Daily Briefs


Photo : Christoph Soeder/dpa/Deutsche Welle

27 June 2023, Tuesday | NIAS Europe Daily Brief #554

War in Ukraine: Day 488 | Baerbock stresses on Ukraine War during the visit to South Africa

Lithuania to receive troops from Germany; H&M workers strike as the inflation in Europe peaks high

War in Ukraine: Day 488
By Sreeja JS

War on the Ground
On 26 June, Ukraine's Deputy Defence Minister Hanna Maliar wrote on telegram that Ukrainian defence forces have gained "tactical success'' in the east. She noted that Russian forces are engaged in an offensive in Lymansky, Bakhmutsky, Avdiyivskyi and Marinskyi. Meanwhile, Ukrainian defence forces began counter-offensive in Orekhovo-Vasylivna, Bakhmut, Bohdanivka, Yagidne, Klishchiivka, and Kurdyumivka. In southern Ukraine, counter-offensive continues in Melitopol and Berdyansk, increasing the regained area up to 17 kilometres. Tauri witnessed 148 intense Russian attacks. She also said that Ukrainian defence forces have regained Rivnopil, a village in southeastern Ukraine.

The Moscow View
Claims by Russia

On 26 June, RT News reported on the Defence Minister Sergei Shoigu's visit to the forward command post of the 'West' grouping of forces engaged in the war in Ukraine. According to the statement released by the Defence Ministry, Shoigu assessed the situation in the frontline and noted the effectiveness of Russian forces operating in Kharkov, says RT News. He also held discussions with the commander of the grouping, Colonel General Evgeny Nikiforov. 
 
On 26 June, meduza.io, quoting TASS, reported that the recruitment centre for Wagner Group in Novosibirsk and Tyumen has resumed work. The advertisement posters removed on 24 June were hung again. The PMC Wagner Center in St. Petersburg also resumed working, says meduza.io, the confiscated computers are also being returned. 

The West View
Responses from the US and Europe  

On 27 June, according to the Financial Times, Germany raised objections to the European Commission's plans to raid frozen Russian central bank assets for Ukraine's reconstruction. The European Commission plans to raise billions of euros by requiring financial institutions holding immobilized Russian assets to share profits for Ukraine reconstruction.  Financial Times reported that Berlin and other capitals have called for further reflection over the ideas due to the financial and legal risks it poses. EU spokesperson Christian Wigand said that EU leaders' summit in Brussels will provide further guidance on channeling Russian central bank assets to support Ukraine. The report also highlighted Canada's support for the proposal. 
 
On 26 June, the European Council decided to increase the European Peace Facility's  overall financial ceiling by EUR 3.5 billion, aiming to ensure long-term financial sustainability and predictability. The overall financial ceiling now totals more than EUR 12 billion (in current prices) following the decision. The EPF, established in March 2021, aims to finance actions to strengthen non-EU countries and regional organizations in military and defence matters. The EU has been supporting the Ukrainian Armed Forces through seven support packages along with several other European and African countries. 
 
On 26 June, the UK Defence Ministry in its update, Ukraine's progress in the northern and southern flanks of Bakhmut. According to the update, Russia lacks significant ground forces reserves to counter multiple threats from Bakhmut to the eastern bank of Dnipro River.
 
On 26 June, the Danish government started the training of Ukrainian pilots on F-16 jets, says AP News. Minister of Economy Lund Poulsen said that Denmark is also considering a donation of F-16 fighters to Ukraine.
 
On 26 June, Deutsche Welle reported on Germany's Foreign Minister Anna Baerbock's upcoming visit to South Africa on 27 June. The visit would focus on discussing South African stance on the Ukraine war and how the country can contribute to end Russian aggression and uphold the UN Charter. She said: "When the country of Nelson Mandela and Desmond Tutus raises his voice against injustice, the world listens." She hailed the peace initiative of President Cyril Ramaphosa and commented that the delegation "made it clear that the brutal war in Europe also affects Africa." 

References 
Hanna Maliar, "For the last week, " Telegram, 26 June 2023
"Ukraine regains control of Rivnopil in Donetsk region," Ukrinform, 26 June 2023
"Ukraine peace talks to begin in July - German state media," RT News, 26 June 2023
"Russia's defense minister visits frontline command post," RT News, 26 June 2023
"Recruitment centers for PMC Wagner resumed work in Novosibirsk and Tyumen," meduza.io, 26 June 2023
"Latest Defense Intelligence Update on the situation in Ukraine," Twitter, 26 June 2023
"European Peace Facility: Council agrees on second top-up of the overall financial ceiling by €3.5 billion," consilium.europa.eu, 26 June 2023
"Denmark to start the training of Ukrainian pilots on F-16s," AP News, 26 June 2023
"Baerbock focuses on Ukraine war during visit to South Africa," Deutsche Welle, 26 June 2023
"Germany pushes back against EU plan to raid frozen Russian assets," The Financial Times, 26 June 2023


