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tv   Counting the Cost  Al Jazeera  April 10, 2022 6:30am-7:01am AST

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as part of buddhism are very unlikely. unlikely that these students were stuff. how go the know i'm prepared to be as debris. whenever a rocket goes up, there is always some part of the other which is left in space where we should also body. when rockets are rockets, use that he boxing chemicals in been in the us at last we are as they walk toward space ah, talk a check of a headline on 0 at the british prime minister barbara johnson has pledged more military crane after hold and talk to the president lensky and t. johnson, the latest foreign leader to travel to the country to offer his support and ukraine officials urging civilians in the eastern region of lou hands to travel to safe
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areas. people in the city of crime towards scott being evacuated after a missile strike killed more than 50 people at a railway station on friday. pakistan's parliament has moved in one con is prime minister and a no confidence vote. m p. 's will reconvene on monday to vote for a new leader. australians will head to the polls on may 21st to vote in a general election prime minister scott morrison made the announcement a short while ago in camera. i love this country and i love astronomers and i now astride in have been through a very tough time. i also know the destroyer continues to face very tough challenges in the user head. but more than either, i know that we live in the best country in the world and more than ever, i am optimistic about our future and why not, and what i now
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a strategy and can achieve. both counting is underway in the gambia, where people cost their balance to pick a national assembly. a record number of candidates vying for the 53 thought a mental seats president adam barrows facing reading political and economic discontent and hopes to win enough support to move forward. with an agenda and just a few as polls will open in france in presidential election, 12 candidates including the incumbent, manual macro, find the top job french citizens and canada started voting on saturday. in toronto and montreal. israel is imposed collective measures against palestinian inhabitants of janine in the west bank of the 2 of the areas residents carried out attacks in israel. it follows arrayed in the town during which a palestinian man was shot dead, a dozen more were injured in a refugee camp. well, those are the headlines that he's continues here now to 0 after counting the cost that you thank you bye for now. the race to succeed, the regal discharge as president of the philippines is heading into its final
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stretches, struggling with its worst recess. and in years the country is desperate for solutions. but what are the candidates offering and what direction will the philippines think under you leadership vessel coverage on al 0? i, i, lo, i'm fully bazzi bo, this is counting the costs on al jazeera, you weekly, look at the world of business and economics this week, unleashing a torrent of crude oil present. joe biden, orders what he says is the unprecedented release of u. s. oil reserves. how will that affect markets and will it help cut prices at the pumps? also this week, what if russian gas tops i turned off germany is one of the
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e. u members most reliant on supplies and is particularly vulnerable. so can the germans weaned themselves off, rush and gas. and india imposes a tax on the profits of crypto care and see an ames to launch the digital ruby. is that a move towards regulating virtual currency and how when investors be affected? ah, thank you very much for joining as gasoline prices have risen, shot me after russia's invasion of ukraine, and americans are feeling the pinch at the gas pump with mid term elections just months away. present joe biden is under growing pressure to bring down the high energy prices, and he's attempting to do that by increasing supply. the president has ordered the release of at least a 180000000 barrels of oil from the u. s. a strategic reserves over the next 6 months. that's the largest release of oil reserves. since the countries talk pile was created more than 46 years ago. this is
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a war time bridge to increase oil supplier to production ramps up later this year. and it is by far the largest release warranty aren't rational reserve in our history and provide historic amount of supply for a historic amount of time, a 6 months bridge to the fall. while the announcement marks the 3rd time in 6 months, the u. s. has topped into its stockpiles. the president has also called for companies to pay fees if they choose not to use oil whales on land. they lease from the government and has promised to speed up the adoption of green energy sources biden plans to invoke the defense production act, to support the production of batteries like lithium and nickel among others. now, other members of the international energy agency, or i. e, a, a watched off for western consumer nations also agreed to release more or less from their reserves. the move comes after the organization of petroleum exporting countries, opec and its allies, including russia, said they were sticking to their plan to gradually increase production. thus,
