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Press review: Russia may revise Ukraine talks post attack and China launches Taiwan drills

Top stories from the Russian press on Tuesday, December 30th

MOSCOW, December 30. /TASS/. Russia may adjust its Ukraine negotiating position after a drone attack on the president’s state residence; Netanyahu seeks Trump’s approval for new strikes on Iran and Hamas; and China launched large-scale drills around Taiwan after a record US arms sale. These stories topped Tuesday’s newspaper headlines across Russia.

 

Izvestia: Russia signals possible revision of Ukraine negotiating position after drone attack on presidential residence

Russia’s negotiating position on the settlement in Ukraine may be revised in response to what Moscow describes as state-sponsored terrorism carried out by Kiev, President Vladimir Putin told Donald Trump during their second phone call within a single day. On the night of December 29, Ukrainian armed forces attempted an attack on the Russian president’s state residence in the Novgorod Region using drones. According to Presidential Aide Yuri Ushakov, the US leader was shocked by the incident, adding that it would also influence Washington’s approach to its engagement with Kiev. Vladimir Zelensky has previously resorted to such methods either to derail negotiations or to demonstrate his true approach to a peaceful settlement, Russia’s Foreign Ministry told Izvestia. The move comes after a meeting in Florida just a day earlier between US and Ukrainian delegations, following which both sides made relatively optimistic statements.

The attack on the state residence is a continuation of an already well-established trend, the Russian Foreign Ministry’s ambassador-at-large for crimes committed by the Kiev regime, Rodion Miroshnik told Izvestia.

"He [Zelensky] has previously used these methods to disrupt negotiations or to demonstrate his real approach to a peaceful settlement. <…> In this case, we are talking about an attempt to strike a state residence — that is, a government facility — which carries a more symbolic meaning and demonstrates the direct approach of the Ukrainian regime. Through his actions, he shows that he is neither ready nor willing to conduct any negotiations on a peaceful settlement," Miroshnik emphasized.

Such actions by the Ukrainian armed forces are driven by setbacks on the battlefield, First Deputy Chairman of the State Duma Committee on Defense Andrey Krasov told Izvestia.

"This is happening solely because they cannot achieve success on the battlefield. They are using these methods in an attempt to intimidate the population of Russia," he said.

Political scientist Ivan Loshkarev told the newspaper that while Ukraine continues to bargain, the situation could change so much that no concessions from Kiev would be needed at all. To date, potential security guarantees for Ukraine remain undefined — including who would provide them and in what format.

 

Izvestia: Netanyahu seeks Trump’s approval of new strikes on Iran and Hamas

At least five major issues, including the peace process in the Gaza Strip, are on the agenda of talks between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, who has arrived in the United States on a visit for the fifth time this year. One of Netanyahu’s key objectives is to obtain the US president’s approval for new strikes on Iran’s nuclear facilities and on Hamas, according to media leaks. Experts told Izvestia that Trump’s and Israel’s prime minister’s approaches to a peaceful settlement in Gaza could differ.

"Israel is not fully satisfied with the outcome of the June war, as it had hoped to inflict far greater damage on Iran and to trigger the collapse of the system from within Iranian society. Since neither of these goals was achieved, Netanyahu’s cabinet is now trying to push for revanche," expert on the Middle East Leonid Tsukanov told Izvestia.

As for the United States, there is still no clear-cut position in Washington on renewing a conflict with Iran, the expert noted.

"On the one hand, Trump is trying to distance himself from Middle Eastern issues, but at the same time he does not want to leave Israel to face its challenges alone. Washington is also interested in Netanyahu retaining the prime minister’s post, since the opposition is more sympathetic to the Democrats," Tsukanov continued.

At the same time, US support is not strictly necessary for Israel to decide to launch strikes against Iran, according to Ivan Bocharov, program manager at the Russian International Affairs Council.

"In Israel, there is a belief that a window of opportunity is now opening to resolve the Iranian issue. The motivation for strikes is not so much the missile or nuclear threat as the fact that, following the fall of the Assad regime in Syria, Hezbollah and the so-called ‘axis of resistance’ as a whole have been weakened. Netanyahu wants to further weaken Iran and undermine its military and political potential. Israel perceives Iran’s policies as an existential threat to the Jewish state. Therefore, the weaker Iran is under the current ruling regime, the better it is for Israel," the expert said.

"Israel wants to expand its permanent presence in the Palestinian enclave, including by restoring some settlement outposts, while Trump is seeking to de-escalate the conflict as much as possible and consolidate a new status quo. Renewing tensions around Gaza is not currently part of the Republicans’ plans," Tsukanov believes.

 

Vedomosti: China launches large-scale military drills around Taiwan following record US arms sale

China launched large-scale military exercises around Taiwan on December 29, dubbed Justice Mission-2025, which effectively became a response to the largest single US arms sale to the island, totaling $11.1 bln, the approval of which by the US State Department was announced on December 18. According to Shi Yi, an official spokesperson for the Eastern Theater Command of the People’s Liberation Army of China (PLA), the new drills are focused on tasks including practicing maritime and aerial combat operations, achieving comprehensive superiority over a potential adversary, blocking key military ports and zones, and deterring external forces. Experts interviewed by Vedomosti believe that China is signaling a strategy of stepped-up military pressure short of war, leveraging growing conventional and nuclear capabilities to deter US involvement.

