Vladimir Putin's energy gambit fizzles as warm winter saves Europe

Russian President Vladimir Putin’s plans to squeeze Europe by weaponising energy look to be fizzling at least for now. 

Mild weather, a wider array of suppliers and efforts to reduce demand are helping, with gas reserves still nearly full and prices tumbling to pre-war levels. Europe is likely already through the worst of the crisis. China’s Covid woes blunting competition for LNG cargoes would take the edge off inflation, stabilise Europe’s economic outlook and leave the Kremlin with less leverage over Ukraine’s allies. 

While a cold snap or delivery disruptions could still throw energy markets into disarray, optimism is growing that Europe can now make it through this winter and next.

The crisis has already cost Europe $1 trillion. Governments have responded with more than $700 billion in aid. 

In Germany, storage facilities are 91 per cent full, compared with 54 per cent a year ago. Consumption is expected to be 16 per cent below five-year average levels throughout 2023, Morgan Stanley said in a report.

Russia bombs Ukraine

Russia’s bombing of regions in eastern Ukraine killed at least two people, officials said on Sunday, after Moscow ended the Christmas ceasefire. Two thermal power plants, Zuhres and Novyi Svit, in part of Ukraine’s Donetsk region controlled by Russian forces were damaged in a rocket attack by the Ukrainian army. 

Moscow asks for Soviet-era cruiser from China

A leader of the Russian Liberal Democratic Party, Sergey Karginov suggested that the Russian government buy back the Soviet aircraft carrier that Ukraine had previously sold to China, the Eurasian Times reported. “After the collapse of the USSR, Ukraine preferred to sell it for a price of a few bottles of vodka or price of scrap metal. I propose that Russia buy this aircraft carrier from China and make it the flagship of the Black Sea Fleet.”

600 Ukranian soldiers killed in rocket attack, says Russia
 

Russia’s defence ministry said on Sunday it had killed more than 600 Ukrainian servicemen in a massive rocket strike on two buildings in eastern Ukraine temporarily housing Ukrainian forces, in retaliation for the New Year’s Day rocket attack on Makiyivka that killed at least 89 Russian troops. Reuters could not immediately verify the defence ministry’s assertion.

The was no immediate response from Ukraine. The ministry said in a statement that it had used what it called reliable intelligence to target the Ukrainian troops. It said more than 700 Ukrainian troops had been housed in one hostel and over 600 in another. If true, it would be the single largest loss of Ukrainian troops since Russia invaded on February 24 last year.
Reuters