Russia Holds 400 Planes Leased From Foreign Companies: A TuesdayWashington Post article states that Russia is currently refusing to return over 400 airplanes and myriad aircraft parts to western leasing companies. This has led to some countries taking action to ground Russian flights on jets owned by these western leasing companies, which has sparked diplomatic rows between Russia and the grounding countries. As sanctions on Russian continue, such disputes may become more common. (https://www.washingtonpost.com/business/2022/07/12/russia-aircraft-seizure-sri-lanka/_).
Zelensky Expresses Concern over Nord Stream Turbine: On Tuesday, Ukrainian President Volodymyr Zelenskyy released a video criticizing Canada for providing a sanctioned turbine to Russia, calling the return of the turbine an “absolutely unacceptable” for Canada to do. He further noted that “the decision on the exception to sanctions will be perceived in Moscow exclusively as a manifestation of weakness.” Finally, he suggested that this decision will embolden Russia and its noncompliance with international norms in the energy sector. (https://www.ukrinform.net/rubric-polytics/3526943-russia-to-see-sanctions-exemption-as-weakness-zelensky.html).
Russian Legislation on Overtime, Defense Contracts Stalls in Upper House: The lower chamber of the Russian legislature has already passed two bills intended to ease shortages in the Russian defense sector as a result of sanctions: one would obligate Russian companies to carry out defense contracts, while another would require specialized employees to work overtime in sensitive sectors. Both bills are waiting for ratification in the upper house of parliament. The Russian government is also actively recruiting new workers in the defense and construction sectors to rebuild from the war effort. (https://www.cbc.ca/news/world/russia-parliament-laws-military-1.6517083).
Russian Wheat Export Prices Fall: Analysts confirmed on Monday that Russian wheat export prices fell by $17 per ton free on board at the end of last week. The price drop is due to a number of factors, including pressure from the new crop, a weaker ruble, and lower export taxes. However, Russian domestic wheat prices increased as domestic demand rose. (https://www.reuters.com/markets/europe/russian-wheat-sent-lower-by-new-crop-rouble-weakness-2022-07-11/#:~:text=July%2011%20(Reuters)%20%2D%20Russian,the%20July%2DJune%20marketing%20season.)
Ukraine “Disappointed” by Canadian Decision to Send Turbine to Nord Stream Pipeline: In a Sunday statement, the Ukrainian Foreign Ministry said that it was “deeply disappointed” by the Canadian government’s decision to send a sanctioned turbine to Russia to repair the Nord Stream pipeline. The Ministry added the decision sets a “dangerous precedent” and will “strengthen Moscow’s sense of impunity.” It claimed that Russia was artificially reducing gas flows through the Nord Stream pipeline, noting that turbines other than the damaged one were shut off during recent periods of reduced flow of natural gas from Russia to Europe through the pipeline. (https://www.rferl.org/a/canada-sanctions-russia-germany/31936742.html).
Putin, Lukashenko Discuss Response to Kaliningrad Restrictions: On Monday, Russian President Vladimir Putin met with Belarusian President Alexander Lukashenko to discuss a possible joint response to Lithuania’s transit blockade on goods to the Russian enclave of Kaliningrad. Details of these “possible joint steps” were not provided. (https://tass.com/politics/1478239).
Putin Expands Path to Russian Citizenship in Occupied Territories of Ukraine: On Monday, Russian President Vladimir Putin signed a decree offering a simplified path to Russian citizenship for individuals living in occupied territories of Ukraine. The new process allows Ukrainians to get Russian passports without passing a language exam or demonstrating adequate funds to sustain themselves, requirements for other applicants. (https://www.nytimes.com/2022/07/11/world/europe/putin-russian-citizenship-ukrainians.html).
Russian Current Account Balance Strongest Since 1994: According to statements from the Russian Central Bank, Russia’s current account surplus reached $70.1 billion in the second quarter of 2022, its highest mark since at least 1994, even as the international community continues to pile sanctions on the country. The increase is due to skyrocketing energy prices and reduced imports as compared to exports (though both declined during the period). (https://markets.businessinsider.com/news/commodities/russian-oil-gas-moscow-current-account-surplus-record-q2-sanctions-2022-7).
Putin Says New Sanctions Would be Catastrophic for Global Energy Market:During a publicly broadcast meeting on Friday, Russian President Vladimir Putin said that Western nations were making a mistake by imposing further energy sanctions on Russia, noting that these additional restrictions would cause more damage to the countries imposing them than they would to Russia. (https://www.bloomberg.com/news/articles/2022-07-08/putin-says-new-sanctions-would-be-catastrophic-for-energy-market?utm_source=google&utm_medium=bd&cmpId=google).
Russian Foreign Minister Walks Out of G20 Talks, Denies Russia is Causing Food Crisis: At the G20 meeting in Bali, Indonesia on Friday, Turkey and the UN attempted to persuade Russia to allow the export of stockpiles of Ukrainian grain through an independently policed safe naval corridor in the Black Sea. The efforts have been unsuccessful, and Russian Foreign Minister Sergei Lavrov denied that these restrictions were contributing to the broader global grain shortage. Lavrov accused the West of frenzied criticism over Russia’s invasion of Ukraine, and eventually walked out of G20 meetings. (https://www.theguardian.com/world/2022/jul/08/lavrov-leaves-g20-talks-early-denying-russia-causing-food-crisis).
Ukraine Urges Canada Not to Hand Over Gas Turbine to Russia: A Ukrainian energy official told Reuters on Thursday that Ukraine opposes Canada handing over a turbine to Russia’s state-controlled Gazprom, as the move would contravene sanctions on Russia. Gazprom has reduced oil shipments through the Nord Stream I pipeline due to the sanctioned turbine, which German officials fear will cause an energy crisis in the country. (https://www.reuters.com/world/exclusive-ukraine-urges-canada-not-hand-over-gas-turbine-russia-2022-07-07/).
Russia Says it Will Boost Gas Supply to Europe if Canada Provides Turbine: On Friday, Kremlin Spokesman Dmitry Peskov said Russia would increase gas supplies to Europe through the Nord Stream I pipeline if Canada provided a sanctioned turbine. Peskov denied that Russia was using the pipeline as a political statement against sanctions. (https://indianexpress.com/article/world/russia-boost-gas-supply-to-europe-8017365/).
Ukraine’s Top Diplomat Calls on Oceania Countries to Join Sanctions Against Russia: At the Pacific Islands Forum on Friday, Ukraine’s Minister of Foreign Affairs Ukraine Dmytro Kuleba called on the Oceania countries to join the international sanctions against Russia. These restrictions would include limitations on Russian maritime activity in their territorial waters, and restrictions that would prevent Russia from using their jurisdictions to escape sanctions. (https://www.ukrinform.net/rubric-polytics/3524508-fm-kuleba-calls-on-oceanian-countries-to-join-sanctions-against-russian-federation.html).
Russian Oligarch Speaks Out Against Sanctions: Russian billionaire Andrey Melnichenko told Swiss press on Friday that he had been sanctioned only after he found out in press reports. He has since filed lawsuits against both EU and Swiss authorities over the sanctions both jurisdictions imposed on him, calling their official reasoning for the designation “nonsensical.” Melnichenko stated that he does not know Russian President Vladimir Putin at all and had never met him alone. (https://www.businessinsider.com/oligarch-sanction-russian-billionaire-andrey-melnichenko-eurochem-vacation-ukraine-putin-2022-7).
Putin Says Russia is Just Starting in Ukraine and Peace Talks Will Get Harder:In a speech on Thursday, Russian President Vladimir Putin said that Russia had barely gotten started in Ukraine, and that he dared the West to try to defeat them on the battlefield. Putin insisted he was still open to the idea of peace talks, but that they would get more challenging as time progresses. (https://www.reuters.com/world/europe/russias-putin-if-west-wants-beat-us-battlefield-let-them-try-2022-07-07/).
Russia to Take Control of Sakhalin-1 Project: On Thursday, a senior Russian lawmaker said Moscow would be taking control of the Sakhalin-1 oil and gas project, in which ExxonMobil, Japan’s SODECO and India’s ONGC Videsh are partners. Russia took over Sakhalin-2 just a week ago. Russia’s oil output at Sakhalin-1 has plummeted from 220,000 barrels per day to just 10,000 barrels per day due to sanctions. (https://www.reuters.com/business/energy/russia-take-sakhalin-1-project-under-its-control-lawmaker-2022-07-07/).
New Russian Legislation Addresses Sanctions-Fueled Shortages: This week, the Russian Duma has introduced legislation that would address the impact of sanctions on several sectors of the Russian economy. One of the bills will allow the government to obligate private businesses to fulfil state defense contracts, though this is primarily targeted at companies that already serve the Russian defense sector. The second bill increases Russian government control over the workforce, which will compel specialists in critical sectors to work extended hours, though they will receive overtime. In debate on the bills, Russian Deputy Prime Minister Yuri Borisov said, “[t]he burden on the Russian defense-industrial complex has increased significantly… In order to guarantee the supply of arms and ammunition it is necessary to optimize the work of the defense-industrial complex and enterprises working in co-operation with the defense industry.” (https://www.ft.com/content/fe233252-69fa-4259-8b35-a34d8738b968).
McFaul-Yermak Sanctions Plan Already 55% Implemented: According to Andriy Yermak, Head of the Office of the President of Ukraine, the Sanctions Action Plan issued by the McFaul-Yermak Group on strengthening sanctions against the Russian Federation is currently 55% implemented. Russian gold imports are going to be sanctioned, and there are plans for price caps on Russian oil, cutting off Russian banks, and a gas embargo. (https://www.ukrinform.net/rubric-polytics/3523865-mcfaulyermak-sanctions-plan-already-55-implemented.html).
Western Sanctions Hurting Russia’s Plastic Surgery Industry: As supplies of products such as botox and breast implants are largely imported from countries such as the United States and Germany, Russian plastic surgeons are experiencing a shortage of these supplies. Though the Western sanctions do not target the supply of implants directly, the disrupted logistics and other factors are impacting plastic surgery operations. In addition to the shortage of medical equipment, Russian plastic surgeons are reporting that they are seeing fewer clients due to economic uncertainty. (https://www.france24.com/en/live-news/20220707-russia-s-plastic-surgery-sector-feels-pinch-from-western-sanctions).
Russian Government Plane Forced to Take Creative Route to Switzerland: On Wednesday, a Russian government aircraft needed to take a nine-hour route to fly between Moscow and Basel, Switzerland, a trip that normally takes three hours. The trip demonstrates the impact that airspace closures are having on Russian airplane traffic. (https://news.yahoo.com/russian-aircraft-flew-6-additional-195012994.html).
TotalEnergies Quits Russia’s Kharyaga Oil Project: Reuters reported on Wednesday that TotalEnergies has agreed to transfer its remaining stake in Russia’s Kharyaga oil field to the country’s state producer Zarubezhneft, the French company, in its first major divestment in Russia in the wake of Western sanctions. (https://www.reuters.com/business/energy/exclusive-total-quits-russias-kharyaga-oil-project-wake-sanctions-2022-07-06/).
Russia Shuts Down Terminal after Kazakhstan Offers to Send More Oil to the EU: According to press reports, a Russian court has temporarily shut down the Caspian Pipeline Consortium’s (CPC) oil terminal at Novorossiysk over “environmental concerns” in a closure that will last 30 days. While closures of the Novorossiysk terminal are frequent, the Russian court’s decision comes two days after a telephone conversation between EU officials and Kazakh officials, where Kazakhstan offered to send more oil to the EU. Kazakhstan annually supplies 67 million tons of oil through Russia to Europe. (https://www.euractiv.com/section/central-asia/news/russia-shuts-down-terminal-after-kazakhstan-offers-to-send-more-oil-to-the-eu/).
Russia to Begin Domestic Lithium Mining: On Wednesday, Resource World reported that Vladislav Demidov, Deputy Director of the Department of Metallurgy and Materials of the Russian Ministry of Industry and Trade, confirmed that Russia was looking to explore domestic lithium mining projects. The country has significant domestic lithium reserves, but has not explored them as of yet, instead relying on cheap imports. As other countries impose sanctions, sourcing these imports has gotten more difficult. (https://resourceworld.com/russia-ready-to-resume-domestic-lithium-mining-as-sanctions-bite/).
President Zelenskyy Claims Russia is Circumventing Sanctions: In a joint press appearance with Irish Prime Minister Micheal Martin on Wednesday, Ukrainian President Volodymyr Zelenskyy was asked what it would take to get the war in Ukraine to end. In response, he said “They [the consequences of sanctions] will definitely happen, but they [the Russians] do not feel them, they are circumventing them, because, unfortunately, there are still some allies who help the Russian Federation or their [Russian] business.” (https://www.ukrinform.net/rubric-ato/3523450-russia-has-not-even-begun-to-think-about-peace-trying-to-circumvent-sanctions-zelensky.html).
Ukraine War Impacts Major Russian Tech Startup: The Washington Post reported on Wednesday that Yandex, a major tech startup known for search and ride-hailing functions, has dropped in value from $31 billion before the war in Ukraine to under $7 billion today as western investors left Russia. The company used to employ 18,000 people, as well. While the company is not facing insolvency, its sudden change of fortune serves as a cautionary tale for the Russian economy and investment climate. (https://www.nytimes.com/2022/07/06/world/europe/ukraine-russia-yandex-google.html).
Putin Dodges Worst of Economic Pain as Oil Eases Sanctions Hit: Boosted by rising oil production, Russia appears to be on track for a much shallower recession that originally anticipated. Economists from JPMorgan and other big banks are slashing their outlooks for the drop in output to as little as 3.5 percent from seven percent. While retail sales are down 10 percent, imports, which plunged 40 percent in April, have showed signs of steadying. (https://www.bloomberg.com/news/articles/2022-07-06/russia-dodges-worst-recession-fears-as-oil-eases-sanctions-pain).
