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Armenia’s enthusiasm for EU membership may not last long, Lavrov says

Russian Foreign Minister Sergey Lavrov stated that Armenia’s desire to join the European Union could soon disappear, arguing that the bloc is losing its economic advantages because of its own decisions.

Speaking at the Eastern Economic Forum, Lavrov said that Armenian officials continue to express their intention to seek EU membership, but suggested that this ambition may not last.

“Our Armenian colleagues continue to say: we want to join the European Union. I am sure that this desire will disappear very soon,” Lavrov said.

Armenia has been moving toward closer ties with the European Union in recent years, while maintaining its existing economic and security relations with Russia. Yerevan has repeatedly stated that its European integration plans are aimed at expanding cooperation with Western partners and do not necessarily mean cutting ties with Moscow.

In March 2025, Armenia’s parliament passed a law launching the process of the country’s accession to the European Union. In late August 2026, Armenian Prime Minister Nikol Pashinyan said that Yerevan intends to officially submit an EU membership application in the near future.

On September 1, Russian President Vladimir Putin said during a meeting with Pashinyan that Armenia’s simultaneous membership in the European Union and the Eurasian Economic Union (EAEU) would be impossible. According to Putin, beginning the EU accession process would effectively mean that Armenia is declaring its intention to leave the EAEU.

Parties agree on initial House targets

The opposition has named Prime Minister Anutin Charnvirakul and Digital Economy and Society Minister Chaichanok Chidchob as initial no-confidence targets over concerns about government accountability and policy implementation.

Opposition parties have agreed to proceed with a no-confidence motion under Section 151 of the constitution, which provides for a debate followed by a vote, People’s Party (PP) list-MP Parit Wacharasindhu, the opposition chief whip, said on Wednesday.

The opposition will move quickly to prepare the motion, with Rangsiman Rome, a PP list-MP, set to lead a working group responsible for coordinating with other opposition parties, gathering allegations and drafting the motion.

Mr Parit said the opposition expected the process to take only a few weeks. While other ministers could be named later, Mr Anutin and Mr Chaichanok had already been agreed upon as the initial targets.

He declined to preview any “knockout” evidence, saying the opposition would let its performance during the debate speak for itself.

However, he urged the prime minister and the Bhumjaithai Party (BJT) not to use procedural means to prevent the opposition from raising issues concerning alleged collusion in the Senate election and cheating in local government examinations.

Mr Parit also rejected speculation over whether the opposition could bring down the government, saying it could not predict how MPs would vote.

Although the government still has a majority, he said the debate was not simply about counting votes but about presenting evidence to the public.

If the opposition secured enough votes to defeat the government, it would leave office sooner. Otherwise, a strong performance in the debate could influence voters at the next election, he said.

Government chief whip Paradorn Prissananantakul said the government welcomed the no-confidence motion, describing it as a legitimate constitutional tool for the opposition to scrutinise the administration. The government had not tried to anticipate the opposition’s arguments and would wait to see the motion before preparing its response, he said.

Mr Paradorn insisted the government had not engaged in any illegal or corrupt conduct and was confident it could answer all allegations.

Asked whether the Senate election collusion case would be a major focus, he said the issue would likely target BJT in particular. The party has denied involvement and had instructed its members in writing not to interfere in the Senate selection process.

BJT list-MP Akradech Wongpituchroj, also a government whip, said the government was not afraid of scrutiny and cited its energy reforms, promotion of artificial intelligence, the Thais Help Thais Plus subsidy scheme, national disaster insurance and the clean-energy transition as examples of its work.

He also said the government had acted against suspected corruption, including irregularities in local government examinations, and had allowed the Department of Special Investigation to investigate. Mr Akradech urged the opposition to base its allegations on facts and evidence rather than political rhetoric, saying ministers were ready to answer all questions.

