[🇷🇺] Russia vs West

[Saif]

Date of Event: Dec 6, 2024 Source : https://www.thedailystar.net/news/world/news/cold-war-can-turn-hot-3769461

‘Cold War’ can turn ‘hot’
Warns Lavrov, accuses West of destabilising the ‘Eurasian continent’

Russia's top diplomat Sergei Lavrov yesterday accused the West of destabilising the "entire Eurasian continent" and warned that the Cold War that the west is waging can turn "hot".

Meanwhile, Ukraine's Foreign Minister Andriy Sybiga branded Lavrov a "war criminal" as they both attended an international summit in Malta, the latter's first visit to an EU member since the 2022 invasion.

Sitting between the representatives of San Marino and Romania, Lavrov railed against the EU, Nato and in particular the United States.

He said the West was behind a "reincarnation of the Cold War, only now with a much greater risk of a transition to a hot one", according to a transcript of his remarks from RIA Navosti.

He also accused Washington of military exercises in the Asia-Pacific region that sought to "destabilise the entire Eurasian continent ".

Sybiga accused Moscow of being "the biggest threat to our common security" as the two foreign ministers sat on the same huge table at a meeting of the Organization for Security and Cooperation in Europe (OSCE).

US Secretary of State Antony Blinken was also in Ta'Qali, near Valetta, for the talks, though officials said he had no plans to meet Lavrov.

"Russia is not a partner; it is the biggest threat to our common security. Russia's participation in the OSCE is a threat to cooperation in Europe," Sybiga told ministers from the 57-member body.

"When Russians say they want peace they lie," he said, adding: "Ukraine continues to fight for its right to exist.

"And the Russian war criminal at this table must know: Ukraine will win this right and justice will prevail."

Lavrov, who has been sanctioned by the European Union, had not visited an EU country since a December 2021 trip to Stockholm, again for an OSCE meeting, Russian media reported.

The OSCE was founded in 1975 to ease tensions between the East and the West during the Cold War, and now counts 57 members from Turkey to Mongolia, including Britain and Canada as well as the United States.​

 

[Saif]

US, UK unveil sanctions on Russia’s energy sector

The United States and Britain on Friday announced sanctions against Russia’s energy sector, including oil giant Gazprom Neft, just days before outgoing President Joe Biden leaves office.

www.newagebd.net

US, UK unveil sanctions on Russia’s energy sector
Agence France-Presse . Washington, United States 12 January, 2025, 00:42

The United States and Britain on Friday announced sanctions against Russia’s energy sector, including oil giant Gazprom Neft, just days before outgoing President Joe Biden leaves office.

The US Treasury Department said it was designating more than 180 ships as well as Russian oil majors Gazprom Neft and Surgutneftegas, fulfilling ‘the G7 commitment to reduce Russian revenues from energy’.

At the same time, the UK government announced sanctions against the two companies, saying their profits were ‘lining Putin’s [Russian president Vladimir] war chest and facilitating the war’ in Ukraine.

‘Taking on Russian oil companies will drain Russia’s war chest—and every ruble we take from Putin’s hands helps save Ukrainian lives,’ UK foreign secretary David Lammy said in a statement.

‘Putin is in tough shape right now, and I think it’s really important that he not have any breathing room to continue to do the god-awful things he continues to do,’ Biden told reporters Friday at the White House.

Gazprom Neft slammed the sanctions as ‘baseless’ and ‘illegitimate’, Russian state news agencies reported.

‘Gazprom Neft considers the decision to include its assets on the sanctions list as baseless, illegitimate and contrary to the principles of free competition,’ Russian state news agencies quoted a company representative as saying.

Oil prices rose on the news, with a barrel of Brent North Sea crude oil for delivery in March up 3.6 per cent at $79.68 at about 4:45pm in Washington.

Asked about gasoline prices, Biden conceded costs could rise ‘as much as three, four cents a gallon’, but stressed that sanctions would have a ‘more profound impact’ on Russia.

Even before the sanctions were officially announced, rumours of fresh designations sparked condemnation from Kremlin spokesman Dmitry Peskov, who told reporters that the Biden administration was trying to leave incoming US president-elect Donald Trump ‘as heavy a legacy as possible’.

