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Relic

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With high interest rates the profitability of Russian companies is falling. That means less corporation tax payable.

Listening to economist Konstantin, a Russian with contacts in Russia, he reports that 20% of Russia's road haulage companies have shut down. Is that because the business has transferred to rail? No - he reports that the tonnage shipped by rail has fallen for all sectors except fertilisers. Less goods being shipped signals reduced production to me. Has stagflation arrived in the non-military economy?

In the 2025 budget each barrel of Russian crude is expected to sell at an average price of 70 USD, generating revenues of 113 bn USD. Those revenues would drop by about 34 bn USD if Russian crude sold at an average price of 50 USD per barrel in 2025. Crude price is currently under 58 USD per barrel.
And Russian Urals sell at about a $10 per barrel discount to WTI. It's essentially Russia getting squeezed by China and India because of Western sanctions on Russian oil. In practice, Russian Urals are basically around $50 per barrel right now, maybe slightly less in bulk purchases... If this continues for any extended period of time it's going to be an enormous blow to the Russian economy, especially it's foreign liquidity. Bond rates are going to be insane and inflation will be stupid high.
 

Relic

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A significant development that I've been tracking and have simply failed to write a long form post about in a while is Ukraine's incredible success in the development and production of the 2S22 Bohdana 2 howitzer. Production of the self-propelled model has now surpassed 20 units per month according to multiple sources, limited only by available chasis. Ukraine is now using 2 seperate chasis to support increased production.

What's more is that Ukraine has now launched production of a towed model as well, with a production target of 40 combined self-propelled and towed units per month. The Bohdana 2 seriously outranges all Russian conventional artillery with the exception of the limited number of Malva units they have in their inventories. 155mm artillery shells (which Bohdana 2 uses) are simply a better quality, longer range and more accurate munition than the 122mm and 152mm shells that the Russians.

Most important is the cost of production for the Bohdana 2. The self-propelled variant costs between $2.5-$2.8 million usd per unit. The towed version is expected to cost approximately $1.5 million usd per unit. Both of these figures are extremely impressive. The self-propelled model costs less than half of one French CAESAar howitzer and about 25% of a German Panzerhaubitze 2000. Lower labour and material costs in Ukraine drag down the price of production significantly, as does the lack of "export" markup attached to them due to the fact that they are domestically made.

How has Ukraine afforded to mass fund the development and subsequent production of the Bohdana 2? They haven't. The overwhelming majority of production funding comes from the "Danish model" in which Western countries that are low on military aid of their own to send Ukraine instead contribute funds to a pool that Denmark collects and uses to fund Ukrainian domestic defense products. The fund has received more than $7 Billion usd in known funding during 2024 and 2025, led my Denmark 🇩🇰, Norway 🇳🇴, Canada 🇨🇦, Sweden 🇸🇪, Iceland 🇮🇸, The Netherlands 🇳🇱 , Belgium 🇧🇪 Lithuania 🇱🇹 and grants from the European Union 🇪🇺.

The Bohdana 2 project has been such a success that Ukraine projects to be able to sustain approximately 75% of it's artillery losses with domestic production alone, a cost as little as $80-$90 million usd per month, which a a very small price for the countries contributing to the fund. Meanwhile, Ukraine will continue to receive CAEASAR from France, Panzerhaubitze 2000 and RCH-155 from Germany, Archer from Sweden, Zuzanna 2 from Slovakia and Dita from Czechia for the remainder of it's artillery needs, as well and undisclosed number of Soviet made howitzers countries such as Poland and Finland.
 

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Russia steps up offensive across the front line in Ukraine, in apparent defiance of Trump. What does it mean for the war?​




Analysis by Andrew Carey and Kosta Gak, CNN

7 minute read

Published 12:01 AM EDT, Wed April 9, 2025










Firefighters put out a fire following a Russian drone attack in Kharkiv, Ukraine on April 3.


