Russian Economy Minister Maxim Reshetnikov confirmed the government prepared an internal report that the country may face a deeper recession than publicly acknowledged, Tass said, after Bloomberg published the estimates.
(Bloomberg) — Russian Economy Minister Maxim Reshetnikov confirmed the government prepared an internal report that the country may face a deeper recession than publicly acknowledged, Tass said, after Bloomberg published the estimates.
Ukraine’s Prime Minister Denys Shmyhal called on the country’s allies to help Kyiv finish the war as soon as possible because drawing out the conflict favors the Kremlin. He said the military had achieved some successes in the south, where it has launched a counteroffensive.
President Vladimir Putin was in Russia’s Far East to attend military exercises that include Chinese forces, as well as to visit the Eastern Economic Forum in Vladivostok.
(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)
Key Developments
- Ukraine’s Premier Wants War to End Soon as Time Favors Russia
- Russia Privately Warns of Deep and Prolonged Economic Damage
- EU Ministers May Set Price Cap on Russian Gas, Spain Says
- Gazprom Starts Producing LNG at Plant Near Nord Stream Pipeline
- European Gas Drops as Governments Move to Fix Energy Crisis
On the Ground
The Ukrainian counteroffensive is making progress and has degraded logistics and administrative capabilities in southern Russian-occupied areas, the Institute for the Study of War said. Russia conducted airstrikes throughout the south and east, according to Ukraine’s General Staff. Russian rockets struck an oil depot in the Dnipropetrovsk region, destroying large fuel stockpiles, the head of the Kryvyi Rih military administration said. The Zaporizhzhia nuclear power plant remained cut off from the Ukrainian grid after losing its last direct connection due to a fire on Monday following shelling.
(All times CET)
EU Ministers Consider Price Cap on Russian Gas (11:55 a.m.)
European Union energy ministers this week may decide to set a limit on the price of Russian natural gas, Spanish Environmental Transition Minister Teresa Ribera said.
It’s one option the bloc’s officials are expected to consider when they meet Friday to discuss extraordinary measures to curb surging energy prices. Introducing a Europe-wide price cap “is possible, and I believe we’re going to have significant debate to set an orientation to the European Commission,” said Ribera, who is in charge of Spain’s energy policy.
Russia has already been cutting gas supplies to the EU. Last week after the Group of Seven leaders agreed on a price cap on Russian oil, Gazprom PJSC halted gas shipments via the key Nord Stream pipeline to Europe indefinitely, citing technical issues.
Ukraine’s Reserves Rise 14% in August (11:20 a.m.)
The Ukrainian central bank’s reserves rose 13.6% in August to $25.44 billion after the government received international financial assistance and froze debt payments, according to a statement on its website. It was the first increase since March.
Ukraine got $4.8 billion from its partners last month, including $3 billion from the US and $1 billion from the EU, the bank said. Its reserves can cover 4 months of imports, according to the statement.
Economy Minister Confirms Grim Recession Forecast, Tass Says (10:50 a.m.)
Reshetnikov confirmed the government prepared an internal report that Russia may face a longer and deeper recession than publicly acknowledged, the state-run Tass news service reported.
The forecasts, which were reported by Bloomberg Monday, are “analytical estimates that we used to calculate what would happen if we don’t resist, don’t do anything,” Reshetnikov said in Vladivostok, according to Tass.
Russian Embassy Posts Video Warning Winter is Coming (10:30 a.m.)
Russia’s embassy in South Korea posted a video of a song titled “And Winter Will be Big” showing a worker in the uniform of a Gazprom power unit and a gas gauge hitting zero before a series of European cites were blasted with a cold front.
The video, which was prefaced with a tweet quoting Kremlin spokesman Dmitry Peskov that sanctions were to blame for the Nord Stream shutdown, suggested renewable energy was only reliable during fair weather.
The clip ended with a shot of the top of Gazprom’s St. Petersburg headquarters, which is the tallest building in Europe, emerging from the clouds.
Six Crop Ships Set to Leave Ukrainian Ports Tuesday (9:45 a.m.)
Six vessels carrying food products are set to leave Ukrainian ports on Tuesday, the Joint Coordination Center said in an emailed statement.
As of Sept. 4, vessels have made 87 voyages with more than 2 million metric tons of grains and other foodstuffs from Ukrainian ports since shipments were resumed.
Ukraine Pushes for Humanitarian Corridor Near Nuclear Plant (9:15 a.m.)
Ukraine is pushing for a humanitarian corridor to evacuate civilians living near the Zaporizhzhia nuclear power plant, Deputy Prime Minister Iryna Vereshchuk told French television channel LCI, according to a government website.
Russia has refused to open a corridor, despite repeated requests from Kyiv, Vereshchuk said.
Kremlin Calls Biden’s Opposition to Terrorist Label Positive, Tass Says (9:10 a.m.)
Peskov praised US President Joe Biden’s comments at a press conference that Russia should not be labeled a state sponsor of terrorism, Tass reported.
Ukraine has lobbied for the designation, and a Senate resolution passed in July calls on the Biden administration to apply the label to Russia.
Russia Launches Missile from Kurils During Drills, Interfax Says (8:30 a.m.)
The Russian military launched a cruise missile from one of the Kuril Islands during the Vostok-2022 exercises in the country’s Far East, Interfax reported, citing the Defense Ministry.
More than 50,000 troops and 5,000 pieces of military equipment, including more than 140 aircraft and 60 warships, are due to take part in the week-long war games, including naval drills in the Sea of Japan.
Russia and Japan have been locked in a territorial dispute over a group of islands known as the southern Kurils in Russia and the Northern Territories in Japan for more than 75 years, since the Soviet Union seized the disputed islands in the final days of World War II.
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