Tag Archives: ASXPAC

Ukraine troops say Russian woes could preface pullback in south

FRONTLINE NORTH OF KHERSON, Ukraine, Oct 21 (Reuters) – To the Ukrainian soldiers entrenched north of the Russian-held city of Kherson, a recent drop-off in Russian shellfire and armour movements signals that their foes dug into a nearby tree line are suffering serious manpower, supply and hardware woes.

That may mean the Russians are preparing to abandon their defence of the provincial capital and retreat across the Dnipro River, the soldiers said when Reuters visited their positions on Friday.

“We understand that they are low on ammunition. We understand they are short of cannon fodder, and we understand their equipment is defective,” said Fugas, 38, the nom de guerre of the commander of the 600-man unit deployed in the southern province of Mykolaiv, bordering Kherson.

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The Russians “are constantly suffering losses in this sector, and we’re trying to do everything we can so they leave this place as fast as possible,” continued Fugas, a stocky man who in civilian life co-owned an agricultural business in the western Lviv region.

Ukrainian forces began moving in August to reclaim Kherson, a strategically important ship-building centre on the sprawling Dnipro River. In recent weeks, they have driven the Russians back 20-30 kms (13-20 miles) on parts of the battlefront.

Kherson province is one of four partially occupied regions that Russian President Vladimir Putin on Sept. 30 proclaimed part of Russia, the largest annexation of territory in Europe since World War Two.

Three weeks later, there are signs that the Ukrainian drive may be forcing Putin to concede ground in Kherson and pull his forces back to the Dnipro’s southern bank.

Russian-appointed occupation authorities this week began evacuating thousands of civilians from Kherson to the southern bank, denounced by Kyiv as forced deportations.

Sergei Surovikin, an air force general tapped this month to command Russia’s invasion forces, conceded this week that the Kherson situation was “very difficult” and Moscow was “not ruling out difficult decisions.”

The sector of the front visited by Reuters on Friday was largely quiet.

The occasional crump of an exploding artillery shell sounded across flat fields. Flocks of partridges shot from bushes and long-legged herons stood in ponds near tiny villages that have been devastated by shellfire.

The Ukrainian unit was deployed in trenches dug into one of the countless tree lines that divide the fields, difficult terrain for the Russians to defend against well-armed determined troops backed by long-range artillery and heavy armour.

The Russians “have been shooting less since about three weeks ago,” said Myhailo, 42, who like the other soldiers withheld his last name. “And their drones are less active.”

“It’s probably been about a month that there’s been less shelling,” agreed Sasha, 19. “This has to finish at some point. Their ammunition can’t last forever.”

It was unclear how widespread that trend was across the southern front. Ukrainian military rules prohibited the identification of the unit and its location.

The men were relaxed, chatting and smoking as they sat on car seats and tree stumps outside bunkers and dugouts gouged into the hard earth. Their mascot, a German shepherd named Odin, lounged by an assault rifle, yawning deeply.

The troops said that they would not allow the Russians to retreat without a fight.

“We’re not going to help them,” vowed Myhailo, who worked in civilian life as a welder in the Lviv region, where the unit is based. “Do they think they can just come here and leave? You can’t just break into someone’s house and go.”

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Reporting by Jonathan Landay, Editing by Rosalba O’Brien

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EXCLUSIVE In letter, Sweden lists ‘concrete actions’ on Turkey’s concerns over NATO bid

  • Sweden said it had stepped up efforts against Kurdish militants
  • Says it will address pending extradition requests
  • Letter meant to demonstrate Sweden’s commitment to pledges
  • Sweden asked to join NATO after Russia’s invasion of Ukraine
  • Turkey initially vetoed, accused Sweden of harbouring militants

ISTANBUL, Oct 21 (Reuters) – Sweden has taken “concrete action” to address Turkey’s concerns over its NATO membership bid, including stepping up counter-terrorism efforts against Kurdish militants, Stockholm told Ankara in a letter dated Oct. 6 and seen by Reuters.

The two-page letter gives 14 examples of steps taken by Sweden to show it “is fully committed to the implementation” of a memorandum it signed with Turkey and Finland in June, which resulted in NATO member Turkey lifting its veto of their applications to the trans-Atlantic security alliance.