In total, the United States announced sanctions against almost 400 people and entities.

These include 183 oil-carrying vessels, along with Russian oil traders and oilfield providers, the two Russian oil majors, and more than two dozen of their subsidiaries, according to the Treasury Department.

Serbian president Aleksandar Vucic announced plans to speak with Putin about the sanctions, which also affect Petroleum Industry of Serbia, majority-owned by Russia’s Gazprom Neft and its parent company, Gazprom.

NIS is the only supplier of gas to Serbia and the majority owner of both gas pipelines that transport gas from Russia to households and industries in the country.

‘Today [Friday], the United States imposed the most significant sanctions yet on Russia’s energy sector, by far the largest source of revenue for Putin’s war,’ Daleep Singh, the Biden administration’s deputy national security advisor for international economics, said in a statement.

Senior administration officials told reporters the measures were designed to give the United States additional leverage to help broker a ‘just peace’ between Ukraine and Russia.

Ukrainian President Volodymyr Zelensky praised the United States for introducing the sanctions.

‘These measures deliver a significant blow to the financial foundation of Russia’s war machine by disrupting its entire supply chain,’ he wrote in a post on the social media platform X.

Friday’s announcement comes just 10 days before Biden is due to step down, and puts Trump in something of an awkward position given his stated desire to end the Ukraine war on day one of his presidency.

Asked about the timing, National Security Council spokesperson John Kirby told reporters that oil markets were now in a ‘fundamentally’ better place than they had been in the aftermath of Russia’s invasion of Ukraine in 2022, and that the US economy was also faring better.

‘We believe the moment was ripe right now to adjust our strategy,’ he said.

The US State Department announced it was also taking action against Russia’s energy sector, ‘sanctioning nearly 80 entities and individuals, including those engaged in the active production and export of liquefied natural gas from Russia.’

Among those it designated were people involved in Russia’s metals and mining sector, ‘and senior officials of State Atomic Energy Corporation Rosatom.’

The move sparked condemnation from Rosatom, which called it ‘unreasonable and unlawful’ in nature.

‘The sanctions are perceived as an element of unfair competition on the part of unfriendly states,’ Rosatom said in a statement published by several Russian news agencies.​

 

[Saif]

Kremlin ready for ‘mutually respectful’ Trump talks

The Kremlin said on Thursday it saw nothing new in US president Donald Trump’s calls for Russia to end its military offensive in Ukraine, and that Moscow was ready for ‘mutually respectful’ dialogue with him...

www.newagebd.net

Kremlin ready for ‘mutually respectful’ Trump talks
Agence France-Presse . Moscow 24 January, 2025, 00:20

The Kremlin said on Thursday it saw nothing new in US president Donald Trump’s calls for Russia to end its military offensive in Ukraine, and that Moscow was ready for ‘mutually respectful’ dialogue with him.

The US leader had on Wednesday threatened fresh sanctions on Moscow if Russia did not strike a deal to end its nearly three-year campaign against Ukraine.

Expectations are high that Russian president Vladimir Putin and Trump will soon hold a phone call to discuss the conflict, after the Republican pledged on the campaign trail to bring a swift end to the fighting.

Kremlin spokesman Dmitry Peskov said Russia was ‘ready for equal, mutually respectful dialogue.’

‘We are waiting for signals, which we have not yet received,’ he added.

Trump has not said publicly how he sees the contours of a potential peace deal between Kyiv and Moscow.

Putin has outlined maximalist demands that include the Ukrainian withdrawal from parts of its own territory still under Kyiv’s control.

Ukrainian president Volodymyr Zelensky has meanwhile ruled out territorial concessions, though has said he would consider trying to secure the return of land captured by Russia through ‘diplomatic’ means.

Kyiv is also demanding security guarantees from NATO and the United States along with the deployment of Western, including American, peacekeeping troops.

In a post on Truth Social, Trump on Wednesday told Putin to make a deal ‘now’ and threatened ‘high levels of Taxes, Tariffs, and Sanctions’ on Moscow.

Trump said he was ‘not looking to hurt Russia’ and had ‘always had a very good relationship with president Putin,’ a leader for whom he has expressed admiration in the past.

