UKRAINE WRAP | Russia limits exports of noble gases, a key ingredient for making chips

June 02 2022 - 20:14

Russia limits exports of noble gases, a key ingredient for making chips

Sanctions-hit Russia has limited exports of noble gases such as neon, a key ingredient for making chips, until the end of 2022 to strengthen its market position, its trade ministry said on Thursday.

Russia's export curbs could worsen the supply crunch in the global chips market. Ukraine was one of the world's largest suppliers of noble gases until it suspended production at its plants in the cities of Mariupol and Odesa in March.

Exports of noble gases, which Russia used to supply to Japan and other countries, will be allowed only with special state permission until Dec. 31, the Russian government said on May 30.The move will provide an opportunity to "rearrange those chains that have now been broken and build new ones," Deputy Trade Minister Vasily Shpak told Reuters via the ministry's press service on Thursday.

Russia accounts for 30% of the global supply of noble gases, according to the ministry's estimate.

Taiwan, the world's leading producer of chips, imposed curbs on exports of this product to Russia after Moscow sent thousands of troops to Ukraine on Feb. 24.

"We plan to increase our production capacity (of noble gases) in the near future. We believe that we will have an opportunity to be heard in this global chain, and this will give us some competitive advantage if it is necessary to build mutually beneficial negotiations with our colleagues," Shpak said.

-Reuters

June 02 2022 - 17:08

Ukraine files treason case against Putin ally

Ukraine's State Bureau of Investigation has completed a pre-trial investigation into pro-Russian politician Viktor Medvedchuk, who is accused of treason, and it has filed the case to court, the law enforcement agency said on Thursday.

Medvedchuk, one of President Vladimir Putin's allies in Ukraine, faces up to 15 years in jail if convicted of treason and violating the laws and customs of war, the agency said in a statement on its website.

The investigators' report says Medvedchuk provided the leadership of Russia with assistance in carrying out subversive activities against Ukraine, including by collecting information about the location of military units.

The Ukrainian politician, who heads the Opposition Platform - For Life party, denies wrongdoing. He was detained in April, having escaped house arrest days after Russia invaded Ukraine on Feb. 24.

He had been placed under house arrest on suspicion of treason last year.

-Reuters

June 02 2022 - 15:34

Finland, Baltic states postpone gas pipeline maintenance to secure supply

The gas transmission system operators of Finland and the Baltic states have agreed to postpone summer maintenance on the Balticconnector pipeline, Finland's Gasgrid said in a statement on Thursday.

"Summer capacity on Balticconnector has been restored to normal levels," Estonia's Elering said.

The pipeline, linking Finland with Estonia, has become a key source of energy supply for Finnish companies following Russia's decision last month to cut deliveries to the Nordic country, part of a dispute with the West over energy and the war in Ukraine.

The decision to postpone Balticconnector maintenance was "due to disruption through Imatra point", Elering said.

Imatra was, until May 21, the entry point for Russian gas into Finland. 

Reuters 

June 02 2022 - 15:00

Ukraine may turn off Russian-held nuclear plant if it loses control - Ifax

Ukraine would consider switching off its Zaporizhzhia nuclear power plant that lies in Russian-occupied territory if Kyiv loses control of operations at the site, Interfax news agency cited an aide to the prime minister as saying on Thursday.

The facility in southeast Ukraine is Europe's largest nuclear power plant.

"As long as the control commands are executed and the site maintains the regime, we are not stopping. But the scenario in which the station could move completely out of control and we stop it is also being looked at," the official was quoted as saying. 

Reuters 

June 02 2022 - 14:45

Russia won't close Tsar Peter's 'window to Europe', Kremlin says

The Kremlin said on Thursday that Russia did not plan to close "the window" to Europe which Tsar Peter the Great sought to open 300 years ago even though the West has imposed the most onerous sanctions in recent history over Russia's invasion of Ukraine.

Russia's Feb. 24 invasion has killed thousands, displaced 13 million and raised fears of a broader conflict between the United States and Russia, by far the world's biggest nuclear powers

.President Vladimir Putin says the West wants to destroy Russia, that the economic sanctions are akin to a declaration of economic war and that now Russia will turn towards building ties with other powers in Asia and Middle East.

Asked if Russia would now turn the clock back on Peter I's efforts to open Russia up to Europe, Kremlin spokesman Dmitry Peskov said: "No one is planning to close anything."

Peter, who ruled from 1682 to 1725, oversaw Russia's transformation into a major European power and founded the city of Saint Petersburg, dubbed Russia's "window to Europe".

He founded the Russian Empire in 1721.Putin is a "deep connoisseur of history" and is well aware of Peter's legacy, Peskov said.