Sweden and Finland launched their bids to join NATO in May in response to Russia’s invasion of Ukraine, but ran into objections from Turkey, which accuses the two Nordic countries of harbouring what it says are militants from the banned Kurdistan Workers Party (PKK) and other groups.

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Stockholm and Helsinki deny harbouring terrorists but have pledged to cooperate with Ankara to fully address its security concerns, and to lift arms embargoes. Yet Turkey’s President Tayyip Erdogan said as recently as Oct. 6 that its demands had not yet been met.

In its letter to Turkey, Sweden said that “concrete action has been taken on all core elements of the trilateral agreement”.

Sweden’s security and counter-terrorism police, Sapo, “has intensified its work against the PKK”, and it made “a high-level visit” to Turkey in September for meetings with Turkey’s MIT intelligence agency, the letter said.

Sweden’s foreign ministry and the communications arm of Erdogan’s office each did not immediately respond to a request for comment on the letter.

Swedish officials delivered the letter, which was not previously reported, to Erdogan’s office and the foreign ministry at the weekend, a source familiar with the situation said, requesting anonymity due to sensitivity over it.

The letter was meant to reassure Turkey of Sweden’s efforts amid ongoing bilateral talks and to encourage ultimate approval of the NATO membership bid, the source added.

According to the letter, Swedish authorities “carried out new analyses of PKK’s role in threats to Sweden’s national security and in organised crime (and) this is likely to lead to concrete results.”

The PKK, which took up arms against the Turkish state in 1984, is considered a terrorist group by Turkey, the European Union and the United States. As part of talks over the June memorandum, Turkey has sought the extradition of 73 people from Sweden and a dozen others from Finland, where it is concerned with other groups.

The letter says Stockholm extradited one Turkish citizen on Aug. 31 upon Ankara’s request, after an Aug. 11 decision, and that a total of four extraditions have been made to Turkey since 2019.

Extraditions were discussed by a Swedish delegation visiting Ankara in early October, according to the letter.

“Sweden is committed to address…pending extradition requests of terror suspects expeditiously and thoroughly,” taking into account Turkish intelligence and in accordance with Swedish law and the European Convention on Extradition, the letter said.

Turkey will continue consultations with Sweden and Finland “to pursue full implementation of the memorandum,” Turkish diplomatic sources told Reuters. However steps “need to be taken…(in) combatting terrorism, prevention and punishment of incitement to terrorism, improvement of security and judicial cooperation,” the sources added.

The parliaments of all 30 North Atlantic Treaty Organization (NATO) member states’ must approve Sweden and Finland’s bids, which would mark a historic enlargement of the alliance as the war in Ukraine continues.

In a sign that talks were progressing, Sweden’s foreign minister said on Friday he expects the last two holdouts, Turkey and Hungary, to vote soon on its NATO applications.

Erdogan was quoted by Turkish broadcasters as saying on Friday that Sweden’s newly appointed Prime Minister Ulf Kristersson backs the fight against terrorism and that they would meet to discuss the NATO bid and extraditions.

A day earlier Kristersson said after meeting with NATO’s secretary general that his government “will redouble efforts to implement the trilateral memorandum with Finland and Turkey”.

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Reporting by Jonathan Spicer; Additional reporting by Simon Johnson in Stockholm; Editing by Raissa Kasolowsky and Diane Craft

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Japanese yen jumps as traders suspect intervention

TOKYO/LONDON/NEW YORK, Oct 21 (Reuters) – Japanese authorities likely intervened in markets to stem the slide of the country’s battered currency on Friday, market participants said, following an unexpected jump in the yen against the dollar.

The yen rose as high as 144.50 per dollar on Friday, up more than 7 yen from a 32-year low of 151.94 yen per dollar, touched earlier in the session. The dollar was last down 1.8% at 147.34 yen.

“It’s very clearly the Ministry of Finance stepping in to sell dollar-yen,” said Mazen Issa, senior FX strategist at TD Securities in New York.

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Karl Schamotta, chief market strategist, at Corpay in Toronto concurred. “We are hearing large blocks are being traded,” he said. “That typically means either larger institutions are moving money or that a central bank is intervening in size. The clearest evidence is just the scale of dollar selling that is happening.”

The Nikkei, citing a source, also said Japan had intervened to buy yen and sell dollars.

Japan’s Ministry of Finance declined to comment.

If confirmed, this would be the second time since September that Japan has intervened in the currency market to shore up the yen.