‘All of that being said, I’m going to do Russia, whose Economy is failing, and president Putin, a very big FAVOR. Settle now, and STOP this ridiculous War! IT’S ONLY GOING TO GET WORSE,’ he said.

Asked about the comments on Thursday, Peskov said the Kremlin did not see anything ‘particularly new’ in Trump’s threat of sanctions.

He said it was clear from Trump’s first presidency that the American ‘liked’ sanctions, adding that Moscow was ‘closely following’ all of his statements.

The Kremlin has repeatedly dismissed the barrage of Western sanctions that it has been hit with since ordering troops into Ukraine in February 2022.

The Russian economy has largely defied Western hopes the restrictions would push it into economic collapse.

Peskov on Thursday conceded that Russia faced economic ‘problems’ — ’as all countries’ — but said Russia had the resources to meet ‘all military requirements.’

Russia’s troops have been advancing on the battlefield in recent months, while both Moscow and Kyiv have increased their aerial attacks deep behind the frontlines.

Moscow’s army on Thursday claimed to have captured another small settlement in the eastern Donetsk region, which Russia annexed in 2022.

Meanwhile, Russian aerial attacks on frontline towns in eastern and central Ukraine on Thursday killed at least three people and wounded dozens, officials said.

The authorities said a 53-year-old woman was killed by a Russian bombardment in the frontline town of Kostyantynivka and a 54-year-old by a Russian drone strike on a village in the northeastern Kharkiv region.

Emergency services in the central city of Zaporizhzhia earlier announced one person was killed and said 51 were wounded — including four firefighters and a two-month-old — in an overnight drone and missile attack.

Rescuers posted images of a destroyed building and a damaged firetruck they said were hit in the apparent double-tap attack.

Russia fired drones and missiles at intervals, authorities said, explaining that firefighters had been wounded in ‘the second’ attack.​

 

[Saif]

Putin ready to talk to Trump, waits for signals: Kremlin

Russian president Vladimir Putin is ready to talk to US counterpart Donald Trump but is waiting for signals from Washington first, the Kremlin said on Friday, fuelling expectations the two would be in contact.

www.newagebd.net

Putin ready to talk to Trump, waits for signals: Kremlin
Agence France-Presse . Moscow 25 January, 2025, 01:05

Russian president Vladimir Putin

Russian president Vladimir Putin is ready to talk to US counterpart Donald Trump but is waiting for signals from Washington first, the Kremlin said on Friday, fuelling expectations the two would be in contact.

The Ukraine conflict has plunged relations between the two nuclear powers to their lowest levels since the Cold War, with Trump repeatedly promising to end the fighting with a ‘deal’.

He told reporters on Thursday he would meet Putin ‘immediately’, and that Ukrainian president Volodymyr Zelensky wanted to negotiate.

‘Putin is ready. We are waiting for signals,’ Kremlin spokesman Dmitry Peskov said of Trump’s overtures.

Peskov said that he could not comment further on a possible meeting between the leaders, saying it was ‘hard to read coffee grounds’ to predict the future.

Trump has threatened Russia with tougher economic sanctions if it does not agree to end its nearly three-year offensive.

‘If they don’t settle this war soon, like almost immediately, I’m going to put massive tariffs on Russia, and massive taxes, and also big sanctions,’ the Republican said during a Fox News interview on Thursday.

The Kremlin rejected Trump’s claim that the conflict in Ukraine could be ended by lowering the price of oil used to fund Moscow’s budget, saying: ‘This conflict does not depend on oil prices.’

Speaking at the World Economic Forum in Davos on Thursday, Trump had said that he would ask Saudi Arabia and OPEC to lower oil prices, saying: ‘If the price came down, the Russia-Ukraine war would end immediately.’

Peskov said the conflict was instead based on ‘threats to Russia’s national security’, ‘threats to Russians’ living in Ukraine and ‘the lack of desire and complete refusal of Americans and Europeans to listen to Russia’s concerns’.

Neither side has shown signs of de-escalating hostilities since Trump’s inauguration on Monday.

