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Wednesday, 23 March 2022

Russia sanctions to exacerbate global diesel shortage, warn oil traders

Fuel rationing could be coming to Europe — and that’s before it goes cold turkey from Russian gas: Europe faces a “systemic” shortage of diesel due to sanctions on Russia that could force governments to ration fuel, three of the world’s largest energy traders have warned, according to the Financial Times. The heads of Vitol, Gunvor and Trafigura said that western sanctions on Moscow could remove as much as 3 mn barrels of oil and petroleum products from the market, producing a global supply crunch and potentially necessitating drastic measures in Europe, which imports half of its diesel from Russia.

Saudi Arabia’s Nahdi, the country’s biggest retail pharma chain, surged in its trading debut after raising almost USD 1.4 bn in the country’s biggest IPO since oil giant Aramco, Bloomberg reported. Shares surged 21% to an intraday high of SAR 158.40, up from their SAR 131 IPO price, before settling 14% higher at SAR 150. The IPO comes as equities in the oil producer outperform other emerging markets, which are seeing heavy outflows due to the Ukraine crisis.

The neverending debacle that is Evergrande: Lenders to Evergrande Property Services — China Evergrande’s property services unit — have claimed c.USD 2.1 bn in cash, according to a filing (pdf) to the Hong Kong stock exchange by the unit. The move is set to reduce the value of the failing developer’s bonds even further, says the Financial Times. The deposits had been pledged as security for lenders, the developer wrote in the filing, adding that it is now investigating the incident and “assessing its implications.” The developer’s bonds had already been trading at a fraction of their USD 20 bn initial face value following its default last year. The exchange halted trading in the developer and its subsidiaries following the news.




+1.3% (YTD: -2.4%)



Buy 18.45

Sell 18.55



Buy 18.45

Sell 18.55


Interest rates CBE

9.25% deposit

10.25% lending




+0.4% (YTD: +14.2%)




+0.7% (YTD: +13.5%)




-0.3% (YTD: +4.8%)


S&P 500


+1.1% (YTD: -5.3%)


FTSE 100


+0.5% (YTD: +1.3%)


Brent crude

USD 115.48



Natural gas (Nymex)

USD 5.14




USD 1,925.80




USD 42,822

+3.7% (as of midnight)


The EGX30 rose 1.3% at yesterday’s close on turnover of EGP 2.0 bn (52.5% above the 90-day average). Foreign investors were net sellers. The index is down 2.4% YTD.

In the green: Fawry (+5.4%), ADIB Egypt (+4.5%) and CIB (+3.1%).

In the red: Orascom Development Egypt (-7.5%), CIRA (-4.2%) and GB Auto (-3.1%).

It’s green as far as the eye can see this morning: Asian markets are comfortably in positive territory this morning and futures suggest all major European and North American indexes will follow suit at the opening bell.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.