The currency, down about 22% against the dollar this year, has been battered as the Bank of Japan sticks to an ultra-loose monetary policy, while the U.S. Federal Reserve and other major central banks aggressively raise interest rates.

The falling yen is pushing up import costs and households’ living expenses, piling pressure on Prime Minister Fumio Kishida to stop the relentless fall.

Reuters Graphics

WARNING SPECULATORS

While Bank of Japan Governor Haruhiko Kuroda has repeatedly ruled out changing the policy stance, policymakers have been vocal with their concerns.

In a speech on Friday, Kuroda stressed the central bank’s resolve to keep rates low. “Uncertainty over Japan’s economic outlook is extremely high,” Kuroda said. “We must closely watch the impact financial and currency market moves could have on Japan’s economy and price.

Japanese Finance Minister Shunichi Suzuki said earlier on Friday that the authorities were dealing with currency speculators “strictly”.

“We cannot tolerate excessive moves by speculators. We will respond appropriately while watching currency market movements with a high sense of urgency,” Suzuki said.

TD’s Issa said the market intervention happened at “a very illiquid time”, when traders in London were headed home for the weekend.

“It seems like it is designed to inflict as much pain as possible on, they like to use the term, speculators,” Issa said.

RARE MOVES

Japan has rarely intervened in currency markets. Before the September intervention, the last time it stepped in to support the currency was during the Asian financial crisis of 1997 to 1998.

It spent up to a record 2.8 trillion yen ($19.7 billion) – equivalent to half its annual defence spending – in the intervention last month. read more

Speculation that Japan would step into the market again had grown over the past week as yen weakened beyond a key psychological level of 150 per dollar on Thursday for the first time since August 1990.

While authorities have denied having a line-in-the-sand in mind, political factors mean they do need to be mindful of defending psychologically important thresholds.

They also look at technical charts for key support levels for the Japanese currency which, if broken, could accelerate its decline.

Some market participants have pointed to the dollar/yen’s July 1990 high above 152 as the next threshold, then 155.

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Reporting by Tetsushi Kajimoto and Leika Kihara in TOKYO, John McCrank, Saqib Iqbal Ahmed and Gertrude Chavez in NEW YORK and Dhara Ranasinghe in LONDON; Additional reporting by Kantaro Komiya and Sakura Murakami
Editing by Chang-Ran Kim, Shri Navaratnam, Kirsten Donovan and Diane Craft

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Factbox: Is the Kakhovka dam in Ukraine about to be blown?

Oct 21 (Reuters) – Russia and Ukraine have accused each other of planning to blow up the Kakhovka hydro-electric dam on the Dnipro River, a step that would unleash a devastating flood across a large area of southern Ukraine.

What is the Kakhovka dam, is it about to be blown and what impact would that have?

SIGNIFICANCE OF THE DAM

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* The dam, 30 metres (yards) tall and 3.2 km (2 miles) long, was built in 1956 on the Dnipro river as part of the Kakhovka hydroelectric power plant.

* It holds an 18 km3 reservoir which also supplies water to the Crimean peninsula, annexed by Russia in 2014, and to the Zaporizhzhia nuclear plant, which is also under Russian control.

* The volume of water in the reservoir is about equal to the Great Salt Lake in the U.S. state of Utah.

* Blowing the Soviet-era dam, which is controlled by Russia, would unleash a wall of devastating floodwater across much of the Kherson region which Russia last month proclaimed as annexed in the face of a Ukrainian advance.

* Destroying the Kakhovka hydro-electric power plant would also add to Ukraine’s energy woes after weeks of Russian missile strikes aimed at generation and grid facilities which Kyiv said have damaged a third of its country-wide power network.

ALLEGATIONS

* Sergei Surovikin, the commander of Russian forces in Ukraine, said on Tuesday he had information that Ukrainian forces were preparing a massive strike on the dam and had already used U.S.-supplied HIMARS missiles of a major strike, he said, could be a disaster.

“We have information on the possibility of the Kyiv regime using prohibited methods of war in the area of the city of Kherson, on the preparation by Kyiv of a massive missile strike on the Kakhovka hydro-electric dam,” Surovikin said.

Ukrainian officials said the allegation was a sign that Moscow planned to attack the dam and blame Kyiv.

