0749GMT//Putin brags about his missiles (again); China cancels Russian oil imports; Russian 'monogorods' given cheap loans
MISSILE FETISH: Vladimir Putin on Tuesday held a special ceremony in the Kremlin to praise the designers of two new missiles that he unveiled last month. Putin said that the nuclear-powered Burevestnik cruise missile and the Poseidon torpedo would ensure "security and strategic parity" for Russia "for the entire 21st century". (COMMENT>> Even for Putin this was an unusually hyperbolic statement. He has staked a lot on these two missiles, unveiled after the US imposed new sanctions on Russia and threatened to send Tomahawk missiles to Ukraine. The reality is, the West largely ignored them.)
A COLD WAR PLAY: Russia has threatened to send ballistic missiles to Venezuela as tensions between its South American ally and the US build. Alexei Zhuravlyov, First Deputy Chairman of the Russian parliament's defence committee, said that the US "may be in for a surprise". (COMMENT>> This all has a Cold War touch about it, with the US and Russia appearing to square up around a distant state. If the Kremlin did send ballistic missiles to Venezuela, it would be seen as a major escalation by the US. Also, it's doubtful that Russia can even spare the missiles at the moment.)
DRONE STRIKE: Ukrainian drones on Tuesday struck a petrochemical plant in Bashkortostan in Siberia, 1,200km from the Russia-Ukraine border. According to reports, damage at the Sterlitamak plant was light. (COMMENT>> Although there was little apparent damage from the drone attack, it once again shows off Ukraine's drone range. Ukraine has continued to attack Russian factories and refineries, triggering shortages and forcing the Kremlin to divert funds from the frontline to defending domestic industry.)
OIL EXPORTS FALL: Chinese and Iraqi oil importers have started to cancel orders from Russia after the US slapped sanctions on Lukoil and Rosneft, reports said. These reports said that companies were increasingly wary about the prospect of secondary US sanctions. (COMMENT>> There is little doubt that US sanctions on Lukoil and Rosneft, imposed last month, have had major repercussions on the Kremlin's income. These were the two Russian oil and gas companies with the biggest overseas presence. The Kremlin has already been forced to sell off Lukoil's foreign assets to a Switzerland-based trading company, and now we know that its income from sales is also being hit.)
CONSCRIPTION TWEAK: Putin on Tuesday signed a law that shifts Russia's conscription recruitment process to an all-year format. This allows recruitment staff to process conscripts' medicals and oversee screening exams throughout the year, rather than just during the bi-annual conscription periods. (COMMENT>> Supporters of the conscription process tweak said that it was designed to smooth bottlenecks that build up during the bi-annual recruitment periods. Critics said that it would strengthen conscription and could be used to increase numbers. This does feel like a step towards increasing conscription, although the important point is that this is, currently, just an enlargement of the administrative period.)
MONOGOROD LOANS: The Kremlin has started issuing loans to small businesses in 26 'monogorods'. Government officials said that they wanted to "diversify" the economic base of Russia's 'monogorods'. (COMMENT>> A 'monogorod' is a town typically built during the Soviet period around a single mine, factory or industry. These towns and cities are also typically isolated and have become vulnerable to Russia's industrial collapse since its invasion of Ukraine. Demand for Russian raw materials, previously a major Russian export, has plummeted because of Western sanctions. Even so, this aid package feels limited. The Kremlin has designated 321 towns/cities as official 'monogorods' and yet only 26 are eligible for this support.)
BELARUS' ARILINE: The US lifted sanctions on Belarusian airline Belavia on Tuesday. (COMMENT>> This is seen as a concession to Belarusian leader Alexander Lukashenko for releasing 52 political prisoners in September. Lukashenko, though, is a close ally of Putin and critics of the deal said that they were concerned that the Kremlin would now use Belavia to import sanctioned spare parts for its airlines.)