Turkiye’s economy grows 2.3% in Q2 as agriculture and tech lead expansion

The Turkish Statistical Institute (TÜIK) has released its preliminary Gross Domestic Product (GDP) figures for the second quarter of 2026, showing that the Turkish economy grew by 2.3% year-on-year in terms of the chained volume index.

Among the activities contributing to GDP, agriculture, forestry and fishing recorded the strongest annual growth, rising by 13.3% in the second quarter of 2026 compared with the same period of the previous year, according to the chained volume index.

Information and communication activities increased by 8.6%, making the sector one of the fastest-growing parts of the Turkish economy. Public administration, education, human health and social work activities rose by 4.0%, while taxes and subsidies on products increased by 3.3%.

Other services activities grew by 3.2%, followed by industry, which expanded by 2.4%. Financial and insurance activities and real estate activities each increased by 2.1%.

Professional, administrative and support service activities rose by 2.0%, while trade, transportation, accommodation and food services recorded a more limited increase of 0.5%.

Construction was the only major activity listed in the data to contract, declining by 1.9% year-on-year.

On a quarterly basis, the seasonally and calendar-adjusted GDP chained volume index increased by 1.1% compared with the previous quarter.

The calendar-adjusted GDP chained volume index also increased by 2.3% in the second quarter of 2026 compared with the same quarter of the previous year.

According to the production approach, Turkiye’s GDP at current prices increased by 36.0% in the second quarter of 2026 compared with the same quarter of 2025, reaching 19 trillion 869 billion 747 million Turkish lira.

The value of GDP in the second quarter was equivalent to $438 billion 347 million when measured in current U.S. dollar terms.

The figures reflect the significant difference between nominal and real economic growth, with inflation continuing to have a major effect on current-price values.

Domestic consumption continued to provide support to economic activity during the quarter.

Final consumption expenditure by resident households increased by 3.5% in the second quarter of 2026 compared with the same quarter of the previous year, based on the chained volume index.

Government final consumption expenditure, however, declined by 1.8%.

Gross fixed capital formation increased by 0.6% during the same period, indicating a relatively modest expansion in investment activity.

Foreign trade made a negative contribution to the annual growth picture in the second quarter.

Exports of goods and services decreased by 3.4% compared with the same quarter of the previous year, according to the chained volume index.

Imports declined even more sharply, falling by 6.4%.

The contraction in both exports and imports points to weaker external trade activity during the quarter, while the larger decline in imports also affected the composition of overall domestic demand.

Labour payments recorded a substantial increase in current-price terms during the second quarter.

Labour payments rose by 36.7% in the second quarter of 2026 compared with the same period a year earlier.

Net operating surplus/mixed income increased by 38.7%.

Despite the increase in labour payments, their share of gross value added changed only slightly.

The share of labour payments in gross value added at current prices stood at 38.3% in the second quarter of 2025. This declined slightly to 38.1% in the second quarter of 2026.

Meanwhile, the share of net operating surplus/mixed income increased from 41.3% in the second quarter of 2025 to 41.6% in the second quarter of 2026.

The second-quarter figures therefore present a mixed picture of the Turkish economy. Overall GDP continued to expand, with agriculture and information and communication activities recording particularly strong growth. Household consumption also remained positive, while construction contracted and foreign trade weakened.

The 8.6% annual expansion in information and communication activities stands out among the sectoral figures, highlighting the continued importance of technology and digital services within Turkiye’s broader economic structure.

Freshwater is running out in Europe

Norway’s hydroelectric power plants are facing an unprecedented shortage of water. The water level in reservoirs in one of the country’s key energy regions has fallen to a record low for this time of year.

According to Europower, citing data from the Norwegian Water Resources and Energy Directorate, the amount of water stored in reservoirs stood at 15.6 terawatt-hours (TWh) last week. This was 0.1 TWh below the previous record low, which was recorded in 1996.

Analysts attribute the situation to several months of unusually dry weather, combined with limited snowfall during the previous winter. With less snow available to melt in the warmer months, reservoirs have received significantly less water than usual.

