Tankers located in the waters near Ceuta, Spain are transferring crude oil from Russia to reach the Asian markets in spite of Western sanctions.
Europa Press News | Europa Press | Getty Images
Russia’s oil revenues rebounded in March and April to reach the highest level since November last year, according to a new report, bolstering President Vladimir Putin‘s ability to finance the Kremlin’s onslaught in Ukraine.
Analysis published Wednesday by the Centre for Research in Energy and Clean Air, an independent Finnish think tank, found that Russia’s revenues from oil exports have recovered from levels reached in January and February.
The findings show that Moscow has recently been able to successfully claw back earnings from fossil fuel exports despite the imposition late last year of import bans from the European Union and a broader G7 oil price cap.
It comes less than a week after G7 leaders said at the conclusion of the Hiroshima Summit in Japan that a price cap on Russian oil and petroleum products was working, Russian revenues were down and falling oil and gas prices were benefitting countries around the world.
This is a clear indication that the enforcement is not working.
Lauri Myllyvirta
Lead analyst at the Centre for Research in Energy and Clean Air
Energy analysts at CREA suggested the failure from the so-called Price Cap Coalition to revise price levels and enforce the policy had resulted in the measures “losing traction, integrity and credibility.”
“The EU has failed in its commitment to review the price cap every two months to ensure that it stays lower than the average market price,” said Lauri Myllyvirta, lead analyst at CREA and co-author of the report.
“This is a clear indication that the enforcement is not working,” he added.
A spokesperson for the European Union declined to comment when contacted by CNBC.
Russia’s oil revenue recovery expected to continue
At the start of the year, data showed Russia’s revenue from fossil fuel exports had collapsed in December. It appeared to underscore the effectiveness of policymakers targeting Russia’s oil revenues and sparked calls for even tougher measures to help Kyiv prevail.
CREA’s latest findings, however, show that Russia’s oil tax revenues rose 6% month-on-month in April due to the increase of export revenues in March.
To be sure, the Kremlin’s revenues were significantly below levels recorded in April last year, when oil prices jumped.
The increase of export revenues in March resulted in a 5% month-on-month rebound in Russia’s mineral extraction tax receipts in April, the report said — and an even larger increase is expected in May.
It means that after bottoming out at the start of 2023, Russia’s oil tax revenues have since recovered due to increased sales.
Russian President Vladimir Putin meets with the Supreme Court chairman Vyacheslav Lebedev at the Kremlin in Moscow on May 22, 2023.
Mikhail Klimentyev | Afp | Getty Images
“The Kremlin’s tax revenue has closely followed prices for Russian crude oil, highlighting the importance of the oil price cap. The state is also changing its tax regime to diminish the impact of the price cap,” said Isaac Levi, energy analyst at CREA.
“Unless the price cap coalition takes action to lower the price cap level and plug the enforcement gaps, changes to Russia’s oil taxation structure will force the price of Russian crude oil closer to international benchmarks, leading to further recovery of Russia’s oil revenue and wholesale failure of the price cap system,” he added.
CREA’s analysis said that since the EU’s import bans and the G7 price cap on Russian oil, Moscow has earned an estimated 58 billion euros ($62.5 billion) in export revenues from seaborne oil.
The majority of which was transported on European-insured or owned tankers, it added. Russia’s revenues could be slashed by a further 22 billion euros if the price cap for crude oil was reduced to $30 per barrel and price caps for oil products were revised accordingly, CREA said.
What is the aim of the price cap?
The G7, Australia and the EU implemented a $60-per-barrel price cap on Russian oil on Dec. 5. It came alongside a move by the EU and U.K. to impose a ban on the seaborne import of Russian crude oil.
Together, the measures were thought to reflect by far the most significant step to curtail the fossil fuel export revenue that is funding Russia’s war in Ukraine.
In February, the Price Cap Coalition followed up its crude oil price cap by imposing a $100 per barrel price cap on Russian petroleum products such as diesel and a $45 per barrel cap on Russian petroleum products such as fuel oils that trade at a discount to crude.
The aim of the price cap policy is to restrict Russia’s oil revenues while maintaining the supply of Russian oil. The U.S. Treasury said in an update last week that nearly six months after the implementation of the price cap, the policy was achieving both goals.
