Indonesian quake survivors scavenging in ‘zombie town’; president ramps up aid

Policemen walk at the ruins of a church after an earthquake hit Jono Oge village in Sigi, Indonesia's Sulawesi island, October 3, 2018. REUTERS/Beawiharta

By Kanupriya Kapoor and Fathin Ungku

PALU, Indonesia (Reuters) – Hungry survivors of an earthquake and tsunami in Indonesia said on Wednesday they were scavenging for food in farms as President Joko Widodo made a second visit to the area to ramp up aid efforts five days after disaster struck.

The official death toll from the 7.5 magnitude quake that hit the west coast of Sulawesi island last Friday rose to 1,407, many killed by tsunami waves it triggered.

A ship is seen stranded on the shore after the earthquake and tsunami hit an area in Wani, Donggala, Central Sulawesi, Indonesia October 3, 2018. REUTERS/Athit Perawongmetha

A ship is seen stranded on the shore after the earthquake and tsunami hit an area in Wani, Donggala, Central Sulawesi, Indonesia October 3, 2018. REUTERS/Athit Perawongmetha

But officials fear the toll could soar, as most of the confirmed dead have come from Palu, a small city 1,500 km (930 miles) northeast of Jakarta, and losses in remote areas remain unknown, as communications are down, and bridges and roads have been destroyed or blocked by landslides.

National disaster mitigation agency spokesman Sutopo Purwo Nugroho said most of the aid effort had been concentrated in Palu, where electricity supply has yet to be restored.

But rescue workers have begun to reach more remote areas in a disaster zone that encompasses 1.4 million people.

Johnny Lim, a restaurant owner reached by telephone in Donggala town, said he was surviving on coconuts.

“It’s a zombie town. Everything’s destroyed. Nothing’s left,” Lim said over a crackling line.

“We’re on our last legs. There’s no food, no water.”

Debris and damaged property are seen following an earthquake in Petobo, Central Sulawesi, Indonesia, October 3, 2018, in this still image obtained from a social media video. Palang Merah Indonesia (Red Cross)/via REUTERS.

Debris and damaged property are seen following an earthquake in Petobo, Central Sulawesi, Indonesia, October 3, 2018, in this still image obtained from a social media video. Palang Merah Indonesia (Red Cross)/via REUTERS.

In another part of Donggala district, which has a population of 300,000 people, Ahmad Derajat, said survivors were scavenging for food in fields and orchards.

“What we’re relying on right now is food from farms and sharing whatever we find like sweet potatoes or bananas,” said Derajat whose house was swept away by the tsunami leaving a jumble of furniture, collapsed tin roofs and wooden beams.

“Why aren’t they dropping aid by helicopter?” he asked.

Aid worker Lian Gogali described a perilous situation in Donggala, which includes a string of cut-off, small towns along a coast road north of Palu close to the quake’s epicenter.

“Everyone is desperate for food and water. There’s no food, water, or gasoline. The government is missing,” Gogali said, adding that her aid group had only been able to send in a trickle of rations by motorbike.

Underlining a growing sense of urgency, President Widodo made his second visit to the disaster zone, putting on an orange hard hat to talk to rescue workers at a collapsed hotel in Palu.

“What I’ve observed after returning now is heavy equipment has arrived, logistics have started to arrive although it’s not at maximum yet, fuel has partly arrived,” Widodo told reporters.

A mother and her son, both injured by the earthquake and tsunami, wait to be airlifted out by a military plane at Mutiara Sis Al Jufri Airport in Palu, Central Sulawesi, Indonesia, October 3, 2018. REUTERS/Athit Perawongmetha

A mother and her son, both injured by the earthquake and tsunami, wait to be airlifted out by a military plane at Mutiara Sis Al Jufri Airport in Palu, Central Sulawesi, Indonesia, October 3, 2018. REUTERS/Athit Perawongmetha

‘PRESIDENT NOT HEARING’

Widodo, who will seek re-election next year, called on Tuesday for reinforcements in the search for victims, saying everyone had to be found. He repeated that on Wednesday, after inspecting what he called an “evacuation” effort at the Hotel Roa Roa, where he said some 30 people lay buried in the ruins.

Yahdi Basma, a leader from a village south of Palu hoping to get his family on a cargo plane out, said Widodo had no idea of the extent of the suffering.

“The president is not hearing about the remote areas, only about the tsunami and about Palu,” he said.

“There are hundreds of people still buried under the mud in my village … There is no aid whatsoever which is why we’re leaving.”

At least seven cargo planes arrived at Palu airport earlier on Wednesday carrying tonnes of aid, some bedecked in the red and white national colors and stamped with the presidential office seal declaring: “Assistance from the President of Republic of Indonesia”.

The quake brought down hotels, shopping malls and thousands of houses in Palu, while tsunami waves as high as six meters (20 feet) scoured its beachfront shortly afterward.