If sufficient rainfall does not arrive in the coming weeks, Norway’s energy system could come under serious pressure, potentially leading to higher electricity prices. The situation is particularly concerning because energy prices in Europe have already been rising amid geopolitical tensions and uncertainty in global energy markets.

The problem is especially important for Norway because hydropower plays a crucial role in the country’s electricity system. Unlike many European countries, Norway relies heavily on water reservoirs to generate electricity, making its energy supply particularly sensitive to changes in rainfall and snowfall.

Norway has also become one of the European Union’s most important energy partners, supplying large amounts of natural gas and electricity to the bloc. However, if the domestic water shortage continues, Norway may have to rely more heavily on electricity imports from neighboring European countries – some of which are also experiencing the effects of an unusually dry summer.

Interestingly, Norway’s huge hydropower reservoirs normally function almost like giant natural batteries. They store water during wet periods and release it when electricity demand is high. This allows the country to adjust electricity production depending on demand. But when rainfall and snowfall are insufficient, even this enormous energy reserve can begin to run dangerously low.

The situation also highlights the growing connection between weather, climate, and energy security. A prolonged dry period can reduce hydropower production, increase electricity prices, and force countries to look for alternative sources of energy.

For Norway, the coming weeks could therefore be crucial. Much will depend on whether enough rain arrives to replenish the reservoirs before the colder months begin. If the dry conditions continue, the impact could extend beyond Norway and put additional pressure on Europe’s already sensitive energy market.

Israeli firms ready to showcase demining technologies in Azerbaijan: Ambassador Krausz [EXCLUSIVE]

Israeli companies specializing in mine-clearance technologies could become involved in Azerbaijan’s humanitarian demining efforts, Israeli Ambassador to Azerbaijan Ronen Krausz said, highlighting the potential role of artificial intelligence, drones and advanced equipment in accelerating clearance operations.

Speaking to AzerNEWS on the sidelines of the 4th International Mine Action Conference in Baku, Krausz praised the event organized by the Azerbaijan Mine Action Agency (ANAMA) and stressed the importance of clearing contaminated land to enable the safe return of residents to their homes.

‘I think that the issue of demining is extremely important today in the world, especially here in Azerbaijan, in Garabagh,’ Krausz said.

He noted that Israel has faced mine-contamination challenges both historically and in the present, giving it experience in combining field operations with technological solutions.

‘Since Israel is well known for its capability of involving both experience on the ground together with technological solutions, we have a few options that can assist us to clear our mines using this technology and AI and drones and all sorts of equipment,’ the ambassador said.

Krausz said Israeli companies operating in the field would be interested in demonstrating their capabilities in Azerbaijan, noting that several representatives of such companies were participating in the Baku conference.

‘And definitely these companies who are operating in Israel will be happy also to be involved here in Azerbaijan in clearing the mines,’ he said.

Asked whether Azerbaijan and Israel were conducting negotiations specifically on the exchange or use of demining technologies, Krausz pointed to the broader cooperation between the two countries while emphasizing the potential for closer engagement in mine action.

‘In general, Israel and Azerbaijan have very good cooperation in many sectors,’ he said.

‘But specifically about mines, I think that since Israel has experience in the past and we have companies that are working on these issues on a constant base, I think that they can also be active here and to showcase their capabilities.’

Krausz added that the final decision on whether to utilize such technologies would rest with Azerbaijan.

‘Hopefully Azerbaijan eventually will see fit and will also utilize these options here on the ground,’ he said.

Azerbaijan has made humanitarian demining a central component of reconstruction and the return of displaced residents to territories affected by decades of conflict. The country has increasingly focused on the use of advanced technologies and international partnerships to accelerate the clearance of contaminated areas.

Developers pivot as housing market sours

Residential developers are increasingly turning to hotels and warehouses to diversify their revenue streams, as sluggish demand and tighter mortgage lending limit growth in their core housing businesses.

