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outburst! What happened when there was an explosion in Russia and an attack on an oil refinery in Ukraine? The United States expanded sanctions, the European Union followed suit, and the Ukrainian government: GDP has lost more than half

author:Securities Times

In recent days, the Russian-Ukrainian negotiations have made some progress, but the conflict between the two sides is still continuing.

On the morning of April 3, Russian forces used sea- and space-based precision guidance weapons to destroy an oil refinery and three facilities for storing fuel and lubricants near the Ukrainian city of Odessa. The facility supplies fuel to Ukrainian troops in the direction of Nikolaev.

On the same day, an explosion also occurred in Tomarovka, Belgorod Oblast, Russia, followed by fragments falling. Two days earlier, on April 1, Governor Gladkov of Russia's Belgorod Oblast reported on social media that two Ukrainian helicopters had flown into Russia at low altitude that morning and attacked an oil depot in Belgorod, the capital of the oblast. On April 2, the Russian Federation's Reconnaissance Commission said it had launched a criminal investigation into the attack on oil depots by Ukrainian troops.

In the context of the Russian-Ukrainian conflict, the price of natural gas in Europe has continued to rise. According to CCTV News, after Russia issued a "ruble settlement order" for natural gas exports, Germans who were worried about the gas supply were cut off began to snap up and hoard firewood.

According to Russian media reports quoted by Xinhua News Agency, Latvian Gas Transport Company said that since April, Russia's natural gas supply to the three Baltic countries of Latvia, Lithuania and Estonia has been interrupted.

Russian forces destroy Ukrainian oil refineries

According to CCTV news, the Russian Defense Ministry issued a notice saying that the Russian military used sea-based and space-based precision guidance weapons on the morning of April 3 to destroy an oil refinery and three facilities storing fuel and lubricants near the Ukrainian city of Odessa. The facility supplies fuel to Ukrainian troops in the direction of Nikolaev.

On the same day, the Odessa city government said through social media that the city was attacked by Russian armed forces, and some of the incoming missiles had been intercepted. The attack caused fires in several areas of the city. The Odessa Municipality calls on residents to be quiet and not to panic.

At 4:25 a.m. on the same day, an air defense siren was issued from the Odessa region and the capital, and the alarm was lifted at 6:43 a.m.

An explosion occurred in Tomarovka, Belgorod Oblast, Russia

It is worth noting that on April 3, an explosion also occurred in Tomarovka, Belgorod Oblast, Russia. The head of Yakovlevsky District in Russia's Belgorod Oblast said that an explosion occurred in Tomarovka, Belgorod Oblast, followed by fragments falling without casualties.

Two days earlier, on April 1, a fire broke out at an oil base in Belgorod, western Russia, and eight oil storage tanks caught fire. Russian Belgorod Oblast Governor Gladkov said through social media that the cause of the fire was that two Ukrainian helicopters flew into Russia at a low altitude that morning and launched an attack.

On April 2, the Russian Federation's Reconnaissance Commission said it had launched a criminal investigation into the attack of Ukrainian troops on oil depots in Russia's Belgorod region. According to the investigation, two Ukrainian helicopters illegally invaded Russian airspace and carried out at least four air strikes on oil depots in the Belgorod area.

According to Xinhua News Agency, Ukrainian President Zelenskiy evaded a question from the media on April 1 about whether Ukraine had launched a helicopter attack on an oil depot in Russia, responding that "no discussion is given." In an interview with the Fox News Channel in the United States, Zelenskiy refused to answer positively whether the Ukrainian side attacked the Russian oil depot. "Sorry, I will not discuss any orders I have given as commander-in-chief of the army, as the leader of the country. There are some things I will only communicate with the Ukrainian armed forces. ”

The Associated Press reported that if the Russian designation is true, it will be the first known ukrainian aircraft intrusion into Russian airspace since the outbreak of the Russian-Ukrainian conflict in late February.

Worried about the energy outlook, Germans hoarding firewood for the winter

Russian President Vladimir Putin signed a presidential decree on March 31 on the settlement of gas trade in rubles with "unfriendly" countries and regions. The new rules came into effect on April 1.

In the face of Russia's "ruble settlement order", European leaders said they would not abide by it, insisting that Russia's move violated the relevant contract terms. As the settlement deadline approaches, governments and energy companies in these countries are joining forces to discuss countermeasures.

However, after Russia issued a "ruble settlement order" for gas exports, Germans who were worried about the lack of gas supply began to snap up and hoard firewood.