About 1,700 houses in one neighborhood were swallowed up by ground liquefaction, which happens when soil shaken by an earthquake behaves like a liquid, and hundreds of people are believed to have perished, the disaster agency said.

Indonesian Red Cross disaster responders said the village of Petobo, just south of Palu, which was home to almost 500 people, had been “wiped off the map”.

“They are finding devastation and tragedy everywhere,” Iris van Deinse, of International Federation of Red Cross and Red Crescent Societies, said in a statement.

Nearby, rescue workers, some using an excavator, were searching for 52 children missing since liquefaction destroyed their bible study camp. Bodies of 35 of the children have been found.

Aircraft, tents, water treatment facilities and generators were the main needs for survivors including more than 70,000 displaced people, according to the national disaster mitigation agency spokesman.

Sitting on the seismically active Pacific Ring of Fire, Indonesia is one of the world’s most vulnerable countries to quakes and tsunamis. A quake in 2004 triggered a tsunami across the Indian Ocean that killed 226,000 people in 13 countries, including more than 120,000 in Indonesia.

Adding to Sulawesi’s woes, the Soputan volcano in the north of the island, 600 km (375 miles) northeast of Palu, erupted on Wednesday but there were no reports of casualties or damage.

(Additional reporting by Agustinus Beo Da Costa, Maikel Jefriando, Tabita Diela, Gayatri Suroyo, Fransiska Nangoy, Fanny Potkin, Ed Davies and Fergus Jensen in JAKARTA, Stephanie Ulmer-Nebehay in GENEVA and Matt Spetalnick in WASHINGTON; Writing by Robert Birsel; Editing by Simon Cameron-Moore)

Trump administration weighs high-ethanol fuel waiver to placate farmers

A gas pump selling E15, a gasoline with 15 percent of ethanol, is seen in Mason City, Iowa, United States, May 18, 2015. REUTERS/Jim Young

By Jarrett Renshaw and Chris Prentice

NEW YORK (Reuters) – The Trump administration is considering allowing the sale of a higher ethanol fuel blend in the summer, a source familiar with the issue said, a move that would placate corn growers worried about the future of U.S. biofuels policy.

President Donald Trump recently met with the heads of the Environmental Protection Agency and the U.S. Department of Agriculture to discuss ways to make the Renewable Fuel Standard less expensive to the oil industry without undercutting demand for ethanol.

The RFS requires refiners to add increasing volumes of biofuels like corn-based ethanol into the nation’s fuel supply each year. That is a boon to farmers but a headache for refining companies, which must either blend the fuels themselves or purchase credits from those who do.

Over the past several months, Trump has unsuccessfully tried to broker a deal between “Big Oil” and “Big Corn” over the issue, and has faced mounting pressure from lawmakers in the Midwest, who are concerned that he will weaken domestic demand for ethanol at a time farmers are potentially facing a trade war with China that could hurt export demand for corn and soybeans.

Sources had told Reuters this week that Trump was temporarily suspending his consideration of a refining industry-backed proposal to cap prices for blending credits, an idea that the biofuels industry has opposed as damaging to farmers.

But in the meantime, the administration is considering moving forward with plans to allow for the ethanol industry’s long sought waiver to sell gasoline containing 15 percent ethanol in the summer, instead of the usual 10 percent blend, the source familiar with the issue told Reuters on Wednesday.

The higher ethanol blend, called E15, is currently banned by the Environmental Protection Agency because of concerns it contributes to smog on hot days, a worry that biofuels advocates say is baseless.

“EPA has been assessing the legal validity of granting an E15 waiver since last summer,” said EPA spokeswoman Liz Bowman in an emailed statement, noting the agency is awaiting an outcome from discussions with the White House, the USDA and Congress before making any final decisions or preparing regulatory actions.

White House spokeswoman Kelly Love did not comment on the E15 waiver but said that during Trump’s meeting Monday he “instructed his cabinet to continue to explore options that protect American farmers and America’s refinery workers.”

Biofuels proponents have heaped pressure on the White House after reports that the EPA was granting dozens of small refineries exemptions from the RFS to help them avoid the costs of compliance, something the ethanol industry says will weaken demand for their product.

On Monday, Trump acknowledged farmers may bear the brunt of the economic harm if China retaliates against Washington’s threat of tariffs, adding that “we’ll make it up to them.” Many U.S. farmers are battling debt after years of excess global supplies and depressed prices.

“We need some good news out here,” said Monte Shaw, executive director of the Iowa Renewable Fuels Association.

“The best news (Trump) could give us right now is year-round sales of E15,” he said.

(Reporting by Chris Prentice and Jarrett Renshaw; Editing by Steve Orlofsky)

Russian tankers fueled North Korea via transfers at sea

A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014.