Russian aerial attacks near Kyiv killed three people and wounded several others, Ukrainian officials said Friday, while Ukraine fired 120 drones at least 12 Russian regions, including the capital Moscow.

The Kremlin has launched drone or missile attacks at Kyiv almost every day since sending troops into Ukraine in February 2022, ostensibly targeting military and energy facilities.

‘Three people were killed in an enemy attack in the Kyiv region,’ the emergency services said in a statement on social media.

It said fragments of a drone had struck a 10-storey residential building after the head of the region said a private home had also been hit.

Black smoke billowed from a residential building damaged in the strike as rescue workers hauled out the bodies of the victims, official images from the scene showed.

In Russia, the Ukrainian military said it launched an overnight drone attack striking an oil refinery, power station facilities and an electronics plant.

State media reported that a microelectronics factory had halted work after six Ukrainian drones damaged production and storage facilities in the Bryansk region.

Moscow and Kyiv are both vying to gain the upper hand ahead of possible negotiations in the early days of Trump’s administration.

Prior to his inauguration, Trump vowed to end the Ukraine conflict immediately upon taking office, raising concerns in Ukraine it would be forced to make major territorial concessions to Russia.

Moscow has been advancing on the battlefield for months, closing in on the eastern Ukrainian city of Pokrovsk.

On Friday, Russia said its forces captured the village of Tymofiivka about 20 kilometres east of the key industrial hub.​

 

[Saif]

Russia warns outlook for extending last nuclear arms pact with US does not look promising

Russia warned on Monday that the outlook for extending the last remaining pillar of nuclear arms control between Moscow and Washington, the world’s two biggest nuclear powers, did not look promising and that the situation appeared to be deadlocked. The New Strategic Arms Reduction Treaty, or

thefinancialexpress.com.bd

Russia warns outlook for extending last nuclear arms pact with US does not look promising
REUTERS
Published :
Feb 10, 2025 20:35
Updated :
Feb 10, 2025 20:35

Russian Yars intercontinental ballistic missile launcher takes part in the Victory Day military parade general rehearsal on the Red Square in Moscow, Russia, May 5, 2024. Photo : Maxim Shipenkov/Pool via REUTERS/Files

Russia warned on Monday that the outlook for extending the last remaining pillar of nuclear arms control between Moscow and Washington, the world’s two biggest nuclear powers, did not look promising and that the situation appeared to be deadlocked.

The New Strategic Arms Reduction Treaty, or New START, which caps the number of strategic nuclear warheads that the United States and Russia can deploy, and the deployment of land- and submarine-based missiles and bombers to deliver them, is due to run out in less than a year - on February 5, 2026.

US President Donald Trump, during his first presidential term, withdrew the US from another important treaty - the Intermediate-Range Nuclear Forces (INF) Treaty - and the New START agreement is now the only pact remaining.

Deputy Foreign Minister Sergei Ryabkov, who oversees US relations and arms control, told a news briefing in Moscow on Monday that the prospects for talks on amending and extending the agreement looked bleak for now.

“As for our dialogue in the field of (nuclear) strategic stability and the post-New START situation, the situation does not look very promising,” said Ryabkov.

“On February 5, 2026, the pact expires and after this it will not exist.”

Trump in January said he wanted to work towards cutting nuclear arms, adding that he thought Russia and China might support reducing their own weapons capabilities.

“We’d like to see denuclearization ... and I will tell you President Putin really liked the idea of cutting way back on nuclear. And I think the rest of the world, we would have gotten them to follow, and China would have come along too,” Trump said.

The Kremlin, commenting on Trump’s remarks, said at the time that Russian President Vladimir Putin had made clear he wanted to restart nuclear arms cuts talks as soon as possible.

But Ryabkov said that while the US wanted three-way arms talks - including China - Moscow wanted five-way arms talks.

Russia has said it wants Britain and France - also nuclear powers - to be included in any talks.

“The US is proposing a three-way talks format and we want a five-way format. We are going round in circles,” said Ryabkov.

Ryabkov also linked progress on agreeing a new nuclear treaty to Washington’s wider policy towards Russia at a time when Trump says he is exploring how to end the war in Ukraine as the Russian economy tries to weather the toughest Western sanctions ever.

