Page 7 - bneMagazine March 2023 oil discount

bne March 2023 Companies & Markets I 7
In 2023, GDP is expected to decline further, mainly as a result of the partial mobilisation and reduced gas exports to Europe, along with new oil sanctions imposed by the West.
The EU oil embargo and price cap on Russian oil have forced the country to sell its oil at a huge discount. The price of Urals, Russia's most important crude oil grade, dropped to USD 47 per barrel in the first four weeks after the measures took effect, representing a discount of 43% compared to North Sea Brent. This reduction in oil prices significantly lowers tax revenues, with 40% of the revenue coming from the energy sector where export duties on oil play a major role.
Wolt couriers in Tbilisi go on strike
Mack Tubridy in Tbilisi
On a typical Sunday afternoon, relative calm resides over Chavchavadze avenue in Tbilisi's elite Vake neighbourhood, as people stroll along the wide, tree-lined sidewalks and pop in and out of boutique shops.
But on Sunday, February 5, the main street was flooded by a long convoy of honking scooters and motorcycles driven by Wolt couriers, who are highly visible because of their electric blue jackets and cube-shaped backpacks.
Just days earlier, Georgian couriers for the Helsinki-based food delivery company declared a strike. They demand higher wages and changes to how Wolt measures delivery distance. But another source of workers' ire was the recent announcement by the company of a new remuneration system, which the couriers insist will lead to decreased earnings.
Striking couriers first gathered across from Rustaveli metro station in the city centre. Then they rode to Tbilisi State University's library to show solidarity with taxi drivers,
who on the same day were also protesting for better work conditions. Their final rallying point was outside Wolt Georgia's headquarters in the Vake neighbourhood.
In front of the company's local office the striking couriers stood scattered in groups, laughing, smoking, and some
‘The sanctions put in place on 5 December are the most effective imposed so far,’ says Vasily Astrov, Russia expert at wiiw, though he added that he believes they will have little impact on Putin’s ability to finance the war for now, as the gap will be financed through higher – but still bearable – budget deficits.
wiiw's forecast contrasts with the latest update from the International Monetary Fund (IMF), which improved Russia’s GDP outlook for 2023 from 2.1% recession previously to 0.3% growth.
Wolt couriers gathered in front of the company's local office in Tbilisi. bne IntelliNews
played games on their phones. A throng amassed next to a nearby convenience store, where couriers bought coffee and sandwiches.
Wolt delivery workers are not unionised. Those involved in the strike said they coordinated their action through a closed Facebook group.
Among the couriers present at the Sunday action was Vasili Demetradze, who told bne IntelliNews that he started delivering for Wolt after the bar where he used to work was closed because of COVID-19 restrictions.
"My wages at Wolt were fine before. It was also nice to choose my own work schedule. But last year my wages never went up, and rent prices have doubled. Everything has gotten more expensive," said Demetradze.
“My wages at Wolt were fine before. It was also nice to choose my own work schedule. But last year my wages never went up, and rent prices have doubled”
www.bne.eu