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despite pressure from the u. s. and other nations to boost output more quickly. so, how does the strategic petroleum reserves work and what does biden's plan mean for the market? let's have a look at the figures. the u. s. held 568000000 barrels of oil as of march 25th down from more than 700000000 at their peak in 2009. but i am member countries are required to keep equivalent to 90 days of net oil imports in emergency reserves for the us. that's 300. 15000000 barrels according to our b. c. capital markets. once the latest release is complete, the nation will have just 70000000 barrels in buffer. the release of $1000000.00 barrels of oil a day over 6 months would make up almost 5 percent of american demand and one percent of global demand. that's why the i a a said last month as much as $3000000.00 barrels a day of russian oil production would be lost because of us sanctions. now biden's
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announcement us pushed oil prices to settle lower, but they were st. twice the level a year ago. brent crude, the global benchmark for oil prices, hit $139.00 a barrel last month after russia is invasion of ukraine began. the recent rise include prices has led to a jump in gasoline prices in the us with the national average price of a gallon of gas at more than $4.00 up from almost $3.00 a year ago. well, let's discuss all this further with great should bronze cross energy analysts that energy aspects. he joins us from london. richard, very good to have you with us on counting the cost. so we'll present biden's release of us. we have much impact on prices beyond the very short term. well, i think there will be some impact, but it's probably going to mainly be reducing the risk that we see a really serious spike higher in price. if some i don't think the release on the phone is going to push oil prices down much further from car levels. so do you expect more disruptions ahead?
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yes, i think in terms of the russian supply, we're only beginning to see the actual disruption caused by sanctions and the self sanctioning that we're seeing from a lot of european bias. rush refineries have had to cut production, and russian exports are starting to fall. although they haven't fallen immediately after this, not the conflict. so these effects are still building up, and i think they're going to get worse over the next month or 2. i mean, it's a risky strategy though, isn't it for, for the us to draw down on it's s p r so heavily. what if the war and ukraine drags on? well, i think it's certainly true that you can't draw down with these kind of rates, and it's not just the u. s. in advance economy around the world that are announcing big releases with seeing them use that to a degree that we've never seen in the past. and i think that reflects how serious the concerns about the state of energy market, but it also has to be
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a 10 print measure. now washington is hoping that by that time they finish the 6 that release us production will increase substantially. and that will help to bridge that supply gap created by russia. i think that's quite optimistic when we look at our full cost for us shale production. we do see growth this year, but not the kind of pace that it seems. the white house is hoping for, so there's potentially a problem later in the summer, or towards the end of the year when all of these releases have happened. and yet the market is still short of supply. i was going to ask you this, this is precisely about that richard. i mean, is the amount being released from strategic petroleum reserves, whether the u. s. or other countries? is it sufficient? what would it take to make up for the destruction in russians, supplies, and fabulous the market? we think russian supply is going to fall by not 2000000 barrels a day compared to the pre conflict levels. and what you're looking at in the most
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optimistic scenario for these releases is under a 1000000 barrels a day. so it goes a long way to help bridge that down. but it isn't sufficient. you've also got to think about issue elsewhere with seeing less and less optimism that will be a nuclear deal with around with lift sanctions on that country. and that was going to bring more supply into the market. if that's not coming later in this year. again, you've got a gap that even be completely filled by these with releasing these reserves rich and how does it exactly work? how is it structured? is it going to be an exchange or outright sales? and what about logistical challenges and bottlenecks to move the oil from reserves to, to other places. so this is gonna be an outline. it's going to be made available to market and refineries or even international buyers can purchase as long as they can have the logistical arrangements to receive. the u. s. government had said that it
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will. busy repurchase the soil and refill b. s p r later. but that's going to be government to do not for the bias. so that's why it's not an exchange. but it does. if price is a lower in the future, anywhere under about a $100.00 a barrel for w t on the u. s. government is going to be a big buyer boil to put it back into the s p o. now the logistic problems that you mentioned are very significant because although the cabins and the storage sites themselves can technically release a little very rapidly, that oil has to move through the u. s. pipeline network through the same pipes as commercial production. and the problem is there are restrictions or limits on how much s p l and you can release and move around that system without disrupting and impacting the compassion. and so we think that the actual rate of s p release is going to be much lower than the 1000000 barrels a day that's been announced probably closer to $600000.00 barrels
