability has become so integrated into its surroundings that its removal could trigger unknown and even more damaging environmental consequences,” said Hooker. He called for further research and clear regulations for these structures, given the potential wave of future cases as oil and gas infrastructure reaches the end of its life.

On 7 August, Savia issued a statement outlining its intent to pause dismantling of the platform and called on authorities and civil society to identify an entity to assume the management of the platform at the expiry of its contract. At the time of writing, no such solution had yet been found.

María Elena Carbajal is a Peruvian journalist and sociologist specialising in socio-environmental issues with more than ten years of experience. She currently works at the Institute of Marine Sciences in Barcelona.

This article appears courtesy of China Dialogue Ocean and may be found in its original form here.

U$A

Ørsted Acquires Offshore Wind Assets as Eversource Pursues Strategic Exit

offshore wind farm — Orsted acquired a lease area, ports, and the charter for the SOV currently under construction as Eversource pursues a strategic exit (file photo)

Despite its recent statements questioning the economic viability of portions of the U.S. offshore wind energy sector, Ørsted reports it closed on a previously announced acquisition of assets from Eversource Energy. In a statement detailing in acquisition, Ørsted highlights it as a step to consolidate its position in the U.S. market and as a demonstration of its long-term commitment, while Eversource Energy continues to pursue a strategy to sell assets as part of its strategic review of the offshore wind segment.

Ørsted acquired Eversource Energy’s 50 percent interest in an uncontracted federal offshore wind lease area previously owned jointly by the two companies. The lease area, which includes Lease Area OCS-A 500, contains approximately 187,000 acres of seabed which is in early-stage development and has a potential capacity of up to 4 gigawatts. It is located approximately 25 miles off the coast of Massachusetts and according to the companies could be used to service key markets, including Massachusetts, Rhode Island, Connecticut, and New York.

The lease area is also significant because it is adjacent to other Ørsted leases and could be used in conjunction with other sites to create construction and operational efficiencies. According to Ørsted, the site also offers shallow water depth and favorable wind speeds compared to other sites in the U.S. and globally. They have proposed siting the Sunrise Wind 2 project for New York in this lease area, and report they are evaluating other opportunities including active offshore wind solicitations in the region.

Ørsted is also acquiring certain contracts and leases for strategic port facilities and other assets previously owned jointly by the two companies. Ørsted will take full ownership of partnerships with the Port of Providence, the Port of Davisville, and Quonset Point, all in Rhode Island, and with Connecticut's New London State Pier. Ørsted will also acquire ownership of the operations and maintenance hub in East Setauket, N.Y., and the charter agreement for the first American-built offshore wind service operations vessel, which is under construction at Edison Chouest’s facility in Houma, Louisiana.

It is an all-cash transaction for $625 million completing the deal that was first announced on May 25. The U.S. Treasury Department’s Committee on Foreign Investment approved the acquisition on July 27.

Eversource however is being engaged to provide services as an onshore construction manager to continue to support onshore scopes of all three projects through construction, and creating the opportunity for a Tax Equity Capital Contribution for South Fork Wind, the offshore wind farm that is already under construction to serve New York. Eversource will use a portion of the proceeds from the lease area sale to provide its anticipated tax equity investment for South Fork Wind. The contribution for Eversource’s new tax equity member interest is expected to be approximately $545 million.

Eversource expects to recover this tax equity member interest investment primarily in the form of investment tax credits as turbines are placed in service for South Fork Wind. These credits will be utilized to reduce federal tax liability, including refunds expected over the next nine months. Eversource also expects to receive approximately $273 million of this contribution as a distribution from the project prior to its commercial operations date, as it currently remains a managing member of the project, along with Ørsted. Eversource’s tax equity investment in South Fork Wind is expected to close in the third quarter.

Ørsted notes that securing the tax equity arrangement is a critical milestone for South Fork Wind ahead of its plan to begin operations and deliver renewable energy later this year. The company’s corporate management was critical of the execution of the tax credits promised by the U.S. citing it as one of the factors changing the economics of the projects.

