Summary
It is now approaching 9pm in Kyiv, Ukraine’s capital. Here is a summary of the main stories from today:
Officials have said that a number of building were damaged and several people wounded in a large-scale air-attack on Ukraine’s western region of Lviv and the north-western region of Volyn. “Many missiles were shot down, but there were also hits in Lviv,” city mayor Andriy Sadovyi said, adding that orders were given to evacuate at least one burning apartment building.
Russia said its forces struck military industrial facilities at several sites across Ukraine overnight after authorities in the west of the country announced aerial attacks had left three dead. Adding that it had carried out long-range precision strikes on “key” facilities, the defence ministry said in a statement: “Ukraine’s military-industrial complex suffered significant damage.”
The Kyiv Independent reports, citing Volyn oblast Governor Yurii Pohuliaiko, that three people were killed in Russia’s attack on western Ukrainian city of Lutsk overnight. Several people were hospitalised in Lutsk after a business enterprise was hit, Yuriy Pohulyaiko, governor the Volyn region of which Lutsk is the administrative centre, said on the Telegram messaging app.
Russia’s central bank has announced it will hold an extraordinary meeting on Tuesday to discuss the level of its key interest rate after the rouble fell to its weakest point in almost 17 months. The currency has been steadily losing value since the beginning of the year and slid past the psychologically important level of 100 to the dollar on Monday morning, the Guardian’s Pjotr Sauer reported.
The Bank of Russia has raised its key rate to 12% from 8.5%. The statement doesn’t mention the rouble, which dropped to its lowest level in nearly 17 months yesterday. The Russian currency has been boosted by the central bank’s move. It now takes 97 roubles to buy a dollar, whereas yesterday the exchange rate was at 102 roubles per dollar at one stage. You can read the statement on the Bank of Russia’s website.
Russia on Tuesday fined social media site Reddit for the first time for not deleting “banned content” that it said contained “fake” information about Russia’s military campaign in Ukraine, RIA reported, citing a Moscow court. Reddit joins a list of sites under scrutiny in Russia for failing to remove content that Moscow deems illegal, including Wikimedia, streaming service Twitch, and Google.
Three suspected spies for Russia in Britain have been arrested and charged in a major national security investigation, the BBC reports. The defendants are Bulgarian nationals alleged to be working for Russian security services, the BBC said. They were held in February under the Official Secrets Act by counter-terrorism detectives at London’s Metropolitan police, which has a policing responsibility for espionage, the report added.
Andriy Yermak, head of the office of the president of Ukraine, said Russian athletes should be banned from participating in international competitions after Russian strikes destroyed a sports facility in Dnipro. Kira Rudik, a Ukrainian MP and the leader of the liberal Golos party, also said Ukraine will boycott the Olympic Games if Russia and Belarus participate in the competition.
Mali’s military leader Assimi Goita said on Tuesday that he had spoken on the phone to the Russian president, Vladimir Putin, about the coup in Niger. Putin “stressed the importance of a peaceful resolution of the situation for a more stable Sahel,” Mali’s interim president, Assimi Goita, said on Twitter. The Kremlin said the call was initiated by Mali. The statement added: “The parties specifically focused on the current situation in the Sahara-Sahel region and emphasised, in particular, the importance of settling the situation in the Republic of Niger solely through peaceful political and diplomatic means.”
The US said that Russia would be violating UN resolutions if it reaches an arms deal with North Korea, after the two countries’ leaders called for greater cooperation. State department spokesperson Vedant Patel told reporters: “Any kind of security cooperation or arms deal between North Korea and Russia would certainly violate a series of UN security council resolutions.”
Sweden’s government said Tuesday that it would donate to Ukraine ammunition and spare parts for previously donated weapon systems worth over $300m (£240m). Speaking at press conference, defence minister Pal Jonson said the military aid package, Sweden’s 13th to Ukraine, would include ammunition and spare parts valued at about 3.4bn kronor ($313m/£250m).
The Ukrainian government is to build new fortifications and military infrastructure in northeast regions that border Russia and Belarus at a cost of nearly $35 million, prime minister Denys Shmyhal said on Tuesday.
The Ukrainian president, Volodymyr Zelenskiy, visited the south-eastern region of Zaporizhzhia and met troops fighting in the counteroffensive against Russian forces in the south, the president’s office said on Tuesday. Zelenskiy was shown in a video with senior Ukrainian soldiers examining a battlefield map at what the president’s office said was the frontline command point of the 46th separate airmobile brigade, near the town of Orikhiv, Reuters reports.
Russia and North Korea on Tuesday advocated closer collaboration including in the defence sector. Moscow and Pyongyang have drawn closer since the Kremlin deployed troops to Ukraine and commenced large-scale hostilities last year, according to AFP.
