Showing posts with label Russia Ukraine war. Show all posts
Showing posts with label Russia Ukraine war. Show all posts

Monday, July 3, 2023

Russia's rouble tumbles past 89 vs dollar to over 15-month low

 By Alexander Marrow

June 30, 2023  7:11 PM GMT+7 


A view shows Russian rouble coins in this picture illustration taken October 26, 2018. Picture taken October 26, 2018. REUTERS/Maxim Shemetov


June 30 (Reuters) - The Russian rouble tumbled past 89 against the dollar for the first time in more than 15 months on Friday, weighed down by domestic political risk concerns after an aborted armed mutiny over the weekend, and lacking any support drivers.

By 1156 GMT, the rouble was 1.8% weaker against the dollar at 89.15 after earlier hitting 89.3275, its weakest point since March 29, 2022.

It lost 1.8% to trade at 96.74 versus the euro , also a 15-month low. It shed 1.4% against the yuan to 12.23 <CNYRUBTOM=MCX>, a more than 14-month low.

"The rouble continues to crumble," Alor Broker said in a note. "It lost another 1.4% in value yesterday, despite stabilising oil. The target for the dollar-rouble pair of 90 is approaching and is likely to be reached."

https://graphics.reuters.com/RUSSIA-MARKETS/zdvxdmmgwvx/chart.jpg

Rouble sinks to over 15-month low

Capital controls have helped insulate the rouble against geopolitics in the 16 months since Russia invaded Ukraine, but mercenary leader Yevgeny Prigozhin's aborted weekend march toward Moscow reverberated through markets and raised questions about President Vladimir Putin's grip on power.

The rouble lost a key support factor on Wednesday as a month-end tax period that typically sees exporters convert foreign currency revenues to meet local liabilities passed.

Bank of Russia Deputy Governor Alexei Zabotkin said reduced export revenues and the balance of payments were determining the rouble's weakening, which he said carried no risks to financial stability.

"But, certainly, the exchange rate dynamics will be taken into account at the next board meeting on the key rate in terms of clarifying the impact ... on inflation dynamics this year," the Interfax news agency quoted Zabotkin as saying on Friday.

Brent crude oil , a global benchmark for Russia's main export, was up 0.1% at $74.41 a barrel.

Russian stock indexes were lower.

The dollar-denominated RTS index (.IRTS) was down 2.1% to 985.5 points. The rouble-based MOEX Russian index (.IMOEX) was 0.3% lower at 2,787.6 points.

Shares in Gazprom (GAZP.MM) dropped about 0.6% after the energy group's shareholders approved the board's recommendation against paying full-year 2022 dividends after allocating a half-year dividend of 1.2 trillion roubles ($13.6 billion).

($1 = 88.2200 roubles)

Reporting by Alexander Marrow; Editing by Jamie Freed, Robert Birsel, Jane Merriman and Mark Heinrich

Our Standards: The Thomson Reuters Trust Principles.

https://www.reuters.com/markets/currencies/rouble-sinks-over-15-month-low-vs-dollar-political-risk-concerns-2023-06-30/

Romania expels 40 Russian diplomats and embassy staff

 


By Daniel Bellamy

Forty Russian diplomats and embassy staff have been expelled from Romania as relations worsen between the countries over the war in Ukraine.

The staff and their families left on a special flight from Bucharest which was organised by the Russian authorities.

The number of staff at the Russian embassy has been slashed by more than half and follows the expulsion of 11 Russian diplomats immediately after Ukraine was invaded in February 2022.

Romania was a communist state until a revolution overthrew its dictator Nicolae Ceausescu in 1989, but was never a part of the Soviet Union which collapsed the same year

https://www.euronews.com/2023/07/01/romania-expels-40-russian-diplomats-and-embassy-staff

Special report: Russia buying civilian drones from China for war effort

Moscow relying on 'dual use' equipment and third-party exporters


The DJI Mavic 3 Cine Drone shown here could be used in Ukraine to gather intelligence on the battlefield, according to a Japanese expert. (Source photos by Getty Images and AP)

Nikkei staff writers and JACOB FROMER, Contributing writer

July 1, 2023 17:59 JST

 

Russia has for months been importing drones from Chinese companies explicitly for use in its invasion of Ukraine, despite denials from Beijing that such equipment is being deployed in the war, a Nikkei Asia investigation has found.