Eversource announced last year it was reviewing its offshore wind energy portfolio and considering whether to sell related assets. In addition to selling its uncontracted seabed and other interests, Eversource reports it has determined that it is in the best long-term interest of the company to pursue the sale of its existing 50 percent interest in its three jointly owned contracted offshore wind projects, South Fork Wind, Revolution Wind, and Sunrise Wind. Eversource reports the process is continuing to progress and it expects to announce additional details of this transaction soon.

NOT JUST CAR DRIVERS

UK Finds Distracted Officer Chatting Online Caused Collision Killing Two

The UK Marine Investigation Branch released its Accident Report on the December 2021 fatal collision between a UK-registered cargo ship and a small Danish hopper barge off Sweden that resulted in the death of the crew of the Danish vessel. The report is the latest instance of a distracted crewmember using a personal electronic device causing an accident while it also finds that alcohol could have influenced decisions and neither vessel was following international standards and requirements for nighttime lookouts.

The collision happened at 0327 on December 13, 2021, in the traffic separation lanes between Sweden and Denmark. The Scotline vessel Scot Carrier (4,789 dwt) was sailing between Latvia and Scotland with a crew of eight and transporting a load of timber. Traveling in the same direction in the lanes was the Karin Høj, a small (492 dwt) hopper barge with silt and water as ballast and a crew of just two people. Its minimum safe manning was four.

Using data from the Scot Carrier, which was fitted with a voyage data recorder, the MAIB reconstructed the events noting it was focused on safety and not legal prosecution, which was undertaken separately in Denmark. The smaller vessel did not have a data recorder so they had to rely on AIS data, coastguard surveillance, radio communications, and the subsequent search and rescue and survey of the ship.

The second officer of the Scot Carrier was on the watch having assumed it from the master at 23:00. The vessel’s chief officer had been removed from his watch because the master believed he smelled alcohol on the CO’s breath during a dinner break.

The Scot Carrier was traveling at approximately 12 knots and they reported the weather conditions and visibility were good. The second officer was alone on the bridge and the vessel was on autopilot so he sporadically watched a video, listened to music, and around 0148 started using his tablet computer entered a chat site, and randomly chatted with strangers. He at times turned on the lights on the bridge or outside to show the people he was chatting with his situation, before around 0200 altering course at the predetermined waypoint. He went back to chatting with several random individuals on the site.

At approximately 0300 the Scot Carrier’s AIS system identified the Karin Høj as a dangerous target. The larger ship had been overtaking the smaller ship for some time, but the alarms on the navigation systems were turned off on the Scot Carrier. At 0322, while chatting the second officer again made a pre-determined course change and this time the MAIB believes he did not check his surroundings. About four minutes later he is heard exclaiming “Wait, Wait, Wait,” as he pulls back the main engine propeller pitch control, switches on a second steering motor, and disengages autopilot. He then puts the ship into full astern. Less than a minute later, the Scot Carrier collided with the port side of the Karin Høj at a speed of 8.7 knots, and the smaller ship rolled and capsized. The captain of the Danish ship was later found near his cabin raising the belief that he had begun to respond to the collision and the body of the mate who should have been on the bridge was never found.

On the Scot Carrier, the second officer is heard exclaiming “Oh, my god!” and is reported to be pacing. Instead of stopping, he steers the ship and ultimately goes back on course. When an engine alarm sounds, he denies anything is wrong and it is only 17 minutes after the collision that the master is alerted. That is only after the Swedish Coastguard contacted the ship and began questioning its actions. The Scot Carrier does return to the scene of the collision and is later ordered into port in Sweden.
The UK investigation finds a litany of issues beyond the distraction. The second officer had consumed several beers at dinner and later blood tests showed he was most certainly over the legal limit but had not displayed any outward signs during the handover from the master. The Scot Carrier did not have a lookout as required by law and company policy during hours of darkness.