Russian Politician Threatens to Retaliate Against US Sanctions by Reclaiming Alaska: In a warning to the US, Vyacheslav Volodin, a longtime aide to Russian President Vladimir Putin, warned Wednesday that Washington should remember that Alaska was part of Russia when it freezes Russian assets. Russia colonized Alaska and established several settlements there until the U.S. purchased it from Russia in 1867 for $7.2 million. (https://www.adn.com/nation-world/2022/07/06/russian-politician-threatens-to-retaliate-against-us-sanctions-by-reclaiming-alaska/).
Russian Gold Producer Polymetal Abandons Russian Facility: Before the recent conflicts, Polymetal, one of Russia’s largest gold producers, planned to build a $730 million plant on the outskirts of the Sovetsky Gan, but Polymetal announced in April that it had “indefinitely suspended” development, continuing a trend of delaying plants in eastern Russia. Financial sector and technology sanctions have made production more difficult, rendering the future of economically depressed cities like Sovetsky Gan more uncertain. (https://www.rferl.org/a/russia-far-east-investment-sanctions/31932039.html).
Strong Ruble Could Hurt Russian Businesses: As the ruble strengthens to levels not seen in seven years, Russia’s Minister of Economic Development Maxim Reshetnikov warned that the country’s businesses could suffer if the trends persist. Reshetnikov was quoted saying, “If such a situation will last for several more months, I think many enterprises may come to the idea not only curtailing investment processes, but also of the need to adjust current production plans and reduce production volumes.” (https://www.ctvnews.ca/business/strong-ruble-could-hurt-russian-businesses-official-warns-1.5967750).
Ukrainian Railways Raises Tariffs for Freight Transportation: The Ministry of Infrastructure of Ukraine agreed with Ukrainian Railways’ proposal to increase its tariff on cargo transportation by 70 percent. Due to the tariff increase, the state railroad company plans to generate an additional UAH 11B of revenue by the end of 2022. The extra income will be able to cover some of the estimated costs of repairing war damage that exceed UAH 100B ($3.1B). (https://ubn.news/ukrainian-railways-raises-tariffs-for-freight-transportation-by-70/).
Russia Threatens Retaliation against Norway over Access to Arctic Islands: Russia stated that restrictions imposed by Norway were blocking goods for Russian-populated settlements on the Arctic archipelago of Svalbard, and threatened unspecified “retaliatory measures” unless Oslo resolves the issue. The Russian foreign ministry said that it had summoned Norway’s chargé d’affaires to protest against the restrictions, which it said have disrupted the delivery of critical supplies, including food and medical equipment. (https://www.reuters.com/world/europe/russia-threatens-retaliation-against-norway-over-access-arctic-islands-2022-06-29/).
Russia to Respond to Bulgaria’s Expulsion of Diplomats: The Russian Embassy to Sofia said on Wednesday that Bulgaria’s decision to expel 70 Russian diplomatic staff was a hostile action which Moscow would respond accordingly. Ambassador Eleonora Mitrofanova stated, “The government of the Russian Federation is reserving its right of reciprocal, possibly asymmetric response to such hostile actions.” (https://www.reuters.com/world/europe/russia-will-respond-bulgarias-hostile-expulsion-diplomats-2022-06-29/).
Russia Ready to Export Tens of Millions of Tons of Grain: Russia is not preventing the export of grain from Ukraine and is ready to export tens of millions of tons of grain if the West stops blocking food supplies, according to Russian Foreign Ministry Spokeswoman Maria Zakharova. According to various estimates, 20 to 25 million tons of wheat were blocked from being exported in Ukraine. (https://tass.com/economy/1473173).
Anti-Russian Sanctions Spur Global Food Crisis, According to Russian Ambassador: Russian Ambassador to the US Anatoly Antonov stated, “As to the food security, it was the wave of anti-Russian restrictions, imposed by the US-led collective West, that spurred the global food crisis. Its root causes are incompetent macroeconomic steps taken by a number of developed nations, climate change and the COVID-19 pandemic.” (https://tass.com/economy/1472973).
Russian-Backed Government to Hold Referendum in Southern Ukraine: A senior Russian-backed official installed to run the southern region of Kherson in Ukraine said the authorities there are preparing for a referendum to join the Russian Federation. Kirill Stremousov, deputy head of the military-civilian administration of the Kherson region, stated, “It [Kherson] will become a full-fledged entity that can be like one single state in which the peoples of Russia live like one family.” About 45 percent of the pre-invasion population has left the region, according to Ukrainian officials. (https://edition.cnn.com/europe/live-news/russia-ukraine-war-news-06-29-22/h_63f67c64cf24134b526e03df6106f28b).
Ukrainian President Asks for Russia to be Removed as Permanent Member of UN Security Council: President Zelenskyy addressed the UN Security Council listing all the Russian attacks on Ukraine within the past week and noting that the UN does not yet have a definition for the term “terrorist state.” He finished this speech by asking the UNSC to expel Russia from the body, stating, “Russia does not have the right to remain in the UNSC.” (https://edition.cnn.com/europe/live-news/russia-ukraine-war-news-06-28-22/h_0532d63656eaab554e6cd95ce484e17e).
Ukrainian President Urges NATO to Admit his Country to the Alliance: President Volodymyr Zelenskyy addressed the NATO summit via video link stating, “We need security guarantees, and you need to find a place for Ukraine in the common security space.” The President added, “Has Ukraine not paid enough (to join NATO)?” (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-06-29-22/h_052a7e072e9d57f8c3dc87a166790b9e).
Ukrainian President Accepts Invitation to Attend G20 Summit: Ukrainian President Volodymyr Zelenskyy accepted his personal invitation to attend the G20 summit in Bali in November, while his Indonesian counterpart Joko Widodo was in Kyiv. Zelensky went to say that Widodo’s visit was important to help stop the war, stating, “I consider our talks today to be an important step for strengthening global anti-war coalition of all the countries that can bring back and guarantee stability to the world.” (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-06-29-22/h_df2c62380fcb2117a8ff48df3e2e3ed7).
Russian Industry Faces Crisis as IT Providers Pull Out: International sanctions and tensions over the war have forced industrial manufacturers to wind down operations in what was once one of their biggest markets. According to the Russian Steel Association, the steel industry alone has invested 3.2 trillion rubles ($59 billion) in the last two decades to rebuild capacity after its post-Soviet decline, with a majority spent on equipment supplied by foreign companies to increase the sector’s efficiency. Industrial and agricultural plants, businesses and government services are now potentially vulnerable to security breaches and viruses due to lack of replacement parts for software crashes. (https://finance.yahoo.com/news/russian-industry-faces-code-crisis-040000251.html).
Russia Includes Biden’s Wife and Daughter to U.S. Sanctions List: Russia expanded its US sanctions list to include President Biden’s wife and daughter, as well as other prominent figures. Russia’s foreign ministry said this step was taken “as a response to the ever-expanding U.S. sanctions against Russian political and public figures.” (https://www.reuters.com/world/us/russia-expands-us-sanctions-list-include-bidens-wife-daughter-2022-06-28/).
Russian Oligarch Deripaska Casts Doubt on Russian Victory in War: Oleg Deripaska stated that no winner would emerge from Moscow’s invasion of Ukraine. This statement was a rare public questioning of the Kremlin’s war rationale. Deripaska also stated, “I think that destroying Ukraine would be a colossal mistake, including for us.” (https://www.usnews.com/news/world/articles/2022-06-28/tycoon-deripaska-casts-doubt-on-russia-quest-for-victory-in-ukraine).
Russia Fines United Parcel Service Over Data Storage: A Moscow court fined United Parcel Service (UPS) 1 million rubles ($18,900) for an alleged refusal to storage the data of Russian users on Russian territory, according to TASS news agency. UPS joined video streaming service Twitch, social network Pinterest, and holiday rental company Airbnb as the latest companies to be fined by Russia in their clash against Big Tech. (https://www.reuters.com/business/russia-fines-united-parcel-service-over-data-storage-tass-2022-06-28/).
Russian Duma Passes Bill Removing VAT on Digital Assets: On Tuesday, the Russian Duma passed a bill that would exempt digital asset sales from value added taxes in Russia. The bill also establishes income tax rates of 13 percent for Russian exchanges on the first 5 million rubles (currently about US$93,000) of their annual tax base, 15 percent on amounts above that limit and 15 percent across the board for foreign exchange operators; the current Russian company tax rate is 20 percent. The move is likely to attract digital asset exchanges and users as the country feels the impact of western sanctions. (https://cointelegraph.com/news/russian-duma-passes-bill-to-remove-vat-lower-income-tax-rates-on-digital-asset-sales).
Russia Misses Key Bond Payment: Late Sunday night, Russia missed the deadline for an interest payment of an estimated $100 million dollars on its foreign currency sovereign debt. Bondholders still need to make a formal declaration of default, and Russia has preemptively declared any default declaration as “absolutely illegal.” (https://www.nytimes.com/live/2022/06/27/business/economy-news-inflation-stocks).
Russia Sanctions 43 Additional Canadians: On Monday, Russia issued sanctions on 43 additional Canadian citizens, barring them from entering the country. The sanctioned individuals include the chairperson of Canada’s governing Liberal Party, Suzanne Cowan, and the former governor of the Bank of England and Bank of Canada, Mark Carney. (https://www.reuters.com/world/russia-bars-entry-43-canadians-sanctions-response-2022-06-27/).
Zelenskyy Calls for Increased Sanctions in G7 Address: Speaking via video link to the G7 summit in Germany, Ukrainian President Volodymyr Zelenskyy called on the assembled world leaders to increase sanctions on Russia. His proposed limitations included a “forcible[] limit[] [on] the price of Russian oil exported,” designating Russia as a state sponsor of terrorism, and creating a global mechanism to seize and confiscate Russian assets. (https://www.president.gov.ua/en/news/volodimir-zelenskij-pid-chas-onlajn-uchasti-v-samiti-lideriv-76073).
Russia’s President Vladimir Putin To Make First Foreign Visit Since Ukraine War Commenced: Russian President Vladimir Putin will visit Tajikistan and Turkmenistan and then meet Indonesian President Joko Widodo for talks in Moscow. It is his first foreign visit since the start of the conflict in Ukraine. (https://www.voanews.com/a/russia-s-putin-to-make-first-foreign-trip-since-launching-ukraine-war-/6633827.html).
Russia Plans To Hit Japan With Countermeasures: On Monday, in response to fresh Japanese sanctions, Russia promised to hit Japan with countermeasures. Sanctions are “short-sighted and harm Japan itself, especially the business community“, Ambassador Mikhail Galuzin said in a statement posted on the Russian embassy’s Facebook page. (https://www.channelnewsasia.com/world/russia-japan-sanctions-ukraine-invasion-2772961).
Putin To Participate in G20 Conference: Presidential Aide Yury Ushakov announced that Putin has accepted an invitation from Indonesia to participate in a summit meeting of the Group of 20. (https://tass.com/politics/1472071).
EU Sanctions Should Include Russian Gas Embargo, Says Ukrainian Official: The latest missile strikes by Russia on Kyiv show that international sanctions should be more aggressive and include an EU embargo on Russian gas, the Ukrainian president’s chief of staff said on Sunday. (https://www.reuters.com/world/europe/eu-sanctions-should-include-russian-gas-embargo-says-ukraine-official-2022-06-26/).
Putin Denies Blockade on Grain: On Friday, Russian President Vladimir Putin denied that Moscow is stopping Ukraine from exporting grain: “Russia is not preventing the export of Ukrainian grain from the country’s territory and is ready to ensure the free passage of cargo ships with grain into international waters.” (https://www.themoscowtimes.com/2022/06/24/russia-is-not-preventing-ukrainian-grain-shipments-putin-says-a78104).
Russia to Resume Art Exhibitions in “Friendly” Countries in 2023: On Friday, the Russian Culture Ministry announced that it would resume cooperation in art exhibitions with “friendly” countries beginning in 2023. The Ministry suspended the practice in March after the start of the conflict in Ukraine, and the Hermitage museum independently introduced a yearlong moratorium on exhibitions in the U.S. and Europe. (https://tass.com/society/1471097).
Russia Suspends Membership in the Finland-Russia Society: On Friday, the Russian Foreign Ministry announced that it had decided to terminate cooperation with the Finland-Russia Society, a Finnish NGO that promotes bilateral relations between the countries. The Ministry said that the decision was due to Finland’s “outspoken” opposition to Russia’s involvement in the conflict in Ukraine. (https://tass.com/society/1470819).
Ukraine Requires Entry Visa for Russian Citizens: Ukraine announced a new visa requirement for Russian citizens seeking to enter Ukraine that will take effect July 1, 2022. Ukrainian President Volodymyr Zelenskyy said the move was motivated by “unprecedented threats to the national security, sovereignty and territorial integrity.” (https://apnews.com/article/russia-ukraine-zelenskyy-travel-government-and-politics-b056acb50f082dd5f75ff416701682a0).
Sberbank Develops Alternative to SWIFT: On Friday, the Chief Executive of Sberbank, Herman Gref, announced that it is building an alternative to SWIFT, the international messaging network for cross-border payments, after it was banned from the system by international sanctions. Gref expects Sberbank to complete the system within a year. (https://www.law360.com/financial-services-uk/articles/1503885/sberbank-developing-swift-alternative-after-ban).