"If we are talking specifically about Peter the Great, Putin very much appreciates the role of this particular individual in the history of our country", he said.

Peter sought to import Western technology and battled against traditions which he felt were hindering the development of Russian power, though many of his reforms strengthened Russian autocracy.

Putin says the "special military operation" in Ukraine is necessary to demilitarise and "denazify" the country, and because the United States was using Ukraine to threaten Russia through NATO enlargement and Moscow had to defend against the persecution of Russian-speaking people.

Ukraine and its Western allies reject these as baseless pretexts to invade a sovereign country.

Reuters 

June 02 2022 - 13:14

Ukraine calls for more arms supplies to help war reach 'inflection point'

President Volodymyr Zelenskiy called on the West on Thursday to step up its supplies of weapons to Ukraine to push Kyiv's grinding war with Russia towards an "inflection point" that would allow it to win.

Addressing the GLOBSEC 2022 Bratislava Forum in the Slovak capital by video link, the Ukrainian leader said that divisions in Europe created opportunities for Russia to exploit, but said that Kyiv was grateful for assistance from the West so far. 

Reuters 

June 02 2022 - 12:21

Kremlin says Russia won't sell oil at a loss

Russia will certainly not sell its oil at a loss, Kremlin spokesperson Dmitry Peskov said on Thursday.

Peskov said in a conference call with reporters that oil flows get redirected as demand falls and increases in different places.

Reuters

June 02 2022 - 12:09

Russia trying to capture key Donetsk cities- governor

Russian forces in Ukraine's east are attempting to advance south towards the key Ukrainian-held cities of Kramatorsk and Sloviansk, the local region's governor said on Thursday.

"The Lyman and Izyum fronts are the main directions in which the enemy is trying to advance in order to capture the territories of Sloviansk and Kramatorsk, (their) key aims in the north of the region," Donetsk governor Pavlo Kyrylenko told a briefing.

Kramatorsk has been the de-facto capital of the Donetsk region since 2014, after the city of Donetsk was captured by Russia-backed separatists.

Kyrylenko also said 340,000 residents remained in the Ukrainian-controlled part of the region, out of a pre-war population of 1.67 million. 

Reuters 

June 02 2022 - 12:00

Time is running out for Russia, German economy minister says

Germany must work harder to reduce its energy-dependence on Russia but western sanctions in response to Moscow's invasion of Ukraine are still taking a heavy toll on the Russian war machine, German Economy Minister Robert Habeck said on Thursday."

The Russian economy is collapsing," Habeck told lawmakers, adding that exports to Russia from Germany had dropped by 60% in March with an even sharper fall expected in April."

Putin is still getting money but ... time is not working for Russia, it is working against Russia," the minister said. 

Reuters 

June 02 2022 - 11:43

Moscow calls EU move to phase out Russian oil 'self-destructive'

Russia warned on Thursday that the European Union's decision to partially phase out Russian oil would likely destabilize global energy markets, calling it a 'self-destructive' step that could backfire on the bloc.

EU leaders agreed in principle on Monday to cut 90% of oil imports from Russia by the end of this year, the bloc's toughest sanctions yet since the start of the invasion of Ukraine, which Moscow calls a "special military operation".

"The European Union's decisions to partially phase out Russian oil and oil products, as well as to ban insurance on Russian merchant ships, are highly likely to provoke further price increases, destabilize energy markets, and disrupt supply chains," Russia's foreign ministry said in a statement.

The EU has hit Russia with multiple rounds of sanctions since it invaded Ukraine in February, demonstrating uncharacteristic speed and unity given the complexity of the measures.

European Council President Charles Michel said the move to phase out Russian oil would deprive Moscow of a huge source of financing and put pressure on it to end its military campaign, but Moscow warned that the measures would end up harming the bloc's economy."

Brussels and its political sponsors in Washington bear full responsibility for the risk of an exacerbation in global food and energy issues caused by the illegitimate actions of the European Union," Russia's foreign ministry said. 

Reuters 

June 02 2022 - 11:39

Russia's Sberbank has no need for additional capital - Ifax cites CEO

Russia's largest lender Sberbank has no need for additional capital, the Interfax news agency quoted chief executive German Gref as saying on Thursday.

A senior central bank official said last month that some Russian banks would need additional capital and that the country's top 20 lenders would be assessed for their financial strength. 

Reuters 

June 02 2022 - 10:55

Russia says it shoots down Ukrainian Su-25 fighter jet

Russia's defence ministry said on Thursday its military had downed a Ukrainian Su-25 fighter jet in the Mykolaiv region.

It also said in a briefing that it had struck command points of Ukrainian forces near Kharkiv.

