A Key Withdrawal Shows Ukraine Doesn’t Have Enough Artillery to Fight Russia 

A Ukrainian soldier sits in his position in Avdiivka, Donetsk region, Ukraine, on Aug. 18, 2023. (AP)
A Ukrainian soldier sits in his position in Avdiivka, Donetsk region, Ukraine, on Aug. 18, 2023. (AP)
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A Key Withdrawal Shows Ukraine Doesn’t Have Enough Artillery to Fight Russia 

A Ukrainian soldier sits in his position in Avdiivka, Donetsk region, Ukraine, on Aug. 18, 2023. (AP)
A Ukrainian soldier sits in his position in Avdiivka, Donetsk region, Ukraine, on Aug. 18, 2023. (AP)

Dwindling ammunition threatens Ukraine’s hold on the 1,000-kilometer (620-mile) front line under withering assault by Russian artillery. Defensive lines are in jeopardy.

Ukrainian forces withdrew from the city of Avdiivka in the Donetsk region on Saturday after daily Russian onslaughts from three directions for the last four months.

Avdiivka was a stronghold for Ukrainian positions deeper inside the country, away from Russia. A frontline city ever since Russia first invaded Ukraine in 2014, the fortified settlement with a maze of trenches and tunnels served to protect important — less strengthened — logistical hubs further west.

Its seizure boosts Russian morale and confirms that the Kremlin’s troops are now setting the pace in the fight, to the dismay of Ukrainian forces who have managed only incremental gains since their counteroffensive last year.

CONGRESSIONAL INACTION The Biden administration linked the loss of Avdiivka to Congressional inaction on $60 billion in military aid for Ukraine.

President Joe Biden said he told Ukrainian President Volodymyr Zelenskyy in a Saturday phone call after Ukraine announced it was withdrawing troops from Avdiivka that he remained confident that the US funding would eventually come through. But, when reporters asked if he was confident a deal could be struck before Ukraine loses more territory, Biden responded: “I’m not.”

DWINDLING SUPPLIES The Associated Press interviewed over a dozen commanders, including heads of artillery units, in the war’s most intense combat zones in the weeks ahead of Avdiivka’s fall. They said shortages, which have always plagued Ukrainian forces since the full-scale invasion, grew acute last autumn.

Dwindling supplies of Western-supplied long-range artillery in particular means Ukrainian forces are inhibited from striking high-value targets deep behind Russian lines, where heavy equipment and personnel are accumulated.

For weeks, Ukrainian forces across the frontline have complained about critical shortages in ammunition, with some artillery batteries fighting with only 10 percent of supply they need. Desperate to economize shells, military leaders ordered units to fire at only precise targets. But commanders on the ground say this is barely enough to restrain their better supplied enemy. Concerns are growing that without military aid the fall of Avdiivka may be repeated in other parts of the frontline.

A VICTORY FOR MOSCOW The withdrawal of Ukrainian soldiers from the heavily fortified town handed Russia its biggest victory since the battle of Bakhmut last year. It will allow the Kremlin’s troops to push their offensive further west, deeper into Ukrainian-held territory over less-fortified areas. Pokrovsk, a railway junction further east, could be the next Russian objective, military bloggers said.

Russian military officials and war bloggers said that the capture of Avdiivka reduced the threat to the Russian-held city of Donetsk.

ECONOMIZING SHELLS “Currently the ammunition deficit is quite serious. We are constantly promised that more is coming, but we don’t see it coming,” said Khorobryi, commander of an artillery battery. Their battery has only 5-10% of ammunition needed, he said.

That, he said, robs forces of their ability to effectively attack and regain territories. Even worse, Ukraine loses fighters because it cannot give infantry covering infantry fire.

He, like other officers interviewed for this story, spoke on condition that only their first names be used for security reasons.

“We have nothing to fight with, we have nothing to cover our frontlines,” said Valerie, who commands a howitzer unit that uses NATO-standard 155 mm rounds. To repel a Russian attack, he said they needed 100-120 shells per unit per day. Today, they have a tenth of that, he said.

RUSSIA CHANGES TACTICS Ukrainian soldiers positioned in Avdiivka said that before the fall of the city Russia had switched tactics to capitalize on dire ammunition shortages.

Instead of sending columns of armed vehicles, Moscow’s forces began dispatching waves of smaller infantry groups to engage Ukrainian forces in close quarters. It meant Ukrainian forces had to expel “five times” more ammunition to keep them at bay.

“The enemy also understands and feels our capabilities, and with that, they manage to succeed,” said Chaklun, a soldier in the 110th Brigade.

A FRAGILE NORTH Concerns abound about how the ammunition shortage will impact Ukrainian forces in other sectors of the frontline. The Kupiansk line, in Ukraine’s northeast, is fragile. Russia has been intensifying attacks in the direction for months in a bid to recapture the important logistics hub it had lost in the fall of 2022.

Yuri, the commander of the 44th Brigade in Kupiansk, said his aerial reconnaissance units spot many long-range targets, including Russian mortars and grenade launchers, but because they don’t have enough ammunition, they can’t hit them.

Instead, he has no choice but to watch how his enemy accumulates reserves at a distance.

Oleksandr, the commander of a battalion of the 32nd Brigade in Kupiansk said he had just enough shells - for now.

“But it depends on the intensity from the Russian side. If they increase it, it won’t be enough to hold this line,” he said.



