As the economic pain of the war weighs on Russia, the country’s central bank slashed interest rates on Thursday, the latest in a raft of measures by Moscow aimed at easing the pressure that Western sanctions and four months of fighting in Ukraine have placed on the Russian people.
The Russian Central Bank cut interest rates from 14 percent to 11 percent, more than analysts had expected, as Moscow tries to make it cheaper for companies and individuals to borrow money. The move came a day after President Vladimir V. Putin promised to increase the minimum wage and military benefits, a rare acknowledgment of the costs of his war, while insisting that the Russian economy was doing better than some had predicted when he had his military invade Ukraine.
The plans should include increasing payments to service members deployed in Ukraine and doubling child care allowances for women in the military, Mr. Putin told senior government officials at the Kremlin on Wednesday, according to state television. He also pledged an increase of 10 percent next month in the minimum wage and pensions for older people who are not in paid employment.
On the battlefield, Russia’s ambitions are narrowing to three cities in eastern Ukraine’s Donbas region. With the depletion of troops and equipment, some analysts expect the battle to be Russia’s last major offensive of the war.
In other developments:
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Russia’s Supreme Court has delayed until June 29 a hearing to determine whether the Azov battalion, a regiment of the Ukrainian National Guard that made up the bulk of the fighters at the Azovstal steel plant in Mariupol, should be designated a terrorist organization.
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The European Union has stalled on its proposed ban on Russian oil, held up by Hungary’s refusal to back the measure along with the other 26 members of the bloc. Earlier this week, Prime Minister Viktor Orban asked that the proposed embargo remain off the table. He said that his concerns about it had not been resolved.
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After five hours of negotiations, a spokesman for Turkey’s president said on Wednesday that the process for Finland and Sweden to join NATO could not proceed “without meeting the security concerns of Turkey.” Approval of their membership bids requires the unanimous consent of current NATO members, including Turkey.