brazil is getting into policy mode again after 2 years of battling corona virus. ah. dances in rio de janeiro, parent for its world famous carnival festival was cancelled in 2021 and for spoon billy this year, offer surgeon coven 19 infections. and normal times it hosts an average of 2000000 people a day. ah, this is al jazeera, these, the top stories shall sharif is being sworn in as pakistan's, new prime minister. he succeed them on con, after being elected by the national assembly sharif. we'll form a new government until august next year when general elections is due. in mon con, was asked it in a no confidence vote on saturday. come on, hot has been following developments. it has been a historic day with the outgoing prime minister. i am ron connor woodward,

to doubt his barger a dining flown from the floor of the national assembly that duty behind me. and then a war dove gone for durned, for the new prime minister that georgia barge should eve, the leader of the house. he was elected with a 174 watch. that's the exact number of wards that were caused into your confidence motion against demeron calling this reading said how many underway all dog constitutionally, it is the president to where administers the or european union. foreign ministers have pledged more support for ukraine, and it's war with russia at a meeting and luxembourg of disgust. mocking another $544000000.00 for weapons. are also talking about additional sanctions against russia and sanctions. we continue discussing about how to implement the sanctions to avoid any kind of loopholes. we measure the impact of these sensors as having on your russian economy. and we

will continue discussing in order to see what else can be done. nothing use of the table, including sanctions to norland gas, ukraine's president vladimir lensky is calling for more western aid, saying his forces need extra weapons to counter russian forces. this comes as russian back separatist say. they will intensify their battle against ukrainian troops in the east. french president dominican is back on the campaign trail. this time in the northern city of dinner is looking for extra votes before run off against far right challenger. marine. the pen icon is calling for a broad coalition of support. not a winning sunday. first round saying the next 2 weeks will be decisive to france. those are the headline stuff, go away. news will continue here on al jazeera run after the latest episode of counting the cost all season. ah

ah, i hello, i'm fully bazzi bo, this is counting the costs on al jazeera, your weekly look at the world of business and economics this week, unleashing a torrent of crude oil present. joe biden, orders what he says is the unprecedented release of u. s. oil reserves, how will that affect markets and when it health prices at the pumps? also this week, what if russian gas tops i turned off germany is one of the

e. u members most reliant on supplies and his particularly vulnerable. so can the germans weaned themselves all fresh and gas? and india imposes attacks on the profits of crypto care and see an ames to launch the digital ruby. is that a move towards regulating virtual currency and how when investors be affected? ah, thank you very much for joining as gasoline prices have risen, shot me after russia's invasion of ukraine, and americans are feeling the pinch at the gas pump with mid term elections just months away. present joe biden is under growing pressure to bring down the high energy prices, and he's attempting to do that by increasing supply. the president has ordered the release of at least a 180000000 barrels of oil from the u. s. a strategic reserves over the next 6 months. that's the largest release of oil reserves. since the countries talked, pile was created more than 46 years ago. this is

a war time bridge to increase oral supplier to production wraps up later this year . and it is by far, the largest release warriors are run national reserve in our history and provide historic amount of supply for historic amount of time, a 6 months bridge to the fall. while the announcement marks the 3rd time in 6 months, the u. s. has topped into its talk pies, the president has also called for companies to pay fees if they choose not to use oil whales on land. they lease from the government and has promised to speed up the adoption of green energy sources biden plans to invoke the defense production act, to support the production of batteries like lithium and nickel among others. now, other members of the international energy agency, or i. e, a, a watched off for western consumer nations also agreed to release more or less from their reserves. the move comes after the organization of petroleum exporting countries, opec and its allies, including russia, said they were sticking to their plan to gradually increase production. thus,