The US said that Russia would be violating UN resolutions if it reaches an arms deal with North Korea, after the two countries’ leaders called for greater cooperation.
State department spokesperson Vedant Patel told reporters:
Any kind of security cooperation or arms deal between North Korea and Russia would certainly violate a series of UN security council resolutions.
Patel highlighted that Russia was relying on some of the world’s most ostracised nations, North Korea and Iran, to support its “war of aggression” against Ukraine, AFP reports.
He added:
Our information indicates that Russia is seeking to increase this type of military cooperation with the DPRK [the Democratic People’s Republic of Korea].
The Ukrainian president, Volodymyr Zelenskiy, extended his “best wishes” to Poland and its armed forces on Polish Army day.
In a tweet, he said:
On the occasion of the Polish Army Day, I extend my best wishes to Poland and its Armed Forces. Solidarity always wins and we will always be free with you – both Ukraine and Poland – as long as we are together side by side. Thank you for supporting our defence!
Z okazji Święta Wojska Polskiego składam Polsce i jej Siłom Zbrojnym najserdeczniejsze życzenia. Solidarność zawsze zwycięża i zawsze będziemy z wami wolni – zarówno Ukraina, jak i Polska – dopóki będziemy razem ramię w ramię. Dziękuję za wsparcie naszej obrony!
— Володимир Зеленський (@ZelenskyyUa) August 15, 2023
Here are some images sent to us over the wires of the aftermath of the Russian strike which hit Ukraine’s western region, including in the village of Stavchany, Lviv oblast.
Andriy Yermak, head of the office of the president of Ukraine said he and Volodymyr Zelenskiy had a “frank conversation” about the situation at the frontline during their visit today.
South of Ukraine. Together with President and the team met with our soldiers today. Had a frank conversation about the situation at the frontline as well as needs and current issues with our heroes.
— Andriy Yermak (@AndriyYermak) August 15, 2023
It is a great honor for me to be here. pic.twitter.com/aROC5JncUY
Russia launched the test phase of a digital ruble on Tuesday, in a bid to limit the impact of international sanctions imposed after its offensive in Ukraine, AFP reports.
Russia’s central bank told AFP:
On 15 August, the tests of operations with real digital rubles began.
The trial phase involves 13 other banks and 600 individuals who can make payments at 30 sales points in 11 Russian cities, it added.
“Operations will be free for citizens and with a minimal commission for businesses” in the long run, the central bank said.
VTB, Russia’s second-largest bank, said it had successfully tested transactions using digital rubles in its mobile app.
Moscow’s foray into digital currencies aims to limit the impact of international restrictions on its financial system.
Like cryptocurrencies, the digital ruble uses blockchain technology, which facilitates direct transactions through a decentralised database.
The main difference lies in its status as a “central bank digital currency”, which is tightly controlled.
The digital rubles are issued by the Russian central bank and stocked in electronic wallets, with the FSB national Security Service monitoring the system.
The authorities say digital rubles will make payments safer, but some observers see an attempt by the government to further control its citizens.
Moscow hopes the new currency will be extended to all Russians who want it “by 2025 to 2027”, the central bank told AFP.
Russia and North Korea on Tuesday advocated closer collaboration including in the defence sector.
Moscow and Pyongyang have drawn closer since the Kremlin deployed troops to Ukraine and commenced large-scale hostilities last year, according to AFP.
In a statement carried by the Russian state-run RIA news agency, The North Korean leader, Kim Jong-un emphasised the need for continued cooperation. It said:
[Kim Jong-un] stressed the need to further develop tactical and strategic cooperation and interaction between the two countries in the fields of defence and security.
The Russian president Vladimir Putin earlier Tuesday called for deeper ties, in a congratulatory message to Kim marking his country’s National Liberation Day.
In a statement distributed by the Kremlin, Putin said:
I am sure that we will continue to build up bilateral cooperation in all areas for the benefit of our peoples, in the interests of strengthening stability and security on the Korean Peninsula and in the north-east Asian region as a whole,” Putin said it was during Korea’s liberation from Japan and “harsh wartime” that groundwork was laid for close cooperation between Moscow and Pyongyang.
The US secretary of state, Antony Blinken, responded to the visit saying the United States believed Sergei Shoigu was in North Korea to secure supplies of weapons to aid Russian forces fighting in Ukraine.
The Ukrainian president, Volodymyr Zelenskiy, visited the south-eastern region of Zaporizhzhia and met troops fighting in the counteroffensive against Russian forces in the south, the president’s office said on Tuesday.
Zelenskiy was shown in a video with senior Ukrainian soldiers examining a battlefield map at what the president’s office said was the frontline command point of the 46th separate airmobile brigade, near the town of Orikhiv, Reuters reports.
