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30 May 2022, Monday | NIAS Europe Daily Brief #214

War in Ukraine: Day 94 & 95

Germany enables USD 110 billion defence fund; the UK prepares to commemorate Queens seven decades on the throne; Serbia signs three-year gas deal with Russia

War in Ukraine: Day 94 & 95 
By Rishma Banerjee  

War on the Ground
On 29 May, regional governor Oleksiy Kuleba said that around 50 homes in the Demydiv village were still dealing with floods. This is because a nearby dam was destroyed by the Ukraine’s forces to stop the Russian tanks from advancing to Kyiv. 

On 28 May, Ukraine’s defence minister, Oleksiy Reznikov gave an update about the new set of weapons that were coming in from their allies and partner countries. He said that they have received Harpoon anti-ship missiles from Denmark and self-propelled howitzers from the United States. Reznikov said that this will monumentally increase the ‘coastal defence’ of the country.

Serhiy Gaidai, the governor of the Luhansk region, said that there were around 10,000 Russian troops in the east of Ukraine. This is in context of Russia stepping up their offensive in the region, as they try to capture territory in “any direction they can.” In a televised speech, President Zelenskyy also elaborated on the condition in Sievierodonetsk and said: "Some 90% of buildings are damaged. More than two-thirds of the city's housing stock has been completely destroyed. There is no telecommunication… Capturing Sievierodonetsk is a fundamental task for the occupiers ... We do all we can to hold this advance.”

Zelenskyy also visited the troops in the Kharkiv region, marking the first time he has made an official appearance at the frontline.He handed out medals, commendations and gifts to the soldiers.

The Moscow View:
Claims by Russia

On 29 May, the defence minister of Ukraine, Sergei Lavrov said that the “liberation” of the Donbas region of Ukraine was of utmost importance to Russia, given the current situation. In an interview with France's TF1 television channel, he referred to the operation in Donbas as an “unconditional priority.”

On 29 May, Gazprom, Russia’s gas producer, said that they were still supplying gas to Europe through their pipelines in Ukraine. They said that 44.1 million cubic meters of gas were applied through the Sudzha entry point in Ukraine. 

President Putin and the President of Serbia spoke via a phone call and agreed that Russia will continue to supply natural gas and work towards strengthening their ties. Kremlin reported that the two leaders have also spoken about Kosovo.

Ukraine’s Eurovision winner, Kalush Orchestra have raised USD 900,000 for the war effort by auctioning their Eurovision trophy. The crystal microphone was auctioned off on Facebook and was led by Ukrainian TV presenter Serhiy Prytula.

On 28 May, it was reported that the Russian forces have been increasing their offensive in and around the Sievierodonetsk. This also marks a shift in the momentum of the war, as Russia scales up their operations. As per Reuters, they are close to capturing all of Luhansk, which Russia had set as one of their war goals, after abandoning their campaign in Kyiv.

Russia’s defence ministry said that they have successfully tested a hypersonic Zircon cruise missile. These missiles which president Putin describes as a new generation of arms systems was tested over a distance of about 1,000 kilometres and was fired from the Barents Sea. It hit a target in the White Sea.

On 28 May, a ship entered the Mariupol port. TASS reports that the vessel will load 2700 tonnes of metal and travel 160 kilometres to Russia. This is the first time since the siege began at Mariupol that the port will be used. Lyudmyla Denisova, Ukraine's human rights ombudsman, however, said that this was akin to looting the temporarily occupied territories of Ukraine. 

On 27 May, the finance minister Anton Siluanov said that Russia will need considerable financial resources, to maintain its military operation in the country. He said that the budget stimulus, at the rate at which they are going, will be around RUB 8 trillion.

The West View:
Responses from the US and Europe

On 29 May, Germany’s economy minister, Robert Habeck, said that the apparent unity in the EU, about imposing embargoes on Russia was “starting to crumble”. This is in the context of the upcoming meeting of EU leaders on 30 and 31 May, to discuss the same.

On 28 May, France’s President Emmanuel Macron and Germany’s chancellor, Olaf Scholz conducted a joint call with president Putin. Elysee Palace said that they had urged Putin to release the 2500 fighters who have been captured from the Azovstal Steel plant in Mariupol. 

They also spoke about the urgency in lifting the blockades on the Black Sea ports, so that Ukraine’s stockpiled grains can reach the global market, ahead of the looming food security crisis. UK’s prime minister, Boris Johnson also spoke about the same and in a conversation with president Zelenskyy, he said that the UK along with their partners in the G7 are trying to “push for urgent progress”