By Guy Faulconbridge, Jonathan Saul and Polina Nikolskaya

LONDON/MOSCOW (Reuters) – Russian tankers have supplied fuel to North Korea on at least three occasions in recent months by transferring cargoes at sea, according to two senior Western European security sources, providing an economic lifeline to the secretive Communist state.

The sales of oil or oil products from Russia, the world’s second biggest oil exporter and a veto-wielding member of the United Nations Security Council, breach U.N. sanctions, the security sources said.

The transfers in October and November indicate that smuggling from Russia to North Korea has evolved to loading cargoes at sea since Reuters reported in September that North Korean ships were sailing directly from Russia to their homeland.

“The Russian vessels made transfers at sea to the North Koreans,” the first security source, who spoke on condition of anonymity, told Reuters. The source said the transfers of oil or oil products took place on several occasions and were a breach of sanctions.

A second source, who independently confirmed the existence of the Russian ship-to-ship fuel trade with North Korea, said there was no evidence of Russian state involvement in the latest transfers.

“There is no evidence that this is backed by the Russian state but these Russian vessels are giving a lifeline to the North Koreans,” the second European security source said.

In comments carried by Russia’s RIA Novosti state news agency on Saturday, the Russian Foreign Ministry said the country was observing sanctions against North Korea.

The two security sources cited naval intelligence and satellite imagery of the vessels operating out of Russian Far Eastern ports on the Pacific but declined to disclose further details to Reuters, saying it was classified.

The Russian Customs Service declined to comment when asked on Wednesday if Russian ships had supplied fuel to North Korean vessels. The owner of one ship accused of smuggling oil to North Korea denied any such activity.

SATELLITE DATA

The U.S. State Department, in a statement, called on Russia and other U.N. members to “strictly implement” sanctions on North Korea and to work “more closely together to shut down U.N.-prohibited activities, including ship-to-ship transfers of refined petroleum and the transport of coal from North Korea”.

The latest report came as China, responding on Friday to criticism from U.S. President Donald Trump, denied it had illicitly shipped oil products to North Korea.

North Korea relies on imported fuel to keep its struggling economy functioning. It also requires oil for its intercontinental ballistic missile and nuclear program that the United States says threatens the peace in Asia.

“The vessels are smuggling Russian fuel from Russian Far Eastern ports to North Korea,” said the first security source, who spoke on condition of anonymity.

Reuters was unable to independently verify that the vessels had transferred fuel to North Korean vessels, whether the Russian state knew about the sales or how many Russian vessels were involved in the transfers. It was also unclear how much fuel may have been smuggled.

Ship satellite positioning data consulted by Reuters and available on Reuters Eikon shows unusual movements by some of the Russian vessels named by the security sources including switching off the transponders which give a precise location.

The security sources said the Russian-flagged tanker Vityaz was one vessel that had transferred fuel to North Korean vessels.

The Vityaz left the port of Slavyanka near Vladivostok in Russia on Oct. 15 with 1,600 tonnes of oil, according to Russian port control documents.

Documents submitted by the vessel’s agent to the Russian State Port Control authority showed its destination as a fishing fleet in the Japan Sea. Shipping data showed the vessel switched off its transponder for a few days as it sailed into open waters.

According to the European security sources, the Vityaz conducted a ship-to-ship transfer with the North Korean Flagged Sam Ma 2 tanker in open seas during October.

Reuters could not independently verify the transfer as ship tracking data showed that the Sam Ma 2 had turned off its transponder from the start of August.

The owner of the Russian vessel denied any contact with North Korean vessels but also said it was unaware that the vessel was fuelling fishing boats.

OIL PRODUCTS

Yaroslav Guk, deputy director of the tanker’s owner, Vladivostok-based Alisa Ltd, said the vessel had no contacts with North Korean vessels.

“Absolutely no, this is very dangerous,” Guk told Reuters by telephone. “It would be complete madness.”

When contacted a second time, Guk said the vessel did not have any contacts with North Korean ships and that he would not answer further questions.

An official at East Coast Ltd, the vessel’s transport agent, declined to comment.

Two other Russian flagged tankers made similar journeys between the middle of October and November, leaving from the ports of Slavyanka and Nakhodka into open seas where they switched off their transponders, shipping data showed.

In September, Reuters reported that at least eight North Korean ships that left Russia loaded with fuel this year headed for their homeland despite declaring other destinations, a ploy that U.S. officials say is often used to undermine sanctions.

A Russian shipping source with knowledge of Far Eastern marine practices said North Korean vessels had stopped loading fuel in Russia’s Far Eastern ports but that fuel is delivered at sea by tankers using ship-to-ship transfers, or even by fishing vessels.

China on Friday denied reports it had been illicitly selling oil products to North Korea in violation of U.N. sanctions, after U.S. President Donald Trump said he was unhappy that China had allowed oil to reach the isolated nation.

China’s denial came a day after it blocked a U.S. effort at the United Nations to blacklist six ships Washington believes had engaged in illicit trade with North Korea, a U.N. Security Council diplomat said.

