Background

July 11, 2024 Ukraine and the World - Against russia’s Aggression. Sanctions in Action

7/11/2024
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“Today, we announce that we are jointly providing Ukraine with additional strategic air defense systems, including additional Patriot batteries provided by the United States, Germany, and Romania; Patriot components provided by the Netherlands and other partners to support the additional Patriot battery; and an additional SAMP-T system provided by Italy”, – reads a joint statement by the leaders of the United States, the Netherlands, Germany, Italy, Romania, and Ukraine on more than $1 billion in support for our country's air defense.

The United States and partners plan to provide Ukraine with dozens of tactical air defense systems, including NASAMS, HAWK, IRIS T-SLM, IRIS T-SLS, and Gepard.

“putin wants nothing less than Ukraine’s total subjugation, to end Ukraine’s democracy, to destroy Ukraine’s culture, and to wipe Ukraine off the map. And we know putin won’t stop at Ukraine. But make no mistake, Ukraine can and will stop putin”, said US President Joe Biden.

“The summit will further strengthen Ukraine's ties with NATO on the path to membership”, said US Secretary of State Anthony Blinken.

NATO Secretary General Jens Stoltenberg has said that the Alliance is stepping up its cooperation with Ukraine, including taking a leading role in providing security, training and increasing Ukraine's ability to produce its own weapons. He is also convinced that the United States will remain a committed ally of NATO regardless of the outcome of the presidential election.

US National Security Advisor Jake Sullivan has said that NATO will announce a new military command in Germany and appoint a senior representative in Kyiv to deepen Ukraine's relationship with the Alliance.

Prime Minister of the UK Keir Starmer believes that the NATO summit in Washington is a chance for its members to send a message to russia after the latest massive missile attack on Ukraine. Starmer has also pointed out that Ukraine has the right to use British Storm Shadow missiles to hit military targets in russia.

NATO countries will allocate more than US $7 million to support women in the Armed Forces.

“Norway has decided to donate 6 F-16 fighter jets to Ukraine. We plan to start deliveries in 2024”, said Prime Minister of Norway Jonas Gahr Støre.

Minister of Defence of the Netherlands Ruben Brekelmans has said that his country will provide 18 F-16 fighter jets for a training center in Romania by the end of 2025 to train Ukrainian pilots.

Minister of Foreign Affairs of Lithuania Gabrielius Landsbergis expressed hope that russia's latest massive missile attack on Ukraine “will encourage major partners, in particular, to move a little closer to strengthening assistance to Ukraine”.

Minister of Foreign Affairs of the Czech Republic Jan Lipavský told russians through the russian ambassador that they are “the garbage of humanity” because they bomb children's hospitals.

More than 30 countries are ready to accept children from “Okhmatdyt” for treatment.

Remi Duflot, Deputy Head of the EU Delegation to Ukraine, has said that the EU will help with the restoration of the “Okhmatdyt” children's hospital.

Lithuania has transferred EUR 1 million to restore the “Okhmatdyt” children's hospital in Kyiv.

Italy's Ambassador to Ukraine Carlo Formosa has announced his country's readiness to contribute to the restoration of the “Okhmatdyt” Children's Hospital.

“We have our own proposal, which is being implemented, and which has been agreed by the EU member states, and we are now working to make the first tranche of the proceeds from the immobilized (russian) assets available to Ukraine in the next few weeks”, said Christian Wiegand, a representative of the European Commission.

Prime Minister of New Zealand Christopher Luxon has announced $9.8 million in aid to Ukraine $3.68 million for Armed Forces and $6.12 million – for humanitarian aid.

“Portugal’s aid to Ukraine will reach more than EUR 220 million this year, and in 2025 it will be provided in the same amount”, said Prime Minister of Portugal Luís Montenegro.

Italy is preparing to pledge $1.7 billion in military aid to Ukraine next year.

Mitch McConnell, the Senate “Republicans” Leader, believes that slow aid to Ukraine “has not deterred russia from escalating”.

Free roaming for Ukrainians in the EU has been extended for a year.

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The United States has tightened security at military bases in Europe due to the threat of sabotage that could be organized with the rf’s support.

NATO Secretary General Jens Stoltenberg has announced the signing of a new defense industrial order by the Alliance members.

NATO Secretary General Jens Stoltenberg has confirmed that at the summit in Washington, NATO member states together with partners in the Pacific region, will try to develop a strategy for China.

According to NATO, Ukraine's strikes with various types of weapons have had a significant impact on the russian economy, with oil refining having dropped by 17%.

The Norwegian government has signed a contract with Nammo for the purchase of artillery shells worth more than one billion Norwegian kroner (EUR 87.1 million).

The government of Norway considers a possibility to ban foreigners from buying real estate without the permission of the country's Ministry of Defense, similarly to what Finland did.

