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Russia’s economic decline deepens as Putin warns he could pull out of grain deal again

2022/11/04/08:32
in Ukraine
Reading Time: 3 mins read
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Russia’s economic decline deepens as Putin warns he could pull out of grain deal again

Russia issued a straightforward statement about nuclear war that could indicate the Kremlin is trying to cool the escalatory rhetoric it used throughout October, NBC News reported on Thursday.

“Russia is strictly and consistently guided by the tenet that a nuclear war cannot be won and must never be fought,” said the statement on the Russian Foreign Ministry website.

Meanwhile, as the war between Russia and Ukraine drags into the fall and winter, the economic repercussions on both countries, and the rest of the world, becomes clearer.

Former bridge, Ukraine

Data released on Wednesday by Russia’s Ministry of Economic Development showed the country’s downturn continued in September, with a deepening contraction evident.

Russia has insisted its economy can weather the storm of international sanctions, with Foreign Minister Sergei Lavrov insisting earlier this week that “no one could stop” Russia’s economy.

Russia recently made a surprise return to the Black Sea grain initiative — a deal brokered with Ukraine by Turkey and the U.N. to enable the export of vital agricultural products like corn and wheat, of which Russia and Ukraine are major producers.

President Vladimir Putin said that despite Russia’s return to the deal, which it had withdrawn from last weekend after an apparent attack by Ukraine on Russia’s Black Sea fleet, Moscow “reserves the right to withdraw” from it again if Ukrainian guarantees are not met.

Grain shipments to African countries suffering from acute food shortages, such as Somalia and Sudan, will be prioritized now that the deal has been revived, Turkey’s president said.

Vladimir Putin

U.S. Defense Secretary Lloyd Austin said he is confident Ukrainian forces are capable of retaking Kherson from Russia.

“On the issue of whether or not the Ukrainians can take the remaining territory on the west side of the Dnieper River in Kherson, I certainly believe that they have the capability to do that,” Austin told reporters at the Pentagon.

“Most importantly, the Ukrainians believe they have the capability to do that. We’ve seen them engage in a very methodical but effective effort to take back their sovereign territory.”

Natalie Tham

Is Russian President Vladimir Putin stepping back from the nuclear ledge?

After weeks of apocalyptic atomic innuendo, Russia issued a bland statement Wednesday reaffirming its long-standing policies on the use of nuclear weapons — a possible sign that the Kremlin is trying to cool the escalatory rhetoric it used throughout October.

“Russia is strictly and consistently guided by the tenet that a nuclear war cannot be won and must never be fought,” said the statement on the Russian Foreign Ministry website.

The statement added that Russian nuclear doctrine was unambiguous and did not allow for “expansive interpretation,” indicating Moscow may be trying to walk back a number of statements calling the doctrine into question.

The statement also included an appeal for talks about the kinds of “security guarantees” Russia had demanded of NATO before it invaded Ukraine in February. 

Source: CNBC

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