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☆ Russia's war on Ukraine latest: Wagner mercenaries claim control of Bakhmut's east
▼ + stars: | 2023-03-08 | by ( ) www.reuters.com time to read: +3 min

FIGHTING* German Defence Minister Boris Pistorius on Wednesday warned against reaching premature conclusions on who was responsible for blowing up the Nord Stream pipelines, suggesting the attack could have been a "false flag" operation to blame Ukraine. * Russian forces made more than 30 unsuccessful attacks over the past day near Orikhovo-Vasylivka alone, 20 km (12 miles) northwest of Bakhmut, the General Staff of the Ukraine's Armed Forces said on Wednesday. * Russian Defence Minister Sergei Shoigu said the seizure of Bakhmut would allow Moscow's forces to mount further offensive operations deeper inside Ukraine. * Ukrainian Defence Minister Oleksii Reznikov urged his European Union counterparts on Wednesday to support a plan to buy 1 million artillery shells to help Kyiv fight Russia's invasion and replenish their own stocks. * External backers pour billions into Ukraine* How has China stood by 'no limits' partner Russia?

☆ IMF chief: Ukraine war will have ‘devastating’ consequences for Russia’s economy
▼ + stars: | 2023-03-08 | by ( Julia Horowitz | ) edition.cnn.com time to read: +4 min

In January, the IMF projected that Russia’s economy would expand by 0.3% this year and 2.1% the next. Georgieva told CNN that Russia’s economy would suffer over time as workers emigrated and access to technology was cut off, and as sanctions on its vast energy industry took a toll. Yet according to Georgieva, it’s essential policymakers don’t ease up on interest rate hikes prematurely, lest prices soar again. The Fed slowed the pace of rate hikes last month, but Powell indicated in testimony to Congress Tuesday that the central bank may need to turn hawkish again. The Fed “would be prepared to increase the pace of rate hikes” if necessary, he added.

☆ Falling Oil Revenues and Soaring War Costs Squeeze Russia’s Finances
▼ + stars: | 2023-03-06 | by ( Georgi Kantchev | ) www.wsj.com time to read: 1 min

The Russian government typically depends on oil and gas sales for around 45% of its budget revenues. Russia’s government budget plunged into a deeper deficit in February, heaping pressure on the Kremlin to square the ballooning costs of its war in Ukraine with falling oil revenues caused by a raft of Western sanctions. The soaring budget hole comes after both the Russian economy and the state have weathered Western sanctions better than expected during the first year of the war. Some economists have warned the pain would rise as time went by, with new sanctions targeting Russia’s ability to turn its extensive natural resources into cash—historically its main source of revenue.

☆ Academic Fight Erupts Over Measuring the West’s Pressure on Russian Economy
▼ + stars: | 2023-03-03 | by ( Josh Zumbrun | ) www.wsj.com time to read: 1 min

The corporate departures from Moscow and elsewhere in Russia began a year ago. One way to judge the impact of Western economic pressure on Russia is by how many Western companies stop doing business there. Measuring that impact has produced an unusually bitter dispute between a group of academics at Yale University and another at two Swiss universities. The two groups have produced widely divergent estimates of the scale of corporate departures from Russia since it invaded Ukraine a year ago.

☆ Russia's oil and gas revenue reportedly tanked in February as price caps and sanctions ate into export earnings
▼ + stars: | 2023-03-03 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +2 min

Russia's revenue from oil and gas exports almost halved in February of this year, Bloomberg reported. Price caps and sanctions imposed by Western countries have eroded Moscow's energy earnings. The tax revenue Russia collects from selling oil and gas sank 46% in February from a year earlier. Two-thirds of the country's energy tax revenue in February came from sales of Russia's crude oil and petroleum products, which plunged by 48% to $4.78 billion, per Bloomberg estimates. It's a sign Western sanctions are having their intended impact on Russia's economy.

☆ Russia's war on Ukraine latest: Russians press battle for Bakhmut
▼ + stars: | 2023-03-01 | by ( ) www.reuters.com time to read: +4 min

[1/2] Ukrainian service members ride a self-propelled howitzer, as Russia's attack on Ukraine continues, near the frontline city of Bakhmut, Ukraine February 27, 2023. * The Kremlin repeated its position that Russia was open to negotiations to end the Ukraine conflict, but that new "territorial realities" could not be ignored. * Foreign ministers from around the world meet in New Delhi this week in the shadow of the war and U.S.-China tensions. * External backers pour billions into Ukraine* How has China stood by 'no limits' partner Russia? * A year into war, older refugees running out of hope* Life and death in Mariupol - a survivor's tale of war* Family mourns Bucha victim who became symbol of warPODCASTLearn more about the Ukraine war.

