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US aircraft sales to Iran blocked by House, jeopardising $25bn Boeing deal

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  • As Renewed Fighting Breaks Out Across South Sudan Capital Juba

The House of Representatives has passed a measure that would block US aircraft sales to Iran, potentially undercutting a Boeing deal with Tehran worth up to $25bn.

Two approved amendments to an appropriations bill from Representative Peter Roskam would ban sales from Boeing and European rival Airbus, amid concerns the aircraft could be used for military purposes, the congressman said in a statement on Friday.

One amendment would prohibit the Office of Foreign Assets Control from using funds to authorise a license necessary to allow aircraft to be sold to Iran. A second would bar loans from US financial institutions to purchase militarily adaptable aircraft.

The ban would need to be approved by the Senate or any bill that reconciles differences in legislation by the two chambers.

Roskam, an Illinois Republican, said in a tweet that in the vote on Thursday, “House Democrats did not mount any significant opposition and, in many cases, joined efforts to block the sale.”

The news comes weeks after Boeing and Iran Air confirmed a tentative deal for the sale of passenger planes, described as a landmark for normalising the difficult US-Iran relationship.

The deal, valued at up to $25bn, would be the largest between a US business and Iran since the 1979 Islamic revolution.

Boeing said it had reached a preliminary agreement with the state-owned carrier.

The Islamic republic had been an international pariah before a nuclear deal reached last year, and the US still has some sanctions in place against Iran.

But a spokesman for the Iranian foreign ministry on Friday said the measure was “incompatible” with the accord, under which Washington was to lift economic sanctions in exchange for Tehran curbing its nuclear activities.

“We have nothing to do with US internal affairs,” Bahram Ghasemi said, quoted by the official IRNA news agency.

“We consider the government of the United States to be responsible for implementing the country’s commitments” under the accord, he said.

Boeing’s archrival, Airbus, in January reached a deal to sell Iran 118 aircraft.

French officials in April said the transaction was in the final stages of winning approval from the US Office of Foreign Assets Control, a key hurdle, because some of the aircraft components are made in the US.

Roskam and some other lawmakers have opposed deals with Iran, asserting that Tehran remains a supporter of violent jihadists around the world.

“If you wouldn’t do business with Islamic State, you shouldn’t do business with the Islamic Republic,” he said in an April opinion piece in the Wall Street Journal.

In the meantime, renewed gunfights broke out across South Sudan’s capital Sunday between forces loyal to the president and those of the vice president, officials said, causing widespread casualties and raising fears that the country is returning to civil war.

The fighting hit a U.N. camp for displaced people affected by the violence, according to witnesses.

“The condition is really very bad. We have a lot of casualties this side, I think around 50 to 60 besides those of yesterday,” said an official in the camp, who insisted on anonymity for fear of retribution.

“We have civilian casualties. We have rocket-propelled grenades that have landed in the camp which has wounded eight people.”

At least one person has died in the camp, he said, but he did not know about casualties outside where the fighting is heavy.

Reuters reported Sunday that at least 272 people had been killed in the violence.

The army confirmed the Sunday clashes but it is not clear how the fighting started, said army spokesman Lul Ruai Koang, who is in the SPLA general headquarters at Bilpham.

Government forces attacked a rebel base in the Jebel area of the capital Sunday morning, said William Gatjiath Deng, a spokesman for the rebel forces.

“Three helicopter gunships have just come now and bombed our side,” he said.

The fighting appears to be mainly in two areas: Jebel, where there is one opposition base and a U.N. base which houses thousands of internally displaced people, and in Gudele, where the rebels have another opposition base, including Machar’s compound. There have been huge explosions in Gudele and people are leaving the area by foot, said a resident, who spoke on condition of anonymity for fear for her safety.

“I’ve gotten calls that I should leave but there was so much gunfire nearby I decided to stay in,” she said.

United Nations security radio reported fighting near the house of army chief of staff Paul Malong.

“The situation in Juba has significantly deteriorated,” said a statement by the United States embassy. “There is serious fighting between government and opposition forces, including near the airport, U.N. mission locations, Jebel and elsewhere throughout Juba. U.S. citizens in Juba should remain vigilant … shelter in a safe location, preferably away from doors and windows, and avoid non-essential movements.”

The U.N. Mission in South Sudan is on a high security alert with no movement of U.N. personnel whatsoever, said Shantal Persaud, spokeswoman for the U.N. mission.

Sunday’s fighting is a resumption of the conflict on Friday in which more than 100 people died. A precarious calm was restored on Saturday — the day South Sudan was to celebrate its fifth independence day — that was shattered by heavy gunfire Sunday.

South Sudan is trying to emerge from a two-year civil war caused by political rivalry between Vice President Riek Machar and President Salva Kiir.

The two leaders issued a joint call for calm after Friday’s fighting which began outside the presidential compound where Kiir and Machar were meeting and soon spread through the city.

A similar skirmish in December 2013 sparked of the civil war that killed tens of thousands of people.

Guardian with additional report from NBC

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WAIVER CESSATION: Igbokwe urges NIMASA to evolve stronger collaboration with Ships owners

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…Stresses the need for timely disbursement of N44.6billion CVFF***

Highly revered Nigerian Maritime Lawyer, and Senior Advocate of Nigeria (SAN), Mike Igbokwe has urged the Nigeria Maritime Administration and safety Agency (NIMASA) to partner with ship owners and relevant association in the industry to evolving a more vibrant merchant shipping and cabotage trade regime.

Igbokwe gave the counsel during his paper presentation at the just concluded two-day stakeholders’ meeting on Cabotage waiver restrictions, organized by NIMASA.