In a statement, the president’s office said:
The president listened to reports by the commanders on the course of combat actions in frontline areas … and discussed the most problematic issues of their units together with the brigades and combatants.
The military emphasised the need for electronic warfare and frontline air defence systems to counter enemy aircraft and drones. There is also a need for drones, as they are quickly consumed in offensive operations.
Kira Rudik, a Ukrainian MP and the leader of the liberal Golos party, said Ukraine will boycott the Olympic Games if Russia and Belarus participate in the competition.
Rudik also rejected the “myth” that “sport is out of politics”, saying the Russia has killed 340 athletes and coaches. These claims have not been independently verified.
This comes as a Russian missile destroyed a sports facility in Dnipro.
The Ukrainian government is to build new fortifications and military infrastructure in northeast regions that border Russia and Belarus at a cost of nearly $35 million, prime minister Denys Shmyhal said on Tuesday.
Shmyhal said on Telegram:
At the request of Kharkiv and Chernihiv...we are allocating 911.5 million hryvnias ($24.7 million) for Kharkiv and 363 million ($9.8 million) for Chernihiv to build military engineering and fortification structures.
The Chernihiv region that borders Russia and Belarus was partially occupied at the start of Russia’s full-scale invasion in February 2022, but it was later liberated.
Belarus, the Kremlin’s closest ally, initially supported the Russian invasion, opening its borders to Russian troops marching on Ukraine’s capital Kyiv.
Minsk also provided its territory to fighters from the Wagner mercenary group whose move to Belarus was part of a deal that ended their attempted mutiny in June. The eastern Kharkiv region, which borders the Russian region of Belgorod, is still partially occupied and has been the site of active fighting in recent weeks.
Since the liberation of its territories, Ukraine has been actively building defences on its borders to prevent being invaded again. It maintains a significant force in the north.
Moscow’s forces control a swathe of southern and eastern Ukraine.
Here’s some analysis from The Guardian’s economics editor Larry Elliott on Russia’s war-fuelled economic woes.
Protracted wars are costly and cause economic damage. Ancient Rome discovered that, as did the US in the 1960s when the conflict in Vietnam was one factor behind pressure on the dollar that led eventually to the breakup of the Bretton Woods fixed currency system.
The decision by Russia’s central bank to raise interest rates from 8.5% to 12% to defend the plunging rouble is the latest example of this age-old truth. Eighteen months into the war with Ukraine, Russia’s current account surplus is shrinking and inflationary pressure is growing. The currency is taking the strain, and the trigger for Tuesday’s emergency move appears to have been the rouble hitting 100 to the US dollar on Monday.
Thus far, policymakers in Russia have made a decent fist of keeping the show on the road, despite attempts by the west to impose an economic blockade. The International Monetary Fund has revised up its forecasts for growth this year, and official figures show the economy expanded by almost 5% between the second quarters of 2022 and 2023.
The Russian economy is now showing clear signs of overheating as it runs into capacity constraints. Inflation over the past three months has been running at an annualised rate of more than 7% – well in excess of the 4% official target.
In a sense, this is inevitable given the Kremlin’s decision to continue spending large sums of money on the war. That has meant running the economy hot. Attempts to support living standards to maintain support for the war among ordinary Russians have added to upward cost pressures. Sanctions are starting to bite harder now that falling global energy prices have led to a sharp reduction in exports.
Russia’s central bank will be hoping the latest tightening of policy has a similar impact to the “shock and awe” announcement shortly after the invasion that interest rates were being raised to 20%. That helped stabilise the currency, which at one stage last year hit a low of 150 roubles to the dollar. So far this year, it has fallen by 30%.
The feeling among analysts is that the move to raise official borrowing costs is a sticking plaster solution to a problem that will only be solved when the fighting stops. “As long as the war continues it just gets worse for Russia, the Russian economy and the rouble,” said Timothy Ash, strategist at RBC Bluebay Asset Management.
Read more here:
Updated
Russia says wave of attacks targeted 'key' facilities in Ukraine
Russia said its forces struck military industrial facilities at several sites across Ukraine overnight after authorities in the west of the country announced aerial attacks had left three dead.
Adding that it had carried out long-range precision strikes on “key” facilities, the defence ministry said in a statement:
Ukraine’s military-industrial complex suffered significant damage.
The Ukrainian air force said it destroyed 16 out of the 28 cruise missiles launched by Russia overnight.
One missile, however, hit a factory of Swedish ball bearing maker SKF in the western city of Lutsk, killing three employees.
Carl Bjernstam, an SKF spokesman, told AFP:
We are very sad to also be able to confirm that three of our employees died in this attack.