* Ukrainian President Volodymyr Zelenskiy said on Thursday that Russia had mined the dam and was preparing to blow it, a step he compared to the use of weapons of mass destruction.

“I informed the Europeans today, during the meeting of the European Council, about the next terrorist attack, which Russia is preparing for at the Kakhovka hydroelectric power plant,” he said. “Destroying the dam would mean a large-scale disaster.”

Blowing the dam, he said, would also destroy the water supply to Crimea and thus show that Russia had accepted that it could not hold onto the peninsula.

Kirill Stremousov, the Russian-installed deputy head of the annexed Kherson region, said Kyiv’s allegations that Russia had mined the dam were false.

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Reporting by Reuters; editing by Guy Faulconbridge and Philippa Fletcher

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Japan’s inflation hits 8-year high in test of BOJ’s dovish policy

  • Sept core CPI rises 3.0% yr/yr, matches forecast
  • Core consumer inflation stays above BOJ goal for 6th month
  • Data underscores broadening inflationary pressure
  • BOJ seen keeping ultra-low interest rates on fragile economy

TOKYO, Oct 21 (Reuters) – Japan’s core consumer inflation rate accelerated to a fresh eight-year high of 3.0% in September, challenging the central bank’s resolve to retain its ultra-easy policy stance as the yen’s slump to 32-year lows continue to push up import costs.

The inflation data highlights the dilemma the Bank of Japan faces as it tries to underpin a weak economy by maintaining ultra-low interest rates, which in turn are fuelling an unwelcome slide in the yen.

Reuters Graphics

The increase in the nationwide core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, matched a median market forecast and followed a 2.8% rise in August. It stayed above the BOJ’s 2.0% target for the sixth month, and was the fastest pace of gain since September 2014, data showed on Friday.

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The broadening price pressures in Japan and the yen’s tumble below the key psychological barrier of 150 to the dollar will likely keep alive market speculation of a tweak to the Bank of Japan’s dovish stance over coming months.

“The current price rises are driven mostly by rising import costs rather than strong demand. Governor Kuroda may maintain policy for the rest of his term until April, though the key is whether the government will tolerate that,” said Takeshi Minami, chief economist at Norinchukin Research Institute.

The data heightens the chance the BOJ will revise up its consumer inflation forecasts in new quarterly forecasts due at next week’s policy meeting, analysts say.

The yen’s decline has been particularly painful for Japan due to its heavy reliance on imports for fuel and most raw material, forcing companies to hike prices for a wide range of goods including fried chicken, chocolates to bread.

The so-called ‘core-core’ index, which strips away both fresh food and energy costs, rose 1.8% in September from a year earlier, accelerating from a 1.6% gain in August and marking the fastest annual pace since March 2015.

The rise in the core-core index, which the BOJ closely watches as a key gauge of the underlying strength of inflation, toward its 2% target casts doubt on the central bank’s view that recent price rises will prove temporary.

With Japan’s inflation still modest compared with price rises seen in other major economies, the BOJ has pledged to keep interest rates super-low, remaining an outlier in a global wave of monetary policy tightening.

BOJ Governor Haruhiko Kuroda has stressed the need to focus on supporting the economy until wage growth picks up enough to compensate for the rising cost of living.

While Japan’s labour union lobby has pledged to demand wage hikes of around 5% in next year’s wage negotiations, analysts doubt pay will rise so much with fears of global recession and soft domestic demand clouding the outlook for many companies.

The September CPI data showed that while goods prices rose 5.6% year-on-year, services prices were just up 0.2% in a sign of how Japan’s inflation is still driven mostly by cost-push factors.

“Consumer inflation is likely to slow in 2023. If so, any tweak to the BOJ’s easy monetary policy will be minor even under the change to the bank’s leadership next year,” said Yasunari Ueno, chief market economist at Mizuho Securities.

Governor Kuroda will see his second, five-year term expire in April next year. The term of his two deputy governors will also end in March.

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Reporting by Leika Kihara and Takahiko Wada; Additional reporting by Yoshifumi Takemoto; Editing by Sam Holmes and Shri Navaratnam

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The big reveal: Xi set to introduce China’s next standing committee

BEIJING, Oct 21 (Reuters) – Xi Jinping, poised to clinch a third five-year term as China’s leader, will on Sunday preside over the most dramatic moment of the Communist Party’s twice-a-decade congress and reveal the members of its elite Politburo Standing Committee.