It is harder for the MAIB to make definitive comments on the Karin Høj because of the lack of data or survivors. However, they point out the ship had initially sailed with three crewmembers, but the Able Seman had disembarked the day before the collision to join another company ship. The vessel also did not have a nighttime watch on the bridge and appears to have been on autopilot. They believe the officer on the bridge while aware they were being overtaken did not see the danger but he may have reacted moments before the contact.

The Courts of Denmark convicted the Scot Carrier’s second officer of manslaughter and maritime drunkenness. He was sentenced to 18 months’ imprisonment.

The MAIB lists a series of recommendations in the report, starting with the unmet requirement for lookouts during hours of darkness. They also cite Scotline for the alarms being turned off and the violation of the alcohol policy in two unrelated incidents on the same day, i.e. the chief officer and the second officer. The report finds while he was not incapacitated, the second officer’s actions were likely influenced by his alcohol consumption. The report also cites the falsification of hours and rest records on the ship.

The operator of the Karin Høj has reiterated rules and the safe manning standards to its masters. Intrada Ship Management which was managing the Scot Carrier issued reminders on rules including the use of personal electronics, amended rules on lookouts, started comprehensive audits on navigational practices, and increased random drug and alcohol screening.

Maersk Gets Short-Term Green Methanol Supply from Equinor for Feeder Ship

methanol supply Maersk — Maesk's feeder ship fueled at several ports including Singapore and at the Suez Canal before arriving in Europe (MPA Singapore)

Maersk has secured a short-term supply of green methanol to help the company launch its new feeder ship which is also seen as a demonstrator for the future of net zero operations for the company and the shipping industry. Ever since Maersk ordered the first of its dual-fuel methanol containerships, the company has said the challenge would be building the infrastructure and supply of clean fuels for the ships.

Under the terms of the agreement with Equinor, which has established methanol production at its Tjeldbergodden plant in Norway will be supplying green methanol that meets Maersk’s goals of low lifecycle greenhouse gas emissions of 65 to 80 reductions compared to fossil fuels or very low emissions which will be between an 80 and 95 percent reduction to fossil fuel. Equinor regards the agreement as a step in its ambitions to be a key provider of green methanol in the marine fuel segment.

The new 2,100 TEU feeder ship is the first containership to be built with dual-fuel engines to operate with methanol as its primary fuel. It was built in South Korea and recently completed a more than 11,000 nautical mile trip to Rotterdam using green fuel. After its official naming ceremony and events to mark the beginning of the new era in container shipping, the vessel will enter service on Maersk’s Northern Europe loop into the Baltic Sea.

The agreement with Equinor will provide bio-methanol produced from biogas from manure, which will be bunkered in Rotterdam. According to the company, the biogas is upgraded to bio-methane and injected into the existing gas grid. The methanol is produced from the bio-methane in the grid on a mass-balance basis. The green methanol is produced in existing infrastructure and plants, using the existing European biogas certificate system, enabling a quick route to market.

The green fuel will be used during the feeder ship’s initial months of operation from September 2023 and into the first half of 2024. Long term, the vessel will be fueled by e-methanol from a plant in Southern Denmark, operated by European Energy, which is expected to come on-stream in the first half of 2024.

The company aims to have a quarter of its ocean operations using green fuels by 2030. The feeder ship will provide a learning platform for the operations and operational training for future crews. Maersk has 24 additional methanol vessels on order for delivery between 2024 and 2027 and has a policy to only order new, owned vessels with a green fuel capability.

In the upcoming events next week in Copenhagen, Maersk will be highlighting its ambition to reach a target of net zero greenhouse gas emissions by 2040. The company is working to support the growth of the e-methanol supply and infrastructure with broad partnerships and investments in an emerging global network.

Salvage Completed on Fire-Damaged Car Carrier Fremantle Highway

Fremantle Highway salvage — The salvage was completed removing all of the possible car and debris from the fire-damaged ship (Netherlands Ministry of Defense)

The salvage operation to remove cars and debris from the fire-damaged car carrier Fremantle Highway has been completed. It is thought that as many as 1,000 vehicles may have been removed mostly from the lower decks of the ship and many appeared undamaged while others were burnt and at least one caught fire on the dock.