Earlier, Ukrainian officials accused Moscow of intentionally targeting civilians with the attacks.
Updated
Russian forces unleashed a barrage of missiles on regions across Ukraine overnight, killing civilians and damaging infrastructure.
The barrage came as Moscow’s war on its neighbour nears the 18-month mark, and just hours before top Russian military officials and their counterparts from Asia, the Middle East and Africa gathered outside Moscow for a security conference where the fighting in Ukraine is likely to dominate the agenda.
The Ukrainian air force says Russia fired a total of 28 cruise missiles at the country early Tuesday. Sixteen of them were intercepted.
Damage has been reported in the regions of Lviv, Ivano-Frankivsk, Volyn, Dnipropetrovsk, Cherkasy, Zaporizhzhia, Dnipro and Donetsk.
Russia’s defence minister told officials on Tuesday that Ukraine’s ability to fight had been “almost exhausted” and said the war had exposed vulnerabilities in western weapons systems that Moscow would soon share.
Speaking to a security conference in Moscow attended by China’s defence minister, Li Shangfu, defence minister Sergei Shoigu, 68, said the conflict had been a serious test for Russia.
Reuters reports that, in a rare public speech, Shoigu said:
In the special military operation, the Russian army has debunked many myths about the superiority of western military standards.
The preliminary results of combat operations show that Ukraine’s military resources are almost exhausted.
He did not give detailed evidence to back up either statement.
Shoigu said he would share details about the weaknesses of western weapons and that none were invulnerable.
He added:
We have data on the destruction of German tanks, American armoured vehicles, British missiles and other weapons systems.
We are ready to share our assessments … with our partners.
The Kremlin released a statement about the phone call between the Russian president, Vladimir Putin, and Mali’s military leader, Assimi Goita, about the recent coup in Niger.
Putin “stressed the importance of a peaceful resolution of the situation for a more stable Sahel,” Mali’s interim president, Assimi Goita, said on Twitter.
The Kremlin said the call was initiated by Mali. The statement added:
The parties specifically focused on the current situation in the Sahara-Sahel region and emphasised, in particular, the importance of settling the situation in the Republic of Niger solely through peaceful political and diplomatic means.
Russian security forces on Tuesday prevented a Ukrainian sabotage group from infiltrating the border region of Bryansk, the region’s governor said.
Russian regions bordering Ukraine have reported repeated shelling and attacks from Kyiv’s forces, including occasional cross-border incursions by pro-Ukraine armed militants, AFP reports.
Bryansk governor Alexander Bogomaz said Russian soldiers and security services stopped the Ukrainian group near the village of Kurkovichi, less than two miles (3.2km) from the border.
On social media, Bogomaz said:
There were no casualties.
He added that Ukrainian shelling in the region had killed a farm animal and damaged industrial buildings.
Ukraine has not claimed responsibility for the attacks.
Updated
Russia’s defence ministry on Tuesday said its forces had hit key military industrial facilities in Ukraine during the night with high-precision missiles, inflicting “significant damage”, the Interfax news agency reported.
Russia also said it had for the first time intercepted SCALP cruise missiles supplied to Ukraine by France, according to Reuters.
Reuters could not immediately verify the battlefield report.
Sweden’s government said Tuesday that it would donate to Ukraine ammunition and spare parts for previously donated weapon systems worth over $300m (£240m).
Speaking at press conference, defence minister Pal Jonson said the military aid package, Sweden’s 13th to Ukraine, would include ammunition and spare parts valued at about 3.4bn kronor ($313m/£250m).
The ammo and parts would be for CV-90 infantry fighting vehicles (IFV), Archer artillery systems and Leopard 2 tanks. It will also include mine clearing equipment and ammunition for air-defence systems – which Jonson said were crucial to prevent Russia from achieving air supremacy in Ukraine, AFP reports.
Jonson told reporters:
During the spring and winter we sent large materiel packages, that is to say a number of systems.
Now we are making sure that the Ukrainians in the long term are also able to use these to reach successes on the battlefield.
He said the government aimed to have parliament vote on the package Thursday, which would enable the government to move forward on Friday.
A massive explosion at a petrol station in Russia’s southern republic of Dagestan killed 35 people and injured scores more, Russian officials said Tuesday.
Russia’s health ministry said 115 people were injured in the blast and subsequent fire, and 35 of them died, including three children, AP reports.
A total of 65 of those injured, including 16 children, remained hospitalised as of midday Tuesday, the ministry said. Eleven people, including two children, were in grave condition.
The explosion occurred Monday night on the outskirts of Makhachkala, the region’s capital. A fire started at a car repair shop and spread to a nearby petrol station, triggering the blast.