☆ CNN exclusive: Yellen says ‘so far, so good’ in US inflation battle
▼ + stars: | 2023-02-27 | by ( Alicia Wallace | ) edition.cnn.com time to read: +3 min

Minneapolis CNN —Treasury Secretary Janet Yellen said Monday she believes US inflation remains too high but that a soft landing is on the radar. During an exclusive interview with CNN’s Melissa Bell from Kyiv, Yellen said the Federal Reserve’s efforts to date to bring down inflation while maintaining a strong labor market appear achievable. “I would say, ‘So far, so good,’” said Yellen, a former Fed chair who led the central bank from 2014-2018. But look, inflation still is too high, but generally if you look over the last year, inflation has been coming down. “It’s utterly essential to preserve that to avoid economic and financial catastrophe,” she told CNN.

☆ France says sanctions against Russia are 'very efficient' as more are being considered
▼ + stars: | 2023-02-27 | by ( Sumathi Bala | ) www.cnbc.com time to read: +5 min

watch nowFrance's finance minister told CNBC that additional sanctions are being considered against Russia for its unjustified war against Ukraine, as current measures have proven to be "very efficient." When you are looking at the assets that have been frozen — more than $58 billion, you can say that sanctions against Russia are efficient," said the finance minister. Bruno Le Maire French finance ministerThe European Union recently ramped up its oil sanctions against Russia. The Group of 7 implemented a $60 price cap on Russian oil on Dec. 5. Reuters reported that the G-7 economies agreed to review the level of the price cap on exports of Russian oil in March.

☆ U.S. announces $2 bln security aid to Ukraine - White House official
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, Feb 23 (Reuters) - The United States will provide Ukraine an additional $2 billion in security assistance, White House national security adviser Jake Sullivan said on Thursday. "We're going to continue to look at what is necessary, and make sure that we provide what is necessary that Ukraine has what it needs to succeed on the battlefield," Sullivan said at a CNN town hall event, where he announced the additional aid. Asked about Ukraine's request for U.S. F-16 fighter jets, Sullivan said from Washington's perspective "F-16s are not a question for the short-term fight. F-16s are a question for the long-term defense of Ukraine." Reporting by Eric Beech; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

☆ Russian 2023 budget deficit to widen as price caps take effect - Scope
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +1 min

BERLIN, Feb 24 (Reuters) - Lower revenues from oil and gas exports will significantly widen Russia's budget shortfall this year, according to an analysis from the European ratings agency Scope obtained by Reuters on Friday. Scope expects the deficit to rise to 3.5% of gross domestic product (GDP), significantly wider than the government's forecast of 2% of GDP, according to the analysis. Another way to plug the deficit is to issue domestic bonds to state-owned banks, backed by liquidity provided by the Bank of Russia. Western countries want caps on the price of Russian oil to reduce income for the Kremlin's war chest for its invasion of Ukraine, which entered its second year on Friday. Reporting by Rene Wagner; Writing by Friederike Heine; Editing by Rachel More and Kevin LiffeyOur Standards: The Thomson Reuters Trust Principles.

The United States joined with G7 allies with plans to impose sanctions that will target 200 individuals and entities and a dozen Russian financial institutions. They planned to form an "Enforcement Coordination Mechanism," at first chaired by the United States, to counter Russian efforts to circumvent the sanctions. The sanctions are aimed at targets in Russia and "third-country actors" across Europe, Asia and the Middle East that are supporting Russia's war effort, the White House said in a fact sheet. "We will sanction additional actors tied to Russia's defense and technology industry, including those responsible for backfilling Russian stocks of sanctioned items or enabling Russian sanctions evasion," it said. Biden was also set to sign proclamations to raise tariffs on Russian products imported to the United States.

☆ Analysis: Russian economy holding up but the road back to prosperity may be long
▼ + stars: | 2023-02-23 | by ( Alexander Marrow | ) www.reuters.com time to read: +6 min

"The Russian economy and system of governance proved to be much stronger than the West supposed," President Vladimir Putin told Russia's political, military and business elite this week. 'GUNS NOT BUTTER'He also argued for sustainable domestic development and a self-sufficient economy, recalling a criticism levelled against Soviet leaders so focused on military spending they ignored people's welfare. But Russia is ramping up military spending, and diverting funds from hospitals and schools will ultimately hamper the development of civilian economic infrastructure. Prokopenko, who also highlighted the opportunity cost to the economy, said Russia's financial leadership had become used to navigating crises. Putin can be proud of his 'Fortress Russia' that his financial leadership built for him," she said.