Austria's Ministry of Climate Protection has set up a commission to investigate whether there is a way to get out of the contract with the rf's “gazprom” and analyze the political circumstances of extending the contract in 2018.

For the first time, a russian was detained in the Japanese city of Osaka, who, in violation of anti-russian sanctions, was supplying jet skis that could be used for military purposes.

After the USA imposed sanctions against the moscow stock exchange, the largest russian banks reduced the volume of foreign exchange transactions more than five times in June: from 671 billion rubles in May to 126.8 billion rubles in June.

As of today, 9 out of 13 systemically important banks in russia are under international sanctions and cannot conduct transactions for corporate clients with the US dollar and the euro either on or off the exchange.

In January-May 2024, exports of goods from the rf decreased by 0.6% to $172.1 billion, while imports to russia decreased by 8.5% to $107.8 billion, according to russian customs. Supplies of russian metals and metal products decreased by 0.5% to $23.4 billion, of food and agricultural raw materials – by 6.4% to $17.7 billion. Imports of chemical products to the rf decreased by 16.5% to $20.7 billion, and imports of machinery, equipment, and vehicles decreased by 4.9% to $54.6 billion.

Compared to January-May of last year, European countries have reduced purchases of russian goods by 37.4%, to $26 billion, while supplies of goods to russia decreased by 16.6%, to $28.5 billion. According to Eurostat, russia's share in European exports is currently 1.4%, and in imports – 1.6% (in the first quarter of 2022, these figures were almost 3% and 9%, respectively).

According to the rf’s customs service, imports from Asian countries in the first five months of the year decreased by 4.1% to $71.8 billion.

The federal antimonopoly service has initiated a significant restriction on preferential electricity consumption for the russian population. If the government adopts this decision, tariffs for those who exceed the limit of preferential consumption will increase by an average of 40%. Under current practice, russian industry pays for low tariffs for households: in 2024, it will have to transfer RUB 300 billion.

In the first half of the year, the volume of investments in the arrangement of commercial premises such as street retail in the rf decreased by 34% compared to last year – to 506 billion rubles.

russian companies that receive government subsidies for the development of electronics and radio electronics are not meeting their targets, and production volumes “cannot lead to technological independence”, the accounts chamber of the rf said after a relevant inspection. The ministry of industry and trade of the rf has confirmed that due to international sanctions against the rf, the deadlines for the implementation of projects were “systematically postponed” and their implementation is affected by the lack of necessary specialists.

The state duma has finally passed a law on increasing the personal income tax from 13% to 22% depending on income from January 1, 2025 (does not apply to the occupiers fighting against Ukraine). The corporate income tax has been increased from 20% to 25%.

The federation council has also approved additional changes in the russian tax system: the state fee for divorce, if the spouses do not have children together, has been increased from 650 rubles to 5 thousand rubles, the tax for obtaining a school certificate has increased from 1.3 thousand rubles to 2 thousand rubles, for amending a document – from 350 rubles to 500 rubles, for issuing a duplicate – from 1.3 thousand rubles to 2 thousand rubles, for changing a name – from 1.6 thousand rubles to 5 thousand rubles. The state fee for registration of the rules for the formation of long-term savings will be set at RUB 3.5 thousand and for making changes to them at RUB 1.6 thousand. In addition, the rf’s authorities are increasing the fee for consideration of a petition under the monopoly legislation from RUB 35 thousand to RUB 400 thousand.

The fees and taxes established by russian authorities earlier, have already led to a twofold increase in prices for imported cars. In some cases, the difference with the actual cost of the car may be even higher, said head of the russian automobile dealers association podshchekoldin, citing the example of the Jetta VA3 sedan, which is sold in China in terms of rubles for 1 million rubles, but in russian showrooms costs 2.3 million rubles.

The state customs committee of the rb has reported that from 03:00 on July 10, the Polish side at the “kozlovichi” border crossing point stopped accepting trucks coming from the rb.

Analysts of the “Cost of Government” project on the economy of the rb: The external trade balance is deteriorating at an alarming rate. The staff shortage is becoming more acute, and repressions against business and society never stop. Authorities are trying to cut spending wherever possible. There are signs of the state's desperate need for money. Programs of preferential lending for housing are being phased out, and measures to support healthcare and education are being cut. Pensions and salaries put the rb behind most of the EEU countries. Authorities are increasing pressure on business and society, increasing taxes, fines, and fees for disloyalty in 2020.

In June, the number of the unemployed registered at employment centers in minsk increased. At the beginning of July, there were 39,900 unemployed people in the capital, according to the committee on labor, employment and social protection of the population under the minsk city executive committee. A month earlier, there were 39 thousand offers from employers.

Residents of district centers in gomel region complain that even patients with chronic diseases cannot get an appointment with specialist doctors and dental paramedics in public clinics.