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Time to invest in Russia despite sanctions threat?

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The 10 most important things you need to know on Caspian Sea Region for Thursday, June 11:

1Time to invest despite sanctions threat? “Despite this uncertainty, however, some market participants argued there were “bargains” in Russia.”There is significant opportunity here. The one thing with Russia is that it generally goes from being the worst (performing) stock market to the first stock market in a very rapid rate,” Simon Fentham-Fletcher, chief information officer of Freedom Asset Management, told CNBC Europe’s “Squawk Box” Wednesday. His company specializes in investment in emerging markets, such as Russia. Certain sectors – such as retail and real estate – were thriving, Fentham-Fletcher said, speaking from Moscow” writes Holly Ellyatt for the CNBC.

2Duqu 2.0: computer virus ‘linked to Israel’ found at Iran nuclear talks venue. “The security company Kaspersky discovered the virus, which it said was a new variant of the Duqu worm, itself a variant of the state-sponsored computer virus Stuxnet, used to attack Iran’s nuclear infrastructure in 2010. Known as Duqu 2.0, the new worm was, Kaspersky said, used to attack three European hotels where the P5+1 talks involving the US, UK, Germany, France, Russia, and China with the EU concerning Iranian nuclear capabilities were held over the last 18 months. Kaspersky did not identify the hotels or say who was behind the attack. However, Israel is thought to have deployed the original Duqu worm to carry out sensitive intelligence gathering” writes Samuel Gibbs for the guardian.

3In his opening speech at the Fifth Congress of Leaders of World and Traditional Religions Wednesday in Kazakh capital Astana, President Nazarbayev said the trust that has been built in the decades since World War II has been lost. Describing Islam as a “tolerant” religion, Nazarbayev said that it was “blasphemous” to use it as an excuse for extremism and terrorism.”The destruction of centuries-old cultural heritage sites in Iraq and Syria cannot be called anything else but anti-humane acts,” he said. Kazakhstan can be a model for religious freedom, added Nazarbayev, “The key foundation is tolerance and openness.” Attended by 80 delegations from 42 countries, the two day inter-religious meeting, which takes place once every three years, is aimed at shaping resolutions for global threats and challenges through communication among religious leaders.

4Azerbaijan blocks Amnesty visit ahead of European Games. Denis Krivosheev, Amnesty’s deputy director for Europe and Central Asia, said the crackdown by authorities “only highlighted their desperate attempts to create a criticism-free zone around the games”. He added that the legacy of the event would be to “further encourage repressive authorities around the world to view major international sporting events as a ticket to international prestige”. In its new report, the London-based group said the government’s campaign against activists had left Azerbaijan “without independent voices”.”Behind the image trumpeted by the government of a forward-looking, modern nation is a state where criticism of the authorities is routinely and increasingly met with repression,” said the report, which was released on Wednesday. [BBC]

5Kazakhstan has finished negotiating the terms of a deal to join the World Trade Organization (WTO), capping 20 years of efforts to take part in the world of mainstream commerce. The country’s WTO accession package will go for final approval before WTO members on June 22.”I congratulate WTO members and the government of the Republic of Kazakhstan on the historic step taken today,” WTO Director-General Roberto Azevedo said on June 10. “I look forward to welcoming Kazakhstan to the WTO.”Ambassador Vesa Himanen of Finland, who chaired the WTO working party that negotiated the deal with Kazakhstan, said it was “one of the most challenging negotiations in the 20-year history of the organization.” [TASS]

6Russia has no contract with Iran to import its oil, but may help resell it on the world market, according to Russian Energy Minister Alexander Novak. Already the two countries cooperate in a variety of commercial sectors. One key aspect is Russia supplying fuel for Iran’s nuclear power reactor at Bushehr in central Iran on the Persian Gulf coast. Last August’ deal could be essential for Iran, whose crude exports have plunged by more than half – from 2.5 million barrels per day to about 1 million barrels per day – since 2011, when the international community tightened sanctions. Any company trading with Iran is forbidden under the sanctions from doing business with the U.S. and Europe. Iran recently has expressed hope and even confidence that the sanctions imposed on it may be lifted soon” writes Andy Tully for the Oilprice.

