Ukraine Accuses Russia of Using Nuclear Plant for Deadly Rocket Attack

This handout picture taken and released by Ukrainian State Emergency Service on August 8, 2022 shows a lyceum in Dnipropetrovsk region destroyed by Russian shelling amid Russia's military invasion of Ukraine. (AFP)
This handout picture taken and released by Ukrainian State Emergency Service on August 8, 2022 shows a lyceum in Dnipropetrovsk region destroyed by Russian shelling amid Russia's military invasion of Ukraine. (AFP)
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Ukraine Accuses Russia of Using Nuclear Plant for Deadly Rocket Attack

This handout picture taken and released by Ukrainian State Emergency Service on August 8, 2022 shows a lyceum in Dnipropetrovsk region destroyed by Russian shelling amid Russia's military invasion of Ukraine. (AFP)
This handout picture taken and released by Ukrainian State Emergency Service on August 8, 2022 shows a lyceum in Dnipropetrovsk region destroyed by Russian shelling amid Russia's military invasion of Ukraine. (AFP)

Ukraine accused Russia on Wednesday of exploiting its capture of a nuclear power plant to fire rockets at a nearby town in an attack that killed at least 13 people and wounded many others.

The town Ukraine says Russia targeted - Marhanets - is one Moscow says its foes have used in the past to shell Russian soldiers at the Zaporizhzhia plant, which they seized in March.

Ukraine and Russia have accused each other of imperiling the plant, Europe's largest nuclear complex, with attacks nearby.

After the United Nations' atomic energy watchdog sounded the alarm over a potential nuclear disaster, the Group of Seven leading industrialized countries on Wednesday told Russia to hand back the plant to Ukraine.

There are no indications that their demand will sway Moscow, which on Wednesday received powerful endorsement from China of its rationale for the Feb. 24 invasion of Ukraine.

Beijing's ambassador to Moscow, Zhang Hanhui, accused Washington of backing Russia into a corner with repeated expansions of the western-led NATO military alliance and support for Ukraine's alignment with the European Union.

"As the initiator and main instigator of the Ukrainian crisis, Washington, while imposing unprecedented comprehensive sanctions on Russia, continues to supply arms and military equipment to Ukraine," Zhang was quoted as saying.

"Their ultimate goal is to exhaust and crush Russia with a protracted war and the cudgel of sanctions."

Beijing is also involved in a standoff with the United States over Taiwan: China has been conducting huge military drills around the self-ruled island it claims as its own since the visit of US House Speaker Nancy Pelosi

Russia has not commented on the Ukrainian allegations of an attack on Marhanets and Reuters could not independently verify Kyiv's version. Moscow says it does not deliberately target civilians in what it calls its "special military operation" aimed at safeguarding its security against NATO expansion.

Ukraine and the West accuse Moscow of waging an unprovoked imperial-style war of aggression.

New Russian ground force?

Andriy Yermak, President Volodymyr Zelenskiy's chief of staff, said Russia was launching attacks with impunity from Zaporizhzhia knowing it was risky for Ukraine to fight back.

"The cowardly Russians can't do anything more so they strike towns ignobly hiding at the Zaporizhzhia atomic power station," he said on social media

Ukraine says around 500 Russian troops with heavy vehicles and weapons are at the plant, where Ukrainian technicians continue to work.

Ukraine's state nuclear power firm has warned that containers with radioactive material might be shelled and said it is vital Kyiv retake the plant by winter. It accuses Russia of wanting to connect the facility to its power grid.

Russia says its forces are behaving responsibly and ensuring the complex's safety.

Valentyn Reznychenko, governor of Ukraine's central Dnipropetrovsk region, said on Wednesday that the Russian attack on Marhanets was carried out with 80 Grad rockets.

More than 20 buildings had been damaged in the town on the other side of the Dnipro river from the power plant, he said.

Images supplied by Ukrainian officials showed the rubble-strewn corridor of a school with its windows blown out and a residential building pierced by a rocket.

The war has crushed Ukraine's economy, but there was some relief on Wednesday when overseas creditors backed Kyiv's request for a two-year freeze on payments on almost $20 billion in international bonds. That should avert a messy default.

Ukraine said that would save around $5 billion as it manages its dwindling financial resources.

"The two-year debt freeze makes sense because even if the war ends soon, Ukraine's situation is not going to improve overnight," said Stuart Culverhouse, chief economist at London-based research firm Tellimer. "Creditors were even surprised that the country decided to be current on the bonds until now."

In another rare positive for Ukraine, the United Nations said it expects to see a big uptick in applications for ships to export its grain under a mediated deal intended to unblock exports and ease global shortages and price hikes.

Britain, which is helping Ukraine with arms, intelligence and training, said on Wednesday it believed Russia had "almost certainly" established a major new ground force to back its war.

The new 3rd Army Corps was based in the city of Mulino, east of Moscow, the British Defense Ministry said in an intelligence bulletin. However, Russia would struggle to build up the numbers needed and the new force is unlikely to sway the war, it added.