Putin Claims West Hit Harder by Sanctions than Russia: Speaking at the St. Petersburg International Economic Forum, Russian President Vladimir Putin said that sanctions on Russia had backfired, as they have not stopped Russia’s war in Ukraine, but have harmed Western economies and contributed to a global food security crisis. He did note that the Russian economy had been damaged by sanctions, as companies were leaving the country. (https://www.wsj.com/articles/putin-blasts-the-west-says-sanctions-on-russia-over-ukraine-are-backfiring-11655493405).
Western Sanctions’ Impact of Russian Flights: On Friday, The New York Times published an interactive piece highlighting the impact of sanctions on flights predominately used by the Russian elite. The graphic demonstrates that Russian planes avoided EU airspace after the invasion of Ukraine, and increased flights to the Middle East and Central Asia. (https://www.nytimes.com/interactive/2022/06/17/world/europe/russia-private-jets.html).
Russia Has “Nothing Against” Ukraine Joining the EU: On Friday, Russian President Vladimir Putin stated that Russia is not against Ukraine joining the EU as “the EU is not a military-political bloc, unlike NATO.” (https://edition.cnn.com/europe/live-news/russia-ukraine-war-news-06-17-22/h_c3cc8deffcc6129f944ff87936ce65e4).
Russia Has “Nothing Against” Ukraine Joining the EU: On Friday, Russian President Vladimir Putin stated that Russia is not against Ukraine joining the EU as “the EU is not a military-political bloc, unlike NATO.” (https://edition.cnn.com/europe/live-news/russia-ukraine-war-news-06-17-22/h_c3cc8deffcc6129f944ff87936ce65e4).
Putin Asks Russian Elites to Stay in Russia: In his remarks at the St. Petersburg International Economic Forum, Russian President Putin urged Russian elites to remain in Russia and invest, noting “[r]eal success is possible only when you tie your future and your children’s future to the motherland.” (https://edition.cnn.com/europe/live-news/russia-ukraine-war-news-06-17-22/h_37fe487b3aeed8cfee1f1139623ba2c8).
Russia Imposes Sanctions on 121 Australians for “Russophobic Agenda”: Russia announced new sanctions on 121 Australian individuals, including prominent business people, reporters, and defense officials. (https://www.news.com.au/world/russia-hits-121-aussies-with-sanctions-for-russophobic-agenda/news-story/14bea9414c692f0d5fe812256c468181).
Russia Nearing Default Status: On Thursday, Bloomberg reported that holders of approximately $100 million in Russian debt have not yet received payment on their dollar and Euro-denominated debt. Russia has until June 26 to pay the debt; Finance Minister Anton Siluanov said at the St. Petersburg International Economic Forum that the Kremlin still intends to deliver dollar and euro payments to bondholders, though he did not elaborate on a timeline. (https://finance.yahoo.com/news/russia-struggling-100-million-debt-132637283.html).
Russian Banks Struggling to Find Lawyers in US due to Sanctions: Bloomberg reported that Russian banks are struggling to find legal representation in the United States, as the banks struggle to find US financial institutions that will accept payment from Russia. As an example, a federal magistrate judge announced a stay in a pending case against VTB Bank until June 23, as VTB Bank negotiates with its counsel to find an acceptable payment program. (https://news.bloomberglaw.com/business-and-practice/vtb-bank-lawyers-cant-get-paid-because-of-russia-sanctions).
Sanctions Hinder Sovcomflot’s Ability to Pay Debt: Sovcomflot announced Thursday that its next payment on $498 million in debt has been “hindered” by EU and UK. Sovcomflot is pursuing a modification in payment terms that would allow it to meet its debt obligations. (https://tass.com/economy/1466203).
Sanctions Fail to Bring Russia to Negotiating Table: The Wall Street Journal reported on Thursday that allied sanctions on Russia have thus far failed to encourage negotiations to bring about a ceasefire in Ukraine. Analysts interviewed for the piece cited Russia’s current account surplus and high commodity prices as reasons why Russia has been able to maintain a somewhat stable economy despite the restrictions. In addition, Western governments are hesitant to impose sanctions on Russian energy products, which allows the Russian economy to persist, according to these analysts. (https://www.wsj.com/articles/sanctions-so-far-fail-to-dent-russias-war-effort-11655383912).
Putin Calls for Support for Domestic Car Industry: On Thursday, Russian President Vladimir Putin met with representatives from the Russian auto industry; during the meeting, he called on the government to “tell us in more detail what prompt measures are being proposed to support the auto industry and stabilize the domestic market.” The Russian automotive industry has been hard hit by sanctions. (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-06-16-22/h_0c698d6929c93520dbf77a104fb1752d).
Russian Truck Maker Sees Reduced Export Business: Russian truck maker Kamaz reported on Thursday that, while it has not lost its customer base, “[p]ayments are the main issue when it comes to exports. Our partners have difficulty understanding how they can pay us. And we also have difficulty understanding.” As a result of these difficulties, it has reduced its export expectations and revenue forecasts for 2022. (https://www.reuters.com/business/autos-transportation/russian-truckmaker-kamaz-struggles-settle-payments-due-sanctions-ceo-says-2022-06-16/).
Russia Uses International North South Transport Corridor to Send Goods to India Despite Sanctions: Russia has begun sending goods to India via the International North South Transport Corridor (INSTC), a multimodal, cross-border freight network that links Russia to Central Asia, Iran and India, involving sea, rail and road links, to overcome sanctions-related challenges in doing business with traditional trade partners. (https://theloadstar.com/russia-uses-instc-corridor-to-beat-sanctions-and-drive-trade-with-iran-and-india/).
Central Bank Governor Confirms Russia Will Continue to Circulate Dollars and Euros: On the sidelines of the Saint Petersburg Economic Forum, Russian Central Bank Governor Elvira Nabiullina stated that Russia will continue to circulate dollars and Euros, though the Russian economy had been “pursuing the policy of de-dollarization… for many years.” (https://tass.com/economy/1465841).
Russian Official States That West “Shot Itself In The head” With Sanctions: On Thursday, Russia Foreign Ministry spokeswoman Maria Zakharova accused the West of attempting to sow discord with China and destroying their relationship with Russia, specifically pointing to the loss in Russian oil. (https://www.euractiv.com/section/energy-environment/news/russia-says-west-shot-itself-in-the-head-with-energy-sanctions/).
Russia Announces Expanded Pickup of Mir Cards: At the Saint Petersburg Economic Forum, First Deputy Chairperson of the Bank of Russia Olga Skorobogatova stated that four more countries had agreed to adopt the Mir Card, a payment card issued by the Bank of Russia. She did not mention the countries; Turkey, Vietnam, Armenia, Uzbekistan, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, South Ossetia and Abkhazia currently accept Mir Cards (https://tass.com/economy/1466295).
Oil Production in Russia Grew in May Despite Sanctions: Despite an initial post-invasion reduction in production of crude oil and related liquids, in May, Russian output of crude oil and related liquids rose marginally, by about 130,000 barrels per day from April to 10.55 million barrels a day, according to the International Energy Agency. (https://www.nytimes.com/2022/06/15/business/russia-oil-sanctions.html).
Ukrainian Official Describes Russia as “More Resilient than Expected” with Regard to Sanctions: In an interview with Politico on Wednesday, Ukrainian Deputy Economy Minister Taras Kachka stated, “Russia seems to be more resilient to sanctions than we estimated at the beginning… Initially, there was an assumption that impacts [of] sanctions will be more and more visible.” He cited commodity sales as the reason for this resilience, and added that the West should use this as an opportunity to further restrict Russian oil and gas imports, as well as other commodities, like steel. (https://www.politico.eu/article/ukraine-says-russia-more-resilient-to-sanctions-than-expected/).
Ukrainian President Volodymyr Zelenskyy Calls for More Sanctions on Russia in Speech to Czech Parliament: In a video speech to both houses of the Czech parliament on Wednesday, Zelenskyy called for a seventh round of EU sanctions on Russia. (https://www.reuters.com/world/europe/ukraine-says-russia-eyes-vast-area-warsaw-sofia-2022-06-15/).
Ukrainian Officials Accuse Russia of Using Georgia to Bypass Sanctions: In a speech in Washington, DC, Ukraine’s Chief negotiator with Russia accused Russia of using “Georgian banks, Georgian financial system, Georgian companies and so on,” to evade sanctions imposed on Russia. (https://www.usnews.com/news/world/articles/2022-06-15/russians-using-georgia-to-bypass-sanctions-say-ukrainian-lawmakers).
Rosneft Examining Dubai-Based Oil Trading Unit: Bloomberg reported on Wednesday that executives from Rosneft have met with advisors in Dubai in the last month, possibly to discuss moving oil trading operations there, according to anonymous officials familiar with the matter. This continues a trend of wealthy Russians and other oil trading companies, like Litasco, moving to the UAE in response to sanctions in other jurisdictions. (https://www.bloomberg.com/news/articles/2022-06-15/rosneft-is-said-to-examine-idea-of-dubai-based-oil-trading-unit#xj4y7vzkg).
St. Petersburg International Economic Forum Continues Despite Western Sanctions: Despite the impacts of sanctions and resulting economic difficulties, and significantly lower attendance, the event will continue, including appearances by eastern Ukrainian rebels, Belarusian leader Alexander Lukashenko, members of Afghanistan’s Taliban leadership, and Chinese President Xi. (https://abcnews.go.com/International/wireStory/russias-economic-forum-smaller-moves-forward-85403908 / https://www.themoscowtimes.com/2022/06/15/taliban-separatists-and-lukashenko-russia-kicks-off-diminished-st-petersburg-forum-a77985).
Russia Bans 29 British Journalists and 20 Defence Figures: On June 14, 2022, Russia’s foreign ministry announced that it was banning 29 journalists and members of British media organisations such as the BBC, Sky News, the Guardian and The Times from entering Russia. Another 20 British figures who Moscow said were linked to the defence industry were also banned from entering Russia. (https://www.reuters.com/world/uk/russia-bans-29-british-journalists-entering-2022-06-14/).
Moscow Exchange Suspends Swiss Franc Trading After New Sanctions: The Moscow Exchange said Tuesday that it would suspend trading of the Swiss franc against the ruble and the U.S. Dollar after Switzerland adopted new EU sanctions against Russia. In a statement, the Exchange noted that, “The suspension of operations is due to difficulties conducting settlements in Swiss francs faced by market participants and the financial sector in connection with the restrictive measures imposed by Switzerland on June 10.” (https://www.reuters.com/markets/currencies/moscow-exchange-suspends-swiss-franc-trading-after-new-sanctions-2022-06-14/).
Russia Sanctions Leave Nord Stream Turbine Stranded Abroad: Supply chain disruptions brought on by Western sanctions on Russia have left equipment key for the functioning of the Nord Stream gas pipeline stuck abroad. The Siemens Energy AG turbine is unable to return to Germany from Canada, where it had been sent for maintenance. A second turbine also due for maintenance now cannot be sent overseas as well. The subsea Nord Stream gas link, with a nameplate capacity of 55 billion cubic meters per year, is the key route for Russian gas to Germany. Flows via the pipeline will be curbed from its maximum capacity due to the technical issues at the Baltic Portovaya compressor station, according to Gazprom. (https://www.bloomberg.com/news/articles/2022-06-14/russian-sanctions-leave-nord-stream-turbine-stranded-in-canada?srnd=premium).
Ukrainian Grain Exports Find New Shipping Routes: After spending months searching for new shipping routes for its grain exports, an initial Ukrainian corn cargo was sent via Romania to Spain. The vessel arrived Monday, carrying 18,000 tons of corn from Ukraine. This new transit route through the Baltic Sea, it is hoped, will ease the massive backlog of European and global orders for Ukrainian grain and feed supplies. (https://www.bloomberg.com/news/articles/2022-06-14/ukraine-grain-exporters-carve-out-new-route-via-baltic-sea).
Russia Hides Budget Spending: Bloomberg reported Tuesday that the Russian government has said that it will no longer disclose monthly figures breaking down how much the government spent on various budget items, including defense. The Finance Ministry cited the need to “minimize the risk of the imposition of additional sanctions” for excluding the expenditure details. (https://www.bloomberg.com/news/articles/2022-06-14/russia-hides-budget-spending-but-shows-how-ruble-hit-oil-revenue?srnd=premium).
Ukraine President Addresses Singapore Shangri-La Dialogue: At a gathering of 575 delegates from 40 countries in Singapore on Saturday, Ukrainian President Zelenskyy addressed attendees, identifying the importance of international law, and warning that “Today’s example of Ukraine is the example for the whole world,” in what has been interpreted as a nod towards China. Other attendees, like Japanese Prime Minister Kishida, noted that “Ukraine today may be East Asia tomorrow.” (https://www.washingtonpost.com/world/2022/06/14/shangri-la-dialogue-asia-china-ukraine-zelensky-singapore-taiwan-japan/).
Ukraine State Energy Company Keeps Russian Gas Flowing Despite War: The Wall Street Journal reported Tuesday that Ukraine’s NJSC Natfogaz and Russia’s Gazprom PJSC have continued their longstanding partnership, which is responsible for routing Russian gas to Europe, even as the war between the two countries rages on. (https://www.wsj.com/articles/ukraines-state-energy-company-keeps-russian-gas-flowing-as-war-rages-11655199183).
Sanctions Force Russian Automaker to Forgo Airbags: Avtovaz, producer of the popular Lada brand automobile in Russia, has resumed production of its vehicles after the Russian government slashed safety regulations in response to supply chain shortages caused by sanctions. The new version of the Lada Granta will no longer feature airbags, an anti-lock braking system, electronic stability control, or emergency retraction locks on seat belts. It also fails the emissions standards adopted by most of Russia’s neighbors. (https://www.nbcnews.com/news/world/sanctions-force-russia-produce-popular-car-safety-features-even-kremli-rcna32863).
