Ukraine-Russia News
LAST UPDATE: July 22, 2025
Russian central bank expected to cut key rate by 200 bps to 18% on Friday
A Reuters poll of economists indicates the Russian central bank is likely to reduce its benchmark rate by 200 bps to 18% due to slowing inflation, economic cooling, and a strong ruble.
Insight
A significant 2% cut suggests confidence in disinflation, but also signals concern about growth and currency strength. The central bank walks a fine line between supporting economic recovery and ensuring inflation remains controlled.
Putin says FSB approval will be needed for foreign vessels entering Russian ports
President Putin announced that Russia’s FSB (security service) will require approval for foreign ships entering Russian ports, citing enhanced security measures.
Insight
This move tightens maritime access controls amid geopolitical tensions, suggesting heightened security prioritization and possible escalation of naval friction with foreign vessels.
Ukraine needs $6 bln to close defence procurement gap in 2025, Kyiv says
Ukraine’s government stated it requires an additional $6 billion this year to fully fund defense procurement and support ongoing military operations.
Insight
The funding shortfall highlights persistent financial gaps in Ukraine’s defense readiness. Without this support, strategic capabilities and frontline resilience may weaken amid long-term conflict.
Ukraine projects $40 billion budget deficit for 2026
Ukraine’s parliamentary budget committee chair, Roksolana Pidlasa, announced on July 21 that the 2026 budget deficit is expected to reach at least $40 billion. This will be financed via G7 grants, EU funds, IMF support, but an external financing gap of around $19 billion remains.
Insight
The wide deficit highlights Ukraine’s heavy reliance on external financial aid, particularly as defense still consumes about 66% of the budget. Urgent coordination with international partners is essential to close the looming funding gap.
Ukrainian Raids Spark Concerns Over Kyiv’s Anti-Graft Efforts
Ukraine’s security services recently conducted raids on its independent anti-corruption agency, triggering alarm among domestic and international stakeholders over the commitment to anti-graft reforms.
Insight
These raids raise red flags for Kyiv’s backers, potentially undermining Ukraine’s anti-corruption credibility and jeopardizing future Western support unless swift transparency measures are taken.
Ukraine’s Zelenskiy says new peace talks in Turkey on Wednesday
President Zelenskiy announced a new round of Ukraine–Russia peace talks scheduled for Wednesday in Turkey, marking the first direct engagement in seven weeks, with discussions expected to also involve a prisoner exchange.
Insight
Restarting peace talks signals Kyiv’s push for diplomatic solutions, though entrenched positions from Moscow may limit progress. The inclusion of a prisoner swap suggests a strategy to build interim trust.