Despite Sharp Decline, Inflation Remains a Sore Point for Harris

Democratic presidential nominee and US Vice President Kamala Harris delivers a speech at The Alan Horwitz "Sixth Man" Center, a youth basketball facility, as she campaigns in Philadelphia, Pennsylvania, US October 27, 2024. REUTERS/Evelyn Hockstein
Democratic presidential nominee and US Vice President Kamala Harris delivers a speech at The Alan Horwitz "Sixth Man" Center, a youth basketball facility, as she campaigns in Philadelphia, Pennsylvania, US October 27, 2024. REUTERS/Evelyn Hockstein
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Despite Sharp Decline, Inflation Remains a Sore Point for Harris

Democratic presidential nominee and US Vice President Kamala Harris delivers a speech at The Alan Horwitz "Sixth Man" Center, a youth basketball facility, as she campaigns in Philadelphia, Pennsylvania, US October 27, 2024. REUTERS/Evelyn Hockstein
Democratic presidential nominee and US Vice President Kamala Harris delivers a speech at The Alan Horwitz "Sixth Man" Center, a youth basketball facility, as she campaigns in Philadelphia, Pennsylvania, US October 27, 2024. REUTERS/Evelyn Hockstein

For six months or so in 2021, as vaccines paved an economic reopening from the COVID-19 pandemic and fresh waves of federal benefits flowed to household bank accounts, President Joe Biden's administration reaped the benefit with an approval rating pinned above 50%.
It has been mired around 40% ever since, with the scarring impact of subsequently high inflation still cited by voters as a major issue even though the pace of price increases has declined, wages and the economy continue to grow, and the jobless rate remains low, Reuters said.
As good as the economy might seem across most major indicators, inflation that peaked at 9% more than two years ago has been hard for Vice President and Democratic nominee Kamala Harris to outrun, and given former President and Republican candidate Donald Trump a cudgel that remains effective on the eve of the election even as inflation has dwindled to 2.4%.
"Inflation has not faded as an issue," said Justin McCarthy, a spokesperson for Gallup, the polling giant that fields monthly surveys that include an open-ended question, without lists or prompts, of what respondents feel is the "most important" issue facing them. Those citing inflation as the most serious issue has fallen from highs of around 20% during the peak inflation surge in 2022 to around 15% in recent polls, but that remains double the historic norm and is part of broader concern about the economy cited by more than 40% of respondents.
It's an area where Trump continues to hold a polling edge despite Harris' pledges to address issues like high housing costs or the "price gouging" she cites as a cause of high prices in the grocery aisle.
In a recent Reuters/Ipsos poll, 68% of respondents in seven swing states said the cost of living was "on the wrong track," and 61% said the same about the economy. Half said Trump had "a better plan, policy or approach" to managing the economy compared with 37% for Harris, while on inflation Trump was favored 47% to 34%.
In-person voting concludes on Tuesday, with polls showing an overall tight race between Harris and Trump nationally and in the battleground states seen as determining the outcome.
The Biden administration and later the Harris campaign recognized early on the problem inflation posed.
Biden named one of his signature pieces of legislation the "Inflation Reduction Act," though much of it focused on subsidies for electric vehicles and clean energy. As rising rent and housing prices emerged as a particularly acute issue, they launched proposals that included capping rent increases, tax incentives for affordable housing construction, and downpayment help for first-time home buyers.
What they didn't publicize so much is how sticky a problem it would be for the households living through it.
Attitudes improved somewhat as inflation began to ease last year, but the change only went so far.
'UNAMBIGUOUSLY NEGATIVE'
Solutions have been offered by both campaigns, but inflation, the responsibility first and foremost of the Federal Reserve through its management of interest rates and credit conditions, is difficult for elected officials to address.
Republican President Richard Nixon tried the direct route by freezing wage and price increases for 90 days in 1971 and establishing a government panel to approve them after that. Inflation was 4.3% at the time and did fall below 4% in the summer of 1972 as Nixon campaigned for reelection.
But it soared that fall as the controls were eased, and following an embargo by Arab oil exporters in 1973 exceeded 12% by the end of 1974.
When inflation started rising during his term in office, Democratic President Jimmy Carter used a major address in 1978 to announce plans to limit government spending and call for voluntary wage and price limits from business. By the middle of his losing reelection bid against Republican Ronald Reagan prices were rising more than 14% annually.
After two recessions, a period of punishing interest rates imposed by the Fed and its firmer commitment to inflation control, price increases gradually settled close to the 2% level the central bank eventually adopted as its official target - and stayed there until the COVID-19 pandemic.
Economists have sparred over the exact reasons inflation took off beginning in 2021, and if that could have been prevented. But they generally agree on the broad mix. As the pandemic limited spending on in-person services, it also created deep backlogs in the manufacture and delivery of the goods, from bikes to appliances to automobiles, that were suddenly in high demand as a result of roughly $5 trillion in stimulus from the federal government.
The pandemic support began under Trump; Biden added more in a move some economists feel may have supercharged demand beyond what was needed.
It is a debate being litigated in hindsight and in the shadow of a health crisis that lingered long enough - new COVID variants were still suppressing in-person gatherings through 2021 - to even implicate the Fed. Inflation took off in 2021; the central bank did not raise rates until March 2022.
What doesn't seem in doubt is the impact on the public mood, something that shouldn't be a surprise.
Surveys about inflation have been consistent in finding that price shocks register deeply and are not quickly forgotten.
"Inflation significantly complicates household decision-making, which is seen as its most critical consequence," researchers Alberto Binetti of Bocconi University and Francesco Nuzzi and Stefanie Stantcheva of Harvard University concluded from the results of an online survey of 2,264 people conducted between March and May. "This complexity affects daily economic choices" and adds to economic uncertainty.
Nor do people seem to care much if, as has happened recently and Democrats have tried to emphasize, wages rise faster than prices.
"Inflation is perceived as an unambiguously negative phenomenon without any potential positive economic correlates," they found, with people expecting it to be fixed "without significant trade-offs."