All news

Press review: Bloomberg sinks to fake news reporting and Bank of Russia to raise key rate

Top stories from the Russian press on Monday, February 7th

Nezavisimaya Gazeta: Joint statement reveals stances of Moscow and Beijing

The leaders of Russia and China are united by a common threat represented by the military blocs in Europe and the Asia-Pacific region. They are also opposed to new alliances in Asia and urged the US not to deploy short-and mid-range missiles on the two continents. That said, according to experts, the rapprochement of both countries does not mean that their opinions on global political hotspots completely coincide. The joint statement does not mention neither Ukraine, nor the South China Sea for a good reason, since Beijing does not want to complicate its relations with Kiev, nor does Moscow want to complicate ties with Hanoi.

China’s The People's Daily called the bolstering of Russian-Chinese relations following the first post-COVID face-to-face meeting between Russian President Vladimir Putin and his Chinese counterpart Xi Jinping an important guarantee for preserving worldwide strategic balance and peace. At the same time, Beijing’s The Global Times noted that the conversation between the two leaders ushered in the beginning of a new era with the US not playing the defining role anymore.

Alexander Lukin, who heads the International Affairs Department at the Higher School of Economics, told Nezavisimaya Gazeta: "The joint statement by Putin and Xi contains repetitions from previous documents yet there is something new. This is, for example, China joining the criticism of NATO’s expansion. It is declared that both countries are also against alliances created by the Americans in the Asia-Pacific region. The document doesn’t say how the countries will proceed. Yet, America’s policy pushes them to coordinate their actions even more. I think, in the current situation this won’t lead to a conclusion of a mutual defense pact. This will become possible only if armed conflicts emerge simultaneously in Europe and Asia, for example, around Ukraine and Taiwan. Currently, the absence of a formal obligation to provide military aid gives both sides more leverage. Neither Russia, nor China want to limit their freedom of action."

 

Nezavisimaya Gazeta: NATO beefs up Ukraine’s offensive capabilities in Donbass

While the West awaits Russia’s invasion of Ukraine, NATO countries continue to pump this country with weapons most of which can be considered as offensive. First of all, this concerns the US delivering in January 2022 FGM-148 Javelin anti-tank rocket systems (about 1,200 missiles and 300 launch systems), M141 Bunker Defeat Munition storm grenade launchers (several thousand units) and the UK supplying about 2,200 units of anti-tank NLAW grenade launchers.

Additionally, Ukraine has received other types of armaments and military equipment. According to the Pentagon, in January-February 2022, it received over 650 tonnes of the said arms shipment. The US also has supplied sniper rifles, ammunition, and communication means. Five military cargo helicopters produced in Russia (Mi-8MTBs and Mi-17B5s) which were initially designated for Afghanistan’s armed forces, are also expected to be delivered from the US. Earlier, the US supplied patrol boats to Ukraine’s Navy as well as Stinger portable rocket systems, while Turkey delivered Bayraktar strike drones that had already been used during combat in Donbass.

According to expert assessments, a contingent of Ukraine’s armed forces has been formed in Donbass numbering about 120,000 servicemen, including no fewer than 12 mechanized and infantry brigades as well as two separate assault units. According to DPR’s military leadership, those assault units are capable of dropping tactical airborne units behind the lines of the peoples’ republics and engage in active military action. Military analyst Vladlen Tatarsky thinks that the Ukrainian military contingent in Donbass "many times (3-5) surpasses the forces of the DPR’s and LPR’s People’s Militia and may switch to vigorous actions at any time."

 

Rossiyskaya Gazeta: Bank of Russia to raise the key rate again

During its first session on monetary policy this year on February 11, the Bank of Russia for the eighth time in a row will raise the key rate, and quite noticeably at that, according to analysts polled by the newspaper. The main reason is inflation isn’t slowing down, and in annual terms, it has already crept up to 9%. The Bank of Russia’s next steps on the key rate will depend on price movements and the geopolitical situation. There is a likelihood that in the spring, the key rate might reach double digits.

