Russia Ukraine

Cold bathroom showers are compounding the misery felt by millions of Ukrainians oppressed by the combined effects of Gazprom’s stoppage of natural gas supplies, an economy in free fall and protracted battles between the national army and Russian-backed separatists in breakaway eastern regions.

Vitali Klitschko, the heavyweight boxing champion turned mayor of Kiev, announced on Monday that all hot water provided by municipal boilers to Soviet-built apartment buildings would be shut off through “September, the end of September.”

Though hot water in older apartment buildings is typically shut off for a week or two during summer periods for pipe cleaning purposes, the drastic measure taken by authorities now is necessary – officials say – to ensure that a country without Russian imports can maintain enough natural gas in underground storage facilities to heat homes during the winter. Continue reading »

First western sanctions stopped billionaire Gennady Timchenko from flying around in his luxury jet, now they’re hurting budget Russian air travelers as well. Aeroflot grounded Dobrolet, its fledgling low coster airline, after companies in the European Union suspended co-operation agreements.

Owing to “unprecedented pressure” the low cost carrier had no option but to suspend flights and ticket sales, Aeroflot said. However, analysts said that Russia’s national airline, having already spent about $20m of the $100m budget allocated for Dobrolet, was unlikely to allow the sanctions to force it to give up on the low coster altogether.

“The company has the option of signing new leasing and technical servicing agreements with Asian counter parties, including Chinese ones, according to experts, wrote Sberbank Investment Research in a note on Monday, adding that “this will probably take months and incur additional costs.” Continue reading »