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Deutsche Bahn could cut off DB Cargo after EU probe: Germany’s Deutsche Bahn could be made to cut aid for its unprofitable freight operator subsidiary DB Cargo starting next year following a decision by EU competition regulators, Reuters reported on Thursday. According to a profit and loss transfer agreement from 2012, Deutsche Bahn is responsible for covering DB Cargo’s losses. DB Cargo has seen a significant decline in market share in recent years and now handles less than 50% of rail freight transport in Germany. The EU opened an investigation in 2022 to look at whether German support for DB Cargo could have given it an advantage. An official decision is set for October.
What they said: “A key point (in the probe proceedings) is the prompt cancellation of the profit and loss transfer agreement between DB AG and DB Cargo,” a German government representative told the business newswire. Deutsche Bahn has not yet replied to a request for comment, according to Reuters. A spokesperson from the Transport Ministry was quoted by Reuters as saying that both the German government and the railway company are in agreement that the long-standing crisis at DB Cargo needs to be resolved.
ICYMI- German state rail freight operator DB Cargo recorded some EUR 500 mn in losses in 2023, putting it at jeopardy of being broken up by the EU if its figures are deemed to be distorting the market. The financial troubles are on the back of single-wagon traffic incurring chronic losses, with consignments of a few wagons at most being transported at great expense. Brussels has initiated an investigation into potential market distortion due to the German government’s subsidization of the freight operator’s financial losses.
India overtakes China as top importer of Russian oil: India surpassed China as the world’s biggest importer of Russian oil in July, as Chinese refiners took in lower volumes due to lower profit margins from producing fuels, Reuters reported on Thursday, citing a comparison of import data. Russian crude made up 44% of India’s overall imports in July, reaching a record 2.07 mn barrels per day, a 4.2% rise from June and a 12% increase from over a year ago.
Why India? Indian refiners have been fueling up on Russian oil sold at discounted prices after Western countries imposed sanctions against Russia and reduced their energy purchases, Reuters explains. India’s trade with Russia has grown since the start of war in Ukraine, mainly in oil and fertilizer imports, which has helped keep global prices and inflation in check.