According to documents seen by Reuters this month, the United States had proposed that the U.N. Security Council blacklist 10 ships for illicit trade with North Korea.

It accused the vessels of “conducting illegal ship-to-ship transfers of refined petroleum products to North Korean vessels or illegally transporting North Korean coal to other countries for exports.”

Three North Korean ships among the 10 were blacklisted, along with a Panama-registered vessel.

(Additional reporting by David Brunnstrom in Washington, and Gabrielle Tetrault-Farber in Moscow; Editing by Giles Elgood, Leslie Adler and Alison Williams)

Yemen set to run out of fuel and vaccine in a month: UNICEF

A boy is being treated at a malnutrition treatment center in Sanaa, Yemen November 4, 2017.

GENEVA (Reuters) – Yemen’s stocks of fuel and vaccines will run out in a month unless a Saudi-led military coalition allows aid into the blockaded port of Hodeidah and Sanaa airport, UNICEF’s representative in the country said on Friday.

Meritxell Relano, speaking by phone to reporters in Geneva, said fuel prices had risen 60 percent and there were urgent concerns about a diphtheria outbreak, as well as food shortages because of the port closure.

“The situation that was already catastrophic is just getting worse,” she said. “The impact of this is unimaginable in terms of health and diseases.”

After two years of civil war, Yemen has 7 million people on the brink of famine and has had 900,000 suspected cholera cases in the past six months.

The number of new cases has fallen consistently for the past eight weeks, according to data from the World Health Organization.

But progress against cholera, which has killed 2,196 people, could be reversed by the blockade, WHO spokeswoman Fadela Chaib told a regular U.N. briefing in Geneva.

“If the closure is not stopped in the coming days, we may see that the progress is stopped,” Chaib said. “We can see even more cases and more deaths as a result of not being able to get access to people.”

The closure of Hodeidah port prevented a ship setting sail from Djibouti with 250 tonnes of WHO medical supplies on Wednesday. Trauma kits in particular are running short.

“If the hostilities continue and the ports remain closed, we will not be able to perform life-saving surgeries or provide basic healthcare,” Chaib said.

 

(Reporting by Tom Miles; Editing by Andrew Roche)

 

Convoy rolls into Damascus suburbs with aid for 40,000

Smoke rises at a damaged site in Ain Tarma, eastern Damascus suburb of Ghouta, Syria, September 14, 2017.

GENEVA (Reuters) – A convoy from the United Nations and Syrian Arab Red Crescent entered towns in the besieged Damascus suburb of eastern Ghouta on Monday, bringing aid to 40,000 people for the first time since June 2016, the United Nations said.

A tightening siege by government forces has pushed people to the verge of famine in the eastern suburbs, residents and aid workers said last week, bringing desperation to the only major rebel enclave near the Syrian capital.

The U.N. Office for the Coordination of Humanitarian Affairs (OCHA) said on Twitter they had entered the towns of Kafra Batna and Saqba.

The Syrian Arab Red Crescent said in a separate tweet that the inter-agency convoy had 49 trucks.

They carried food, nutrition and health items for 40,000 people in need, OCHA spokesman Jens Laerke said. “The last time we reached these two locations were in June 2016,” he said.

A health worker in Saqba who was present when the convoy started to offload said that nine trucks of foodstuffs, including milk and peanut butter, and four trucks of medicines had arrived so far.

Technical specialists were on board to assess needs in the towns in order to plan a further humanitarian response, he said.

“More aid to complement today’s delivery is planned in the coming days,” Laerke added.

At least 1,200 children in eastern Ghouta suffer from malnutrition, with 1,500 others at risk, a spokeswoman for the U.N. children’s agency UNICEF said last week.

Bettina Luescher, spokeswoman of the U.N. World Food Programme (WFP), said the convoy carried nutrition supplies for 16,000 children.

Food, fuel and medicine once travelled across frontlines into the suburbs through a network of underground tunnels. But early this year, an army offensive nearby cut smuggling routes that provided a lifeline for around 300,000 people in the enclave east of the capital.

 

(Reporting by Stephanie Nebehay; Additional reporting by Ellen Francis in Beirut; Editing by Alison Williams and Peter Graff)

 

Exclusive: From Russia with fuel – North Korean ships may be undermining sanctions

Exclusive: From Russia with fuel - North Korean ships may be undermining sanctions

By Polina Nikolskaya

MOSCOW (Reuters) – At least eight North Korean ships that left Russia with a cargo of fuel this year headed for their homeland despite declaring other destinations, a ploy that U.S. officials say is often used to undermine sanctions.

Reuters has no evidence of wrongdoing by the vessels, whose movements were recorded in Reuters ship-tracking data. Changing a ship’s destination once underway is not forbidden and it is unclear whether any of the ships unloaded fuel in North Korea.

