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The latest developments in Russia’s war on Ukraine. All times EDT.
4:34 a.m.: The Russian economy shrank 0.4% in the first six months of 2022 compared with a year ago, but capital investment, one of the main economic growth drivers, rose 7.8%, data from the federal statistics service Rosstat showed on Wednesday, according to Reuters.
The export-dependent economy is plunging into recession, hit by sweeping Western sanctions for what Moscow calls “a special military operation” in Ukraine. But the depth of contraction has so far been not as big as initially thought.
In 2022, the economy will shrink by less than 3%, a top government official said this week in contrast to the earlier assumption from the economy ministry that had warned of a drop of more than 12%.
Rosstat data contradicts expectations of many economists who had predicted the Russian economy would collapse this year under the weight of unprecedented Western sanctions. But higher prices for its oil exports cushioning the impact.
3:31 a.m.: Germany’s chief of defense has warned that the West must not underestimate Moscow’s military strength, saying Russia has the scope to open up a second front should it choose to do so.
“The bulk of the Russian land forces may be tied down in Ukraine at the moment but, even so, we should not underestimate the Russian land forces’ potential to open a second theatre of war,” General Eberhard Zorn, the highest-ranking soldier of the Bundeswehr, told Reuters in an interview.
Beyond the army, Russia also has a navy and air force at its disposal, he added.
“Most of the Russian navy has not yet been deployed in the war on Ukraine, and the Russian air force still has significant potential as well, which poses a threat to NATO too,” Zorn said.
2:37 a.m.: The Institute for the Study of War, a U.S. think tank, issued its latest assessment of the Ukraine conflict, saying that Russian occupation authorities are imposing a curriculum on Ukrainian students aimed at eliminating the notion of Ukrainian national identity, explicitly in line with Russian President Vladimir Putin’s speeches and writings falsely claiming that Ukraine is part of Russia, and that the Ukrainian identity was an invention of the Soviet period.
Russian forces, the assessment said, conducted a limited ground attack north of Kharkiv City and ground attacks south of Bakhmut and along the western outskirts of Donetsk City.
Ukrainian partisans, the assessment said, conducted an improvised explosive device (IED) attack against the headquarters of the “Together with Russia” political organization in Berdyansk, Zaporizhia Oblast, where occupation authorities were reportedly preparing for sham referenda.
1:25 a.m.:
12:02 a.m.: Belgium announced measures to tackle soaring energy prices, including cuts to public buildings’ power consumption and a proposal to tax the excess profits of energy companies, Reuters reported.
Belgian Prime Minister Alexander De Croo said on Wednesday the heating in public buildings will be limited to 19 degrees Celsius and air conditioning use reduced, while lighting of offices and monuments will be switched off at 7 p.m. Talks will continue to decide on turning off lights on highways and in cities at certain hours.
The federal government also decided to extend a reduced 6% VAT rate for gas and electricity and a special energy rate for the poor until the end of the first quarter of 2023.
It also said it would present by the end of September a proposal to tax the excess profits of energy companies.
Some information in this report came from Reuters.