Ukraine Halts Exports of Oil and Gas: On Monday, Ukraine announced the suspension of exports of domestically-produced gas, coal, and fuel oil in response to Russia’s invasion. (https://www.reuters.com/business/energy/kyiv-suspends-exports-ukrainian-gas-coal-fuel-oil-2022-06-13/).
Sanctions Protect Exiled Russian Bankers: On Sunday, The Wall Street Journal profiled several Russian bankers in exile in countries that have imposed sanctions. The Russian government previously launched lawsuits against these bankers, who have fallen out of favor with current Russian political leaders, in their countries in order to claw back funds allegedly held illegally, but these cases have recently been thrown out, as the award in favor of the Russian government would violate sanctions regimes in these countries. (https://www.wsj.com/articles/russia-is-after-these-ex-bankers-assets-but-sanctions-could-bail-them-out-11654976143).
Future of Ukraine’s Interest Rate Remains Uncertain: Ukraine’s central bank noted that the decision to raise or lower the current interest rate of 25% is based on the war with Russia. Some Ukrainian officials support the tightening of monetary policy while others believe cutting interest rates will be better for the Ukrainian economy. (https://www.reuters.com/world/europe/ukraines-central-bank-says-interest-rate-decisions-depend-war-2022-06-13/).
Wikipedia Appeals Russian Court Decision: On Monday, Wikipedia filed an appeal to the Moscow court’s decision which requires that Wikipedia remove information related to Russia’s war in Ukraine. The court fined Wikipedia five million rubles ($88,000) for failure to remove “disinformation” on the invasion. (https://www.reuters.com/world/europe/wikipedia-fights-russian-order-remove-ukraine-war-information-2022-06-13/).
Russians Moving Ukrainian Historical Artifacts Back to Russia: On Sunday, The Guardian reported that archeological teams in the US have identified a “specialist gang” of Russians focused on moving historical artifacts from Ukraine to Russia. The gang is committing targeted thefts and smuggling operations, focused on Scythian gold artifacts. (https://www.theguardian.com/world/2022/jun/12/specialist-gang-targeting-ukrainian-treasures-for-removal-to-russia).
Profile of Russian Oligarch: On Monday, Forbes published a piece profiling Russian oligarch Eduard Khudainatov, an oligarch with ties to Rosneft and Russian President Vladimir Putin who was often used as a “clean, unsanctioned straw owner” for various yachts, including the Amadea and Scheherazade. However, the EU recently imposed sanctions on him, and the Department of Justice seized both yachts under sanctions authority. (https://www.forbes.com/sites/giacomotognini/2022/06/13/meet-the-russian-billionaire-whos-the-proxy-owner-of-vladimir-putin-500-million-yacht-eduard-khudainatov/?sh=63b3ab91a53b).
Russia’s Record-High Revenue from Gas and Oil Exports: A report by the Center for Research on Energy and Clean Air found that Russia earned 93 billion euros in revenue from exports of gas, oil, and coal in the first 100 days of the invasion in Ukraine. (https://www.nytimes.com/2022/06/13/climate/russia-oil-gas-record-revenue.html).
Zelenskyy Calls for Seventh Sanctions Package: During European Commission President Ursula Von Der Leyen’s visit to Kyiv on Saturday, Ukrainian President Volodymyr Zelenskyy called on the Union to implement a seventh sanctions package. He stated that this package should include “companies that are helping the Russian state in one way or another – whether in the military sphere or in suppressing democracy” and added that the EU should “completely eliminate Russian energy resources.” (https://news.yahoo.com/zelenskyy-asks-eu-seventh-package-133254210.html).
Russia Issuing Passports in Occupied Ukrainian Territories: Following a Presidential decree in May permitting the procedure, Russian authorities in occupied areas in eastern and southern Ukraine are issuing Russian passports to residents beginning on Saturday. Ukrainian authorities have warned of the impact of such a move, saying it would be “a flagrant violation” of the nation’s sovereignty and territorial integrity. (https://www.nytimes.com/live/2022/06/11/world/russia-ukraine-war-news/moscow-issues-passports-in-parts-of-occupied-ukraine-pressing-on-with-russification?smid=url-share).
Russian Central Bank Cuts Interest Rates: On Friday, the Russian Central Bank lowered its key interest rate by 1.5 percentage points to 9.5 percent, which is back to prewar levels. Rates had previously been as high as 20 percent after the invasion of Ukraine. (https://apnews.com/article/russia-ukraine-european-union-economy-government-and-politics-1a818715a18aaae679a073e9d07b2f86).
Russia’s State-Owned RNRC to Reinsure Russian Oil Shipments: Following the introduction of sanctions from the West on Russian-owned vessels, state-controlled Russian National Reinsurance Company (RNRC) is now the main reinsurer of Russian ships, including Sovcomflot’s fleet, according to Reuters. (https://uk.finance.yahoo.com/news/exclusive-russias-state-owned-rnrc-134708432.html).
Russian Central Bank Chief Discusses Default, Secondary Sanctions in Press Conference: Speaking to the press after the Russian Central Bank’s board meeting on Friday, Central Bank Chief Elvira Nabiullina stated that Russia was able to pay its debts, saying it has ample reserves to pay sovereign obligations but is experiencing “technical challenges” in repaying sovereign debt in foreign currency. On secondary sanctions, she said that the risk remained, adding, “[t]he majority of companies involved in the foreign economic activity experience problems at present: this is the difficulty in establishing ties with new suppliers, in making payments, searching for new sales markets and delivery of goods along new routes.” (https://tass.com/economy/1463679; https://tass.com/economy/1463623).
Russian Aviation Authority Extends Flight Suspensions to Areas Near Ukraine: The Russian Federal Air Transport Agency announced on Saturday that flights to Anapa, Belgorod, Bryansk, Voronezh, Gelendzhik, Krasnodar, Kursk, Lipetsk, Rostov-on-Don, Simferopol and Elista would continue to be suspended through June 18. Flights to these airports, which are located near the Russia-Ukraine border, were suspended due to the conflict. The Agency proposed alternate routes through Sochi, Volgograd, Mineralnye Vody, Stavropol and Moscow. (https://tass.com/economy/1463829).
McDonalds Restaurants Set to Reopen Under New Management, Marketing: On Sunday, several McDonalds restaurant locations in Moscow will reopen under new management and branding. Much of the food will remain the same, since McDonalds’ Russian supply chains have shifted to domestic sources in recent years, an indication of the Russian economy’s ability to rebound in response to western sanctions. (https://www.nytimes.com/2022/06/10/world/europe/russia-economy-mcdonalds.html).
Russian Auto Industry Struggles to Source Parts: The Guardian reported on Saturday that Russian citizens are having difficulty sourcing parts for car repairs, describing a secondary market with prices for parts marked up 10 times over typical prices and dealers with month-long waiting lists for new parts. Automakers like Avtovaz are having difficulty in sourcing parts for new cars, as well, with semiconductor shortages forcing Avtovaz to furlough workers. (https://www.theguardian.com/world/2022/jun/11/the-return-of-banditry-russian-car-industry-buckles-under-sanctions).
President Putin Signs Legislation Rendering ECHR Opinions Void in Russia After Withdrawal: On Saturday, Russian President Vladimir Putin signed legislation voiding all European Court of Human Rights (“ECHR”) opinions against Russia after March 15, 2022, the date the country withdrew from the human rights body. Compensation payments due from ECHR opinions are valid, as long as they are made in rubles to accounts in Russian banks, through January 2023. (https://tass.com/russia/1463889).
Ukrainian Food Minister Estimates 40 Percent Cut to Next Year’s Harvest: In a Friday interview with CNN, Ukrainian Agrarian Policy and Food Deputy Minister Taras Vysotskyi estimated that Ukraine has already lost 25 percent of its arable land as a result of the war, which will result in a 35-40 percent decrease in next year’s harvest, if the war continues. (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-06-10-22/h_473fdc698a68cd709c9222a576534625).
Domestic Demand for Russian-Made Sparkling Wine Increases: On Friday, Pavel Titov, the President of the Black Sea wine company Abrau-Durso told Bloomberg that he was seeing increased demand for Russian sparkling wine, and that his stockpiles were selling out quickly. Though foreign sanctions typically exclude food products, voluntary withdrawals of wine suppliers are forcing Russians to turn to domestic stock. TASS estimates that, if trends continue, shortages of sparkling wine may hit Russia for the holidays. (https://www.bloomberg.com/news/articles/2022-06-10/sanctions-may-leave-russia-short-of-bubbly-for-new-year).
Ukraine Sanctions Russian Officials: Ukrainian President Volodymyr Zelenskyy signed a decreed Thursday imposing personal sanctions on 35 Russian officials, including President Vladimir Putin, Putin’s spokesman Dmitry Peskov, Prime Minister Mikhail Mishustin, and a number of other high ranking officials. Those sanctioned individuals are prohibited from entry into Ukraine, have had their visas and permits revoked, as well as all issued licenses and permits. They also block financial assets. Zelenskyy signed an additional decree imposing sanctions on 236 Russian universities and their leaders. (https://www.yahoo.com/news/zelenskyy-imposed-sanctions-putin-peskov-151413463.html).
Putin Says Domestic Production Not a Solution to Sanctions: Russian President Vladimir Putin said Thursday that “The substitution of imports is not a panacea,” and that his government is “not trying to completely replace imports.” He added, however, that “for critically important technologies, we have to have our own know-how” and that “we are developing them.” (https://www.ndtv.com/world-news/russia-ukraine-war-substitution-of-imports-not-a-solution-vladimir-putin-on-us-sanctions-3054130).
Russia Says Western Cyber Attacks Risk “Direct Military Clash”: Reuters reported Thursday that Russia has warned the West that cyberattacks against the country’s critical infrastructure risked leading to direct military confrontation. In a statement, Russian officials said, “Rest assured, Russia will not leave aggressive actions unanswered.” (https://www.reuters.com/world/europe/russia-says-west-risks-direct-military-clash-over-cyber-attacks-2022-06-09/).
Ukraine President Calls on UN Food Body to Remove Russia: President Volodymyr Zelenskyy called for Russia’s removal from the Food and Agriculture Organization of the United Nations on Thursday, given the country’s contribution to the current global food crisis. (https://www.politico.eu/article/zelenskyy-wants-to-kick-russia-out-of-fao/?utm_medium=social&utm_source=Twitter).
Russian Microchip Maker Considers Leaving Taiwan: Defense News reported on Wednesday that Russian microchip manufacturer MCST, which produces the Elbrus microchip, stated that it may remove its production line from Taiwan to Russia. Relations between Russia and Taiwan have deteriorated since the start of the war in Ukraine, and Russian Deputy Trade Minister Vasili Shpak said that Taiwan has stopped shipping microchips to Russia. Shpak said that the move would help boost Russian domestic production of microchips, if completed. (https://www.defensenews.com/industry/2022/06/08/russian-microchip-maker-eyes-taiwan-exit-in-response-to-sanctions/).
Russia Reports Higher Consumer Prices:Russia’s statistics agency reported that consumer prices were 17.1 percent higher in May of this year than they were in May last year. Russia’s central bank is expected to bring interest rates back to pre-invasion rate by Friday. (https://www.wsj.com/articles/russias-inflation-eases-giving-government-economic-breathing-room-11654712784).
Bloomberg Investigation Reveals Changed Russian Trading Landscape: Though the Russian government is slowing data releases of late, Bloomberg is reporting that, based on an analysis of Russia’s major trading partners indicates that trade with “much of Europe has dried up,” and China is starting to reduce shipments of merchandise. However, Belarus’s exports to Russia are surging; its reported value of imports to Russia surpasses Germany’s reported imports to Russia, according to the analysis. (https://finance.yahoo.com/news/russia-topsy-turvy-world-where-040000655.html).
Talks Between Russia and Turkey on Grain Conclude Without Resolution: On Wednesday, Russia and Turkey ended discussions without reaching an agreement on the creation of a sea lane in the Black Sea to export grain from Ukraine to help address the global food crisis. (https://www.wsj.com/articles/russia-turkey-hold-high-stakes-talks-on-safe-passage-for-ukraines-grain-11654677099).
Ukraine Urges EU to Implement Full Embargo of Russian Oil: Vsevolod Chentsov, Head of the Mission of Ukraine to the EU, said in an online briefing Monday that his country would “like to see in the seventh package of sanctions… a total embargo on Russian energy, ie pipeline oil” and “gas”. (https://www.ukrinform.net/rubric-economy/3501354-eus-7th-package-of-sanctions-should-include-full-embargo-on-russian-energy-ambassador.html).
Russia to Provide State Insurance for Oil Tankers: Dmitri Medvedev, deputy chair of the Kremlin’s security council, said that oil tankers which cannot get insurance will be covered by state-provided assurances based on trade agreements between Moscow and the importing country. This announcement follows the announcement of the EU oil embargo and related restrictions on the provision of insurance services. (https://www.law360.com/corporate-crime-uk/articles/1500293/russia-says-oil-tankers-will-sail-without-insurance).
Economies of Ukraine and Russia Both Set to Contract in 2022: A report by the World Bank released Tuesday indicates that Ukraine’s economy is likely to contract by 45.1% in 2022. According to the report, the Russian economy is projected to shrink by 11.2 percent this year. (https://www.worldbank.org/en/news/press-release/2022/04/10/russian-invasion-to-shrink-ukraine-economy-by-45-percent-this-year).