Firefighters put out a fire following a Russian drone attack in Kharkiv, Ukraine on April 3.
Yevhen Titov/AP

London and Kyiv CNN —

Offensive operations by Russia’s army have increased across the front line, according to social media posts by Ukrainian officers, an analysis of information from the General Staff in Kyiv and soldiers speaking to CNN.

It is not yet clear if this is the start of a major spring offensive by Vladimir Putin’s forces, of which Ukraine has been warning for some time. However, it appears to suggest the Russian leader is unconcerned about upsetting US President Donald Trump, who will make up his mind “in a matter of weeks” if the Kremlin is serious about peace, Secretary of State Marco Rubio, said last week.

Where is the current fighting?​


For several months, some of the fiercest fighting has been taking place to the south of the town of Pokrovsk – a one-time key logistics hub for Ukraine’s armed forces in the Donetsk region.

Ukraine’s army has achieved several small tactical successes since the start of the year, pushing back some of the Russian advance towards Pokrovsk, which had bought it to within just a few kilometers of the town center.


But a Ukrainian reconnaissance officer deployed in the area told CNN that, over the last 10 days, Russia’s armed forces became more active again and were bringing forward further manpower and vehicles for future assaults.


“We see it on the drone footage, and we hear them talking about it on the radio intercepts,” said the officer, who CNN is not naming.


But with Pokrovsk itself heavily defended and the military supplies previously situated there largely relocated, Russia’s main effort in the area could be to push westward, rather than north.


Ukrainian artillery crew members manning a howitzer position at an undisclosed location on the Donetsk frontline on April 6.


Ukrainian artillery crew members manning a howitzer position at an undisclosed location on the Donetsk frontline on April 6.
Violeta Santos Moura/Reuters

Social media posts by Ukrainian soldiers in the last few days describe fears of possible encirclement in one location and breach of a defensive line in another.


“The frontline in this area has entered an active phase. The Russians will not stop,” one Ukrainian with the call-sign Muchnoi wrote on Telegram.


The aim of the advance is a town called Novopavlivka, he said.


“They will enter the Dnipropetrovsk region - this is one of the key tasks set by the Russian command.”


Moving into Dnipropetrovsk would be a significant moment because it would be the first time Russian troops have set foot there. Indeed, it would be the first new Ukrainian region to come under part-Russian occupation since the earlyweeks of the full-scale invasion more than three years ago.


The Ukrainian mapping service DeepState puts Putin’s forces just six kilometers (3.7 miles) away from the region while people living along the border are already being evacuated, Dnipropetrovsk officials say.


For Putin – and quite possibly American negotiators as well – any Russian control over a part of Dnipropetrovsk could be seen as a useful bargaining chip in a future negotiation.


Surges along the front line?​


Luhansk is Ukraine’s easternmost region and the one where Putin’s forces have most control – just a few pockets remain in Ukrainian hands. Here, too, Russian troops have made steady gains in recent weeks, particularly the north of the town of Lyman, a railway hub and rear support base for Ukraine’s troops.


“It’s hard, we need to work on stabilizing the front and methodically knocking out the enemy, otherwise the gangrene will spread,” one Ukrainian officer wrote on Telegram.


Data analysis by CNN of the combat engagements recorded by Ukraine’s General Staff shows an increase in Russian activity over the last two weeks along all parts of the front line. While CNN cannot confirm the numbers, and they are unlikely to be definitive, the data provides clear evidence of an upward shift from March 23 onwards.




Before that date, the average number of daily clashes in March had been around 140 (excluding an outlier on March 11). Since then, while tallies have fluctuated, the average has been around 180 clashes per day, an increase of about 30%.


The data includes the Kursk region in Russia, where Ukraine is now holding on to just a few villages along the border, after a slow but successful Russian rollback of Kyiv’s surprise gains last summer. The ground advances are also seeing Russia make inroads into Ukraine’s neighbouring Sumy region, creating small grey zones where neither side is in complete control.


Further complicating the picture along the northern border is Ukraine’s incursion into a slither of Russia’s Belgorod region, confirmed by Kyiv for the first time on Monday.


