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02 March 2023, Thursday | NIAS Europe Daily Brief #450

Ukraine war: Day 371

Putin launches longest subway project; Natual gas wells in Hungary; UK's cut on marine protected area

War in Ukraine: Day 371
By Padmashree Anandhan

War on the Ground
On 01 March, Ukraine armed forces, General Staff updated on the ground situation. According to the report Ukraine’s air force had carried out 16 strikes in Russian controlled areas in Zaporizhzhia and Kherson, as it observed Russia shifting into offensive mode. It observed the Russian strikes to be targeted in “Kupiansk, Lyman, Bakhmut, Avdiivka and Shakhtarsk directions.”

On 01 March, Ukraine’s armed forces eastern command spokesperson Serhii Cherevatyi reported on the nature of the Wagner Group soldiers. He stated that Russia had deployed soldiers who had previously fought in Syria and Libya for the fight in Bakhmut. He said: “A characteristic feature is that the enemy threw the most prepared Wagner units into the attack.” Cherevatyi confirmed the continued “heavy fighting” in Bakhmut and how Ukrainians have been successful in inflicting “enormous losses” for Russia.

The Moscow View
Claims by Russia

On 01 March, on the fight in Bakhmut, the Wagner Group Founder Yevgeny Prigozhin reported on fierce fighting by the Ukraine forces to deter Russia from capturing the city. He added that Ukraine was deploying extra reserve units in Bakhmut which has challenged Russia’s move to encircle the city. Prigozhin said: “Tens of thousands of Ukrainian army fighters are putting up furious resistance. The bloodiness of the battles is growing by the day.”

The West View
Responses from the US and Europe 

On 01 March, Finland’s Parliament passed a bill with maximum votes in favour of Finland joining NATO. Due to Turkey and Hungary’s bloc on Sweden and Finland over security concerns, the accession has been prolonged, but Hungary will be holding a vote by 09 March to decide its stance. While the both place a block, Finland is expected to join first as Turkey is against Sweden’s accession, as it consider it be protecting the Kurdish terrorists.

On 01 March, German Chancellor Olaf Scholz announced the plan to increase the “ammunition production capacity,” along with “replacement and repair” capability. This would continue to proceed as the support to Ukraine goes on. 

On 01 March, US President Joe Biden announced the extension of sanctions on Russia for another year. The decision comes after the US made an assessment that action and policies taken by Russia continue to threaten Ukraine’s “peace, security, stability, sovereignty, and territorial integrity.”

The Global Fallouts  
Implications of the war

On 01 March, Germany’s car manufacturer Volkswagen (VW) reported on its efforts to sell the plant located in Kaluga, a city in Russia. According to a spokesperson from VW: “One of the options is to sell the assets of Volkswagen Group Rus, and thus also the plant in Kaluga, to a third party…Talks on this are ongoing and a decision has not yet been finalized.” Russia’s car dealer Avilon was reported to be interested in taking over the plant. The VW operating in Russia stopped its manufacturing along with exports to Russia in March 2022, upon one of its co-owner Oleg Deripaska coming under the sanction list.

On 01 March, Deutsche Welle reported on G20 Foreign Ministers meeting in New Delhi. US spokesperson Antony Blinken, Russia’s Foreign Minister Sergey Lavrov is expected to attend the meeting. Although the discussion will be on addressing poverty, and climate finance, Ukraine war will form the center of the discussion.

References
Enemy continues assault on Bakhmut – General Staff,” Ukrinform, 01 March 2023
Russia using in Bakhmut Wagner fighters with Syria, Libya war experience,” Ukrinform, 01 March 2023
Russia Tries to Close Ring on Bakhmut as Ukrainians Mount ‘Furious Resistance’,” english.aawsat.com, 01 March 2023
Message to the Congress on the Continuation of the National Emergency with Respect to Ukraine,” whitehouse.gov, 01 March 2023
Finnish Parliament passes Nato bill by vote of 184 for, 7 against,” Helsinki Times, 01 March 2023
Ukraine updates: Zelenskyy calls for ICC Russia probe,” Deutsche Welle, 01 March
No decision on sale of Volkswagen's last Russian factory, says govt,” Reuters, 01 March 2023


IN BRIEF 
By Femy Francis

ITALY

Giorgia Meloni proposed for safer migrant regulation to the European council
On 01 March, Giorgia Meloni proposed to the European Council the need for safe and legal migrant entry to the Union saying, “We must all work together to reaffirm the principle that you only enter Europe legally and therefore in a condition of total safety and security.” She urged for a boost in legal migration system channels to be split between those who are entitled to be protected and those who intend to enter for the reason of employment. They also need to work on halting the fuel that engines mass illegal migration and the EU needs to take a concrete intervention. This comes to light as there has a major shipwreck in the Calabria claims over 100 lives, adding pressure to provide better channels with Meloni asking for funding from various nations. (“EU must work for legal, safe migrant entry says Meloni,” Ansa.it, 01 March 2023)

RUSSIA

President launched the world's longest subway project
On 01 March, Russian President Vladimir Putin announced that they would be launching a ‘Big Circle Line’ as part of the Moscow metro project. The metro line is amongst the most ambitious projects Russia has seen with 31 stations covering up to 70 kilometres of railroads making it the largest subway line in the world. This comes in light despite Russia waging war on Ukraine and being heavily burdened by the world with sanctions and boycotts, a move to show their ever-growing domestic economy despite the international tensions. (“Putin Opens Up Biggest Underground Circle Line in the World,” Sputnik, 01 March 2023)