Between December 2022 and April 2023, Russian companies imported at least 37 Chinese unmanned aerial vehicles worth around $103,000 that were designated in customs clearance records as being "for use in the special military operation," the Russian government's name for the Ukraine war. 

Since the beginning of the invasion 16 months ago, Beijing has repeatedly denied providing weapons to Moscow for use in the invasion. And while previous reporting has shown that Russia stepped up its imports of Chinese drones after the war began, Beijing has denied that China is exporting drones to the battlefields of Ukraine.

"China calls on all relevant parties to work together to strengthen controls, prevent all types of drones from being used on battlefields in conflict areas, and jointly promote international peace and regional stability," a spokesperson for China's Ministry of Commerce said in April.

But Nikkei's reporting shows that for months, Russian companies have been quietly filling out customs paperwork for the import of drones, including machines manufactured by U.S.-sanctioned DJI, China's biggest drone maker, marking them for use in the war. It is unclear whether the Chinese companies or government is aware of Russia's customs records regarding the drones.

Nikkei obtained the Russian customs records from multiple sources, including Indian companies Exim Trade Data and Export Genius, and analyzed shipments from China to Russia.

The label "for use in the special military operation" began appearing in customs records late last year, after Russian President Vladimir Putin ordered his government to increase the supply of goods needed for the war.

In November, the Federal Customs Service of Russia said on its official website that the agency would expedite and simplify the release of "dual-use goods and civilian products intended to support the combat and daily activities of Russian military units."

Drones "should be a must-have for combat units, platoons, companies and battalions," Putin told defense officials in December, according to a Kremlin transcript. Military analysts say Russia has been using drones to surveil and attack Ukraine.

Nikkei found that Russian companies also paid Chinese counterparts more than $1.2 million for 22 devices that detect and jam drones, and another $36,077 for 10 "rugged" portable personal computers. All were designated in customs records for use in the war.

In one case, on Feb. 1, Russian information technology company Status Compliances imported three drones, with takeoff weights of between 25 kg and 150 kg, from Shenzhen Kexin Smart Development, an electronic devices manufacturer in Shenzhen, for $28,292. They were made by Shenzhen Jarch Electromechanical Technology, according to Exim Trade Data.

The drones were described in the records as civilian models, but an additional note in the customs forms says they were being imported for the "special military operation carried out by the armed forces of the Russian Federation."

"Large drones weighing over 25 kg could be used for reconnaissance, and if modified, could be used for attack," said professor Tomoyuki Furutani of Keio University, an expert on unmanned aircraft. "They could be made into a self-destruct type, loaded with firepower to attack." He added that smaller drones like DJI's MAVIC 3 could be used to gather intelligence rather than attack.

Customs records show that in January and March, 34 drones manufactured by DJI, worth $75,100, were shipped to Russia, each with a takeoff weight of between 250 grams and 7 kg. Twenty-four were listed as DJI's Mavic 3 model.

In a statement to Nikkei, DJI said the company could not verify the customs records involving DJI this year and denied that the listed companies were DJI dealers. The company said that DJI, as well as its subsidiaries, had "voluntarily stopped all shipments to and operations in Russia and Ukraine" on April 26 last year, but added that the company "cannot control how our products are being used once they leave our management."

"We have taken all steps under our control to emphasize that our products should not be used in combat, to cause harm, or be modified into weapons," the company said.

When asked about the drones that the Russia customs data showed it had imported, Status Compliances initially told Nikkei that it was not aware of any such purchases. When Nikkei showed the company detailed transaction information, the company denied that it had taken place.

Status Compliances says on its website that it develops information security systems for companies.

The manufacturer listed in the customs records, Shenzhen Jarch Electromechanical Technology, says on its website that it makes electrical slip rings, a device used in the transmission of electricity or electrical signals, but does not mention drones. When asked for comment by a Nikkei reporter, Shenzhen Jarch Electromechanical Technology denied that it exports drones to Russia.

Shenzhen Kexin Smart Development, the Chinese seller listed in the customs records, did not respond to multiple inquiries.

Two Hong Kong-based companies, APIO Group and Shenwei Technology HK, were also listed as selling drones and drone suppressors, respectively, to Russia for the war, but neither of the two companies appears to have a physical presence in the city.

