With new ships, Canada aims to be ‘icebreaking superpower’


By AFP
March 12, 2026


Polar Icebreaker under construction at Seaspan Shipyards in Vancouver - Copyright AFP Nav Rahi
Nav Rahi with Ben Simon in Toronto

At a massive shipyard in North Vancouver, Canadian workers grind metal beams for a powerful new icebreaker crucial to cementing the country’s presence in the increasingly contested Arctic.

Icebreakers are specialized, expensive vessels able to navigate in the frozen far north.

And “this is the crown jewel,” Eddie Schehr, vice president of production at the Seaspan shipyard, told AFP.

For Prime Minister Mark Carney, who heads to Norway on Friday to observe Arctic defense drills involving troops from 14 NATO states, Canada’s extreme north has emerged as a strategic priority.

“Canada is, and forever will be, an Arctic nation,” he said ahead of the trip.

During a stop in Canada’s Northwest Territories before flying to Norway, Carney announced nearly CAN$35 billion ($25.7 billion) in Arctic funding, with most of the funds dedicated to upgrading existing military infrastructure.

“We cannot rely on other nations for our security,” he said. “We are securing every corner of this terrain.”

Concerns about Russian aggression, especially after the invasion of Ukraine, have focused attention on the Arctic, where territorial sovereignty is disputed in several areas.

Climate change is intensifying competition, with previously inaccessible minerals increasingly available for exploitation as the ice thaws and new shipping routes open.

For Wesley Wark, a national security expert at the Center for International Governance Innovation, icebreaker fleets are a key part of the defense innovation required to safeguard Canada’s position.

“We’re in the business of trying to reassert ourselves as an icebreaking superpower,” he told AFP.



– ‘Crown jewel’ –



Two new ships are under construction, each costing more than CAN$3 billion.

One, partly being built in Finland, is due for delivery in 2030.

The other vessel, set to be ready in 2032, is being made at the Seaspan shipyards in North Vancouver.

Senior vice president Dave Hargreaves said Canada’s existing icebreaking fleet is “getting old.”

And this ship, he said, “gives Canada the ability to have a strong presence in the Arctic, which is where you start.”

Canada’s decision to upgrade its icebreaker fleet preceded US President Donald Trump’s return to office.

But Carney has delivered stark warnings about new risks from United States since entering Canadian politics last year, including a claim from last year’s federal election campaign that Trump wanted to “break us so America can own us.”

Wark told AFP that Canada’s challenge in the Arctic has two main planks.

First, Carney’s government wants “to show that it’s a strong NATO partner and to take part in NATO collective security,” he said, adding that NATO is “deeply concerned about Russian activities in the Arctic.”

Russia has the world’s largest icebreaker fleet by far — Canada is a distant second — and Wark said Carney wants to signal both to a domestic audience and allies that Canada can defend NATO’s “Arctic flank.”



– ‘Hard power capacity’ –



Canada must also consider that “the United States itself potentially represents a danger to Canadian security,” Wark said.

Trump has discussed annexing Canada at various points in his second term. He again mocked Carney as the “governor” of a US state this week, renewing a taunt he first levelled at former prime minister Justin Trudeau.

Wark maintains the chance of direct military confrontation with the United States is low.

The more immediate risk is that Washington may conclude Canada is incapable of defending the Arctic, compelling the US military to take charge, he said.

“I think Canadian officials have come to understand that the United States administration, Trump, people around Trump in positions of power and influence, do not hold Canada in high regard as a country… essentially arguing Canada has no military,” he said.

For Canada, “the incentive to increase its hard power capacity is partly driven by those American concerns,” Wark further said, while stressing that, “whatever the Trump administration might say, Canada is not a military freeloader.”

Unlike Russia, Canada has no intention of arming its icebreakers.

But the ships are designed to operate in the harshest Arctic conditions, equipped for intelligence gathering, search-and-rescue as well as scientific exploration.

The Seaspan ship “can go anywhere in the Canadian Arctic any time of the year, which is a very difficult requirement to meet,” Hargreaves said.