REGIONAL

European Council aims to establish system to monitor sustainable goals of entities
On 28 February, European Council reports that they would be implementing strategies for financing sustainable growth as they move closer to transitioning to climate-neutral goals and a resource-efficient economy. In 2021 they proposed the establishment of European green bonds (EuGB) aiming to pursue environmentally sustainable goals as the Council look to form a system to supervise entities. It laid down the uniform requirement for the use of bonds that are aligned with EU taxonomy and environmentally sustainable goals. (“Sustainable finance: Provisional agreement reached on European green bonds,” European Council, 28 February 2023)

ENERGY

Natural gas wells found in Hungary to produce 1.4 billion cubic meters 
On 28 February, Hungary drilled three shallow gas wells discovering natural gas within two months by Hungarian oil and gas company MOL. It's estimated that the amount found can provide for 20,000 average-sized family homes for a few years which comes the as good news, especially in times when the world is facing an energy crisis. They launched the shallow gas program in 2019 as they targeted gas fields near the surface. At present they have drilled 18 wells out of which 16 were successful, and shallow gas accounts for five per cent of company production accounting for 1.4 billion cubic meters'. Hungary sits over huge gas fields that in theory could supply energy for a century, but they are hard to reach as they are unconventional gas. MOL Hungary, Director of Exploration and Production, Ádám Homonnay said: “Hungary currently has a well-developed gas pipeline infrastructure, which allows for the production of the discovered material in a short time (5-6 months on average), and the delivery of the produced gas to the population and industrial consumers.” (“Thousands of Homes to Be Supplied with Newly Found Natural Gas,” Hungary Today, 02 March 2023)

Neoen's net revenue increases by 10 per cent
On 01 March, Les Echos reported that the French renewable producer Neoen's revenue went up to 10 per cent in 2022 and is for 20 gigawatts of installation by 2030. As the demand is pushed by the consumers for green electricity, Neoen is set to take its place as a vital actor among vitality firms. In 2021 they introduced a 10-gigawatt goal in operation or less which has now reached 7.4 Gigawatts closely reaching its potential with the company’s net worth being EUR 4 billion. The CEO of Neoen points out that “fundamentals that help the world’s electrical energy desire, and extra importantly, the demand for environmentally friendly energy has not modified, and has even strengthened even more.” The company rose 50 per cent in value to EUR 503.2 million as they enter a new quarter. (“Renewable energies: Neoen wants to enter the big leagues,” Les Echos, 01 March 2023)

GENDER

Germany's Foreign and Development minister's proposes inclusion of gender in foreign policy
On 01 March, Foreign Minister Annalena Baerbock and German Development Minister Svenja Schulze proposed to invest in gender equality policies. They released a list of new directives to develop lobbying for prioritizing women in all fields. Schulze stated the benefits of “feminist foreign policy” being a more equal society would mean less suffrage, hunger and poverty as it works towards making the society more equal in all senses.  Germany seeks to invest EUR 12 billion in development projects where they specifically tackle gender equality with that they are looking into the creation of an ‘ambassador of feminist foreign policy’ to further the cause. Greens party spokesperson said: “We will also more systematically allocate our financial resources in the service of feminist foreign policy.” The main plan of the proposal is to allocate eight per cent of the development project funds to gender equality initiatives and that the government would make sure that they can participate in equal footing by being accessible to women. Germany also looks into promoting this initiative worldwide by establishing feminist women mediators in the African Union. (“German government to promote 'feminist foreign policy',” Deutsche Welle, 02 March 2023)

MARITIME

UK government cuts back on highly protected marine areas
On 28 February, The Guardian reports that England plans to create three Highly protected Marine Areas (HMA) instead of five as part of their scale-back plan. There were five sites proposed to receive the highest level of protection for the regeneration of marine life but two were dropped concerning socioeconomic impacts especially the livelihood of fishers. Conservationists and environmentalists have criticized this move, as the sights were removed after protests by the locals. The remaining three sites Allonby Bay in Cumbria, Dolphin Head in the eastern Channel and northeast of Farnes Deep, in the North Sea would be developed by the sixth of July. The marine conservationist said that it took them three years to reach this decision at this rate to protect 30 per cent of marine life it would take 260 years. The move has been called nonsensical by marine biologists who are saddened by the cutdown but happy for the other three. (“Government scales back plan for highly protected marine areas in England,” Guardian, 28 February 2023)

INTERNATIONAL

Viktor Orban and Abdel Fattah met Hungary and Egypt strengthening bilateral relations  
On 28 February, Hungary's Prime Minister Viktor Orban met with Egypt president Abdel Fattah El-Sisi. They discussed their historical and bilateral relations. The Ukraine war led to Hungary to stress on peace and its efforts to reduce tensions. Orban said: "We are also prepared to engage in disputes with the Western world because we want a diplomatic solution, a ceasefire, and peace talks.” They discussed the issue of illegal migration and that there is a need to provide a strong baseline. Hungary and Egypt look forward to strengthening economic ties to invest in agriculture, food, energy and tourism. They also announced inter-company negotiations to purchase Liquefied natural gas from Egypt so that it can be supplied to the Hungarian government from 2026. (“Viktor Orbán Holds Talks in Cairo,” Hungary Today, 02 March 2023)

China to become the largest importer of LNG 
On 01 March, Frankfurter Allgemeine reports that China's increased investment in Liquified Natural Gas can be threatening to Europe. USD 60 billion have been contracted between China and Qatar, making China soon to be a dominant player in the world market of LNG. Starting in 2026 Beijing will be supplied by Qatar with four million tons of LNG every year for a period of 27 years. Now that the covid restrictions are down the second largest economy looks to get energy from Qatar, Russia and other pacific rivals therefore ‘China buys what it can get. ‘China can be seen as becoming soon the world’s largest importer this means for Europe it won’t be as easy to get LNG as they would have to compete with Chinese buyers. (“China buys whatever gas it can get,” Frankfurter Allgemeine, 01 March 2023)

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