Their registered offices use addresses of company formation agents, which can offer one address for thousands of companies to use for registration simultaneously -- common practice in Hong Kong, where it is easy and inexpensive for businesses to incorporate.

APIO Group and Shenwei Technology did not respond to Nikkei's request for comment.

Damien Spleeters, deputy director at Operations at Conflict Armament Research, a U.K.-based investigative organization, said Russia has been relying on civilian goods and components in their weapon systems since before the February 2022 invasion.

"It should not be a surprise that they continue to do so, since they lack the domestic capability to effectively produce these goods and components themselves," he said.

Nikkei also requested interviews with the Russian government and the Chinese Embassy in Japan about the drones, but received no response.

From March 2022 to May 2023, China exported at least 30,000 drones to Russia, worth over $32 million, according to China's official customs data.

Russia's import records, however, did not mention the phrase "special military operation" until December 2022.

Multiple lawyers and other experts familiar with Russian customs practices speculated that importers may be declaring that the drones are being used for the war in order to speed them through the customs process.

Experts tracking the war say that Russia has been plagued by logistical problems and supply shortages since the beginning of the invasion. Russian President Vladimir Putin has spoken publicly about the need for more materiel.

On Oct. 25, Putin met with the head of Russia's Federal Customs Service, Vladimir Bulavin, who told Putin that the customs agency would "provide every possible assistance to our armed forces and defense industry companies," according to a transcript from the Kremlin.

The first mention of the "special military operation" in Russian customs records came on Dec. 21 -- a $296,550 shipment of five "passive scanners" that detect drones, and a $92,115 shipment of three jammers that block communications between a drone and its remote controller.

U.S. Secretary of State Antony Blinken said during his visit to Beijing last month that the U.S. has "ongoing concerns" that Chinese companies may be providing technology that Russia can use in its aggression against Ukraine and said he had urged his Chinese counterparts to be vigilant. He added, however, that he had seen no evidence that Beijing is providing lethal assistance to Moscow.

"If they [China] don't intend to be a part of Russia's war, they shouldn't sell the drones," said Kazuto Suzuki, a University of Tokyo professor who previously served on the Panel of Experts for the U.N. Security Council's Iran Sanctions Committee.

"The fact that they are putting them out there knowing Russia's intentions, from an ethical standpoint, is an act of not wanting to stop the war, and facilitating it," Suzuki said.

https://asia.nikkei.com/Politics/Ukraine-war/Special-report-Russia-buying-civilian-drones-from-China-for-war-effort


Tuesday, June 27, 2023

Wagner mutiny exposes risks for China's deep Russian ties

By Martin Quin Pollard and Yew Lun Tian

June 28, 2023   3:20 AM GMT+7 



Fighters of Wagner private mercenary group pull out of the headquarters of the Southern Military District to return to base, in the city of Rostov-on-Don, Russia, June 24, 2023. REUTERS/Stringer/File Photo

BEIJING, June 27 (Reuters) - As news broke on Saturday that mercenary Wagner troops were careering towards Moscow in a short-lived rebellion, several businessmen from southern China began frantically calling factories to halt shipments of goods destined for Russia.

While the mutiny - the biggest test of Russian President Vladimir Putin's leadership since his February 2022 invasion of Ukraine - quickly faded, some of these exporters are now left questioning their future dependence on Beijing's closest ally.

"We thought there was going to be a big problem," Shen Muhui, the head of the trade body for the firms in China's southern Fujian province said, recalling the scramble among its members exporting auto parts, machinery and garments to Russia.

Though the crisis has eased, "some people remain on the sidelines, as they're not sure what will happen later," he added, declining to name the companies pausing shipments.

China has sought to play down the weekend's events and voiced support for Moscow, with which it struck a "no limits" partnership shortly before Russia invaded Ukraine in what Moscow calls a "special military operation".

But a top U.S. official on Monday said the weekend uprising had unsettled Beijing's cloistered leadership, and some analysts inside and outside China have started to question whether Beijing needs to ease off its political and economic ties to Moscow.

"It has put a fly in the ointment of that 'no-limits' relationship," said Singapore-based security analyst Alexander Neill.

China's foreign ministry, which described the aborted mutiny as Russia's "internal affairs" and expressed support for Moscow's efforts to stabilise the situation, did not immediately respond to a Reuters request for comment.

