Daily Briefs


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08 December 2022, Thursday | NIAS Europe Daily Brief #378

War in Ukraine: Day 287 | EU announced the ninth sanction package

Windfall taxes solves a little of Hungary's economic woes; Northern Ireland MLAs face pay cuts; EU provides funds to support Belarus

War in Ukraine: Day 287
By Madhura S Mahesh

War on the Ground
On 07 December, Ukraine’s spokesperson Deputy Head Roman Mashovets met the Ambassadors and Defence Attachés of France, Germany, Italy, Spain and the Netherlands. In the meeting, Mashovets briefed the representatives regarding the situation at the frontlines, the measures taken to counter Russian attacks and the requirements of Ukraine in terms of weapons and ammunition. The representatives were also briefed about increasing Russian military presence in Belarus including the training facilities for mobilised Russian personnel in Belarus who are then deployed in Ukraine.
 
On 07 December, the Ukrainian Minister of Culture and Information Oleksandr Tkachenko said that over 1000 cultural sites had been destroyed in Ukraine since the war began. According to Tkachenko, cultural infrastructure like clubs and libraries have also been destroyed along with cultural heritage sites. He thanked foreign allies for their support in preserving the cultural sites. Tkachenko added that the main challenges for the preservation of Ukraine’s culture are a decrease in production in creative industries and talent.

The Moscow View
Claims by Russia

On 07 December, Russian President Vladimir Putin met with the Council for Civil Society and Human Rights to discuss the Russian military operation in Ukraine. In the meeting, Putin reportedly said that the operation in Ukraine will continue until all Russian objectives are achieved. Calling it a lengthy process, he highlighted the gains that Russia achieved which includes the annexation of the four Ukrainian territories. When the question of additional mobilisation was brought up, Putin refuted it saying that more than 300,000 reserve troops were added to the military. He added that out of the 300,000, only 150,000 are on the battlefields and the rest are either stationed in training centres or reserves. He added: “In these conditions, talking about any additional mobilization activities simply does not make sense, and there is no need for the state and the Ministry of Defense today.”
 
On 07 December, Russian Foreign Minister Sergey Lavrov accused the West of misleading the developing nations to garner support in the UNGA to pass resolutions targeting Russia. Lavrov said that the West is using the UN “blindly” to assure developing nations that the resolution passed is “only about the moral and ethical evaluation of Russia’s actions.” Lavrov added that the West will use this resolution to seize Russian assets outside the UN. He said that the same pattern is being used to set up an international tribunal against Russia and added that such moves would not be legally binding on Russia or any country. 
 
On 07 December, RT reported that US imports from Russia doubled in October despite US sanctions on Russia. It reported that in October, the US imported goods worth USD 732 million from Russia compared to USD 332.1 million in September. The US had imported fertilizers, iron, steel, and nonferrous metals. Whereas the US exports to Russia, the amount decreased to USD 80.1 million compared to USD 90.4 million in September. 

The West View
Responses from the US and Europe 

On 07 December, European Commission President Ursula von der Leyen announced the ninth sanctions package against Russia. The package has proposed six new sanctions, which include the addition of 200 individuals and entities to the sanctions list. The Russian armed forces, members of the Federation Council and the State Duma are some of the new additions to the list. The package also proposes sanctions to be levied on three more Russian banks and a full transaction ban on the Russian Regional Development Bank, new restrictions on exports such as electronics, key chemicals and IT components. The proposal also looks to ban the direct supply of drone engines to Russia which also extends to third-party countries that in turn can supply drones to Russia. Lastly, the package proposes more economic sanctions on the Russian energy and mining sectors and the removal of four Russian propaganda channels from all distribution platforms. 
 
On 07 December, the Association of Tennis Professionals (ATP) Tour fined the Lawn Tennis Association (LTA) for its decision to ban Russian and Belarusian players from competing at Wimbledon. The ATP imposed a fine of USD one million and has threatened the LTA with expulsion from the ATP Tour. The LTA in response said they were disappointed with the decision and added that the ATP “..has shown no recognition of the exceptional circumstances created by Russia's invasion of Ukraine, or the international sporting community and UK Government's response to that invasion.” The LTA added that they are considering their response to the fine and expulsion. 
 
On 07 December, Saeima’s Defence, Internal Affairs and Corruption Prevention Committee announced that all the Ukrainian refugees employed in Latvia are mandated to attend Latvian language classes from 01 January 2024. The Committee’s decision is based on a proposal from the Ministry of Culture. Currently, no such requirements are there for Non-Latvian groups. Lawmakers have criticised this decision by saying that the refugee status of Ukrainian implies that they must return back to Ukraine once the war is over. Saeima lawmaker Edmunds Zivtiņš and deputy Jānis Dombrava expressed support for the decision and added that this will make life easier for Ukrainians who are planning to stay back in Latvia. 
 