How are the Russians fighting?​


Ukrainian soldiers report a variety of Russian tactics in recent weeks.


In the south of Donetsk region, a Ukrainian officer with the call sign Alex described Russian troops moving forward in columns consisting of both armored and soft-skin vehicles– about four to five infantry fighting vehicles and tanks, while “the rest are trucks, cars and golf carts.”


He did not hide his scepticism at the prospects for major Russian advances if current maneuvers reveal a real shortage of armor.


“Yes, they have a lot of manpower, several times more than we do, but whatever one says, in a war in the 21st century, it is impossible to build on any successes and launch a rapid offensive without mechanized means of delivering and supporting infantry,” Alex wrote on Telegram.


Also writing on Telegram, Ukrainian commander Stanislav Buniatov said Russian forces there were suffering heavy losses but continued undeterred. “One unit in this area loses ten to 50 Russians per day,” he said.


A view of the abandoned town of Maryinka in the Donetsk region on April 1.


A view of the abandoned town of Maryinka in the Donetsk region on April 1.
AFP/Getty Images

Further west, close to the Dnipro River, where Russian forces last week gained control of the small settlement of Lobkove, a Ukrainian commander with a strike drone squad told CNN he was observing a build-up of manpower between 10-15 kilometers (6-9 miles) behind the line of contact.


“The Russians are operating in small tactical groups of five to seven men, maximum 10 people. As soon as it’s foggy or rainy, they start advancing using bad weather as cover from our drones.”


As spring progresses and the weather turns drier, tactics will change, the drone commander says.


“They can’t use heavy vehicles at the moment. It’s too wet, they will get stuck. As soon as the land dries up, they will make a move; it’s not in doubt, they will charge for sure.”


Reality checks​


Despite the downbeat assessments, it is important to keep some perspective. The amount of territory Russia is capturing remains small. For instance, its forces southwest of Pokrovsk, bearing down on Dnipropetrovsk region, are only about 45 kilometers (28 miles) further advanced than they were one year ago.


In fact, Britain’s Ministry of Defence, in common with other analysts, assesses Russia’s rate of advance to have been in steady decline for six months, from about 730 square kilometers captured in November last year to just 143 last month.


Part of this may well be down to the challenges of warfighting in winter, though the US military’s senior commander in Europe, Gen. Christopher Cavoli, in an upbeat testimony to Congress last week, said Kyiv’s forces had “assumed very strong defensive positions,” and were “well dug in.”


“It is very hard to envision Ukraine collapsing and losing that conflict,” Cavoli concluded.


A Ukrainian gunner prepares to fire a howitzer towards Russian troops at an undisclosed location on the Donetsk frontline on April 6.


A Ukrainian gunner prepares to fire a howitzer towards Russian troops at an undisclosed location on the Donetsk frontline on April 6.
Violeta Santos Moura/Reuters

Even so, land warfare analyst Nick Reynolds, of the Royal United Services Institute in London, cautions against thinking that because Russia has not taken much territory, it is not achieving anything.


Russia’s territorial claims, he says, will not be achieved through military advance, tree line by tree line, village by village.


“The aim is attrition, and the goal is not immediate. The goal is to kill people, to destroy equipment, to suck in resources, to bankrupt the Ukrainian state and to break its will to fight.”


Even weak Russian offensives, he says, need some defense by Ukraine, which in turn allows for better mapping of Ukrainian defensive positions, providing targets for artillery or glide bomb attacks.


Prognosis​


Even in a best-case scenario, Europe’s stepped-up efforts to re-arm Ukraine, amid doubts over US military support, will likely take a few years to come to fruition. While Ukraine’s own defense industry has made great strides, it remains more economically dependent on its allies than Russia’s, analysts say.



US Secretary of State Marco Rubio, left, with US Ambassador to NATO Matthew Whitaker, speak to the press as part of the meeting of North Atlantic Treaty Organization (NATO) Ministers of Foreign Affairs at NATO's headquarters in Brussels on April 4.



