0756GMT//Putin flies to Bishkek for talks; Russian car and smarthphone sales collapse; China raises prices for Russian imports of 'dual-use' products
UKRAINE PEACE TALKS: Russian and US negotiators are due to meet in Abu Dhabi today to discuss a revised 19-point peace plan for Ukraine. US and Ukrainian negotiators thrashed out the new plan in Switzerland on Monday. In Ukraine, a large Russian missile and drone attack on Kyiv killed at least six people overnight. Ukrainian attacks also reportedly killed civilians in Russia. (COMMENT>> An initial 28-point peace plan for Ukraine negotiated by the US and Russia that appeased the Kremlin and handed treasure to the US has been watered down. This, and US pressure, may be enough for Volodymyr Zelensky to sign up to it.)
PUTIN TO FLY TO KYRGYZSTAN: Vladimir Putin will fly to Kyrgyzstan on Tuesday for three days of meetings, including a summit of the Collective Security Treaty Organisation (CSTO). The trip will include bilateral talks with the Kyrgyz Pres. Sadyr Japarov. Included in Putin entourage are senior business leaders, including Roman Abramovich, and members of the cabinet. (COMMENT>> Putin will be looking for easy propaganda wins during his trip to Kyrgyzstan, hosted by Japarov, an ally. The seniority of his entourage shows how important he feels these trips are. Also, worth noting is that Putin may be in Kyrgyzstan as the final details of a peace deal for Ukraine emerge.)
CHINA RAISES PRICES: Chinese exporters have increased prices of 'dual use' goods to Russia by 87% since 2021, research by the Bank of Finland has shown. So-called 'dual-use' goods are transposed from civilian use to the military. (COMMENT>> China has become vital to the Russian economy to skip around sanctions but it has come at a cost. Russian importers have started to complain more frequently about Chinese "price gouging")
CAR SALES COLLAPSE: Sales of Lada, Russian car manufacturer AvtoVAZ's flagship car, is expected to fall 40% this year, Interfax reported by quoting documents from the Tolyatti city parliament. The documents said that AvtoVAZ now only expects to sell 274,000 Ladas in 2025. Its initial estimate had been 500,000 sales. (COMMENT>> AvttoVAZ's performance is an indicator of Russia's economic ills. It has been bailed out time and again by the Kremlin and has moved to a four-day week. Senior Russian MPs have started to complain that the factory has become a "black hole".)
SALES OF SMARTPHONES FALL: Sales of TVs, smartphones and laptops have all fallen in Russia, industry insiders told the Kommersant newspaper. Between Jan. and Sept., sales of smartphones were down 20%, laptops down 15% and TVs down 11%. (COMMENT>> This is another indication that Russia's economy is approaching a recession, as its Central Bank has warned.)
ECONOMIC OPTIMISM EVAPORATES: Industrial optimism in Russia is at its lowest level since the start of the Covid Pandemic, said data released by the ministry of trade. It said that 66% of respondents now said that demand for their products was below normal levels. (COMMENT>> The findings of this survey will make for particularly tough reading for the Kremlin because there had been an uptick in optimism in October linked to interest rate cuts.)