Xi’s break with precedent to rule beyond a decade was set in motion when he abandoned presidential term limits in 2018. His norm-busting as China’s most powerful ruler since Mao Zedong has made it even harder to predict who will join him on the standing committee.

The 69-year-old leader’s grip on power appears undiminished by a sharp economic slowdown, frustration over his zero-COVID policy, and China’s increasing estrangement from the West, exacerbated by his support for Russia’s Vladimir Putin.

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The new leadership will be unveiled when Xi, widely expected to be renewed in China’s top post as party general secretary, walks into a room of journalists at Beijing’s Great Hall of the People, followed by the other members of the Politburo Standing Committee (PSC) in descending order of rank.

The lineup – who is in, who is not, and who is revealed to replace Premier Li Keqiang when he retires in March – will give party-watchers grist to speculate over just how much Xi has consolidated power by appointing loyalists.

At the same time, some analysts and diplomats say, the makeup of the standing committee and the identity of the premier matter less than they once did because Xi has moved away from a tradition of collective leadership.

“The new PSC line up will tell us whether Xi cares only about personal loyalty or whether he values some diversity of opinion at the top,” said Ben Hillman, director of the Australian Centre on China in the World at Australian National University.

“It is possible that the new PSC will consist entirely of Xi loyalists, which will signify the consolidation of Xi’s power, but pose great risks for China. A group of ‘yes’ men at the top will limit the information available for decision-making.”

IN OR OUT?

At least two of the seven current Standing Committee members are expected to retire due to age norms. Reports this week in the Wall Street Journal and South China Morning Post suggest there could be as many as four openings, with Premier Li, 67, possibly among those stepping down.

As for the next premier, although Wang Yang, 67, and Hu Chunhua, 59, a former and current vice premier, respectively, are both considered by analysts to be well-qualified by the traditional standards of a role charged with overseeing the economy, they lack long-term connections to Xi.

Shanghai party boss Li Qiang, who has long-standing ties to Xi, is likely to join the PSC and is considered a leading contender to be premier, the Wall Street Journal reported, citing unnamed sources close to party leaders.

Li’s elevation to premier would be a strong sign of the importance of loyalty to Xi following Shanghai’s punishing and unpopular two-month COVID-10 lockdown this year, for which Li drew heavy blame from residents.

Another loyalist seen by party-watchers as a candidate for promotion is Ding Xuexiang, 60, who is Xi’s chief secretary and head of the Central Committee’s powerful General Office, which manages the administrative affairs of the top leadership.

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Reporting by Tony Munroe, Martin Quin Pollard and Yew Lun Tian; Editing by Lincoln Feast.

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Ukrainians try to conserve electricity, endure water outages after Russian strikes

  • Russian strikes destroy Ukrainian power and water facilities
  • Ukraine says it wants to cut power use by a fifth
  • Ukrainians conserve power, some go with out running water
  • Battle for southern city of Kherson looms

KYIV, Oct 20 (Reuters) – Ukrainians conserved electricity and some went without running water to try to ease pressure on the grid and give engineers a chance to rebuild infrastructure destroyed by Russian strikes as Kyiv’s forces advanced towards the city of Kherson.

Although Ukraine is successfully prosecuting counter-offensives against Russian forces in the east and the south, it is struggling to protect power generating facilities and other utilities from Russian air and drone strikes designed to disrupt lives and demoralise people as winter approaches.

The Ukrainian government on Thursday placed restrictions on electricity usage nationwide for the first time since Russia’s Feb. 24 invasion following a barrage of attacks which President Volodymr Zelenskiy said had struck a third of all power plants.

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Under the new energy-saving regime, power supply across Ukraine was on Thursday restricted between 7 a.m. and 11 p.m.

Ukraine’s energy minister said the government was seeking a 20% reduction in energy use and that Ukrainians were responding to the appeal to limit usage.

“We see a drop in consumption,” he said. “We see a voluntary decrease. But when it is not enough, we are forced to bring in forced shutdowns,” Minister Herman Halushchenko told Ukrainian TV.

Russia had carried out more than 300 air strikes on Ukrainian energy facilities since Oct. 10, he added.

Zelenskiy told the nation in a Wednesday night video address: “There is new damage to critical infrastructure. Three energy facilities were destroyed by the enemy today.