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a day. do you think, richard? this will change the calculus opec class, which has been resisting, called to increase output. do you think it'll push them to try and increase the scale of their production? if anything, i think it does the opposite. they can point to the fact that the u. s. and others are releasing will be s b r. and therefore say that the market doesn't need our tech class to have more supply. they've been very, very reluctant over a couple of meetings since the conflict started to do anything to adjust that current plan. i think for now that remains the case. now we've heard renewed calls this week, richard for the team, for the sanctions on russia, the energy sector after the an h atrocities in butcher came to light. but european countries, we know, have been reluctant, right? to impose a bond on russian energy, if a boy caught a russian oil and gas at all possible for europe, what impact will it have on, on european economies like germany, for example? well, i think if, even a few weeks ago we did that,
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it looked almost impossible. calculus is changing. they have, it appears, the european union will, by coal imports, or at least put some kind of restriction on the light to this week. and that break the 2 when it comes to teaching energy flows, it doesn't mean we'll definitely get measures against oil and gas. but the longer the conflict in ukraine goes on. the. ready more likely they become, i think there are proposals already being developed for how the europeans, my count of russian oil imports. gas is the hardest one in terms of the level that europe depends on russian imports. and also the availability of a tentative sources to fill that out, but we seem to be getting closer. the political pressure is building. and i think if we are, you know, weeks or months or more fighting in ukraine, it becomes more and more likely that we do get some kind of. now you asked, how can europe respond or how can you deal with that?
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technically it's going to be possible, but it is going to be very expensive and it's going to be very disruptive. and so we are starting to see markets trying to crisis what that would look quite. an owl disrupted might be certainly you can get to the point where demand is going to be have to be limited or rationed in certain sectors of the european economy to manage the loss of russian oil gas supplies. if that happens, richard bronze, thank you very much. for talking to her some counting the costs. thank you for your time. ah, european nations are on high alert for any disruption to russian gas enforce present vitamin put in wants, what he calls unfriendly, biased to pay in robles or face supplies being cut off. many european leaders have rejected the ultimatum and announced emergency pans to secure supplies. they include germany, which is acting to cut its dependence on russian energy by the middle of 2024
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dominic cane report, some 1000000000 the are more gas insulation is far removed from the fighting in ukraine. here the focus is on getting the product out of the ground and on its way to customers. 55 percent of german gas imports last year came from russia and 40 percent in the 1st quarter of this. but outrage at warren ukraine has changed many europeans thinking events, if it's even under the fact that we are diversifying our sources and we'll do so in the coming month celtic, we will use the existing l. n. g terminals on the west european coast. i'm a builder own elijah terminals much faster than before. that's ball building new l n g or liquid natural gas terminals cannot cover all of germany's energy needs. it's thought the terminals will not be on stream for several years. and in the meantime, gas will still be needed. this is the hides craft back in central berlin here
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natural gas is turned into heat and light, the thousands of homes for industry and the public sector in this city. it's one of many such installations all across the country. much of the power use in these stations comes from russian natural gas and cost this country every year, billions of dollars. for many years, the political elite here tolerated such a dependence on russian fossil fuels long after crimea was annexed in 2014. germany's previous chancellor angle america did not stop the now shelved an old stream to pipeline which connects russia to germany by the baltic c. l. deutschland huts in as for germany, wants to secure its energy supply from various sources. russian gas is part of this, but we do not rely only on russian gas on. and yet when she made those comments,
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germany had already become increasingly reliant on russian gas. she had even been warned publicly about its risks by the then u. s. president. but germany is totally controlled by russia because they were getting from 60 to 70 percent of their energy from russia and a new pipeline. and you tell me if that's appropriate, because i think it's not. and i think it's very badly, valero, and i don't think it should have been. but many, if the elite in germany appeared not to be listening, i asked one leading petrochemical policy analyst, why the idea was essentially, to work through trade. in order to lower the incentives for conflict, because the moment you enhance trade in theory, both sides engage invest haskin in the game. and that means you lower the political incentives for war or other types of conflicts. that was the principal principal driving a lot of the russia politics and policies of the german government,
