NIAS Area Studies
PAKISTAN READER
Photo : Himars, Kongsberg, Bayraktar TB2/Baykartech, Neptune/Military today, S-300/Wikimedia,
IN FOCUS
By Padmashree Anandhan
Missile systems in Ukraine war: A profile
The Ukraine war which began in 24 February nearing 250 days of war has led to expansion and escalation in different fronts. While humanitarian violations, economic fallouts, food insecurity and energy shortage and refugee crisis have impacted the globe. The main trigger to the advancement of war is the involvement of the West and aggressive approach of Russia that led to the emergence of the missiles, weapons, and new technologies. The following commentary provides a profile of the missile systems and drone technologies used by the US, the UK, Russia, and remaining European member states in the Ukraine war.
Drones
Kamikaze drones have been used by Ukraine and Russia in different forms. In September, Russian forces were observed to be using the Shahed -136 suicide drones imported from Iran to launch attacks in Odesa command post of Ukraine. Similarly, Ukraine has also been supported by the US and Turkey with Switchblade and Bayraktar TB2 drones to counter Russia. The three drone models categorised as loitering drones can precision strike the target, of which the Shahed-136 is considered the most lethal with a highest range capacity of 2500 kilometres (kms) whereas Switchblade and Bayraktar TB2 drones ranges at 300-400 kms.
Shahed-136
The drone was first launched by Iran Aircraft Manufacturing Company (HESA) in 2021 has a conventional two-stroke piston engine which acts as power to the propeller. Weighing close to 40 kilograms (kg), has a delta wing, with a capacity to carry a warhead ranging 30 to 50 kg and travel at 185 kilometres speed per hour. Although the Shahed-136 drone has a “slow and low flying” feature and faces a limitation of GPS jam, it is fixable and an cost effective option instead of cruise missiles costing GBP 17,800.
Switchblade drones
Switchblade 600 and 300 version are featured for its high-precision strike, loitering endurance and anti-armour warhead to engage larger targets from longer distance. The Switchblade 600 has a better range of 40 kms compared to 300 of 10 kms, endurance of up to 40 minutes, with a next generation technology where the targets can be set of from the “touch screen tablet based fire control unit.” It comes with a flexibility to be deployed from any air vehicle, ground vehicle, water craft and multipack launcher. The production has now been ramped up by the US to support Ukraine forces.
Bayraktar TB2 drones
Bayraktar TB2 is produced by a Turkish based campany Baykar which excels in UAV and AI technology. The drone is a Medium Altitude Long Endurance (MALE), which used for intelligence, surveillance, reconnaissance, and armed attack missions. Key feature of the drone being Baykar Real Time Imagery Transmission System (BGAM) giving a real time image and allows multiple users to monitor the area. Unlike Switchblade drones, its endurance beats out with 27 hours and three minutes to stay up in air with triple redundant avionic system. It is one of highly deemed aircrafts exported by Turkey to Qatar, Ukraine, and Azerbaijan, functionable with four lase guided ammunition and a capacity to carry 700 kgs to carry out “surgical-precision strikes with lesser damage to areas nearby. It will be a costly option for Ukraine as one Bayraktar costs GBP 1.7 million.
Air defence systems
Iris-T
The manufacturing of IRIS-T air defence system began in 1990’s by the Diehl Defense company in Germany conducted the final tests in 2021. One system costing EUR 140 million has a capacity to provide medium-range, high-altitude cover for smaller cities and armies. The IRIS-T surface launched missile (SLM) system consists of three vehicles including, a missile launcher, a radar, and a fire-control radar with integrated logistics. Key feature of the missile system includes, a multifunction radar with 250 km range, and elevatable up to 90 degrees. A SLM launcher with high-firing capacity, multiple-targeting, and 40 km range. Apart from this it provides airspace surveillance, “threat evaluation, weapon assignment and multi-datalink capability.” Out of four systems promised to Ukraine, one has been delivered by Germany.
