1315GMT//Lukoil to sell foreign assets off cheaply; visa deal with Myanmar; Russian reservists to deploy in anti-drone units

LUKOIL'S FOREIGN ASSETS TO BE SOLD CHEAPLY: Lukoil will sell off its foreign assets at a 50-70% discount because of Western sanctions, a Russian energy analyst told the Izvestia newspaper. Lukoil said at the end of last week that new US sanctions would force it to sell off foreign assets. These have been valued at around $10b. (COMMENT: This is a potentially high loss for Lukoil. In reality, though, it is likely that the company will retain ownership of assets in the Middle East and the former Soviet Union, regions which are either pro-Russia or sympathetic. Lukoil will, though, have to sell off valuable assets in the EU and the US.)

VISA-FREE TRAVEL TO MYANMAR: Russian foreign minister Sergei Lavrov signed a visa-free deal with Myanmar on Tuesday. The deal gives citizens of both countries visa-free access for 30 days, although parts of Myanmar are off limits to Russians. (COMMENT: A military junta has ruled Myanmar since 2021. This is the sort of ally that the Kremlin is now having to rely on to bolster its status. Russia supplies the Myanmar military junta with weapons. There have also been countless allegations of Russians and other foreigners being lured into salvery in Myanmar.)

PARLIAMENT PUSHES FOUR-DAY WEEKS: MPs in Russia's parliament have started debating the merits of a four-day work week or reduced work hours. Russian media have quoted several MPs supporting four-day weeks, 36-hour days or increased flexi-working. (COMMENT: This apparently new interest in working conditions in Russia is driven by a shortage of work. Russia's economy is limping along, and several large industries have put their workers on four-day work weeks. The Kremlin and its propaganda outlets appear keen to normalise this in the public discourse.)

TRADE WITH CHINA FALLS: Russia-Chinese trade has fallen by 10% this year, Russia's ambassador to China has said. Citing Chinese customs data, Igor Morgulov said that the biggest fall in trade from China to Russia was in cars. These, he said, had fallen by 55% between January and September. (COMMENT: Russian officials have said that the decline in trade between Russia and China is likely linked to the saturation of the Russian market by Chinese products. In reality, increased US sanctions against Russia have worried Chinese producers, which are now more coy about dealing with the Russian customers.)

DEPLOYING RESERVISTS: Russia's parliament on Tuesday passed a law that allows reservists to be deployed to guard "critical" and "vital" infrastructure. They will also be organised into special anti-drone units. (COMMENT: This law appears to be a direct response to Ukrainian drone attacks on Russian infrastructure, specifically oil and gas infrastructure. The Kremlin needs to boost its defences against drone attacks, and coercing reservists into patrolling refineries with anti-drone guns through the night is their answer. Whether or not it works is another issue.)

POLAND INTERCEPTS RUSSIAN RECON PLANE: Two Polish fighter jets intercepted a Russian reconnaissance plane over the Baltic Sea on Tuesday evening. Polish air traffic said that the Russian aircraft was flying with its transponder turned off and also failed to respond to requests to submit a flight plan. (COMMENT: The Russian air force has become increasingly brazen with its probing of EU air defence systems and reaction times.)