“We have returned the ship to the owner,” a spokesperson for Boskalis which was leading the salvage operation with Multraship told Dutch media today. The salvage companies reported that the operation went mostly without incident and that they had done as much as possible.

Boskalis acknowledged that at least one car thought to be electric caught fire while it was being removed from the ship. Images appeared on Dutch TV of a Mercedes-Benz, likely an EQE Sedan or EQS (they look the same at a distance) being hoisted off the ship. While it looks fine it is lowered into a steel bin and firefighters can be seen spraying water into the bin and steam rises. They then cover the bin with a tarp to cut off oxygen to the fire – a standard method accepted for fighting battery fires on EVs.

TV images showing one of the smoldering cars placed into the bin

A Boskalis spokesperson told the Dutch media the company had been prepared for all the risks including the possibility of some of the cars starting to burn. Experts are saying the batteries were likely overheated and removing the cars from the enclosed spaces permitted them to overheat and start burning.

During the salvage operation, all the cars were washed to remove any chemicals or residue from the fire before they came off the ship. TV images showed apparently undamaged gasoline-powered cars or possibly hybrids being driven off the ship through a side ramp. Others damaged in the fire or possibly the EVs were being hoisted off by crane. The cars were being placed in a secure lot on the dock for insurers to determine their fate while the wash water was contained on the ship for proper disposal.

While the fire is still officially listed as under investigation, the trade Automobilwoche contends the preliminary survey and report say apparently the fire was not caused by electric cars. The manifest showed there were 498 electric vehicles and hybrids and a total of 3,784 vehicles including some heavy equipment in addition to cars.

The trades are reporting from the images and information they can glean that the largest number were from BMW, which may have had more than 1,000 vehicles abroad. Cars being transported to the destination which was Singapore included MINIs, Rolls-Royce, Porsche, and maybe a small number from the Volkswagen group. The lower decks were less impacted, while cars on the upper decks were reportedly heavily charred and many melted into the decks. Portions of the decks are reported to have been weakened in the fire to make them unsafe for access now.

It is unclear what the vessel’s owners, Shoei Kisen Kaisha and charterer K Line plan for the ship. The Dutch media reports the ship is expected to remain for the next few weeks in the ports of Eemshaven, but port executives are saying it must leave by October 14. The berth where she is sitting reportedly has been promised to a cruise ship, likely the Carnival Jubilee, which is due to make the conveyance from Meyer Werft in Papenburg and will be completed before handover to Carnival Cruise Line.

Commercial Ships Carrying Grain are Getting Air Support from UK's RAF

UK Prime Minister Rishi Sunak revealed today that the UK is undertaking efforts to support commercial shipping in the Black Sea transporting grain from Ukraine and deterring Russian attacks on cargo ships. This comes as Russia has continued its nightly attacks on Ukraine’s Black Sea and Danube seaports despite continuing calls to resume the grain agreement.

On the eve of the G20 Summit starting in India, the prime minister’s office announced a series of new initiatives by the UK designed to promote global food security and respond to “Putin’s weaponization of Ukrainian grain.” The UK blames a spike in global food prices on Russia’s actions highlighting that since “Putin’s decision to rip up the initiative,” Russia has declared that all ships transiting to Ukrainian Black Sea ports are treated as military vessels irrespective of the cargo they are carrying.

In response, the UK said as part of its surveillance operations, “the Royal Air Force (RAF) aircraft are conducting flights over the area to deter Russia from carrying out illegal strikes against civilian vessels transporting grain.” The UK notes that Russia however did fire shots and board one cargo ship bound for one of Ukraine’s Danube ports, “Actions which may constitute a violation of International Humanitarian Law,” they said in their statement.