Russia Calls on BRICS for Economic Coordination: Reuters reported Tuesday that in a ministerial and central bankers meeting of the BRICS countries, Russian Finance Minister Anton Siluanov called on the group to coordinate measures to stabilize the global economic situation. (https://www.reuters.com/markets/europe/russia-calls-coordinated-brics-action-against-global-economic-risks-2022-06-06/).
Russia Eases Capital Controls, Allowing Companies to Transfer Forex Overseas: Reuters reported Tuesday that Russia’s finance ministry will allow export-oriented companies to transfer foreign currency received from non-residents to their accounts overseas so long as it is later returned to Russia and sold on the market in accordance with earlier orders. (https://www.reuters.com/markets/europe/russia-softens-capital-controls-allow-companies-transfer-forex-overseas-2022-06-07/). The ruble weakened against both the USD and the euro slightly as a result, declining .2 percent against the dollar and .5 percent against the euro. (https://www.reuters.com/markets/europe/russian-rouble-steadies-against-dollar-stocks-extend-slide-2022-06-07/).
Russia Expands Oil Exports from Major Eastern Report to Offset EU Ban: With demand surging from Asian buyers, Russia is set to ramp up oil exports from the port of Kozmino by around one fifth. Russia is also planning on sending an extra 80,000 bpd of East Siberia Pacific Ocean (ESPO) Blend Crude to Kozmino via rail from Meget, allowing Kozmino to increase overall loadings to roughly 900,000 bpd in the months ahead (up from 750,000 bpd so far this year). ESPO oil exports via Kozmino are projected to reach 880,000 bpd in July. (https://www.reuters.com/markets/commodities/exclusive-russia-hikes-oil-exports-major-eastern-port-help-offset-eu-ban-2022-06-07/).
Russia’s Sovereign Eurobond Payments Stuck at Euroclear: Bloomberg reported Tuesday that Russia’s latest sovereign Eurobond payments have been transferred from Russia’s National Settlement Depository to Euroclear Bank SA, but the cash is being held there for compliance reasons. Recent moves by the U.S. and EU to heighten their sanctions regimes have made it significantly more difficult for Russia to pay its debts, increasing the odds of default significantly. (https://www.bloomberg.com/news/articles/2022-06-07/russia-s-latest-eurobond-coupons-are-stuck-at-euroclear).
Russian Parliament Votes to Leave European Court of Human Rights: Russia’s parliament approved two measures ending the European Court of Human Rights’ jurisdiction over the country. The bills passed with near-unanimous support and will now head to President Putin’s desk, where it is expected they will be signed into law. (https://www.reuters.com/world/europe/russian-parliament-votes-exit-european-court-human-rights-2022-06-07/).
Russian Parliament Votes to Leave European Court of Human Rights: Russia’s parliament approved two measures ending the European Court of Human Rights’ jurisdiction over the country. The bills passed with near-unanimous support and will now head to President Putin’s desk, where it is expected they will be signed into law. (https://www.reuters.com/world/europe/russian-parliament-votes-exit-european-court-human-rights-2022-06-07/).
Aeroflot Plans on Emergency Share Issuance: On Tuesday, Reuters reported that Russian flagship airline Aeroflot is planning on raising up to 185.2 billion rubles ($3 billion) in an emergency share issuance. Shareholders approved the transaction in their annual meeting. Western sanctions on the airline are the likely reason for the fundraising effort. (https://www.reuters.com/business/aerospace-defense/russias-aeroflot-raise-up-3-billion-via-new-share-issue-2022-06-07/).
Russia Imposes Sanctions on U.S. Officials: On Monday, Russia announced personal sanctions on sixty-one U.S. officials, including Treasury Secret Janet Yellen, Energy Secretary Jennifer Granholm, and major defense company executives. (https://www.reuters.com/world/russia-sanctions-us-treasury-energy-secretaries-defence-media-bosses-2022-06-06).
Russia Alleges Mistreatment of its Journalists in the US, Threatens Retaliation: Speaking to assembled press in Moscow on Monday, Russian Foreign Ministry Spokeswoman Maria Zakharova claimed that the US was mistreating Russian journalists, denying them visas and interrogating them on entry. She added, “[i]f the U.S. government doesn’t lift all measures against the Russian media or imposes further sanctions, then exactly the same will be applied to you.” State Department Spokesman Ned Price denied her claims. (https://www.wsj.com/articles/russia-says-u-s-mistreats-its-journalists-threatens-retaliation-11654550998).
Lavrov’s Trip to Serbia Cancelled Due to Airspace Closures: Russian Foreign Minister Sergei Lavrov was forced to cancel a planned visit to Serbia on Sunday due to airspace closures in Bulgaria, North Macedonia, and Montenegro. The countries have imposed the restriction due to Russia’s invasion of Ukraine, though Bulgaria made an exception in April to allow Russian diplomats to depart Serbia through Bulgarian airspace. (https://www.politico.eu/article/russia-lavrov-cancel-serbia-closed-airspace-bulgaria-north-macedonia-montenegro/).
Putin Discusses Options for Grain Exports: In an interview with Rossiya 1 TV, Russian President Vladimir Putin discussed options to export grain from Ukraine. He suggested that Ukraine could clear its seaports of mines and export through controlled ports, such as Berdyansk and Mariupol. Putin added that overland transport out of Ukraine is also possible, saying Belarus was the “most logical option”, but Western sanctions would need to be lifted on the country for this to occur. He criticized “short-sighted” Western sanctions, and noted that river transport was an option for Ukrainian grain exports. (https://tass.com/economy/1460605).
Zelenskyy Urges US Mayors to Cut Ties with Russian Cities: In a speech to the US Conference of Mayors, Ukrainian President Volodymyr Zelenskyy urged local officials to cut off “brotherhood” ties with Russian cities. He highlighted Chicago’s tie with Moscow, Jacksonville’s tie with Murmask, San Diego’s tie with Vladivostok, and Albany’s tie with Tula, among others. He asked, “[w]hat do these connections give you? Probably nothing. But they give Russia the opportunity to say that it is not isolated, even after beginning such a war.” (https://www.president.gov.ua/en/news/ne-dopomagajte-rosiyi-vipravdovuvati-sebe-j-ne-dozvolyajte-v-75589).
Lavrov Says Oil Sanctions Will Not Impact State Coffers: In an interview with Bosnian television on Saturday, Russian Foreign Minister Sergei Lavrov stated that Russia has “suffered no budgetary loss” as a result of energy sanctions from other nations, and added that the country expects “to significantly increase the profits from the export of our energy resources.” He stated that “[o]il, generally speaking, is not subject to politics, there is a demand for it…we have alternative sales markets, where we are already increasing sales.” (https://www.newsweek.com/russia-claims-sanctions-wont-hurt-energy-profits-expects-increase-1712877).
Medvedev Criticizes Sanctions on Oligarchs’ Families: In a message on his Telegram channel, Deputy Chairman of the Russian Security Council and former Russian President Dmitry Medvedev criticized Western decisions to sanction family members of oligarchs and government officials, claiming they “are in no way capable of influencing their relatives.” (https://tass.com/politics/1460677).
Ukrainian Foreign Minister Criticizes French Calls to Avoid “Humiliating” Russia:On Saturday, Ukrainian Foreign Minister Dmytro Kuleba tweeted, “calls to avoid humiliation of Russia can only humiliate France and every other country that would call for it. Because it is Russia that humiliates itself. We all better focus on how to put Russia in its place. This will bring peace and save lives.” French President Emmanuel Macron has maintained communication with Russian President Vladimir Putin and called for a diplomatic solution that does not “humiliate” the country. (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-06-04-22/h_1fef9aff71452480f62b4e5ee94e4329).
Putin Discusses Options for Grain Exports: In an interview with Rossiya 1 TV, Russian President Vladimir Putin discussed options to export grain from Ukraine. He suggested that Ukraine could clear its seaports of mines and export through controlled ports, such as Berdyansk and Mariupol. Putin added that overland transport out of Ukraine is also possible, saying Belarus was the “most logical option”, but Western sanctions would need to be lifted on the country for this to occur. He criticized “short-sighted” Western sanctions, and noted that river transport was an option for Ukrainian grain exports. (https://tass.com/economy/1460605).
Ukraine Imposes a Cap on Natural Gas Prices: Bloomberg reported Friday that Ukraine’s government imposed a ceiling on the price Ukrainian utility companies could buy natural gas for in preparation of the coming winter cold. Under the measure, Ukrainian utilities will buy natural gas at a price not higher than 7,400 hryvnia ($253) per 1,000 cubic meters. (https://www.bloomberg.com/news/articles/2022-06-03/ukraine-latest-uk-says-russia-has-momentum-100-days-into-war?srnd=premium).
Russia’s National Settlement Depository Declares Emergency After EU Sanctions Implemented: Tass reported Friday that Russia’s National Settlement Depository, the entity Moscow planned on using to service the country’s Eurobonds, has recognized the “emergency situation in depository and banking operations” that has arisen as a consequence of the EU’s sixth round of economic sanctions. (https://tass.com/economy/1460519). In a statement, NSD officials recommended “adding foreign currency to NSD’s correspondent accounts, taking into account the risk analysis of such crediting.” (https://www.reuters.com/markets/europe/eu-sanctions-russias-settlement-depository-which-services-eurobonds-document-2022-06-03/).
Ukraine Declares Megabank Insolvent: On Friday, Ukraine’s central bank declared Kharkiv-based Megabank, which counts Germany’s KfW, the European Bank For Reconstruction and Development and the International Finance Corporation as shareholders, insolvent. According to Ukrainian officials, Megabank’s net assets account for 0.5% of the banking sector’s total. (https://ukranews.com/en/news/860937-nbu-classifies-megabank-as-insolvent).
Ukraine’s Central Bank More than Doubles Interest Rates: On Thursday, the National Bank of Ukraine raised interest rates from ten percent to twenty-five percent in an effort to combat inflation, which was up to seventeen percent in May. (https://bank.gov.ua/en/news/all/natsionalniy-bank-ukrayini-pidvischiv-oblikovu-stavku-do-25).
Export Controls Impact Russia’s Tech Industry:The Financial Times reported on the crippling effect that international restrictions on the supply of chips, semiconductors, and other hardware are having on Russia. Although Russia has several domestic chip manufacturers, it relies heavily on importing large quantities of finished semiconductors from foreign manufacturers, which is impacting the supply of products that rely on semiconductors, as well. (https://www.ft.com/content/caf2cd3c-1f42-4e4a-b24b-c0ed803a6245).
Russian Economy Faces Domestic Hardship in Face of International Sanctions: Despite Russia’s attempts to replace foreign goods with domestic goods, the Russian economy continues to see a slowdown as the war continues. The Wall Street Journal reported that Russian consumers and businesses are experiencing high prices and low supplies in a variety of sectors ranging from automobiles to entertainment, while Russian factories continue to see a decrease in production. (https://www.themoscowtimes.com/2022/06/02/russian-shoppers-face-shrinking-options-on-store-shelves-bbc-a77874; https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-06-01/card/russia-s-manufacturing-output-falls-factories-cuts-jobs-onrYmJBYVeQX4SYpMa6W).
Russia Expresses Willingness to Settle Debt Disputes: With the risk of an external debt default looming, Russia has offered to directly settle disputes with creditors for missing payments on any foreign debt due to international sanctions. (https://www.themoscowtimes.com/2022/06/02/russia-offers-to-settle-debt-disputes-with-creditors-a77876).
Russia Announces Plans to Create Separate Human Rights Court: Russia plans to establish a domestic human rights court over the next year with that could include BRICS countries, Council of Independent States members, or Eurasian Economic Union members. In March, the Council of Europe removed Russia as a member of the European Court for Human Rights for its invasion of Ukraine. (https://www.themoscowtimes.com/2022/06/02/russia-says-planning-domestic-alternative-to-european-rights-court-a77875).
Russian Oil Producers Evading Western Sanctions: The Wall Street Journal reported Wednesday that shippers and refiners of Russian crude continue to bring oil into Western markets despite the imposition of substantial sanctions. India and Chinese imports of Russian oil have skyrocketed, avoiding costs by transferring conducting the transfers at sea. (https://www.wsj.com/articles/russian-oil-producers-stay-one-step-ahead-of-sanctions-11654076614?mod=world_trending_now_article_pos3).
Russia’s Central Bank Considering Cryptocurrency to Blunt Sanctions’ Impact:Reuters reported Tuesday that Russian Central Bank First Deputy Governor Ksenia Yudaeva said in a briefing with reporters that, “[i]n principle, we do not object to the use of cryptocurrency in international transactions.” She also noted that the bank views crypto with considerable skepticism, saying that “[w]e still believe that the active use of cryptocurrency within the country, especially within Russia’s financial infrastructure, creates risks for citizens and users. We believe that in our country those risks could be reasonably large.” (https://www.reuters.com/article/ukraine-crisis-russia-cryptocurrency/russias-central-bank-sees-space-for-crypto-in-international-trade-idUSKBN2NH178).
Lavrov Highlights the Importance of OPEC+:Reuters reported Wednesday that Russian Foreign Minister Sergei Lavrov told a news conference in Saudi Arabia that “[t]he principles of cooperation on th[e] basis [of OPEC+] retain their significance and relevance.” His comments come on the heels of a report in the Wall Street Journal Tuesday indicating that some members of OPEC were considering the suspension of Russian oil from the production deal it is set to approve Thursday. (https://www.reuters.com/article/oil-opec-russia-lavrov/russias-lavrov-says-opec-still-relevant-for-moscow-idUSS8N2WX05K).
