Daily overview — Summary report, July 28
A map of the approximate situation on the ground in Ukraine as of 00:00 UTC 28/07/22.
— War Mapper (@War_Mapper) July 28, 2022
There have been no notable changes to control since the last update. pic.twitter.com/PBRmr53aCJ
According to military expert Stanislav Haider, as of July 26,
“It seems that yesterday the Russians decided to go head-on in several directions and attack our positions with artillery in order to push the front line away from Donetsk and prepare for an attack on Bakhmut, Kostiantynivka,” Haider says.Ukrainian troops launched a counterattack north of Sloviansk, pushing the Russians back several kilometers to the north. There is also some advancement of the Ukrainian Armed Forces in the south of Donetsk oblast. Kharkiv Oblast. Near Pasyka, Russian scouts tried to expose the positions of Ukrainian troops, were eliminated. The assault on the positions of the Armed Forces of Ukraine in the area of Prudianka and Udy was successfully repelled. Russian forces have been at a standstill for weeks. Russians are short on forces in the Izium direction, redeploying their units from line to line. But unfortunately, they continue to shell peaceful cities. Kherson Oblast. Ukrainians continue to advance at the Inhulets. Yesterday, the Ukrainian Armed Forces announced the capture of two settlements. There are reports that the Russians have several sections of pontoon crossings in the area of the Kherson seaport and near the road bridge over the Koshova River. Zaporizhzhia Oblast. Ukraine has small successes in Lobkove-Piatykhatky and Nesterianka sectors as Russians continue to transfer forces there from Donetsk Oblast. There is information about the transfer of a new battalion-tactical group from Donetsk. The work of Ukrainian artillery. Horlivka, Donetsk Oblast, saw a Russian ammunition depot and military base destroyed; minus one Russian base in Shymshynivka, Luhansk Oblast; bases were also destroyed at Chornobayivka, Chornianka (Kherson Oblast) and in Donetsk, while another warehouse was eliminated in Beryslav district, Kherson Oblast.
According to military expert Stanislav Haider, as of July 28,
Donetsk Oblast. Berestove and the directions of Volodymyrivka, Mariinka, Siversk, Soledar saw the Russian assaults repelled by Ukrainian forces. The situation is very difficult in the direction of Bakhmut, but the Ukrainian army is holding defense. Assaults near Mazanivka were also repulsed. In the direction of Vidrodzhennia-Vershyna, the Russians have partial success having gained a foothold southeast of the settlement of Vershyna. Russians attacked Avdiivka several times yesterday, including through the premises of the coke chemical plant, but the Ukrainian troops repelled them. “It seems that yesterday the Russians decided to go head-on in several directions and attack our positions with artillery in order to push the front line away from Donetsk and prepare for an attack on Bakhmut, Kostiantynivka,” Haider says. Ukrainian troops launched a counterattack north of Sloviansk, pushing the Russians back several kilometers to the north. There is also some advancement of the Ukrainian Armed Forces in the south of Donetsk oblast. Kharkiv Oblast. Near Pasyka, Russian scouts tried to expose the positions of Ukrainian troops, were eliminated. The assault on the positions of the Armed Forces of Ukraine in the area of Prudianka and Udy was successfully repelled. Russian forces have been at a standstill for weeks. Russians are short on forces in the Izium direction, redeploying their units from line to line. But unfortunately, they continue to shell peaceful cities. Kherson Oblast. Ukrainians continue to advance at the Inhulets. Yesterday, the Ukrainian Armed Forces announced the capture of two settlements. There are reports that the Russians have several sections of pontoon crossings in the area of the Kherson seaport and near the road bridge over the Koshova River. Zaporizhzhia Oblast. Ukraine has small successes in Lobkove-Piatykhatky and Nesterianka sectors as Russians continue to transfer forces there from Donetsk Oblast. There is information about the transfer of a new battalion-tactical group from Donetsk. The work of Ukrainian artillery. Horlivka, Donetsk Oblast, saw a Russian ammunition depot and military base destroyed; minus one Russian base in Shymshynivka, Luhansk Oblast; bases were also destroyed at Chornobayivka, Chornianka (Kherson Oblast) and in Donetsk, while another warehouse was eliminated in Beryslav district, Kherson Oblast.The General Staff’s operational update regarding the Russian invasion as of 06.00 am, July 28, 2022 is in the dropdown menu below.


- In the Kharkiv direction, artillery shelling was recorded in the areas of Kharkiv, Dementiivka, Mospanove, Sosnivka, Udy, Cherkaski Tyshky, Stary Saltiv, Tsirkuny, Protopivka, Zlochiv, Ruski Tyshki, Petrivka, Pryshyb, Prudyanka and Kalynove settlements. Russian forces launched an airstrike near Rusky Tyshky. To clarify the position of our troops and adjust the fire, the UAVs conducted aerial reconnaissance. [Yesterday, Russian forces fired artillery in the areas of Kharkiv, Rubizhne, Chuhuyiv, Tsupivka, Borshcheva, Zrubanka, Ivanivka, Ruska Lozova, Korobochkine, Bazaliivka, Pytomnyk.]