Russian state media said some of those injured would be airlifted to Moscow for treatment, which is about 1,600 kilometers (990 miles) south of Makhachkala.
The authorities have begun a criminal investigation. Tuesday has been declared a day of mourning in Dagestan.
Mali’s military leader Assimi Goita said on Tuesday that he had spoken on the phone to the Russian president, Vladimir Putin, about the coup in Niger.
On Twitter, Goita said: “[Putin] stressed the importance of a peaceful resolution of the situation for a more stable Sahel.
Russia’s armed forces on Tuesday prevented an attempt by a group of Ukrainian so-called saboteurs to cross the border into Russia’s Bryansk region, Reuters reports the region’s governor, Alexander Bogomaz, saying in a post on Telegram.
These claims have not been independently verified.
Andriy Yermak, head of the office of the president of Ukraine, said Russian athletes should be banned from participating in international competitions after Russian strikes destroyed a sports facility in Dnipro.
The sports facility in Dnipro after the Russian strikes.
— Andriy Yermak (@AndriyYermak) August 15, 2023
All Russian athletes should be banned from participating in international competitions, even under a neutral flag. pic.twitter.com/BtN0Mr6C7q
Updated
Russia on Tuesday released video footage showing an armed naval inspection unit boarding a cargo ship in the south-western Black Sea on Sunday and questioning the captain about why the ship had not stopped when demanded to by a Russian warship.
Russia said that it fired warning shots with automatic weapons at the Palau-flagged Sukru Okan vessel after it failed to respond to a demand for it to halt, though it was unclear why the ship was boarded so close to Turkey, Reuters reports.
In a video released by the Russian defence ministry, crew members can be seen kneeling on deck with their hands on their head as a Russian Ka-29 helicopter approaches.
What appears to be bodycam footage from the naval unit, shows Russian servicemen with automatic weapons checking the ship and entering the bridge.
“Stop machine, stop machine,” one of the armed Russians says as crew members put their hands on their heads and kneel before the Russian weapons.
The defence ministry said:
During the inspection activities carried out, the work of the inspection team was carried out professionally in accordance with the requirements of international documents.
After the completion of the work of the inspection team on board the Sukru Okan, a verification protocol was drawn up, the ship continued to move to the port of Izmail.
Mykhailo Podolyak, an adviser to the Ukrainian president Volodymyr Zelenskiy, described the Russian missile attacks “on civilians” in western Ukraine, as “solely for the sake of killing and psychological pressure”.
The Ukrainian air force said Russia fired a total of 28 cruise missiles at the country. Sixteen of them were intercepted, the statement said.
On Twitter, Podolyak said:
Deliberate large-scale attacks on civilians. Solely for the sake of killing and psychological pressure.
Podolyak added that the barrage was “an undeniable manifestation” of Russia’s “terrorist activity, legally documented by numerous destructions and victims.”
Six out of seven Russian-launched missiles hit the western region of Lviv, wounding 15 people, Lviv’s governor, Maksym Kozytskyi, reported. More than forty buildings and houses were damaged in the region that borders Poland, including in the city of Lviv, and the power grid was also damaged.
Kira Rudik, a Ukrainian MP and the leader of the liberal Golos party, shared a video showing the aftermath of a Russian attack on Lviv, which injured at least 15 people and damaged more than 40 buildings.
In a tweet, she said:
It is a pure terrorism.
Aftermath of russia’s barbaric attack on Lviv region: at least 15 injured, 40 buildings damaged. It is a pure terrorism.
— Kira Rudik (@kiraincongress) August 15, 2023
Video: Serhiy Kruk pic.twitter.com/HEpEY9DMHS
Three suspected spies for Russia in Britain have been arrested and charged in a major national security investigation, the BBC reports.
The defendants are Bulgarian nationals alleged to be working for Russian security services, the BBC said.
They were held in February under the Official Secrets Act by counter-terrorism detectives at London’s Metropolitan Police, which has a policing responsibility for espionage, the report added.
The Met Police had no immediate comment when contacted by Reuters.
More to follow.
Russian defence minister Sergei Shoigu said that Ukraine’s military resources were “almost exhausted”, as Kyiv wages a gruelling counter offensive to recapture lost territory, AFP reports.
Shoigu said at a security conference in Moscow:
Despite comprehensive assistance from the West, Ukraine’s armed forces are unable to achieve results.
Preliminary results of the hostilities show that Ukraine’s military resources are almost exhausted.
He added that there was “nothing unique” about Western weapons and that they were not invulnerable to Russian arms on the battlefield.
Kyiv kicked off its long anticipated counter offensive in June, but has acknowledged tough battles as it struggles to break through heavily fortified Russian positions.
