Photo : nato.int
05 May 2023, Friday | NIAS Europe Daily Brief #505
War in Ukraine Day: 435
By Padmashree Anandhan
War on the Ground
On 04 May, Ukraine’s Air Force reported on bringing down its drone after continued explosions. In the report, close to 15 to 20 minutes, a Bayraktar TB2 aerial device was observed to have lost control after Russia’s attack. It was later taken away by Ukraine forces due to technical malfunction. According to Kyiv’s Mayor, Vitali Klitschko: “..firefighters put out a fire on the ground floor of a four-storey shopping center.”
On 04 May, Ukraine President Volodymyr Zelenskyy during his visit to ICC in Hague provided address on “peace and justice in the war.” He stated that the visit was “symbolic” and welcomed ICC’s warrant on deporting of Ukrainian children. In response, Russia stated that ICC had no jurisdiction and denied to accept the charges.
The Moscow View
Claims by Russia
On 04 May, Russia announced security measures in Moscow on the occasion of the Victory Day Military Parade. The same was confirmed by Russia’s spokesperson Dmitry Peskov on strengthening of the security. On the drone attack, Russia accused Ukraine for trying to assassinate Putin and issued a ban on use of drones in Moscow.
The West View
Responses from the US and Europe
On 04 May, Deutsche Welle, reported on the increasing death toll in Kherson. Due to continuing artillery attacks in Kherson, the death toll is reported to be 23, with 46 injured. According to Ukraine’s Governor: “The enemy's targets are the places where we live. Their targets are our lives and the lives of our children.” On the same day a drone attack was reported in Russia’s oil refinery. A fire broke in the Black Sea port in Novorossiysk after a drone attack in Crimea. Despite no casualties reported, the emergency services found it difficult to carry out the operation.
References
“Shelling in Kherson region left 17 dead, 45 injured,” Ukrinform, 03 May 2023
“Volodymyr Zelenskyy: We are attacking neither Putin nor Moscow – we are defending our villages and cities,” president.gov.ua, 03 May 2023
“Message from the press service of the President,” kremlin.ru, 03 May 2023
“Moscow bans use of drones,” RT News, 03 May 2023
“Kiev admits to issues with Western weapons,” RT News, 03 May 2023
“Russian defence chief calls for wartime missile output to be doubled,” East Lothian Courier, 02 May 2023
“Joint statement of the Nordic-Ukrainian Summit in Helsinki,” government.se, 03 May 2023
Nandita Bose and Steve Holland, “US military aid for Ukraine includes air-launched rockets,” Reuters, 04 May 2023
Raf Casert, “EU wants to ramp up ammunition production to help Ukraine,” abc news, 03 May 2023
Lucia Binding, “Russian 'ghost ships' with underwater capabilities circled Nord Stream explosion site, documentary claims,” Sky News, 03 may 2023; Gordon Corera, “Nord Stream: Report puts Russian navy ships near pipeline blast site,” BBC News, 03 May 2023
IN BRIEF
By Rishika Yadav
REGIONAL
NATO to strengthen military integration and bolster transatlantic security with Finland
On 02 May, the Director General of the NATO International Military, Lieutenant General Janusz Adamczak, visited Finland, following Finland's accession to the Alliance on April 4, 2023. During the trip, he met with military officials to discuss security priorities and opportunities for military integration. The visit began with a meeting with the Finnish Military Representative to NATO, Lieutenant General Kim Jäämeri, where Adamczak emphasized the importance of Finland's membership to NATO. He also expressed the desire to enhance collaboration between Finland and NATO. Adamczak observed exercise ARROW 23 and praised Finland's highly trained and capable armed forces. Finland’s Chief of Defence Command, Lieutenant General Vesa Virtanen, highlighted the importance of multi-dimensional military integration to ensure Finland's defense is fully integrated into the Alliance's collective defense. During his visit to the Finnish Air Force Command, Adamczak acknowledged Finland's experience in providing security in the Baltic Sea and Arctic regions, which would significantly enhance NATO's posture in the High North and the ability to reinforce Baltic Allies. (“The Director General of the NATO International Military Staff visits Finland,” nato.int, 05 May 2023)
NATO Secretary General meets industry leaders