NASMAS system
The National Advanced Surface to Air Missile System is a product of Kongsberg, Norway which provides a medium range ground-based air defence system. It consists of command post, an active 3D radar, electro-optical, infrared sensor and missile canisters with AMRAAM missiles. The important feature of NASMAS is its unique “hard-realtime” communication grid which ensure minimum delay maximum utilization of the missile system and similar to drone, it provides a flexibility to protect “Air Bases, Sea Ports, Populated Areas, other High-Value Assets and Army Forces.” NASMAS has been currently used by 12 country’s air force and extremely depended by the US since 2005.
F-35
One of the supreme air fighter jets produced by the US, after the fourth generation F-16s and F-15Es, it is the F35 edition which has added strength to national security and global partnership. The F35s are designed with the most powerful engine of Pratt and Whitney F135 to operate at a speed of Mach 1.6 that can be launched at a long range while carrying JASSM or LRASM internally with ability to dissuade near opponents. With its advanced sensor suite and fusion capacity, it can locate the enemy forces, jam radars, disrupt strikes and augments the survivability. Currently the F35’s along with the fourth generation fighter jets are used part of NATO’s Steadfast Noon exercise.
Missiles
S-300 missiles
A soviet era, surface to air missile operating since 1978 can be loaded in aircraft and UAV’s to improve the missile defence capability. It was produced to meet the challenge of long-range cruise missiles and was put to halt in 2016, after the Crimean annexation, Russia was seen to be deploying the S-300 missiles. Its shelf life being 40 years, so far it has used 5V55K, 5V55R, 48N6 modes and can carry four missiles at a time. The operation is carried out using “high-explosive fragmentation warheads” to activate the attack and destroy targets. After the Crimean annexation, the Ukraine war has brought these missiles back into ground.
HIMARS
Similar to IRIS-T, it forms part of the Multiple Rocket Launch System (MRLS), capable to carrying six GMLRS rockets and one TACMS missile. With advanced technology, can target at a range of 300 to 500 km to carry out long range precision strikes. Compared to other western artillery such as M777 Howitzer and Russia’s BM-30 Smerch, 2A36 Giatsint-B howitzer, HIMARS system exceeds the in terms of range and target precision. For a higher range capacity, its mobility and survivability are done easy through shoot and scoot approach. The HIMARS rocket system has been the game changer for Ukraine since August to launch offensive against Russia.
Cruise missiles
Neptune anti-ship missiles
The Neptune anti-ship missile gained its popularity after taking down the Maersk Ship of Russia. A Ukraine made cruise missile like Russia’s Kh-35U was first tested in 2016. Its key features being its target range of 280 km, deploy ability from sea, land and air, inbuilt navigation system with radar and travels at a subsonic speed. Overall Ukraine has developed the Neptune missile system along with the Ukrainian coastal defence system equal to Russia, but faces limitations in terms of developing a radar and financial restrictions.
Kh-101/KH-102
Kh-101 are the conventional cruise missiles with nuclear capability produced by Russia. The main aim of this built is to counter defeat air-defence systems using a low-fly range, “terrain-hugging altitude” to prevent radar system detection. Kh-101 has the capacity to carry warhead and Kh-102 is predicted to carry 250 kt of nuclear load. These cruise missiles have been part of Russian air force since 2012 taking part in many combat operations such as ISIS attacks in 2015. The features of the missiles are TRDD 50A turbofan engine which gives it up to Mach 0.78 speed, a massive range of 2500 to 2800 km and has an endurance of 10 hours which are less compared to switchblade drones. it's accuracy is also seen as an advantage due to its operability using electronic GLONASS satellite navigation which was designed by the Soviet engineers.
