Rapid Cooling of Russia's Economy Surpasses Anticipated Pace
In the ongoing geopolitical landscape, several significant events have transpired recently.
US Special Envoy Steve Witkoff is set to attend the conference of supporting countries for Ukraine in Paris, as the US continues its efforts to broker a peace agreement between Russia and Ukraine, with President Donald Trump expressing his desire to maintain these efforts.
Meanwhile, Ukraine and the US have established a joint investment fund, following a resource agreement between the two nations. The inaugural board meeting of this fund took place, marking a step forward in strengthening economic ties.
However, the economic outlook for both nations is concerning. Data from banks shows a significant slowdown in growth, with July and August growth reportedly close to zero. In Russia, the economy is cooling faster than expected, according to Economic Minister Maxim Reshetnikov. Despite anticipated interest rate cuts, Sberbank's head, German Gref, believes they will not be enough to revive the Russian economy, which he describes as stagnant.
Gref also expresses concerns about a potential slide into a recession, a sentiment shared by Ukrainian President Volodymyr Zelensky, who warns the West against the notion that territorial concessions in the east of the country could lead to a long-term peace with Russia.
The Ukrainian President's warning comes amid ongoing clashes along the front line, with Russian and Ukrainian troops reportedly clashing 180 times yesterday, according to a report by the Ukrainian general staff.
In the face of these challenges, the European Union is increasing its support for Ukraine. Kaja Kallas, EU foreign policy chief, emphasises the importance of a strong Ukrainian military as the most significant security guarantee for Europe. The German government also plans to strengthen Ukraine's air defense and provide equipment for four mechanized infantry brigades.
The EU Council President, Antonio Costa, calls for increased pressure on Russia to force President Putin to the negotiating table. Meanwhile, EU Commission President Ursula von der Leyen's plane's GPS system was reportedly disrupted, an incident Russia denies as "fake and paranoia".
Russia has reportedly suffered heavy losses in the conflict, with reports indicating that they have lost 1,085,410 soldiers since the start of the war, 11,157 tanks, 23,241 armored vehicles, and 1,215 air defense systems. However, Ukraine denies Russian reports of an advance in the city of Kupyansk, labelling them as propaganda.
Russian President Vladimir Putin has dismissed US President Donald Trump's claims that he is conspiring with China and North Korea against the US, describing them as "funny". The Russian Ministry of Defense, on the other hand, reports that Russian forces attacked fuel facilities in Ukraine overnight on Wednesday.
As the situation remains complex and dynamic, around 30 heads of state and government are expected to meet with Ukrainian President Volodymyr Zelensky to discuss future security guarantees for Kyiv. The conference in Paris promises to be a crucial event in the ongoing saga of the Ukraine-Russia conflict.
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