But U.S. officials say that changing destination mid-voyage is a hallmark of North Korean state tactics to circumvent the international trade sanctions imposed over Pyongyang’s nuclear weapons program.

Changing course and the complex chain of different firms –many offshore — involved in shipments can complicate efforts to check how much fuel is supplied to North Korea and monitor compliance with a cap on fuel imports under U.N. sanctions.

“As part of North Korea’s efforts to acquire revenue, the regime uses shipping networks to import and export goods,” U.S. Assistant Secretary of the Treasury Marshall S. Billingslea told the Congressional Foreign Affairs Committee this month.

“North Korea employs deceptive practices to conceal the true origins of these goods. Pyongyang has been found to routinely falsify a vessel’s identity and documentation.”

VOYAGE OF THE MA DU SAN

The eight vessels identified in the tracking data set sail from the Far Eastern Russian port of Vladivostok or nearby Nakhodka and registered China or South Korea as their destination with the Information System for State Port Control.

After leaving Russia, they were next recorded off the North Korean ports of Kimchaek, Chongjin, Hungnam or Najin. None went on to China and most went back to Russia.

All had a cargo of diesel, a source at the company that services vessels in Vladivostok said. Their cargo capacity ranged from 500 tonnes to 2,000 tonnes.

One of the vessels was the Ma Du San, owned by North Korea’s Korea Kyongun Shipping Co. It took on a cargo of 545 tonnes of marine fuel at Vladivostok’s Pervaya Rechka terminal, owned by Russia’s Independent Petroleum company (IPC).

Reuters obtained a bill of lading — a receipt for goods issued when a ship loads up — dated May 19 showing the Ma Du San’s cargo came from Khabarovskiy NPZ, a refinery owned by IPC.

The ship set sail on May 20. Documents filed with Russia’s Information System for State Port Control stated its next destination as the Chinese port of Zhanjiang and the bill of lading showed it as Busan in South Korea.

The Ma Du San’s next recorded location after Vladivostok was inside the perimeter of the port of Kimchaek — all the other ships were tracked only in the vicinity of ports. North Korean ships intermittently turn off their transponders, and satellites cannot track them at such times, U.S. officials say.

Allegations outlined in two U.S. Treasury Department sanctions orders and a legal complaint filed by the U.S. government match the information Reuters obtained on the Ma Du San though the U.S. documents do not name the vessel involved.

SANCTIONS BLACKLIST

On June 1, the U.S. Treasury Department included IPC on its sanctions blacklist, saying it provided oil to North Korea and may have been involved in circumventing sanctions.

On Aug. 22, the U.S. government sanctioned two more companies, both registered in Singapore — Transatlantic Partners and Velmur Management Pte. Ltd.

The legal complaint, also filed on Aug. 22, accused the two firms of money laundering on behalf of sanctioned North Korean banks seeking to buy petroleum products, citing a bill of lading for May 19 for a cargo of diesel sold by IPC to Velmur and loaded in Vladivostok — the same date as the bill of lading for the Ma Du San.

Andrey Serbin, who represents Transatlantic Partners, said the firm had not received payments from a sanctions-hit bank and that ownership of the fuel changed after it was loaded.

“We sold the fuel to a Chinese company,” Serbin, who has been blacklisted by the U.S. government for “operating in the energy industry in the North Korean economy” and working to purchase fuel for delivery to North Korea, said of several shipments where the company acted as middleman.

“There’s no way we can control them (the goods),” he said.

Serbin did not identify the vessels Transatlantic Partners loaded fuel on to, but a source in a company that services ships in Vladivostok said the Ma Du San was among them.

The bill of lading named the recipient of the Ma Du San’s cargo as a company called LLC Sky Shipping Limited. Reuters was unable to find any record of such a firm.

Velmur said it could not have known where the cargo would end up and did not knowingly help anyone dodge sanctions.

IPC did not respond to a request for comment. Its parent company, Bermuda-registered Alliance Oil Company Ltd., denied having any contractual relations with North Korean companies when U.S. sanctions were imposed on IPC.

The U.S. Treasury and State departments declined to answer questions about Reuters’ findings.

Russia’s foreign ministry did not respond to questions about fuel exports to North Korea but has said Russia complies with the sanctions. Russia’s customs service said it could not provide information about movement of goods across borders.

Since the U.S. sanctions were imposed on IPC, all North Korean-flagged vessels that had been in Vladivostok port have left, according to the tracking data.

They departed with no cargo, an employee with a shipping agent in Vladivostok said. This is confirmed by documents seen by Reuters.

Russian supplies of oil and oil products to North Korea are much smaller than volumes shipped by China, Pyongyang’s only major ally. Beijing has acted to reduce the flows, but Russia’s trade in all goods with North Korea more than doubled in the first quarter of 2017 to $31.4 million.

Moscow’s trade with Pyongyang is under closer scrutiny following a series of missile launches by North Korea and a test involving what it said was a hydrogen bomb.

