Moscow and Tehran signed a $40 billion energy supply deal last year

Russia has made its first fuel deliveries to Iran by rail as the two sanctioned countries rapidly expand energy and trade ties amid Western restrictions, Reuters reported on Tuesday, citing three industry sources and export data.

Last autumn, Russian Deputy Prime Minister Aleksandr Novak announced that Moscow and Tehran had clinched a massive energy deal worth $40 billion and agreed to swap supplies of oil and natural gas. Since then, the two countries have been working out the routes and technical arrangements for the deal.

The actual supplies started this year when Russia exported about 30,000 tons of gasoline and diesel to Iran in February and March, according to sources and tracking data.

The outlet said that all fuel cargoes were shipped from Russia through Kazakhstan and Turkmenistan by rail. Some volumes of gasoline were further sent by truck from Iran to neighboring countries, including Iraq.

Russia previously exported small volumes of fuels to the Middle Eastern country via the Caspian Sea. However, Moscow now seeks to expand rail deliveries to Tehran as seaborne diesel and gasoline cargoes face high freight fees and are subject to Western-imposed price caps.

Iran itself is an oil-producing country with large deposits and its own refineries. However, demand has recently surpassed domestic fuel production in particular in its northern provinces, a trader in Central Asian oil products market told the outlet.

“We expect fuel supplies to Iran to rise this year, but we already see several issues with logistics due to rail congestion. That may keep exports from booming,” one of the sources familiar with supplies to Iran told Reuters.As weak rail links could be a hurdle for future development, the two countries are also considering infrastructure projects to help boost economic cooperation.

Currently, the main overland route for cargo sent from Russia to Iran passes through Azerbaijan. This is part of the so-called International North-South Transport Corridor, a 7,200-kilometer-long multi-mode transit system that connects ship, rail, and road routes for moving cargo between India, Iran, Azerbaijan, Central Asia, Russia, and the rest of Europe.

Though the corridor existed back in Soviet times, developing it further has taken on a new importance as Western sanctions have forced Russia to shift its trade routes towards Asia and the Middle East.

Global technology consultancy hedgehog lab has secured £6.3 million investment from BGF – one of the largest and most experienced growth capital investors in the UK and Ireland.

As part of the multi-million-pound deal, the business has announced the acquisition of York-based digital product consultancy Netsells, in a move that will support the company’s ambitious growth plans.

Headquartered in Newcastle and with operations in the US and Bulgaria, hedgehog lab works with a wide range of global brands, including AJ Bell, Aviva, Deliveroo and Tesco Bank. It provides businesses with cutting-edge mobile app and web development solutions and has grown rapidly since incorporating in 2007.

Netsells is a digital product consultancy working across web and mobile, it is ranked as one of the North’s fastest growing tech businesses.

The two companies will come together under the hedgehog lab brand and will be headed up by hedgehog lab’s current CEO Sarat Pediredla alongside a new executive board that includes ex-Accenture Song managing director and Karmarama founder Ben Bilboul.

Operating in the fast growth mobile and web development sector, BGF’s funding will enable the Group to further expand its service offering to enterprise clients and SMEs in both the UK and US.

Sarat Pediredla commented: “The acquisition of Netsells is a major milestone for us as a company. The combination of two firms with established and renowned capabilities will enhance our offering and growth prospects massively by bringing together some of the best talent in the industry and facilitating our continued expansion into new international markets.”

The deal was led by John Healey and James Baker, investors in BGF’s Yorkshire & North East team.

BGF’s John Healey said: “We are delighted to be supporting hedgehog lab on the next stage of its growth journey. The company has already established itself as a leading global digital product consultancy and the acquisition of Netsells will combine the talent and capability of two great teams, unlocking more opportunities in this exciting sector and positioning the business as a credible player of scale in the global digital marketplace.”

Consumers have reduced non-essential spending amid concerns about the cost-of-living crisis, data has shown 

UK consumers slashed spending on luxuries and dining out in March as household incomes continue to suffer amid stubborn double-digit inflation, Bloomberg reported on Tuesday, citing Barclays data.

More than half of Barclays cardholders cut spending on luxury items and one-off treats, while six in ten trimmed expenses on eating out and purchases of new clothes, the bank said after analyzing data on credit and debit card transactions.

According to the lender, overall consumer spending grew 4% last month from a year earlier, with expenses in supermarkets climbing 7.8% – well below the rate of increase in prices for food and non-alcoholic drinks.

Overall inflation for food and non-alcoholic beverages surged to 18% in February, the highest level since 1977.  The data indicates that British consumers are increasingly changing their shopping habits to save money amid the worsening cost-of-living crisis. Cash-strapped households are becoming more exposed as wage growth fails to keep pace with the biggest jump in prices in 40 years.

Annual inflation unexpectedly rose to 10.4% in February, marking the sixth straight month in double digits and placing