References
“Neptun-Anti-ship cruise missile,” military-today, 2022
“HIMARS: Protecting our soldiers with combat proven reliability,” lockheedmartin, 2022
“S-300,” missilethreat.csis.org, 2021
“F-35 Lightning,” f35, 2022
“NASAMS AIR DEFENCE SYSTEM,” Kongsberg, 2022
“Explainer: Germany's IRIS-T air defense system,” Deutsche Welle, 12 October 2022
“How are 'kamikaze' drones being used by Russia and Ukraine?,” BBC, 17 October 2022
“Bayraktar TB2,” baykartech, 2022
“SWITCHBLADE® 300,” avinc, 2022
“SWITCHBLADE® 600,” avinc, 2022
“Shahed-136 Drone (“Geran-2”),” rferl.org, 2022
“All about Shahed-136, Iran’s ‘kamikaze’ drone that Russia is using to strike Ukraine,” The Print, 27 September 2022
War in Ukraine: Day 247
By Madhura S Mahesh
War on the Ground
On 28 October, a spokesman for the Ukrainian Air Force Command Yurii Ihnat reported that they have downed more than 300 Shahed-136 kamikaze drones. Ihnat said: "Since September 13, when the first Shahed-136 kamikaze drone was shot down in Kupiansk, Kharkiv region, until today we have more than 300 downed Shahed-136 kamikaze drones" HE highlighted that the use of these drones has slowed down. Ihnat suspects that Russia does not have the same stock of drones it had back in September. He added that Russia is monitoring the performance and damage caused by the drones to Ukraine’s air defence and using them only at night when they can only be shot down by weapons with radar systems. Ihnat said that they do not know the total amount of drones received by Russia and if they are being able to manufacture them.
On 28 October, Ukraine’s General Staff of the Armed Forces reported that the Ukrainian air force launched 24 strikes on Russian positions. These strikes hit 20 Russian ammunition and military equipment clusters and four air defence missile system. The strikes also hit a Russian command post and six soldiers.
On 28 October, the Donetsk Head of Regional Military Administration Pavlo Kyrylenko reported that in all the de-occupied regions preparations for winter are taking place. Kyrylenko said that in 15 territories gas supply was restored, and key infrastructure and social infrastructure were restored in 10 communities. He update that the power supply between Lyman and Sviatohirsk has been connected and that the Administration is restoring the internal supply lines.
On the same day, Ukraine’s Prime Minister Denys Shmyhal said that LLC Gas Supply Company Naftogaz Trading will start acquiring gas to help Ukraine survive winter. Shmyhal outlined that the purchase will be made keeping in mind the allocated budget of UAH 12.7 billion. Currently, Ukraine has pumped 14 billion cubic meters and stored winter use. Shmyhal noted that this would have been enough if it was a normal winter, but with the uncertainties of war, additional reserves are needed to prevent a shortage in winter.
On 28 October, the Kherson region’s Deputy Head of the Administration Kirill Stremousov said that the Russian forces in the region are stopping all attempts by Ukrainian Armed Forces to enter the region. Stremousov reported that fighting between the two forces is ongoing in the northern Kherson region and in the Nikolaev direction. He said that Russian forces are in control of the situation and that: "We are defending. So far, no one is moving anywhere.”
The Moscow View
Claims by Russia
On 28 October, the Central Bank of Russia estimated that the partial mobilization policy will have a disinflationary effect on the economy but will increase inflation in the supply side of the economy. The disinflationary effect is due to the decrease in consumer demand and acts as a deterrence to inflation. When the supply-side inflation is looked at, the Central Bank said that due to increased restrictions on manufacturing and lack of labour will drive up inflation and turn the disinflationary effect into a pro-inflationary one. The Central Bank announced its projection for the key inflation rate to be 7.5 per cent. the Bank also announced that there need not be compulsory conversion to rubles from foreign currency. It is of the view that: "Citizens should have a choice - to leave their funds in foreign currency or convert them into rubles."
