Moscow Tightens Economic Grip on Southern Ukraine

File Photo: Ukrainian soldiers search for bodies in the debris at the military school hit by Russian rockets the day before, in Mykolaiv, southern Ukraine, on March 19, 2022. (Bulent Kilic/AFP)
File Photo: Ukrainian soldiers search for bodies in the debris at the military school hit by Russian rockets the day before, in Mykolaiv, southern Ukraine, on March 19, 2022. (Bulent Kilic/AFP)
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Moscow Tightens Economic Grip on Southern Ukraine

File Photo: Ukrainian soldiers search for bodies in the debris at the military school hit by Russian rockets the day before, in Mykolaiv, southern Ukraine, on March 19, 2022. (Bulent Kilic/AFP)
File Photo: Ukrainian soldiers search for bodies in the debris at the military school hit by Russian rockets the day before, in Mykolaiv, southern Ukraine, on March 19, 2022. (Bulent Kilic/AFP)

Little appears to have changed for Alexei Andrusenko, the head of a foundry in Ukraine's southern city of Berdyansk, who is happy to have kept all his staff since Moscow took control of the city.

Andrusenko and his 50 or so employees continue showing up to work every morning to the grey building in the outskirts of the port city on the shores of the Sea of Azov.

But now the factory's produce -- once sold to Ukrainian or international steel groups -- will likely be bound for Russia and Kremlin ally Belarus, AFP said.

Since Russia sent troops into Ukraine on February 24 and captured territories in the south of the pro-Western country, Moscow has sought to strengthen their economic ties.

"We have no other supply chain," Andrusenko told AFP during a press trip organized by the Russian army.

He also raised concerns about the depleting stocks of their raw materials that previously came from neighboring Mariupol, another key Ukrainian city on the shores of the Sea of Azov.

Andrusenko says they are "interested" in working with the Alchevsk steelworks, a large factory with over 10,000 employees that since 2014 has been under the control of pro-Russian separatists of eastern Ukraine's Lugansk region.

Before Russia sent troops to Ukraine, these deals would never have been possible.

"The most important thing is to build the right supply chain and to be able to work," Andrusenko said.

- Port '100 percent ready' -
The southern Ukrainian regions of Kherson and Zaporizhzhia have been largely under Russia's control since the first weeks of Moscow's military campaign, and are now being forcefully integrated into Russia's economy.

The main economic asset of Berdyansk is its port, which has remained mostly intact unlike that of Mariupol, the scene of a devastating siege.

In late March, an attack attributed to Ukrainian forces reportedly sank a Russian warship in Berdyansk waters, but today the port is "almost 100 percent ready" to ship grain, says Alexander Saulenko, the Moscow-installed head of Berdyansk.

Ukraine has accused Russia and its allies of stealing its wheat, contributing to a global food shortage caused by grain exports blocked in Ukrainian ports.

According to Saulenko, grain will soon be shipped out from the port, since silos will need to be freed up for the new harvest.

"We have prospects for contracts with Turkey. Russia is an agricultural country, it has enough grain of its own so it would be more profitable to trade elsewhere," Saulenko said.

But the most tangible influence of Moscow on the local economy is the introduction of Russia's national currency since last month.

"Now you can buy everything in both rubles and hryvna," Ukraine's currency, the pro-Russian official added.

According to him, Berdyansk received some 90 million rubles ($1.7 million) from Russia, but state employees are still paid in hryvna and it is impossible to withdraw cash rubles from ATMs.

- Ties with Russia 'resuming' -
Neighbouring Melitopol, about 100 kilometres (60 miles) west of Berdyansk that came under Russian control on March 1, also uses the Russian ruble that is delivered from Crimea, the Black Sea peninsula Moscow annexed from Ukraine in 2014.

"It's a two-currency zone.... The ruble is delivered thanks to the open road to Crimea. Commercial ties with Russia, interrupted after 2014, are resuming," says Melitopol's pro-Russian mayor, Galina Danilchenko.

