World’s largest oil services group SLB expands in Russia as rivals withdraw

Good morning. We have several exclusive stories to end the week, including the UK government’s plans to woo Revolut and PwC being sued by a property developer in London’s High Court.

But first, the Financial Times has learned that SLB, the world’s largest oilfield services company, is expanding in Russia following the exit of its main western rivals since Moscow’s full-scale invasion of Ukraine.

The Texas-based company, formerly known as Schlumberger, made a public commitment last July to halt “shipments of products and technology into Russia” from its global facilities. Russian customs filings show that after this ban was imposed, such imports slowed to a stop by the start of September.

But filings show the company also continued to import materials from other sources, bringing in $17.5mn of equipment between August and December last year, the most recent date of available records. Of this, $2.2mn was declared as having been originally manufactured by SLB or its subsidiaries.

SLB declined to comment. A person close to the company said the imports were not “from an SLB facility” and were therefore “consistent with SLB’s public statements and within international sanctions guidelines”.

Here are more details on how the company has signed new contracts and recruited hundreds of staff despite the war.

• Ukraine incursion: Kyiv’s offensive may force Vladimir Putin to rethink his claim that any peace deal must take account of who controls territory on the ground, writes historian and author Sir Lawrence Freedman.

• Prisoner swap talks: Ukraine said talks with Russia had begun over a prisoner exchange. Ukrainian officials and soldiers told the FT they had captured “hundreds” in the Kursk operation.

Here’s what I’m keeping tabs on today and over the weekend:

• Israel-Hamas war: Tense ceasefire talks continue after the US and Israel kicked off negotiations in Doha yesterday to secure the release of Israeli hostages.

• Economic data: Germany releases labour market data today while the UK publishes retail sales figures. The University of Michigan has its consumer sentiment index for the US.

• Football: The English Premier League season opens with Manchester United vs Fulham.

• Africa: The Southern African Development Community holds its summit in Zimbabwe on Saturday to discuss growth and development.

How well did you keep up with the news this week? Take our quiz.

Five more top stories

1. Exclusive: The UK government is wooing Revolut to remain in London as the country’s most valuable fintech favours a potential New York listing. City minister Tulip Siddiq is expected this autumn to meet the company, which secured a UK banking licence following a three-year process with regulators. Here’s what we know ahead of the talks.

2. Exclusive: PwC is being sued by a UK commercial property developer alleging the Big Four firm gave “negligent” tax advice, landing the company with a £3mn bill from Britain’s tax authority. Revelan is seeking about £6.6mn for loss and damages. PwC has said some errors in its advice were “due to the significant complexity” of its clients’ tax affairs.

3. Asian stocks followed Wall Street’s rally this morning as fears of a US recession receded. Japan’s Topix benchmark rose more than 2.5 per cent while the Nikkei 225 jumped almost 3 per cent, leading rises across the region after the S&P 500 closed 1.6 per cent higher. The global rally came on the back of strong US retail data and helped reverse a steep market sell-off earlier this month.

• Recession confusion: There are flaws in key indicators of a downturn, writes Soumaya Keynes. Investors may have to live with some uncertainty.

4. New “chaotic” post-Brexit controls for EU imports of food and plants have saddled British businesses with higher costs, with customs agents and businesses complaining to the government that they were charged for checks on goods that never took place. “The border situation . . . currently is rather chaotic,” one customs agent said.

• More UK news: Victims of the contaminated blood scandal will be entitled to life-long payments, with some expected to receive more than £2.5mn.

5. Donald Trump’s economic plans would hurt US business, according to a report from a leading centre-left think-tank that warned the former president’s protectionist trade proposals, including higher tariffs, could drive up costs for companies and consumers. Here’s why the report said Trump policies “should make business leaders shudder”.

With just 80 days until Americans vote, sign up for our US Election Countdown newsletter to stay updated on the White House race.

The Big Read

Joe Biden’s Inflation Reduction Act and Chips and Science Act offer more than $400bn in tax credits, grants and loans to rival China in green technologies. But as the two-year anniversary of the legislation arrives, many projects are facing headwinds, as an FT investigation recently revealed, underscoring the difficulties in reconfiguring American industry and raising questions about whether the president’s vision of a manufacturing renaissance can be realised in a high-stakes election year.

We’re also reading . . . 

• Sunil Bharti Mittal: BT invested in his company in the 1990s. Now, the Indian telecoms tycoon has turned the tables to become the UK group’s biggest shareholder.

• End of an EU era: After a decade as the bloc’s top antitrust official, Margrethe Vestager, renowned for being tough on Big Tech, will not be reappointed for a third term.

• ‘Poisonous shrimp’: As US-China tensions rise, Singapore is boosting defence spending, hoping to maintain its status as a small but hazardous target for predatory forces.

Chart of the day

Few hints were given ahead of Laxman Narasimhan’s abrupt exit as Starbucks’ chief executive. But the process started 15 weeks ago, after the shock of a bad quarter sparked a series of behind-the-scenes manoeuvres by a tight-knit group of directors and investors.

Take a break from the news

The next time you see someone take a selfie on the plane, don’t mock them: some are basking in a pleasure their parents never experienced. More people than ever are now able to enjoy the life-altering effects of a holiday, writes Simon Kuper.

Additional contributions from Harvey Nriapia and Benjamin Wilhelm