CALLS FOR CAUTION

Yevgeny Prigozhin, head of the Wagner private army that has fought some of Russia's bloodiest battles in the Ukraine war, led the armed revolt after he alleged a huge number of his fighters had been killed in friendly fire.

But the mercenary leader abruptly called the uprising off on Saturday evening as his fighters approached Moscow while facing virtually no resistance during a dash of nearly 800 km (500 miles).

China did not comment as the crisis unfolded, but released a statement on Sunday when Foreign Minister Qin Gang hosted a surprise meeting with Russia's deputy foreign minister in Beijing.

At the heart of China and Russia's relations is a shared opposition to what they see as a world dominated by the United States and the expansion of the NATO military alliance that threatens their security.

After securing an unprecedented third term as president earlier this year, Chinese President Xi Jinping made his first overseas trip to Moscow to meet his "dear friend" Putin.


Russian President Vladimir Putin and Chinese President Xi Jinping attend a reception at the Kremlin in Moscow, Russia March 21, 2023. Sputnik/Pavel Byrkin/Kremlin via REUTERS /File Photo

While nationalistic commentators in state-run Chinese tabloids cheered Putin's swift efforts to stamp out the rebellion, even some in China - where critical speech is tightly controlled - have started to question Beijing's bet on Russia.

China "will be more cautious with its words and actions about Russia", said Shanghai-based international relations expert Shen Dingli.

Some Chinese scholars have gone even further.

Yang Jun, a professor at Beijing's China University of Political Science and Law, wrote a commentary published on Saturday that called for China to directly support Ukraine to avoid being "dragged into a quagmire of war by Russia".

"With the development of the current situation and the trend of the war...(China) should further adjust its position on Russia and Ukraine, make its attitude clearer, and decisively stand on the side of the victors of history," he wrote in Chinese-language Singaporean newspaper Lianhe Zaobao.

It was unclear if Yang's article was written before the Wagner rebellion and he did not respond to requests for an interview from Reuters.

Other China-based academics, however, said Beijing would not change its stance on Russia as a result of the incident.

INVESTOR UNCERTAINTY

China is Russia's top trading partner, with Beijing exporting everything from automobiles to smartphones and receiving cheap Russian crude oil that faces sanctions in much of the rest of the world.

But even in the energy sector, which fuelled a 40% jump in trade between Russia and China in the first five months of this year, there are some signs of caution in China.

Top company executives at Chinese state energy companies have routinely said it was too early to comment or sidestepped questions on new investments in Russia.

"Should Russia lose the war or see changes in the domestic leadership, it will create huge uncertainties for Chinese investors," said Michal Meidan, head of China energy research at The Oxford Institute for Energy Studies.

He said the Chinese government also seemed to be exercising caution, pointing out that Beijing had not yet signed a deal for a major new gas pipeline connecting the countries despite a push from Moscow.

While China is vital to Russia's economy, China's trade with the likes of the United States, the European Union and Japan - among the fiercest critics of Moscow's war in Ukraine - dwarfs its dealings with Russia.

"Beijing now has more reasons to have more reservations and to become more transactional in its dealings with Putin's Russia," said Wen-Ti Sung, a political scientist at the Australian National University.

"There's no point making long-term investment in someone who may not credibly survive into the long-term."

Reporting by Martin Quin Pollard and Yew Lun Tian in Beijing and the Shanghai newsroom; Writing by John Geddie; Editing by Alex Richardson

Our Standards: The Thomson Reuters Trust Principles.

https://www.reuters.com/world/wagner-mutiny-exposes-risks-chinas-deep-russian-ties-2023-06-27/

China fears Russia chaos after Wagner uprising

Revolt seen as wake-up call for Beijing as a weakened Putin may trigger further insurgencies



Russian President Vladimir Putin and Chinese President Xi Jinping attend a welcome ceremony at the Kremlin on March 21. (File photo by Reuters) 

AMY CHEW, Contributing writerJune 27, 2023 13:40 JST

 

China's special envoy for Ukraine declined to take part in a wreath-laying ceremony at the Memory Wall of the Fallen Heroes in Kyiv last month -- an act that most international visitors to the country perform.

On his two-day trip to the country, Liu Hui also skipped a visit to Bucha, a city near the capital where the BBC and other media reported more than 1,000 civilians and prisoners of war were killed in a massacre. Instead, he headed straight for talks with top Ukrainian officials and President Volodymyr Zelenskyy.