Space medicine: How micro-gravity promises a new pharmaceutical revolution

By Dr. Tim Sandle
SCIENCE EDITOR

DIGITAL JOURNAL

March 13, 2026


The International Space Station will be guided back to Earth in 2030, marking the end of its three-decade mission - Copyright AFP/File Chanakarn Laosarakham

Space medicine is a mix of specialised developments focused on maintaining astronaut health, safety, and performance in extreme environments, and with developing medicines for the benefit of humans under microgravity conditions. For astronauts, challenges requiring medicinal intervention include microgravity-induced bone loss, radiation exposure, and motion sickness.

For more general medicines, micro-gravity provides opportunities for scientists to investigate the special properties of the environmental condition on different candidate drug products.

Micro-gravity

The special properties of a microgravity environment enable more precise drug formulation, particularly for biologics and protein-based drugs such as monoclonal antibodies, vaccines, or insulin.  The conditions alter cellular and biochemical processes in ways that can’t be replicated on the ground. For this reason, several countries are investigating space medicine and are optimising how this can be achieved efficiently.

Microgravity is defined as a state of near-weightlessness occurring during continuous free-fall, such as in orbiting spacecraft. These conditions are used for studying fluid physics, material science, and biological processes (e.g., bone loss, stem cells).

In terms of medical research advantages, microgravity conditions can improve drug solubility, purity, crystallisation and stability supporting more effective delivery and potentially lowering manufacturing risk and cost.  Hence, in-orbit manufacturing of pharmaceuticals offers transformative potential across multiple domains.

Another area is with the testing of drug delivery systems (e.g., Gaucho Lung) and studying the impact of spaceflight on human health, such as muscle atrophy, bone density loss, and cardiovascular changes.

The NASA logo is displayed at the Earth Information Center exhibit – Copyright AFP/File Stefani REYNOLDS

In another example, according to Astrobiology, Wicking in Gel-Coated Tubes (Gaucho Lung) investigation studies fluid transport within gel-coated tubes to learn more about treatment programs for respiratory distress syndrome and develop new contamination control strategies. A working model is on board the International Space Station.

The experiment studies how mucus acts and behaves in the lungs under microgravity conditions, focusing on the movement of a “liquid plug” through gel-coated tubes.
Regulations

As well as scientific advancement, regulators of medicinal products need to consider how the approach the growth in space medicine. In one example, the UK Space Agency, the Medicines and Healthcare products Regulatory Agency (MHRA), and other agencies are working collaboratively to provide a supportive regulatory environment to space, biopharma and pharmaceutical companies through collaborative work on guidance, regulatory sandboxes, case studies and supply chain engagement.

This comes in the context of the news that the UK Space Agency is providing funding for three in-orbit manufacturing feasibility studies including a £250,000 feasibility study for BioOrbit, a pioneering start-up that is designing a scalable in-orbit manufacturing system to crystallise biologic drugs for cancer treatments.

Electric vehicle rethink to cost Honda almost $16 billion


By AFP
March 12, 2026


Honda warned that expected to bokk losses of almost $16 billion in this fiscal year - Copyright AFP/File Kazuhiro NOGI

Japan’s Honda said Thursday it expected to book nearly $16 billion in expenses and losses related to a major reorientation of its electric vehicle (EV) strategy, blaming US policy changes and tariffs.

“Honda believed EVs would be the optimal solution from a long-term perspective. Based on this belief, Honda shifted its strategic direction toward the popularisation of EVs,” the firm said.

But it added that the profitability of its auto business was declining because of “the United States government policy shift including the imposition of import tariffs”.

It also pointed to the abolition of US tax incentives for EV purchases and the easing of fossil fuel regulations, as well as a decline in the competitiveness of its products in Asia.

It said that in response to the slowdown of the EV market in North America, it had decided to cancel the launch and development of certain electric models there.

Resulting expenses and losses related to the reassessment of its EV strategy, including expected losses for the current fiscal year, would be up to 2.5 trillion yen ($15.7 billion), Honda said.

