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EU signs part of Economic Deal with Ukraine
BRUSSELS — The European Union and Ukraine on Friday signed part of a broad political and economic agreement that sparked the West’s escalating conflict with Russia.
On the second day of a summit of EU leaders in Brussels, Ukrainian Prime Minister Viktor Yatsenyuk and European leaders signed several sections of the agreement that call for stronger political dialogue and security cooperation. But the most substantive sections of the deal—covering trade, law enforcement, anticorruption measures and macroeconomics—likely won’t be signed until after Ukraine holds elections in May.
The EU has already proposed to grant Ukraine the trade benefits of the deal—eliminating tariffs on most Ukrainian exports to the bloc—before the deal is signed.
These steps are intended to bolster Ukraine’s economy and fragile transitional government, months after former President Viktor Yanukovych, under pressure from Russia, refused to sign the agreement. That decision sparked protests, violent clashes with Ukrainian police and ultimately pushed Mr. Yanukovych from office.
“This deal meets the aspirations of millions of Ukrainians that want to be a part of the European Union,” Mr. Yatsenyuk said at the signing ceremony.
EU leaders also agreed to bring forward the deadline for finalizing political and trade accords with Georgia and Moldova. Those agreements, which would bind the two countries into much closer ties with the 28-nation bloc, were previously due to be signed by August.
The step was taken because of European concerns that Russia would step up pressure on Georgia and Moldova to abandon the agreements as it did with Ukraine last year.
The EU has already moved to alleviate Russian economic pressure on Moldova by lifting quotas on the country’s wine exports. It has also promised to ease the procedure for Moldovan citizens to travel to the bloc in the coming months.
Early Friday morning, the EU agreed on a new list of Russian sanctions targets, including members of President Vladimir Putin’s governing team. They will be added to a list of 21 Russians and Crimeans the EU had already slapped with a travel ban and asset freeze. Thursday’s action was coordinated with the U.S., which on Thursday brought its list of targets to 31 individuals and a Russian bank.The EU’s new targets, to be identified formally later Friday, are all Russians and don’t include businesspeople, according to someone familiar with the list. Herman Van Rompuy, president of the European Council—which comprises the national leaders of the EU’s member states—said that “some of [the targets] are really high-ranking.” The EU’s earlier list arguably didn’t include anyone in that category.
EU leaders maintained their silence Friday morning about who would be targeted on by sanctions. According to three people familiar with the list, it includes three figures who answer to Mr. Putin and were on the U.S. list issued Monday.
They include Putin aide Sergei Glazyev, a hard-liner who threatened Ukraine with economic retaliation last year as it contemplated whether to sign an Association Agreement with the EU. Also cited is Vladislav Surkov, another aide sometimes called “the Gray Cardinal” for his behind-the-scenes work at the Kremlin. When Mr. Surkov was hit with the U.S. sanctions earlier this week, he memorably joked that the things he liked about America were Tupac Shakur, Jackson Pollock and Allen Ginsberg, and he didn’t need to travel to the U.S. to appreciate their work.
Another target is Dimitry Rogozin, Russia’s deputy prime minister. He, too, laughed off the U.S. sanctions, and tweeted to “Comrade Obama” that “some prankster” must have come up with the sanctions targets.
Lithuanian President Dalia Grybauskaite said the bloc wouldn’t be cowed by Russian talk of retaliating against the European measures.
“Nobody is afraid of anybody,” she said when asked about the threats.
On Friday morning, Mr. Putin said his government won’t retaliate against the new U.S. sanctions on Russia imposed Thursday.
An unusual level of secrecy surrounded the names of the EU’s targets, as the bloc’s officials sought to prevent the individuals from moving their assets before the formal publication. The national leaders could bring no aides into their meeting, and they were deprived of Wi-Fi and phone service during the session, according to someone familiar with the situation.
European leaders also canceled an EU-Russia summit planned for June and said individual countries would cancel their own meetings with Russia. If Moscow continues to block a monitoring mission to Ukraine by the Organization for Security and Cooperation in Europe, they said, they would organize their own EU mission.
The leaders also said they had asked the European Commission, the EU’s executive body, as well as individual member states, to draw up plans for “targeted economic measures” if Russia continues to destabilize Ukraine.