A senior Ukrainian official involved in the talks told Nikkei Asia that China at that time was already concerned about whether Russian President Vladimir Putin would hold onto his grip on power.

The trip was a "reconnaissance mission" to see how determined Kyiv was to push on with its counteroffensive, as even "a limited success of Ukraine's counteroffensive could trigger destabilization in Russia," said the official, who asked not to be named. "There would be fighting between the military, Chechens, Wagner, FSB [Russia's Federal Security Service] ... complete chaos. This is China's biggest fear."

China's fears were substantiated by the weekend insurrection of the Wagner paramilitary group.

The whole episode of Wagner's mutiny "evidently [has] been unnerving for China," said Andrew Small, senior fellow with the German Marshall Fund's Indo-Pacific Program.

"Internal unrest in Russia would be one of the worst possible scenarios for Beijing, and there will also be anxiety about whether they have a good read on power dynamics in Moscow," said Small, author of "No Limits: The Inside Story of China's War with the West."

For now, Small believes China will continue to provide support to Russia.

"I'm sure that they'll be thinking harder about alternative political scenarios than they were. For now though, I suspect they will be trying to get the best possible read on events rather than rethinking their approach," said Small.



Yevgeny Prigozhin, founder of the Wagner private mercenary group, speaks inside the headquarters of the Russian southern army military command center in this still image taken from a video released June 24.   © Concord/Reuters

Alexander Gabuev, director of the Carnegie Russia Eurasia Center, cautioned against an "early demise of Putin," who has served as either president or prime minister of Russia for more than two decades.

"This [mutiny] is an embarrassing event" for Putin, said Gabuev, who did not see the demise of the president any time soon. "There is no alternative power center in Russia right now and he is still in charge."

Gabuev added that Putin's current weakness gives China greater leverage, as the president is weaker at home and the overall Sino-Russian relationship will be guided by the strategic U.S.-China rivalry.

Economist Mark Savchuk, head of the oversight committee of the National Anti-Corruption Bureau of Ukraine, warned that nuclear-armed Russia could potentially break into five different countries.

"Russia breaking down into five smaller countries is a real possibility right now. This raises the serious question of who will control the nuclear weapons, and who does the West negotiate with in the event that happens," said Savchuk.

Savchuk doubts any new, smaller states will give up their nuclear weapons, as they will have seen what happened to Ukraine after it surrendered its nuclear weapons following the fall of the Soviet Union. Back then, Ukraine gave up the third-largest nuclear arsenal in the world under the 1994 Budapest Memorandum in return for Moscow's security guarantee and respect for its territorial integrity.

The weakened state of Putin is also expected to affect China's potential future plans to take over Taiwan, an island that Beijing views as a breakaway province.

"This will definitely play into any calculation of Beijing to 'retake' Taiwan now that they do not have a strong ally in Russia to back them anymore," said Savchuk.

"The coup attempt showed that Putin's regime is, in fact, even weaker than [what] China had estimated, and Putin's political demise may be much closer than it originally seemed," said the Ukrainian official, who added that the fall of dictators throughout Russia's history has always been chaotic and often bloody.

He said Russia is ruled like an organized criminal gang: When the boss is in full control, everyone bows and pledges loyalty to him. But once there is a sign of weakness, "they will go after the boss."

"Such struggle will inevitably generate instability all across Russia with hundreds of ethnic and religious minorities. China wants Russia to be weakened, as it already is, but stable and predictable," said the source.

https://asia.nikkei.com/Politics/Ukraine-war/China-fears-Russia-chaos-after-Wagner-uprising 

Saturday, June 24, 2023

EU adopts 11th package of sanctions against Russia for its continued illegal war against Ukraine

23 June 2023



The Commission welcomes the Council's adoption of an 11th package of sanctions against Russia. This package will ensure that EU sanctions against Russia are even better enforced and implemented, based on the lessons learned from implementation over the past year.  