On 07 December, BelTA reported that the Belarusian military will be moving forces and military equipment as a part of a counterterrorism exercise. This has sparked rumours that Russia is planning a separate attack front from Belarus. Belarus’s Security Council added that the movement of forces and military equipment will restrict citizens’ movement as some “..public roads and areas will be restricted and the use of imitation weapons for training purposes is planned.” The areas of these exercises and their nature are yet to be disclosed.
 
On 07 December, Turkish energy company Karpowership Trade Group announced plans to supply about 400 megawatts of electricity to Ukraine through Moldova and Romania. The Karpowership Trade Group President Zeynep Harezi said that the company is in talks with the aid organisations and the UN to develop an efficient plan to supply electricity to Ukraine. Harezi said that electricity transmission through Moldova and Romania will take place as ships dock in the ports and electricity is unloaded. He added that with the lift of restrictions on insurance on boats, it will be possible for ships to travel to Ukraine and supply electricity directly.  
 
On 06 December, the US through the Fiscal 2023 National Defense Authorization Act (NDAA) announced an additional USD 800 million in security assistance to Ukraine. The Act included US President Joe Bidens proposal for a USD 500 million increase in the assistance provided to Ukraine. The Act is now tabled in the Senate and once it passes there it will be sent to Biden for his assent. The NDAA is a program created to map out the defence spending of the US. 

The Global Fallouts
Implications of the Ukraine war

On 06 December, the UNSC met to discuss the humanitarian situation in Ukraine and diplomatic solutions to bring the war to an end. In the meeting, the ambassadors of Russia and the US engaged in a verbal spat where the two accused each other of showing “no interest in Ukraine talks.” The Russian Ambassador to the UN Vassily Nebenzi said that Russia hears the call for a diplomatic solution to end the conflict and added that Russia is ready to “conduct negotiations” and remove the “root cause” for Russia’s invasion of Ukraine. Nebenzi then went on to accuse the west of stalling diplomatic solutions as it was supplying weapons to Kyiv saying: “What you’re seeing now is an ongoing war of the West against Russia. … This is something that leaves us no other option but to continue the aims of our SMO.” In response to these allegations, US Deputy Ambassador to the UN Lisa Carty said that it is Russia that “has no genuine interest in negotiation or meaningful diplomacy,” which is seen from its attacks on Ukrainian infrastructure. The UNSC council is meeting again on 09 December to discuss weapons from Ukraine allegedly falling into the wrong hands. 
 
On 06 December, the International Air Transport Association (IATA) urged Western airlines to resume flights over Russia to reduce the crowding of European air spaces. The IATA Head Willie Walsh said that this will also increase flight efficiency from Europe to Asia. Walsh added that the diversion of flight routes to avoid Russian airspace through Europe is unsustainable. Walsh also said that the resumption of such routes should only happen once the Russia-Ukraine conflict is over.

References
Roman Mashovets held a meeting with representatives of the embassies of France, Germany, Italy, Spain and the Netherlands,” president.gov.ua, 07 December 2022  
More than 1,000 cultural sites in Ukraine destroyed - minister,” Ukrinform, 07 December 2022  
Andriy Olenin  Russian media ‘plunge Ukraine into Middle Ages’ after blackout by inventing ‘Apocalyptic pictures’,” Ukrinform, 07 December 2022 
HomeRussia & FSU Donbass collision kills 16 – regional head,” RT, 07 December 2022 
West exploiting UN to promote idea of tribunal against Russia — Lavrov,” Tass, 07 December 2022
US imports from Russia more than double – Census Bureau,” RT, 07 December 2022  
Ukraine operation could take a long time – Putin,” RT, 07 December 2022 
Russia doesn't need additional mobilization – Putin,” RT, 07 December 2022 
Meeting of the Civil Society Development and Human Rights Council,” kremlin.ru, 07 December 2022
Nathan Salt “LTA is threatened with EXPULSION from the ATP Tour if Russian and Belarusian players are banned from Wimbledon again... as British tennis' governing body is slapped with an £822,000 fine,” MailOnline, 07 December 2022
LETA “Ukrainian civilians in Latvia will have to study state language in order to find jobs,” Baltic News Network, 07 December 2022
Belarus to move troops, equipment amid Ukrainian fears of attack,” Al Jazeera, 07 December 2022
Nuran Erkul Kaya “Turkish company Karpowership plans to supply electricity to Ukraine via Moldova and Romania,” Anadolu Agency, 07 December 2022 
Press statement by President von der Leyen on the ninth package of sanctions against Russia,” ec.europa.eu, 07 December 2022            
Patricia Zengerle and Mike Stone “U.S. lawmakers authorize $800 million more for Ukraine in defense bill,” Reuters, 07 December 2022 
At UN, US and Russia accuse each other of no interest in Ukraine talks,” EURACTIV, 07 December 2022
Western airlines need to return to Russian airspace – IATA,” RT, 07 December 2022  