- In the Sloviansk direction, intending to find weak points in the defence of our units, the occupiers conducted assaults in the Dovhenke - Mazanivka and Pasika - Dolyna directions, without success. Artillery shelling was noted in the areas of Andriivka, Nortsivka, Bohorodychne, Chepil, Velyka Komyshuvaha, Petrivske and Husarivka settlements. [Yesterday, Russian forces used artillery for shelling near Adamivka, Pashkovo, Dolyna, Hrushuvaha, Shevelivka, Virnopilla, Krasnopilalla, Mazanivka, Nova Dmytrivka, and Brazhkivka.]
- [In the area of the settlement of Pasika, a reconnaissance group yesterday tried to expose the positions of our troops. Unsuccessfully. The group was neutralized.]

- Russian forces did not conduct active operations in the Kramatorsk direction. It shelled the districts of Zakitne, Verkhnyokamyanske and Tetyanivka with artillery. Made an airstrike near Serebryanka. [Yesterday, they launched artillery fire near Kryvya Luka, Spirne, Hryhorivka, Vyimka, Siversk, and Dronivka. Conducted an airstrike near Serebryanka. It conducted an assault in the direction of Bilohorivka-Verkhnokamianske, suffered losses and withdrew.]
- In the Bakhmut direction, Russian forces are trying to improve the tactical position, but our soldiers repelled the assaults in the Klynove - Bakhmut and Myronivskyi - Semihirya directions and forced the invaders to retreat. They have partial success in the direction of Vidrodzhennya - Vershyna, and are entrenched southeast of the settlement of Vershyna. The attempt to advance in the directions Volodymyrivka – Soledar and Streapivka – Soledar failed.
- Russian forces carried out artillery fire in the areas of the settlements of Bilohorivka, Mykolaivka, Nova Kamyanka, Vesela Dolyna, Kodema, Semihirya and New York. Airstrikes near Yakovlivka, Pokrovsky and Soledar. [Yesteday, artillery shelled the districts of Bakhmut, Soledar, Yakovlivka, Fedorivka, Bakhmut, Pokrovske, Vershyna, Zaytseve, Sukha Balka and Vesele. Airstrikes near Yakovlivka and Pokrovske.]
- [Ukrainian soldiers successfully repelled enemy assaults in the settlement of Berestove and the directions of Volodymyrivka - Soledar and Roty - Semihirya. Russian forces, with losses, withdrew.]
- Russian forces did not conduct active operations in the Avdiivka, Novopavlivka, and Zaporizhzhia directions. In order to strengthen the grouping of troops in the Zaporizhzhia direction, additional units are being transferred. [Yesterday, shelling was recorded, in particular, in the districts of Piskiv, Kostyantynivka, Avdiivka, and Gulyaipol. The occupiers carried out airstrikes near Novoandriivka, Kamianske and Olhivske.]
- Artillery shelling was recorded in the areas of Vremivka, Krasnohorivka, Mariinka, Novokalynove, Opytne, Stepnohirsk, Biloghirya, Volodymyrivka, Velyka Novosilka, Mykilske, Malynivka and Pervomaiske settlements. The occupiers used aviation near Avdiivka, Mariinka, Pavlivka, Kamianske and Maly Shcherbaky.
- In order to constrain our actions, Russian forces is shelling from artillery, MLRS and tanks in the areas of Trudolyubivka, Potemkyne, Posad-Pokrovske, Andriivka, Blahodatne, Ternivka, Chervona Dolyna, Prybuzke, and Luparevo. Made an airstrike near Novopetrivka.
- Ukrainian soldiers repulsed the assault in the direction of Bruskynske - Bilohirka. The occupiers suffered losses and withdrew.
