© Syrian Arab Red Crescent via AP/TASS

Top stories from the Russian press on Monday, December 26th, prepared by TASS

The UN framework for supplying Syrians with humanitarian aid might expire, China is dealing with the most severe COVID-19 outbreak in history and Russia intends to hold elections in four new regions next year. These stories dominated Monday’s newspaper headlines across Russia.

Nezavisimaya Gazeta: UN humanitarian mechanism for Syrians might expire soon

In the first half of January, the members of the UN Security Council (UNSC) will again face the problem of extending the mechanism of cross-border assistance to Syria. The current international mandate, which allows humanitarian supplies to be transported through the Bab al-Hawa crossing point (BCP) on the border with Turkey, mainly to rebel areas, is valid until January 10. Russian officials doubt the need to extend this initiative, believing that its format discriminates against territories under the control of the central government, Nezavisimaya Gazeta writes.

Turkey, Western countries, and international humanitarian organizations have all called for this process to be extended. Meanwhile, Russia's Permanent Representative to the UN Vasily Nebenzya highlighted the fact that "far more effort is spent on discussions about the lack of alternatives to the UN mechanism than on organizing supplies across the line of contact."

Kirill Semenov, expert at the Russian International Affairs Council, told the newspaper he believes that all sides in the Syrian settlement were interested in using the UN mechanism. "The closing of the cross-border assistance mechanism puts everyone in an awkward situation, because the refugees in Idlib are virtually deprived of it," he explained. "This applies especially to the West, which is interested in continuing this aid program in order to demonstrate in one way or another willingness to help refugee camps through UN institutions. At the same time, Russia must consider another factor. In truth, only one aspect of this agreement is now being carried out, which is the cross-border assistance for refugees, while the early recovery program for Syrian government-controlled territory is excluded from the arrangement," the expert added. According to him, the programs are blocked by US officials, because, in their opinion, they fall under sanctions.

"Despite the fact that we see some progress on the part of the EU for the Assad regime and it is probably possible to find some compromise, it remains unclear whether the EU's progress on early recovery programs will eventually make Moscow reconsider its position", noting that there are "of course, alternative programs. Not everything is tied to UN assistance, but nevertheless it still remains a vital element," he explained.

Izvestia: Russia’s nuclear industry fully self-sufficient thanks to its tech prowess

Russia’s nuclear industry is fully independent technology-wise, Director General of Russia’s Rosatom Alexey Likhachev said in an interview with Izvestia. Despite the challenging economic circumstances and ongoing sanctions, by the end of the year, Rosatom's exports are expected to rise 15% higher than in 2021.

"We are active on the international market. The development of nuclear energy and nuclear power engineering generally benefit the economy. Around 95% of any "nuclear power plant" project is manufactured in Russia. There are deliveries from friendly countries, but we can always replace imports in full. We can say with pride and confidence that Russia's nuclear industry is absolutely independent in terms of technological competence," he said.

Rosatom's exports will increase by around 15% in 2022 compared to last year, according to Likhachev. "[Exports will increase] by around 15%. However, we must recognize that this is far from the limit," he said. Likhachev noted that this includes contracts that were already in place, such as supplies of fuel, enriched uranium goods, and conversion services, according to Likhachev. Furthermore, the Rosatom chief stated that this includes the development of 23 nuclear power units at projects in a dozen countries.

According to Rosatom's boss, the portfolio of foreign orders for the next ten years is stable at $200 bln. "This suggests that foreign revenues are increasing year after year. "We will overcome a psychologically significant barrier in the supply of our products abroad in the amount of $10 bln this year," Likhachev stated.

Vedomosti: China faces most powerful COVID-19 outbreak in history

China's National Health Commission has opted to stop publishing daily data on COVID-19 starting from December 25 due to a substantial increase in the number of cases nationwide following the onset of the easing of its "zero tolerance" policy, Reuters writes. The commission did not explain this decision, but it did state that the relevant data will be kept by the Chinese Center for Disease Control and Prevention. According to experts interviewed by Vedomosti, China does not yet plan to go back to its "zero tolerance" course.

Bloomberg reported earlier, citing a National Health Commission report, that roughly 37 million people could have been infected with COVID-19 in China on December 20 alone, making the current outbreak the greatest since the pandemic began. Meanwhile, analysts concur that this challenging scenario will last at least another month or two, Vedomosti writes. The problem can be aggravated by the mass movement of people during the Chinese New Year at the end of January 2023. Meanwhile, the national authorities are currently behaving in a total polar opposite way than their recent "zero tolerance" practices.

China's economic performance is damaged not by the surging cases, but by inertia from the "zero tolerance" policy, Director of the Center for Asia-Pacific Studies at IMEMO Alexander Lomanov told Vedomosti. According to the expert, current economic losses will be mitigated, and GDP growth in 2023 might hover between 4.5 and 5.5%.

China will suffer from disruptions in logistics and production, but these issues will be temporary, Director at the Center for Comprehensive European and International Studies at HSE University Vasily Kashin believes. According to him, people in China now have a severe form of COVID, but just for a few days, and they are tired of the restrictions.

Vedomosti: Russia plans to hold elections in four new regions in 2023

The Kremlin is exploring the idea of holding elections in the new regions - the Donetsk, Lugansk People’s Republics, Kherson and Zaporozhye Regions - roughly in September 2023 despite the fact that martial law is still in effect there, sources close to the presidential administration, the leadership of one of the new regions, and the United Russia party told Vedomosti.

Sources told the newspaper that various options are being considered. One of them is to cut short the duration of the electoral activity period, and another alternative is to modify the legislation on martial law to allow for elections. According to a source close to the presidential administration, a solution would most likely be sought within the electoral law, in order to avoid affecting the legislation on martial law.

"Whether the legislation will be specifically tailored to them is too early to say, but elections will be held, among other things, to show the legitimacy of the government," a source close to the State Duma told the newspaper.

These local elections are critical because they will serve as a vital step towards the regions' integration, Vice President of the Center for Political Technologies Rostislav Turovsky believes. "The Kremlin needs to have as much indication as possible that these are regular Russian regions, and the formation of local administrations is a major event from this point of view," he said.

Izvestia: Yuan surpasses euro in international SMEs settlements in Russia

The yuan surpassed the euro in foreign exchange settlements of small and medium-sized enterprises (SMEs): 31% versus 28%, respectively, according to a PSB analysis. This trend was confirmed by other large banks. Credit institutions also stated that they are releasing new products in "soft currencies" in connection with this. According to experts interviewed by Izvestia, the appeal of the yuan for businesses reflects its focus on new markets, particularly China.

The dollar was favored by 34% of SMEs that settled in foreign currency, the yuan by 31%, and the euro by 28%. Meanwhile, 4% of the business community’s members polled said they used CIS currencies, while another 3% of business owners used the UAE dirham. Only 0.5% of respondents used cryptocurrencies to settle foreign payments.

"The high popularity of the yuan is associated with the growth of trade with Asia and lower payment risks compared to the dollar and the euro," the survey said.

Cryptocurrency is another promising alternative to dollars and euros for international payments. According to the expert opinion of Capital Lab partner Evgeny Shatov, the current share of cryptocurrencies in cross-border settlements in Russia does not surpass 5-10%, but it will expand.