Related article Rubio tells Russia the clock is ticking while allies doubt Putin wants peace in Ukraine


Under pressure from Washington, Ukrainian President Volodymyr Zelensky remains publicly committed to an end to the war, as long as any peace agreement is just and secure and does not allow Russia to resume fighting later.


For its part, the Kremlin says it wants peace too, but only if the “root causes” of the conflict are addressed, which in essence means Ukraine must fall back unequivocally into Moscow’s sphere of influence.


But Putin’s announcement last week of the largest conscription round in more than 10 years, and his stated ambition to build an army with 1.5 million active servicemen, along with an aerial onslaught that shows no signs of slowing, point more to a campaign of attrition than any intention to stop.


For fighters on the front lines, even high-ranking officers, peace talks mean little.


“Trust me, in my experience, when you are sitting there at the front, you don’t think about them. There is an order to follow and there is a desire to survive,” one told CNN.


Victoria Butenko contributed reporting.

 

Soldier30

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Footage of an attempt to counterattack by a Ukrainian armored group in the Pokrovsk direction, near Pokrovsk. The Ukrainian armored group consists of a Swedish-made Pbv 302 armored personnel carrier, Ukrainian-made Kozak-7 armored vehicles, American-made BATT UMG armored vehicles, and other equipment. The military equipment bears a new Ukrainian tactical sign in the form of a cross with arrows. The Ukrainian group was attacked by Russian BT-40 FPV drones and fiber-optic-controlled FPV drones. Technical information about the equipment is available on the channel. Judging by the video, some equipment was attacked by drones several times.

 

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An episode of the battle of the Russian 4th separate motorized rifle brigade, using several tanks with the Tsar-Mangal protection. During the march of the tanks, one of the T-72 tanks with its own name "Rusich" stalled. The crew was forced to abandon the tank, but later it was evacuated, shown at the end of the video. The column of tanks turned around and, covered by a smoke screen, retreated to their original positions. After that, the Russian tank was subjected to multiple attacks by Ukrainian FPV drones. Ammunition was dropped on the tank, and drones with a thermite charge were also used to set the tank on fire. It is worth noting that some of the Ukrainian drones did not explode. As previously reported by the operators of Ukrainian FPV drones, the effectiveness of FPV attacks is now about 35%. As a result of numerous attacks by Ukrainian drones, the Russian T-72 tank with the Tsar-Mangal protection was never destroyed.

 

Relic

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Appealing to the businessman in Donald Trump, Ukraine has sent the Americans an offer to PURCHASE $50 Billion usd worth of a mix of new and used military equipment. Ukraine would either pay for the aid directly (with European help) or repay it through a mineral deal. Zelenskyy is open to either option. The Ukrainians understand that while Trump is continueing to allow the aid Biden committed to Ukraine to be shipped as was agreed, Trump is not about to request another Congressional Aid Package for Ukraine because the U.S. Conservatives have no interest in sending additional free aid to Ukraine.

Trump's only goal is to enrich the U.S. however, and he might be persuaded to sell Ukraine $50 Billion usd worth of military equipment that they already use, as America routinely sells military equipment to their Allies.

How will Ukraine pay for this? Fungibility. The EU + Canada + Britain + Japan + Australia are committed to keeping Ukraine's Federal budget afloat, along with the $50 Billion loan they received a couple months back. That combination of funding sources would allow them to repurpose funds from their own domestic budget towards the direct purchase of U.S. weapons.