Military Updates
Ukrainian Armed Forces confirmed that the Kherson bridge was destroyed in a high-precision strike, Ukrainska Pravda reports. “Ukrainian forces have conducted more high-precision missile strikes on the Antonivka Road Bridge in Kherson. Natalia Humeniuk, head of the joint coordination press centre for the Ukrainian Defence Forces stressed that the Ukrainian Armed Forces are controlling the logistical and transportation routes that have strategic significance for the Russian occupying forces in Kherson Oblast with firepower in order to prevent the Russians from replenishing their supplies. On the night of 26-27 July, posts about and videos of the strikes on the Antonivka bridge and the response of the Russian air defence systems in the Russian-occupied city of Kherson began to appear on social media. There was no confirmed information about the consequences of these strikes.On the morning of 27 July, Kyrylo Stremousov, a collaborator with the occupiers in Kherson Oblast, said that the Antonivka Road Bridge over the river Dnipro in Kherson had been damaged after an overnight attack by the Armed Forces of Ukraine. The Antonivka Road Bridge had already been struck and damaged earlier.”Сar with two collaborators blown up in Kherson
— Euromaidan Press (@EuromaidanPress) July 27, 2022
Two employees of the "police" of Russian occupation forces were injured around 12 am when car carrying them exploded. Russian "Most" writes that explosive device went off in the path of the police car https://t.co/cSVsyw67RE pic.twitter.com/oAnTpal33I

Russia captures power station, redeploys troops toward southern Ukraine, Reuters reports. “Russian forces took over Ukraine's second-biggest power plant and are conducting a "massive redeployment" of troops to three southern regions, a Ukrainian presidential adviser said, amid expectations of a Ukrainian counter-offensive. Russian-backed forces said on Wednesday they had captured the Soviet-era coal-fired Vuhlehirsk power plant intact, in what was Moscow's first significant gain in more than three weeks. The Russian redeployment to the south appeared to be a switch to strategic defence from offence, [Oleksiy Arestovych, an adviser to Ukrainian President Volodymyr Zelensky said], with troops sent to Melitopol, Zaporizhzhia and Kherson regions. Oleksiy Danilov, secretary of Ukraine's National Security and Defence Council, earlier tweeted that Russia was concentrating "the maximum number of troops" in the direction of the Kherson but gave no details.” The Russians have brought a lot of air defense equipment to the occupied territories, but Ukrainian reconnaissance “sees” them, Ukrainska Pravda reports, citing Yurii Ihnat, spokesperson of the Command of the Air Forces of the Armed Forces of Ukraine. "Unfortunately, the occupiers have a lot of air defence equipment. They have the whole Buk lineup (Buk-M1s, M2s and M3s), Tors, Pantsirs, S-300s, and S-400s. It’s already in the occupied territories. We have full information about the location of these systems. Our intelligence is working, we know where they are, so we are taking certain measures to counteract them."Russians are drawing additional forces to Kherson Oblast, but Ukrainians are aiming to liberate occupied territories, Secretary of National Sec Council said on UA TV. "I want to say that in any case –a week earlier or later–victory will be ours," he added https://t.co/yCckTpmIY3 pic.twitter.com/sGcUySPZvt
— Euromaidan Press (@EuromaidanPress) July 27, 2022

According to British Defence Intelligence, (last 48 hours):
- Ukraine's counter-offensive in Kherson is gathering momentum. Their forces have highly likely established a bridgehead south of the Ingulets River, which forms the northern boundary of Russian-occupied Kherson.
- Ukraine has used its new long-range artillery to damage at least three of the bridges across the Dnipro River which Russia relies upon to supply the areas under its control. One of these, the 1,000-metre-long Antonivsky bridge near Kherson city, was damaged last week. Ukraine struck it again on 27 July 2022 and it is highly likely that the crossing is now unusable.
- Russia's 49th Army is stationed on the west bank of the Dnipro River and now looks highly vulnerable. Similarly, Kherson city, the most politically significant population centre Occupied by Russia, is now virtually cut off from the other occupied territories. Its loss would severely undermine Russia's attempts to paint the occupation as a success.
- Russian private military company Wagner has likely succeeded in making tactical advances in the Donbas around the Vuhlehirska Power Plant and the nearby village of Novoluhanske. Some Ukrainian forces have likely withdrawn from the area.
- Russian Foreign Minister Sergei Lavrov is currently undertaking a tour of Egypt, Ethiopia, Uganda, and the Republic of the Congo. Russia will highly likely seek to exploit the visits to blame the West for the international food crisis and win the support of African states which have otherwise remained neutral about Russia’s invasion of Ukraine.
- Since 2014, Russia has made significant efforts to secure influence across Africa, with Wagner frequently deploying as one of its favoured tools of influence in the region. Russia probably primarily engages with Africa because it believes it will enhance the ‘Great Power’ identity Russia aspires to. Its secondary goals are probably to secure commodity concessions and to persuade African states to vote in line with Russia’s interests in international forums.