Since July, the UK assesses that Russia has also damaged or destroyed at least 26 civilian port facilities, warehouses, silos and grain elevators. These attacks they believe have directly reduced Ukraine’s export capacity by one-third and destroyed enough grain to feed more than one million people for an entire year.

Ukrainian officials highlight that the attacks are continuing with reports that 14 drones were destroyed over the Odesa region, including the Danube ports, on Thursday night. The Deputy Chairman of the Ukrainian Agrarian Council told the BBC that more than 270,000 tonnes of grain have been destroyed during the recent attacks. The attack on Wednesday night into Thursday morning lasted three hours with additional damage to grain silos and conveyors.

Before the war, the UK reports Ukraine was the world’s fifth largest wheat exporter, fourth largest corn exporter, and third largest rapeseed exporter. Grain accounted for 41 percent of Ukrainian export revenue, and almost two-thirds of the grain exported by the country goes to the developing world, said Sunak.

“We will use our intelligence, surveillance, and reconnaissance to monitor Russian activity in the Black Sea, call out Russia if we see warning signs that they are preparing attacks on civilian shipping or infrastructure in the Black Sea, and attribute attacks to prevent false flag claims that seek to deflect blame from Russia,” Sunak said outlining the UK efforts.

In November, the UK supported by the Bill & Melinda Gates Foundation and the Children’s Investment Fund Foundation, will convene an international food security summit. The focus will be on tackling the causes of food insecurity and malnutrition. In addition, the UK will contribute £3 million to the World Food Program.

These efforts came as Ukraine reported it is expanding grain exports from the ports in neighboring Romania and now Croatia. Ukraine’s First Deputy Prime Minister admitted that Croatian ports are a “niche trade route,” but said it is popular and they look to increase exports along this route. Romanian previously said it was expanding access from the Danube to its seaport of Constanta. This is happening as Russia has not shown any willingness to restart the Black Sea grain agreements.

Barclays to cut hundreds of jobs across trading, investment bank

Jan-Henrik Förster, Harry Wilson and Irina Anghel, Bloomberg News

C.S. Venkatakrishnan , Photographer: Christopher Goodney/Bloomberg

Barclays Plc is preparing to cut hundreds of jobs as soon as next week as the firm looks to trim costs amid quieter markets.

The lender is planning to dismiss about 5 per cent of client-facing staff in the trading division as well as some dealmakers globally as part of the cuts, according to people familiar with the matter. Separately, the firm is also preparing to restructure teams within its U.K. consumer-banking unit, the people said, asking not to be named discussing personnel information.

“We do not comment on speculation,” Barclays said in a statement. “We regularly review our operations to ensure we meet the evolving needs of our customers and clients in an efficient and effective way.”

Barclays Chief Executive Officer C.S. Venkatakrishnan has been under pressure to boost profits and improve the bank’s share price. As part of that, he’s vowed to reduce expenses across the firm and embarked on a wide-reaching review of strategy.

The moves are part of the bank’s annual culling of underperformers in its markets division and corporate and investment bank, the people said. Goldman Sachs Group Inc. is also planning to begin those annual cuts as soon as next month.

Barclays and its rivals have been contending with a slowdown in trading revenue compared to a year ago, when Russia’s invasion of Ukraine juiced volatility across markets.

Despite the impending cuts, the bank has hired more than five dozen managing directors and directors for the markets division since the start of the year, including Scott McDavid, who joined as global head of equities, and Igor Cashyn, who’s the bank’s head of US inflation trading. Torsten Schoeneborn, co-head of Group of 10 foreign-exchange trading, also joined from BNP Paribas SA.

Barclays is reeling from higher-than-usual attrition among dealmakers, which Venkatakrishnan has attributed to the firm naming two new global co-heads of the business. In response, the company has hired more than 30 managing directors and directors across the banking division.

“When you do that kind of organizational change, sometimes it has impacts,” Venkatakrishnan said in a Bloomberg Television interview in June. “We’re losing a few investment bankers, but not that much more than what is normal annual turnover.”