7BRICS Bank Could Change the Game. “There are challenges to overcome. Researcher Wood thinks that “the bank’s short term challenges will be logistical, completing basic things like hiring staff, building internal operational procedures, and so on. Once this is completed, two larger challenges will present themselves. First, making a decision on what projects to fund, which will involve answering difficult questions on what type of projects the bank prioritizes, where it most wants to operate, and what role political priorities might play. Second, would be in building relationships with existing funders, like the World Bank and AIIB, to assure the BRICS bank doesn’t have to bear all the risk of the projects it gets involved in” writes Kester Kenn Klomegah for the Modern Diplomacy.

8Why Almaty should get the 2022 Winter Olympics. “In contrast with the grassroots opposition that scuttled Norway’s bid, Kazakhstan’s bid has overwhelming public support. Two polls were conducted to gauge national opinion on the Games. A poll that the International Olympic Committee commissioned showed 87 percent support. A poll that the Almaty 2022 organization conducted showed 79 percent support. One reason Almaty’s cost proposal is so reasonable is because it’s already built or renovated most of the facilities needed for the Olympics. A lot of the work was done for the 2011 Asian Winter Games – the building of a ski jump and the renovation of the Medeu skating rink, for example. Almaty will build additional facilities for the 2017 Winter Universiade, an Olympic-caliber event for student athletes 17 to 28” writes Hal Foster for the Tegri News.

9Iran and Azerbaijan are two neighbor countries and friends with lots of cooperation in various sectors which has grown in recent years and can go further, Jalil Eslami, deputy director of ports and special zones affairs of Iran’s Ports and Sailing Organization told Trend June 10. The official stressed that maritime cooperation can help Iran-Azerbaijan relations. There are agreements on cooperation in the maritime sector and there are sisterhood pacts between Iranian and Azerbaijani ports, he said. Eslami in particular pointed to maritime transit and tourism as one of the sectors with great development opportunities. Having in mind the growing tourism attractions, it is necessary to provide the infrastructure for transporting over 25 million passengers by 2025, and improving the quality and quantity of maritime transportation services, he noted.

10Russia’s Unending Balkan Intrigues. “Russia’s Leninst-style foreign policy egoism as well as its historical efforts to oust the West from the Balkans and create a sphere of influence there go hand in hand; together, they represent Moscow’s unending efforts to control the Balkan region. One of the most practical regional issues for Moscow is the transmission of Russian energy through the Balkans to Central Europe. Russia aims to cement a monopoly on providing this energy; yet, it neglects to do the practical things necessary to build pipelines or win local governments’ willing assent to its plans. In seeking to eliminate rivals to its regional energy strategies, Russia is obstructing Azerbaijan’s efforts to buy a 66-percent stake in the Greek gas grid operator DESFA. Moscow has long coveted not only the Greek grid but also other distribution networks throughout Europe” writes Stephen Blank for the Jamestown.

Journalist, specialized in Middle East, Russia & FSU, Terrorism and Security issues. Founder and Editor-in-chief of the Modern Diplomacy magazine.

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Lemon peel, flax fibres hold keys to eco-friendly car parts

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Natural materials including farm waste can make autos and other industries more sustainable, less toxic

By HELEN MASSY-BERESFORD

Think of the car or construction industry and lemon peel, corn starch and almond shells hardly come to mind. Yet manufacturers may rely increasingly on such raw materials as Europe seeks to reduce waste – from both agriculture and plastics.

New high-performance industrial materials from farm waste emerged from the BARBARA project, pointing the way to stepped-up innovation in the European bioeconomy.

Getting circular

Funded in a partnership between the EU and the private sector, the project used agricultural residues including lemon peel, corn starch, almond shells and pomegranate skins as additives for biopolymers, which occur in living organisms such as plants and can be used in manufacturing.

