Aletho News

ΑΛΗΘΩΣ

EU free trade pact on hold as farmers revolt

RT | January 21, 2026

The European Parliament has voted to refer a trade agreement with the South American bloc Mercosur to the EU Court of Justice (CJEU). The move comes amid criticism of Commission President Ursula von der Leyen for bypassing normal EU procedures and widespread protests from farmers across the bloc.

On Saturday, the EU signed a trade pact with Mercosur members Argentina, Brazil, Paraguay, and Uruguay. The agreement that was projected to create the world’s biggest free trade zone still requires approval before it can take effect.

On Wednesday, the EU Parliament voted 334 in favor to 324 against, with 11 abstentions, to ask the CJEU to determine whether the deal is compatible with the bloc’s rules. The move now significantly delays the pact that had been negotiated for 25 years, and could potentially derail final approval.

The vote took place against the backdrop of criticism of von der Leyen for handling the Mercosur deal in a non-transparent way, splitting it into separate agreements to bypass national parliaments and reduce the European Parliament’s role to a formal opinion.

The deal has also faced widespread resistance from the agricultural sector, with farmers across the bloc staging mass protests over concerns that cheap imports could undercut their livelihoods. The latest rally began on Tuesday outside the European Parliament in Strasbourg and drew support from some lawmakers, continued overnight, and ended on Wednesday.

Von der Leyen had pushed the deal, describing it as a “clear and deliberate choice,” highlighting that the EU opts for “fair trade over tariffs” and “a productive long-term partnership over isolation.” The pact came just six months after she signed an agreement with US President Donald Trump that imposed a 15% tariff on most EU exports. The EC president faced strong pushback over the US deal from current and former EU officials and heads of member states.

The EU is Mercosur’s second-largest trading partner, accounting for nearly 17% of the bloc’s total trade in 2024, at €111 billion.

January 21, 2026 Posted by | Economics | , , , , , | Leave a comment

Russian gold gains offset frozen asset value – Bloomberg

RT | January 21, 2026

Russia has benefited from a surge in gold prices since the escalation of the Ukraine conflict, earning windfall gains comparable to the value of the country’s sovereign reserves frozen in the West, Bloomberg reported on Tuesday.

The Bank of Russia’s gold holdings have gained over $216 billion since February 2022, calculations show.

Western countries froze about $300 billion in Russian central bank assets as part of Ukraine-related sanctions. The majority of the funds are held at Belgium-based depository Euroclear. The EU has been debating using the funds as collateral for a so-called ‘reparations loan’ for Kiev, and in December extended the freeze with a long-term measure that would keep the assets blocked indefinitely.

The rise in the value of Russia’s gold holdings restores much of the country’s lost financial capacity, even if blocked reserves remain inaccessible, the outlet said. Unlike securities and cash frozen in Europe, the metal can still be sold or used as collateral if needed.

The value of Russia’s gold reserves more than doubled from February 2022 through end-2025, while holdings of foreign currencies and assets fell by about 14%, central bank data show. Gold now comprises 43% of total reserves, up from 21% prior to the Ukraine conflict.

Total international reserves stood at $754.8 billion as of January 1, data showed, with monetary gold accounting for $326.5 billion. The bank’s gold holdings were valued at $141 billion on February 1, 2022.

Gold prices have surged over the past four years, jumping by 60% in 2025 alone, driven by robust demand from central banks, persistent inflation concerns, and heightened geopolitical tensions.

Precious metal futures surged to a record high on Tuesday, surpassing $4,720 per ounce and marking a 2.71% gain, exchange data showed. Analysts linked the rally to increased geopolitical risks, including US President Donald Trump’s renewed tariff threats against European countries opposed to his Greenland takeover plan.

The Russian Finance Ministry expects gold prices to continue to climb towards $5,000 per ounce and beyond.

Deputy Finance Minister Aleksey Moiseev said in December that the current rally stems from eroding confidence in global reserve currencies, adding that attempts to expropriate Russian assets are further bolstering demand.

January 21, 2026 Posted by | Economics | , | Leave a comment