IN BRIEF
By Sai Pranav

DENMARK
Denmark approved CO2 storage in a former offshore oil field
On 06 December, the Danish Energy Agency (DEA) allowed the UK’s INEOS E&P and the Norwegian Wintershall Dea oil and gas companies to store 15,000 tons of carbon dioxide (CO2) in a former offshore oil field in the North Sea. The foreign companies were given four months to experiment, develop and show that CO2 can be stored according to the Greensand Pilot Injection Project. The companies were granted permission to use the Nini West oil field that was formerly owned by Denmark. Denmark’s Energy Technology Development and Demonstration Program funded the project with DKK 197 million. Greensand is the first project to receive Denmark’s permission to store carbon in a cleaner and safer way. The CO2 will be stored in the sandstone reservoir 1,800 meters below sea level. (“Denmark grants 1st permission for carbon storage in the North Sea,” en.trendz.az, 06 December 2022)

HUNGARY
Viktor Orban to shift energy profits to state budgets
On 08 December, Hungary’s Prime Minister Viktor Orban announced that the government would convert the extra profits of energy companies to state budgets. He said that the windfall taxes would be increased to 95 per cent from 40 per cent for energy companies on the Brent-Ural region. Orban accused the EU for placing price caps on the Russian oil exports, which resulted in lower crude imports to Hungary vias the Druzhba oil pipeline. The oil and gas companies are reluctant to sell due to lower prices and higher taxes. Orban said that the windfall taxes would sustain Hunagry’s poor economy. The EU has withheld Covid recovery funds from Hungary due to the rule of law issues. (Gergely Szakacs and Krisztina Than, “Orban raids oil 'extra profits' after scrapping fuel price cap,” Reuters, 08 December 2022)

Northern Ireland
Pay reduced for MLA under the new bill
On 07 December, Northern Ireland’s Secretary of State Chris Heaton-Harris received parliamentary approval to reduce the salary of MLAs by 27.5 per cent according to the Executive Formation Act. Since February 2022, Northern Ireland’s MLAs were unable to perform their complete duties due to the devolved government. The MLA will receive their full pay when the Assembly is fully restored. The need for pay reduction reflected the cost-of-living crisis in the region. Heaton-Harris requested Northern Ireland’s parties to use the time that the act is implemented to restore the assembly. (“Northern Ireland Secretary announces 27.5% reduction to MLA pay,” gov.uk, 07 December 2022)

THE UK
Anti-tank weapon ordered from Swedish manufacturer to comply NATO’s requirements
On 07 December, the UK’s Defence Secretary Ben Wallace announced that the UK had signed a EUR 229 million deal with Swedish weapon manufacturer Saab for the Next Generation Light Anti-Tank Weapon systems (NLAW). The NLAW will be assembled at a facility in Belfast in Northern Ireland. The UK Armed Forces will receive 500 NLAW units in 2023 and several thousand units between 2024 to 2026. The new supply replenished the UK Armed Forces to meet NATO requirements. The UK’s NLAWs were sent to Ukraine to use against the Russian aggression in the ongoing war. (“UK orders thousands more anti-tank weapons to bolster stockpiles,” gov.uk, 07 December 2022) 

REGIONAL
EUR 25 million approved to support Belarus
On 07 December, the EU approved EUR 25 million to help Belarus achieve democracy from its oppressive regime. In August 2020, the people’s protest President Aleksandr Lukashenko committing election fraud was suppressed by the government. The EU programme, EU4Belarus aims to improve human rights and “support democratic aspirations” in Belarus. The assistance boosts the protection of civil society activists who fight for democracy and human rights in Belarus. It also helps students and workers by increasing scholarships, training, and professional exchanges with the EU. The EU has supported Belarus’ people with EUR 30 million in 2022 and EUR 100 million since the fraudulent August 2022 election. (“Commission will provide €25 million to support the democratic aspirations in Belarus,” ec.europa.eu, 07 December 2022) 

INTERNATIONAL
The UK and the US sign agreement to boost energy supply
On 07 December, the UK signed an energy partnership with the US to increase LNG supply. The UK would increase the US LNG export to phase-out Russian energy supplies and reduce their dependency on Russia. The UK-US Energy Security and Affordability Partnership look to decrease energy prices in the UK and ensure a continuous energy supply. The partnership also aims to invest in clean energy, with both countries working together to improve energy efficiency and lower gas demands. The UK plans to import nine to ten billion cubic metres of LNG over 2023 under the partnership. (“U.S., Britain launch energy partnership to boost supplies,” Reuters, 07 December 2022)

Chinese customs data reveals a trade booms between China and Russia in 2022
On 07 December, according to China’s Customs’ General Administration data, the trade between Russia and China increased by 32 per cent between January and November compared to 2021. The trade turnover reached USD 172.4 billion overall in 2022 and USD 18.2 billion in November alone. The data shows China exporting goods worth USD 67.3 billion to Russia in 2022 and Russia’s exports to China amount to USD 105.072 billion. China primarily imports Russia’s subsidized energy supply after the West placed sanctions on it. Russia and China would achieve their goal of mutual trade of up to USD 200 billion by 2024. (“Russia-China trade smashes record – customs data,” RT, 07 December 2022)

 

 

 

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