These come from impairment and write-off losses on assets that were intended to be used for the production of these vehicles, the firm added.

It also said it could write down investments in China prompted by intensified competition there.

It forecast a net loss of between 420 billion and 690 billion yen for the year to end-March, compared with an earlier profit projection of 300 billion yen.

Uber plans Tokyo robotaxi trial with Nissan and Britain’s Wayve


By AFP
March 12, 2026


Nissan CEO Ivan Espinosa (L), Wayve Technologies CEO Alex Kendall (C) and Uber Technologies head Sarfraz Marediastand next to a prototype vehicle in Tokyo - Copyright AFP Kazuhiro NOGI

Uber announced Thursday its first robotaxi partnership in Japan, teaming up with Nissan and British artificial intelligence autonomous driving startup Wayve for a trial this year in Tokyo.

Companies worldwide, from Alphabet subsidiary Waymo to Tesla and China’s Apollo Go, are racing to roll out self-driving taxi services, although the actual level of autonomy on offer varies.

Wayve — which announced an $8.6 billion valuation last month — is a pioneer in the development of vehicle AI that learns from the environment instead of relying on pre-mapped routes.

Nissan is integrating Wayve’s AI-powered systems into its cars, and Uber and Wayve are already planning commercial robotaxi trials in London this year.

The three companies said Thursday they plan a pilot deployment of robotaxis in Tokyo “by late 2026” subject to approval from authorities.

A trained safety operator will be in the Nissan car as part of the trial.

“This will be an experience where AI will drive the vehicle, you can hail it through the Uber app, and it will be supervised by a safety operator,” Wayve co-founder Alex Kendall told a news conference.

Wayve’s robotaxi rollout with Uber “includes planned services across more than 10 cities worldwide, including London”, the companies said.

Tokyo is “one of the world’s most challenging markets” for robotaxis due to its “dense traffic patterns, complex road layouts and high safety standards”, they added.

Wayve has said it intends to deploy its autonomous driving software in consumer vehicles made by Nissan in fiscal 2027.

Nissan is on a bumpy road to recovery after being squeezed by an ultra-competitive business environment and US trade tariffs — just a few years after former boss Carlos Ghosn’s shock arrest and escape from Japan.

Fantastic Mr Stowaway: Fox sails from Britain to New York port

By AFP
March 12, 2026


There are tens of thousands of urban foxes in Britain, according to academic research - Copyright AFP LOIC VENANCE

A red fox that managed to slip onto a US-bound ship in Britain was discovered by customs officers in the Port of New York, a zoo in the city has said.

The animal that zookeepers believe to be around two years old somehow boarded a vessel in Southampton, England, and was detected on arrival at the Port of New York and New Jersey, the Bronx Zoo said late Wednesday.

Once veterinarians give the 11-pound male fox a clean bill of health, zookeepers said they would be looking for a long-term home for the animal, which is said to be doing well.

“The Bronx Zoo regularly works with officials to help rescue wildlife that is illegally trafficked through nearby ports and airports,” the zoo said.

Red foxes are one of the most prevalent carnivorous mammals globally and are found in Europe, Asia and North America as well as in parts of Africa.

There are tens of thousands of urban foxes in Britain, according to academic research, and Britain has some of the highest-density fox populations in the world.

They have been a part of the city landscape since the 1930s, when urban sprawl began to encroach on their rural territory.

World in ‘new dark age’ of abuse: UN rights expert

By AFP
March 12, 2026


The shadows of US President Donald Trump and Russian President Vladimir Putin seen at their 2025 summit in Anchorage - Copyright AFP Andrew CABALLERO-REYNOLDS

Robin MILLARD

The world has entered a “new dark age of abuses”, with the United States “raining death” on Iran and Venezuela, a UN special rapporteur said Thursday.

Ben Saul, the United Nations’ special rapporteur on the promotion and protection of human rights and fundamental freedoms while countering terrorism, said the war in the Middle East would not improve global security.