The 11th package has these key elements:

 TRADE MEASURES

  • New anti-circumvention tool: this will allow the EU to restrict the sale, supply, transfer or export of specified sanctioned goods and technology to certain third countries whose jurisdictions are considered to be at continued and particularly high risk of circumvention. This new “anti-circumvention” tool will be an exceptional and last resort measure when other individual measures and outreach by the EU to concerned third countries have been insufficient to prevent circumvention.
  • Extension of the transit prohibition for certain sensitive goods (e.g. advanced technology, aviation-related materials) exported from the EU to third countries, via Russia. This will also reduce the risk of circumvention.
  • Addition of 87 new entities to the list of those directly supporting Russia's military and industrial complex in its war of aggression against Ukraine. They are subject to tighter export restrictions for dual-use and advanced technology items. In addition to the Russian and Iranian entities already listed, this now also covers entities registered in China, Uzbekistan, the United Arab Emirates, Syria and Armenia.
  • Restriction on the exports of further 15 technological items found on the battlefield in Ukraine or equipment needed to produce such items. We are working in close coordination with partners and are adding Switzerland to the list of our partner countries.
  • Tightening restrictions on imports of iron and steel goods by requiring importers of sanctioned iron and steel goods that have been processed in a third country to prove that the inputs used do not come from Russia.
  • Prohibition to sell, license, transfer or refer intellectual property rights and trade secrets used in connection with restricted goods to prevent the sanctioned goods from simply being manufactured outside the EU.
  • Extension of the ban on export of luxury cars to all new and second-hand cars above a certain engine size (> 1.900 cm³), and all electric and hybrid vehicles.
  • A full ban on certain types of machinery components.
  • Simplifying the structure of the industrial goods annex, by listing products subject to restrictions in one single section and with broader product definitions, to better identify goods subject to export bans and reduce circumvention of sanctions by misclassification.

TRANSPORT MEASURES

  • A full ban on trucks with Russian trailers and semi-trailers from transporting goods to the EU. This will clamp down on the circumvention of the prohibition for Russian freight road operator to carry goods in the EU.
  • Prohibition to access EU ports for vessels that engage in ship-to-ship transfers suspected to be in breach of the Russian oil import ban or G7 Coalition price cap.
  • Prohibition to access EU ports for vessels if a vessel does not notify the competent authority at least 48 hours in advance about a ship-to-ship transfer occurring within the Exclusive Economic Zone of a Member State or within 12 nautical miles from the baseline of that Member State's coast.
  • Prohibition to access EU ports for vessels which manipulate or turn off their navigation tracking system when transporting Russian oil subject to the oil import ban or G7 price cap.

ENERGY MEASURES

  • End of the possibility to import Russian oil by pipeline for Germany and Poland.
  • Insertions of strict and very targeted derogations to the existing export bans to enable the maintenance of the CPC (Caspian Pipeline Consortium) pipeline which transports Kazakh oil to the EU through Russia.
  • Extension of the exception to the oil price cap for Sakhalin oil for Japan (until 31 March 2024).

ADDITIONAL LISTINGS

  • Over 100 additional individuals and entities subject to asset freezes. This includes senior military officials, decision makers on the war, persons involved in the illegal deportation of Ukrainian children to Russia, judges who took politically motivated decisions against Ukrainian citizens, persons responsible for the looting of cultural heritage, businesspersons, propagandists, as well as Russian IT companies providing critical technology and software to the Russian intelligence, banks operating in the occupied territories and entities working with the Russian armed forces.

ADDITIONAL CLARIFICATIONS

  • Revision of the listing criterion for individuals/entities engaged in circumventing EU sanctions, including those significantly frustrating EU sanctions.
  • Addition of a new listing criterion to allow the designation of persons and entities operating in the Russian IT sector with a license from Federal Security Service of the Russian Federation (FSB) or the Russian Ministry of Industry and Trade.
  • Insertion of a derogation allowing the sale of proprietary rights in a Russian joint venture co-owned with a listed person.
  • Insertion of a derogation allowing the disposal of certain types of securities held with specified listed entities.
  • Insertion of certain clarifications in the provision on information sharing between competent authorities and regarding the respect of the confidentiality of the communications between lawyers and their clients in the context of reporting obligations.
  • Insertion of a derogation allowing the provision of services required for the establishment of a firewall removing the control by a listed person over the assets of an EU entity.
  • Insertion of an exemption for the provision of pilot services in specific circumstances.

OTHER

  • Extension of the media ban to 5 additional channels.
  • Additional provisions on information exchange and reporting.
  • Insertion of a temporary derogation to allow for the provision of prohibited services which are legally required for the divestment of Russian operators from the EU.