According to CCTV News, at a firewood production plant in Berlin, a large number of local residents have come to buy firewood. It is understood that these firewood are mainly used to prepare for heating in the next winter. As the Russian-Ukrainian conflict continues and gas prices climb in Europe, Germans fear a possible tight gas supply next winter.

With the hot sale of firewood, heating stoves that can burn firewood are also sought after in Germany. Heating stove suppliers say it's hard to keep up with orders due to limited supply.

According to the data, Germany's gas demand in 2021 is about 100 billion cubic meters, of which about one-third is industrial gas. Russian gas, which accounted for 55 percent of Germany's total natural gas imports in 2021, fell in the first quarter of this year but still accounted for 40 percent.

German industry warns that the russian gas supply cut could have devastating consequences

After Russian President Vladimir Putin issued a gas "ruble settlement order", although Germany firmly refused to use rubles to pay directly, it still triggered concerns in the industry that Russian natural gas supply might be cut off.

According to CCTV News, Martin Brudmüller, CEO of the German chemical company BASF Group, warned on April 1 local time that if Russia's gas and oil supply is interrupted for a long time, it will cause unprecedented economic losses: "This may plunge the German economy into the worst crisis since the end of World War II." ”

Mesari Becker, a federal government consultant and construction and energy expert, also expects devastating consequences: "If the raw materials industry comes to a standstill, there will be an unstoppable and difficult-to-repair domino effect," she said, noting that intensive manufacturing industries, including chemicals, steel, cement and others, are highly dependent on natural gas, while nearly 500,000 jobs in the major construction industry will be affected. Messari-Becker called on politicians to mobilize all national reserves and, if necessary, consider extending the life of traditional power plants, such as coal-fired power plants.

A spokesman for the Salzgitter Steel Group said directly: "Without natural gas, it is impossible to produce steel. ”

Russia: will not immediately "cut off" the gas on Europe, agricultural products only for "friends"

The Ruble Settlement Order has come into effect, but Russia's gas supply to Europe has not stopped. Russian Presidential Press Secretary Peskov explained that the Russian side will not immediately "cut off gas" on Europe, because the cost of natural gas supply starting on the 1st should be settled in the second half of April or May.

While Russia continues to send gas to Europe, Russian media reported that Gazprom is considering the possibility of a "gas outage" to Europe and assessing the impact of the move.

According to Xinhua News Agency, the sanctions announced by many Western countries against Russia involve many areas. The Russian side has drawn up a list of "unfriendly" countries and regions that have imposed sanctions on Russia, including the United States, European Union member states, the United Kingdom, Ukraine, Japan and South Korea.

Medvedev, vice chairman of the Russian Security Conference, said on social media on the 1st that Russia may only export agricultural products to "friendly" countries and regions. "We're going to only provide food and produce to our friends," he said, "and luckily we have a lot of (friends) and they don't have it in Europe or North America at all." ”

Vyacheslav Volokin, chairman of the Russian State Duma, said on March 30 that after natural gas, commodities settled in rubles should be expanded to crude oil, grains, metals, fertilizers, coal and timber.

On April 3, local time, Russian presidential press secretary Peskov said that Russia is now under the most stressful sanctions in history. The sanctions imposed by Western countries on Russian President Vladimir Putin have gone beyond reasonable scope, which no one expected. The credibility of the dollar and the euro is being eroded, and many countries are beginning to doubt the reliability of the dollar and the euro and are beginning to settle in rubles instead. The ruble settlement system will be expanded in the future to other Russian exports.

Profiting from the conflict, U.S. LNG exports hit a record

According to CCTV News, the United States is the initiator of the Russian-Ukrainian conflict and continues to profit from the conflict. The latest preliminary data provided by The United States' Refinitor Company shows that in the past March, U.S. LNG exports increased by nearly 16% month-on-month, a record high. Among them, natural gas exports to Europe account for the majority.

U.S. LNG exports were about 7.43 million tonnes in March, up from 6.4 million tonnes in February. Europe has been the largest destination for U.S. LNG exports for four consecutive months, accounting for about 65 percent of exports.

On March 25, the European Union and the United States unveiled an energy cooperation plan that will expand U.S. exports of LNG to the EU. The two sides said in a joint statement that the cooperation plan will work to help the EU market obtain at least 15 billion cubic meters of liquefied natural gas this year, which is expected to increase in the future.