“As for (renewing) New START, as Putin has said, nothing prevents us from holding talks and we are ready for that. But this depends on whether we’ll see a real shift in Washington’s policy towards Russia,” said Ryabkov.

"But this hasn't happened yet and it's therefore premature to talk about this. The clock is running down."​

 

[Saif]

Trump-Putin summit in Saudi Arabia?

Riyadh says welcomes the prospect of hosting the summit

www.thedailystar.net

Trump-Putin summit in Saudi Arabia?
Riyadh says welcomes the prospect of hosting the summit

AFP file photo

Saudi Arabia today expressed willingness to host a summit between Russian President Vladimir Putin and US President Donald Trump, who is pushing Ukraine peace talks.

Trump had raised the prospect of a Saudi meeting on Wednesday after he held a surprise phone call with Putin, who ordered the invasion of Ukraine in 2022.

The two leaders were "going to meet probably in Saudi Arabia the first time", Trump told reporters.

"The kingdom expresses its welcome to hosting the summit in Saudi Arabia, and reaffirms its ongoing efforts to achieve lasting peace between Russia and Ukraine," the Saudi foreign ministry said in a statement, without confirming whether the meeting would go ahead.

The ministry said it "commends the phone call" between Trump and Putin, and the "possibility" of hosting a summit in the kingdom.

On Thursday, Kremlin spokesman Dmitry Peskov said there was no agreement with Trump as to the details of a meeting between him and Putin, that both sides have said they are working on.

"So far no decisions have been made, neither at the working level, nor at the highest level," Peskov said.

"Of course, it will take time to prepare such a meeting. It could be weeks, it could be a month, it could be several months."​

 

[Saif]

Trump says Russia should be readmitted to G7

US president Donald Trump on Thursday said he would love to have Russia return to the Group of Seven nations, saying it was a mistake for Moscow to be expelled

en.prothomalo.com

Trump says Russia should be readmitted to G7
Reuters
Washington, USA
Published: 14 Feb 2025, 08: 35

Donald TrumpAFP file photo

US president Donald Trump on Thursday said he would love to have Russia return to the Group of Seven nations, saying it was a mistake for Moscow to be expelled.

Russia had been a member of the G7 club of industrialized democracies, then known as the G8, until Moscow was excluded following its annexation of Ukraine's Crimea region in 2014.

"I'd love to have them back. I think it was a mistake to throw them out. Look, it's not a question of liking Russia or not liking Russia. It was the G8," Trump said at the White House when he announced new U.S. reciprocal tariffs.

"I said, 'What are you doing? You guys - all you're talking about is Russia and they should be sitting at the table.' I think Putin would love to be back."

There was no immediate reaction to Trump's comments from Canada, which is chair of the G7 this year.​

 

[Saif]

US showed interest in lifting sanctions on Russia: Russian FM

Russia's foreign minister Sergei Lavrov suggested Tuesday that the United States was in favour of cutting sanctions on Moscow imposed over its Ukraine offensive, after holding high-level talks in Saudi Arabia

en.prothomalo.com

US showed interest in lifting sanctions on Russia: Russian FM
AFP
Riyadh, Saudi Arabia
Published: 18 Feb 2025, 21: 41

Russian foreign minister Sergey Lavrov at the joint press conference Prothom Alo

Russia's foreign minister Sergei Lavrov suggested Tuesday that the United States was in favour of cutting sanctions on Moscow imposed over its Ukraine offensive, after holding high-level talks in Saudi Arabia.

"There was strong interest in removing artificial barriers to the development of mutually beneficial economic cooperation," Lavrov told reporters after talks in Riyadh with top US officials.​

 

[Saif]

UK to unveil sweeping sanctions against Russia

London will unveil a significant package of sanctions against Russia on Monday, which marks three years since the start of its war with Ukraine, UK foreign secretary David Lammy said Sunday.

www.newagebd.net

UK to unveil sweeping sanctions against Russia
Agence France-Presse . London, United Kingdom 23 February, 2025, 22:10

London will unveil a significant package of sanctions against Russia on Monday, which marks three years since the start of its war with Ukraine, UK foreign secretary David Lammy said Sunday.