“We have entered a new dark age of abuses in the name of countering terrorism,” he told a press conference in Geneva.

“Recently, it has excused naked aggression and renewed imperialism against Iran and Venezuela, raining death and violating the right to life and making the world less safe.”

On February 28, the US and Israel launched the first wave of attacks in a war that has seen Iran strike targets in multiple countries around the Gulf.

Saul slammed the UN Security Council for passing a resolution on Wednesday “which failed to condemn Israeli and US aggression, contrary to international law, and instead condemned the excessive and unlawful response only of Iran”.

Among other justifications, US President Donald Trump has said the Middle East war is about ensuring that “the world’s number-one sponsor of terror” can never obtain a nuclear weapon.

“Nobody knows how this is going to end and when we look at the last series of US-led interventions — Libya, Iraq, Afghanistan — these were all disasters,” said Saul.

“It’s a recipe for further destabilisation, possible insurgency, fragmentation politically within Iran, in the region; destabilisation of neighbours through refugee flows.”

He added: “It’s very disturbing that at the moment you’re seeing states kind of all over the map sympathising with these attacks, not calling it as illegal, or calling it as illegal but then saying we support the US anyway.”



– Silence ’emboldens bullies’ –



Special rapporteurs are independent experts mandated by the UN Human Rights Council to report their findings. They do not, therefore, speak for the UN itself.

Iran’s attacks on its Gulf neighbours since February 28 “are clearly illegal under international law: they’re not mounting aggression against Iran; they can’t be attacked in response”, said Saul.

As for Venezuela and “the declaration of a new phoney war on narco-terrorism”, Saul said the US had extra-judicially killed 151 civilians on the high seas, which “is utterly illegal under international law”.

He said few countries had spoken out against the attacks because they were afraid of US retribution.

“But the more the international community remains silent… the more it emboldens bullies like the United States and Israel.”

Saul wants countries to urgently adopt an international definition of terrorism to protect human rights from terrorism and excessive state responses to it.

He said vague and overbroad definitions had led to countless rights violations, with the abuse of counter-terror laws becoming the tool of choice to suppress critics.

Middle East turmoil revives Norway push for Arctic drilling


By AFP
March 14, 2026


Norway wants to dig into the reported huge oil and gas reserves in its Arctic regions - Copyright US ARMY/AFP -

Pierre-Henry DESHAYES, with Adrien DE CALAN in Brussels

Already the continent’s biggest single supplier of natural gas since Russia invaded Ukraine, Norway is hoping to use the Middle East war to get European Union blessing to drill in the Arctic.

The European Commission is revising its Arctic strategy, which has since 2021 committed the EU to work towards an international moratorium on oil and gas drilling in the region.

With Iran blocking the Strait of Hormuz — a crucial conduit for oil and gas deliveries — Norwegian politicians and business circles have been quick to lobby for the planned ban to be scrapped.

“They’re taking advantage of the situation to apply pressure,” said Anne Karin Saether, project manager at the Norwegian Climate Foundation, an independent body that promotes science-backed climate policies.

Ahead of Monday’s close of the European Commission’s public consultation, Norway — which is not an EU member but is closely aligned on many issues — has seized every opportunity to extol the virtues of stable energy supplies from a democratic and peaceful country.

Even if that means drilling in the Arctic.

“Against the backdrop of Ukraine and Iran, it may now be even easier to scare European policymakers,” said Truls Gulowsen, head of the Norwegian Society for the Conservation of Nature.



– Lobbying efforts –



“We’ve noticed the lobbying efforts from the Norwegian oil industry,” a European diplomat in Brussels told AFP.

“My sense is they are concerned about restrictions on oil and gas extraction. Drill, baby, drill, in other words,” he said.

Norway supplies nearly a third of Europe’s gas needs, after the war in Ukraine cut Russian gas deliveries.

The Scandinavian country has only two gas fields above the Arctic Circle, Snohvit and Aasta Hansteen. But Oslo is encouraging exploration.