At present, energy prices in Europe are soaring, posing a serious threat to energy security. But analysts believe that switching to U.S. LNG imports will cost Europe dearly. Mick Wallace, a member of the European Parliament, has recently publicly stated that even if Europe's energy dependence on Russia is to be changed, it should not be simply replaced by dependence on the United States, and he angrily accused the United States of natural gas as "dirty".

The United States has expanded sanctions against Russia, and the European Union is considering a new round of sanctions against Russia

The U.S. Department of Commerce announced on April 1 that it has added a total of 120 entities from Russia and Belarus to the sanctions list, including military-related companies and research institutions. These entities will not be able to apply for special licenses to import products from the United States.

According to Reuters, the U.S. White House believes that sanctions will help prevent technology and software from entering the military branches of Russia and Belarus.

According to Xinhua News Agency, on April 2, local time, the European Commission's commissioner in charge of economic affairs, Gentiloni, said that the United States and the European Union are currently forming a joint working group to prevent sanctioned Russian companies and individuals from transferring assets through other channels, thereby circumventing sanctions.

Gentiloni also pointed out that the recent US proposal to impose new restrictions on technology and supply chains related to the Russian military industry is also a path that the EU may follow, and the European Commission is expected to formally propose a new round of sanctions next week. However, he said that "these new measures will not affect Russia's energy sector".

It is understood that Russian energy plays an important role in the energy demand of European countries, and about 40% of the natural gas needed by the EU is currently imported from Russia.

In addition, according to CCTV news, on the 3rd local time, German Foreign Minister Berberk announced the implementation of further sanctions against Russia, and said that it would continue to provide military support for Ukraine.

On the 3rd local time, Popov, deputy secretary-general of the Russian National Security Council, said that while the United States forced European sanctions against Russia, the amount of Russian oil purchased by itself increased by 43% in the recent week, reaching 100,000 barrels per day. But the United States did not allow Europe to do so.

The Ukrainian government hopes to obtain $400 billion from frozen Russian assets for national reconstruction

On April 2, local time, the Ukrainian president's economic adviser said that according to the Ukrainian government's assessment, the losses of the Ukrainian side in military operations were about 1 trillion US dollars. The Ukrainian government wants $400 billion from frozen Russian assets for national reconstruction.

On April 3, Ukraine's Ministry of Economy said that in the context of Russia's military action, Ukraine's capital investment fell by $54 billion, and the gross domestic product (GDP) loss in 2022 was at least $112 billion, about 50% of total GDP.

Russian-Ukrainian negotiations "close to reaching an agreement"?

On April 2, local time, Alahamiya, head of the Ukrainian delegation to the Russian-Ukrainian negotiations, said in an interview with the media that Ukraine and Russia are close to reaching an agreement, but there are still differences on the Crimea issue.

According to Arahamiya, the Russian side believes that the draft document is sufficiently well-developed and that the working group is preparing the agenda for a possible meeting between the presidents of the two countries. Arahamiya believes that a meeting between the presidents of Ukraine and Russia is highly likely to be held in Istanbul, Turkey.

However, in response to the above remarks, Mezinsky, head of the Russian delegation to the Russian-Ukrainian negotiations, responded on April 3 that Arahmia's statement on the preparation of the draft treaty for the summit meeting between the two countries was too optimistic.

According to CCTV News, Mezinski said that Alahamia, a member of the Ukrainian delegation, said yesterday that the Russian side accepts the Ukrainian side's position except for the Crimean issue. But in fact, the issues agreed upon by the two sides include Ukraine's neutral, nuclear-weapon-free and non-aligned status; the refusal of foreign countries to establish military bases, garrison troops and deploy any form of large-scale offensive weapons in Ukraine; the prohibition of research and manufacture of weapons of mass destruction; the need to consult with security states, including Russia, before holding military exercises; and the establishment of an international security assurance system for a neutral Ukraine, all of which russia has advocated since 2014.

"We understand that Arahamiya's statements are aimed at Ukrainians, and if he calls these Ukrainian positions, then we have no objections." Mezzensky reiterated that Russia's position on Donbass and Crimea remains unchanged. He noted that Ukrainian diplomatic and military experts were far behind in the validation of the agreed text of the articles, and that Arahmia's position on the readiness of the draft treaty to be submitted to the summit meeting of the two countries was therefore too optimistic.

On April 3, local time, Russian presidential press secretary Peskov said that Putin's meeting with Ukrainian President Zelenskiy would only be carried out after the preparation of the text of the specific treaty between the two countries was completed. The eventual signing of the post-negotiated treaty would be an important step towards stabilization of the situation.

Editor-in-charge: Yang Yucheng

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