Losses of the Russian army
As of Thursday 28 July, the approximate losses of weapons and military equipment of the Russian Armed Forces from the beginning of the war to the present day:- Personnel – more than 40230 (+160),
- Tanks – 1742 (+4),
- Armoured combat vehicles – 3979 (+8),
- Artillery systems – 894 (+11),
- Multiple rocket launchers –MLRS - 258 (+0),
- Air defence means – 117 (+0),
- Aircraft - 222 (+0),
- Helicopters - 190 (+0),
- Automotive technology and fuel tanks – 2854 (+7),
- Vessels/boats - 15 (+0),
- UAV operational and tactical level – 729 (+3),
- Special equipment – 75 (+0),
- Mobile SRBM system – 4 (+0),
- Cruise missiles – 174 (+0)
⚰️russia's combat losses in Ukraine as of July 28
— VoxUkraine (@voxukraine) July 28, 2022
▪ 40230 killed soldiers (+160)
▪ 3979 APV (+8)
▪ 1742 tanks (+4)
▪ 894 artillery systems (+11)
▪ 222 aircraft and 190 helicopters
▪ 15 boats and cutters#StopRussia #StandWithUkraine pic.twitter.com/233LsiBctP
Humanitarian
Ukraine brings another 25 bodies of dead defenders home, Ukrainska Pravda reports, citing the press service of the Ministry of Reintegration of Temporarily Occupied Territories of Ukraine. “In accordance with the norms of the Geneva Convention, another 25 bodies of dead defenders have been repatriated to Ukrainian-controlled territory. On 19 July, Ukraine repatriated more than 45 bodies of dead defenders to Ukrainian-controlled territory. On 3 July, it became known that the bodies of more than 400 dead have been repatriated during the full-scale war with Russia.” Ukraine receives over 680,000 tonnes of humanitarian aid since the beginning of the war, Ukrinform reports. "Over the past week, more than 22,000 tonnes of humanitarian aid have been delivered to the territory of Ukraine. Since the beginning of the military aggression of the Russian Federation, more than 683,000 tonnes of humanitarian aid batches have arrived in Ukraine. We sincerely thank international, charitable, religious, non-governmental and private organizations, enterprises, and foundations, Deputy Head of the President’s Office Kyrylo Tymoshenko said at a briefing, Ukrinform reports. He also informed that more than 940,000 evacuees and internally displaced persons had been provided with accommodation as of today.”Russians demand Putin finds their soldier relatives MIA in Ukraine
— Euromaidan Press (@EuromaidanPress) July 28, 2022
They complain that they have to search for their occupier relatives themselves and prove that they are taken captive or died. But there is no demand to end the war in Ukraine https://t.co/VyuzK9etui
OHCHR recorded 12,272 civilian casualties in Ukraine as of July 25. 5,237 were killed (including 348 children) and 7,035 injured (including 560 children).10% of Ukrainian refugees don’t plan to go back - Rating poll
— Euromaidan Press (@EuromaidanPress) July 28, 2022
This share is gradually growing as the war drags on. Approximately 20% of Ukrainians had to move because of the war; in eastern Ukraine, this share rises to 58% https://t.co/H6jGLTncdt pic.twitter.com/AT98U3eIAb
Aide to Ukrainian President says that Russia is using ethnocide not only toward Ukrainians but also ethnic groups in Russia
— Euromaidan Press (@EuromaidanPress) July 28, 2022
Buryats die 275 times more than Moscow residents https://t.co/FrGN6PYZXw
️️Environmental
Agricultural exports through Danube ports will reach 1.3M tonnes in July, Ukrinform reports. “Exports of agricultural products through the Danube ports will come to 1.3 million tonnes in July, according to Ukraine’s Minister of Infrastructure Oleksandr Kubrakov. They [shipments from Danube ports] are growing. This means that there will be 1.3 million this month, the minister said. Kubrakov added that currently, approximately half of agricultural products are exported through Danube ports. Another 30% falls on the railway and 20% on road transport. According to the minister, if three ports in the Black Sea operate, then they will account for 70-80% of export volumes, as it was before the Russian full-scale invasion.”Seafarer shortage stands in way of the Ukraine grain corridor, Reuters reports. “Finding enough seafarers willing to sail ships stuck inside Ukraine's ports is set to pose a major challenge to the proposed grains corridor designed to ease an international food crisis. Henrik Jensen, managing director of Danica, which specialises in providing crew for ships in Ukraine and eastern Europe, said it may be hard to find people willing to go. The main concern at the moment is the security of crew members, he said. Until national navies assist the Ukrainian authorities to sweep these mines and create a safe corridor, seafarers will face significant personal risk sailing through these stretches of water, Stephen Cotton, General Secretary of the International Transport Workers' Federation (ITF), told Reuters. London's insurance market has placed the entire region on a separate high-risk list, meaning soaring costs for shipments.” https://twitter.com/EuromaidanPress/status/1552418553147654153 Russia cuts gas flows further as Europe urges energy saving, Reuters reports. “Russia delivered less gas to Europe on Wednesday in a further escalation of an energy stand-off between Moscow and the European Union that will make it harder, and costlier, for the bloc to fill up storage ahead of the winter heating season. The cut in supplies, flagged by Gazprom earlier this week, has reduced the capacity of the Nord Stream 1 pipeline - the major delivery route to Europe for Russian gas - to a mere fifth of its total capacity. Nord Stream 1 accounts for around a third of all Russian gas exports to Europe. On Tuesday, EU countries approved a weakened emergency plan to curb gas demand after striking compromise deals to limit cuts for some countries, hoping lower consumption will ease the impact in case Moscow stops supplies altogether. The plan highlights fears that countries will be unable to meet goals to refill storage and keep their citizens warm during the winter months and that Europe's fragile economic growth may take another hit if gas will have to be rationed.”Grain export coordination center opened in Istanbul