References
Simon Tisdall and Mark Townsend, “Russia-Ukraine war: what we know on day 95 of the invasion, The Guardian, 29 May 2022
Samantha Lock, “Russia-Ukraine war: what we know on day 96 of the invasion,”  The Guardian, 30 May 2022
Ukraine receives Harpoon missiles and howitzers, says defence minister,” Reuters, 29 May 2022
Some 10,000 Russian troops in Ukraine's Luhansk region, governor says,” Reuters, 28 May 2022
Ukraine's Kalush Orchestra raises $900,000 for military by auctioning Eurovision trophy,” Reuters, 30 May 2022
Ukraine blew up a dam to stop the Russian advance on Kyiv, some homes remain flooded,Reuters, 29 May 2022
Max Hunder and Mari Saito, “Ukrainian defenders hold out in Donbas city under heavy fire,Reuters, 30 May 2022
Ukraine's Zelenskiy visits frontline in first official appearance outside Kyiv since invasion,Reuters, 30 May 2022
Ronald Popeski, “Donbas is an 'unconditional priority' for Russia, Lavrov says,” Reuters, 30 May 2022
Russia claims capture of strategic town as fighting rages in east – as it happened,” The Guardian, 30 May 2022
Russia needs huge financial resources for military operation - finance minister,Reuters, 28 May 2022
Russia pummels eastern towns in bid to encircle Ukraine forces,” Reuters, 29 May 2022
Russia shows off Zircon hypersonic cruise missile in test-launch at sea,Reuters, 28 May 2022
Ship to take metal from Mariupol to Russia; Kyiv decries looting,Reuters, 28 May 2022
Russia's Gazprom continues shipping gas to Europe via Ukraine,” Reuters, 29 May 2022
Russia, Serbian presidents agree on further gas supplies, Kremlin says,” Reuters, 29 May 2022
Macron, Scholz urge Putin to release Azovstal fighters,Reuters, 28 May 2022
G7 working to resume grain exports from Ukraine, UK's Johnson tells Zelenskiy,” Reuters, 28 May 2022
EU unity on Russian sanctions 'starting to crumble', German minister says,” Reuters, 29 May 2022


IN BRIEF
By Ashwin Dhanabalan

GERMANY
The finance ministry agrees to constitutional change, enabling USD 110 billion defence fund
On 29 May, Germany's finance ministry stated that Berlin would undergo a constitutional change to accommodate the credit-based special defence fund of EUR 100 billion. The money will eventually increase Germany's defence budget to more than its EUR 50 billion benchmarks. This would further help Germany achieve the NATO targeted spending of two per cent of economic output on defence. Germany's ruling coalition, centre-right opposition with centre-left Social Democrats (SPD), pro-business Free Democrats (FDP), and Greens said they had reached the required two-thirds majority to exempt the defence fund from a constitutional debt brake. ("Germany to change constitution to enable $110 billion defense fund," Reuters, 30 May 2022) 

SERBIA
President Vucic inks three-year gas deal with Putin
On 29 May, Serbia's president Aleksandar Vucic announced the agreement about a three-year gas supply with Russia. He said: "I can not speak about the price now, all details will be agreed upon with Gazprom." Russia's Gazprom gas supply contracts with Serbia expire on 31 May. Serbia also aims to join the EU; however, its current policies with Russia have brought it under pressure. Serbia, back in 2008, had handed over its gas and oil sectors to Russian entities of Gazprom Net and Gazprom. ("Serbia's Vucic says he agreed a three-year gas supply contract with Putin," Reuters, 29 May 2022)

The UK
Preparations to celebrate Queen's Platinum Jubilee underway
On 30 May, a report by Reuters stated that the UK was preparing to celebrate Queen Elizabeth's 70 years on the throne. The celebration would include a range of military parades, church series, street parties, and a pop concert right outside the Buckingham Palace. The UK has scheduled a four-day weekend for the events from 02 to 05 June. Prime minister Boris Johnson said: "I hope that in the coming days we can ... show with every bonfire, with every concert and street party and aerobatic display, a love and a devotion to reciprocate the love and devotion and leadership she has shown to the whole country over seven decades." (Michael Holden, "Britain prepares to celebrate Queen Elizabeth's Platinum Jubilee," Reuters, 30 May 2022) 

REGIONAL
Turkey's president Erdogan calls Finland and Sweden terrorist-supporting countries
On 29 May, Turkey's president Tayyip Erdogan said Ankara would not agree to "terrorism-supporting" countries joining NATO. He added: "For as long as Tayyip Erdogan is the head of the Republic of Turkey, we definitely cannot say 'yes' to countries which support terrorism entering NATO." His latest comments indicated a continued opposition of Turkey to the two countries joining the Western alliance. Sweden's foreign minister Ann Linde said that the diplomatic efforts were continuing. Turkey has been challenging Sweden and Finland for harbouring groups related to the Kurdistan Workers Party (PKK) and other militant groups. (Daren Butler, "Erdogan says he won't let 'terrorism-supporting' countries enter NATO," Reuters, 29 May 2022)

INTERNATIONAL
Beijing and Bern decide on halting trade talks due to human rights issues
On 29 May, the free trade talks between China and Switzerland stalled because of Bern's critical view of Beijing's human rights issues. In 2013, China and Switzerland had agreed and signed a free trade agreement, making it one of the first such deals in Europe. The agreement helped both the countries mutually and contributed to an increased trade over the years. Switzerland has been pushing for the extension of tariff reductions on products and sustainable futures. However, according to Switzerland's secretariat for economic affairs, China has not engaged in the same. The issues arose as Switzerland's parliament denounced the forced labour issues of Uyghurs in China. ("China-Switzerland trade talks stall over rights issues, Swiss newspapers report," Reuters, 29 May 2022)

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