Ukrainian armed forces hit oil refinery in Rostov region supplying Russian army, Ukraine wins economic war against Russia – The Economist, Putin said he was ready to hit Kyiv with an intercontinental missile “Oreshnik” for a “technological duel” with NATO
Ukrainian armed forces hit an oil refinery in the Rostov region that supplies the Russian army
On the night of December 19, the Naval Forces of the Armed Forces of Ukraine and the Security Service of Ukraine, in cooperation with other units of the Defense Forces, struck the “Novochakhtinsk oil refinery” in the region of Rostov. This refinery, the only one in the region, supplies fuel to the Russian army.
The General Staff of the Armed Forces of Ukraine stated:
“During the night, the forces and means of the Naval Forces of the Armed Forces of Ukraine and the Security Service of Ukraine, in cooperation with other components of the Defense Forces, dealt a blow to the infrastructure and production capabilities of the joint stock company “Novochakhtinsk Oil Products Refinery”, located in the Rostov region, Russia.
Its facilities can process up to 7.5 million tonnes of oil per year. The refinery’s main products are heating oil, heating fuel, marine fuel, diesel as well as straight-run gasoline.
A fire was noted on the site, in particular on the primary oil processing installation ELOU-AVT-2.5. Details regarding the extent of the damage are still being clarified.
The Defense Forces continue their efforts to weaken the military-economic potential of the Russian occupiers and force Russia to end its armed aggression against Ukraine. This is only the beginning,” the statement said.
Ukraine wins economic war against Russia – The Economist
Ukraine’s economy remains 25% below its 2021 level. Yet for the first time since the large-scale invasion began in 2022, it is outperforming the Russian economy on some key indicators.
This is what The Economist writes.
The National Bank of Ukraine forecasts GDP growth of 4% in 2024 and 4.3% in 2025. The currency is stable and the interest rate, set at 13.5%, is the lowest in 30 months .
By comparison, in Russia, rates could soon reach 23% to slow the fall of the ruble. Banks are fragile and GDP growth is only expected to be 0.5 to 1.5% in 2025.
However, Ukraine faces major challenges: the escalation of war, dwindling internal resources and the potential impact of Donald Trump.
In July 2023, Russia refused to extend the grain deal. Ukraine responded by opening its own maritime corridor, supported by a deterrence campaign with drones and missiles. This made it possible to revive not only exports of cereals, but also those of metals and minerals, the country’s second largest export item.
These measures, combined with Western support, prevented Russia from depriving Ukraine of the resources and morale needed to continue the fight. However, a new phase is beginning, where the economy faces even greater challenges: shortages of energy, labor and financing.
In December, Ukraine increased electricity import capacity from the EU by almost 25%, reaching 2.1 GW.
Many food producers transform their production waste into biogas for their own needs. Industrial companies combine these sources with imports to avoid catastrophic cuts.
Continued repairs to the energy system are expected to keep Ukraine’s average electricity deficit at 6% of total demand in 2025 and 3% in 2026, according to Andriy Pyshnyi, president of the National Bank of Ukraine.
Another challenge is the lack of labor. Since 2022, mobilization, migration and war have reduced the workforce by more than a fifth, to 13 million people. Demand remains strong, with 65,000 job offers per week, compared to only 7,000 at the start of the war. However, there are only 1.3 applications per position, compared to two in 2021.
The Ministries of Economy and Defense seek to balance mobilization: how to distribute resources for the future of the country. So far, civilian leaders have avoided giving in to maximum demands from the military, even though it hurts the front.
Even sectors considered critical can now only protect half of their employees from mobilization.
Another problem is the lack of funding. Small farms and businesses struggle to borrow enough to finance their operations. Long-term investments are almost impossible.
Rising operating costs have reduced profit margins. Domestically oriented companies pass on some of these costs to consumers, thereby increasing inflation. Exporters, on the other hand, who compete in global markets, cannot afford it.
The state also spends much more than it receives. In 2025, the budget deficit is estimated at around 20% of GDP. Nearly the entire deficit — $38 billion — would have to be covered by external financing.
In June, G7 countries approved a $50 billion aid plan, which Ukraine will repay with interest generated from frozen Russian assets, estimated at 260 billion euros ($273 billion) in Western countries. However, US support for this plan is not guaranteed.
Ukraine could probably survive the year 2025 without American funding. With the 18 billion euros already approved by the EU, contributions from other G7 countries could fill the gap, according to Dimitar Bogov of the European Bank for Reconstruction and Development.
Ukraine also has substantial foreign exchange reserves, which are expected to reach $43 billion by the end of 2024, which would cover five months of imports. However, without US funding, Ukraine could face a financial collapse in 2026.
Putin says ready to hit Kyiv with Oreshnik missile in ‘technological duel’ against NATO
Russian dictator Vladimir Putin proposed to Western countries and Ukraine to designate a target in Kyiv, which Russia would strike with an Oreshnik missile as part of a “technical experiment”.
This was what Putin said during the so-called hotline, combined with the big annual press conference, on Thursday, December 19.
According to the dictator, Western experts believe that missiles like the Oreshnik are easily intercepted, and therefore he proposed conducting a “cynical experiment.”
“To this end, it would be possible to designate a target in Kyiv, where the West could concentrate all its air defense forces, and Russia would strike a blow. We are ready for such an experience,” the war criminal said.
He stressed that it would be a “high-precision technological duel”. “This would be useful both for us and for the Americans,” Putin added.
Recall that on November 21, Russia attacked Ukraine for the first time with an Oreshnik intercontinental ballistic missile. The latter targeted the town of Dnipro and caused minor damage. That same day, Putin called the use of a ballistic missile with a non-nuclear hypersonic warhead a “response to attacks with British and American weapons.”
According to the Main Intelligence Directorate of Ukraine (HUR), on November 21, the Russian aggressor launched a ballistic missile from the Kedr complex in the direction of Dnipro. On November 28, Russian dictator Vladimir Putin publicly threatened to strike “decision-making centers” in Kyiv with Oreshnik missiles.
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