— Euromaidan Press (@EuromaidanPress) July 27, 2022
The aim of creating the center is to inspect the vessels that will take part in the export of grain from the three ports of Ukraine in the Black Sea: Odesa, Chornomorsk and Pivdennyi https://t.co/suMTwreIGW pic.twitter.com/HDW04vGWzj
Legal
Ukraine wants big banks to be prosecuted for ‘war crimes,’ Zelenskyy’s top economic aide says, CNBC reports. “Major US and European banks should be prosecuted for “committing war crimes” over their financing of trade with the Russian regime, according to a top aide to Ukraine president Volodymyr Zelenskyy. https://twitter.com/EuromaidanPress/status/1552394645719592962 Oleg Ustenko, the economic advisor to Zelenskyy, said the Ukrainian government believes banks, such as JPMorgan, HSBC and Citi, are aiding the Kremlin’s war efforts in Ukraine through financing companies that trade oil with Russia. Everybody who is financing these war criminals, who are doing these terrible things in Ukraine, are also committing war crimes in our logic, he told CNBC’s Hadley Gamble Tuesday on “Capital Connection.” Asked directly if he wants to see these banks prosecuted for war crimes, Ustenko said: “Exactly.” Ustenko said Zelenskyy believes these banks should be held accountable for prolonging the conflict and the war on Ukraine. His comments came in response to a FT report last week, which said that Ukraine’s government wrote to the chiefs of US and European banks — such as Jamie Dimon from JPMorgan and Noel Quinn from HSBC — urging them to cut ties with the groups that are trading Russian oil. In letters seen by the FT, Ustenko wrote to the bankers asking them to cut off financing for businesses that trade Russian oil and sell shares to Gazprom and Rosneft, two of Russia’s state-backed oil and gas companies. According to the FT, the letters accused Citigroup and Credit Agricole of “prolonging” the war by providing finances to companies that ship Russian oil. The letters also reportedly warned the banks will not be allowed to take part in the reconstruction of Ukraine when the war is over.” 358 children were killed, and 693 children injured, the Office of the Prosecutor General of Ukraine reports as of July 28. 2,197 educational establishments are damaged because of shelling and bombings, 223 of them are destroyed fully. 25,575 crimes of aggression and war crimes and 12,178 crimes against national security were registered.Support
IRIS-T systems to be delivered to Ukraine by September, Germany’s top diplomat hopes, Ukrinform reports, citing RFE/RL. "We are also delivering the IRIS-T air defence system. Well, I'm hoping for late summer, early September... And it's in the final stages of production; it was supposed to go to another country. Therefore, we had to agree with another country that they would move, that this system could be sent to Ukraine, and I really hope that we will be able to do this with more of these IRIS-T systems, [German Foreign Minister Annalena Baerbock] said.”Three Mars II MLR systems, 10 PzH200, and five Gepards already in Ukraine - German defence ministry, Ukrinform report, citing the Ministry of Defense of the Federal Republic of Germany. “Germany has delivered to Ukraine the promised batch of three Mars II multiple launch rocket systems. The three promised Mars II-type multiple rocket launchers and three more PzH 2000 self-propelled howitzers have been delivered. We keep our word, German Defense Minister Christine Lambrecht said. It was also stated that Germany will continue to support Ukraine through further supplies of heavy weapons, ammunition, and by training Ukrainian troops in Germany. The Ministry of Defense reported that Ukraine currently has ten PzH 200 self-propelled howitzers and five Gepard anti-aircraft tanks, in addition to three Mars II MLR systems.” Germany greenlights sale to Ukraine of 100 Panzerhaubitze2000 self-propelled howitzers, Ukrinform reports, citing Spiegel. “According to the publication, on July 13, the Federal Ministry of Economy granted the German arms manufacturer Krauss-Maffei Wegmann (KMW) a permit to produce Panzerhaubitze2000 systems. As reported, 100 self-propelled howitzers cost EUR 1.7 billion. At the same time, preliminary deliveries are estimated at EUR 600 million. KMW intends to kick off production immediately. At the same time, it is noted that the production of the entire batch may take several years. Panzerhaubitze2000 are capable of hitting targets at a 30 km range.”Germany approved sale of 100 PzH 2000 self-propelled guns to Ukraine at a total cost of € 1.7 billion
— Euromaidan Press (@EuromaidanPress) July 27, 2022
The production of all PzH 2000s will take several years.