Russian Duma Mulls New Plan to Remove Toxic Waste from Lake Baikal: Radio Free Europereported Wednesday that Russian authorities are considering a new plan to increase iron levels by a factor of 10, chromium levels by 1.3, and mercury by 13 in order to remove toxic waste from the former “pearl of Siberia,” Lake Baikal—a UNESCO-protected ecosystem that holds about 20% of the world’s fresh surface water. (https://www.rferl.org/a/russia-pushes-dangerous-cleanup-plan-lake-baikal/31877177.html).
Lavrov Claims GCC Won’t Sanction Russia: Al Arabiya reported Wednesday that officials from GCC states, including UAE, Kuwait, Qatar, Bahrain, Oman, and Saudi Arabia, assured him that they would not join the Western sanctions regime against Russia over the war in Ukraine. Saudi Arabia’s Foreign Minister, Prince Faisal bin Farhan, also told Lavrov that the Kingdom stands ready to assist in a diplomatic effort to end the conflict. (https://english.alarabiya.net/News/world/2022/06/01/Lavrov-Gulf-countries-will-not-impose-sanctions-on-Russia-over-Ukraine).
Investors Determine “Failure to Pay Credit Event” has Occurred: Reuters reported Wednesday that a panel of investors on The EMEA Credit Derivatives Determinations Committee had voted “yes” on the question of whether Russia’s failure to pay $1.9 million in potential interest accrued between the maturing of its international 2022 bond on April 4 and its payment of principal and interest due at maturity was made on May 2 constituted a “credit event” that would permit investors to collect a payout on credit default swaps. The committee will reconvene to discuss the issue further Monday, June 6. (https://www.reuters.com/business/russia-failure-pay-credit-event-investor-committee-says-2022-06-01/).
Russia’s GDP Contracted 3% in April: Bloombergreported Wednesday that Russia suffered the worst crash in production and retail sales since the coronavirus in April 2022 as a consequence of Western sanctions. Retail sales fell 9.7%, factory output dropped 1.6% and real disposable income was down 1.2%. Unemployment went down slightly to 4%. Economists predict the Russian economy will contract 10% in 2022 and 1.5% in 2023. (https://www.bloomberg.com/news/articles/2022-06-01/sanctions-deal-russian-consumer-economy-worst-hit-since-pandemic).
Russian Factory Output Falls Sharply in April:The Wall Street Journal reported Wednesday that Russian auto manufacturing dropped 61% from last year in the month of April, and 30% from March. Overall manufacturing output declined by 6% in April from March. Medicine manufacturing fell 10.4% and chemical production 10.2% from March. (https://www.wsj.com/articles/russian-car-makers-hit-hardest-as-factory-output-falls-after-ukraine-sanctions-11654107839?mod=hp_lista_pos3).
Despite Western Sanctions Impact on Russian Business, Russia Continues to Benefit From Surging Commodity Prices: Bloomberg reported Wednesday that the surge in commodity prices tied to its invasion of Ukraine and the imposition of sanctions by the U.S. and its allies have paradoxically been a boon to Russian energy, wheat, nickel, aluminum, and palladium exports, generating $800 million per day. Even as Europe halts and/or slows its energy purchases, Russia is projected to have $285 billion in revenues from oil and gas this year alone, exceeding its 2021 revenues by more than 1/5th.(https://www.bloomberg.com/news/features/2022-06-01/has-sanctioning-russia-worked-oil-gas-sales-put-285b-in-putin-s-pocket).
Russian Oil Company Rosneft Plans Record High Dividend Payouts for 2021: After record profits from the surge in oil prices in 2021, the board of state-owned oil company Rosneft recommended a dividend payout of fifty percent of net profit to its shareholders. Shareholders will vote on the board’s recommendation on June 30. The Russian government owns more than forty percent of Rosneft shares. (https://www.businessinsider.co.za/russia-oil-giant-rosneft-record-dividend-despite-ukraine-war-sanctions-2022-5).
Russia Reports Increased Stock of Grain Domestically: President of the Russian Grain Union, Arkady Zlochevsky, reported that Russia’s stock of grain is twenty percent higher than last year since Russia is currently supplying itself rather than the world market. Russia has previously stated that it would export grain to help avoid a global food crisis in exchange for removal of sanctions. (https://www.freemalaysiatoday.com/category/world/2022/05/31/russia-starts-stockpiling-grains-amid-sanctions/).
Russia to Halt Board of Director Elections for Sanctioned Companies: Prime Minister Mikail Mishustin reportedly announced that the Russian government will permit sanctioned Russian companies to temporarily pause elections for their boards of directors. Additionally, the plan would preserve the powers of the current board without holding a reelection. (https://tass.com/economy/1458531).
Russia Establishing New Avenue for Managing Bond Payments: Russian Finance Minister Anton Siluanov is reported to have stated that Russia will establish a system for bond payments similar to that for natural gas payments, after the US government let an authorization for such payments to lapse (although the EU has not announced such restrictions). Under the proposed system, investors would have to open both a foreign currency and ruble account at a Russian bank, provide instructions permitting in change, and then Russia would make bond payments in rubles which would be exchanged for the correct foreign currency for the benefit of the investor. (https://markets.businessinsider.com/news/bonds/russia-bond-payments-debt-default-us-sanctions-rubles-natural-gas-2022-5).
Zelenskyy Advocates for Increased Sanctions at European Council Meeting: On Monday, Ukrainian President Volodymyr Zelenskyy was invited to speak at the European Council meeting. He called for the bloc to place an embargo on Russian oil, and added that he had spoken to French Foreign Minister Catherine Colonna that day on the subject of increased sanctions on Russia. (https://www.president.gov.ua/en/news/yevropi-u-bud-yakomu-razi-dovedetsya-vidmovitisya-vid-rosijs-75473).
Hackers Release Customer Data Stolen from Sberbank: Amid claims of hacking by hacking collective Anonymous, major website outages, and a statement from Sberbank that it fought against the largest DDoS attack in its history on May 6, card details of 113,476 Sberbank customers are reported to be circulating on the dark web since the beginning of Russia’s invasion of Ukraine. (https://www.telegraph.co.uk/business/2022/05/29/hackers-wage-war-russias-largest-bank/)
Central Bank of Russia to Launch Digital Ruble as Early as Next Year: Reporting in Forbes Russia quoting the Central Bank of Russia’s First Deputy Chairman Olga Skorobogatova stated that the CBR has decided to speed up the development of the digital version of the ruble in response to western sanctions, launching the pilot program with real transactions and users in April 2023 rather than in 2024. (https://news.bitcoin.com/bank-of-russia-steps-up-efforts-to-issue-digital-ruble-due-to-sanctions/).
Ukraine Seizes Rosneft Assets in the Country: On Saturday, the Ukrainian Security Service posted on its Telegram channel that it had initiated seizure of Russian company Rosneft’s assets currently located in Ukraine. Rosneft’s license to provide electricity in Ukraine had previously been suspended, and its 20 million hryvnia of assets in Ukraine had already been frozen. (https://tass.com/world/1457279).
Russian Ship Loaded with Grain Leaves Ukraine, Arrives in Syria: CNN reported on Sunday that, according to satellite images, Russian cargo ship Matros Pozynich has arrived in the Syrian port of Latakia after being loaded with grain in the Crimean port of Sevastopol earlier this week. The images indicate that two other Russian ships have been loaded with grain in Sevastopol in the last few weeks. (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-05-29-22/h_e9dee7ccd2ad74be546a68944d5ad8a9).
Ukrainian Orthodox Church Branch Breaks Ties with Russia Over War: The Ukrainian Orthodox Church-Moscow Patriarchate, an eastern branch of Ukraine’s Orthodox Church that remained loyal to Moscow after a 2019 schism permitted Ukrainian Orthodox Churches to separate from the Russian Orthodox Church, has said it will break with the Russian church over the country’s invasion of Ukraine. Ukrainian Orthodox leadership stated that it has sought “full independence” from the Russian Orthodox Church. (https://www.reuters.com/world/europe/moscow-led-ukrainian-orthodox-church-breaks-ties-with-russia-2022-05-28/).
Russia Eases Currency Restrictions on Oil and Gas Payments for “Reliable Partners”: Speaking on Friday, Russian President Vladimir Putin stated, “we are extending the practice of payments [for energy products] in the national currencies for those countries that have proven themselves as reliable partners for Russia.” Russia is pushing “unfriendly” countries to pay for oil and gas shipments in rubles. (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-05-27-22/h_.4e4d424ccf1883892eedc1b6ea33eed5).
Ukraine Asks Germany to Reduce Shipments through Nord Stream I Pipeline: In a televised address on Friday, Serhiy Makogon, the head of Ukraine’s gas system operator called on Germany to severely curtail its shipments through Nord Stream I. He noted that Ukraine had formally sent a letter to Germany arguing that the pipeline is allowed under German law so long as it contributes to the strengthening of the security of gas supplies to Europe, but, as recent shutoffs show, Russia has violated these principles. (https://www.reuters.com/business/energy/ukraine-demands-germany-cut-or-halt-nord-stream-1-gas-flows-2022-05-27/).
Ruble Falls After Interest Rate Hike: On Friday, the ruble fell 4.4 percent against the dollar in offshore trading on Friday, building on a 6.7 percent decline on Thursday. This brings losses to 8.3 percent for the week, the biggest weekly decline since the second week of the war. The Russian central bank cut interest rates earlier this week, which set off the decline. (https://www.wsj.com/articles/rubles-rally-stumbles-after-interest-rate-cut-11653666447?mod=livecoverage_web).
Small Trading Firms Help Export Russian Oil: The Wall Street Journal reported on Friday that smaller trading firms, like Paramount Energy & Commodities SA and Coral Energy Pte, are quickly expanding their trades in Russian oil as major traders like Trafigura, Vitol, Glencore, and Gunvor Group withdraw from the Russian market. These trades do not violate western sanctions on Russia; recent EU restrictions on trades with state-owned Rosneft inspired large traders to withdraw from the market entirely, and smaller firms picked up the slack. (https://www.wsj.com/articles/little-known-commodity-traders-help-russia-sell-oil-11653643583?mod=livecoverage_web).
Russian Finance Minister Denies Allegations of Default: On Friday, Russian Finance Minister Anton Siluanov stated, “current statements about the default are out of touch [with the reality] at all. This is the default of Western countries before themselves. We have money. I reiterate we will make payments.” As the US blocked Russia’s ability to make interest payments to American banks, Russia is more likely to default on its debt. (https://tass.com/economy/1457065).
Ukraine Confirms Lack of Agreement with Russia on Grain Corridors: On Friday, Serhii Bratchuk, spokesman for the Operational Staff of the Odesa regional administration, said that a recent Russian announcement of safe lanes for ships carrying grain was an “attempt to create an informational alibi for Russia… and an attempt to blame Ukraine in creating a food crisis.” (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-05-27-22/h_02e27b73f28473a1b02109cf846552bb).
Ukrainian officials remind Hungary that the Druzhba oil pipeline runs through Ukraine: In a video conference, Olena Zerkal, an adviser to the Ukrainian energy minister reminded Hungary that the Druzhba oil pipeline that supplies Hungary runs through Ukrainian territory. The Ukrainian official mentioned that “Something could happen” to it, and “in my opinion, it would be very appropriate if something happened to it”. (https://www.politico.eu/newsletter/brussels-playbook/ukraine-speaks-orbans-language-sanctions-push-spyware-moratorium/).
Russia Expels Five Croatian Diplomats: On Friday, the Russian Foreign Ministry announced that it was expelling five staff members of the Croatian Embassy in Moscow. The move appears to be retaliation for Croatia’s decision to expel Russian embassy staff from its territory. (https://www.usnews.com/news/world/articles/2022-05-27/russia-expels-five-croatian-diplomats-in-retaliatory-move).
Russia, Italy Discuss Grain Restrictions: On Thursday, Russian President Vladimir Putin and Italian Prime Minister Mario Draghi held a phone call to discuss food security issues stemming from the war in Ukraine. President Putin said Russia was considering increasing fertilizer and grain exports in exchange for sanctions relief, reiterating statements from other Russian government officials on the issue this week. (https://www.reuters.com/world/putin-says-russia-ready-help-solve-food-crisis-if-west-lifts-sanctions-kremlin-2022-05-26/).
Russian Supply Shortages of Western Goods Worsen: Building on previous reports of shortages in the aviation sector, Russian logistics officers are reporting widespread shortages of western goods, according to reporting from The Washington Post. As sanctions and individual business withdrawals reduce the amount of western goods for sale in the country, Russian companies are picking up the slack, but logistics officers state that the quality is reduced particularly for the price. (https://www.washingtonpost.com/world/2022/05/26/russia-economy-aviation-sanctions-shortages/).
Ukraine Refuses to Recognize Russian Passport Order: On Thursday, Ukrainian officials said that a recent Russian order allowing residents of occupied southern regions of Ukraine to apply for Russian citizenship and receive Russian passports was “null and void” in the country. (https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-05-26/card/ukraine-decries-putin-s-move-to-issue-russian-passports-as-illegal-MVFxkQ5e0zwFH6Kk7Rsl).
Russian Central Bank Cuts Interest Rates: On Thursday, the Russian Central Bank cut its key interest rate from 14 percent to 11 percent, saying that inflation is slowing in the country and lending activity remains weak in the country. It noted that it may reduce rates further if these economic conditions continue in future meetings. (https://www.cnbc.com/2022/05/26/russias-central-bank-cuts-key-interest-citing-decreased-stability-risks.html).
Ukraine Urges Tech Companies to Leave Russia: In an interview at the World Economic Forum on Wednesday, Ukrainian Technology Minister Mykhailo Fedorov, Ukraine’s Minster of Digital Transformation, called out tech firms Cloudflare and SAP for continuing operations in Russia. He praised tech companies that have already departed Russia, and is “convinced eventually that they will leave Russia, sooner or later.” (https://www.cnn.com/2022/05/25/business/ukraine-tech-companies-davos/index.html).