In January, the government proposed opening 70 new blocs to prospecting, more than half of them in the Arctic waters of the Barents Sea.

According to the Norwegian Offshore Directorate, Norway’s undiscovered resources are estimated at 3.48 billion cubic meters of equivalent oil and gas, 60 percent of which are believed to be in the Barents Sea.

“Norway generally makes a point of sharing its knowledge about the country with Brussels so that EU member states have the best possible basis for making their decisions,” Norwegian Energy Minister Terje Aasland told AFP.

“The fact that there is a war in the Middle East today has nothing to do with Norway’s position on oil activities in the North,” he insisted.

Stressing that the EU and Britain now buy “all the oil and gas” that Norway produces in the Barents Sea, Aasland argued that “prices would have been much higher” without these resources.

In remarks seen as possibly pressuring EU countries, Aasland warned last week that the Middle East conflict could lead the EU to reconsider its position on doing without Russian oil and gas.

Norway’s Confederation of Trade Unions has also called for more Arctic exploration.

One of its representatives in Brussels, Nora Hansen, stressed “the importance of jobs and of keeping people in the northern regions”, seeing these as a security guarantee against neighbouring Russia.



– Risk of sabotage –



“Even if the EU abandons its proposed moratorium, it will in any case take several decades before new oil and gas activities in the Arctic begin production,” said Karoline Andaur, the head of WWF Norway.

Although the European Commission’s revised Arctic strategy is only due to be published in the second half of the year, it has already said that, at least for now, its “position has not changed” on an Arctic hydrocarbon moratorium.

But some fear there will be compromises and concessions.

Noting that its waters are ice-free thanks to the Gulf Stream, the Norwegian consultancy Rystad Energy has, for example, suggested excluding the Barents Sea from the EU’s definition of the Arctic.

That would be a bad idea, Saether warned, citing environmental and climate-related objections: according to the International Energy Agency, global deposits of oil and gas already discovered or being exploited are sufficient to meet demand compatible with climate targets.

A Norwegian Climate Foundation report, entitled “The Barents Sea at Stake”, also highlighted security challenges.

Because of its proximity to Russia, the area would be an easy target for Russia, which is keen to maintain its dominant position in the Arctic.

“This makes us particularly vulnerable, because Russia, with some pretty simple sabotage against gas pipelines up there, could strike not only Norway but Europe as well,” Saether said.

“We would become a more tempting target.”

Democrats accuse Trump of aiding Russia with sanctions relief

By AFP
March 13, 2026


Russia relies on a shadow fleet of tankers to get past Western restrictions on its oil exports - Copyright AFP/File Damien MEYER

Democrats accused US President Donald Trump on Friday of weakening pressure on Russia by easing oil sanctions amid the conflict with Iran, saying the move risks boosting Moscow’s war revenues while American troops face threats of their own in the Middle East.

Senate Democratic Minority Leader Chuck Schumer and two of his top lieutenants, Elizabeth Warren and Jeanne Shaheen, called for Treasury Secretary Scott Bessent to testify before Congress about the decision.

The senators noted media reports — partially endorsed by Trump in an interview on Friday — said Russia is providing Iran with intelligence that could be used to target US forces, even as the Trump administration loosens sanctions that constrained Moscow’s oil sector.

“Russia is reportedly providing Iran intelligence to target and kill US servicemembers and the Trump administration’s response has been to loosen pressure and help facilitate a windfall of $150 million each day for its war machine,” the senators said in a joint statement.

“President Trump is offering more relief to the Kremlin than he is to American families, who are now paying more at the pump and for most other essentials because of this conflict.”

Trump said in a radio interview that aired Friday he suspected Putin “might be” aiding Iran “a little bit” in the war.

He announced earlier this week that Washington would waive some oil-related sanctions in order to boost global supply and bring down prices, as the US-Israeli war with Iran disrupts shipping through the Strait of Hormuz and sends energy markets into turmoil.