They declined to specify what specific Russian actions would trigger such broader measures, such as embargoes. “We will assess each action, each incident in itself,” Mr. Van Rompuy said. “We will not put all our cards on the table…But the preparations are ongoing.”
Nicos Anastasiades, the president of Cyprus, whose banks and beaches make it a popular destination for Russians, told reporters the EU must pursue steps that avoid financially damaging its member states.
Other leaders said they are bracing for the possibility that just such steps will be necessary before long. “We need to prepare ourselves, and that means of course hurting ourselves in a way,” said Swedish Prime Minister Fredrik Reinfeldt. “I think this is already happening. Sweden as a country has 400 companies present in Russia, and they are already worried.”
Others looked for different ways to send Russia a message. German Chancellor Angela Merkel said the Group of Eight industrialized nations, which had included Russia, is essentially defunct as a result of Russia’s incursion into Ukraine.
“As long as there is no political environment for such an important political format as the G-8, the G-8 doesn’t exist anymore,” Ms. Merkel told the Bundestag, Germany’s parliament on Thursday.
-WALLSTREET JOURNAL
Nigeria’s economic fortune is benefiting from the Middle East crisis, as the impact of capital inflows from stronger crude oil earnings has seen her foreign reserves climb to record $53.1 billion, beating the $51.04 billion year-end target.
Data available on the Central Bank of Nigeria’s (CBN) website indicated that the reserves closed at $53.1 billion on August 24, which is the highest level in almost 18 years.
Any analyses of the growth shows that the difference in reserves position places the Nigerian economy in good stead, because it can cover over 12 months import.
It is noteworthy that Nigeria’s external reserves fuel the CBN’s capacity to support the local currency and meet external obligations, have continued to rise steadily, since the face-off between the United States and Iran.
Further analysis of the data displayed by the CBN showed that the liquid portion of the external reserves stood at $52.5 billion.
Biztellers reports that Brent crude traded around $87 per barrel, within the week, well above Nigeria’s 2026 federal budget benchmark of $64.85.
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With the Middle East crisis not showing signs of abating, analysts believe the price rebound would largely bolster Nigeria’s fiscal revenues.
The line of thought is popular among those who know, because as a crude oil exporter, Nigeria will continue to earn more petrodollars, which they argue would support the domestic currency – naira’s stability, while pumping the volume of external reserves.
In its economic projections for 2026, the CBN targeted stronger oil earnings, foreign exchange market reforms and improved external capital inflows to achieve the year-end reserves projection.
According to analysts, the current reserves position reinforces the steady growth in Nigeria’s external buffers.
The founder/Chief Executive Officer of the Centre for the Promotion of Public Enterprise (CPPE), Dr Muda Yusuf, earlier hinted at a positive outlook for Nigeria’s external reserves as he does not see anything derailing the forex and fiscal reforms that have brought about stability and improvement in external reserves, as reported by The Nation.
Yusuf said: “Well, the outlook for me is positive because I don’t see anything derailing these forex reforms, fuel subsidy etc. It is these reforms that have brought about stability.”
The CBN data further showed that Nigeria’s external reserves have maintained a steady upward surge in recent months.
The reserves started June at $49.80 billion and crossed the $50 billion mark by June 5, reaching $50.12 billion.
On June 15, reserves had increased further to $50.81 billion before rising to the current position. The reserves stood at $51.9 billion on July 31, and continued.
The sustained increase reflects stronger foreign exchange inflows and improved liquidity conditions in the country’s external sector.
The CBN Governor, Olayemi Cardoso, said: “This strong buffer continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability.”
The CBN’s decision to clear over $7 billion unsettled FX backlogs raised investors’ confidence in the economy, supporting dollar inflows and foreign reserves accretion, Cardoso added.
The CBN boss had explained that although he had no idea where the fund for the backlog clearance would come from, when he assumed office, he believed it was the right thing to do, and gave investors his word.
He said: “Credibility is at the heart of any central bank. If you don’t have credibility, people do not trust you and they do not invest in your economy. When I took office, I made a promise we would pay the backlog, the verifiable backlog of monies that were owed by Nigeria to third parties.
“And it was, at the time, estimated at over $7 billion US dollars. And to be honest with you, I had no idea how I was going to do it, but I just felt it was not something to be negotiated.”
Cardoso explained that Nigeria needed to ensure that its integrity is maintained. Analysts believe the higher reserve level could enhance the CBN’s capacity to support exchange rate stability and meet external obligations.