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but also the other european governments didn't work as we know. and yes, the contact they should have known better. now those governments are leading a dash from gas. the european commission recently unveiled plans to cut many billions of cubic meters or b c m's. by the end of this year, we can replace $100.00 b c. m of got some ports from russia. that is 2 thirds of what we import from them . this will end our over dependency and give us much needed room to maneuver. part of the e u plan mirrors proposals put forward by ministers in berlin. marrying expediency over hydrocarbons on now with their longer term environmental ambitions. and we will see europe and governments across the board ramping up programs for renewables . 200000000000 from the german government's ah, going into a clean tack,
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going forward, a whole program in the shape of re power europe at the european level. even if it's what we don't know is how such a move will be perceived in the kremlin lane. but with his recent requirement to make ease states pay for gas in rubles, rather than dollars for euro's president, putin has already signaled his intent yesterday. if these payments are not being accomplished, what we would consider it is bias failure to meet their commitments with all relevant consequences. nobody sells anything to us for free. neither are we going to do charity work. no, that means the current contracts would be brought to a home to the new months obligatory. and that is a real worry for many across europe who wonder what might happen in winter if russia switches off the gas. several industrialists say such a denial of energy could be catastrophic to the economy. dawn, it came for counting the cost berlin. now india has long been concerned by crypto
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currencies and was planning to ban them. but instead of prohibition, the indian government appears to be moving towards legalizing and regulating the digital currency. and it's announced a 30 percent tax on gains from the transfer of digital assets such as bit coins and non fungible tokens. his or india correspondent elicit brannon in new delhi. these crew crazy has made tens of thousands of dollars investing and trading and crypto currency over the past 4 years. but the 24 year old selling at least half of all has digital assets before new taxes on them come into effect. from april, investors will have to pay 30 percent tax on sales of crypto currencies and won't be able to offset any losses from one against profits from another. so that's all i will be managing, introducing export, getting more interest often for the current using the volume of trades that i am doing daily. and probably we will be seeing that in exchange, that india we will be seeing or decrease in volume because the part bosses is
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pretty soon the same introduction of the central governance has a major increase in crypto currency. transactions has made it essential to impulse taxes. there are around $25000000.00 india to own crypto currency, with up to $10000000000.00 worth of assets being traded every month. the average investor is just 24 years old and most have a portfolio of $650.00 to $1500.00. the founder of india's largest trading exchange says it doesn't make sense to impose the highest tax bracket regardless of earnings. so there are certain amount that you all, anyway, you're not taxable at all. you don't have to be back, but if you are needing and then you make a profit back and you still have to be 30 percent, which is the highest and that's something open for
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a lot of be put up land and i was good. i began investing and crypto currency when he was at university in 2016. the 23 year old day job is running his family's carpet business, but all of his earnings are invested and crypto currencies. he's not happy about the high taxes that relieve the government, isn't bad and crypto currency after it indicated last year. that would be, i think they're important 1st step. i'm not happy about them. no, i'm obviously not like happy with some of the particular things by these. we should like recall back in december, everyone with debt show that this is going. they're going to force liquidation from all exchanges and they're just going to ban it. and that didn't happen. many others agree with rock of and say the taxes are too high and could push invest as an businesses into moving the assets to countries with more favorable tax laws. but they also agree they're better than an outright ban. elizabeth moran, i'm al jazeera new delhi. now along with the capital gains, george,
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the government announced a one percent tax deductible at source o t t. yes, that will apply on old digital assets transfers above a certain size starting on july 1st, india will also roll out its own block chain base currency digital whoopee controlled by the indian central bank before april. next year. joining is not from new york is roger bron global head of tax strategy, a chain alice's thank you for being with us on counting the costs. roger is a big outcry in india right now after the government announced this 30 percent tax on virtual assets. i want to know for how significant it is, how much tax is imposed on crypto currency in different countries worldwide. the tax, every country tends to tax crypto slightly differently. you see common themes, the minority of countries, it's really only a handful post, no capital gains tax at all. and oftentimes they don't have the capital gains tax.
