Russia resorts to price flooring to stave off sanctions + CMA CGM snaps up Bollore Logistics in USD 5 bn transaction

Russia is implementing its first-ever price floor mechanism to protect its oil revenues from G7 sanctions, Bloomberg reported on Friday. Energy firms in Russia used an average price of USD 65 a barrel of Russia’s Urals crude to calculate their oil taxes in January. The government applied a USD 15 a barrel discount to the Brent benchmark for Urals in their tax formula, even though the market price of crude was lower, according to Bloomberg. Crude oil producers were selling their Urals cargos at an average of USD 18.12 per barrel at Russian ports in January. The revenues from this move will be published next week. Russia’s oil and gas industries produce around a third of the country’s total budget revenue, the newswire explains.

Boeing is considering a buyback of former subsidiary Spirit AeroSystems, a key supplier of 737 Max jets, Reuters reported on Friday, citing a source with knowledge of the matter. The talks come as the two companies are looking to address quality concerns and manage costs related to 737 MAX production. The potential merger would see Spirit, which was spun off in 2005, return to Boeing’s control. Spirit has engaged with bankers and held talks with Boeing regarding strategic options, the newswire said, adding that both companies have declined to comment. Boeing had previously thought about re-acquiring Spirit AeroSystems, but was dissuaded due to the optics of making a higher price acquisition.

French shipping and logistics company CMA CGM has completed a USD 5 bn acquisition of French conglomerate Bollore Logistics, its biggest-ever takeover, Reuters reported on Thursday. Through the acquisition, which was first announced last year, CMA CGM seeks to expand into freight management for pharma, cosmetics, and luxury firms. CMA CGM says the move makes it one of the world’s five largest logistics firms and will make logistics account for around 45% of group sales in 2024, according to the newswire. 

The US Federal Aviation Administration (FAA) says Boeing has 90 days to come up with a plan to improve quality control, CNBC reported last week. Following the recent incident where a panel flew off a 737 Max aircraft mid-flight, the National Transportation Safety Board (NTSB) conducted an investigation that revealed the panel was missing four bolts. “Boeing must commit to real and profound improvements,” FAA Administrator Mike Whitaker said after a meeting with the company’s CEO. “Making foundational change will require a sustained effort from Boeing’s leadership, and we are going to hold them accountable every step of the way, with mutually understood milestones and expectations.”