North Korea is hesitant to send weapons to Ukraine, the CIS seeks to reinstate former members, and Russia will allow individual cryptocurrency mining starting November 1. These stories topped Friday's newspaper headlines in Russia.
Vedomosti: Seoul hesitant to supply weapons to Ukraine amid rising tensions
The alleged deployment of North Korean soldiers to Russia, as reported by Western media, poses a risk of escalating the Ukraine conflict and may prompt other nations to consider "different kinds of action," US Defense Secretary Lloyd Austin cautioned at a joint news conference with South Korea’s Defense Chief Kim Yong-hyun in Washington.
The Pentagon is also concerned that North Korean leader Kim Jong Un may seek advanced Russian technologies, including tactical nuclear weapons, intercontinental ballistic missiles, reconnaissance satellites, or submarines equipped with ballistic missiles. In response, the South Korean defense minister noted that while discussions are ongoing regarding the transfer of artillery shells to Ukraine via the United States, "nothing has been decided yet." He also mentioned that South Korea is contemplating sending a team of military observers to Ukraine.
Despite the current low point in relations between Russia and South Korea, both nations have been careful not to overstep each other's red lines, according to Ilya Dyachkov, an associate professor at the Department of Oriental Studies at Moscow State Institute of International Relations. For Moscow, a red line would be crossed if Seoul were to supply lethal weapons to Kiev, while for South Korea, the transfer of Russian military technology to Pyongyang constitutes a similar threshold, the expert elaborated.
Moreover, Vasily Kashin, director of the Center for Comprehensive European and International Studies at the Higher School of Economics, emphasized in an interview with Vedomosti that Russia sharing its technology with North Korea is a more significant concern for South Korea than the North gaining practical battlefield experience by participating in the Ukraine conflict. He argued that the hypothetical deployment of 10,000 North Korean troops would not drastically alter the situation on the front, given that both sides have battlegroups numbering in the hundreds of thousands.
Kashin further asserted that North Korea lacks the resources and capabilities to wage war against its southern neighbor. "Even though North Korea has developed certain types of weapons, it continues to rely on Cold War-era military equipment, while South Korea stands as a major military power, surpassing any European nation. Additionally, it has the support of the United States," the expert concluded.
Izvestia: CIS open to Georgia's reinstatement
The Commonwealth of Independent States (CIS) would welcome the return of former members, including Georgia, as it hopes that Ukraine and other countries distancing themselves from the CIS will reconsider their positions, CIS Secretary General Sergey Lebedev told Izvestia.
Former Georgian President Mikhail Saakashvili decided to withdraw from the CIS in August 2008 amid the conflict in South Ossetia and Russia's recognition of Abkhazia's independence. Georgia formally exited the CIS a year later. Despite this, Russia remains Georgia's second-largest trade partner, following Turkey. However, according to political scientist Petre Mamradze, the former Chief of Staff to the President of Georgia, Georgia cannot return to the CIS without restoring diplomatic ties with Russia.
Since Moscow cannot revoke its recognition of the independence of South Ossetia and Abkhazia, resuming diplomatic relations is unlikely. "Georgia would have to approach Russia, but no Georgian government is willing to take that step. Nonetheless, relations between Moscow and Tbilisi are developing well on other fronts," he noted.
While bilateral political relations are currently suspended, economic cooperation continues to flourish, Vadim Mukhanov, head of the Caucasus sector at the Center for Post-Soviet Studies at the Institute of World Economy and International Relations, confirmed to Izvestia.
As for Moldova, it remains a CIS member even as its authorities have severed numerous agreements within the framework of the Commonwealth. The CIS Secretary General expressed hope that Moldova would stay, despite "vocal opinions favoring departure or a reduction in ties with the Commonwealth." He emphasized, "Our economic connections are too strong, and Moldova would benefit from remaining a part of the Commonwealth."
Ukraine, while officially a CIS member, has denounced several agreements associated with the organization. By late 2022, Ukraine had terminated 20% of the 301 international treaties concluded within the CIS. However, its status as a founding member complicates any potential withdrawal. Oleg Nemensky, a researcher at the Institute for Slavic Studies at the Russian Academy of Sciences, explained to Izvestia that it would be quite challenging for Ukraine to leave given the number of existing agreements.
Izvestia: Russia to permit individual cryptocurrency mining starting November 1
Starting November 1, individual entrepreneurs and private citizens will be able to engage in cryptocurrency mining, provided they are registered with the Federal Tax Service. Individuals may mine cryptocurrency without registration as long as their electricity consumption does not exceed a limit established by the state, according to Sergey Bezdelov, director of the Industrial Mining Association (IMA).