EU SANCTIONS

The EU's sanctions have limited Moscow's political and economic options considerably, by causing major financial strain, degrading Russia's industrial and technological capacity. They are fulfilling their three key objectives: degrade Russia's military capability to wage its war of aggression against Ukraine, deprive the Kremlin from the revenues it is financing the war with, and impose costs on Russia's economy. Sanctions are having an impact on all three. Their effects grow over time as the sanctions erode Russia's industrial and tech base.

Additionally, the EU Sanctions Envoy David O'Sullivan's outreach on cooperation to prevent circumvention is ongoing to key third countries. First tangible results are already visible. Systems are being put in place in some countries for monitoring, controlling, and blocking re-exports. Anomalous, sky-rocketing trade figures for some very specific products/countries are hard evidence that Russia is actively attempting to circumvent sanctions. This calls for us to redouble our efforts in tackling circumvention and to ask our neighbours for even closer cooperation. Working with partners, we have also agreed a priority list of sanctioned battlefield goods to which businesses should apply particular due diligence and which third countries must not export to Russia. In addition, within the EU, we have also identified economically critical goods for which businesses and third countries should be especially vigilant.

Background

The EU's sanctions against Russia are proving effective. They are limiting Russia's ability to wage the war against Ukraine, including to manufacture new weapons and repair existing ones, as well as hinder its transport of material.

The geopolitical, economic, and financial implications of Russia's continued war of aggression against Ukraine are clear, as the war has disrupted global commodities markets, especially for agrifood products and energy. The EU continues to ensure that its sanctions do not impact energy and agrifood exports from Russia to third countries.

As guardian of the EU Treaties, the European Commission monitors the enforcement of EU sanctions by EU Member States.

The EU stands united in its solidarity with Ukraine, and will continue to support Ukraine and its people together with its international partners, including through additional political, financial, military and humanitarian support for as long as necessary.

https://neighbourhood-enlargement.ec.europa.eu/news/eu-adopts-11th-package-sanctions-against-russia-its-continued-illegal-war-against-ukraine-2023-06-23_en 

Wagner chief claims to have seized military sites in Rostov as Moscow implements anti-terror measures

Yevgeny Prigozhin says his fighters will march on capital unless military leaders come to him in extraordinary escalation of tensions 


Wagner boss claims to have taken control of Russian military HQ in Rostov – video report

 and agencies

Sat 24 Jun 2023 07.10 BST

Authorities in Moscow have clamped down on security as the head of the Wagner mercenary group claimed to have seized control of all military sites in the city of Rostov-on-Don and demanded that Russia’s military leadership come to him after accusing them of killing his forces.

In videos posted on social media early on Saturday, Yevgeny Prigozhin claimed that he was at the headquarters of the Southern Military District (SMD) in Rostov and demanded that defence minister Sergei Shoigu and Russia’s top general Valery Gerasimov come to the city, 1,000 kilometres south of Moscow. The videos could not be verified.

“We have arrived here, we want to receive the chief of the general staff and Shoigu,” Prigozhin said in one video, seated between two senior Russian generals. “Unless they come, we’ll be here, we’ll blockade the city of Rostov and head for Moscow.”

He said that planes taking part in the Ukraine offensive were taking off as normal from the airfield, which was under Wagner control, and asked Russians not to believe what they were told on state television.

“When they tell you that PMC Wagner interfered with work and that’s why something on the front collapsed … Things on the front collapsed not for this reason,” he said, addressing Russians.

“A huge amount of territory is lost. Soldiers have been killed, three, four times more than what it says in documents shown to the top (leadership).”

Video and images circulating on social media showed armed men on the streets of Rostov, skirting the regional police headquarters in the city on foot, as well as tanks positioned outside the headquarters of the SMD, which is key to Russia’s invasion of Ukraine. It was not possible to verify the footage.

In an extraordinary series of audio clips that he began to release late on Friday, Prigozhin had claimed that a Russian rocket attack had killed scores of his fighters, vowing to take “revenge” and “stop the evil brought by the military leadership of the country”.

In the early hours of Saturday, he then released another voice message in which he claimed that his forces had left Ukraine and were entering Rostov.