Up to 30% equity in the upcoming Dangote Refinery in Kenya, has been placed on the table for East African countries, which makes about $1.5 billion worth of the planned project available to regional investors.
David Ndii, Kenyan President William Ruto’s economic adviser, disclosed this on Thursday at a capital markets forum in Nairobi, where he said Kenya would take a 10% stake while Ethiopia and Rwanda had also expressed interest.
Dangote’s planned refinery is expected to be developed in Lamu, a coastal town in southeastern Kenya, though the project was initially proposed for Tanga in Tanzania.
According to the billionaire industrialist, the decision to move the proposed location to Kenya was informed by commercial and technical considerations.
Ndii disclosed that Kenya’s proposed 10% participation would be worth approximately $500 million.
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He said the combined regional participation could amount to about $1.5 billion, with Dangote prepared to support the project if some participating countries are unable to commit as crude off-takers.
“The total for the region is about $1.5 billion,” he said. “I don’t actually see a challenge in doing that, and if some of them are not off-taking we will backstop.”
The proposed regional participation would give East African countries a direct equity interest in a major energy infrastructure project while potentially securing access to refined petroleum products for participating markets.
The United Nations Geoscheme (UNG) for Africa defines Eastern Africa as comprising 18 sovereign countries, alongside two French overseas territories, meaning the proposed 30% allocation could potentially involve a broader regional investor base beyond Kenya, Ethiopia and Rwanda.
The Nigerian authorities have been called upon to focus on strengthening domestic refining capacity.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) made the call in a communiqué issued at the end of the three-day PENGASSAN Energy and Labour Summit (PEALS 2026).
It stressed the need for adequate protection for refineries operating in the country.
The PENGASSAN said Nigeria must reduce the economic inefficiency of exporting crude oil while importing significant volumes of refined petroleum products by creating an environment that supports domestic refining and other value‑adding activities.
The communiqué, signed by the union President, Festus Osifo, and General Secretary, Jerry Amah, stressed the need to protect refineries, including Dangote Refinery and Waltersmith Refinery.
The association said the expansion would enable Nigeria to retain a greater share of the value generated from its petroleum resources while creating jobs, conserving foreign exchange and stimulating industrial development. PENGASSAN linked the growth to wider opportunities in petrochemicals, gas processing and other downstream activities.
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The communiqué reads in part: “The summit called for sustained policies and investments to expand Nigeria’s domestic refining capacity and reduce the economic inefficiency of exporting crude oil while importing significant volumes of refined petroleum products. The need to protect refineries (such as Dangote Refinery, Waltersmith Refinery, etc.) within Nigeria’s jurisdiction was emphasised.
“Nigeria must progressively retain more value from its petroleum resources through domestic refining, petrochemicals, gas processing and other value‑adding activities capable of generating employment, conserving foreign exchange and stimulating industrial growth.
“Ultimately, the strength of Nigeria’s oil and gas industry will not be measured merely by the resources beneath the ground, but by the projects delivered, the value created, the Nigerian capabilities developed, the decent jobs sustained and the prosperity generated for the Nigerian people.”
The association also warned that abrupt policy changes, overlapping mandates, repetitive approvals and conflicting directives increase the cost of doing business and weaken Nigeria’s competitiveness for global energy capital.
The PENGASSAN called for faster regulatory approvals, digitalised processes and clearer timelines, arguing that the effectiveness of regulation should be measured by its impact on investment, production, government revenue, job creation and national value rather than simply by the number of licences or approvals issued.
On gas, the PENGASSAN advocated an integrated approach to developing Nigeria’s more than 215 trillion cubic feet of proven reserves, including investments in processing facilities, pipelines, storage, LNG, LPG and CNG infrastructure. It said gas should be deployed more aggressively for power generation, manufacturing, transportation, fertiliser and petrochemical production.
The association also urged stronger protection of workers’ rights, occupational safety and employment during mergers, acquisitions, divestments and asset transfers, saying sustainable investment requires skilled and fairly treated workers and that increased production must not come at the expense of workers’ lives and wellbeing.
In addition, the PENGASSAN said the next phase of Nigeria’s petroleum industry must focus on execution with measurable targets and clearly assigned responsibilities to ensure policies translate into projects, production, investment and sustainable employment.
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