Under the new legislation, the government has the authority to prohibit mining activities in certain Russian regions and to establish guidelines for implementing such restrictions. Anna Nikitchenko from Business Russia noted that these restrictions may be necessary in areas facing energy shortages, given that cryptocurrency mining is an energy-intensive process. Deputy Energy Minister Yevgeny Grabchak has indicated that some regions will soon be banned from cryptocurrency mining.
A specific tax regime for mining and cryptocurrency operations is still under development, Nikitchenko added. Last month, the tax regulator announced that cryptocurrency mining will be exempt from Value Added Tax (VAT). However, market participants will be required to pay taxes in two stages: during the mining process and upon the sale of cryptocurrencies. Grigory Osipov, research director for cryptocurrency security at Shard, considers this tax scheme to be fair.
In the coming years, industrial miners are expected to generate up to 50 billion rubles (approximately $513.5 million) in annual tax revenue, forecasts Oleg Ogiyenko, deputy CEO for communication at BitRiver.
This new law is set to legitimize industrial mining in Russia, which has previously lacked regulation, the expert emphasized. According to Bezdelov, Russia ranks second in mining capacity globally, trailing only the United States, and has already surpassed the U.S. in terms of industry growth. He believes that starting November 1, the competition for digital resources between Russia and the United States will enter a new phase.
Vedomosti: Lavrov to embark on his first EU visit since Russia's special military op
Russian Foreign Minister Sergey Lavrov is scheduled to visit Malta next month for the Ministerial Council of the Organization for Security and Cooperation in Europe (OSCE), as confirmed by Russian Foreign Ministry Spokeswoman Maria Zakharova to Vedomosti. This will be Lavrov's first visit to an EU country since the commencement of Russia's special military operation in Ukraine. Zakharova urged the host country to "ensure that all OSCE member states can participate effectively."
The Maltese embassy in Russia informed the newspaper that the decision to hold the 31st OSCE Ministerial Council in Malta on December 5-6 "applies to all OSCE member states, including Russia." The embassy stated, "OSCE delegations receive regular updates regarding arrangements. More practical details, including invitations, will be communicated to all OSCE delegations in due course," but declined to comment on the EU sanctions imposed on Lavrov. The OSCE Secretariat also indicated that they had no additional information beyond what the Maltese embassy provided.
Lavrov last visited an EU country in December 2021, when he attended the OSCE Ministerial Council in Stockholm, as noted on the Russian Foreign Ministry's Telegram channel. Following the start of military actions in Ukraine, the EU imposed individual sanctions on Lavrov, alongside Russian President Vladimir Putin, in February 2022.
According to Fyodor Lukyanov, editor-in-chief of Russia in Global Politics magazine, the OSCE currently lacks the capacity to play a significant political role. However, he emphasized that Russia has not withdrawn from the organization, maintaining that it is essential to utilize all available platforms to articulate its position. "What we are witnessing globally is a rapid erosion of institutions established during the Cold War, many of which are now outdated. The OSCE is undoubtedly one of those institutions," the expert noted.
Kommersant: Russian LNG exports reach 2024 peak in October
According to Kommersant, Russian LNG producers exported 3.06 million metric tons of liquefied natural gas in October, marking a record high for 2024. In the first nine months of this year, LNG exports increased by 4.65%, totaling 27.4 million metric tons. By October, LNG facilities had completed scheduled maintenance, returning to full production capacity. The majority of LNG shipments continued to Asia along the Northern Sea Route during the navigation season, while Belgium, one of Yamal LNG’s largest buyers, resumed purchases after a two-month hiatus.
The government projected an increase in LNG exports for 2024, forecasting a rise from 32.3 million metric tons in 2023 to 38 million metric tons, primarily due to the launch of the first line at Arctic LNG 2, with other facilities already operating at full capacity. However, this forecast was revised down to 35.2 million metric tons following the latest U.S. sanctions targeting the project earlier this year.
October's increase in Russian LNG exports was largely driven by seasonal factors, as consumption rose with the onset of the heating season, according to Ivan Timonin at Implementa. He noted that LNG exports have surged since early 2024 due to the suspension of scheduled maintenance at two major lines of Yamal LNG and Sakhalin 2 in 2023. "This year, the operation of Sakhalin 2 was suspended for a relatively brief period, which contributed to the increase in exports," Timonin stated. He anticipates that Russian LNG exports will total approximately 32.5 million metric tons for the entirety of 2024.
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