Here is the latest update for Thursday, September 25:
Conflict Developments
- A daytime drone strike by Ukrainian forces targeted the Russian city of Novorossiysk on Wednesday, resulting in at least two fatalities, reports The Moscow Times. Among the wounded were personnel involved in a Russian-Kazakh oil collaboration.
- According to Russia’s Ministry of Defence, as reported by the state news agency TASS, 1,495 Ukrainian soldiers were killed in the last 24 hours of combat. These figures have not been independently confirmed.
- Kremlin spokesperson Dmitry Peskov dismissed allegations of Russian military aircraft violating NATO airspace as baseless “hysteria,” AFP reports.
- “We frequently encounter exaggerated claims about our pilots supposedly breaching airspace regulations,” Peskov stated.
Diplomatic and Political Developments
- Addressing the United Nations General Assembly, Ukrainian President Volodymyr Zelenskyy cautioned global leaders about the escalating dangers posed by Russian military advancements.
- “Halting Russia’s aggression now is far less costly than facing the consequences of the first simple drone armed with a nuclear warhead,” Zelenskyy warned on Wednesday.
- He also highlighted the emerging threat of artificial intelligence in weaponry, describing it as potentially the most devastating arms race in history.
- On the sidelines of the UN summit, Ukraine and Syria officially reestablished diplomatic relations. Kyiv had severed ties in 2022 after Syrian President Bashar al-Assad recognized Russian-occupied Ukrainian territories as independent states.
- In a separate meeting in New York, Russian Foreign Minister Sergey Lavrov met with U.S. Senator Marco Rubio. Rubio called on Moscow to pursue meaningful steps toward a lasting peace, while Lavrov accused Kyiv and European nations of prolonging the conflict.
- Kremlin representative Peskov rejected former U.S. President Donald Trump’s characterization of Russia as a “paper tiger,” affirming that Russia “continues to maintain macroeconomic stability.”
Economic Overview
- On Wednesday, Russia unveiled its 2026 wartime budget, which includes a proposal to increase the value-added tax (VAT) from 20% to 22%, potentially generating an additional $15.5 billion, according to The Moscow Times.
- VAT remains a critical revenue stream for the Russian government, expected to account for roughly 40% of federal income this year.
- The budget forecast predicts a sharp slowdown in economic growth, with 2025 expected to see only 1% growth, down from 4.3% in 2024, Reuters reports.
- For 2026, Russia’s economy is projected to expand by a mere 0.5%, while the federal deficit ballooned to $61.1 billion between January and July, The Moscow Times notes.