On 28 October, Russian Defence Minister Sergey Shoigu informed President Vladimir Putin that the partial mobilization exercise has come to an end. Shoigu stated that the 300,000 personnel target has been reached and there have been no new conscriptions and no additional assignments planned. Shoigu reported that now enlistment offices will replenish the military with volunteers and candidates for service under contract. Currently out of the total 300,000, 218,000 are in training centers and 82,000 have been deployed to fight in Ukraine. He highlighted that all of them who have provided their service to the forcers will be designated as combat veterans and get social protection benefits.
On 28 October, Russia’s Foreign Ministry published a report looking into the alleged abuse of the humanitarian corridor under the Black Sea initiative. The Ministry noted that despite a few initial struggles, the movement of cargo has increased at a rapid pace. It said: "If three weeks were needed to transport the first million tons, now it takes slightly more than a week to ship the same volume. Such high rates and efficiency are largely achieved at the expense of the extreme load on our specialists."
The Ministry addressed the blockade and congestion of ships in the corridor are being done to create pressure on Russian officials to speed up the checks and not be through in its measures. the ministry also included that the ongoing investigations of the attack on the Crimean Bridge are a sign that the corridor is being abused as the bridge served as a delivery route to the ports. The report highlights how the distribution of cargo does not line up with the agreed humanitarian goals. It states how: "Half of all deliveries went to the European Union and such developed countries as the UK, Israel and South Korea, while the needy countries, particularly, Somalia, Ethiopia, Yemen, Sudan and Afghanistan, received only 3% of food products, mainly via the UN World Food Programme (WFP). Due to this, the UN leadership even re-categorized this humanitarian initiative as a commercial one, stressing the importance of stabilizing global food prices." It criticized these shipments by comparing them with their own where Russia has delivered: “About 10.5 mln tons of grain (77% wheat) have already been sent to Asian (62%) and African (33%) countries."
The West View
Responses from the US and Europe
On 28 October, The Pentagon announced a new military assistance package to Ukraine to support its fight against Russia. The package includes USD 275 million High Mobility Artillery Rocket System (HIMARS) launchers, small arms and satellite systems. The US Defence Secretary Lloyd Austin said that these weapons would make “such a difference to the battlefield” and that this support would continue. This package currently entails the US’s overall security assistance of more than USD 18.5 billion, since the beginning of the invasion of Ukraine by Russia.
On 28 October, the executive director of the International Energy Agency (IEA) Fatih Birol said that Russia would lose the energy battle it is citing against the West if it continues its aggression against Ukraine. Commenting on the loss of the European oil market, Birol mentioned that Russia lost its “biggest client” and acknowledged that Russia would not be able to recover this “big chunk” of the market anytime soon. Speaking of the international gas crisis, he said that the issue is driven by the overdependency of Russia’s reserves. Warning that the winter might prove costly for the European states, he remarked that if the European countries could “emerge as a strong buyer”, they could sustain customers from around the world.
On 27 October, the CEO Haluk Bayraktar of the Baykar defence company stated that the construction of the drone plant in Ukraine will finish in two years’ time. the Bayraktar TB2 played a crucial role in the initial attacks by Russia by helping Ukraine defend itself. Speaking to Reuters at the SAHA define expo in Istanbul, the executive said: “Right now we have architectural design. The detailed design phase is finished. And we will move ahead with construction actually… within two years we would like to finish it.”
On 28 October, Norwegian Security Services formally charged a man of allegedly being a Russian Spy. Earlier this week the police arrested a university lecturer for being a spy and have now revealed that he has lied about his identity. According to security services he has adopted an alias as a 37-year-old man called José Assis Giammaria from Brazil. In reality, he is a 44-year-old man named Mikhail Valerievich Mikushin. He is being accused of collecting illegal intelligence linked to state secrets. The lawyer of the accused says that her client has denied all the charges. When the media asked the Russian Embassy in Oslo for a comment, it said that they do not who the man in question is and did not comment on the new information released by the security services.