On 04 May, NATO Secretary General, Jens Stoltenberg, held a roundtable discussion at NATO Headquarters with industry leaders in energy and communications infrastructure. The discussion focused on understanding the threats to critical undersea infrastructure and sharing best practices on cooperation and coordination. Stoltenberg emphasized that protecting critical undersea infrastructure is essential to NATO's security and defense as it plays a crucial role in protecting societies' security and prosperity. The Secretary General highlighted the importance of collaborating with the industry to better enhance the security of the infrastructure. NATO has already taken steps to protect critical infrastructure, including increasing military presence in the region following the sabotage of the Nord Stream pipeline. NATO has also created an undersea infrastructure coordination cell and established a new NATO-EU taskforce on resilience and critical infrastructure protection. (“NATO Secretary General engages industry on critical undersea infrastructure,” nato.int, 05 May 2023)
ECONOMY
Asian bondholders join international lawsuits against Swiss government
On 04 May, BBC News reported that Asian investors are filing lawsuits against the Swiss government over its handling of the takeover of Credit Suisse by larger rival Union Bank of Switzerland (UBS). In March, Credit Suisse was forced to merge amid concerns it could collapse, rendering worthless USD 17 billion of bonds held by investors. Some individual bondholders are taking legal action against Swiss authorities, claiming that the manner in which the merger was conducted deprived them of value. Shareholders were allowed to exchange their Credit Suisse shares for UBS shares, but bondholders received nothing. Despite Credit Suisse's difficulties, presentations by the bank encouraged buying bonds as late as 14 March. Legal experts have expressed doubts over the bondholders' success, but the limited time period allowed for claims has prompted action. (Nick Marsh, “Credit Suisse: Asia investors sue Switzerland over bank collapse,” BBC News, 04 May 2023)
ENERGY
Hydroelectric power in the EU: NGOs warn of the devastating environmental fallouts
On 04 May, Euractiv reported that the European Union has untapped hydroelectric deposits that could increase flexibility in the energy system, equivalent to 20 per cent of France's current hydroelectric production. However, NGOs warn of the devastating environmental effects of exploiting these natural resources. Reservoirs across Europe are currently under-utilized; improving them could increase electricity storage capacity by 80 per cent. Nevertheless, the EU competition policy would likely impede the industry, particularly in France. Conflict over the legal status of hydroelectric plants has fuelled tensions for years, with Paris advocating state management, and Brussels preferring competition. The EU is now trying to reassure investors by proposing long-term electricity sales contracts. However, environmental associations argue that exploiting new deposits would cause environmental damage and not contribute to the EU energy transition and have urged the EU to apply stringent sustainability criteria and exclude hydropower from "go-to areas." (Paul Messad, “Hydropower: EU energy transition’s other sticking point,” Euractiv, 04 May 2023)
INTERNATIONAL
India and Russia fail to settle bilateral trade in rupees with Russia
On 04 May, Euractiv reported on India and Russia's efforts to settle bilateral trade in rupees, which have been suspended after Moscow refused to accumulate rupees, resulting in a major setback for Indian importers of cheap oil and coal from Russia. Russia has redirected all its crude oil exports affected by Western sanctions over Ukraine to "friendly" countries, and India is the largest buyer. India's share of global exports of goods is just about 2 per cent, and the rupee is not fully convertible. Russia believes it will end up with an annual rupee surplus of over USD 40 billion, which it considers undesirable and therefore Russia is not comfortable holding rupees and prefers to be paid in Chinese yuan or other currencies. India started exploring a rupee settlement mechanism with Russia soon after the invasion of Ukraine in February last year, but no deal has been reported in rupees. (“India, Russia suspend negotiations to settle trade in rupees,” Euractiv, 04 May 2023)