"People are happy to accept the ruble... I don't see any problems," she added, but for reporters on the press trip it was difficult to speak freely with the city's residents.

Back at the Berdyansk foundry, 41-year-old worker Sergey Grigoryev says he just hopes to get paid his salary.

"In cash, not to my card, because you can't withdraw from it. In hryvnas or in rubles -- I don't care".



Large Earthquake Hits Battered Vanuatu

A vehicle is trapped beneath a collapsed building following a strong earthquake in Port Vila, Vanuatu, December 17, 2024, in this screengrab taken from a social media video. Jeremy Ellison/via Reuters
A vehicle is trapped beneath a collapsed building following a strong earthquake in Port Vila, Vanuatu, December 17, 2024, in this screengrab taken from a social media video. Jeremy Ellison/via Reuters
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Large Earthquake Hits Battered Vanuatu

A vehicle is trapped beneath a collapsed building following a strong earthquake in Port Vila, Vanuatu, December 17, 2024, in this screengrab taken from a social media video. Jeremy Ellison/via Reuters
A vehicle is trapped beneath a collapsed building following a strong earthquake in Port Vila, Vanuatu, December 17, 2024, in this screengrab taken from a social media video. Jeremy Ellison/via Reuters

A magnitude-6.1 earthquake rattled buildings on Vanuatu's main island early Sunday but did not appear to have caused major damage, five days after a more powerful quake wreaked havoc and killed 12 people.

The nation's most populous island, Efate, is still reeling from the deadly 7.3-magnitude temblor on Tuesday, which toppled concrete buildings and set off landslides in and around the capital of Port Vila.

The latest quake occurred at a depth of 40 kilometers (25 miles) and was located some 30 kilometers west of the capital, which has been shaken by a string of aftershocks.

No tsunami alerts were triggered when the temblor struck at 2:30 am Sunday (1530 GMT Saturday).

Port Vila businessman Michael Thompson told AFP the quake woke his family.

"It gave a better bit of a shake and the windows rattled a little bit, it would have caused houses to rattle," he said.

"But you know, no movement other than a few inches either way, really. Whereas the main quake, you would have had like a meter and a half movement of the property very, very rapidly and suddenly.

"I'd describe this one as one of the bigger aftershocks, and we've had a fair few of them now."

Thompson said there was no sign of further damage in his immediate vicinity.

The death toll remained at 12, according to government figures relayed late Saturday by the United Nations' humanitarian affairs office.

It said 210 injuries had been registered while 1,698 people have been temporarily displaced, citing Vanuatu disaster management officials.

Mobile networks remained knocked out, making outside contact with Vanuatu difficult and complicating aid efforts.

In addition to disrupting communications, the first quake damaged water supplies and halted operations at the capital's main shipping port.

The South Pacific nation declared a seven-day state of emergency and a night curfew following the first quake.

It announced Saturday it would lift a suspension on commercial flights in an effort to restart its vital tourism industry.

The first were scheduled to arrive on Sunday.

Rescuers Friday said they had expanded their search for trapped survivors to "numerous places of collapse" beyond the capital.

- Still searching -

Australia and New Zealand this week dispatched more than 100 personnel, along with rescue gear, dogs and aid supplies, to help hunt for trapped survivors and make emergency repairs.

There were "several major collapse sites where buildings are fully pancaked", Australia's rescue team leader Douglas May said in a video update on Friday.

"We're now starting to spread out to see whether there's further people trapped and further damage. And we've found numerous places of collapse east and west out of the city."

Thompson said power had been restored to his home on Saturday but said many others were still waiting.

"We're hearing a lot of the major businesses are still down, supermarkets are trying to open back up," he said.

"So this is very different to what's happened with disasters here in the past.

"Cyclones destroy everything outside, whereas earthquakes really destroy a lot of infrastructure inside the buildings."

Vanuatu, an archipelago of some 320,000 inhabitants, sits in the Pacific's quake-prone Ring of Fire.

Tourism accounts for about a third of the country's economy, according to the Australia-Pacific Islands Business Council.