“We assume that Russian terror will be directed at energy facilities until, with the help of partners, we are able to shoot down 100% of enemy missiles and drones.”

One of the facilities hit on Wednesday was a coal-fired thermal power station in the city of Burshtyn in western Ukraine.

“Unfortunately there is destruction, and it is quite serious,” Svitlana Onyshchuk, Ivano-Frankivsk’s governor, said on Ukrainian television.

“Please limit your electricity consumption,” Zelenskiy told Ukrainians in the same address to the nation.

The Ukrainian leader was due to address an EU summit later on Thursday. Leaders of the 27 member states will discuss options for more support to Ukraine, including energy equipment, helping restore power supply and long-term financing to rebuild.

BATTLE FOR KHERSON

Cities such as the capital Kyiv and Kharkiv in the northeast announced curbs on the use of electric-powered public transport such as trolleybuses and reduced the frequency of trains on the metro.

DTEK, a major electricity supplier in Kyiv, told consumers it would do its best to make sure outages did not last longer than four hours.

The whole northeast region of Sumy, which borders Russia, said it would go the entire day – from 0700 to 2300 local time – without water, electric transport or street lighting.

“We need time to restore power plants, we need respite from our consumers,” Volodymyr Kudrytskyi, head of grid operator Ukrenergo, told Ukrainian TV.

Russia’s defence ministry said on Thursday it was continuing to target Ukrainian energy infrastructure, a strategy it has stepped up since the appointment earlier this month of Sergei Surovikin – nicknamed “General Armageddon” by the Russian media because of his alleged toughness – as overall commander of what Moscow called its “special military operation”.

Reuters witnesses said five drones hit the southern port city of Mykolaiv on Thursday, but it was unclear where they had exploded.

The Ukrainian military continued to try to press its advance towards the southern city of Kherson, the only regional capital Russian forces have captured since their invasion eight months ago.

The Russian-appointed administration on Wednesday told civilians to leave the city – control of which allows Russia to control the only land route to the Crimea peninsula, seized by Russia in 2014, and the mouth of the Dnipro river.

On Wednesday, Kirill Stremousov, deputy head of the Russia-backed administration in Kherson, wrote on Telegram that Ukraine had launched an offensive towards Novaya Kamianka and Berislav in the Kherson region.

While Ukraine remained tight-lipped about its operations, its military said in an early Thursday update on the Kherson region said 43 Russian servicemen had been killed and six tanks and other equipment destroyed.

The Russian defence ministry on Thursday described a battle in the area which it said its forces had won in the end.

“In the area of the settlement of Sukhanovo, Kherson region, the enemy managed to drive a wedge into Russian units’ defensive lines,” the ministry said.

“Due to the introduction of a tank reserve by the Russian command into battle, as well as ambush actions, the enemy was significantly defeated, and Ukrainian units fled. The position on the front edge of the defensive line has been completely restored.”

Reuters was not able to verify battlefield reports.

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Reporting by Reuters bureaux; Writing by Andrew Osborn; Editing by Angus MacSwan

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Putin boosts Russia’s war footing as battle looms for Ukraine’s Kherson

  • Russia tightens security in seized regions
  • Kherson is evacuated
  • Ukraine calls martial law move meaningless
  • Ukraine to curb electricity nationwide Thursday

KYIV/MYKOLAIV, Ukraine, Oct 19 (Reuters) – President Vladimir Putin ordered all of Russia to support the war effort in Ukraine on Wednesday, as the Russian-appointed administration of Kherson prepared to evacuate the only regional capital Moscow has captured during its invasion.

Images of people using boats to flee the strategic southern city were broadcast by Russian state TV, which portrayed the exodus on the Dnipro river as an attempt to evacuate civilians before it became a combat zone.

The Russian-installed chief of Kherson – one of four Ukrainian regions unilaterally claimed by Moscow where Putin declared martial law on Wednesday – said about 50,000-60,000 people would be moved out in the next six days.

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“The Ukrainian side is building up forces for a large-scale offensive,” Vladimir Saldo, the official, told state TV. “Where the military operates, there is no place for civilians.”

Kherson is arguably the most strategically important of the annexed regions. It controls both the only land route to the Crimea peninsula Russia seized in 2014, and the mouth of the Dnipro, the 2,200-kilometre-long (1,367-mile) river that bisects Ukraine.