The PLA is showcasing its new capabilities, including the deployment of Type 075 universal amphibious assault ships, Vasily Kashin, Director of the Center for Comprehensive European and International Studies at the Higher School of Economics, told the newspaper. However, China’s core strategy envisions resolving the Taiwan issue through very strong military pressure, but without unleashing a full-scale war, the expert believes.

Overall, Kashin noted, the balance of power has shifted significantly in recent years, and China now feels even more confident. This has been aided by Beijing’s analysis of the experience of the military operation in Ukraine and by the fact that China currently surpasses the rest of the world combined in terms of drone production capacity.

In addition, Beijing has substantially expanded its nuclear forces, which sharply limits the scope for countering it, the analyst continued. China has also seen rapid growth in military technology and equipment capabilities, while combat training has become more sophisticated. Taking all this into account, the United States may simply be reluctant to come to Taiwan’s defense, meaning that China has little reason to rush, Kashin said.

Through these exercises, China is indicating its future strategy: it does not intend to strike the island, which it considers its own territory, Alexey Maslov, Director of the Institute of Asian and African Studies at Moscow State University, noted. Instead, Beijing aims to enforce a full blockade of Taiwan, which would deal a significant blow to the island’s economy. In the expert’s view, China’s current steps represent an entirely adequate response under conditions of strategic ambiguity demonstrated by the US through its arms supplies to Taiwan.

 

Rossiyskaya Gazeta: Experts forecast further decline in Russian gas exports to Europe in 2026

In 2026, Russian gas exports to Europe are once again expected to decline. The European Union has already adopted a plan for a complete phaseout of Russian gas supplies. An embargo on purchases of Russian liquefied natural gas (LNG) under short-term contracts will take effect on April 25, 2026, followed by a ban on pipeline gas imports starting June 17. Supplies under long-term contracts may continue until 2027, Rossiyskaya Gazeta writes.

Most likely, another drop in exports will again lead to a reduction in gas production in Russia. Production peaked in 2021 at 762.3 bln cubic meters. The lowest level was recorded in 2023, at 638 bln cubic meters, after which output rose to 685 bln cubic meters in 2024. However, in 2025, transit of Russian gas to Europe via Ukraine was halted, and despite reaching maximum supply levels to China via the Power of Siberia pipeline, production is expected to decline to roughly 673-680 bln cubic meters by year-end.

According to Valery Andrianov, Associate Professor at the Financial University under the Russian Government, total gas production in Russia could increase by 2-3% compared with 2025 due to rising domestic demand. In his view, the likely cessation of pipeline gas supplies to Europe would not have any significant impact on Russia’s overall gas balance, since in 2025 such exports amounted to only 15-16 bln cubic meters - almost a "statistical error" relative to total production. As for LNG, shipments are already being diverted to other markets: by the end of 2025, Russia ranked second after Qatar in LNG supplies to China, overtaking Australia. Other promising export destinations are also likely, the expert noted.

Maxim Malkov, partner at Kept and head of its oil and gas advisory practice, is less optimistic. If gas supplies to Europe via TurkStream are completely halted, gas production in Russia will almost certainly decline, since it would be impossible to compensate for more than 16 bln cubic meters on the domestic market within a single year.

Geopolitics will have a major influence on the gas market, Oleg Abelev, PhD in economics and head of the analytical department at the investment company Rikom-Trust, told the newspaper. New sanctions are possible, particularly against LNG projects, he noted. In addition, gas production and exports in Russia will be affected by demand dynamics in Asia, primarily in China, which will depend on the country’s economic growth and weather conditions. It is clear that in 2026 the Russian gas industry will enter a phase of winding down all supplies to Europe and continue reorienting exports toward Asia, the expert concluded.

 

Vedomosti: Analysts expect US dollar to weaken further in 2026

The economic policies of US President Donald Trump, a likely interest-rate cut by the Federal Reserve amid more restrained policies by other major central banks, rising government debt, as well as investors’ increased appetite for risk and investments in emerging markets will continue to weigh on the US dollar in 2026, experts surveyed by Vedomosti believe. The trend is expected to be particularly pronounced in the first half of the year, although analysts note that by the end of next year the US currency could regain some of its lost ground.

Experts also cite additional factors behind the dollar’s weakening, including Trump’s pressure on the Federal Reserve over interest-rate policy and the escalation of trade wars.

By exerting public pressure on the Federal Reserve, the US president has undermined confidence in the national currency and in the authorities’ ability to fight inflation, stock market expert at BCS World of Investments Dmitry Babin told Vedomosti. "Trump has made it clear that he expects the new Fed chair, who will replace the current one in May 2026, to pursue more aggressive interest-rate cuts and to be almost fully subordinate to the US president," Babin noted.

Ksenia Bondarenko, associate professor at the Department of World Economy at the Faculty of World Economy and International Affairs of the Higher School of Economics, noted a decline in investor confidence in the dollar and increased demand for alternative safe-haven assets, such as gold. She emphasized that global capital is increasingly flowing out of the dollar and into other assets, including precious metals.

In addition, Trump’s policies raise doubts about the resilience of the US economy and its currency. Traditionally, the dollar is viewed as a low-risk asset, but as conditions change, investors seeking safety are increasingly turning to gold and other precious metals. Meanwhile, in pursuit of higher returns, investors are shifting toward assets in other developed or emerging economies, Kirill Seleznev, stock market expert at Garda Capital, told the newspaper.

All eight experts surveyed by Vedomosti believe that the dollar will also lose ground against the euro, albeit modestly. Among the key factors they cite are expectations of Federal Reserve rate cuts, trade wars, and rising US government debt levels.

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