‘This is also the time to turn the screws on [Vladimir] Putin’s Russia,’ Lammy said in a statement.

‘Tomorrow [Monday], I plan to announce the largest package of sanctions against Russia since the early days of the war—eroding their military machine and reducing revenues fuelling the fires of destruction in Ukraine,’ he added.

UK’s decision to ramp up sanctions comes as US president Donald Trump has in recent weeks sought to sideline Kyiv and its European backers from talks with Russia on the future of the conflict.

‘This is a critical moment in the history of Ukraine, Britain and all of Europe... Now is the time for Europe to double down on our support for Ukraine,’ said Lammy.

London has already imposed sanctions on 1,900 people and organisations with link’s to Putin’s government since the start of the war, as of January 2025.

Its sanctions target the Russian financial, aviation, military and energy sectors, including through bank asset freezes, travel bans, and trade restrictions.

EU countries last week agreed a new round of sanctions which includes a ban on imports of Russian aluminium set to be formally adopted on Monday.

In his statement, Lammy reiterated UK’s military backing, which includes a pledge to provide $3.78 billion annually to Kyiv and ‘being ready and willing to provide UK troops as part of peacekeeping forces if necessary’.

‘Off the battlefield, we will work with the US and European partners to achieve a sustainable, just peace, and in doing so, remaining clear that there can be nothing about Ukraine without Ukraine,’ Lammy added.

On Saturday, UK prime minister Keir Starmer held separate phone calls with EU chief Ursula von der Leyen and Ukrainian president Volodymyr Zelensky, repeating a similar message to Lammy’s.

Starmer is headed to Washington to meet Trump on Thursday, hoping to act as a ‘bridge’ between the US and Europe to ensure territorial and security guarantees for Kyiv in the event of a deal to end the war.

The task looks increasingly challenging following a public spat in the last week between Zelensky and Trump, who called the Ukrainian leader a ‘dictator’ and hailed ‘good talks’ with Russia.

Trump also accused Starmer and French president Emmanuel Macron of doing nothing to end the war in a Fox News interview on Friday.

European countries fear that if Ukraine is forced into a bad deal by Washington then that will leave Putin claiming victory and the continent at the mercy of an emboldened Moscow.​

 

[Saif]

Trump hands Russian economy a lifeline after three years of war

Russia's overheating economy is on the cusp of serious cooling, as huge fiscal stimulus, soaring interest rates, stubbornly high inflation and Western sanctions take their toll, but after three years of war, Washington may just have thrown Moscow a lifeline. US President Donald Trump is pushing fo

thefinancialexpress.com.bd

Trump hands Russian economy a lifeline after three years of war
REUTERS
Published :
Feb 24, 2025 16:43
Updated :
Feb 24, 2025 16:43

People walk in Red Square on a sunny day in Moscow, Russia, February 23, 2025. Photo : REUTERS/Maxim Shemetov

Russia's overheating economy is on the cusp of serious cooling, as huge fiscal stimulus, soaring interest rates, stubbornly high inflation and Western sanctions take their toll, but after three years of war, Washington may just have thrown Moscow a lifeline.

US President Donald Trump is pushing for a quick deal to end the war in Ukraine, alarming Washington's European allies by leaving them and Ukraine out of initial talks with Russia and blaming Ukraine for Russia's 2022 invasion, political gifts for Moscow that could also bring strong economic benefits.

Washington's push comes as Moscow faces two undesirable options, according to Oleg Vyugin, former deputy chairman of Russia's central bank.

Russia can either stop inflating military spending as it presses to gain territory in Ukraine, he said, or maintain it and pay the price with years of slow growth, high inflation and falling living standards, all of which carry political risks.

Though government spending usually stimulates growth, non-regenerative spending on missiles at the expense of civilian sectors has caused overheating to the extent that interest rates at 21 per cent are slowing corporate investment and inflation cannot be tamed.

"For economic reasons, Russia is interested in negotiating a diplomatic end to the conflict," Vyugin said. "(This) will avoid further increasing the redistribution of limited resources for unproductive purposes. It's the only way to avoid stagflation."

While Russia is unlikely to swiftly reduce defence spending, which accounts for about a third of all budget expenditure, the prospect of a deal should ease other economic pressures, could bring sanctions relief and eventually the return of Western firms.