It was not possible to independently confirm the information

Reuters 

June 02 2022 - 10:32

Wheat can't be 'weapon of war', Pope says, urging lifting of Ukraine block

Pope Francis appealed to authorities on Wednesday to lift a block on exports of wheat from Ukraine, saying the grain could not be used as a "weapon of war".

Many millions of people, particularly in the world's poorest countries, depend on wheat from Ukraine, the pope told a general audience of thousands of people gathered in St. Peter's Square, calling for the block to be lifted.

The United Nations, which says a global food crisis is worsening, is trying to broker a deal to unblock Ukraine's grain exports, though Western leaders have blamed Russia for holding the world to ransom by blockading Ukrainian ports.

June 02 2022 - 10:30

Russia lifts quotas for some fertiliser exports -Ifax

The Russian government has removed export quotas on some fertilisers, the Interfax news agency said on Thursday.

Extension of the non-tariff quota for di-ammonium phosphate (DAP), sodium nitrate and mixtures of calcium nitrate and ammonium nitrate has been deemed unworkable due to low demand from domestic farmers, the agency said citing the Russian Ministry of Industry and Trade.

Russia has set quotas for fertiliser exports for July through December, saying in a statement on Tuesday it aimed to secure sufficient supply for domestic farmers.The restrictions extend measures introduced for the past six months.

Reuters 

June 02 2022 - 09:50

School buses honor Ukrainian children killed in war

Eight school buses pulled into Lviv's central square, with their empty seats serving as a reminder of the 243 children killed since February 24, when Russia launched a full-scale invasion of Ukraine.

June 02 2022 - 09:45

Russia's national depository to replace Citi as Eurobond servicing agent

Russia's National Settlement Depository will service the country's Eurobonds after Citibank stopped acting as a fiscal, transfer and payment agent, the finance ministry said on Thursday.

The finance ministry also said that a delay in payments on its Russia-2022 Eurobond that were due on April 4 was caused by "unlawful actions" of foreign financial intermediaries.

Reuters 

June 02 2022 - 08:47

Slovakia to deliver eight Zuzana 2 howitzers to Ukraine, says ministry

Slovakia will deliver eight self-propelled Zuzana 2 howitzers to Ukraine under a commercial contract which a state-controlled producer signed, the Slovak Defence Ministry said on Thursday.

The Zuzana 2 howitzer, a modernised version of an older model, is using 155-mm rounds and has an effective range of 40 km (25 miles) to more than 50 km (30 miles) depending on the ammunition type.

Reuters 

June 02 2022 - 08:30

OPEC+ working on making up for lower Russian oil output

OPEC+ is working on compensating for a drop in Russian oil output, two OPEC+ sources said on Thursday, as Russia's production has fallen by around 1 million barrels per day in recent months as a result of Western sanctions on Moscow over Ukraine.

One OPEC+ source familiar with the Russian position said Moscow could agree to other producers compensating for its lower output but it may not happen at a Thursday meeting and might not be in full.

A Gulf OPEC+ source said a decision on the matter was "highly possible" at a meeting on Thursday.

Reuters 

June 02 2022 - 07:49

Swiss drugmaker Novartis resumes Ukraine business

Novartis is resuming business in Ukraine after reviewing how safe it was to operate in the country that Russia invaded in February, the Swiss drugmaker said.

"After studying current safety protocols in the country, and on advice which we will regularly review, we have begun to resume business operations remotely to help the war-torn country restore some basic critical business processes," Novartis said on its website in a post dated June 1.

"The safety and security of our people remains our number one objective, and we will constantly review the situation and our business operations in Ukraine."

Novartis said it condemned the war in Ukraine and has been providing humanitarian support, financial donations and medicine to people there. Russia describes its invasion as a "special military operation" to disarm and "de-Nazify" its neighbour. 

Reuters 

June 02 2022 - 06:42

Ukrainians taught how to clear mines in Kosovo

Ukrainian civilian and military personnel are in Kosovo, learning how to clear mines during an advanced four-week training course, before returning home to help in the huge task of removing mines and other explosives left during Russia's Ukraine invasion.

June 02 2022 - 06:22

Taiwanese learn to shoot as Ukraine fuels China fears

From tour guides to tattoo artists, Taiwanese who have never held a gun before are taking shooting lessons for the first time, as Russia's invasion of Ukraine ramps up anxiety at the prospect of China making a similar move.

June 02 2022 - 06:00

US to send precision rockets to Ukraine

In a boost for Ukraine, locked in a grinding struggle against Russia's invading army, the United States announced a new $700 million weapons package for Kyiv which will include advanced rocket systems.