[1/6] Ukrainian servicemen of the 17th Independent Tanks Brigade are seen atop of a T-64 tank, as Russia's attack on Ukraine continues, near the frontline town of Bakhmut, Donetsk region, Ukraine February 23, 2023. "Using Ukraine, the collective West is seeking to dismember Russia, to deprive it of its independence. U.S. President Joe Biden will meet virtually on Friday with G7 leaders and Zelenskiy to mark the anniversary and announce new sanctions against those aiding Russia's war effort, the White House said. Ukraine and its Western partners have brushed off the nuclear talk as a diversion from a stalled military campaign. Some U.S. and Western officials estimate Russia's military casualties at nearly 200,000 dead or wounded, while in November the top U.S. general said more than 100,000 troops on each side had been killed or wounded.

After Russia invaded Ukraine, the West formed what looked like an overwhelming global coalition: 141 countries supported a United Nations measure demanding that Russia unconditionally withdraw. South Korea Indonesia Israel Thailand Japan Saudi Arabia Philippines Afghanistan CambodiaBy contrast, Russia seemed isolated. Eritrea “Russian actions are being distorted” North Korea Russia Belarus Syria Eritrea “Russian actions are being distorted” North Korea Russia Belarus SyriaBut the West never won over as much of the world as it initially seemed. But like many other African countries, South Africa appears careful to balance its growing ties with Russia against maintaining a relationship with the West. Others that provided Ukraine with military support have declined to impose economic sanctions on Russia.

☆ How China is helping to prop up the Russian economy through the war in Ukraine
▼ + stars: | 2023-02-22 | by ( Laura He | ) edition.cnn.com time to read: +8 min

China has been buying more energy from Russia since the Ukraine war started. Total trade between China and Russia hit a new record high in 2022, up 30% to $190 billion, according to Chinese customs figures. In particular, the energy trade has risen markedly since the onset of the war. Russian companies have been using more yuan to facilitate the increased trade with China. UnionPay, the Chinese payments system, has reportedly stopped accepting cards issued by Russian banks over fears of international sanctions, according to Russian paper Kommersant.

☆ Russia’s economy is hurting despite Putin’s bluster
▼ + stars: | 2023-02-22 | by ( Julia Horowitz | ) edition.cnn.com time to read: +9 min

Russia’s economy did weaken as a result. “The Russian economy and system of government have turned out to be much stronger than the West believed,” Putin said in a speech to Russia’s parliament Tuesday. The bloc, which dramatically reduced its dependence on Russian natural gas last year, officially banned most imports of Russian crude oil by sea in December. Russia’s oil problemIn fact, Russia’s export revenue from oil rose last year. On the declineThe International Monetary Fund still expects Russia’s economy to expand by 0.3% this year and 2.1% the next.

☆ Putin tells business elite: Don't beg for Western money, invest in Russia
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: +2 min

Summary This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine. "Trying to run around with your hand outstretched, grovelling, begging for money, is pointless," Putin said in a televised address to Russia's political, military and business elite. "Launch new projects, make money, invest in Russia," he said. Either way, those estimates are a far cry from Moscow's early fears of a double-digit drop as Western sanctions hit. Putin extolled Russia's limited economic contraction last year as evidence of the country's resilience.

☆ Russia's war on Ukraine latest: Battle around Bakhmut goes on in the mud
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: +4 min

[1/6] Ukrainian service members ride inside an infantry fighting vehicle near the frontline town of Bakhmut, amid Russia's attack on Ukraine, in Donetsk region, Ukraine February 25, 2023. * U.S. Treasury Secretary Janet Yellen paid a surprise visit to Kyiv to reaffirm U.S. support and economic aid to help Ukraine's war campaign. * China has "very clearly" taken Russia's side in the Ukraine war by providing diplomatic, political and economic support, the U.S. State Department said. FIGHTING* The military situation is becoming increasingly difficult around Bakhmut, the focal point of Russia's advances in eastern Ukraine, President Zelenskiy said. * A year into war, older refugees running out of hope* Life and death in Mariupol - a survivor's tale of war* Family mourns Bucha victim who became symbol of warPODCASTLearn more about the Ukraine war.