On 28 October, Canada’s Prime Minister Justin Trudeau said that Canada will raise funds for Ukraine by selling bonds. The bonds will be government-backed five-year bonds that will be available for purchase in sovereign banks. Canada is the first country to take this route to raise funds. there has been no additional information regarding the date of the sale and if the government has put a cap on the number of bonds that can be purchased. Additionally, Canada has imposed new sanctions on 35 senior officials from the Russian energy sector which includes officials from Gazprom.
On 28 October, Poland’s Prime Minister Mateusz Morawiecki announced that the tender for Poland’s first Nuclear Poer Station will be awarded to Westinghouse, a US-based firm. The entire project is USD 40 billion and Westinghouse will be taking over the first part of it. Morawiecki stated that this will be formally passed by the cabinet on 02 November. The government has expressed its desire to have this running by 2033 and simultaneously look into expanding this project to open more power stations. The US has applauded this decision and has said that this is a major step in expanding the two countries relations. US Energy Secretary Jennifer Granholm said: "I think it sends a clear message to Russia that the Atlantic alliance stands together to diversify our energy supply... and to resist Russian weaponisation of energy,"
The Global Fallouts
Implications of the Ukraine war
On 27 October, International Atomic Energy Agency's (IAEA) Director General, Rafael Grosso said that engineers were working at the Zaporizhzhia Nuclear Power Plant (ZNPP) to stabilize the plant’s external power supplies. He assured that even though the plant was still vulnerable, it had received the power required for reactor cooling and other operations for the last ten days without any interruption. The switchyard of the nearby thermal power plants are also prepared to provide backup emergency power if necessary. However, Grossi elaborated on the vulnerability of the plant as only one 750 kilowatts external power line is currently operational instead of four, as had been before Russia's invasion. Grossi said that he considers ZNPP as a Ukrainian plant, even though Russia has claimed complete control over it, and it has more Russian people working at the plant. Grosso also addressed that the IAEA is looking into the ‘dirty bombs’ claim by Russia at the behest of the Ukrainian government. The IAEA officials will be visiting two nuclear plants under the IAEA safeguard to conduct investigations regarding this claim. Speaking at the closed-door UNSC meeting, Grosso said that the results of the investigation will be analysed and promptly published to the public
On 29 October, Global Times reported that China and Russia will strengthen their bilateral ties. In a recent report on this issue, Putin said: As for Russian-Chinese relations, they have reached an unprecedented level of openness, mutual trust and effectiveness over the past years, past decades... I am sure that based on that strong foundation, we will steadily move forward. At a media briefing, China's Foreign Minister, Wang Wenbin reiterated that sentiment and said that China appreciates Putin's positive remarks. He also said that China will continue to share governance experience, enhance corporations in various fields and support each other in the path of development.
On 27 October, the Russian embassy in India said that Indian Foreign Minister Subramanyam Jaishankar will be visiting Russia on 08 November. He will meet Russia's Foreign Minister Sergey Lavrov. The embassy said that the two leaders will "discuss the current state of bilateral relations and the international agenda."
On 27 October, Saudi Arabia's Energy Minister Prince Abdulaziz Bin Salman held meetings with the Energy Ministers of France and Greece. Abdulaziz and French Minister, Agnes Pannier-Runachar discussed the importance of increasing the stability of the international oil market and continuing their close cooperation to address the upcoming challenges, especially in the fields of clean hydrogen and renewable energy. The two sides reaffirmed their faith in the 2011 Bilateral Cooperation Agreement in Peaceful Uses of Nuclear Energy and also discussed the opportunities in petrochemicals, electricity, energy efficiency, innovation, decarbonization technologies and other areas of mutual interest. Abdulaziz, along with Greece's Energy Minister Kostas Skrekas established a bilateral High-Level Working Group that will facilitate the implementation of an MoU signed between the two countries in July 2022. The two leaders expressed the desire to stabilize the international oil market, continue close communication and ensure secure and reliable supplies of energy in the international market.