The Treasury estimates that Russia’s oil revenues have fallen to just 23% of the Russian budget this year, down from 30% to 35% of the total Russian budget before Moscow launched its war in Ukraine in February 2022.
The U.S. said this decline in revenue occurred at a time when Russia is exporting as much as 10% more crude oil in April 2023 when compared to March last year.
In a world where personal mobility devices are getting sleeker and more compact, Cocoa Motors has unveiled the WALKCAR 2, a device that might just make you question the need for walking altogether. Imagine a laptop-sized gadget that lets you glide through the streets or mall with zero effort. It sounds like something straight out of a sci-fi movie, right?
I promise this isn’t an April Fools joke.
The WALKCAR 2 is touted as the world’s smallest portable mobility vehicle, weighing in at a mere 2.9 kg (6.4 lbs) and roughly the size of a laptop. This ultra-lightweight design means you can literally carry your “car” around in a backpack. Forget parking woes – just tuck it under your arm and go!
But don’t let its diminutive size fool you. The standard WALKCAR 2 model boasts a top speed of 10 km/h (6.2 mph) and a cruising range of 7 km (4.3 miles) on a single charge. Need a bit more oomph? The WALKCAR 2 Pro version ups the ante with a top speed of 15 km/h (9.3 mph) and an 8 km (5-mile) range. The two models feature 380W and 460W of power, respectively.
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Both models can tackle inclines—10 degrees for the standard and 12 degrees for the Pro—making hilly commutes a breeze.
Operating the WALKCAR 2 is designed to be an intuitive process controlled simply by shifting your weight:
To speed up, riders press down with the toes of both feet to accelerate. The longer you press, the faster you go, up to the device’s maximum speed. To slow down, lift the toe of either foot slightly to decelerate. Continue this motion to come to a complete stop.
Turning is accomplished by shifting your weight by bending your knees slightly and leaning in the direction you want to turn. The device responds to your center of gravity, allowing for smooth navigation.
It’s said to feel like surfing the pavement. And compared to alternatives like e-bikes, scooters, or skateboards, there’s no handlebars or remote controls, just you and your balance.
Given its compact form, you might expect a bumpy ride, but Cocoa Motors built an innovative suspension system. The WALKCAR 2 features a “2D suspension” design that absorbs vertical and longitudinal vibrations, ensuring a smoother ride over common urban obstacles.
The WALKCAR 2 Pro takes it a step further with “3D suspension technology”, absorbing vibrations in all directions—vertically, longitudinally, and laterally. This means enhanced stability even on rough or uneven surfaces.
To recharge, a laptop-style charger can fill the battery 80% of the way in just 30 minutes, with a full charge taking one hour. The 68 Wh battery is likely compliant with nearly all major international airlines, meaning it could make for some slick airport transportation.
The WALKCAR 2 is priced at US $1,299 while the Pro version carries a higher price tag of $1,499. Both models come in four color options of Sonic Yellow, Celeste Blue, Sand Beige, and Sumi Ink Black. Shipping should start this month with deliveries continuing throughout April and May.
Of course, I’m also a daily runner and rarely miss my 10k step goal, so I’m not sure I’m exactly the intended audience here.
I sure hope this doesn’t truly lead to a Wall-E future of adults no longer using their legs, but I can see the benefit of an extremely portable device that can whisk someone around at 9 mph using hardware barely larger than a bathroom scale.
Of course, what that means for your actual bathroom scale, well that’s for you to consider.
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China is dominating the global EV market, and according to Rivian’s (RIVN) CEO RJ Scaringe, this didn’t happen by accident. After squeezing global automakers out of their home market, Chinese EV makers are quickly expanding overseas. Scaringe explained why China is leading the shift and what the US can do to keep pace.
Rivian CEO explains why China is leading with EVs
During a recent fireside chat with Rishi Dhall, VP of NVIDIA’s automotive business, Scaringe pointed out that only 8% of new vehicle sales in the US last year were electric.
In comparison, EVs accounted for 45% of all car sales in China last year. That’s a massive difference. China is nearly six times ahead of the US in terms of EV adoption.