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in other instances, the only tax certain kinds of transactions in general, for example, last year in france, don't tax crypto for crypto trades. when i show x r p exchange for a theory and they won't tax that, they'll wait till someone receives traditional fee on currency, which is just like o fray a term referring to cash. so 30 percent of the net gain or that with you. if you buy it asked for a 100, you saw what for 70 or 80? i have 20 again. so applying 30 percent the tax is similar to what many countries do. i would say that what is more than what some countries do is many countries will give you a reduction where if you lose money on a sale, there will be a deduction, a capital loss that you can use against similar types of gains in the,
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in the proposal you're not allowed to do that. so i think that is a departure from some other countries where they also approach. and then i would say the one percent tax deduction and source is also a departure from what you see in other countries. so that in effect, but it is creditable against the 30 percent of again, but that is a different increase. so the one percent of tax deductible at the source is a departure you say, when you look at india and compare it to other countries, how big is, is india's crypto currency ecosystem. and how much can the government hope to collect from, from this crypto tax? well, the indian ecosystem is quite large, obviously a very educated population. many people pursue tech and very people crypto and watching necessarily our technologies and among the crypto indexing
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region, the in the really rank top. so india is a major section for bo and, and it will have a material impact that we're seeing test reports now that some exchanges are seeing 30 to 70 percent drops in volume. i would say that unlike other asset classes, the market for trading crypto is global. so if somebody has a choice between jurisdiction a trade and jurisdiction be and the tax is different than they'll go for that other jurisdiction. right? there is concern about the evasion, right. i mean, will it be easy to track given the nature of the transactions? so there are technologies that one can determine where some, where trading occurs. the 30 percent tax,
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assuming that the tax applied at the individual level in india will tax in the taxpayer. but the taxing was whether they're trading and was your accept or which or trading coin base, say us or coin which is not indian. this is taxing the same. the person would, may choose, may choose to, to trade or the foreign exchange is not in the exchange. if the terms of invasion in india will have technology available, where if they can associate trading on a non need exchange to a human being and india, then it is possible to determine whether it's tax evasion with technology the o e c. d. go ahead. no, i was gonna ask you briefly raja how it would affect investors and liquidity. it will affect quality. they could drive down prices. crypto is global. so if somebody
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can get other prices in other jurisdictions in the use of major market, it could have a depression reducing the depressing price on, on, on crypto n d. i would say that you could have 9 indian traders come in and, and see that the one percent is acceptable and they'll come in and perhaps drive up the price of that goes to be determined. thank you so much for talking to us about this sponsor ranch. of brown joining us from the o. thank you for your insight. thank you. and that is our show for this week. get in touch with us by tweeting neat at for you by a j e. and do use a hash tag, ha, ctc, when you do or drop us an e mail counting the cost at our to sierra dot net. these are tracked by there's more for you online at al jazeera dot com slash ctc. that will take you straight to our page, which has individual reports, links,
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and entire episodes for you to catch up. that's it for this edition of counting the cost some fully back to mo, from me in the whole team hearing doha, thanks for joining us. and use on out jessia is next. in a conflicted world, millions of children are abandoned abused and deprived of their basic rights and needs. is the international community doing enough? unicef, executive director catherine russell and goodwill ambassador david beckham, talk to al jazeera. we understand the differences and similarities of culture across the world center might have when you call home will. but you can use in current affairs that matter to you take your seat, be part of the backs you discover cats are all in one package. gabby old to mid?
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well copy experience with the world's best airline. katzoff at ways guarantee you'll see now the book, you'll complete faith, a world cup package today. ah, a show of support for ukraine. the british prime minister becomes the latest leaders, a visit key as fears grove, a major russian assault in the east. ah, hello, i'm down, jordan, this is out as they are alive from della also coming up. pakistan's. enron khan is dismissed as prime minister, the losing a no confidence vote in parliament. m p. 's are set to pick a new leader on monday. we need change yet because the big i'm is going.


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