despite pressure from the u. s. and other nations to boost output more quickly. so, how does the strategic petroleum reserves work and what does biden's plan mean for the market? let's have a look at the figures. the u. s. held 568000000 barrels of oil as of march 25th down from more than 700000000 at their peak in 2009. but i am member countries are required to keep equivalent to 90 days of net oil imports in emergency reserves for the us. that's 300. 15000000 barrels according to our b. c. capital markets. once the latest release is complete, the nation will have just 70000000 barrels in buffer. the release of $1000000.00 barrels of oil a day over 6 months would make up almost 5 percent of american demand and one percent of global demand. that's while the i a a said last month as much as $3000000.00 bows a day of rational and production would be lost because of us sanctions. now biden's

announcement us pushed oil prices to settle lower, but they were well twice the level a year ago. brent crude, the global benchmark for oil prices hit a $139.00 a barrel last month after russia invasion of ukraine began. the recent rise include prices has led to a jump in gasoline prices in the u. s. where the national average price of the gallon of gas at more than $4.00 up from almost $3.00 a year ago. well, let's discuss all this further with richard bronze cross, energy analyst, that energy aspects he joined says from london. richard, very good to have you with us on counting the cost. so we'll present biden's release of used oil reserves. have much impact on price is beyond the very short term. well, i think there will be some impact, but it's probably gonna mainly be would you sing the risk that we see a really serious spike higher in prices this summer? i don't think the release on its own is going to push oil prices down much further from current levels. so do you expect more disruptions ahead?

yes, i think in terms of russian supply roni beginning to see the actual disruption caused by sanctions. and the so sanctioning that we're seeing from a lot of european buyers, russian refineries have had to cut production. and russian exports are starting to fall, although they haven't fallen immediately off to the start the conflict. so these effects is still building up, and i think they're going to get worse over the next month or 2. i mean, it's a risky strategy though, isn't it? for it, for the us to draw down on it's r. s p are so heavily. what if the war in ukraine drags on? well, i think it's certainly true that you can't draw down at these kind of rates and it's not just the u. s. it's advanced economy around the world that are announcing big releases with seeing them use that reserves to a degree that we've never seen in the past. and i think that reflects how serious the concerns about the state of energy markets all um, but it also has to be

a temporary measure. now washington is hoping that by that time they finish this 6 release us production will increase substantially. and that will help to bridge the supply gap created by russia. i think that's quite optimistic when we look at our full cost for us shale production. we do see growth this year, but none of the kind of pace that it seems. the white house is hoping for potentially a problem later in the summer, or towards the end of the year when all of these releases have happened, and yet the market is still short of supply. i was going to ask you, this is precisely about that richard. i mean, is the amount being released from strategic petroleum reserve, whether the u. s or other countries? is it sufficient? what would it take to make up for the destruction in russian supplies and fabulous the market? we think russian supply is going to fall by not 2000000 barrels a day compared to the pre conflict levels. and what you're looking at in the most

optimistic scenario for these releases is under a 1000000 barrels a day. so it goes a long way to help bridge the gap, but it isn't sufficient. you've also got to think about issue elsewhere with seeing less and less optimism that now be a nuclear deal with around, with lift sanctions from that country. and that was going to bring more supply into the market if that's not coming later in this year. again, you've got a gap that even be completely filled by these with releasing these reserves rich. and how does it exactly work? how is it structured? is it going to be an exchange or outright sales? and what about logistical challenges and bottlenecks to move the oil from reserves to other places. so this is going to be an outline sales. it's going to be made available to market and refineries. ready or even international buyers can purchase as long as they can have the logistical arrangements to receive. the u. s. government has said that it will. busy repurchase this oil and refill

b. s p r later. but that's going to be government to do not for the bias. so that's why it's not an exchange, but it doesn't. if price is a lower in the future, anywhere under about a $100.00 a barrel for w t on the u. s. government is going to be a big buyer of boil to put it back into the s p o. now the logistic problems that you mentioned are very significant because although the cabins and the storage sites themselves can technically release a little very rapidly, that oil has to move through the u. s. pipeline network through the same pipes as commercial production. and the problem is there are restrictions or limits on how much s p l and you can release and move around that system without disrupting and impacting the compassionately. and so we think that the actual rate of s p release is going to be much lower than the 1000000 barrels a day that's been announced probably closer to $600000.00 barrels