Still, the planned dismissals come in the midst of a prolonged dip in deals and capital markets. Barclays and rivals have been hit by the slowdown following aggressive interest-rate increases by central banks around the world seeking to tame inflation.

In response, the company earlier this year already cut about 100 roles in its investment-banking group. The London-based bank previously eliminated about 200 jobs in the division in November.

U.K. banking changes

Venkatakrishnan has been vocal about his desire to make Barclays more efficient, and the firm is seeking to lower its cost-to-income ratio, a measure of how much it costs to produce a dollar of revenue. As a result, the company already spent about £63 million (US$78 million) in firmwide restructuring and redundancy costs in the first six months of the year.

“We have also continued to exercise cost discipline against this backdrop by capturing efficiency savings to manage inflation, and by being thoughtful and careful about how we invest in our businesses,” Venkatakrishnan told investors in July.

Barclays has begun discussions with the U.K. union Unite as it seeks to streamline operations in its U.K. banking unit, the people said. Those changes will likely result in some roles being eliminated, though employees may be offered roles elsewhere in the company, they said.

The firm’s U.K. division is home to a mortgage business as well as personal and business banking.

“We are focused on capturing cost efficiencies,” Barclays Finance Director Anna Cross said on the July call. “For example, in Barclays U.K., we are investing in transformation to improve service for our customers by automating, digitizing and simplifying our offerings, whilst also driving a lower cost-to-income ratio over time.”

CRIMINAL CAPITALI$M

Kroger agrees to pay up to US$1.4 billion to settle opioid lawsuits

Geoff Mulvihill, The Associated Press

A Kroger grocery store in Houston, Texas. Photographer: Mark Felix/Bloomberg , Bloomberg

One of the nation's largest grocery chains is the latest company to agree to settle lawsuits over the U.S. opioid crisis.

In a deal announced Friday, the Kroger Co. would pay up to US$1.4 billion over 11 years. The amount includes up to $1.2 billion for state and local governments where it operates, $36 million to Native American tribes and about $177 million to cover lawyers' fees and costs.

Kroger currently has stores in 35 states — virtually everywhere save the Northeast, the northern plains and Hawaii. Thirty-three states would be eligible for money in the deal. The company previously announced settlements with New Mexico and West Virginia.

Over the past eight years, prescription drug manufacturers, wholesalers, consultants and pharmacies have proposed or finalized opioid settlements totalling more than $50 billion, including at least 12 others worth more than $1 billion. The U.S. Supreme Court is set to hear arguments later this year on whether one of the larger settlements, involving OxyContin maker Purdue Pharma, is legal.

Most of the settlement money is to be used to address an overdose epidemic linked to more than 80,000 deaths a year in the U.S. in recent years, with most of the latest deaths connected to illicit synthetic drugs such as fentanyl rather than prescription painkillers.

Still, Jayne Conroy, a lead lawyer for the governments suing the companies, told The Associated Press in an interview Friday that it makes sense for players in the prescription drug industry to have a major role in funding solutions to the crisis.

“It really isn’t a different problem,” she said. “The problem is the massive amount of addiction. That addiction stems from the massive amount of prescription drugs.”

The companies have also agreed to change their business practices regarding powerful prescription painkillers, consenting to restrictions on marketing and using data to catch overprescribing. Conroy said those noneconomic terms for Kroger have not been finalized, but they'll look like what other companies have agreed to.

Kroger said it intends to finalize its deal in time to make initial payments in December.

The company would not admit wrongdoing or liability as part of the deal, which is called in a statement a milestone in efforts to resolve opioid lawsuits. “Kroger has long served as a leader in combatting opioid abuse and remains committed to patient safety,” the company said.

While most of the biggest players have settled, the opioid litigation is continuing. Cases are being prepared for trial involving the supermarket chains Publix and Albertsons, the latter of which is attempting to merge with Kroger. Pharmacy benefit managers such as Express Scripts and OptumRx also face opioid claims from governments.

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