On 27 October, UNESCO reported with the assistance of the UN Satellite Centre UNOSAT that it has been keeping track of the on-ground damage to cultural sites in Ukraine with the help of satellites. So far, 207 cultural sites in Ukraine have been damaged since the Russian invasion. UNESCO's cultural and emergencies director, Krista Pikkat said that while the situation is bad, it might get even worse and that it was imperative for UNESCO to have information on the sites ready for recovery.
References
“Donetsk region’s de-occupied areas make preparations for winter period Donetsk region’s de-occupied areas make preparations for winter period,” Ukrinform, 28 October 2022
“Ukrainian air forces launch 24 strikes on enemy positions,” Ukrinform, 28 October 2022
“Budget envisages UAH 12.7B for natural gas purchase for winter - Shmyhal,” Ukrinform, 28 October 2022
“Ukrainian forces down over 300 Shahed-136 kamikaze drones since Sept 13,” Ukrinform, 28 October 2022
“Kherson region told about the defense of the Russian army,” Lenta.ru, 28 October 2022
“The Central Bank assessed the impact of partial mobilization on inflation,” Lenta.ru, 28 October 2022
“Bank of Russia’s Chief rules out mandatory conversion from foreign currency to rubles,” TASS, 28 October 2022
“Shoigu tells Putin partial mobilization over in Russia,” TASS, 28 October 2022
“Russian Foreign Ministry points to misuse of grain deal’s humanitarian corridor,” TASS, 28 October 2022
“Pentagon announces new military aid for Ukraine to fight Russia,” PressTV, 28 October 2022
“'Russia will lose the energy battle,' says IEA chief Fatih Birol,” euronews, 28 October 2022
“Norway charges man accused of being Russian spy,” BBC, 28 October 2022
“Canada raising money for Ukraine with sale of bonds,” Reuters, 28 October 2022
“Poland Picks US Firm To Build 1st Nuclear Power Station: PM,” Barrons, 28 October 2022
“Turkey’s Baykar to complete drone plant in Ukraine in two years,” EURACTIV, 28 October 2022
“China and Russia reaffirm deepened relations at all levels, ‘embodiment of major-country diplomacy',” Global Times, 28 October 2022
“Indian foreign minister to visit Russia on Nov 8 - embassy,” Reuters, 27 October 2022
“Saudi energy minister discusses oil market stability with French, Greek counterparts,” Saudi Gazette, 27 October 2022
“Update 121 – IAEA Director General Statement on Situation in Ukraine,” iaea.org, 27 October 2022
“UN keeping track of damage to Ukrainian cultural sites with before-and-after satellite images,” euronews, 28 October 2022
IN BRIEF
By Sai Pranav
NORTHERN IRELAND
To hold another election after the government devolved
On 28 October, BBC reported that Northern Ireland’s Secretary of State, Chris Heaton-Harris, said that he would call an assembly election within 12 weeks as per the legislation. Since the election in May, the government was devolved due to the Democratic Unionist Party (DUP) refusing to take up the position in the government in Belfast. The DUP had blocked the election result due to the uncertainty in the Northern Ireland Protocol, which was signed following Brexit. DUP leader Sir Jeffrey Donaldson said that his party would not participate until the issues around the protocol were resolved. The region’s government has a joint-authority system which enables multiple parties to form the government. Heaton-Harris said that an election must be conducted again in Northern Ireland to move forward. The exact date of the election is yet to be confirmed by Northern Ireland’s Secretary of State. (“NI Assembly election to be called but no date set,” BBC, 28 October 2022)
NORWAY
Equinor rakes sizeable profits amid energy crisis
On 28 October, THE LOCAL no reported on profits of Norway’s energy company Equinor earned between July to September as a result of the energy crisis in Europe. Its net profit for the third quarter grew from USD 1.4 billion in 2021 to 9.4 billion in 2022. The price of a single oil barrel was estimated to be 34 per cent higher than in the 2021 third quarter. Norway has been the primary supplier of fossil fuels to Europe after Russia stopped supplying it. Due to the high demand, Norway has increased its annual production by 11 per cent more than in 2021. The partially state-owned company does not face windfall taxes as most of the profits go to Norway’s treasury, and the Nordic countries rely on their energy as the main source of revenue. Equinor is also heavily taxed under Norway’s laws. (“Norway’s Equinor sees profits jump due to soaring oil and gas prices,” THE LOCAL no, 28 October 2022)