(Additional reporting by David Brunnstrom in WASHINGTON, Chen Aizhu in BEIJING, James Pearson in SEOUL, Katya Golubkova, Gleb Stolyarov, Vladimir Soldatkin and Olesya Astakhova in MOSCOW; Editing by Christian Lowe and Timothy Heritage)

Texas edges closer to recovery after Harvey as key pipeline restarts

Samaritans help clear debris from the house of a neighbor which was left flooded from Tropical Storm Harvey in Houston, Texas, U.S. September 3, 2017.

By Catherine Ngai

HOUSTON (Reuters) – The U.S. Gulf Coast moves closer to recovery from Hurricane Harvey on Monday when the biggest American fuel system restarts a key segment shut down by devastating rains and officials weigh how to pay for billions of dollars in damage.

The move by Colonial Pipeline to resume transporting distillates such as diesel fuel comes as the Gulf region’s energy industry starts to come back online.

Flooding from Harvey drove up fuel prices by shutting down almost a quarter of U.S. refining capacity.

The storm came ashore on Aug. 25 as the most powerful hurricane to hit Texas in more than 50 years. It killed an estimated 50 people, displaced more than 1 million and damaged some 200,000 homes in a path of destruction stretching for more than 300 miles (480 km).

Colonial said it expected to reopen a Texas section of its network from Houston to Hebert, Texas, on Monday, which is the Labor Day holiday. The line would be ready to start moving gasoline on Tuesday, it said.

The pipelines’ reopening will restore links between refineries along the Gulf Coast, the U.S. petrochemical hub, to markets in the Northeast.

Another fuel system, Explorer Pipeline, said a link running from Texas to Oklahoma restarted on Sunday, with a second pipeline from Oklahoma into the Midwest expected to resume on Monday.

Retail fuel costs surged through the weekend amid fears of shortages, despite the restart of several key Gulf refineries that had been crippled by Harvey.

Treasury Secretary Steven Mnuchin challenged Congress on Sunday to raise the government’s debt limit in order to free up relief spending. Texas Governor Greg Abbott said the storm had caused up to $180 billion in damage.

President Donald Trump’s administration has asked Congress for an initial $7.85 billion for recovery efforts, a small fraction of what will eventually be needed.

Even that amount could be delayed unless Congress quickly increases the government’s debt ceiling, Mnuchin said. The United States is on track to hit its mandated borrowing limit by the end of the month unless Congress increases it.

Houston Mayor Sylvester Turner said the city expected most public services and businesses to be restored by Tuesday, the first day after the Labor Day holiday.

About 37,000 families were staying in 270 shelters in Texas, the highest number reported by the American Red Cross.

The city mandated the evacuation of thousands of people on the western side of Houston on Sunday to accommodate the release of water from reservoirs that otherwise might sustain damage. The storm stalled over Houston, the fourth-largest U.S. city, dumping more than 50 inches (1.3 m) on the region.

 

(Reporting by Catherine Ngai in HOUSTON and Ian Simpson in WASHINGTON; Editing by Paul Tait)

 

Exclusive: China’s CNPC suspends fuel sales to North Korea as risks mount – sources

FILE PHOTO: PetroChina's logo is seen at its petrol station in Beijing, China, March 21, 2016. Picture taken March 21, 2016. REUTERS/Kim Kyung-Hoon/File Photo

By Chen Aizhu

BEIJING (Reuters) – China National Petroleum Corp has suspended sales of fuel to North Korea over concerns the state-owned oil company won’t get paid, as pressure mounts on Pyongyang to rein in its nuclear and missile programmes, three sources told Reuters.

It’s unclear how long the suspension will last. A prolonged cut would threaten critical supplies of fuel and force North Korea to find alternatives to its main supplier of diesel and gasoline, as scrutiny of China’s close commercial ties with its increasingly isolated neighbour intensifies.

CNPC and the Ministry of Commerce did not respond to requests for comment. North Korea’s embassy in Beijing declined to comment.

Chinese foreign ministry spokesman Lu Kang, asked about the sale suspension and whether the Chinese government put pressure on CNPC to make this decision, said: “I do not understand this situation you are talking about” and declined to elaborate.

A source with direct knowledge of the matter said CNPC decided to put fuel sales on hold “over the last month or two” and described it as a “commercial decision”.

“It’s no longer worth the risks,” said the source. Chinese and international banks are stepping up compliance checks on companies dealing with countries on the U.S. sanctions list, such as North Korea, he said.

The North Korean agents who mostly buy the diesel and gasoline have been unable recently to pay for the supplies — CNPC normally requires upfront payments, the source said.

Reuters was unable to determine if the agents have started facing credit problems with Chinese and international banks worried about sanctions compliance issues.

Two other sources briefed about CNPC’s decision confirmed the suspension of diesel sales, but did not know directly about the gasoline move. The three people declined to be named due to the sensitivity of the matter and are not authorised to speak to the media.