While the full list of new / used weapons for purchase has not been publically released, some of the items are believed to be the following:

- 10 Patriot Air Defense Batteries
- PAC 2/3 Patriot Air Defense Missiles
- AIM-120 AMRAAM Missiles (NASAMS / F-16s)
- AIM-9M/X Sidewinder Missiles (NASAMS / F-16s)
- VAMPIRE Air Defense Systems
- Stinger Air Defense Missiles
- JSOW Air Launched Munitions
- JDAM Air Launched Munitions
- ATACMS (HIMARS)
- GMLRS (HIMARS)
- Javelin Anti-Tank Missiles
- TOW Anti-Tank Missiles (Bradleys)
- AT4 Anti-Armor Rockets
- M1A1 Abrams MBTs
- Bradley IFVs
- Stryker APCs
- M113 APCs
- MaxxPro MRAPs
- Cougar MRAPS
- M777 Towed Howitzers
- M109 Self-Propelled Howitzers
- 155mm Artillery Shells
- 105mm Artillery Shells
- 120mm Mortar Rounds
- 81mm Mortar Rounds
- 60mm Mortar Rounds
- APKWS Rockets
- Switchblade 300 Drones
- Switchblade 600 Drones
- GLSDB
- Small Arms
- Small Arms Munitions
- Spare Parts
- Body Armor
- Night Vision Devices
- Encrypted Communication Devices
- Satellite Intelligence

This isn't a comprehensive list, however, it's much of the equipment that Ukraine uses, effectively, every single day.


 
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Soldier30

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Footage of Russian FPV drones supporting soldiers in storming buildings and bunkers in Ukraine. The video was filmed in the Orekhov direction and shows drone strikes on buildings, bunkers and strongholds of the Ukrainian army. Drone models not disclosed

 

Spitfire9

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Donald Trump says he wants the killing in Ukraine to stop.

One quick way: Ukraine capitulates.
Another quick way: Russia withdraws.

Neither side agrees to either option.

I can think of a third way of shortening the war: a 15 (?) USD per barrel tariff payable to the government of the country importing Russian oil. Governments refusing to apply the tariff would be subject to secondary sanctions by the US, Europe and any other countries that joined the scheme.

How many countries would refuse the 'free' 15 USD for every barrel of Russian oil imported by their country? Importers would reduce the price offered for Russian oil by 15 USD per barrel.

Effect: world supply of crude would be maintained, Russia would run out of funds more quickly, the war and killing would stop more quickly.
 
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T

TR_123456

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Donald Trump says he wants the killing in Ukraine to stop.

One quick way: Ukraine capitulates.
Another quick way: Russia withdraws.

Neither side agrees to either option.

I can think of a third way of shortening the war: a 15 (?) USD per barrel tariff payable to the government of the country importing Russian oil. Governments refusing to apply the tariff would be subject to secondary sanctions by the US, Europe and any other countries that joined the scheme.

How many countries would refuse the 'free' 15 USD for every barrel of Russian oil imported by their country? Importers would reduce the price offered for Russian oil by 15 USD per barrel.

Effect: world supply of crude would be maintained, Russia would run out of funds more quickly, the war and killing would stop more quickly.
So,how is the US going to make that work when China is the biggest(by far) buyer of Russian oil and gas?
India also a big buyer,how are you(US) going to sanction India when you need India in the longterm?
 

Spitfire9

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So,how is the US going to make that work when China is the biggest(by far) buyer of Russian oil and gas?
India also a big buyer,how are you(US) going to sanction India when you need India in the longterm?
By imposing secondary sanctions. I think that China stopped ordering Russian oil in Jan/Feb for fear of inviting secondary sanctions from the US, decided they would not be applied, then resumed ordering.

What I propose is that governments profit from the discount on Russian crude rather than the benefit being taken by the companies importing the stuff. Do you know of any governments that would not like to receive 15 USD for each barrel of oil imported?

You will be aware that the US is currently inflicting severe damage on the Chinese economy. I am suggesting that the US and Europe impose a price cut on Russian oil that benefits the Chinese and Indian governments financially at the cost of Russian crude producers.

PS I think that Russia exported around 4 million barrels of crude per day in 2024. That would represent about 60 million USD per day income for the governments of importing countries with my proposal. Say 20+ billion USD per annum?
 
