The Russian ruble experienced a decline below the symbolic 100-to-the-dollar threshold before showing a slight recovery in early Tuesday trading. This depreciation was attributed to foreign currency outflows and a reduction in the country’s current account surplus.

In August, the ruble had previously fallen into triple digits, prompting the Bank of Russia to implement an emergency interest rate hike of 350 basis points to 12%. Additionally, discussions were held about reinstating currency controls to support the ruble.

As of 0605 GMT, the ruble was trading 0.4% weaker against the dollar at 99.41, reaching as low as 100.2550 during early trading, marking its lowest point in over seven weeks. On the other hand, it had strengthened by 0.8% against the euro, trading at 104.11, and gained 0.3% against the yuan, reaching 13.56.

Brent crude oil, a key global benchmark for Russia’s exports, saw a 1.1% decrease, reaching $89.70 per barrel, its lowest level in nearly a month, though still above its 2023 average.

At the beginning of each month, the Russian ruble typically faces pressure due to the absence of the supportive month-end tax period, during which exporters typically convert foreign exchange revenues to meet local obligations.

Promsvyazbank analysts noted that while expensive oil and a higher key interest rate are positive factors for the ruble’s outlook in the medium term, they expected the ruble to briefly exceed the 100-to-the-dollar mark unless the authorities introduced new support measures.

Also Read: Kharkiv to build Ukraine’s first underground school to protect children

As the ruble slid to 101.75 per dollar in August, President Vladimir Putin’s economic advisor criticized the central bank, attributing the decline to its loose policy stance and indicating growing internal discord.

Following the emergency rate hike in August, the central bank raised interest rates again in September to 13%. Given the persistent inflationary pressures, analysts surveyed by Reuters anticipate further monetary policy tightening at the next central bank meeting on October 27.

The ruble’s value has experienced a turbulent trajectory since Russia invaded Ukraine in February 2022. It reached a record low of 120 against the dollar in March of the same year before rebounding to its highest level in over seven years, supported by capital controls and increased export revenue. However, declining exports, influenced by Western sanctions, changing trade patterns, and increased imports this year have led to the ruble’s depreciation. Russia’s current account surplus shrank by 86% year-on-year to $25.6 billion in the period from January to August.

Kharkiv, Ukraine’s second-largest city, is set to construct the nation’s inaugural fully subterranean school to protect its students from frequent bomb and missile assaults by Russia, as revealed by the city’s mayor.

Mayor Ihor Terekhov conveyed on the Telegram messaging app, “This shelter will provide a safe environment for thousands of Kharkiv children to continue their in-person education even in the face of missile threats.”

Amid the ongoing conflict, many schools in frontline areas have resorted to online teaching. However, before the school year starts on September 1st, Kharkiv has devised an innovative solution by establishing approximately 60 separate classrooms within its metro stations. This initiative has created space for over 1,000 students to attend classes underground.

Kharkiv, with a pre-war population of over 1.4 million, is within 35 kilometers (20 miles) of the Russian border. It has frequently endured Russian rocket and missile attacks, often striking before residents can reach safety shelters.

Amid last year’s intense bombing, around 160,000 people took refuge on the spacious platforms and in the expansive corridors of Kharkiv’s underground metro system. Among them, as reported by Kharkiv’s head of education, Olha Demenko, were 7,000 children. She mentioned, “We engaged in activities like games and singing with them during that period, and as the new school year approached, we pondered if we could organize this more effectively.”

Also Read: EU’s Top Diplomat Dismisses Concerns Over Long-Term Support for Ukraine

Mayor Terekhov emphasized that the new school would adhere to the latest regulatory standards for protective structures, ensuring that thousands of Kharkiv children can continue their in-person education safely, even in the face of missile threats. Details regarding the size and opening date of the school were not immediately available.

Terekhov further assured that funding for schools in the city would not be reduced “by a single hryvnia” for the current year or the next, underscoring that “Kharkiv boasts the most intellectually vibrant community in Ukraine” due to its educational prowess.

In the 24 hours leading up to Monday, a civilian man lost his life, and several houses sustained damage as a result of Russian shelling and rocket attacks, according to Oleh Sinehubov, the governor of the Kharkiv region, of which the city of Kharkiv serves as the administrative center.

The ongoing war, with no resolution in sight, has claimed numerous lives and displaced millions of civilians. Ukraine’s Ministry of Education reports that 363 educational institutions have been destroyed, and nearly 3,800 have been damaged nationwide.

On Monday, the European Union’s foreign policy chief led a delegation of top diplomats on an unannounced visit to Kyiv. During this visit, concerns about political tension within the EU regarding its long-term support for Ukraine in its fight against Russia were dismissed.

While the meeting held symbolic significance, it emphasized the EU’s unwavering commitment to Ukraine throughout its 19-month-long conflict with Russia, as stated by Josep Borrell, the EU’s foreign policy chief. He affirmed that the EU remained united in supporting Ukraine, with no member state wavering in their engagement.

