WHO WON THE RUSSIA-UKRAINE CONFLICT? CHINA
This from Bloomberg:
Defying his former enemies in the U.S. and Europe may force Vladimir Putin to aid the ascent of his biggest rival in the east.
Isolated over Ukraine, Russia is relying on China for the investment it needs to avert a recession, three people involved in policy planning said, asking not to be identified discussing internal matters. This means caving in to pressure to grant China privileged access to the two things it wants most: raw materials and advanced weapons, two of the people said.
Russia’s growing dependence on China, with which it spent decades battling for control over global communism, may end up strengthening its neighbor’s position in the Pacific while hastening its own economic decline. With the ruble near a record low and foreign investment disappearing, luring Chinese cash may deepen Russia’s reliance on natural resources and derail government efforts to diversify the economy.
Read the whole piece here.
ANOTHER BAD SIGN FOR THE RUSSIAN ECONOMY
Via The Moscow Times:
Russia’s faltering economy appears to be edging shoppers into budget food stores, with two of the country’s biggest food retailers reporting a double-digit rise in sales over the third quarter last week.
Russia’s biggest food retailer Magnit, founded and co-owned by billionaire Sergei Galitsky, reported on Thursday a 21 percent growth of revenue in the first 9 months of 2014.
Second-biggest retailer X5 Retail Group said Friday that its revenue in the third quarter grew 23 percent year-on-year. The number of customers at its Pyatyorochka discount store rose by over 17 percent, the retailer added, while customers on average were spending almost 8 percent more on each visit.
Both companies, it seems, have inflation to thank for their higher revenues.
Read it all here.
SIGNS OF THE TIMES IN DONETSK:
GUBAREV'S LAST FACEBBOK POST BEFORE ASSASSINATION ATTEMPT
"Tomorrow I will make a very important announcement! Repost!
THE LITTLE GREEN MEN GOING LEGIT?
This tweet by Leonig Ragozin caught my attention this morning:
The story broke in the pro-Kremlin daily "Izvestia," which is often used to float policy ideas.
The Defense Ministry is working on a project to create multiple reserve armies, which should be formed in the near future, Franz Klintsevich deputy chairman of the State Duma's Defense Committee told "Izvestia."
"These armies will be staffed by people who will continue to work in their regular jobs. They will periodically participate in military training and receive a monthly stipend for being in the Army Reserve," Klintsevich said. "They will be ready at any moment to come to a collection point, get a gun, and be part of a formed unit."
The Defense Ministry hasn't officially commented.
MID-MORNING NEWS ROUNDUP
From RFE/RL's News Desk:
RUSSIA SAYS DETAINED UKRAINIAN PILOT TO 'UNDERGO PSYCHOLOGICAL EXAMINATION'
Russian investigators say Ukrainian Air Force pilot Nadiya Savchenko, who is in Russian custody, has been placed in a medical facility in Moscow to undergo a psychiatric examination.
The Investigative Committee's spokesman Vladimir Markin said on October 13 a psychiatric examination is a standard procedure in cases when a person is charged with serious crimes and could face the harshest penalties possible under Russian law.
Savchenko is charged with complicity in the killing of two Russian journalists who died while covering the conflict between pro-Russian separatists and government forces in eastern Ukraine.
Savchenko denies the charges.
Savchenko's lawyer, Mark Feigin, has said his client had lodged a protest against the psychiatric examination.
Savchenko was captured in June. Kyiv has demanded her release.
PRO-MOSCOW DONETSK OFFICIAL HOSPITALIZED AFTER ASSASSINATION ATTEMPT
The former so-called "people's governor" of the separatist held Donetsk region in eastern Ukraine is in the hospital in serious condition after a reported attempt on his life.
Reports from Russian news agencies said unknown assailants fired on a vehicle Pavel Gubarev was traveling in along the Rostov-On-Don-Donetsk highway early October 13.
Gubarev 's vehicle went off the road and struck a tree.
Gubarev was found unconscious and taken to a hospital in Rostov-On-Don where he is listed as being in critical condition.
Gubarev's wife Yekaterina said her husband was not hit by any bullets and his injuries were from the collision.
Prior to the assassination attempt, Gubarev has posted a message on his Facebook page saying he intended to make a major announcement soon.
(Based on reporting by TASS, Interfax, and RBK)
RUSSIA SAYS IT ORDERED TROOPS BACK FROM UKRAINIAN BORDER
A Kremlin spokesman says Russian President Vladimir Putin has ordered Russian troops to withdraw from the border with Ukraine and move back to permanent bases in the Rostov region.
Russian news reports quote Kremlin spokesman Dmitry Peskov as saying that 17,600 Russian soldiers would return to their bases after what the Kremlin described as "summer training exercises" near the Ukrainian border.
The announcement comes days ahead of a summit of Asian and European leaders in Milan, Italy that Putin is expected to attend on October 16-17.
Putin also is expected to meet Ukrainian President Petro Poroshenko in Milan on October 17.
NATO has accused Russia of sending several hundreds of armored vehicles and thousands of combat troops into eastern Ukraine to support pro-Russian separatist fighters.
Russia denies it has any forces in eastern Ukraine.
(Based on reporting by AP, Reuters, AFP, and RIA Novosti)
AUSTRALIAN PM PLANS TO PERSONALLY CONFRONT PUTIN OVER MH17
Via Reuters:
(Reuters) - Australian Prime Minister Tony Abbott said on Monday that he would use an upcoming G20 leaders summit to confront Russian President Vladimir Putin over the downing of Malaysia Airlines Flight MH17 and the "murder" of Australian citizens.
Allegations that the jetliner was downed by pro-Russian separatists armed with surface-to-air missiles provided by the Kremlin sparked calls in Australia to bar Putin from the meeting of world leaders in Brisbane next month.
Abbott, who has been amongst the most strident critics of Russia's handling of the affair, said on Sunday that it was not within Australia's power to ban a G20 member from attending, but promised to give Putin a stern talking to.
"Look, I’m going to shirtfront Mr Putin – you bet I am," Abbott told reporters, using an Australian Rules Football term meaning to hit someone front on and knock them to the ground.
"I’m going to be saying to Mr Putin, Australians were murdered and they were murdered by Russian-backed rebels using Russian supplied equipment," he said.
And Abbot's comments haven't escaped notice in Ukraine. Here's a tweet from Channel 5's Myroslava Petsa:
A COUPLE TWEETS FROM BEN JUDAH ON OIL PRICE DROP
CHINA, CHINA, EVERYWHERE
There's lots of Russia-China action in the news today:
To keep it all in context, I'd recommend this piece from Bloomberg:
Defying his former enemies in the U.S. and Europe may force Vladimir Putin to aid the ascent of his biggest rival in the east.
Isolated over Ukraine, Russia is relying onChina for the investment it needs to avert a recession, three people involved in policy planning said, asking not to be identified discussing internal matters. This means caving in to pressure to grant China privileged access to the two things it wants most: raw materials and advanced weapons, two of the people said.
Russia’s growing dependence on China, with which it spent decades battling for control over global communism, may end up strengthening its neighbor’s position in the Pacific while hastening its own economic decline.
HOW LOW CAN IT GO?
Kuwait's says the price of oil can fall another $15 per barrel and OPEC won't intervene. Price right now, according to Bloomberg, is about $84 for Light Crude and $88 for Brent Crude.