Russia Prepared to Open Black Sea Ports in Exchange for Sanctions Relief: Speaking on Wednesday, Russian Deputy Foreign Minister Andrei Rudenko said that Russia is prepared to provide a humanitarian corridor for agricultural exports from Ukraine in exchange for partial sanctions relief. In response to the request, Ukrainian Foreign Minister Dmytro Kuleba accused the Russian government of “clear blackmail.” (https://www.reuters.com/world/europe/russia-ready-set-up-corridor-ships-carrying-food-leave-ukraine-ifax-2022-05-25/; https://www.cnn.com/europe/live-news/russia-ukraine-war-news-05-25-22/h_995d68108a3a94a5409647549c1413a6).
Russia to Pay for Dollar Bonds in Rubles: On Wednesday, Russia announced that it would service its dollar bonds using rubles, after the Treasury Department allowed a license permitting US parties to collect interest payments on sovereign debt to expire. Ratings agencies have stated that paying in rubles for dollar-denominated bonds will constitute a default. (https://markets.businessinsider.com/news/currencies/dollar-vs-ruble-russia-debt-default-pay-bonds-us-loophole-2022-5).
Insurance Restrictions May Impact Russian Oil Market: On Wednesday, Reuters reported that, despite Russia’s ability to withstand energy sector sanctions thus far, upcoming restrictions from western insurance companies, which dominate the oil shipping insurance market, may prove more difficult to overcome. The restrictions will fully come into place in June and July, when EU restrictions on insurance fully expire. Even if insurance companies in countries sympathetic to Russia fill the gap, their own insurers may increase their premiums for dealing with a sanctioned entity. (https://www.reuters.com/markets/commodities/russian-oils-achilles-heel-insurance-2022-05-25/).
Putin Signs Decree Easing Russian Citizenship Applications for Ukrainians in Occupied Territories: On Wednesday, Russian President Vladimir Putin signed a decree making it easier for Ukrainians in areas of Kherson and Zaporizhzhia occupied by Russian troops to obtain Russian citizenship. The decree will amend legislation already in effect for the Donetsk and Luhansk regions to include the new areas. (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-05-25-22/h_662db181771102992a3aa66432400136).
Russia Sanctions 154 Members of UK House of Lords: Russia’s Foreign Ministry on May 24, 2022, announced that it was imposing an entry ban on 154 members of the UK Parliament’s House of Lords, in retaliation for sanctions against Russian senators over Ukraine. The blacklist does not include Russian-born press baron Evgeny Lebedev, who is the son of a former KGB member. (https://www.themoscowtimes.com/2022/05/24/russia-bars-entry-to-154-members-of-uk-house-of-lords-a77790).
Russian Parliament Advances Bill to Nationalize Assets of Foreign Companies that have Left Russia: On Tuesday, the State Duma approved legislation that would allow Russian courts to transfer control of companies that have exited the country without obvious economic reasons to Russian entities. The legislation now must go through two more readings in the Duma before moving to the Federation Council and President Putin’s desk, steps that are considered formalities. (https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-05-24/card/russia-moves-ahead-with-bill-on-nationalizing-assets-of-foreign-companies-OQ8d2B8n2MlAdNKwQRKf).
Russian Parliament Advances Press Censorship Bill: On Tuesday, the State Duma advanced a bill that would give the Russian Prosecutor General’s office the power to invalidate the registration and revoke the license of media outlets through request to the state media regulator if the media company publishes “illegal, dangerous information by the media and the broadcaster, including unreliable socially significant information.” Currently, media outlets may only be shut down by court order. The legislation now must go through two more readings in the Duma before moving to the Federation Council and President Putin’s desk, steps that are considered formalities. (https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-05-24/card/russia-moves-forward-with-media-censorship-bill-EIkbbY0VtPHaRDCq6LI0).
Russia Eases Capital Controls: In a Tuesday statement, the Russian Ministry of Finance announced that it was loosening its capital controls as the ruble surges in value. The Ministry said that it would cut the share of foreign currency earnings that exporters are required to convert to rubles from 80 percent to 50 percent. (https://www.themoscowtimes.com/2022/05/24/russia-eases-capital-controls-to-hold-back-surging-ruble-a77778).
Russian Foreign Minister Calls for Deeper Ties with China: Speaking on Tuesday, Russian Foreign Minister Sergei Lavrov said that Russia needs to stop being dependent in any way on suppliers from the west, adding that the recent sanctions imply “our economic ties with China will grow even faster.” He stated, “When we can finally count only on ourselves and on countries which have proven themselves reliable and do not dance to someone else’s tune, then if Western countries come to their senses and begin to propose some form of cooperation, it will be up to us to decide.” (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-05-24-22/h_b48afc213ddbb2ff3042522644d73bef).
Zelenskyy Calls for “Maximum Sanctions” at Davos: On Monday, Ukrainian President Volodymyr Zelenskyy delivered a virtual address at the World Economic Forum in Davos, Switzerland. The President called for “maximum” sanctions on Russia, which included an oil embargo, blocking all Russian banks, and cutting off trade with Russia completely. He also advocated for the complete withdrawal of foreign companies from Russia, and asked for $5 billion per month in funding to support the Ukrainian economy. (https://www.latimes.com/world-nation/story/2022-05-23/ukraine-zelensky-urges-maximum-sanctions-russia-davos).
Ukraine, Poland Announce Joint Customs Control: On Sunday evening, Ukrainian President Volodymyr Zelenskyy announced that the country had established a joint border customs control arrangement with Poland. The move comes after Polish President Andrzej Duda visited Kyiv over the weekend and expressed willingness to develop closer ties between the countries. The arrangement is intended to streamline entry and exit procedures for goods and persons between the countries; Poland is a major destination for refugees from the conflict. (https://www.reuters.com/world/europe/ukraine-poland-agree-joint-customs-control-ease-movement-people-goods-2022-05-23/).
Sovcomflot Sells One Sixth of Fleet to Repay Debts: Russia’s biggest shipping group, Sovcomflot, and its western lenders have sold a sixth of its Kremlin-owned fleet as part of plans to repay debts and eventually return to international markets once sanctions are lifted. The asset sale comes as energy executives warn Russia’s oil and tanker industry will increasingly resemble Iran and Venezuela, which rely on a “dark fleet” of vessels operating outside international markets. These ships turn off location signals, register under false flags and use shell companies. (https://www.ft.com/content/31b80bbb-59f3-4d7a-b901-329867797d41).
Putin Says Russia “Withstanding” Sanctions: In a meeting with Belarusian President Alexander Lukashenko in Sochi, Russia, Russian President Vladimir Putin stated “the Russian economy is withstanding the impact of the sanctions, and withstanding it quite well,” according to macroeconomic indicators. GDP estimates widely predict that the Russian economy will contract in the near future due to sanctions. (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-05-23-22/h_459a18ff68a5eb1a1841b04d6865d651).
Russian Diplomat Resigns Over Ukraine Invasion: On Monday, Boris Bondarev, identified on LinkedIn as a Counsellor at the Russian Permanent Mission to the UN specializing in arms control, told Reuters that he had resigned from his post over the Russian invasion of Ukraine. He stated, “The [Russian foreign] ministry has become my home and family. But I simply cannot any longer share in this bloody, witless and absolutely needless ignominy.” (https://www.reuters.com/world/europe/russian-diplomat-switzerland-says-he-resigns-over-ukraine-invasion-2022-05-23/).
Russian Foreign Ministry Publishes Full List of Americans Banned from Traveling to Russia, Adds Canadian Officials to List: On Saturday, the Russian Foreign Ministry announced for the first time the entire list of 963 Americans banned from traveling to Russia. The list confirms that US diplomatic and military personnel, like Secretary of State Antony Blinken, Defense Secretary Lloyd Austin and CIA chief William Burns, but also includes actor Morgan Freeman and journalists Susan Glasser of the New Yorker, Bret Stephens of the New York Times, David Ignatius of the Washington Post and Nick Paton Walsh of CNN for “inciting Russophobia”. The Ministry also announced the addition of 26 Canadians to the travel ban list, including Sophie Gregoire Trudeau, wife of Canadian Prime Minister Justin Trudeau. (https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-05-21/card/russia-bans-entry-to-nearly-1-000-americans-UgPN8GHGy7ZS8d7p9RUi).
Russia Pushes Through $100 Million in Bond Payments: Russian finance officials said on Sunday that they had pushed through approximately $100 million in interest payments on euro and dollar-denominated debt. The payments were made in advance of their due date; the Treasury Department is expected to cut off US persons’ ability to collect interest payments on Russian debt this week. (https://www.wsj.com/articles/russia-pays-bond-coupons-ahead-of-likely-u-s-payment-block-11653059013?mod=livecoverage_web).
Sanctions Impacting Aeroflot Repairs:Bloomberg reported on Sunday that Aeroflot, Russia’s flag carrier, is experiencing difficulty in sourcing parts for its planes, many of which are manufactured by US company Boeing and EU company Airbus. Sanctions from the EU and US are blocking these companies from supplying the Russian airline, and it is struggling to shift to a domestically-made, primarily domestic-serving model. Bloomberg reports that the company has enough supplies to repair its Boeing and Airbus planes for three more months before it must start “cannibalizing” other Airbus and Boeing jets for their parts. (https://www.bloomberg.com/news/articles/2022-05-22/aeroflot-is-back-to-the-future-as-sanctions-ground-its-ambitions).
Russian Transportation Secretary Says Sanctions Have “Practically Broken All” Trading Corridors: Speaking to industry representatives during a visit to the Astrakhan region, Russian Transportation Secretary Vitaly Savelyev said, “The sanctions that have been imposed on the Russian Federation today have practically broken all logistics [corridors] in our country. And we are forced to look for new logistics corridors together.” He added that the country is exploring options along the International North–South Transport (INSTC) corridor, which links India with central Asian countries. (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-05-21-22/h_b135cf557a352152f3a0f501193db208).
Moody’s Downgrades Ukraine Credit Rating: On Friday, Moody’s downgraded Ukraine’s credit rating to Caa3, which indicates that the agency expects a recovery in the event of default of typically between 65 percent to 80 percent. In a statement, the agency said, “While Ukraine is benefitting from large commitments of international financial support, helping to mitigate immediate liquidity risks, the resulting significant rise in government debt is likely to prove unsustainable over the medium term,” especially as the military conflict continues. (https://www.bloomberg.com/news/articles/2022-05-20/moody-s-downgrades-ukraine-as-drawn-out-war-raises-debt-risks).
Zelenskyy Accuses Russia of Blocking 22 Million Tons of Food Exports: In a speech with Portuguese Prime Minister Antonio Costa, Ukrainian President Volodymyr Zelenskyy accused Russia of blocking 22 million tons of food exports for the world as a result of blockades on Ukrainian ports. He said the action was “putting millions of people at risk of hunger.” (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-05-22-22/h_411434cc8aa2c6de383d2a728733dff7).
Ukrainian Presidential Advisor Responds to Russian Comments on Sanctions Review for Food Exports: Speaking on Sunday, Ukrainian Presidential Advisor Mykhailo Podolyak responded to recent reports that Russia would end its blockade of Ukraine’s Black Sea ports if the international community undertook a “review” of sanctions on Russia. He opposed the Russian suggestion, saying, “If you follow the lead in Russia by lifting some of the sanctions, they will continue to escalate the conflict in Ukraine and will set new conditions.” (https://news.yahoo.com/zelenskys-office-comments-possible-lifting-143500916.html).
Russian Officials, Businessmen No Longer Welcome at Davos: With the first in-person World Economic Forum since 2020 set to begin in Davos, Switzerland, Russian officials and businesses are no longer invited to the event. This will be the first Forum since the fall of communism without Russian representation. The Russian delegation to Davos is known for throwing luxurious parties; the venue that typically hosted the Russian delegation has been rebranded for this year’s Forum as the “Russian War Crimes House.” (https://www.bloomberg.com/news/articles/2022-05-21/putin-s-war-in-ukraine-ends-decades-of-russian-money-and-influence-at-davos; https://www.cnn.com/europe/live-news/russia-ukraine-war-news-05-22-22/h_d18780ab66a20e4a2c708822e17c05fa).
EU Nationals Resign from Rosneft Board: In addition to the Vice President resignations reported yesterday, Rosneft announced on Friday that two European members of its board of directors, former German Chancellor Gerhard Schroder and Matthias Waring, were resigning from their roles at the company. Schroder was the subject of an EU resolution calling on EU citizens to resign from board positions at major Russian companies, and he lost his office space in the German parliament building as a result of his ties to Russia this week. (https://www.wsj.com/articles/senior-executives-flee-russian-oil-giant-rosneft-11653041804?mod=hp_lead_pos3).
Sberbank Sells Stakes in Biometric Software Firms: Several Russian companies announced purchases of Russian biometric software firms that were previously owned by Sberbank, the country’s largest lender and target of several foreign sanctions regimes. It is unclear whether the sale shields the spun off companies from restrictions, as the software they produce could have military significance. (https://www.biometricupdate.com/202205/russian-biometric-players-trading-hands-amid-sanctions-uncertainty).
Former Russian President Expects Sanctions to Stay in Effect “For a Very Long Time”: Speaking to a government panel on Friday, former Russian President Dmitry Medvedev, now the deputy chairman of Russia’s security council, said that he expects the sanctions imposed on Russia to remain in effect “a very long time… the way it was in the past, including the Soviet era. In other words, for decades.” He urged Russia to rely entirely on its own resources as a result. (https://tass.com/world/1453977).