This gathering marked the first occasion where EU foreign ministers met outside the EU, especially in a war zone, according to Borrell. The meeting occurred following the recent election victory in EU member Slovakia by former Prime Minister Robert Fico, whose pro-Russian stance raised questions about the EU’s ongoing support for Kyiv.

The potential for increased tension within the EU regarding Ukraine was also noted, similar to Hungary’s at-times reserved approach towards Kyiv due to its close ties with Moscow. Budapest has opposed supplying arms and economic assistance to Ukraine, while Slovakia is crucial in transporting Western military equipment to Ukraine via a key rail line.

The EU, the United States, and the United Kingdom have been providing substantial military and financial support to Ukraine, essential for its struggling economy. However, there is growing uncertainty about how long these allies will continue to provide aid worth billions of dollars (euros).

President Joe Biden reassured allies of continued U.S. financial support for Ukraine’s war effort, but there have been challenges in gaining approval for Ukraine assistance in Congress as the conflict persists.

Also Read: Ukrainian Intelligence Successfully Recruits Russian Officer Who Assisted 11 Soldiers’ Defection to Ukraine

Borrell emphasized the EU’s commitment to sustained engagement with Ukraine, listing ongoing and proposed obligations, including military aid, troop training, and potential joint arms industry ventures. Other forms of support include cyber defense, demining programs, and law enforcement reforms to combat corruption. The most robust security commitment is the potential EU membership for Ukraine, although this may take years, given the ongoing conflict.

Both Ukraine and the EU expressed determination to move forward as quickly as possible, taking into account ongoing reforms in Ukraine. Ukrainian Foreign Minister Dmytro Kuleba also assured that discussions were held with representatives from both parties in Congress to ensure continued support from the U.S.

Kremlin spokesman Dmitry Peskov expressed confidence in continued U.S. involvement in the conflict while banking on the eventual decline of international support for Kyiv. UK Defense Secretary Grant Shapps reaffirmed the British commitment to support Ukraine.

Borrell highlighted that Ukraine President Volodymyr Zelenskyy’s 10-point peace proposal remained under discussion by international leaders. The plan calls for Russia’s complete withdrawal from Ukrainian territory, establishing a special tribunal to prosecute Russian war crimes, and creating a European-Atlantic security architecture with guarantees for Ukraine.

The Institute for the Study of War, a Washington-based think tank, suggested that the path to peace required inflicting an unequivocal military defeat on Russia and then rebuilding Ukraine, an effort that would need sustained Western support.

Associated Press writers Raf Casert made contributions to this story in Brussels, Geir Moulson in Berlin, Yuras Karmanau in Tallinn, Estonia, Jill Lawless in Manchester, England, and Josh Boak in Washington.

The Main Intelligence Directorate of the Ukrainian Defense Ministry has successfully executed a covert mission code-named “Barynya,” resulting in recruiting a regular Russian military serviceman. Andriy Yusov, a representative of the Military Intelligence Directorate, disclosed the operation’s details, as reported by Ukrinform.

“In the wake of the Barynya covert operation, Lieutenant Danilo Vladimirovich Alferov, a Russian regular military serviceman, made the decision to defect to the Ukrainian side. His collaboration with Ukraine’s Security and Defense Forces and the Main Intelligence Directorate has been active since June 2023. Alferov successfully convinced and voluntarily transferred 11 Russian servicemen into captivity in multiple groups. When Alferov’s life was endangered, Ukraine conducted a specialized operation to ensure his safe passage to Ukrainian territory,” stated Yusov.

Also Read: Ukraine Hosts Defense Industry Forum to Boost War Weapon Production

According to Yusov, Alferov was safely transported to Ukrainian-controlled territory by the Ukrainian Special Operations Forces. The Russian serviceman initiated contact with the Ukrainian military through the “I Want to Live” project.

“I was approached by the Ukrainian side to identify Russian military servicemen interested in surrendering as prisoners under the ‘Wish to Live’ initiative. During our collaboration, I successfully facilitated the surrender of three groups of soldiers. When suspicions began to arise, I informed my handler from ‘I Want to Live’ that I was leaving. Upon arrival in Ukrainian territory and meeting with the Ukrainian Special Operations Forces, I underwent the standard procedures prescribed for Russian military personnel who surrender as prisoners,” added Alferov.

On August 23, it was revealed that the Military Intelligence Directorate, in partnership with the Ukrainian National Guard, managed to “relocate” a Russian Mi-8 combat helicopter along with critical cargo and documentation to an airfield in the Kharkiv region. The preparations for this operation spanned six months. Maxim Kuzminov, the pilot who cooperated with the Ukrainian side, is currently residing in Ukraine with his family, while other members of the crew tragically lost their lives.