“Right now we have crossed all the border points … The border guards greeted us and hugged our fighters. Now we are entering Rostov,” he said. “If anyone gets in our way, we will destroy everything … We extend our hand to everyone. We move forward, we are going all the way!”

The FSB Security Service opened a criminal case for armed mutiny against Prigozhin and said his statements and actions constituted “calls for the start of an armed civil conflict on the territory of the Russian Federation”.

Moscow mayor Sergei Sobyanin said that anti-terrorist measures were being taken in the Russian capital, including additional checks on roads, to reinforce security. Unconfirmed footage appeared to show military vehicles on the streets.

Authorities also said the M4 motorway, connecting Moscow with the south, was closed to traffic at the border with the Voronezh region due to the movement of a military convoy.

The Rostov region’s governor urged residents not to travel to the city centre and to avoid leaving their homes if possible. Vasily Golubev posted on Telegram that law enforcement agencies were doing “everything necessary to ensure the safety of residents in the area”.

Pictures published by local media earlier showed armoured vehicles on the city’s streets. Baza, a Telegram channel linked to Russian security services, reported that helicopters were seen flying over it.

President Vladimir Putin’s spokesperson, Dmitry Peskov, said only that the Russian president was “aware of the situation unfolding around Prigozhin” and that “all necessary measures are being taken.” Putin himself has not made a statement.

General Sergei Surovikin, the deputy commander of Russia’s Ukraine campaign, earlier released a video address ordering the mercenaries to remain loyal to Putin.

“I urge you to stop,” said Surovikin, who was previously understood to be close to Prigozhin. “The enemy is just waiting for the internal political situation to worsen in our country.”

State-run Channel 1 also broke into regular programming early Saturday for a special news bulletin in which the country’s best-known news anchor, Yekaterina Andreyeva, denied Prigozhin’s claims of a Russian military attack against his fighters and repeated the FSB statement.

The FSB urged Wagner fighters “not to make irreparable mistakes, to stop any forceful actions against the Russian people, not to carry out the criminal and treacherous orders of Prigozhin, and to take measures to detain him”.

The string of statements marked an unprecedented escalation of infighting among Russia’s elite, which has pitted Prigozhin against defence minister Sergei Shoigu and senior military commanders.

It was not immediately clear whether Prigozhin’s threats were also directed at the Kremlin.

“This is not a military coup, this is a march of justice. Our actions do not hinder the armed forces in any way,” the Wagner chief said in one message, adding that the “majority of soldiers” were on his side.

The warlord has been arguing with top military officials for months, singling out Shoigu, over battlefield failures.

Earlier on Friday, Prigozhin had accused Moscow’s leadership of lying to the public about the justifications for invading Ukraine, denying Moscow’s claims that Kyiv was planning to launch an offensive on the Russian-controlled territories in eastern Ukraine in February 2022.

The tirade directly contradicted Putin’s rationale for the invasion and implied it was based on lies, in the harshest criticism by any prominent Russian war figure of the decision to attack Ukraine

“The ministry of defence is trying to deceive the public and the president and spin the story that there was insane levels of aggression from the Ukrainian side and that they were going to attack us together with the whole Nato block,” the Wagner head said.

Prigozhin also said Russia’s leadership could have avoided the war by negotiating with Ukraine’s president, Volodymyr Zelenskiy.

“What was the war for? The war needed for Shoigu to receive a hero star … The oligarchic clan that rules Russia needed the war,” he said.

Tatyana Stanovaya, the founder of the political analysis firm R Politik, said that after months of testing the boundaries of his power, Prigozhin appeared to have reached a limit.

“The termination of Prigozhin and Wagner is imminent. The only possibility now is absolute obliteration, with the degree of resistance from the Wagner group being the only variable,” she wrote on Telegram.

She added that while there was no immediate sign that Vladimir Putin’s hold on power was under threat, the dramatic episode will likely damage his standing.

“Many within the elite will now personally fault Putin for letting the situation escalate to such extremes and for his lack of a timely adequate response.”

The Institute for the Study of War, a US-based thinktank, also said the attempt to topple the defence ministry’s leadership was “unlikely to succeed” given Prigozhin was unlikely to win support from Russian military officers and that Putin had recently aligned himself more firmly with the MoD.

https://www.theguardian.com/world/2023/jun/24/wagner-chief-claims-to-have-seized-military-sites-in-rostov-as-moscow-implements-anti-terror-measures