NUNZIUM

News That Matters

23.10.2023
THEME: WORLD

A Year of Annexation: Ukraine's Transformation and Escalating Tensions

One year ago, Russia's annexation of the Ukrainian regions of Donetsk, Kherson, Luhansk, and Zaporizhzhya sent shockwaves around the world. This contentious act, referred to by Russia as the "accession of new regions," was marked on September 30. However, for the inhabitants of the "People's Republics" in the Donbas region and the other annexed Ukrainian territories, the term "accession" carries a much heavier connotation, especially following Russia's 2022 invasion.

The annexation has resulted in a mass exodus of 1 to 2 million people fleeing the harsh living conditions under Russian rule. The Ukrainian hryvnia has been replaced by the ruble in Donetsk and Luhansk, and real estate prices have soared, with a two-bedroom apartment that cost $8,000 to $10,000 in fall 2021 now selling for $25,000 to $30,000 in Luhansk.

The annexation has made life challenging for those without a Russian passport, which has become a necessity for accessing basic services such as healthcare, employment, pensions, and property registration. Ukrainian educators teaching in Russian schools face severe penalties, including imprisonment and a ban from teaching.

Despite the war-ravaged landscape, urban beautification projects have been initiated in Donetsk and Luhansk, particularly in Mariupol, a city heavily damaged by the Russian army in spring 2022. UN estimates indicate that 90% of Mariupol's apartment buildings and 60% of single-family homes were damaged in the conflict.

On the military front, Ukraine utilized US-supplied long-range ATACMS missiles for the first time, marking a significant shift in the Biden administration's policy. This action resulted in the destruction of nine helicopters at Russian bases in eastern Ukraine, reportedly causing numerous Russian casualties.

Meanwhile, Ukrainian forces continue to resist Russian advances, particularly around the Ukrainian-held towns of Avdiivka, Kupyansk, and Lyman. Ukraine is also attempting to regain territory in the east and south, despite the ongoing conflict.

The economic impact of the war is apparent, with Russia increasing its defense spending significantly, thereby straining its economy. The proposed 2024 Russian budget shows a 68% increase in defense spending compared to 2023, constituting about 6% of the country's GDP, while the budgets for education and healthcare remain stagnant, effectively decreasing in real terms due to inflation.

In response to the conflict, the European Union foreign ministers have considered a proposal for long-term financial commitments to provide military aid to Ukraine. The proposal suggests an annual contribution of up to €5 billion ($5.3 billion) for Ukraine from 2024 to 2027.

Ukrainian President Volodymyr Zelensky has been active on the international stage, meeting with the UN, US Congress, the White House, and making a visit to Canada. In a joint press conference with Canadian Prime Minister Justin Trudeau, the idea of using the Central Bank of Russia's assets to support Ukraine was suggested.

As we reflect on the first anniversary of the annexation, the world watches closely. The lives of ordinary citizens in the annexed regions have been drastically altered by the reality of living under Russian rule and the constant threat of conflict, painting a grim picture of life in these areas. The world remains hopeful for a resolution that brings peace and stability to the region.