The president did not specify which countries would benefit from the relief, but the move followed temporary steps allowing Indian refiners to purchase Russian oil that had been stranded at sea under existing sanctions.

The Democratic senators argued that relaxing sanctions on Russian energy companies and related traders would generate major profits for Moscow at a time when the Kremlin remains under Western pressure over its invasion of Ukraine.

They also questioned whether the administration had complied with a US law requiring Congress to be notified before sanctions on Russia are eased.

“Secretary Bessent needs to testify because Congress and the American people deserve immediate answers,” the lawmakers said.

Why is the dollar profiting from Middle East war?


By AFP

March 14, 2026


The surge in energy prices triggered by the conflict in the Middle East has significantly strengthened the dollar - Copyright GETTY IMAGES NORTH AMERICA/AFP/File MARK WILSON

Lucie LEQUIER

The surge in energy prices triggered by the conflict in the Middle East has significantly strengthened the dollar, paradoxically undermining US President Donald Trump’s economic objectives.

AFP looks at the reasons behind the greenback’s rise against rivals.

– King of oil –

At the start of the conflict almost two weeks ago, investors began massively selling assets, turning to energy investments in anticipation of a supply crisis — and to the dollar — the currency used to price oil and gas.

Attacks on Gulf infrastructure and the blockade of the strategic Strait of Hormuz has propelled the price of Brent North Sea crude, the global benchmark, by more than one third to around $100 per barrel.

With more dollars needed to purchase oil, the greenback has appreciated by around 2.5 percent since the start of hostilities, according to the Dollar Index, which compares the US unit to a basket of major currencies.

The dollar, seen as a highly liquid asset owing to it being readily available and exchangeable, is seen also as a leading safe haven investment.

It is favoured for international trades as well as foreign exchange reserves held by central banks.

– The US spared –

The United States has so far been spared from the oil supply crisis thanks to the country being the world’s leading producer of crude.

Although it still imports the commodity, the US purchases only eight percent of its requirement from the Gulf, compared with nearly two-thirds from Canada, according to the most recent official data from the US Energy Information Administration.

Rising oil prices tend to support the dollar also thanks to the US being a net exporter of refined petroleum products and gas, in turn boosting the nation’s trade balance.

By comparison, European and Asian economies which are more reliant on Gulf imports are being hit harder, making their currencies and bonds less attractive.

– Risks to inflation –

The dollar is additionally profiting from the possibility of a fresh inflation hike caused by soaring energy costs.

This is because it increases the likelihood of the US Federal Reserve slowing the pace of its planned cuts to interest rates, while even forcing it to possibly raise borrowing costs in the short term.

The prospect of higher interest rates for longer strengthens the appeal of the dollar, to the detriment of dollar-denominated gold and another traditional safe haven.

Despite recent strengthening, the dollar has not yet recovered to the levels it reached ahead of Trump’s return to the White House.

Offsetting the currency’s recent gains are concerns about the impact of Trump’s tariffs on the world’s biggest economy.

Fears surrounding high US debt levels and the president’s pressure over the independence of American institutions, notably the Fed, have also weighed upon its value.

“The dollar remains in demand and well supported,” Kathleen Brooks, analyst at traders XTB, told AFP.

“However, as the conflict drags on the attractiveness of the dollar could diminish… The US still has a massive budget deficit, which could get worse due to the war, as military spending may need to rise sharply in the coming months.”

– Trump’s paradox –

Market developments since the start of the conflict run counter to the objectives initially stated by Trump, who has pledged to lower gas prices, fight for lower interest rates, as well as advocating for a weak dollar to support exports.

Countering this, US Treasury Secretary Scott Bessent asserted at the end of January that the “US always has a strong dollar policy”.

Mark Sobel, a former senior Treasury official, told AFP that “the administration’s views on the dollar are confused, muddled and inconsistent”.

Marc Chandler, analyst at Bannockburn Capital Markets, meanwhile concluded that for the US government, “denying Iran nuclear weapons or missiles seems to have a higher priority than the short-run impact of the foreign exchange market”.

