For over two days, Russian forces have been targeting Odesa, focusing on energy infrastructure with bombs, missiles, and drones. The aim of these attacks is to harm the civilian population. The Ukrainian Defense Forces respond with widespread strikes on fuel depots and power stations in occupied Crimea and Russian territory, notably targeting the Yaroslavl oil refinery, which is crucial for the Russian army.
The Russian economy faces significant challenges: GDP barely grows, production sectors decline, and budget revenues fall due to Ukrainian attacks and lower oil prices. There are imbalances across sectors, and the Russian economy is increasingly war-oriented. The government addresses the issue by raising taxes, with VAT set to rise to 22% next year.
The EU has decided to freeze Russian assets indefinitely, amounting to up to 210 billion euros, potentially to be used for supporting Ukraine. However, the process is complex and causes dissatisfaction among the Russian side and some EU countries. Historically, there have been similar cases involving assets from Germany, Japan, Iraq, Iran, and Libya.
Ukraine continues fundraising to support defenders, specifically for drones and other technology essential to the country’s defense. In addition to international aid, there is an emphasis on the urgent need for domestic reforms and improved governance to achieve victory and stabilize the economy.