PzH 2000s hit targets at a distance of up to 40 km and fire at a rate of up to 10 shells/min https://t.co/LNkHxZVZH3 pic.twitter.com/yHtcCiX9qt
Territorial concessions are unacceptable to 84% of Ukrainians, Ukrainska Pravda reports, citing Kyiv International Institute of Sociology (KIIS), according to the results of a survey conducted between 6-20 July 2022. “One-tenth of Ukrainians agree to concede territories to Russia to end the war, but for 84% of citizens, territorial concessions are unacceptable. Only 10% of respondents believe that in order to achieve peace and preserve independence, it is acceptable to give up some territories. The mood of the population has, for the most part, remained unchanged since May. Respondents from the east of the country and those who call themselves Russian-speaking Russians in Ukraine are somewhat more inclined to make concessions.” https://twitter.com/EuromaidanPress/status/1552361304010129408 In the report Business retreats and sanctions are crippling the Russian economy, Jeffrey Sonnenfeld, Steven Tian, Franek Sokolowski, Michal Wyrebkowski, and Mateusz Kasprowicz have released one of the first comprehensive economic analyses measuring Russian current economic activity five months into the invasion, and assessing Russia’s economic outlook. “Russia’s strategic positioning as a commodities exporter has irrevocably deteriorated, as it now deals from a position of weakness with the loss of its erstwhile main markets, and faces steep challenges executing a “pivot to Asia” with non-fungible exports such as piped gas. Despite some lingering leakiness, Russian imports have largely collapsed, and the country faces stark challenges securing crucial inputs, parts, and technology from hesitant trade partners, leading to widespread supply shortages within its domestic economy. Despite Putin’s delusions of self-sufficiency and import substitution, Russian domestic production has come to a complete standstill with no capacity to replace lost businesses, products and talent; the hollowing out of Russia’s domestic innovation and production base has led to soaring prices and consumer angst. As a result of the business retreat, Russia has lost companies representing ~40% of its GDP, reversing nearly all of three decades’ worth of foreign investment and buttressing unprecedented simultaneous capital and population flight in a mass exodus of Russia’s economic base. Putin is resorting to patently unsustainable, dramatic fiscal and monetary intervention to smooth over these structural economic weaknesses, which has already sent his government budget into deficit for the first time in years and drained his foreign reserves even with high energy prices – and Kremlin finances are in much, much more dire straits than conventionally understood. Russian domestic financial markets, as an indicator of both present conditions and future outlook, are the worst performing markets in the entire world this year despite strict capital controls, and have priced in sustained, persistent weakness within the economy with liquidity and credit contracting – in addition to Russia being substantively cut off from international financial markets, limiting its ability to tap into pools of capital needed for the revitalization of its crippled economy. Looking ahead, there is no path out of economic oblivion for Russia as long as the allied countries remain unified in maintaining and increasing sanctions pressure against Russia, and The Kyiv School of Economics and McFaul-Yermak Working Group have led the way in proposing additional sanctions measures across individual sanctions, energy sanctions and financial sanctions, led by Ambassador Michael McFaul, Tymofiy Mylovanov, Nataliia Shapoval, and Andriy Boytsun. Defeatist headlines arguing that Russia’s economy has bounced back are simply not factual - the facts are that, by any metric and on any level, the Russian economy is reeling, and now is not the time to step on the brakes.” Ukraine expects to get up to $20B in loan from IMF, says NBU governor, Ukrinform reports. “Ukraine is in consultations with the International Monetary Fund to seal by year-end an agreement for a $15-$20 billion loan to help restore its war-torn economy. That’s according to National Bank Governor Kyrylo Shevchenko, who spoke with Reuters. Kyiv has already submitted its request to the IMF and is now in consultation with the fund over the new financing, the governor said. He hopes Ukraine would receive as much as $20 billion over two or three years through a Stand-By Arrangement (SBA) or an Extended Fund Facility (EFF). Finance experts believe that battered by Russia's invasion, Ukraine’s economy faces a 35%-45% economic contraction in 2022 and a monthly fiscal shortfall of $5 billion. Therefore, the nation is heavily reliant on foreign financing from its Western partners.”84% of Ukrainians oppose making territorial concessions to Russia and this number has risen since May
— Euromaidan Press (@EuromaidanPress) July 27, 2022
Opposition is overwhelming in all regions & ethnolingual groupshttps://t.co/I38pkAx8if pic.twitter.com/ec3PaE3Aw0
New Developments
A. President: We are doing everything to ensure occupiers have no logistical capabilities, Ukrinform "Regarding the Antonivka Bridge in Kherson and other crossings in the region. Of course, all of them will be rebuilt, but by us. We are doing everything to ensure that the occupiers have no logistical capabilities on our land," the president said. Zelensky emphasized that Ukrainians will break all the plans of the occupiers and liberate their territory using military, diplomatic and all other available tools. In recent days, the Armed Forces of Ukraine have hit three key targets: the Antonivka Bridge, the Daryivka Bridge, and the road through the Kakhovska HPP dam. The invaders tried to hastily repair the bridges in an effort to restore supply routes for ammunition and heavy equipment but the safety of using the bridges remains questionable. The Russians also build a pontoon crossing across the Inhulets River near the village of Daryivka.” B. FM Kuleba: In the war with Russia, Ukraine needs the West to have stamina, Ukrinform “We need stamina… Not for us. We have stamina. We need Europeans and people in the West to have stamina as well, Kuleba said. We are fighting the war. I cannot impose any opinion or narrative on people living in Europe. If they decide that it’s safer to try to make a deal with Putin, they are free to do it. But, the truth is that they will not succeed, because Putin will take it as a sign of weakness, and he will only increase the pressure, Kuleba stressed.”New head of the Ministry of Foreign Affairs of Belgium Hadja Lahbib in 2021 visited occupied Crimea and refused to call it Ukraine
— Euromaidan Press (@EuromaidanPress) July 20, 2022
Before her appointment, her Wikipedia page was thoroughly edited "2021: trip to Lebanon and Russia [Crimea]" deleted July 15 https://t.co/ehdKTZbFKO pic.twitter.com/9d7nbKucq3
Assessment
- On the war.
