March 16, 2023 Russia-Ukraine news

Russian President Vladimir Putin has accused the West of hitting Russia with a "sanctions war," which he blamed for the country's decline in GDP. 

He made the comments at an annual congress of the Russian Union of Industrialists and Entrepreneurs — his first address to the business community since the start of the war in Ukraine

Russia was shifting its economy toward countries that had not introduced sanctions, he added, urging business leaders to help build a new Russian economy and thanking them for their efforts to help the Russian state.

“Russian entrepreneurs always have — in the pre-Revolutionary era, in the last decade — played a big constructive role in Russia, undertaking great responsibilities in developing new territories, social protection, and charity. And (they) have always been rightly proud of this. They have been the pride of our country,” Putin said. 

Russia now has more opportunities than before Western sanctions were introduced, President Vladimir Putin said at the annual congress of the Russian Union of Industrialists and Entrepreneurs Thursday.

Despite some "systemic issues with logistics, finances and technologies," huge opportunities are opening up in the country for almost any area of activity, Putin said about the Russian economy's resilience.

He went on to say those who had remained in Russia turned out to be "smarter" compared to the citizens who had left the country. “Those who stayed here and really work turned out to be smarter, more energetic, more efficient than those who left and give advice to our ill-wishers.”

Official figures show the Russian economy contracted 2.1% last year — less than anticipated after nearly a year of tough western sanctions. However, rising expenditures and declining revenues have led to a $34 billion budget deficit, according to the finance ministry.

The fallout from Tuesday's encounter between a Russian fighter jet and a US surveillance drone continues, with new footage showing how the warplane damaged the drone and ultimately forced the US to bring down the drone into the Black Sea.

In Ukraine, fighting in the eastern city of Bakhmut continues as Ukrainian forces show no sign of retreating from the area.

Here are the latest headlines:

US Vice President Kamala Harris Wednesday night rebuffed Florida Gov. Ron DeSantis’ recent comments that US support for Ukraine is not a “vital” national interest.

“If you really understand the issues, you probably would not make statements like that,” she said during her appearance on “The Late Show with Stephen Colbert.”

She said that understanding comes “when you’ve had the experience of meeting and understanding the significance of international rules and norms, and the importance of the United States of America standing firm and clear about the significance of sovereignty and territorial integrity, the significance of standing firm against any nation that would try to take by force another nation."

Some background: On Monday, DeSantis, who has not yet announced a presidential bid, said in a statement responding to a questionnaire from Fox News’ Tucker Carlson that “while the US has many vital national interests … becoming further entangled in a territorial dispute between Ukraine and Russia is not one of them.”

The explosions at the Security Service building in the Russian city of Rostov were caused by an electrical short-circuit, Vasily Golubev, governor of the Rostov region, said.

It was "determined that the cause of the fire was a short circuit in the electrical wiring inside the building. The spreading fire caused explosions of containers with fuel and lubricants," Golubev said. "The fire spread over an area of 800 square meters (8611 square feet), resulting in the collapse of two walls."

Golubev said that one victim had been hospitalized with moderate injuries.

Earlier, social media video showed a large fire in the southern Russian city, geolocated by CNN to the vicinity of a building used by the Russian Federal Security Service (FSB).

Footage released by US European Command Thursday morning of the dramatic encounter between a US drone and Russian fighter jet over the Black Sea “absolutely confirms” that there was a physical collision and dumping of fuel, a senior US official has told CNN.

However, the video does not confirm the Russian pilot's intent.

“Don’t know,” the official said on the key question of whether the Russian pilot actually intended to strike the US drone’s propeller.

The official did say that there’s no question that the footage confirms that Russian fighter jets were engaging in “aggressive flying” and “recklessness,” echoing what other US officials have been saying consistently over the last few days.

According to two US officials familiar with the intelligence, senior officials at the Russian Ministry of Defense gave the order for the Russian fighter jets to harass the US drone over the Black Sea this week.

The high-level military officials’ connection to the incident suggests that the fighter jet pilots were not taking rogue action when they interfered with the US drone.

But there is no indication that high-level political leaders in Russia – particularly those in the Kremlin, including President Vladimir Putin — knew about the planned aggression in advance, one of the US officials said.

Some background: US officials and their Russian counterparts have been in an open dispute over what transpired that led to the downing of a US drone over the Black Sea.

CNN's Kylie Atwood and Natasha Bertrand contributed reporting.

Britain believes that the best way to protect Moldova from a Russian attack is not by sending it military support, but by protecting Ukraine, according to Foreign Minister James Cleverly.

"We strongly believe that one of the best ways of protecting Moldova from physical attack is helping the Ukrainians defend themselves against Russian aggression," Cleverly said Thursday at a press conference during an official state visit to Moldova.

The visit is part of the United Kingdom’s plan to announce additional financial support for Moldova and Georgia.

Moldova is set to receive more than $12 million (£10 million) in "funding for economic and governance reforms, including in the energy sector.”

“The new pledge for Moldova comes on top of the £12 million (over 14 million dollars) already contributing to critical anti-corruption and transparency work in the country,” a UK government statement said Thursday.

Cleverly will also announce a more than $600,000 (£500,000) contribution “aimed at creating an environment for free and fair elections in 2024, protecting them from external interference.”

“The UK is ramping up its financial support to Moldova and Georgia, as they continue to suffer from the destabilising impact of Putin’s illegal invasion of Ukraine,” the statement said. 

Social media video shows a large fire in the southern Russian city of Rostov on Don, geolocated by CNN to the vicinity of a building used by the Russian Federal Security Service (FSB).

The video shows thick plumes of black smoke rising from the area.

It is unclear what caused the blaze, and Russian authorities have not yet issued any comment on the fire.

Russian state news agency RIA Novosti reported that "a building with garages and a warehouse is on fire near the Border Guard of the Federal Security Service of Russia in the Rostov Region."

"People were evacuated," adds the report, citing a source from the emergency services.

The agency did not comment on the cause of the fire. 

Yevgeny Prigozhin, the combative boss of Russia’s Wagner private military group, relishes his role as an anti-establishment maverick, but signs are growing that the Moscow establishment now has him pinned down and gasping for breath.

Prigozhin placed a bet on his mercenaries raising the Russian flag in the eastern Ukrainian city of Bakhmut, albeit at a considerable cost to the ranks of his force and probably to his own fortune.

He spent heavily on recruiting as many as 40,000 prisoners to throw into the fight, but after months of grinding battle and staggering losses he is struggling to replenish Wagner’s ranks, all the while accusing Russia’s Ministry of Defense of trying to strangle his force.

Many analysts think his suspicions are well-founded – that Russia’s military establishment is using the Bakhmut “meat-grinder” to cut him down to size or eliminate him as a political force altogether.

Read the full analysis here.