SET-listed SC Asset Corporation is expanding its recurring-income businesses, with hotels and other commercial assets playing a larger role in supporting earnings.

“We are focusing on businesses capable of generating recurring income alongside our residential development operations,” said Namtip Promchua, SC’s chief finance and accounting officer.

The strategy reflects its efforts to build more resilient revenue streams by adding businesses that are less dependent on homebuyer purchasing power and mortgage approvals.

In the first half, SC recorded 925 million baht in recurring income, up 75% year-on-year, driven by the expansion of its hotel and logistics portfolios, whose contributions to recurring income surged to 41% and 13%, respectively, from 5% and 6%.

Meanwhile, revenue from residential sales rose 33% to 9.4 billion baht, mainly driven by condos, which increased 3.8-fold to 4 billion baht following the completion of a project in May. The project had secured more than 90% in presales before completion.

By contrast, revenue from low-rise houses, its main revenue contributor, fell by 11% to 5.3 billion baht due to weak demand, intense competition, and a large inventory in the market.

SC’s hotel arm operates three properties totalling 545 rooms, maintaining an average occupancy rate of 65% during the first six months of the year.

Complementing its hospitality business, SC’s US residential assets in Boston achieved nearly 100% occupancy across four apartment buildings comprising 59 units.

Meanwhile, SCX Logistics, the warehouse business of SCX Corporation, which is SC’s recurring-income asset management arm, has built a 200,000-square-metre warehouse portfolio, with more than 90% of construction completed and full tenant occupancy secured.

To sustain growth, SC plans to add another 200,000 sq m of logistics space in the second half through strategic joint ventures.

The expansion of hotels and logistics assets is part of SC’s strategy to build a more diversified income base, generating recurring cash flow alongside its residential development.

SET-listed Origin Property is also seeing a growing contribution from hotels and warehouses, which it expects to become increasingly important earnings drivers under its three-year business plan.

Pitipong Trinurak, co-chief executive of Origin Property, said hotels and warehouses would remain the company’s key value-creation businesses, alongside selective residential development and expansion into new markets.

Origin operates eight hotels with an asset value of around 11 billion baht, while its Alpha warehouse business has roughly 360,000 sq m of operating space.

Alpha reported 100% occupancy in the second quarter, with all of its operating sites fully occupied, highlighting the stable demand for logistics and warehouse facilities.

The company plans to add another 150,000 sq m of warehouse space to its pipeline, mainly around Bang Na, Laem Chabang and industrial estates.

For hotel business, Origin is planning to launch Moxy Phuket Chao Fah and Motto Chiang Mai Nimman, which are among the projects planned under its latest development pipeline.

Those two hotels will have around 300 rooms, with a combined investment value of about 1.1 billion baht, further expanding Origin’s hospitality portfolio, Mr Pitipong said.

“Our strategy is based on building and operating assets until occupancy reaches an appropriate level before monetising them through real estate investment trusts or sales to investors,” he said.

This model allows Origin to generate operating income while assets are held, followed by potential gains when they are monetised and capital is recycled into new developments.

The company expects non-residential businesses to account for half of its profit this year, with hotels and warehouses becoming increasingly important contributors.

The shift comes as residential developers face slower sales growth, high mortgage rejection rates and cautious consumer spending, encouraging them to seek income from commercial and hospitality assets.

Origin’s second-quarter revenue reached 1.9 billion baht, while net profit rose to 151 million baht, supported partly by gains and cash from hotel and land disposals.

The developer expects asset-related businesses to continue to support earnings as more hotels and warehouses mature and become suitable for exits or other forms of monetisation.

SC is pursuing a similar diversification strategy, using commercial and hospitality assets to broaden its earnings base and reduce reliance on residential transfers.

For developers, the growing contribution from hotels and warehouses represents a structural shift from a predominantly project-based business towards a portfolio model combining residential sales with recurring operating income.