While Ukraine has claimed gains around the war-torn city of Bakhmut in its east, Russia has claimed advances around the town of Kupiansk in the northeastern Kharkiv region.
Shoigu was speaking at the Moscow Conference on International Security. Russia invited representatives from over 100 nations to attend, but Western countries were excluded.
Russia on Tuesday fined social media site Reddit for the first time for not deleting “banned content” that it said contained “fake” information about Russia’s military campaign in Ukraine, RIA reported, citing a Moscow court.
Reddit joins a list of sites under scrutiny in Russia for failing to remove content that Moscow deems illegal, including Wikimedia, streaming service Twitch, and Google.
RIA said the court had fined Reddit 2 million roubles (£16,000). Reddit did not immediately respond to an emailed request for comment, Reuters reports.
Since invading Ukraine last year, Russia has tightened controls over coverage of the conflict by media and bloggers, introducing tougher punishments for “discrediting” the actions of its armed forces or publishing false information about them.
Rouble recovers after central bank rate hike
The statement doesn’t mention the rouble, which dropped to its lowest level in nearly 17 months yesterday. The Russian currency has been boosted by the central bank’s move.
It now takes 97 roubles to buy a dollar, whereas yesterday the exchange rate was at 102 roubles per dollar at one stage.
Russia’s central bank lifts rates to 12%
The Bank of Russia has raised its key rate to 12% from 8.5%. It explained in a statement on its website:
The decision is aimed at limiting price stability risks.
Inflationary pressure is building up. As of 7 August, the annual rate of inflation rose to 4.4% while current price growth rates continue to increase. Over the last three months current price growth amounted to 7.6% on average in annualised terms on a seasonally adjusted basis. The same core inflation measure went up to 7.1%.
Steady growth in domestic demand surpassing the capacity to expand output amplifies the underlying inflationary pressure and has impact on the ruble’s exchange rate dynamics through elevated demand for imports. Consequently, the pass-through of the ruble’s depreciation to prices is gaining momentum and inflation expectations are on the rise.
Hereinafter, with current price growth rates staying at the attained levels the risk of inflation’s deviation upwards from the target in 2024 is substantial. The Bank of Russia’s decision is aimed at shaping monetary conditions and overall domestic demand dynamics necessary to bring inflation back to 4% in 2024 and stabilise it close to 4% further on.
Moving forward, in its key rate decision-making the Bank of Russia will take into account actual and expected inflation dynamics relative to the target and economic transformation processes, as well as the risks posed by domestic and external conditions and the reaction of financial markets. According to the Bank of Russia’s forecast, given the monetary policy stance, annual inflation will return to 4% in 2024.
Updated
Russia’s central bank to hold extraordinary meeting after rouble falls to 16-month low
Russia’s central bank has announced it will hold an extraordinary meeting on Tuesday to discuss the level of its key interest rate after the rouble fell to its weakest point in almost 17 months.
The currency has been steadily losing value since the beginning of the year and slid past the psychologically important level of 100 to the dollar on Monday morning.
It has weakened by 26% this year as a result of a collapse in export revenues and growing military spending, making it the third worst-performing global currency in 2023. The decline has led to calls from senior Kremlin officials for higher borrowing costs.
On Monday morning, the central bank said it saw no threat to Russia’s financial stability from the rouble’s fall, blaming the currency’s slide in value on a drop in export volumes and growing internal demand for imports.
However, in the afternoon the Bank of Russia made the surprise announcement that its board of directors would meet on Tuesday to discuss the interest rate, with a decision to be published at 10.30am Moscow time.
The rouble has had a period of turbulence since Russia invaded Ukraine in February 2022, dropping to a record low of 150 to the dollar two weeks after the start of the war before sharply recovering after the Russian central bank imposed strict capital controls that limited the flow of money out of the country.
By last summer the rouble had rebounded to a seven-year high as a rise in oil and gas prices, partly a result of the invasion, helped Russia raise export revenue while consumer imports fell.
Russian oil revenues have been drastically reduced since western price caps and embargos were imposed, while imports have recovered. The government has spent billions on the defence industry to continue the war in Ukraine, with many critical goods still coming from abroad.
The fall in the rouble accelerated after the aborted uprising in June by Yevgeny Prigozhin and his Wagner group of mercenary fighters caused Russians to move money into foreign accounts.
Read the full story here:
Here are some of the latest images to come out of Lviv, which was attacked overnight.
Vladimir Putin on Tuesday urged Moscow and Pyongyang to deepen ties, in a congratulatory message to the North Korean leader Kim Jong Un marking the country’s National Liberation Day, AFP reports.
Russia and North Korea – both increasingly isolated from the West and weighted with sanctions – have drawn closer since the Kremlin deployed troops to Ukraine and commenced large-scale hostilities last year.