The result: prototypes of car parts and construction moulds made using the 3D printing expertise of Spain-based Aitiip Technology Centre.

‘The most exciting thing from our point of view is that there are no residues, only resources,’ said Berta Gonzalvo, research director at Aitiip, which coordinated the three-and-a-half-year project. ‘Automotive and construction pieces have been successfully validated, demonstrating that a circular economy is possible and contributing to reducing environmental impact.’

The EU is spurring the development of products derived from materials of biological origin, part of a push not just to cut waste but also to reduce emissions of carbon dioxide and to make industrial goods safer.

The EU bioeconomy has been expanding for a decade, reaching €2.4 trillion in 2019, and has further growth prospects, according to an October 2022 study.

In a sign of the high expectations for bio-based industries, the EU in 2014 established a €3.7 billion joint undertaking with them to spur research in the field. This was followed in 2022 by a €2 billion initiative with players ranging from farmers to scientists to overcome technical, regulatory and market barriers for bio-based products. 

The EU produces around 60 million tonnes of food waste and 26 million tonnes of plastic waste a year.

Making industrial materials from renewable sources including waste is set to become increasingly important and projects like BARBARA are just the beginning, according to Gonzalvo.

When BARBARA began in 2017, only one biopolymer was available for 3D printing. The project increased the number of bio-based materials using a combination of industrial biotechnology, nanotechnology and advanced manufacturing technologies.

It came up with new processes for the extraction and use of compounds such as natural dyes, biomordants that fix dyes, antimicrobials and essential oils from pomegranate, lemon, almond shells and corn.

Doors and dashboards

BARBARA created eight materials containing pomegranate and lemon pigment, pomegranate biomordants, lemon fragrance and almond shell that could be used instead of existing plastics. The new materials led to different colours, aromas, textures and antimicrobial properties.

The 11 partners also printed prototype door trims and a dashboard fascia for the car industry as well as a mould for truss joints for the construction sector.

The new materials have better mechanical, thermal and even aesthetic properties.

As a result, they can be used to improve the quality of the end material, even adding a colour or fragrance.

While the project has ended, the participants hope the technology can move forward to the demonstration phase within the next four to five years. That would show the possibilities for large-volume production.

With the global biopolymer industry growing 6% a year and the European sector expanding 30% annually, Gonzalvo said the EU is in a prime position to lead the way. 

‘We are one step closer to a real circular economy,’ she said. ‘Waste can be a resource and not just waste.’

Plastic substitutes

On the plastics front, the research outlook also looks promising.

In Europe, only 14% of plastic waste was recycled domestically in 2020, according to the European Commission. The remaining 86% was incinerated, landfilled, littered or exported, highlighting the need to establish a more sustainable system.

With production of plastics set to increase in the medium term, reducing their environmental footprint is all the more important.

The ECOXY project, funded through the same public-private partnership as BARBARA, looked for bio-based alternatives to plastics known as “fibre-reinforced thermoset composites,” or FRTCs.

While FRTCs are light and strong, their green credentials are lacking. Besides being derived from fossil fuels, they can’t be recycled and are often made from toxic materials including an endocrine-disrupting chemical compound called bisphenol A.

‘Fibre-reinforced composites are being used more and more, so these bio-based composites should be able to substitute them in all the fields where they are used,’ said Aratz Genua, a researcher at CIDETEC, a Spanish institute that coordinated ECOXY.

Three Rs

The project, which ran in parallel with BARBARA, included a consortium of 12 research and industry partners from across Europe.

They took as their starting point materials deemed to comply with the three Rs: recyclable, reshapable and repairable. While these 3R materials had already been patented by CIDETEC, they had a downside.

‘We had made it more sustainable, but we were still working with products derived from oil and the most commonly used one is derived from bisphenol A,’ said Genua. ‘We had the opportunity to go one step further and make it more sustainable by using bio-waste to create bio-based FRTCs.’