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Relic

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Germany 🇩🇪 has announced a substantial new military aid package for Ukraine today, valued at $3.4 Billion usd. The package will be delivered throughout 2025 and consists of the following:

- 4 IRIS-T Air Defense Systems
- 30 Patriot PAC 2 Air Defense Missiles
- 300 IRIS-T Air Defense Missiles
- 120 Stinger MANPADS
- 15 Leopard 1A5 MBTs
- 25 Marder IFVs
- 14 Panzerhaubitze 2000 Howitzers
- 100,000 155mm Artillery Shells
- 300 Surveillance Drones
- 100 Ground Surveillance RADARS

Note: This package will be delivered in 2025 to supplement the substantial military aid that Germany already sends Ukraine on a monthly basis. Those deliveries will continue to be updated monthly.



 

Relic

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Britain 🇬🇧 and 🇳🇴 announced a new military aid package for Ukraine today valued at $600 million usd. The package consists of the following.

- Hundreds of thousands of drones
- Air Defense Radars
- Counter Battery RADARS
- Anti Tank Mines
- $200 Million usd worth of spare parts and maintenance.

 
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Relic

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Significant new on the Ukraine aid front...

The most recent Ramstein summit concluded today in Germany and 51 countries supporting Ukraine were in attendance, either in person, or virtually. Collectively, they committed an additional $23 Billion usd in direct military aid to Ukraine. Packages will be funded and delivered throughout 2025 and beyond.

Concurrently, Ukraine again expressed their desire to purchase $50 Billion usd worth of weapons from exisiting U.S. stockpiles and U.S. defense contractors. A full list of items that Ukraine wishes to purchase has been given to the U.S. Government for consideration. There has been no word yet from the Americans about whether or not they will see Ukraine the weapons that they have requested.


 

Relic

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Since when does Germany own Pac 2 Air Defence Missiles?
Correct me if I'm wrong, but I believe Germany 🇩🇪 currently uses PAC-2 and PAC 3 CRI missiles in their launchers and has PAC 2 GEM-T and PAC-3 MSE missiles on order.




 

Relic

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Lithuania 🇱🇹 announced a new military aid package for Ukraine today valued at $34 million usd. The package consists of the following:

- 155mm Artillery Shells (via 🇨🇿)
- Anti Drone Systems
- Electronic Warfare Systems
- De-Mining Capabilities

The Netherlands 🇳🇱 announced a new military aid package valued at $175 million usd today. The package consists of the following:

- Purchase of an undisclosed air defense systems and interceptors for Ukraine

 

Spitfire9

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With all these ongoing European aid packages to help Ukraine survive, Russia looks like it is going to spend itself into financial oblivion. Many of Its companies are losing money and heading for insolvency.

Why is this happening? The war.
 

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Footage of three Ukrainian M109 self-propelled guns being destroyed by Russian FPV drones. The 155mm M109 self-propelled howitzers have been produced in the United States since 1962. The howitzer has a firing range of up to 30 km and a crew of up to 6 people. Ukraine received 90 self-propelled guns of the following versions: M109A3GN, M109A4BE, M109A5O and M109A6/L. The video shows a Russian FPV drone striking a Ukrainian M109 self-propelled gun near the village of Sergeyevka, west of Pokrovsk. Drone footage of a burning Ukrainian M109 self-propelled gun near the village of Liptsy, in the Kharkiv region of Ukraine. And footage of a Ukrainian serviceman from the ground, destroyed by a Ukrainian M109 self-propelled gun, as a result of an attack by a Russian FPV drone in the Sumy region of Ukraine.

 

Spitfire9

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Russian invaders have suffered record losses since the beginning of the year. According to the Commander-in-Chief of the Ukrainian Armed Forces, Oleksandr Syrskyi on Telegram, these losses have surpassed 140,000 personnel.

"Attempts by the occupiers to break through our defense have resulted in record losses for the Russian invaders," the statement reads.

Believe it or not, as you will.

I wonder what will happen with a Russian spring offensive, if there is one of any size. I presume that reported Russian casualties will rise.

 

blackjack

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reports that it was shot down by an S-400
1744482638399.png

Condolences to pilot, It would be funny if he requests for F-35s on social media later after this.
 
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