Putin opens bridge linking Russia to Crimea
Moscow, May 16: Russian President Vladimir Putin has inaugurated a highly-controversial bridge linking the Russian mainland to Crimea, tightening Russia’s hold over the contested peninsula which Moscow annexed from Ukraine in 2014.
The 19-km, $3.7 billion bridge is Moscow's only direct road link to Crimea. Russia expects it will carry millions of cars and rail travellers and millions of tonnes of cargo each year. Previously, all car traffic passed over the Kerch strait by ferry or by passing through Ukraine, the Guardian reported.
On Tuesday, Putin drove an orange Kamaz truck across the bridge as he opened the road to car traffic. "In different historical epochs, even under the tsar priests, people dreamed of building this bridge," Putin told workers at the ceremony.
"Then they returned to this (idea) in the 1930s, the 40s, the 50s. And finally, thanks to your work and your talent, the miracle has happened."
The Russian state media touted the bridge as the "construction of the century". The Soviet Union and Nazi Germany had considered and then scrapped plans to build a bridge over the Kerch strait.
Relations between Russia and Ukraine remain extremely fraught as a simmering conflict continues between Kiev and Moscow-backed separatists in Ukraine's southeast.
In 2016, the US imposed sanctions on Russian companies that were helping to build the bridge across the Kerch strait. Ukraine said the construction of the bridge showed "blatant disregard for international law".
The US State Department said that "the bridge impeded ship navigation and goods delivery in the area and therefore it was watching the situation closely".
The Russian embassy, however, said that "the US remarks were predictable and Moscow was not asking anyone's authorization for building infrastructure projects on its territory.
"As one could predict, Washington is not happy with that. But Crimea is Russia," the Russian embassy said in a statement.
"We shall not ask for anybody's permission to build transport infrastructure for the sake of the population of Russian regions."
The bridge's construction was led by Stroygazmontazh, whose owner, Arkady Rotenberg, has close connections to the Kremlin. Rotenberg was Putin's judo sparring partner.
He was hit with sanctions by the US for his proximity to Putin and by the EU for being among those accused of undermining Ukraine's territorial integrity.
The bridge was completed six months ahead of schedule, according to Russian state news agencies. It can reportedly carry up to 40,000 cars per day, its span is greater than that of the Vasco da Gama bridge in Portugal, previously the longest in Europe.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Rupee falls 5 paise to hit new all-time low of 84.37 against US dollar
Mumbai, Nov 8: Declining for the third straight session, the rupee dropped 5 paise to hit a new lifetime low of 84.37 against the US dollar on Friday, weighed down by persistent foreign fund outflows and a muted trend in domestic equities.
Forex traders said the US Federal Reserve's recent decision to cut interest rates signals a shift in the global financial landscape. Moreover, with Donald Trump's tax and trade policies influencing global markets, volatility could re-enter the rupee's trajectory.
At the interbank foreign exchange, the rupee opened at 84.32 against the US dollar. During the session, the local currency touched a high of 84.31 and a low of 84.38. It finally settled at 84.37, a loss of 5 paise against its previous close.
On Thursday, the rupee slipped 1 paisa to close at a fresh lifetime low of 84.32 against the US dollar.
In the last three sessions, the local unit has lost 28 paise against the greenback.
The rupee hit a record low on account of extending sell-off in the domestic markets and continuous foreign fund outflows. Overnight gains in crude oil prices also weighed on the rupee, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
However, the softening of the US Dollar index cushioned the downside. The dollar softened as the US Federal Reserve cut interest rates by 25 bps in line with street estimates. The Fed Chair Jerome Powell said in his presser that the US economy was strong and some downside risks seemed to have diminished.
In its latest monetary policy announcement, the US Fed reduced its benchmark rate by 0.25 basis points to a target range of 4.5 per cent-4.75 per cent.
In its accompanying statement, the Fed adopted a neutral-to-dovish tone, acknowledging balanced risks in inflation and employment.
"We expect the rupee to trade with a negative bias on overall strength in the US dollar and weak domestic markets. FII outflows may also weigh on the rupee. However, any intervention by the Reserve Bank may support the rupee at lower levels," Choudhary added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.01 per cent lower at 104.50.
Brent crude, the global oil benchmark, fell 1.10 per cent to USD 74.80 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex fell 55.47 points, or 0.07 per cent, to close at 79,486.32 points, while Nifty declined 51.15 points, or 0.21 per cent, to settle at 24,148.20 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday, as they offloaded shares worth Rs 3,404.04 crore, according to exchange data.
"Rupee has been on a low in the last few days though it is the second best-performing currency amongst its peers after the election of Trump as president.
"However, foreign funds and oil companies are constant buyers of the currency pair, and therefore, we are not finding rupee to gain from here except if RBI sells in a big way and brings it down," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
For now, it is better to buy on dips and keep exports on hold until the rupee finds its level. There also seems to be a cash dollar shortage in the markets as the RBI is not supplying sufficient dollars, which FPIs are buying, Bhansali added.