In Brief
By Sneha Surendran and Prerana P

GERMANY
Lithuania to receive troops  
On 26 June, Germany’s Defence Minister Boris Pistorius said that 4000 troops will be deployed in Lithuania to guard the eastern borders. During a visit to Lithuania’s capital, Vilnius, he said: “Germany is ready to permanently station a robust brigade in Lithuania.” This comes after repeated requests from Lithuania for permanent combat troops from Germany. However, till recently, Germany had sidestepped . (“Germany to station 4,000 troops in Lithuania,” Deutsche Welle, 26 June 2023)

The far-right party wins the local election
On 25 June, for the first time, Germany’s far-right party, Alternative for Germany (AfD) won the local election held in Sonnenberg town in Germany. The Spokesperson Steffen Hebestreit stated: “Our country is shaped by values such as fairness, tolerance, decency and respect.” The victory of the AfD was widely criticized by the anti-racism campaigners, as the party falls under the scrutiny over is ties with extremists. The holocaust survivor Charlotte Knobloch, stated that the voters of the Sonnenberg town has made “a dangerous decision.” Further, the report mentioned that the AfD was founded on 2013, and had first entered the parliament along with its anti-migration campaign. The present-day governor Bodo Ramelow of the left party stated the victory of the AfD as threat to Germany due to its Western populism influence. Further the centre-right Christian Democrats, Friedrich Merz blamed the environmentalist Green Party for alienating voters. Finally, the Green party co-leader Ricarda Lang stated the victory of the AfD as: “a threat to democracy.” (“German government calls for tolerance after far-right party wins control of a country for first time,” AP, 26 June 2023)

NETHERLANDS
Dutch arrested two on suspicion of funding Palestinian militant group Hamas
On 26 June, the prosecutor declared that, a 55-year-old man and his 25-year-old daughter were detained by Dutch authorities from the town of Leidschendam. The arrest was based on the suspicion of violating the sanction regulations, and of sending millions of euros to the Palestinian militant group, Hamas that runs the Gaza Strip. The public prosecution officer stated that the suspected amount was about EUR 5.5 million, and both the suspects are speculated to have participated in various other foundations and criminal organizations, which financially supports the Hamas. The Dutch authorities has seized uncovered cash and bank account holdings of EUR 7,50,000 from Leidschendnam and Rotterdam. Their identities were not mentioned and are kept disclosed. Further, the statement mentioned prominent presence of pro-Palestinian and pro-Gaza organizations in Netherlands, which plays key role in the international network finding linkage for Hamas. (“Dutch authorities detain father, daughter on suspicion of funding Palestinian militant group Hamas,” AP, 26 June 2023)

SPAIN
H&M workers strike as the inflation in Europe peaks high
On 26 June, more than 4,000 Spanish employees of various Swedish multinational brands including H&M, has walked off the job forming a mass round of strike. The crowd protested on the immense workloads along with the need for pay rises, to withstand the higher cost of living in the country. It was reported to be a three-day strike, and the employees has closed the H&M stores in Madrid, and has demanded better conditions as the online sales has hindered the retail industry. Due to the pandemic and Russia’s war in Ukraine, the inflation in Europe has hiked up, which has gradually raised the consumer’s price. The series of strike commenced after the UGT, CCOO unions and H&M has broke down. The closure of 100 stores, has impacted heavily on other larger stores, which receives online orders. Further, in the home country of H&M, Sweden, the workers were reportedly pressed into the precarity of zero-hour contracts. (Jennifer O’Mahony, “H&M workers strike for higher pay across Spain, shutting down stores,” AP¸ 26 June 2023)
 

ECONOMY 
Italy confirms EURO 320 billion in medium to long term bonds 
On 27 June, a document from the State Treasury reported that despite increasing state budget deficit, Italy is going to issue medium to long-term sovereign bonds in 2023. EURO 118 billion is estimated between July and December in addition to the EURO 202 billion bonds that was sold in the first half. This year, Italy’s deficit-to-GDP ratio is expected to be 4.5 per cent, which is in line with the plan to push it below the EU ceiling of three per cent by 2026. This year’s GDP growth is estimated to be over one per cent. (Giuseppe Fonte, Antonella Cinelli, Sara Rossi, “Italy confirms 2023 debt guidance despite ballooning state budget deficit,” Reuters, 27 June 2023) 

INTERNATIONAL
Deporting asylum seekers to cost UK GBP 169,000 per person
On 26 June, an assessment showed that sending asylum seekers to Rwanda will cost Britain GBP 169,000 per individual. The deportation is part of a 2022 deal between Britain and Rwanda. The government also hopes that the plan will stop asylum seekers from arriving in boats to the country. Home Secretary Suella Bracerman said that unless the issue of asylum seekers is addressed, the cost of housing them will rise to GBP 11 billion from the current GBP 3.6 billion. The opposition Labour party has termed the report a “complete joke” and that it does not disclose the actual amount that will be spent on the deportations. Meanwhile, the Scottish National Party has criticised the government for spending an “astronomical” amount of money to deport people while not alleviating the increasing costs of mortgage and food bills. (Andrew Macaskill, “UK estimates cost of deporting each asylum seeker to Rwanda will be 169,000 pounds,” Reuters, 26 June 2023)

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