When asked about China’s innovation happening at “lightning speed” with new models, advanced battery tech, and much lower EV prices, Rivian’s CEO explained how companies in the US can learn from them.
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One of the biggest reasons is the lack of options in the US. Scaringe says there are only “one of two great, high compelling choices” under $50,000. One of those is Tesla, with the Model Y and Model 3. This is evident from Tesla’s “extreme” market share over the past few years.
Rivian R1T (left) and R1S (right) electric vehicles (Source: Rivian)
Although Tesla vehicles are great, there are still hundreds more choices for gas-powered cars, with different prices, brands, features, and more.
Scaringe says the US needs to offer many more EVs to keep up with China. Rivian currently sells the R1S SUV and R1T electric pickup, but these are flagship products that cost over $70,000 each and have a relatively small market.
Production at Rivian’s Normal, IL plant (Source: Rivian)
What role will Rivian play?
Rivian’s next product, R2, “opens that up dramatically.” The midsize R2 SUV will start at around $45,000, or nearly half the R1S and R1T.
Scaringe explained that the R2 takes “the magic of what is a Rivian at that higher price and puts it into a slightly smaller package.”
Rivian R2 (Source: Rivian)
Although Rivian’s CEO promises it’s the “coolest vehicle,” the US will need more than just that for it to keep pace. We need R2 to be successful, and we need another “10, 15, 20 other options” for EV penetration to really grow in the US.
After the difference in labor costs fades, Scaringe explained, what we are left with is how the vehicles compare in terms of features, content, and other tech advantages.
(Source: Rivian)
In the US, two companies, Rivian and Tesla, have “redefined the network architecture” with vertically integrated tech stacks. In China, many are doing it from the ground up.
Since many automakers in the West source sensors and computers from several suppliers, it is nearly impossible to get them to work in sync, let alone update.
Rivian’s next-gen R2, R3, and R3X (Source: Rivian)
To be competitive, “you have to have the plumbing right,” Scaringe said, referring to vertically integrating the technology. Rivian already has one major global OEM, Volkswagen, planning to use its software in its next-gen EVs. Rivian and VW launched a joint venture worth up to $5.8 billion in November.
In the meantime, Rivian is expanding its Normal, IL plant as it prepares to launch R2. The midsize platform is still on track to launch in 2026.
Rivian EV production plans (Source: Rivian)
Once the upgrades are complete, Rivian will be able to produce around 215,000 vehicles annually, up from around 150,000. Once its new EV plant in Georgia is up and running, which is expected in 2028, Rivian expects to add another 400,000 units to its annual production capacity.
R2 is just the start for Rivian, with the R3 and tri-motor R3X launching shortly after. Rivian will sell the R2 overseas in places like Europe as it expands the brand globally.
Costco members already enjoy solid discounts on GM EVs – and now there’s an attractive deal on the GM Energy PowerShift Charger as well.
GM sent out a bulletin to dealers on March 17 that said Costco members are eligible for a $255 discount on the GM Energy 19.2-kW Powershift Charger when it’s purchased at a GM dealer. The charger costs $1,699 before installation, shipping, or taxes, so that’s a 15% discount, but note that the dealer ultimately sets the charger’s price.
CarsDirect reports that the discounted GM Powershift Charger can be bundled with a new EV purchase or bought on its own. The charger “must be sold as an over-the-counter accessory (ACO).”
All Costco members are eligible for the offer and will need to retrieve the authorization number from the Costco Auto website.
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As for the GM Powershift Charger’s specs, GM Energy says its new 19.2 kW Powershift Charger delivers around 6-7% more juice than a typical 11.5 kW charger, delivering up to 51 miles of range per charge hour. When paired up with a compatible GM EV and the GM Energy V2H Enablement Kit, it offers bidirectional charging, meaning it can double as backup power for your home.
Designed for indoor or outdoor use, it comes with wifi connectivity, an SAE J1772 plug, a 25-foot charging cable, and integrates with the myBrand smartphone app. Costco members also have the option to finance both the charger and its installation through GM Financial.
If you’re looking to electrify your business fleet instead, Costco is also offering Executive members up to $3,000 off BrightDrop’s all-electric commercial vans – the BrightDrop Zevo 400 and Zevo 600.
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