Economy

Trump Jr.-linked company in deal with Pentagon – shares soar

The relatively unknown drone company Unusual Machines is soaring 14 percent on Wall Street after securing its largest-ever contract with the Pentagon, reports the Financial Times.

The president's son Donald Trump Jr. has owned shares in the company for $4 million, equivalent to just over 37 million kronor, the newspaper notes.

The contract includes 3,500 drone engines along with several other drone parts. Unusual Machines states that the Department of Defense has indicated that it intends to buy an additional 20,000 components from the company next year, writes the FT.

Sanctions
Merz: Assumes that German Rosneft will be exempt

When both the EU and the US have imposed new sanctions against the Russian oil giants Rosneft and Lukoil, German Chancellor Friedrich Merz assumes that Rosneft’s German subsidiary will be exempt. This is reported by Bloomberg.

“We will discuss it with the Americans,” says Merz at an EU summit in Brussels.

Analysis: Sanctions are two steps forward – one back

It is uncertain whether Western sanctions are pressuring Russia to end the invasion, according to Bloomberg's Marc Champion. Only a comprehensive plan that combines economic penalties, military support and realistic goals can convince Putin to change course.

“If this were easy, it would have happened a long time ago,” he writes.

Malin Rising at Dagens Industri believes that the sanctions announcement is two steps forward and one step back.

“The fact that the US is now imposing sanctions, which seriously appear to be pressuring China and India to reduce Russian oil purchases, is a huge step forward,” she writes. 

The new sanctions – it’s about the matter

• The US imposed new sanctions against the Russian oil giants Rosneft and Lukoil on Wednesday.
• The EU's 19th sanctions package against Russia was approved the next day by all member states and includes, among other things, an accelerated phasing out of Russian gas and restrictions on Russian diplomats.
• The Russian government and President Vladimir Putin condemn the US sanctions, describing them as unfriendly and ineffective, while former President Dmitry Medvedev calls them an act of war.
• State-owned Chinese oil companies paused purchases of Russian oil as a result of the new sanctions, according to Reuters sources, while Indian refiners announced reduced purchases.
• The price of Texas oil WTI rose by more than 4 percent to nearly $62 per barrel on Thursday after the announcement of the sanctions and reduced demand for Russian oil.