PRICES SURGE IN NORTH

Last year, China shipped just over 96,000 tonnes of gasoline and almost 45,000 tonnes of diesel worth a combined $64 million to North Korea, where it is used across the economy from fishermen and farmers to truckers and the military.[O/CHINA4]

Most of that was sold by CNPC, which has grown over the past two decades to dominate China’s energy trade with Pyongyang.

Data for May released on Friday showed China supplied significantly lower volumes of diesel and gasoline compared with a month earlier, although monthly tonnages can vary widely. June data will be released in late July.

Fuel prices in North Korea, meanwhile, have sharply risen in recent months, suggesting a tightening in supply.

A Reuters analysis of data collected by Daily NK showed the price of gasoline sold by private dealers in Pyongyang and the northern border cities of Sinuiju and Hyesan had hit $1.46 per kg on June 21, up almost 50 percent from April 21. Until then, they had remained relatively stable since late last year.

Diesel prices averaged $1.20 per kg as of June 21, more than double over the same period, according to Daily NK, a website run by defectors who collect prices via phone calls with North Korean fuel traders.

U.S SCRUTINY

North Korea’s unprecedented pace of nuclear and ballistic missile tests has prompted China, which handles 90 percent of North Korea’s trade, to start squeezing Pyongyang.

In February, Beijing suspended coal purchases until the end of the year, cutting off North Korea’s main export revenue source. In 2016, North Korea sold 22.5 million tonnes of coal to China, worth about $1.9 billion, according to Chinese customs.

The United States has pressed China to exert more economic and diplomatic pressure on North Korea, but Beijing has said its influence on North Korea is limited and it is doing all it can.

President Donald Trump, frustrated over Beijing’s inaction on North Korea and bilateral trade issues, is now considering possible trade actions against China, three senior administration officials told Reuters on Tuesday.

The sources in China saw no sign yet that Beijing is cutting crude oil to Pyongyang. China has not disclosed its crude exports to North Korea for several years, but industry sources say it supplies via an aging pipeline about 520,000 tonnes of crude a year to North Korea, worth about $170 million at current market prices.

North Korea imports all its oil needs, mostly from China and a much smaller amount from Russia.

(Reporting by Chen Aizhu in BEIJING; additional reporting by Heekyong Yang; in SEOUL, Lusha Zhang and Ben Blanchard in BEIJING; Editing by Josephine Mason and Bill Tarrant)

With tunnel lifeline cut, pressure mounts on Syrian rebel enclave

Abu Malek, one of the survivors of a chemical attack in the Ghouta region of Damascus that took place in 2013, uses his crutches to walk along a street in the Ghouta town of Ain Tarma, Syria. REUTERS/Bassam Khabieh

By Ellen Francis

BEIRUT (Reuters) – For nearly four years, food, fuel and medicine have traveled across frontlines into the besieged eastern suburbs of Damascus through a network of underground tunnels.

But an army offensive near the Syrian capital has shut the routes into the rebel enclave of Eastern Ghouta, causing supplies to dwindle and prices to rocket, residents say.

“The price of fuel went up like crazy,” said Adnan, 30, the head of a local aid group that distributes food.

A cooking gas canister now costs 50,000 Syrian pounds, nearly four times its price before the attack and almost 20 times the state-regulated price in nearby Damascus.

Adnan, whose aid group buys rice, lentils and other goods that arrive via the tunnels, said the shutdown and steep price hikes had triggered rising despair in the suburbs.

As the army tightens the noose, fighters and civilians are bracing for a full-blown assault and bitter shortages that could last through the winter.

“The operation aims to strangle the Ghouta … by closing off the crossings and tunnels,” Hamza Birqdar, military spokesman for the Jaish al-Islam rebel group, told Reuters.

“Trade through the tunnels has completely stopped.”

Government forces have blockaded Eastern Ghouta, a densely populated pocket of satellite towns and farms, since 2013. It remains the only major rebel bastion near Damascus, though it has shrunk by almost half over the past year.

President Bashar al-Assad’s government has been steadily defeating pockets of armed rebellion near the capital, with the help of Russian air power and Iranian-backed militias.

It ultimately aims to seize the Ghouta, pushing fighters to accept state rule or leave for rebel territory in the north, in a type of negotiated withdrawal that has helped shore up its rule over Syria’s main urban centers.

TUNNEL CRACKDOWN

Heavy fighting and air strikes have rocked the districts that stand between Damascus and Eastern Ghouta, severing smuggling routes that provided a lifeline for around 300,000 people in the besieged suburbs.

The army assault entered a higher gear in recent months in the districts of Barzeh and Qaboun, at the capital’s eastern edges, which abruptly ended a local truce that had been in place with rebels there since 2014.

Their relative calm and location had turned them into a transit point where traders brought supplies from the capital and shuttled them underground into the opposition enclave. Government forces have now swept into most of the two districts.