☆ Putin took a swipe at oligarchs who have fled abroad, while asking them to come back and invest in Russia
▼ + stars: | 2023-02-21 | by ( Mia Jankowicz | ) www.businessinsider.com time to read: +3 min

Putin aimed a jab at Russian oligarchs living abroad in his state-of-the-nation speech on Tuesday. He pointed out how Western sanctions have hurt them, and said they should now invest in Russia. The annual state-of-the-nation address is a tool to shore up domestic political support and assert Russia's place in world affairs. "It's like 'you've got no friends, you might as well get on board,'" McGlynn said to describe Putin's line of attack. McGlynn also says that there are no Russian oligarchs left "because 'oligarchs' suggests that [these] people have influence like they did in the 1990s.

The SWIFT global payments system block and the freezing of more than $300 billion worth of central bank reserves abroad took Russia by surprise. The top executive at the top-20 Russian bank said Moscow was unprepared in particular for liquid assets being blocked and euro and dollar swaps becoming unavailable. "No one expected that the central bank would come under sanctions, and that it would be unable to help with foreign currency liquidity at that difficult moment," they said. 'BEST FRIEND'For banks, central bank support was crucial to weathering the initial hit to their business. The central bank's forecast is more restrained, at around 1 trillion roubles.

☆ Putin's address to Russia's parliament
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: +4 min

Here are highlights from his speech, which was delivered to members of both houses of parliament, state officials, military commanders and soldiers. CULTURE WARS"They distort historical facts, constantly attack our culture, the Russian Orthodox Church, and other traditional religions of our country. Millions of people in the West understand they are being led to a real spiritual catastrophe. Russia is not withdrawing from the treaty but is suspending its participation..."The United States is developing new types of nuclear weapons... In this situation, the Russian Ministry of Defense and Rosatom must ensure readiness for testing Russian nuclear weapons.

An Austrian official said that Austrian authorities were monitoring the situation at Raiffeisen and its business in Russia closely because of the bank's importance. Almost a year since Moscow launched what it calls a "special military operation" in Ukraine, Raiffeisen is among a handful of European banks that remain in Russia. Raiffeisen made a net profit of roughly 3.8 billion euros last year, thanks in large part to a 2 billion euro plus profit from its Russia business. Alternatively, OFAC can also resort to less stringent measures such as levying fines and sending warning letters over sanctions violations. OFAC has sanctioned five major Russian banks, including state-backed Sberbank (SBER.MM) part of a response to that country's invasion of Ukraine, as well as wealthy oligarchs.

London CNN —The European Union is setting up a working group to examine whether frozen Russian assets can be used to rebuild Ukraine. The statement added that part of this work would involve obtaining a “clearer picture” of where Russian state-owned assets are located and their value. “In principle, it is clear-cut: Russia must pay for the reconstruction of Ukraine,” Swedish Prime Minister Ulf Kristersson said. A senior EU official estimated earlier this month that the European Union and Western allies had frozen more than $300 billion in Russian central bank assets that could potentially be used to rebuild Ukraine. The European Union is also working on a tenth package of sanctions against Russia.

☆ Russia's budget deficit has surged. But economists say Moscow won't drain its war chest any time soon
▼ + stars: | 2023-02-15 | by ( Elliot Smith | ) www.cnbc.com time to read: +8 min

However, both the Russian finance ministry and the central bank maintain that all of this is within their models. Christopher Granville, managing director of global political research at TS Lombard, noted two further factors distorting the most recent deficit figures. watch nowThe actual Urals price dived as a result, averaging just $46.8 per barrel during the period from mid-December to mid-January, according to the Russian finance ministry. The finance ministry also flagged massive advance payments for state procurement in January, which totaled five times those of January 2022. "Also, it has plans to issue debt, but this can only be done domestically so it's like a closed circuit — Russian banks buying debt from the Russian state, etcetera etcetera.

☆ Moscow's decades-old gas ties with Europe lie in ruins
▼ + stars: | 2023-02-14 | by ( Vladimir Soldatkin | ) www.reuters.com time to read: +10 min

Washington has long criticised Germany's policy of reliance on Russian energy, which until last year, Berlin had said was a means to improve relations. In October, he mooted an idea of a gas hub in Turkey to divert the Russian gas flows from the Baltic Sea and North-West Europe. The 20-year supply deal is worth about $30 billion in current gas prices. In Europe, gas prices hit record levels and international oil prices shortly after the special military operation began spiked close to their all-time high. Domestic gas prices are regulated by the government and there have been discussions about liberalising the gas market, a sensitive issue for Russian households.

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