a day. do you think, richard? this will change the calculus opec class, which has been resisting calls to increase output. do you think it'll push them to try and increase the scale of their production? if anything, i think it does the opposite. they can point to the fact that the us and others are releasing all this has to be our can therefore say that the market doesn't need our tech class to have more supply. i've been very, very reluctant over a couple of meetings since the conflicts started to do anything to adjust that current plan. and i think for now that remains the case. now we've heard renewed calls this week, richard for the team for the sanctions on russia, energy sector after the an h atrocities in butcher came to light. but european countries, we know, have been reluctant, right to impose a bond on russian energy. if a boy caught russian oil and gas at all possible for europe, what impact will it have on, on european economies like germany, for example? well, i think if, even a few weeks ago,

we'd have said it looked almost impossible about calculating changing. they all, it appears the european union will ban colon ports or at least put some kind of restriction on them later this week. and that break the 2 when it comes to functioning energy flows. it doesn't mean we'll definitely get measures against oil and gas, but the longer the conflict in ukraine goes on, the more likely they become, i think there are proposals already being developed for the europeans, my capped off russian oil and gas is the hardest one in terms of the level, look that europe depends on russian imports and also the availability of all talented sources to fill that out. but we seem to be getting close to the political pressure building. and i think if we are, you know, weeks or months or more fighting in ukraine, it becomes more and more likely that we do get some kind of. now you asked, how can europe respond or how can you deal with that?

technically it's going to be possible, but it is going to be very expensive and it's going to be very disruptive. and so we are starting to see markets trying to price what that would look quite and how disrupted it might be. certainly you can get to the point where demand is gonna be, have to be limited or rationed in certain sectors of the european economy to manage the loss of russian oil and gas supplies. if that happens, richard bronze, thank you very much for talking to some counting the costs. thank you for your time . ah, european nations are on high alert for any disruption to russian gas in force present. vladimir putin wants what he calls unfriendly, biased to pay in robles or face supplies being cut off. many european leaders have rejected the ultimate him and announced emergency pans to secure supplies. they include germany, which is acting to cut its dependence on russian energy by the middle of 2024

dominic cane report, some 1000000000 the are more gas insulation is far removed from the fighting in ukraine. here the focus is on getting the product out of the ground and on its way to customers. 55 percent of german gas imports last year came from russia and 40 percent in the 1st quarter of this. but outrage it, warren ukraine has changed many europeans thinking events, if it's even under the fact that we are diversifying our sources and we'll do so in the coming months, we will use the existing ellen g terminals on the west european coast. i'm a builder own elijah terminals much faster than before. that's paul building new l n. g, or liquid natural gas terminals cannot cover all of germany's energy needs. it's thought the terminals will not be on stream for several years. and in the meantime, gas will still be needed. this is the hides craft back in central berlin here,

natural gas is turned into heat and light, the thousands of homes for industry and the public sector in this city. it's one of many such installations all across the country. much of the power use in the stations comes from russian natural gas and cost this country every year, billions of dollars. for many years, the political elite here tolerated such a dependence on russian fossil fuels long after crimea was annexed in 2014. germany's previous chancellor angle america did not stop the now shelved an old stream to pipeline which connects russia to germany, fire the baltic c l dose plant out there. as for germany wants to secure its energy supply from various sources. russian gas is part of this, but we do not rely only on russian gas on. and yet when she made those comments,