"The Russians will be reluctant to stop spending on arms production overnight, afraid of causing a recession, and because they need to restore the army," said Alexander Kolyandr, researcher at the Center for European Policy Analysis (CEPA).

"But by letting some soldiers go, that would take a bit of pressure off the labour market."

War-related recruitment and emigration have caused widespread labour shortages, pushing Russian unemployment to a record low 2.3 per cent.

Inflation pressure could also ease, Kolyandr added, as peace prospects may make Washington less likely to enforce secondary sanctions on companies from countries like China, making imports more straightforward and, therefore, cheaper.

NATURAL SLOWDOWN

Russian markets have already seen a boost. The rouble surged to a near six-month high against the dollar on Friday, buoyed by prospects for sanctions relief.

Russia's economy has grown strongly since a small contraction in 2022, but authorities expect 2024's 4.1 per cent growth to slow to around 1-2 per cent this year and the central bank is not yet seeing sustainable grounds to cut rates.

When holding rates at 21 per cent on February 14, Central Bank Governor Elvira Nabiullina said demand growth has long been faster than production capacity, hence the natural slowdown in growth.

The bank's challenge in finding a balance between growing the economy and lowering inflation is complicated by rampant fiscal stimulus. Russia's fiscal deficit ballooned to 1.7 trillion roubles ($19.21 billion) in January alone, a 14-fold increase year on year as Moscow frontloads 2025 spending.

"...it is very important for us that the budget deficit...remains as the government is currently planning," Nabiullina said.

The finance ministry, which expects a 1.2-trillion-rouble deficit for 2025 as a whole, rejigged its budget plans three times last year.

CARROT & STICK

The war has brought economic advantages for some Russians but pain for others.

For workers in sectors linked to the military, fiscal stimulus has sharply raised wages, while others in civilian sectors struggle with soaring prices for basic goods.

Some businesses have seized opportunities presented by huge shifts in trade flows and reduced competition. For example, Melon Fashion Group's revenues have steadily risen as it has ridden the consumer demand wave.

Melon's brands have significantly expanded over the last two years, the company told Reuters, and since 2023, the average size of stores it opens has doubled.

But for many others, high rates pose a serious challenge.

"At current lending rates, it is difficult for developments to launch new projects," said Elena Bondarchuk, founder of warehouse developer Orientir. "The once-wide circle of investors has narrowed and those who remain are also dependent on banks' terms."

Lower oil prices, budget constraints and a rise in bad corporate debt are among the top economic risks facing Russia, internal documents seen by Reuters show. And Trump, though dangling the carrot of concessions over Ukraine, has threatened additional sanctions if no deal is forthcoming.

"The United States has significant leverage in terms of the economy and it's why the Russians are happy to meet," Chris Weafer, chief executive of Macro-Advisory Ltd, told Reuters.

"The United States is saying: 'We can ease sanctions if you cooperate, but if you don't we can make it a hell of a lot worse'."​

 

[Saif]

Russia and US aim to fix diplomatic ties under Trump-Putin rapprochement

Russia and the US will seek to mend diplomatic ties during talks also focused on ending the conflict in Ukraine as part of a surprise rapprochement under President Donald Trump. Following is a history of recent rows over staffing and properties: NO RUSSIAN AMBASSADOR IN WASHINGTON Moscow has had

thefinancialexpress.com.bd

Russia and US aim to fix diplomatic ties under Trump-Putin rapprochement
REUTERS
Published :
Feb 26, 2025 21:16
Updated :
Feb 26, 2025 21:16

US and Russian flags are seen printed on paper in this illustration taken January 27, 2022. Photo : REUTERS/Dado Ruvic/Illustration/Files

Russia and the US will seek to mend diplomatic ties during talks also focused on ending the conflict in Ukraine as part of a surprise rapprochement under President Donald Trump.

Following is a history of recent rows over staffing and properties:

NO RUSSIAN AMBASSADOR IN WASHINGTON

Moscow has had no ambassador in Washington since last October when the previous envoy Anatoly Antonov left his post.