To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
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To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)

Cash is the lifeblood of the Gaza Strip’s shattered economy, and like all other necessities in this war-torn territory — food, fuel, medicine — it is in extremely short supply.

With nearly every bank branch and ATM inoperable, people have become reliant on an unrestrained network of powerful cash brokers to get money for daily expenses and commissions on those transactions have soared to about 40%.

"The people are crying blood because of this," said Ayman al-Dahdouh, a school director living in Gaza City. "It’s suffocating us, starving us."

At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families — some of whom have begun to sell their possessions to buy essential goods.

The cash that is available has even lost some of its luster. Palestinians use the Israeli currency, the shekel, for most transactions. Yet with Israel no longer resupplying the territory with newly printed bank notes, merchants are increasingly reluctant to accept frayed bills.

Gaza’s punishing cash crunch has several root causes, experts say.

To curtail Hamas’ ability to purchase weapons and pay its fighters, Israel stopped allowing cash to enter Gaza at the start of the war. Around the same time, many wealthy families in Gaza withdrew their money from banks and then fled the territory. And rising fears about Gaza’s financial system prompted foreign businesses selling goods into the territory to demand cash payments.

As Gaza’s money supply dwindled and civilians’ desperation mounted, cash brokers' commissions — around 5% at the start of the war — skyrocketed.

Someone needing cash transfers money electronically to a broker and moments later is handed a fraction of that amount in bills. Many brokers openly advertise their services, while others are more secretive. Some grocers and retailers have also begun exchanging cash for their customers.

"If I need $60, I need to transfer $100," said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. "This is the only way we can buy essentials, like flour and sugar. We lose nearly half of our money just to be able to spend it."

In 2024, inflation in Gaza surged by 230%, according to the World Bank. It dropped slightly during the ceasefire that began in January, only to shoot up again after Israel backed out of the truce in March.

Cash touches every aspect of life in Gaza

About 80% of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now. Those with jobs are mostly paid by direct deposits into their bank accounts.

But "when you want to buy vegetables, food, water, medication -- if you want to take transportation, or you need a blanket, or anything — you must use cash," al-Dahdouh said.

Shahid Ajjour’s family has been living off of savings for two years after the pharmacy and another business they owned were ruined by the war.

"We had to sell everything just to get cash," said Ajjour, who sold her gold to buy flour and canned beans. The family of eight spends the equivalent of $12 every two days on flour; before the war, that cost less than $4.

Sugar is very expensive, costing the equivalent of $80-$100 per kilogram (2.2 pounds), multiple people said; before the war, that cost less than $2.

Gasoline is about $25 a liter, or roughly $95 a gallon, when paying the lower, cash price.

Bills are worn and unusable

The bills in Gaza are tattered after 21 months of war.

Money is so fragile, it feels as if it is going to melt in your hands, said Mohammed al-Awini, who lives in a tent camp in southern Gaza.

Small business owners said they were under pressure to ask customers for undamaged cash because their suppliers demand pristine bills from them.

Thaeir Suhwayl, a flour merchant in Deir al-Balah, said his suppliers recently demanded he pay them only with brand new 200-shekel ($60) bank notes, which he said are rare. Most civilians pay him with 20-shekel ($6) notes that are often in poor condition.

On a recent visit to the market, Ajjour transferred the shekel equivalent of around $100 to a cash broker and received around $50 in return. But when she tried to buy some household supplies from a merchant, she was turned away because the bills weren’t in good condition.

"So the worth of your $50 is zero in the end," she said.

This problem has given rise to a new business in Gaza: money repair. It costs between 3 and 10 shekels ($1-$3) to mend old bank notes. But even cash repaired with tape or other means is sometimes rejected.

People are at the mercy of cash brokers

After most of the banks closed in the early days of the war, those with large reserves of cash suddenly had immense power.

"People are at their mercy," said Mahmoud Aqel, who has been displaced from his home in southern Gaza. "No one can stop them."

The war makes it impossible to regulate market prices and exchange rates, said Dalia Alazzeh, an expert in finance and accounting at the University of the West of Scotland. "Nobody can physically monitor what’s happening," Alazzeh said.

A year ago, the Palestine Monetary Authority, the equivalent of a central bank for Gaza and the West Bank, sought to ease the crisis by introducing a digital payment system known as Iburaq. It attracted half a million users, or a quarter of the population, according to the World Bank, but was ultimately undermined by merchants insisting on cash.

Israel sought to ramp up financial pressure on Hamas earlier this year by tightening the distribution of humanitarian aid, which it said was routinely siphoned off by militants and then resold.

Experts said it is unclear if the cash brokers’ activities benefit Hamas, as some Israeli analysts claim.

The war has made it more difficult to determine who is behind all sorts of economic activity in the territory, said Omar Shabaan, director of Palthink for Strategic Studies, a Gaza-based think tank.

"It's a dark place now. You don't know who is bringing cigarettes into Gaza," he said, giving just one example. "It's like a mafia."

These same deep-pocketed traders are likely the ones running cash brokerages, and selling basic foodstuffs, he said. "They benefit by imposing these commissions," he said.

Once families run out of cash, they are forced to turn to humanitarian aid.

Al-Farra said that is what prompted him to begin seeking food at an aid distribution center, where it is common for Palestinians to jostle over one other for sacks of flour and boxes of pasta.

"This is the only way I can feed my family," he said.