Staff at Kherson’s Russian-backed administration were also being relocated to the eastern side of the Dnipro, Saldo said, although he said Russia had the resources to hold the city and even counter-attack if necessary. Russian forces near Kherson have been driven back by 20-30 km (13-20 miles) in the last few weeks.

Eight months after being invaded, Ukraine is pressing major counter-offensives in the east and south to try to take as much territory as it can before winter.

ELECTRICITY CUTS

Russia has intensified its missile and drone attacks on Ukraine’s power and water infrastructure this week in what Ukraine and the West call a campaign to intimidate civilians ahead of the cold winter.

On Thursday, electricity supply will be restricted nationwide between 7 a.m. and 11 p.m., government officials and the grid operator Ukrenergo said. Street lighting in cities will be limited, a presidential aide said on the Telegram messaging app, adding that if electricity use was not minimised, there would be temporary blackouts.

While limited to Thursday, “we do not exclude that with the onset of a cold weather we will be asking for your help even more frequently,” Ukrenergo said.

Russia has destroyed three Ukrainian energy facilities over the last 24 hours, President Volodymyr Zelenskiy said in his Wednesday night video address.

A Russian missile strike hit a major thermal power station in the city of Burshtyn in western Ukraine on Wednesday, the region’s governor said.

Zelenskiy, who has said a third of his country’s power stations have been hit by Russian strikes, discussed security at power supply plants with senior officials.

“We are working to create mobile power points for the critical infrastructure of cities, towns and villages,” Zelenskiy wrote on Telegram.

“We are preparing for various scenarios,” Zelenskiy said.

PUTIN’S POWERS

In televised remarks to his Security Council, Putin boosted the powers of Russia’s regional governors and ordered the creation of a coordinating council under Prime Minister Mikhail Mishustin to support his “special military operation”.

He said the “entire system of state administration” must be geared to back up the Ukraine effort.

It was unclear what the immediate impact of Putin’s declaration of martial law would be, beyond much tighter security measures in Kherson and the other three regions.

But Ukraine, which along with the West does not recognise Moscow’s self-styled annexations, derided the move. Presidential adviser Mykhailo Podolyak called it “a pseudo-legalisation of (the) looting of Ukrainians’ property.”

“This does not change anything for Ukraine: we continue the liberation and deoccupation of our territories,” he tweeted.

U.S. President Joe Biden said Putin had found himself in a difficult position and his only tool was to brutalize Ukrainian civilians. The U.S. State Department said it was no surprise that Russia was resorting to “desperate tactics”.

Ukrainian and Russian forces exchanged intermittent artillery fire on a section of the Kherson front in the Mykolaiv region on Wednesday, the impacts marked by towers of smoke.

Several Ukrainian soldiers said they were aware of the martial law declaration but were not worried, although they warned a visiting Reuters reporter of the danger presented by Russian drones.

“For sure he’s (Putin) up to no good. We understand that,” said Yaroslav, who declined to give his last name. “But whatever they are doing, we will screw them anyway.”

Oleh, who also withheld his last name, said Russia in the past had warned about what it claimed would be escalatory Ukrainian actions only to carry them out itself.

“We are just concerned about our people in the Kherson region,” he said.

Moscow denies deliberately targeting civilians, though the conflict has killed thousands, displaced millions and pulverised Ukrainian cities.

The Kremlin placed a nuclear umbrella over the regions it says it has annexed, among nuclear threats which Britain’s chief of defence staff Tony Radakin said signalled desperation.

“It is a sign of weakness, which is precisely why the international community needs to remain strong and united,” Radakin said during a speech.

British Defence Minister Ben Wallace met his U.S counterpart in Washington this week to discuss shared security concerns about the situation in Ukraine, a senior defence source said in response to speculation around the sudden trip.

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Additional reporting by Tom Balmforth, Max Hunder and Reuters bureaux; Writing by Andrew Osborn, Philippa Fletcher and Grant McCool; Editing by Andrew Cawthorne, John Stonestreet and Rosalba O’Brien

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Madagascar minister fired for voting against Russia’s Ukraine annexation

ANTANANARIVO, Oct 19 (Reuters) – Madagascar’s president has fired his foreign affairs minister for voting at the United Nations to condemn Russian-organised referendums to annex four partially-occupied regions in Ukraine, two sources at the president’s office said.