The siege generated a black market economy and profiteers who traded across frontlines, says an activist who has smuggled medicine through one of the tunnels.

Goods prices were ramped up by payments to checkpoints in government-held areas and rebels that control the tunnels, the activist and other residents said.

Syrian officials were not available for comment on such allegations.

Syrian state media says Ghouta militants dug tunnels hundreds of meters long to move weapons and ambush army positions. The tunnels have been a target of army operations, with several blown up in recent months, it has said.

The wide array of rebels – including hardline jihadists and other groups supported by Turkey, the United States and Gulf monarchies – have been on the back-foot across Syria.

In Eastern Ghouta, a bout of renewed rebel infighting, after a rebel attack at the fringes of Damascus quickly fizzled out in March, could play into the government’s hands.

Birqdar said rebels faced “heavy shelling, air strikes, and incoming tanks” every day. “We must prepare for every scenario that could happen on the battlefield,” he said.

“We are fully ready to negotiate over stopping the bloodshed by the regime, but will not accept any talks that lead to surrender.” He ruled out a local evacuation deal.

The government says such deals have succeeded where U.N.-based peace talks failed. The opposition describes it as a strategy of forced displacement after years of siege – a method of warfare the United Nations has condemned as a war crime.

WHEN WINTER COMES

The U.N. has warned of impending starvation if aid does not reach Eastern Ghouta, where international deliveries have long been erratic and obstructed. A convoy that entered last week, for the first time in months, carried food and supplies for just about 10 percent of the estimated population.

“People have rushed to the markets to stock up,” said Adnan. “Because they have bitter memories of 2013,” when their towns first came under siege.

Merchants inside the Ghouta had filled up large warehouses that would last months, and residents would harvest crops in the area’s remaining farmland in the summer, he said. “Things will get worse when winter comes.”

The Wafideen crossing at the outskirts, where checkpoints allowed food to enter, has also been restricted since February, Adnan and others said.

One resident said rebel fighters also ran their own hidden routes through which they had moved unnoticed or smuggled arms.

Medics relied on the tunnels for antibiotics, anesthetics, and other supplies, said Abu Ibrahim Baker, a surgeon in Eastern Ghouta. Hospitals would be “able to hold out, God willing, but not for very long,” he said.

(Reporting by Ellen Francis; Editing by Tom Perry and Catherine Evans)

California would increase fuel taxes under $52 billion road repair plan

FILE PHOTO: Gasoline drips off a nozzle during refueling at a gas station in Altadena, California March 24, 2012. REUTERS/Mario Anzuoni

By Sharon Bernstein

SACRAMENTO, Calif. (Reuters) – California would increase gasoline taxes and other transportation-related fees for the first time in decades to fund an ambitious $52 billion plan to repair the state’s sagging infrastructure under a deal announced Wednesday.

The deal between fiscally moderate Democratic Governor Jerry Brown and leaders of the majority Democrat legislature would increase the excise tax on gasoline by 12 cents per gallon from the current $0.28, and on diesel fuel by 20 cents per gallon, among other fees, over 10 years to pay for repairs to roads and bridges as well as for anti-congestion projects.

“Let’s be clear – our roads suck,” said Assembly Speaker Anthony Rendon, who represents blue-collar suburbs south of Los Angeles at a news conference announcing the deal. “Our bridges are crumbling and traffic takes time away from our families. Delays cost businesses money.”

California’s transportation systems have languished unrepaired and unexpanded for decades, as budget constraints and politics have stymied plans by Democrats and Republicans alike.

Brown, a fiscal moderate credited with bringing the state back from a $27 billion budget gap, has refused to sign on to plans that involve borrowing money, and Republicans and some moderate Democrats have resisted raising gasoline taxes.

But the same Democratic wave that led California to go two-for-one in favor of former presidential candidate Hillary Clinton last November gave the party a two-thirds majority in both houses of the legislature, enough to pass new taxes without Republican support.

The deal won support of construction companies and labor unions, and Democratic lawmakers on Wednesday put up a unified front on what had been a divisive issue over raising taxes.

Under it, owners of electric vehicles would have to pay a $100 fee to help repair roads even though they don’t use gasoline and would not pay the gas tax. The fees and taxes would raise about $5.2 billion per year.

Republicans condemned the plan, saying transportation taxes and fees were already among the highest in the country.

“The transportation proposal announced by the Capitol Democrats is a costly and burdensome plan that forces ordinary Californians to bail out Sacramento for years of neglecting our roads,” Republican leaders said in a joint statement.

Their opposition means that if even a few moderate Democrats defect, the package could fail. Brown urged support.

“This is like fixing the roof on your house,” the governor said. “If you don’t fix the house, your furniture will be ruined. The rug will be destroyed. The wood will rot.”

(Reporting by Sharon Bernstein; Editing by James Dalgleish)