[🇷🇺] Russia vs West

[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'."​