National Bank of Ukraine Lifts Cap on Foreign Exchange Rate for Banks: On Friday, the National Bank of Ukraine announced that it would lift its restrictions on the exchange rates that banks can sell foreign currency in cash to clients. Previously, banks could only deviate from the foreign currency exchange rates set by the National Bank by 10 percent. (https://www.ukrinform.net/rubric-economy/3488165-nbu-lifting-cap-on-cash-forex-rate-for-banks.html).
Russian Central Bank Releases GDP Estimates:On Friday, Kirill Tremasov, the head of the Russian Central Bank’s Monetary Policy Department, told a conference on Friday that the Bank expects Russian GDP to contract by 8 to 10 percent in 2022, 0 to 3 percent in 2023, and to grow by 2.5 to 3.5 percent in 2024. (https://tass.com/economy/1453927).
Five Rosneft Vice Presidents Resign Due to Impending Sanctions: On Thursday, Reuters reported that five European Vice Presidents working at Rosneft resigned due to impending EU sanctions that will forbid EU citizens from working at the company. The resignations occurred days before the EU restrictions went into place on May 15. (https://www.reuters.com/business/energy/rosneft-faces-foreign-managers-departures-sanctions-push-out-eu-citizens-sources-2022-05-19/).
Russia Pins Food Crisis on Foreign Sanctions: Speaking in response to calls from the UN to end the blockade on Ukraine’s Black Sea ports to allow agricultural exports, Russian Deputy Foreign Minister Andrei Rudenko said, “You have to not only appeal to the Russian Federation but also look deeply at the whole complex of reasons that caused the current food crisis and, in the first instance, these are the sanctions that have been imposed against Russia by the U.S. and the EU that interfere with normal free trade, encompassing food products including wheat, fertilisers and others.” (https://www.reuters.com/world/europe/moscow-says-opening-ukraine-ports-would-need-review-sanctions-russia-interfax-2022-05-19/).
Russian Economic Growth Slows More than Expected: The Russian Federal Statistics Service announced on Wednesday that the Russian economy grew by 3.5 percent in the first quarter, down from a 4 percent gain in the three preceding months. This result was below Bloomberg’s median forecast of economists, who expected the Russian economy to grow by 3.7 percent. Since this result reflects first quarter data, it only partially includes the invasion of Ukraine, which began on February 24, and subsequent sanctions. (https://www.bloomberg.com/news/articles/2022-05-18/russia-s-economy-slowed-down-more-than-expected-in-first-quarter).
Russian Deputy PM Claims Russian Oil Export Rebound: On Thursday, Russian Deputy Prime Minister Alexander Novak said that Russia is increasing oil production in May by 200,000 to 300,000 barrels per day, after a decline in April. He noted that, after receiving a “certain shock” related to is previous export partners, Russia “does not have serious problems” in the oil export industry, and the country is looking for new partners. (https://tass.com/economy/1453301).
Google’s Russian Subsidiary Files for Bankruptcy; Company Moves Employees Out: On Wednesday, Google’s Russian subsidiary, Google LLC, submitted a notice of intent to declare bankruptcy to Russia’s Fedresurs agency. In a statement, Google said, “Russian authorities’ seizure of Google Russia’s bank account has made it untenable for our Russia office to function, including employing and paying Russia-based employees, paying suppliers and vendors, and meeting other financial obligations.” The company has already paused most commercial operations in Russia, though free services like YouTube, gmail, and Maps, will remain unaffected. Sources at Google also confirmed that Google is moving its employees out of Russia, with most keeping their jobs and moving to Dubai, and the rest remaining in Russia and leaving the company. (https://www.wsj.com/articles/google-subsidiary-in-russia-to-file-for-bankruptcy-11652876597?mod=livecoverage_web).
Russia Takes First Steps to Withdraw from WTO and WHO: Russian State Duma Deputy Speaker Pyotr Tolstoy confirmed on Wednesday that the Foreign Ministry had sent a list of international organizations that “bring no benefit” to Russia; the Duma will “analyze them and… propose to withdraw.” Tolstoy added, “the next step is to withdraw from the WTO and the WHO, which have neglected all obligations towards our country.” (https://www.politico.eu/article/russia-takes-first-steps-to-withdraw-from-wto-who/).
Russia Expels Canadian Broadcaster: On Wednesday, the Russian government moved to close Canadian media company CBC’s Moscow bureau and strip its journalists of visas and accreditation. The move is seen as retaliation for Canada’s decision to remove RT and RT France from the list of non-Canadian programming services and stations authorized for distribution in Canada. CBC executives condemned the development and confirmed that the company would continue covering Russia from outside the country. (https://www.cbc.ca/news/world/russia-closes-cbc-bureau-1.6457668).
Russia Expels French, Italian, Spanish Diplomats: The Russian Ministry of Foreign Affairs announced on Wednesday that it was expelling 34 French diplomats, 27 Spanish diplomats, and 24 Italian diplomats in response to expulsion of Russian diplomats by those countries. The Spanish officials have one week to leave the country, while the French diplomats have two weeks. (https://www.forbes.com/sites/dereksaul/2022/05/18/russia-expels-french-italian-and-spanish-diplomats-in-hostile-act/?sh=4822d6835c66).
Soviet-Era Car Brand Returns at Former Renault Plant: The Mayor of Moscow announced on Wednesday that the previously defunct Soviet-era Moskvich car brand would be returning to production at a facility previously used by French automaker Renault. Renault announced the sale of its Russian business earlier this week. The Mayor added that Moskvich will attempt to retain as many employees from the previous facility as possible and source parts from Russian producers. (https://www.cnn.com/2022/05/17/business/renault-moskvich/index.html).
UN Estimates Ukrainian Economy Will Be Reduced by 50 Percent: In a Wednesday report, the UN said that it expects the Ukrainian economy to contract by 50 percent, and reconstruction of the country could cost anywhere between $250 billion and $500 billion. (https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-05-18).
Russia Seized 113 Planes from Aircraft Leasing Company Post-Invasion: On Wednesday, AerCap Holdings, an aircraft leasing company that is the largest owner of jets in the world, stated on Wednesday that it lost 113 jets shortly after the invasion of Ukraine due to Russian government aircraft seizures. The company was able to recover 22 jets before they were seized, but still had to report a $2.7 billion pre-tax charge on its first quarter earnings statements. (https://www.cnn.com/2022/05/17/business/aercap-russian-planes-sanctions/index.html).
Russian Companies Experiencing Higher Shipping Costs: A Wednesday Wall Street Journal report showed that sanctions on Russia have made it difficult to source products using previous supply chains, due to a combination of increased shipping costs due to restrictions on modes of transport for European suppliers and exploring new supply chains in central and east Asia. (https://www.wsj.com/articles/how-russian-businesses-are-skirting-sanctions-11652828497?mod=livecoverage_web).
Analysts See Difficulties in Russian Energy Markets: Oil and gas industry analysts have reported frequent shutdowns and divestment from energy extraction projects in Russia, indicating that Russia will face difficulty in meeting its oil and natural gas extraction goals in the coming years, according to a New York Times report released on Wednesday. (https://www.nytimes.com/2022/05/18/business/russia-energy-oil-gazprom-lng.html).
International Gymnastics Federation Bans Russian Gymnast for 12 Months for Pro-War Symbol: On Wednesday, the International Gymnastics Federation banned Russian gymnast Ivan Kuliak from competition for one year after he wore a “Z” symbol, widely known as a signal of support of the Russian invasion of Ukraine, on the podium next to a Ukrainian gymnast at a meet in Qatar. Kuliak must also surrender his bronze medal and any prize money from the competition. (https://www.cnn.com/2022/05/18/sport/ivan-kuliak-banned-russian-gymnast-spt-intl/index.html).
Putin Discusses Foreign Energy Sanctions in Industry Meeting: During a Tuesday meeting with representatives from the Russian energy industry, Russian President Vladimir Putin stated “European countries continue to introduce new sanctions on oil and gas markets. All of this is leading to inflation, but instead of admitting their own mistakes, they’re looking for someone to blame.” He added, “the Europeans recognize that they cannot completely give up on Russian energy resources.” (https://www.cnn.com/europe/live-news/russia-ukraine-war-news-05-17-22/h_03a854fbe6d71633d70f78e96d17a81c).
Russia Reduces Regulatory Standards as Automakers Cease Operations in the Country:On Tuesday, Russia introduced a Presidential Decree that reduced regulatory requirements for cars produced in Russian territory. The new rules now permit the sale of cars without airbags, antilocking brakes, and seatbelt emergency locking retractors through February 1, 2023. The decree also reduces emissions standards. The move comes as major foreign automakers announced the suspension of operations in Russia. (https://www.cbsnews.com/news/russia-ukraine-war-sanctions-putin-safety-environmental-standards-cars-airbags/).
Russian SPACs Still Trading in New York:Though US stock exchanges have suspended trading on almost all Russian stocks listed in New York, two special purpose acquisition companies (“SPACs”) owned by Russian businessman Ivan Tavrin have continued trading normally on US exchanges, according to Wall Street Journalreports on Tuesday. Tavrin is not currently sanctioned, but is considered to be a close ally of Russian President Vladimir Putin. (https://www.wsj.com/articles/russian-media-moguls-spacs-avoid-u-s-trading-suspensions-11652785200?st=qryeapnhimdj4vk&reflink=desktopwebshare_permalink).
Zelenskyy Speaks with German Chancellor: On Tuesday, Ukrainian President Volodymyr Zelenskyy said that he spoke with German Chancellor Olaf Scholz to discuss the military situation on the front lines of Ukraine, along with “further pressure on Russia [and] sanctions increase.” (https://www.reuters.com/world/europe/ukrainian-president-german-chancellor-discuss-war-russia-sanctions-2022-05-17/).
Russia Expels Finnish Diplomats: Continuing a trend of tit-for-tat diplomatic expulsions, the Russian government announced on Tuesday that it would expel two Finnish diplomats in retaliation for Finland’s decision to expel two Russian diplomats in April. (https://www.rferl.org/a/russia-expels-finnish-diplomats/31854651.html).
Russia Withdraws from Council of the Baltic Sea States: On Tuesday, the Russian government released a statement saying it was withdrawing from the Council of the Baltic Sea States (“CBSS”), saying, “NATO and EU states within the Council rejected the equal dialogue and the principles that this Baltic regional structure was created upon, and they gradually turn the council into an instrument of anti-Russian politics.” The move comes after Sweden and Finland announced their intent to join NATO. (https://tass.com/politics/1452051).
Ukraine Signs $100 Million Loan Agreement with Japan: On Monday, Ukraine and Japan signed a $100 million loan agreement intended to support vulnerable populations in Ukraine following the Russian invasion. The loan is for 30 years at a one percent interest rate with a 10-year grace period. (https://www.reuters.com/world/ukraine-signs-agreement-with-japan-100-million-loan-2022-05-16/).
New Russian Legislation Refuses to Fulfill EHCR Decisions Post-March 16: On Monday, members of both houses of Russian parliament introduced legislation stating that Russia would no longer be bound by European Court of Human Rights (“ECHR”) decisions issued after March 16, 2022. The bill also reportedly contains mechanisms “to ensure Russian citizens’ basic rights, freedoms and legitimate interests.” (https://tass.com/politics/1451633).
New York Times Profiles Challenges in Sanctioning Putin’s Family: On Monday, The New York Times released a profile of Vladimir Putin’s secretive family life and how it is impacting sanctions programs. The profile describes a fractured family life, with one dissolved marriage, one alleged mistress, two publicly identified daughters and four alleged children from other relationships; it notes that effectively sanctioning this complicated web of individuals and properties scattered across several countries is difficult. (https://www.nytimes.com/2022/05/13/world/europe/putin-family-wealth-sanctions.html).
Russian Ambassador to the US Claims US Will Be Drawn Into Ukraine Conflict: Speaking on Russian television on Saturday, Russian Ambassador to the US Anatoly Antonov said the “US is being drawn deeper and deeper into conflict with the most unpredictable consequences for relations between the two nuclear powers.” The statement likely references new shipments of military equipment from the US to Ukraine. (https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-05-14/card/russia-s-ambassador-to-u-s-says-washington-increasingly-drawn-into-conflict-CpNQt5qGDlykp0kJy64G).
Russia Advises Against Travel to UK Citing “Unfriendly” Visa Stance: The Russian Foreign Ministry alleged Russian visa applications for the UK were being delayed because Britain was giving higher priority to Ukrainian refugees. A spokesperson for the UK Home Office contested the allegations. (https://www.business-standard.com/article/international/russia-advises-against-travel-to-uk-because-of-unfriendly-visa-stance-122051301632_1.html).
Russian Shipping Activity Still Strong, Despite Sanctions: According to shipping tracker Refinitiv, Russian crude oil shipments climbed to 25 million metric tons in April, up from 24 million metric tons in December. These trades are usually set well in advance via contract, which companies are attempting to not break. Tracking by Lloyds List Intelligence shows similar trends in bulk shipping. This situation may change as a result of possible EU energy sanctions. (https://www.nytimes.com/2022/05/13/business/economy/russia-shipping-sanctions.html).
Russia to Cease Exporting Electricity to Finland: On Friday, the Finnish subsidiary of Russian state-owned utility company Inter RAO announced that Inter RAO would stop exporting electricity to Finland due to a lack of payment since May 6. Finnish grid operator Fingrid said that there was no threat to Finnish power supplies, even with the shutoff. (https://www.reuters.com/business/energy/russias-inter-rao-halt-power-exports-finland-due-lack-payment-2022-05-13/).
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