Mideast war plunges Germany’s energy-hungry industry into crisis


By AFP
March 13, 2026


Germany's traditional manufacturers face a new hammer blow from the Mideast war fallout - Copyright AFP Ina FASSBENDER

Sam Reeves and Jean-Philippe Lacour

Germany’s energy-hungry industries are sounding the alarm about the devastating impacts of the Middle East war as companies battle problems from surging power costs to snarled supply chains.

From chemicals to steel and cement, Europe’s biggest economy is a major producer of industrial goods that require huge quantities of power to make, and Germany imports much of its energy.

The price jumps triggered by the conflict and closure of key energy route the Strait of Hormuz, which has pushed oil above $100, is a hammer blow to traditional manufacturers who were already struggling.

Adding to the problems is chaos in global supply chains, which industry groups warn is leading to bottlenecks for vital basic inputs for manufacturing.

“Our companies are currently operating in absolute crisis mode,” said Wolfgang Grosse Entrup, chief executive of the VCI association representing chemical firms, one of Germany’s main industrial sectors.

“The signals we are receiving, particularly from small and medium-sized enterprises, are in some cases dramatic,” he said, adding that the “longer the war lasts, the more severe the consequences will be”.

With the war, that began with US-Israeli strikes on Iran, approaching the end of its second week, the signs of strain are clear among German firms.

SKW Piesteritz, a maker of agricultural chemicals in the eastern state of Saxony-Anhalt, has had to reduce production of nitrogen-based fertiliser due to price rises for gas, a key input.

This is despite stronger demand due to fertiliser shortages globally caused by the closure of the Strait of Hormuz.

“These price jumps are threatening for SKW Piesteritz if the prices for the main raw material cannot be passed on to customers”, managing director Carsten Franzke told AFP.

“We are currently seeing what happens when we fail to protect our own basic chemicals industry in Germany.”



– New blow for industry –



While some larger businesses stress it is too early to assess the fallout, they were clear that a drawn-out conflict and persistently higher energy costs would be very bad news.

Industrial giant Thyssenkrupp’s steel-making business, already in dire straits due to fierce Asian competition, said in a statement to AFP that a “permanently higher gas price would have an impact on production costs”.

Heidelberg Materials, one of the world’s top cement makers, gave a similar warning.

“A sustained rise in electricity prices would have significant consequences for the costs of cement production, particularly in Europe,” a company spokesman told AFP, while noting the impact for this year would likely be limited due to long-term power contracts.

For Seifert Logistics, which transports goods by truck, the impact has been more immediate, with its diesel costs soaring 50 percent since the outbreak of the war.

CEO Axel Frey told AFP that rising prices are usually passed on to customers but this can often take several months.

“In recent days, we have been on the phone with customers around the clock to adjust prices more quickly,” he told AFP, adding however that the firm had faced such situations before and predicted it would weather the storm.



– Green power ‘resilience’ –



Some major German corporations hope they won’t be as heavily impacted as they have in recent years shifted away from fossil fuels and towards renewables such as solar and wind.

Industrial conglomerate Siemens said it had slashed its consumption of fossil fuels by around 40 percent since 2022, noting its “decarbonisation strategy” had made it “more resilient”.

The economy ministry also stressed the government had already announced measures in recent times to protect industry from high power costs, including electricity subsidies for certain sectors and reductions in taxes.

But overall the fallout from the war is another blow for Europe’s traditional industrial powerhouse as it is struggling to rebound after a long period in the doldrums.

The Ifo Institute said this week a drawn-out conflict would put a brake on the recovery, reducing growth this year down from one percent to a meagre 0.6 percent.

Christian Kullmann, CEO of chemical company Evonik, warned the war would accelerate the decline of Germany’s energy-intensive industries.

“The rise in gas and oil prices will eat through the entire value chain,” he told news outlet Der Spiegel.

“The tender buds of a German economic recovery may not be crushed by the war in the Middle East, but they will certainly be significantly damaged.”