germany had already become increasingly reliant on russian guess. she had even been warned publicly about its risks by the then u. s. president. but germany is totally controlled by russia because they were getting from 60 to 70 percent of their energy from russia and a new pipeline. and you tell me of that's appropriate because i think it's not. and i think it's very badly, valero, and i don't think it should have happened. but many, if the elite in germany appeared not to be listening, i asked one leading petrochemical policy analyst, why the idea was essentially, to work through trade. in order to lower the incentives for conflict, because the moment you enhance trade in theory, both sides engage invest haskin in the game. and that means you lower the political incentives for war or other types of conflicts. that was the principal principal driving a lot of the russia politics and policies of the german government,

but also the other european governments didn't work as we know. and yes, the contact they should have known better. now those governments are leading a dash from gas. the european commission recently unveiled plans to cut many billions of cubic meters or b c m's. by the end of this year, we can replace $100.00 b c. m of got some ports from russia. that is 2 thirds of what we import from them . this will end our over dependency and give us much needed room to maneuver. part of the e u plan mirrors proposals put forward by ministers in berlin. marrying expediency over hydrocarbons now with their longer term environmental ambitions. and we will see europe in governments across the board, ramping up programs for renewables. china 1000000000 from the german government's ah, going into clean tack, going forward

a whole program in the shape of re power europe at the european level. even if it's, what we don't knows is how such a move will be perceived in the kremlin lane. but with his recent requirement to make ease states pay for gas in rubles, rather than dollars or euro's president, putin has already signaled his intent yesterday. if these payments are not being accomplished, what we would consider it is by his failure to meet their commitments with all relevant consequences. nobody sells anything to us for free. neither are we going to do charity work. no, that means the current contracts would be brought to a home to the new months obligatory. and that is a real worry for many across europe who wonder what might happen in winter if russia switches off the gas. several industrialists say such a denial of energy could be catastrophic to the economy. dawn, it came for counting the cost berlin, that india has long been concerned by crypto currencies and was planning to ban

them. but instead of prohibition, the indian government appears to be moving towards legalizing and regulating the digital currency. and it's announced a 30 percent tax on gains from the transfer of digital assets such as it coins and non fungible tokens. here's our india correspondent, elizabeth per annum in new delhi. these crew, creepy, has made tens of thousands of dollars investing and trading and crypto currency over the past 4 years. but the 24 year old is selling, at least half of all has digital assets before new taxes on them come into effect. from april, investors will have to pay 30 percent tax on sales of crypto currencies and won't be able to offset any losses from one against profits from another. so that's all i will be managing, introducing exposure, getting more interest often for the couldn't using the volume of trade that i am doing daily. and probably we will be seeing that in to extend that india we will be

seeing or decrease in volume because the part bosses is pretty soon the same introduction of the central governance has a major increase in crypto currency. transactions has made it essential to impulse taxes. there are around $25000000.00 india to own crypto currency with up to $10000000000.00 worth of assets being traded every month. the average investor is just 24 years old and must have a portfolio of 650 to 15. $100.00. in the founder of india's largest trading exchange says it doesn't make sense to impose the highest tax bracket regardless of earnings. so there are certain amount that you will anyway, you're not taxable at all. you don't have to be back. but if you are getting into the plan, you make a profit back that you still have to be and i told you, but which is the highest. and that's something open for

a lot of the plans. and i got a good job began investing and crypto currency when he was at university in 2016. the 23 year old day job is running his family's carpet business. but all of his earnings are invested and crypto currencies. he's not happy about the high taxes that relieve the government, isn't bad and crypto currency after it indicated last year that it would be, i think that an important 1st step. i'm not happy about them. no, i'm obviously not happy with some of the particular things by these. we should like recall back in december, everyone with debt show that this is going right. they're going to force liquidation from all exchanges and they're just going to ban it. and that didn't happen. many others agree with rock of and say the taxes are too high and could push investors and businesses into moving their assets to countries with more favorable tax laws. but they also agree they're better than an outright ban. elizabeth problem al jazeera new delhi. now along with the capital gains charge,