map source: https://www.understandingwar.org/backgrounder/russian-offensive-campaign-assessment-july-27
The Institute for the Study of War has made the following assessment as of Wednesday 27 July:
- Russian forces currently appear able to sustain only two significant offensive operations in Ukraine, both in Donetsk Oblast, and the Russian offensive remains likely to culminate before seizing additional significant population centers.
- Ukrainian forces may have launched a localized counterattack southwest of Izium.
- Russian forces attacked settlements east of Siversk and northeast and southeast of Bakhmut.
- Ground fighting is ongoing north of Kharkiv City.
- Ukrainian forces struck the Antonivskyi Bridge for the third time in ten days on July 27, likely rendering it unusable.
- The Mari El Republic north of Kazan sent two volunteer battalions to train and is forming a third battalion to deploy to Ukraine.
- Russian occupation authorities are importing Russians to work in occupied territories due to a lack of Ukrainian collaborators.
- Mariupol occupation authorities continue withholding humanitarian aid to force civilians to cooperate with and work for the occupation administration.“
2. Consequences and what to do?
IMF cuts global growth outlook, warns high inflation threatens recession, Reuters reports. “The International Monetary Fund cut global growth forecasts again on Tuesday, warning that downside risks from high inflation and the Ukraine war were materializing and could push the world economy to the brink of recession if left unchecked. Global real GDP growth will slow to 3.2% in 2022 from a forecast of 3.6% issued in April, the IMF said in an update of its World Economic Outlook. It added that world GDP actually contracted in the second quarter due to downturns in China and Russia. The fund cut its 2023 growth forecast to 2.9% from the April estimate of 3.6%, citing the impact of tighter monetary policy. World growth had rebounded in 2021 to 6.1% after the COVID-19 pandemic crushed global output in 2020 with a 3.1% contraction. "The outlook has darkened significantly since April. The world may soon be teetering on the edge of a global recession, only two years after the last one," IMF Chief Economist Pierre-Olivier Gourinchas told a news conference. The world's three largest economies, the United States, China and the euro area, are stalling, with important consequences for the global outlook, he added. The fund said its latest forecasts were "extraordinarily uncertain" and subject to downside risks from Russia's war in Ukraine pushing energy and food prices higher. This would exacerbate inflation and embed longer-term inflationary expectations that would prompt further monetary policy tightening. Under a "plausible" alternative scenario that includes a complete cut-off of Russian gas supplies to Europe by year-end and a further 30% drop in Russian oil exports, the IMF said global growth would slow to 2.6% in 2022 and 2% in 2023, with growth virtually zero in Europe and the United States next year. Global growth has fallen below 2% only five times since 1970, Gourinchas said - recessions in 1973, 1981 and 1982, 2009 and the 2020 COVID-19 pandemic. The IMF said it now expects the 2022 inflation rate in advanced economies to reach 6.6%, up from 5.7% in the April forecasts, adding that it would remain elevated for longer than previously anticipated. Inflation in emerging market and developing countries is now expected to reach 9.5% in 2022, up from 8.7% in April. Inflation at current levels represents a clear risk for current and future macroeconomic stability and bringing it back to central bank targets should be the top priority for policymakers, Gourinchas said. […] The IMF cut its eurozone growth outlook for 2022 to 2.6% from 2.8% in April, reflecting inflationary spillovers from the war in Ukraine. But forecasts were cut more deeply for some countries with more exposure to the war, including Germany, which saw its 2022 growth outlook cut to 1.2% from 2.1% in April. Italy, meanwhile saw an upgrade in its 2022 growth outlook due to improved prospects for tourism and industrial activity. But the IMF said last week that Italy could suffer a deep recession under a Russian gas embargo. Russia's economy is expected to contract by 6.0% in 2022 due to tightening Western financial and energy sanctions - a "fairly severe recession," Gourinchas said. But that is an improvement over the April forecast of an 8.5% contraction, due to Moscow's measures to stabilize its financial sector, which is helping to support the domestic economy. The IMF estimates that Ukraine's economy will shrink by some 45% due to the war, but the estimate comes with extreme uncertainty.”Hans Petter Midttun: Two months ago, the Head of the Defence Intelligence of Ukraine, Kyrylo Budanov, predicted that the breaking point in the war to be in August and that most active combat actions would be finished by the end of the year. He has been forecasting a Russian defeat from the very start of the full-scale invasion.
