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Factories in Russian-occupied areas of the Ukraine were packed up and moved on trains and trucks, and are being resurrected in the west, the New York Times reported. Manufacturers are creating jobs and hunting for skilled workers. Now closer to Poland — Ukraine’s gateway to Germany and western Europe — the reborn businesses are forging ties with the European Union, which Ukraine hopes to join soon. “The main motivation for them to come here is that they stay in Ukraine,” said Andriy Moskalenko, the deputy mayor of Lviv responsible for economic affairs.
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Swedish furniture giant IKEA has decided to liquidate its Russian unit, limited liability company IKEA Dom, further scaling back its operations after more than a decade-long presence in the country, a corporate record showed on Tuesday, Reuters reported. Scores of consumer brands suspended operations in Russia after Moscow sent tens of thousands of troops into Ukraine on Feb. 24, with H&M, IKEA and Nike among the companies to have announced plans for a permanent exit.
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UK job vacancies fell for the first time since August 2020 as real wages dropped at the sharpest pace on record, indicating a tightening inflation squeeze on consumers and businesses, Bloomberg News reported. The number of jobs employers are seeking to fill fell by 19,800 to 1.27 million in the quarter through July, the Office for National Statistics said Tuesday. Pay excluding bonuses and adjusted for inflation fell by 3% in the three months through June, the most since records began in 2001.
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Britain has launched a scheme to extend tariff cuts to hundreds of products, such as clothes and food, from developing countries, part of London's post-Brexit efforts to set up systems to replace those run by the European Union, Reuters reported. In June, Prime Minister Boris Johnson said he wanted to start a new trade system to reduce costs and simplify rules for 65 developing countries to replace the EU's Generalised System of Preferences, which applies import duties at reduced rates.
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UK-based Altera Infrastructure has entered a Chapter 11 bankruptcy process in the U.S. to address its debt of over $1.5 billion, Offshore-Energy.biz reported. Formerly a part of Teekay, Altera Infrastructure is based in Westhill, Scotland and it is a supplier of infrastructure assets to the offshore energy industry. In a statement on Monday, the company said that it has executed a restructuring support agreement (the RSA) with approximately 71 percent of its funded debt obligations, which includes an investment management company Brookfield and a super-majority of its bank lenders.
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The Russian economy contracted steeply in the second quarter as the country felt the brunt of the economic consequences of its war in Ukraine, in what experts believe to be the start of a yearslong downturn, the New York Times reported. The economy shrank 4 percent from April through June compared with a year earlier, the Russian statistics agency said on Friday. It is the first quarterly gross domestic product report to fully capture the change in the economy since the invasion of Ukraine in February.

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Several major Wall Street banks have begun offering to facilitate trades in Russian debt in recent days, according to bank documents seen by Reuters, giving investors another chance to dispose of assets widely seen in the West as toxic. Most U.S. and European banks had pulled back from the market in June after the Treasury Department banned U.S. investors from purchasing any Russian security as part of economic sanctions to punish Moscow for invading Ukraine, according to an investor who holds Russian securities and two banking sources.
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The British economy contracted slightly in the second quarter, losing momentum as the country experiences a deepening cost-of-living crisis and economists predict that a recession will start later this year, the New York Times reported. Gross domestic product fell 0.1 percent in April to June compared with the previous quarter, when the economy grew 0.8 percent, the Office for National Statistics reported on Friday. The biggest drag on growth in the second quarter was a reduction in health services as pandemic measures, such as coronavirus testing and vaccine administering, declined.
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Scandinavian airline SAS said on Saturday it entered into an agreement with Apollo Global Management to raise $700 million of fresh financing it needs to see it through bankruptcy, Reuters reported. The airline filed for bankruptcy protection in the United States in early July to help cut debt after the collapse of wage talks between the airline and its pilots, triggering a 15-day strike that added to travel chaos across Europe. SAS said in a statement it expects to complete the Chapter 11 restructuring process in nine to 12 months.
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Germany plans to give the transportation of materials and equipment essential for energy production priority on the country's rail networks should water levels on the Rhine fall further and hamper shipping by river, a draft decree shows, Reuters reported. DB Netz, the rail network arm of railway operator Deutsche Bahn, has already rejigged usage conditions to give preference to trains carrying mineral oil products and hard coal for power generators as Germany tackles an energy crisis.
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