“NIMASA and shipowners should develop merchant shipping including cabotage trade. A good start is to partner with the relevant associations in this field, such as the Nigeria Indigenous Shipowners Association (NISA), Shipowners Association of Nigeria (SOAN), Oil Trade Group & Maritime Trade Group of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

“A cursory look at their vision, mission and objectives, show that they are willing to improve the maritime sector, not just for their members but for stakeholders in the maritime economy and the country”.

Adding that it is of utmost importance for NIMASA to have a through briefing and regular consultation with ships owners, in other to have insight on the challenges facing the ship owners.

“It is of utmost importance for NIMASA to have a thorough briefing and regular consultations with shipowners, to receive insight on the challenges they face, and how the Agency can assist in solving them and encouraging them to invest and participate in the maritime sector, for its development. 

“NIMASA should see them as partners in progress because, if they do not invest in buying ships and registering them in Nigeria, there would be no Nigerian-owned ships in its Register and NIMASA would be unable to discharge its main objective.

The Maritime lawyer also urged NIMASA  to disburse the Cabotage Vessel Financing Fund (CVFF)that currently stands at about N44.6 billion.

“Lest it be forgotten, what is on the lips of almost every shipowner, is the need to disburse the Cabotage Vessel Financing Fund (the CVFF’), which was established by the Coastal and Inland Shipping Act, 2003. It was established to promote the development of indigenous ship acquisition capacity, by providing financial assistance to Nigerian citizens and shipping companies wholly owned by Nigerian operating in the domestic coastal shipping, to purchase and maintain vessels and build shipping capacity. 

“Research shows that this fund has grown to about N44.6billion; and that due to its non-disbursement, financial institutions have repossessed some vessels, resulting in a 43% reduction of the number of operational indigenous shipping companies in Nigeria, in the past few years. 

“Without beating around the bush, to promote indigenous maritime development, prompt action must be taken by NIMASA to commence the disbursement of this Fund to qualified shipowners pursuant to the extant Cabotage Vessel Financing Fund (“CVFF”) Regulations.

Mike Igbokwe (SAN)

“Indeed, as part of its statutory functions, NIMASA is to enforce and administer the provisions of the Cabotage Act 2003 and develop and implement policies and programmes which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure. Disbursing the CVFF is one of the ways NIMASA can fulfill this mandate.

“To assist in this task, there must be collaboration between NIMASA, financial institutions, the Minister of Transportation, as contained in the CVFF Regulations that are yet to be implemented”, the legal guru highlighted further. 

He urged the agency to create the right environment for its stakeholders to build on and engender the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders.

“Lastly, which is the main reason why we are all here, cessation of ministerial waivers on some cabotage requirements, which I believe is worth applause in favour of NIMASA. 

“This is because it appears that the readiness to obtain/grant waivers had made some of the vessels and their owners engaged in cabotage trade, to become complacent and indifferent in quickly ensuring that they updated their capacities, so as not to require the waivers. 

“The cessation of waivers is a way of forcing the relevant stakeholders of the maritime sector, to find workable solutions within, for maritime development and fill the gaps in the local capacities in 100% Nigerian crewing, ship ownership, and ship building, that had necessitated the existence of the waivers since about 15 years ago, when the Cabotage Act came into being. 

“However, NIMASA must ensure that the right environment is provided for its stakeholders to build and possess the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders. Or better still, that they are solved within the next 5 years of its intention to stop granting waivers”, he further explained. 

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Breaking News: The Funeral Rites of Matriarch C. Ogbeifun is Live

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The Burial Ceremony of Engr. Greg Ogbeifun’s mother is live. Watch on the website: www.maritimefirstnewspaper.com and on Youtube: Maritimefirst Newspaper.

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Wind Farm Vessel Collision Leaves 15 Injured

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…As Valles Steamship Orders 112,000 dwt Tanker from South Korea***

A wind farm supply vessel and a cargo ship collided in the Baltic Sea on Tuesday leaving 15 injured.

The Cyprus-flagged 80-meter general cargo ship Raba collided with Denmark-flagged 31-meter wind farm supply vessel World Bora near Rügen Island, about three nautical miles off the coast of Hamburg. 

Many of those injured were service engineers on the wind farm vessel, and 10 were seriously hurt. 

They were headed to Iberdrola’s 350MW Wikinger wind farm. Nine of the people on board the World Bora were employees of Siemens Gamesa, two were employees of Iberdrola and four were crew.

The cause of the incident is not yet known, and no pollution has been reported.

After the collision, the two ships were able to proceed to Rügen under their own power, and the injured were then taken to hospital. 

Lifeboat crews from the German Maritime Search and Rescue Service tended to them prior to their transport to hospital via ambulance and helicopter.

“Iberdrola wishes to thank the rescue services for their diligence and professionalism,” the company said in a statement.

In the meantime, the Hong Kong-based shipowner Valles Steamship has ordered a new 112,000 dwt crude oil tanker from South Korea’s Sumitomo Heavy Industries Marine & Engineering.

Sumitomo is to deliver the Aframax to Valles Steamship by the end of 2020, according to data provided by Asiasis.

The newbuild Aframax will join seven other Aframaxes in Valles Steamship’s fleet. Other ships operated by the company include Panamax bulkers and medium and long range product tankers.

The company’s most-recently delivered unit is the 114,426 dwt Aframax tanker Seagalaxy. The naming and delivery of the tanker took place in February 2019, at Namura Shipbuilding’s yard in Japan.

Maritime Executive with additional report from World Maritime News

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