Last Wednesday, the U.N. General Assembly voted overwhelmingly to condemn what it said was Russia’s “attempted illegal annexation” of the four regions in Ukraine and called on all countries not to recognise the move. read more

Of the 193-member General Assembly, 143 countries voted in support of a resolution that also reaffirmed the sovereignty, independence, unity and territorial integrity of Ukraine within its internationally recognised borders.

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Two senior officials at President Andriy Rajoelina’s office told Reuters minister Richard Randriamandrato was sacked for being one of those who voted in support.

Russia’s invasion of Ukraine this year has put many African countries in an awkward diplomatic position. Many have a complicated history of relations with the West and the former Soviet Union as well as important economic ties to Russia.

They have largely avoided taking sides over the war, frustrating some Western nations.

Until last week, Madagascar always abstained during the various votes on resolutions related to the crisis in Ukraine. The government spoke of neutrality and non-alignment on the subject.

Randriamandrato declined to comment.

Eighteen of the 35 countries to abstain on last week’s vote were African. Russia, Belarus, North Korea, Syria and Nicaragua voted against the resolution.

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Reporting by Lovasoa Rabary; Writing by George Obulutsa; Editing by Alex Richardson

Our Standards: The Thomson Reuters Trust Principles.

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Biden to announce emergency oil sales to prevent price spikes

WASHINGTON, Oct 18 (Reuters) – U.S. President Joe Biden will announce a plan on Wednesday to sell off the last portion of his release from the nation’s emergency oil reserve by year’s end and detail a strategy to refill the stockpile when prices drop, administration officials said.

The plan is intended to add enough supply to prevent oil price spikes that could hurt consumers and businesses, while also assuring the nation’s drillers the government will swoop into the market as a buyer if prices plunge too low.

Biden’s efforts to use federal powers to balance the U.S. oil market underscores just how much the war in Ukraine and rampant inflation has upended the plans of a president who came into office vowing to undo the oil industry and move the country swiftly to a fossil-fuel free future.

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It also shows the administration’s desire to keep inflation in check, particularly in the weeks before November congressional elections in which Biden’s fellow Democrats hope to retain control of Congress.

Earlier this year, Biden decided to sell 180 million barrels out of the Strategic Petroleum Reserve (SPR) to combat a potential supply crisis brought about by sanctions on oil-rich Russia following its February invasion of Ukraine.

While the initial plan was to end those sales in November, purchases were slower than expected over the summer and some 15 million barrels remain unsold.

Those will be put up for bidding for delivery in December, a senior administration official said, and extra oil could also be made available if needed.

U.S. President Joe Biden calls for a federal gas tax holiday as he speaks about gas prices during remarks in the Eisenhower Executive Office Building’s South Court Auditorium at the White House in Washington, U.S., June 22, 2022. REUTERS/Kevin Lamarque

“The president’s going to keep a careful eye on announcing today that whatever we’re doing today could continue and see additional SPR releases – if necessary,” senior U.S. energy adviser Amos Hochstein said on Wednesday.

“The president’s also going to be announcing that we are going to replenish the SPR,” he said in an interview with CNN.

Biden will lay out a plan to refill the emergency reserve in the upcoming years, but only at prices at or below a range of $67 to $72 dollars a barrel for West Texas Intermediate
, the U.S. oil benchmark, the senior administration official said.

“There’s no imminent threat of oil collapse,” Hochstein said on CNBC later.

Biden’s hope is to send a signal to both consumers and producers.

“He is calling on the private sector in the United States to do two things. One is take this signal and increase production, increase the investment, and No. 2 is to make sure that as they are taking these profits, as they are benefiting from these markets, that they are continuing to give the consumer the appropriate price,” the official said.

In recent weeks, the oil industry has grown increasingly concerned the administration might take the drastic step of banning or limiting exports of gasoline or diesel to help build back sagging U.S. inventories. They have called on the administration to take the option off the table, a move officials are unwilling to do.

“We are keeping all tools on the table, you know, anything that could potentially help ensure stable domestic supply,” the official said.

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Reporting by Jarrett Renshaw and Steve Holland, additional reporting by Doina Chiacu; Editing by Lincoln Feast, Heather Timmons and Lisa Shumaker

Our Standards: The Thomson Reuters Trust Principles.

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