Putin said in a statement distributed by the Kremlin:
I am sure that we will continue to build up bilateral cooperation in all areas for the benefit of our peoples, in the interests of strengthening stability and security on the Korean Peninsula and in the Northeast Asian region as a whole.
Putin said that it was during Korea’s liberation from Japan and “harsh wartime” that groundwork was laid for close cooperation between Moscow and Pyongyang.
The Russian leader’s statement came after his Defence Minister Sergei Shoigu last month hailed his country’s partnership with North Korea during a meeting with his counterpart Kang Sun Nam in Pyongyang.
US secretary of state Antony Blinken responded to the visit saying that the United States believed Shoigu was in North Korea to secure supplies of weapons to aid Russian forces fighting in Ukraine.
It is believed that tens of thousands of Ukrainian men have left the country illegally since the full-scale war with Russia started last February, many by paying bribes. On Friday, the Ukrainian president, Volodymyr Zelenskiy, fired every regional military recruitment head in the country, citing endemic corruption in the apparatus. My colleagues Shaun Walker in Odesa and Jamie Wilson spoke to some of the men who have already avoided or hope to avoid conscription.
While the corruption scandal has made headlines, it hints at an even more troubling story for Ukraine as the country approaches the 18-month mark since Vladimir Putin’s full-scale invasion.
In the first weeks after the invasion, hundreds of thousands of ordinary Ukrainians volunteered to serve at the front in an explosion of patriotism that helped keep the country independent and fight off the initial attack.
More than a year later, however, many of those initial recruits are now dead, wounded or simply exhausted, and the army needs new recruits to fill the ranks. By now, most of those who want to fight have already signed up, leaving the military to recruit among a much more reluctant pool of men.
Fathers of more than three children, people with disabilities and those working in strategically important jobs are exempt from the draft, but everyone else is expected to join up if called. Crews of mobilisation officers roam the streets and sometimes go door to door to hand out notices. Viral videos show officers bundling men into vans to deposit them at enlistment offices.
Some Ukrainian men say they would not relish receiving mobilisation papers, but would accept it if called, as a part of life in a country at war. But others are desperate to avoid receiving draft papers, and not everyone can afford a $5,000 (£3,945) bribe.
In Odesa, like in most Ukrainian cities, a Telegram chat group serves as a forum for people to share anonymised data about where recruitment officers, known informally as “olives” due to the colour of their uniforms, can be found on any given day. The group has more than 30,000 members.
Every few minutes, a new tipoff drops: “Pishonivska Street 37. The olives have arrived”. “There’s a bus of olives outside the market; six olives walking around inside handing out papers.”
Other people simply stay at home. A factory owner in eastern Ukraine said the threat of being grabbed by conscription officers on the morning commute meant some workers were too scared to go to work.
Read the full story here:
Ukraine’s air force said that its forces had destroyed 16 of at least 28 Russia-launched air and sea-based missiles. It was not immediately clear how many missiles were launched at Lviv and Volyn, Reuters reports.
Earlier, the Lviv region’s governor, Maxim Kozitsky, said that “groups of Russian missiles” were headed towards the region.
Until July, the Lviv region which is far from the frontlines and which borders Poland to its west, had been spared most Russia’s air attacks. But in July seven people were killed when a missile slammed into a residential building.
Ukrainian media reported that according to preliminary information, Tuesday’s attack was the largest air assault on the Lviv region since the start of Russia’s invasion in Ukraine in February 2022.
Three killed in strikes on Lutsk amid wave of attacks in western regions
More detail now, via Reuters: Russia launched a large-scale air attack on Ukraine’s western region of Lviv and the north-western region of Volyn, killing at least three people and wounding scores of others, officials said.
Three people were killed and several hospitalised in Lutsk after a business enterprise was hit, Yuriy Pohulyaiko, governor the Volyn region of which Lutsk is the administrative centre, said on the Telegram messaging app.
The Volyn region borders Nato-member Poland to its west.
There were no casualties in Russia’s air attack on the western region of Lviv, according to preliminary information, but more than 100 residential houses were damaged, 500 windows broken and a kindergarten playground was destroyed.
Updated
Three killed in Volyn attack
The Kyiv Independent reports, citing Volyn oblast Governor Yurii Pohuliaiko, that three people were killed in Russia’s attack on western Ukrainian city of Lutsk overnight.
Large-scale strike on Lviv and Volyn overnight
Officials have said that a number of building were damaged and several people wounded in a large-scale air-attack on Ukraine’s western region of Lviv and the north-western region of Volyn.
“Many missiles were shot down, but there were also hits in Lviv,” city mayor Andriy Sadovyi said, adding that orders were given to evacuate at least one burning apartment building.