The trend could become increasingly important as developers seek more stable cash flows while waiting for Thailand’s residential market to recover.

Thailand’s finance minister pushes regional economic integration

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas has outlined a vision to position Thailand and the Association of Southeast Asian Nations (Asean) as a network of ‘trusted connectors’ capable of navigating an increasingly fragmented global economy.

Speaking at the Bangkok Business Summit 2026 on Thursday, Mr Ekniti said Thailand’s ‘New Horizon’ strategy should harness the region’s strengths to create new engines of growth while responding to a world increasingly shaped by geopolitical divisions.

Openness remains at the heart of the Thai and Asean economies, which have grown through trade, investment and global connectivity, he said. Asean continues to attract international investment as global companies seek regions offering growth, stability and greater supply-chain resilience.

Mr Ekniti said the concept of a ‘trusted connector’, promoted by Prime Minister Anutin Charnvirakul, had taken on greater economic significance as global competition increasingly requires not only efficiency but also security and trustworthiness.

He identified four major forces reshaping the global economy: geopolitics and geoeconomics, artificial intelligence (AI), climate change and ageing societies. All have cross-border implications, he said, and none can be effectively addressed by individual Asean countries acting alone.

On geoeconomics, the finance minister said tariffs, export controls, subsidies and stricter rules of origin were reshaping trade and investment. Global companies were no longer focused solely on low costs but were increasingly seeking reliable locations with diversified supply chains and the capacity to withstand economic disruptions.

AI, meanwhile, is turning into a new source of productivity and competitive power. Access to semiconductors, computing capacity, data and skilled workers will increasingly influence economic security, he said.

Asean should therefore look beyond competing to attract data centres and AI investment. The region should work to make technology widely accessible to small and medium-sized enterprises (SMEs), other businesses and the public.

Mr Ekniti cited the linkage of Thailand’s payment systems with Singapore’s as an example of regional digital cooperation. Asean could further expand digital infrastructure, develop AI talent, promote AI adoption among SMEs and ramp up efforts against online scams, with the proposed Asean Digital Economy Framework Agreement expected to accelerate such integration.

On energy and climate issues, he pointed to the Asean Power Grid as a clear example of cooperation that could boost both energy security and competitiveness. Asean countries possess different combinations of renewable resources, transmission systems, technologies, capital and industrial demand, making regional interconnection an opportunity to use resources more efficiently.

The minister also said ageing societies should not be viewed solely as a fiscal burden. Thailand and Singapore could develop industries in healthcare, medical services, health foods, pharmaceuticals and wellness, while countries with relatively large working-age populations, such as the Philippines and Laos, could help build stronger regional labour connectivity.

Bulbul breeding allowed, trapping banned

The removal of Thailand’s red-whiskered bulbul (nok krong hua juk) from the protected wildlife list does not allow people to trap the birds in the wild, Natural Resources and Environment Minister Suchart Chomklin stressed.

Mr Suchart said a ministerial regulation removing the species from the protected list took effect on Sept 1, allowing legal breeding, propagation and trade under relevant regulations.

He said the change applies to captive birds and does not remove protection for wild populations. The ministry will step up patrols, checkpoints and enforcement in national parks, wildlife sanctuaries, reserved forests and no-hunting areas to prevent illegal trapping and wildlife trafficking.

The ministry will also work with breeders’ associations and networks to survey and register captive birds, regulate their movement and improve animal welfare.

Mr Suchart said legal breeding could support longstanding bird-keeping traditions, particularly in southern Thailand, while creating jobs, generating income and developing the species as an economic animal. The ministry plans to establish standards for breeding farms and cages, register breeding facilities and introduce standard identification marks for individual birds.

Tourism, electronics set to power growth

The tourism recovery and continued growth of the electronics market driven by the artificial intelligence (AI) boom are anticipated to support trade and the economy in the final quarter of this year, says a commerce official.