REGIONAL
The EU imposes ban on import of combustion engine cars
On 27 October, European Parliament and the Council members agreed on an emission limit on new cars. By 2035, all new cars and vans sold in the EU should be emission-free. Under the rule, the new cars sold in the EU in 2030 should have 55 per cent fewer emissions than in 2021. The production of combustion engine cars is being replaced by the manufacturing of electric cars by many car manufacturers. The ban on combustion engine cars will make electric cars cheaper, and people are going after cleaner and greener leading to decrease in the emission rate over the years and help reduce global warming. (Elli-Alina Hiilamo and Timo-Pekka Heima, “An agreement was reached in the EU: The sale of new combustion engine cars will be banned from 2035,” yle.fi, 28 October 2022)
Rishi Sunak first phone conversation with Macron
On 28 October, the UK’s new Prime Minister, Rishi Sunak, held a phone call with France’s President Emmanuel Macron to discuss deepening both countries’ relations in defence, energy, the war in Ukraine, climate change and migration. Sunak and Macron agreed to form a decisive package to stop illegal human trafficking in the English Channel. The details of the package were not mentioned in the conversation. The predecessors of Sunak had rough relations with Macron in discussing the issue. Downing Street and the Elysee predict that Sunak and Macron will have an amicable relationship going forward. (Jessica Parker, “Rishi Sunak and Emmanuel Macron vow to co-operate on Channel crossings - No 10,” BBC, 28 October 2022)
Orban and Garibashvili discuss on energy crisis in Budapest
On 27 October, When Hungary’s the Prime Minister of Hungary Viktor Orbán met his counterpart from Georgia Irakli Garibashvili in Budapest, the two leaders signed a strategic partnership agreement. In a joint statement released they stressed that increased supply in the energy sector can drive down prices, Orbán said, “...is fighting inflation, which is largely due to high energy prices.”. The plan is to build a huge electricity pipeline system to bring energy from Azerbaijan to Hungary via Georgia and Romania. This move would help Hungary to replace large quantities of natural gas and gas that is currently used to generate electricity in Hungary. He also added that it’s a very discriminatory decision was made in Brassels when Moldova and Ukraine were granted EU candidate status, but Georgia was not and stated that Hungary would continue to support the granting of candidate status to Georgia as soon as possible. (Barbara Bene, “Viktor Orbán Calls for Energy Diversification,” Hungar today, 28 October 2022)
INTERNATIONAL
The Inflation Reduction Act threatens Europe's transatlantic trade relations
On 26 October, the US introduced the Inflation Reduction Act, which offers tax cuts and energy benefits for companies in the US. The Act was disagreed by German Chancellor Olaf Scholz and French President Emmanuel Macron. The US encourages its consumers to buy all products, including cars from its own manufacturers. The “Buy American” protectionist sentiment fueled by the Act has resulted in companies vacating Europe to move towards the US. Europe is criticized for its expensive energy rates than the US. Macron has called against the Inflation Reduction Act and said that Europe should start the “Buy European Act”, which the EU and Scholz disagree with. The EU also formed a new “EU-US Taskforce on the Inflation Reduction Act” to discuss the issue amicably with the US. (Hans Von Der Burchard and Clea Caulcutt, “Scholz and Macron threaten trade retaliation against Biden,” POLITICO, 27 October 2022)