The key rate’s increase to 9.5% is a baseline scenario, the market is based on, according to head of the analytical department at Bank Zenit Vladimir Evstifeev. In addition to price dynamics, geopolitical uncertainty also impacts the situation. The ruble has weakened by 2.5% since the December session, note Renaissance Capital experts Sofya Donets and Andrey Melashchenko. They point out that "the main factor for such sustained inflationary pressure is the rise in global prices for both raw materials and technology products which make up almost half of Russia’s import and generally do not have domestic competition."

Head of Macroeconomic Analysis at Finam, Olga Belenkaya, does not think that the key rate will surpass 10% at its peak in the baseline scenario. According to her, its dynamics will depend on peak inflation figures, the rate of subsequent deflation and inflationary expectations, a possible pro-inflation impact of the weakening of the ruble rate over new sanctions or the accelerated normalization of global central banks’ monetary policy.

 

Rossiyskaya Gazeta: Bloomberg sinks to fake news reporting using bogus ‘Russia invades Ukraine’ headline

The US-based Bloomberg news agency has distinguished itself by an outrageous act of unprofessionalism by posting a sensational headline entitled "Russia Invades Ukraine" on its website. This piece of "breaking news" was posted using a "live" banner as if it was happening in real time. About 30 minutes later, the article was removed and Bloomberg’s central office in New York explained away the incident as an inadvertent "error," and expressed deep regrets, vowing to investigate the cause of the mistake. Undoubtedly, we will never find out the results of this investigation, yet the true goals of this dangerous media incitement are on the surface.

Russian political scientist Georgy Bovt told the Business FM radio station that one shouldn't discard the possibility of Bloomberg testing the waters of global stock markets by dropping such an "information bomb," adding that an intentional provocation of Ukraine is also possible.

Chairman of Federation Council's Commission on Information Policy and Cooperation with the Media Alexey Pushkov told the newspaper that this ‘mistake’ was somewhat expected given the "hysterical political attitude of American media outlets that look forward to a war, anticipating it, and pushing hard for it and all but demand a direct military intervention by the US. Indignant remarks along the lines of ‘why President Biden is not doing more to protect Ukraine?’ are being echoed by American TV channel one after the other." The politician pointed out that Bloomberg resorting to "outright lies" was nothing new. "All of this has already happened numerous times in American media - with regards to Yugoslavia, and Iraq, and Libya, and Syria. And now they have discovered a new fake news front," he concluded.

 

Izvestia: Russia’s south being reinforced with mobile air defense units

Southern Russia and the Caucasus will be covered by an "impenetrable air defense dome" according to Izvestia’s sources in the Russian Defense Ministry. New divisions and units of the air defense mobile reserve will be formed within the framework of the Southern Military District. If necessary, they should be rapidly deployed to provide cover for important military and socially significant facilities against strikes by drones and cruise missiles. It is already known that Pantsir air defense systems will be delivered to military divisions and units, these complexes can be transported over hundreds of kilometers and immediately used for combat tasks.

"The southern strategic direction is becoming one of the most important ones along with the western line," military expert Alexey Leonov notes. "The creation of such units is a justified measure. The Pantsirs are above all designed to protect strategically important objects," he said, noting that their arrival can significantly beef up the nation’s air defense. "It is tense now in the South. NATO ships with cruise missiles have entered the Black Sea. A US carrier strike group is located in the Adriatic allegedly to hold drills. A carrier strike group always includes planes and ships with cruise missiles," the expert pointed out, noting that one shouldn’t forget about US-NATO allies in the region, such as Turkey and Romania.

The Southern Military District covers the Middle Asian direction, the Black Sea region and the Russian-Ukrainian border - it’s hard to call these territories calm, military expert Vladislav Shurygin reiterated. "The Pantsirs are one of the most effective means against drones," he told Izvestia, noting that the systems are also highly mobile and may be transported both by rail and air.

TASS is not responsible for the material quoted in these press reviews