If the West upholds its defence, financial and humanitarian support to Ukraine, and continues to strengthen the sanctions on Russia through winter, Russia’s ability to wage war will gradually become weaker. Over the last months, we have seen the Russian offensive losing momentum and slowly grinding to a halt as Ukraine’s counter-offensive is gaining pace. Ukraine is in process of cutting the link between Kherson and the Eastbank of Dnepr, isolating the Russian forces on the Westbank. The Russian Air Force has not operated over Ukrainian-controlled territory for nearly three months, having lost more than 400 aircraft and helicopters. Having more than 700 operational and tactical level unmanned aerial vehicles (UAV) shot down, and suffering from bad intelligence, it is struggling to locate and destroy critical Ukrainian capabilities like its command and control, air defence, logistics and not least, its long-range fire. Well under half of all Russian missiles hitting their intended target. Two to three out of every ten missiles fired fail to launch or fizzle during their flight. Two more have technical problems such as not fusing properly even if they fly to their intended range. Two to three more miss their aim points even when they reach their intended target. In May already, Ukraine assessed the Russian missile success at just below 40 percent. It is presently running low on precision-guided missiles and is already using missiles designed for naval strikes and air defence in their secondary role against land targets. Multiple reports indicate huge manning problems. Not only has Russia lost more than 40,000 killed in action and potentially three times the number wounded, but it is also facing problems replacing the losses. On top of that, the losses include some of its elite units, at least 12 generals and a very high number of younger officers. In the face of huge casualties, fundamental leadership problems, technical problems, lack of logistics and, again, long-range precision strikes by the Ukrainian Armed Forces, the motivation of the ones who have survived the first 5 months to move forward is understandable, low. As the ultimate indication of its structural challenges, the Russian Black Sea Fleet has lost 15 vessels to a country that has no navy (in the proper understanding of the word). The list of Russian problems is by no means complete. Reports of the Russian Defence Industry struggling to replace lost equipment and restore storage of precision-guided ammunition, support the assessment the Head of DIU made in May. The tide is turning. The report “Business retreats and sanctions are crippling the Russian economy” gives a unique insight into the true state of affairs, giving further credit to the prediction that we might indeed be seeing an end to “active combat actions” before the end of the year, provided that the West does not stumble and falter as winter is approaching. That said, the end of “active combat actions” does not necessarily mean that all of Ukraine will be liberated. “Turning the tide” implies that by starting a broader counter-offensive, Ukraine will be facing the same challenges Russian forces have met when moving over open terrain against prepared, fortified positions. It might very well mean that the war reverts to the same format as before 24 February, only along a new and broader frontline through parts of Kherson, Zaporizhzhia, Donetsk, Luhansk and Kharkiv Oblast. The maritime blockade – designed to strangle the Ukrainian economy and undermine the economic viability of the state – will most certainly be in place until the West finally decides to intervene. Ukraine’s economy might go into a steep decline this fall, Ukraine Business News reports. “According to the FT, due to the war, Ukraine’s monthly expenses have increased from $250M in February to $3.3B in May. The cabinet has already introduced drastic cuts in spending on day-to-day services to cover its military needs. It is noted that Western aid to Kyiv is insufficient and too slow, while the country’s obligations, on the contrary, are very large. Since the invasion, Ukraine has received $12.7B in financial aid out of a promised $38B. Ukraine’s net reserves are now only $12.9B, compared to $19B in February. This is enough to pay for importing necessary goods for 2.5 months including everything from agricultural resources to car parts and fuel. Experts believe that the Ukrainian government’s financial options are very limited and there may not be the ability to pay all the Ukrainian social obligations.” I share the assessment by most experts that Russia will not be able to capture much more territory, and that it, on the contrary, risks losing some of the territories it is presently occupying. Its ambition of occupying a greater part of Ukraine – including the capital – remains a wet dream. But all of this – the sense that Russia is failing and the tide is turning - is based on the assumption that the Russian Army needs to advance to be victorious. As previously stressed, that is not the case. It only needs to defend and hold what it has already occupied. The assessment by the Financial Times – which is supported by many reports on the state of the Ukrainian economy, the “maritime ripple effects”, and the economic impacts of the war – underlines that Ukraine is far more likely to be defeated in the economic sphere than in the military. The key message is that a 3-dimensional problem needs a 3-dimensional solution. As previously argued, the single-minded focus on the military situation – further limited to ground operations in the East only – will render us unable to come up with an effective counter-strategy. Western support to Ukraine allows it to counter the Russian Army but renders it unable to counter the threats in the Air and at Sea. It does not counter the non-military effects of the Russian Hybrid War. The support is not designed to counter the Hybrid War, which after nearly 8,5 years continues to undermine the basis for Ukrainian statehood.