A senior Russian lawmaker said in late January that Washington had granted approval for a new ambassador, but the Foreign Ministry said on February 22 there was no agreement yet.

Russia plans to name Alexander Darchiev, head of the Foreign Ministry's North American department, as its new ambassador, the Kommersant newspaper reported in November.

The US has an ambassador in Moscow, Lynne Tracy.

EXPULSIONS

Days after President Vladimir Putin sent tens of thousands of Russian troops into Ukraine on February 24, 2022, the US ordered the expulsion of 12 Russian diplomats at the U.N. whom it described as intelligence operatives engaged in espionage.

That March, Russia expelled an unspecified number of US diplomats from their Moscow embassy in a tit-for-tat move.

Since then, the countries have continued to throw out each other's diplomats. It is unclear how many diplomats each side has in the other's country.

PROPERTY DISPUTE

Russia has been embroiled in a dispute over its diplomatic property in the US since 2017, when Washington closed down the Russian consulate in San Francisco and two diplomatic annexes in New York and Washington D.C. after accusations by American intelligence officials that Russia interfered in the 2016 US presidential election.

Moscow denied political interference and denounced the closures as a hostile act violating international law.

In 2018, President Donald Trump ordered the closure of the Russian consulate in Seattle due to its proximity to a US submarine base and planemaker Boeing Co (BA.N). At the same time, the US also expelled 60 Russian diplomats over a nerve agent attack in Britain on Sergei Skripal, a former Russian intelligence agent, which it blamed on Moscow.

In the years since, Moscow has appealed repeatedly to the UN to urge the US to return the property to Russia.

Russian Foreign Minister Sergei Lavrov said he raised the property issue in Russia-US talks in Riyadh on February 18 that were the first round of their rapprochement.

"We talked about removing artificial obstacles that seriously complicate the daily functioning of our embassies, consulates general," he added, referring to issues with financing and restrictions on movements, numbers and length of stay of diplomats.​

 

[Saif]

'Strongly considering' banking sanctions, tariffs on Russia, says Trump

Trump has also paused military aid and intelligence sharing to Ukraine to pressure Kyiv to accept a ceasefire deal after an explosive Oval Office meeting with Ukrainian President Volodymyr Zelenskiy a week ago

www.thedailystar.net

'Strongly considering' banking sanctions, tariffs on Russia, says Trump

Photo: AFP

US President Donald Trump said on Friday that he is "strongly considering" imposing sweeping sanctions, including ones on banking, and tariffs on Russia until a ceasefire and peace agreement is reached with Ukraine.

Trump has also paused military aid and intelligence sharing to Ukraine to pressure Kyiv to accept a ceasefire deal after an explosive Oval Office meeting with Ukrainian President Volodymyr Zelenskiy a week ago.

"Based on the fact that Russia is absolutely 'pounding' Ukraine on the battlefield right now, I am strongly considering large-scale Banking Sanctions, Sanctions, and Tariffs on Russia until a Cease Fire and FINAL SETTLEMENT AGREEMENT ON PEACE IS REACHED," Trump said. "To Russia and Ukraine, get to the table right now, before it is too late. Thank you!!!"

Trump has faced criticism for doubling down on Ukraine, including his comment last month that Kyiv, not Russia, was responsible for starting the war.

Trump's threat to impose sanctions and tariffs on Russia comes days after Reuters reported that the White House was drawing up a plan to potentially give Russia sanctions relief as part of the administration's push to end the war and improve diplomatic and economic relations with Moscow.

Russia, one of the world's biggest oil producers, is subject to thousands of sanctions imposed by the United States and partners after its invasion of Ukraine in February 2022.

US sanctions on Russia include measures aimed at limiting its oil and gas revenues, including a cap of $60 per barrel on Russia's oil exports.

In Washington's toughest-yet measures, former President Joe Biden also hit Moscow with sanctions on Russian energy companies and vessels that shipped its oil on January 10, followed by sanctions on 250 targets, including some based in China, to crack down on Russia's evasion of earlier US sanctions.

Those measures included fresh sanctions on almost 100 critical Russian entities - including banks and companies operating in the country's energy sector - that were previously sanctioned by the United States, increasing their secondary sanction risks.​