The consortium looked to lignin, derived from wood and plant fibres. It used bio-based resin from lignin with flax fibres as a reinforcement to manufacture a demonstrator, in this case the backseat panel of a car.

‘Being able to upscale and manufacture a demonstrator was really good,’ said Genua. ‘We started with small quantities of materials, and we have shown that these are usable at an intermediate scale.’

The real challenge was to make sure the new material would have comparable properties to the ones currently in use.

Bio-based resins demonstrated very good properties, equivalent to those derived from fossil fuels, according to Genua. But there is room for improving the strength of the flax fibres.

Future focus

Future research could include exploring the use of bio-based carbon fibres, also extracted from lignin.

‘We will continue working on the development and optimisation of bio-based 3R resins for different applications,’ Genua said.

For example, the EU-funded BIO-UPTAKE project is working on ceiling panels for the construction industry.

‘In these cases, not only flax fibre but also bio-based carbon fibre will be used,’ said Genua.

In the short term, the new materials are better for the health of workers handling them during manufacturing.

In the long term, the environment will benefit thanks in no small part to the resulting reduction in waste.

Research in this article was funded via the Bio-based Industries Joint Undertaking (BBI JU), which in 2022 was followed by the Circular Bio-based Europe Joint Undertaking (CBE JU). The article was originally published in Horizon, the EU Research and Innovation Magazine. 

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ABC news: Xi signals strength in Russia-China alliance

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Xi Jinping and Vladimir Putin, image by the Presidential Press and Information Office

Chinese President Xi Jinping departed Moscow on Wednesday after two days of highly symbolic meetings with Russian President Vladimir Putin, in which the two presented a united front and an alternative vision for global leadership, notes ABCnews.

Despite statements saying that “China-Russia relations are not the kind of military-political alliance during the Cold War,” China and Russia made clear they wanted to “advance the trend toward a multi-polar world.”

“This highly publicized summit may reflect a shift towards a new and more active role for China, as it seizes the opportunity to convey diplomatic – and possibly tangible – support for Russia and any other state that wishes to defy the West,” – Michael Butler, associate professor of political science at Clark University, told ABC News.

Joint animosity towards the U.S.-led world order has kept Russia and China close despite Putin’s war in Ukraine and western sanctions against Russia has made China their biggest customer and economic lifeline.

Beijing increasingly sees Russia as necessary ally as China and United States continue to fallout over numerous fronts not limited to Taiwan and access to semiconductors. It was further exasperated by the spy balloon episode earlier this year.

Beijing had initially hoped that the spiraling tensions with the U.S. would abate in the wake of Xi’s meeting with President Joe Biden in Bali last November, but as they continued to crater, Xi seems to have re-prioritized Russian relationship. He even aimed a rare direct slight at the United States earlier this month, blaming the Americans for “containment and suppression” as the reasons for China’s economic challenges.

Xi highlighted on numerous occasions over the two days of meetings that Russia and China are each other’s largest neighbors and that their partnership is “consistent with historical logic and a strategic choice of China.”

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Petr Pavl: “Ukraine must adjust to dwindling Western support”

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Image source: twitter @prezidentpavel

“We must consider war weariness”, says Czech President Petr Pavl. According to Czech President Petr Pavl, Ukraine must adjust to dwindling Western support. “We have to consider war weariness and what that means for support from Western states. This will pass with time,” Pavel told the ‘Süddeutsche Zeitung’.

He also mentioned the 2024 US presidential election and the concentration on domestic politics that could then be expected: “If US support decreases, support for a number of European countries will also decrease. Ukraine should take this into account.”

Thus, in 2024, Ukraine will probably no longer be able to start any large and complex operations, the new Czech president said. “This year is decisive for the development of the war.”

The former general was wary of the prospects of Ukraine joining NATO in the foreseeable future. “Ukraine’s path to Europe should run through a faster rapprochement with the European Union and only then with law enforcement agencies,” the President said. “I think that’s the right order.”

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