The scale of the attack and the full extent of the damage in Lviv was not immediately clear. Earlier, the Lviv region’s governor, Maxim Kozitsky, said that “groups of Russian missiles” were headed towards the region.
Until July, the Lviv region – which is far from the frontlines and which borders Nato-member Poland – had been spared most Russia’s air attacks. But in July seven people were killed when a missile slammed into a residential building.
Ukrainian media reported that according to preliminary information, Tuesday’s attack was the largest air assault on the Lviv region since the start of Russia’s invasion in Ukraine in February 2022.
In Volyn, a region that also borders Poland, a business enterprise was hit, injuring at least two people in the city of Lutsk, in the Volyn region, local authorities said.
Opening summary
Hello and welcome to our live coverage of the war in Ukraine. This is Helen Sullivan with the latest.
Russia launched a large-scale air attack on Ukraine’s western region of Lviv and the north-western region of Volyn overnight, damaging a number of buildings and leaving several injured.
Ukrainian media reported that according to preliminary information, Tuesday’s attack was the largest air assault on the Lviv region since the start of Russia’s invasion in Ukraine in February 2022.
More on that shortly. In the meantime, here are today’s other headlines:
Russia launched three waves of drones and missiles against the southern Ukraine port city of Odesa, officials said on Monday, though the Ukrainian air force said it intercepted all the airborne weapons. Falling debris from the interceptions of 15 Shahed drones and eight Kalibr missiles damaged a residential building, a supermarket and a dormitory of an educational facility in the city, Odesa governor Oleh Kiper said. Two employees of the supermarket were hospitalised, Kiper said. Video showed a huge blaze at the store during the night and, the next day, the large building’s charred and mangled wreckage.
Ukraine’s president, Volodymyr Zelenskiy, visited troops at brigade headquarters in the eastern Ukrainian frontline region of Donetsk on Monday, his website said. Zelenskiy reportedly visited brigades involved in attacks on the section of the frontline facing Soledar, the Russian-held town north of Bakhmut.
US ambassador to Russia Lynne Tracy met jailed Wall Street Journal reporter Evan Gershkovich on Monday, a state department spokesperson said, her third such visit since his detention in March on espionage charges that he denies. “Ambassador Tracy said that Evan continues to appear in good health and remains strong, despite his circumstances,” the spokesperson said, adding that it was Washington’s expectation that Moscow would provide continued consular access. Russia has alleged Gershkovich was caught trying to obtain military secrets while on a trip to the Russian city of Ekaterinburg, but has provided no details supporting that assertion. The Wall Street Journal also denies the allegations.
The United States said on Monday it will send Ukraine new security assistance valued at $200m, including air defence munitions, artillery rounds, and additional mine-clearing equipment. The assistance will also include anti-armour capabilities, US secretary of state Antony Blinken said in a statement. Two US officials told Reuters last Monday that Washington would begin to hand out $6.2bn of funds discovered after a Pentagon accounting error that overvalued billions of dollars of Ukraine aid.
The rouble has fallen to its weakest point in almost 17 months as a collapse in export revenues and growing military spending increase pressure on Russia’s economy. The currency, which has been steadily losing value in a long fall since the beginning of the year, slid past the psychologically important level of 100 to the dollar on Monday morning.
Christian Lindner, German’s finance minister, said his country stood “shoulder to shoulder” with Ukraine, as he arrived in Kyiv for his first visit since the start of the war. Lindner said he would hold “very concrete” talks with Ukrainian officials on how the German finance ministry can support Ukraine now and in the future.
The Ukrainian military said on Monday it had pushed Russian forces out of pockets of territory along frontlines in the east and south of the country, building on a gruelling counteroffensive launched two months ago.
Mykhailo Fedorov, the minister of digital transformation of Ukraine, said that Russia lost 116 units of equipment, including 33 armoured vehicles, 29 trucks and 20 tanks last week. In a tweet, he said: “This hardware will no longer kill Ukrainians. My gratitude to the warriors who work for our victory 24/7.”
The Dutch defence ministry said it scrambled two F-16s early on Monday when two Russian bombers were tracked flying toward Dutch airspace as Russia launched an overnight attacks against Odesa, Ukraine.
Britain said its Typhoon fighter jets intercepted two Russian maritime patrol bomber aircraft in international airspace north of Scotland on Monday, within Nato’s northern air policing area.
Twenty-two Russian diplomats flew out of the Moldovan capital of Chisinau on Monday, leaving behind a skeleton staff as relations between the two countries deteriorated after Moldova last month ordered Moscow to withdraw most of its delegation. In a statement, Russia’s foreign ministry said: “This unfriendly step of official Chisinau will undoubtedly have consequences for Russian-Moldovan relations.”
