Morning Brief: July 31

• India does not intend to abandon the supply of Russian oil. The Russian ambassador to India said that the country imports more than 80% of oil and gas, and any price changes, even minimal ones, have a direct impact on economic growth and production. Russian oil accounts for 45% of Indian imports. In response, Trump called both economies dying and noted that he «doesn't care what India does to Russia.» 

• The United States and South Korea have signed a trade agreement. Donald Trump has announced a new deal with South Korea. As part of the agreement, the parties agreed on a 15% duty on imports to the United States, as well as on Seoul's investments in the American economy worth $350 billion. Additionally, South Korea has committed to purchase $100 billion worth of liquefied natural gas and other energy resources.

• Trump has imposed the largest package of sanctions against Iran. The United States has announced more than 115 new sanctions that have affected over 50 individuals and businesses. According to the American side, the measures are aimed at the «elite of the regime», which benefits from the sanctions schemes. The focus was on the son of Iran's supreme leader, who is accused of creating a fleet of tankers to transport oil in circumvention of restrictions.

• Canada intends to recognize the Palestinian State. Canadian Prime Minister Mark Carney announced plans to officially recognize Palestine at the UN General Assembly in September. Thus, Canada will become the fourth country to express such readiness, after France, Great Britain and Malta. This decision may have an impact on international relations, given the tensions in the region.

• The 18th package of sanctions will make it more difficult to unlock the assets of Russians in Europe. Previously, sanctions were imposed only on transactions conducted by Russian banks through SWIFT. However, now the EU has introduced a complete ban on transactions with Russian banks. This can significantly complicate the process of obtaining an unblocking license from Euroclear and Clearstream. Experts recommend that investors include in the application for unblocking a transfer request under Article 5H of the regulations if the financial institution is subject to new restrictions.