Visit Limlurcha, vice-chairman of the Thai Chamber of Commerce, said the electronics industry is benefiting from the AI boom and is expected to propel exports.

The Joint Standing Committee on Commerce, Industry and Banking projected export growth of 12-16% this year, up from its previous prediction of 8-10%.

While Thailand’s tourism sector is shifting its focus to attracting high-spending visitors and away from volume, Mr Visit believes tourism will continue to support economic growth in the final months of this year and into the first quarter of next year.

In the longer term, Thailand’s meetings, incentives, conferences and exhibitions industry offers a competitive advantage with a comprehensive value chain ready to welcome travellers covering accommodation, restaurants and tourist attractions.

He identified several policy priorities to support the future development of Thai industries.

For example, the country needs to ensure its electronics development benefits the broader population, Mr Visit said. Thailand also needs to develop human resources with stronger technological knowledge and skills.

Regarding agriculture and food processing, he suggested the country explore new opportunities in future food to build on existing products, expand into new markets and develop new marketing opportunities. This includes specialised food for athletes, older consumers, babies and others.

As the e-commerce market grows, Mr Visit said authorities need to ensure small retailers have access to digital market channels.

Meanwhile, Thai products should receive support to gain greater access to overseas e-commerce platforms. This needs stronger connections at both the government-to-government and business-to-business levels.

He also highlighted the need to address Thailand’s high household and corporate debt levels.

With businesses facing difficulties in obtaining loan approvals, he urged policymakers to ease debt burdens and improve access to financing so businesses can keep growing.

Dutch central bank moves tonnes of gold from US to UK, citing ‘geopolitical unrest’

The Netherlands has moved 86 tonnes of its gold reserves from the United States and Canada to London, citing increasing geopolitical unrest and the need to ensure its holdings can be deployed more quickly in a crisis.

De Nederlandsche Bank (DNB), the Dutch central bank, said on Wednesday that gold stored in London could be traded more easily than reserves held in New York and Ottawa, making it the quickest location from which to mobilize the metal if necessary.

‘This makes it the quickest for DNB to deploy in a crisis situation,’ the central bank said.

DNB President Olaf Sleijpen said the transfer had strengthened the bank’s preparedness and resilience.

‘We assume that we will never need to deploy the gold, but it is nevertheless necessary to strengthen our resilience and preparedness,’ Sleijpen said.

The Netherlands held a total of 612.4 tonnes of gold worth pound 72.2 billion ($83.7 billion) at the end of 2025, according to DNB.

Before the operation, 31.3% of the country’s gold reserves were held in New York and 19.7% in Ottawa. Following the transfer, the share held in each location fell to 18.5%, while London’s share increased from 18.1% to 32.1%. The Netherlands continues to hold 30.8% of its reserves domestically.

The operation, which took place between March and August, combined gold purchases and sales with physical transfers. DNB said more than 27 tonnes of physical gold were moved from the US and Canada to its facility in Zeist, while an equivalent quantity was transferred from Zeist to London.

The arrangement allowed the bank to avoid melting down and recasting existing gold bars while reducing the risks associated with physically transporting a larger quantity of gold.

The move comes amid growing attention among central banks to the location and accessibility of their gold reserves as geopolitical tensions rise.

Laurent Schwartz, president of the Paris-based National Gold Council, said central banks had been repositioning their reserves for roughly a decade, adding that the current political environment in the United States could encourage some institutions to favor alternative storage locations.

London, he said, remains the world’s deepest and most liquid gold market, allowing central banks to deploy their holdings more easily during a crisis and lend gold to other financial institutions.

John Plassard, an analyst at Cite Gestion Private Bank, similarly described the Dutch transfer as a measure aimed at ensuring more immediate access to gold during a crisis.

He said the move was currently a relatively isolated case but warned that broader moves by other central banks could eventually affect confidence in the US as a major gold-storage location.