Photo : Russia's Economic Minister, Maxim Reshetnikov. Source: Roscongress Foundation/AP
Photo : Russia's Economic Minister, Maxim Reshetnikov. Source: Roscongress Foundation/AP
By Fleur Elizabeth Philip
WAR ON THE GROUND
On 19 June, France 24 reported that Russia and Ukraine executed another round of the exchange of prisoners following the peace talks in Istanbul. Both countries have agreed to exchange 1000 prisoners each, which includes all injured, ill and those below 25. In response, Ukraine’s President Volodymyr Zelenskyy said that all those who were captured by Russia have returned. Most returned were found to be suffering from dystrophy, ulcers, vision problems, musculoskeletal disorders and cardiovascular diseases.
On 19 June, Ukrinform reported that Russia launched 104 Shahed-type drones and decoy UAVs of various types in various regions across Ukraine. They include, Millerovo, Kursk, Orel, Primorsko-Akhtarsk, Cape, Chauda, as well as Crimea. To counter this attack, Ukraine's defence forces have neutralised 88 Russian drones of the 104 launched. It was repelled by UAVs, anti-missile troops, electronic warfare and mobile fire groups.
THE MOSCOW VIEW
Claims by Russia
On 19 June, the Associated Press reported that the Russian central bank has raised its interest rates by two per cent, coming to 21 per cent, intending to reduce inflation, as the majority of spending lies in the defence sector, following its fight with Ukraine. Russia's Economy Minister Maxim Reshetnikov warned that Russia was in the "brink of recession." The war puts a strain on the economy’s production of goods, and also on the increase in labour wages. The Central Bank said that the increase in domestic demand does not meet the supply of goods and services, and inflation, on the other hand, is rising, surpassing the Bank of Russia. The July forecasts showcase the increase in inflation, which will continue until December. The reason for the growth in the Russian economy comes from the boom in oil exports and the government spending. The majority of the expenditure goes into defence, leading to a rise in inflation. The central bank, to reduce inflation, has tried to increase the rates, which reduces the purchasing power for a consumer.
On 19 June, Russia’s Defence Ministry confirmed the return of Russian troops from the latest prisoner exchange. They did not mention the number of people, but they have released footage showing the soldiers chanting “Russia,” while carrying the flag.
THE WEST VIEW
Claims by Europe and the US
On 19 June, Reuters reported that as Denmark will take up the European Council chair, it will continue to push for Ukraine’s membership, despite Hungary not supporting the proposal. European Affairs Minister Marie Bjerre said in a press conference in Copenhagen that despite the mounting pressure on Ukraine's membership, Hungary is blocking it. Hungarian Prime Minister Viktor Orban strongly opposes the NATO and EU aid to Ukraine, as the Ukraine membership would destroy Hungarian farmers.
On 19 June, TASS reported that Hungary was open to hosting peace talks between Russia and Ukraine. Hungarian Foreign Minister Peter Szijjarto told reporters at the St Petersburg International Forum (SPIEF). Szjjarto said that during the outbreak of the war, he spoke to Russian Foreign Minister Sergei Lavrov and the head of the Ukrainian Presidential administration, Andrey Yermak, that Hungary is ready to host any negotiations, and has reaffirmed their offer.
On 20 June, Ukrinform reported that the EU looks to use the Russian frozen assets worth EUR 200 billion will be used as aid for Ukraine. The EU officials are considering using the assets from Euroclear in Belgium and creating a fund that will help Ukraine against its war with Russia. The purpose of making the fund is to use the assets on riskier investments, helping Ukraine bring risk-free returns for Ukraine. The finance ministers of the EU countries are to start discussions on helping Ukraine meet their financial needs for the FY 2026. The EU also plans to use the new defence scheme, SAFE, for the purchase of weapons for Ukraine.
References
“Russia’s central bank raises interest rate to 21% to fight inflation boosted by military spending,” AP, 19 June 2025
“Russia and Ukraine carry out another POW exchange,” France 24, 19 June 2025
“Denmark to push for Ukraine's EU membership during presidency,” Reuters, 19 June 2025
“Russia and Ukraine conduct another prisoner swap – MOD (VIDEO),” RT, 19 June 2025
“Hungary ready to host Russia-Ukraine talks — top diplomat,” TASS, 19 June 2025
“EU considering moving EUR 200B in frozen Russian assets to riskier investment fund – Politico,” Ukrinform, 20 June 2025
“Ukraine's air defence intercepts 88 of 104 Russian drones overnight,” Ukrinform, 19 June 2025