the government announced a one percent tax deductible at source o t t. yes, that will apply on old digital assets transfers above a certain size starting on july 1st, india will also roll out its own block chain base currency digital whoopee controlled by the indian central bank before april. next year. joining is not from new york is roger bron global head of tax strategy, a chain alice's thank you for being with us on counting the cost. launching is a big outcry in india right now after the government announced this 30 percent tax on virtual assets. i want to know 1st, how significant it is, how much tax is imposed on crypto currency in different countries worldwide. the time every country tends to tax crypto slightly differently. you see common themes . the minority of countries. ready on a handful and pose no capital gains tax at all. and oftentimes they don't have

a capital gains tax. in other instances, the only tax certain kinds of transactions in general, for example, last year in france, don't tax trip though, for crypto trades, when i show x r p in exchange for a theory, and they won't tax that wait till someone receives traditional fee on currency which is just a phrase, a term referring to cash. so 30 percent of the net gain or that with you. if you buy it asks for a 100 you saw what for 70 or 80? i have 20 again. so applying 30 percent the tax is similar to what many countries do. i would say that what is more than what some countries do is many countries will give you a reduction where if you lose money on a sale, there will be a deduction, a capital loss that you can use to get similar types of gains in the,

in the proposal you're not allowed to do that. so i think that is a departure from some other countries where they also approach. and then i would say the one percent tax deduction source is also a departure from what you see in other countries. so that in effect, but it is creditable against the 30 percent of again, but that is a different increase. so the one percent of tax deductible at the source is a departure you say, when you look at india and compare it to other countries, how big is, is india's crypto currency ecosystem. and how much can the government hope to collect from, from this crypto tax? well, the indian ecosystem is quite large, obviously a very educated population. many people pursue tech and very people crypto and watching necessarily our technologies and among the crypto indexing

region, the in the really rank top. so india is a major section for bo and, and it will have a material impact that we're seeing test reports now that some exchanges are seeing 30 to 70 percent drops in volume. i would say that unlike other asset classes, the market for trading crypto is global. so if somebody has a choice between jurisdiction a trade and jurisdiction be and the tax is different, then they'll go for that other jurisdiction. right? there is concern about the asian writer. i mean, will it be easy to track given the nature of the transactions? so there are technologies that one can determine where some, where trading occurs. the 30 percent tax assuming that the tax applied at the

individual level in india will tax indian taxpayer. but the taxing that was whether they're trading was your exit or which or trading coin base, say us or coin, which is not indian. this attaching the same, the person would, may choose, may choose to chick tray or the foreign exchange is not in the exchange. if the terms of invasion in india will have technology available, where if they can associate trading on a non need exchange to a human being and india, then it is possible to determine whether it's tax evasion with technology the o e c. d. go ahead. no, i could ask you briefly, raj, a how it would affect investors and liquidity. it will affect quality,

it could drive down prices. crypto is global. so if somebody can get other prices in other jurisdictions in the use of major market, it could have a depression or reducing the depressing price on, on, on crypto n d. i would say that you could have 9 indian traders come in and, and see that the one percent is acceptable and they'll come in and perhaps drive up the price of that goes to be determined. thank you so much for talking to us about this sponsor of raja brown. joining us from the o. thank you for your insight. thank you. and that is our show for this week. get in touch with us by tweeting neat at for you by a j e. and do use a hash tag, a j ctc when you do or drop us an e mail counting the cost that our to sierra dot net is on track. but there's more for you online at al jazeera dot com slash ctc that will take you straight to our page, which has individual reports, links,

and entire episodes for you to catch up. that's it for this edition of counting the cost some fully back to go from me and the whole team hearing doha, thanks for joining us and use on out jessia is next. ah ah and a take your seat or be part of the action, discover katzoff in one package. debbie, old to mid. well, cub experience with the world's best airline. katzoff at ways guarantee you'll see now the book you'll complete feasel world cup

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