Monday, 22 August 2022

State Bank of Pakistan leaves policy rate unchanged

State Bank of Pakistan (SBP) decided to leave the policy rate unchanged at 15% which was in line with market expectations. SBP had cumulatively raised the policy rate by 800bps to 15% since September 2021 to cool down overheating of economy and contain current account deficit.

Further, administrative measures for import control were also taken recently and fiscal consolidation is also planned for FY23.

Inflation in July 2022 increased to 25%YoY as against 21% in June 2022, but broadly remained in line with what SBP had anticipated earlier.

Trade deficit in July 2022 also fell sharply (halved to US$2.7 billion and global commodity prices have also started coming down which will improve our external account situation.

Pakistan also secured additional financing of US$4 billion from friendly countries over and above the available financing to Pakistan.  

After securing additional funding of US$4 billion, revival of IMF program is also in sight as its Board meeting for the approval of Pakistan’s next tranche is scheduled on August 29, 2022.

SBP keeping in view the impact of these decisions like moderation in domestic demand and improvement in external account, decided to keep the policy rate unchanged. 

SBP maintained its inflation forecast of 18% to 20% for FY23. It also anticipates it to improve to 5% to 7% by the end of FY24.

SBP expects GDP growth for FY23 to be in the range of 3% to 4% as against growth of 6% last year.

Current Account deficit is projected to be around 3% of GDP or US$10 billion) in FY23 as against US$17 billion or 4% of GDP in FY22. 

The SBP Monetary Policy Committee promises to continue to remain data driven and pay attention on inflation expectations, development on fiscal & external front, global commodity prices and interest rates decisions by major central banks.

Foreign exchange reserves are likely to increase to US$16 billion by FY23. This will be driven by additional financing that will be available to Pakistan in FY23. This will also be dependent upon Pakistan following key measures agreed with IMF and remaining on track with the program.

Pakistan’s gross financing needs would be around US$30 billion for FY23 which includes Current Account Deficit and debt repayments.

Available financing against this is estimated at US$37 billion for FY23, which has increased after Pakistan secured US$4 billion of financing from friendly countries.    

Financing of US$4 billion includes US$2 billion from Qatar, US$1 billion of deferred oil facility from Saudi Arabia, and US$1 billion investment from UAE. 

Pakistan’s short term external debt constitute around 6% of the total external debt hence maturity profile of Pakistan external debt is not an issue. However, low private sector flows like FDI and portfolio investment is a key concern. 

FY23 budget targets a primary surplus, on the back of significantly higher tax revenue. It envisages a strong fiscal consolidation of around 3% of GDP as per SBP.

 

Bangladesh Selects RSGT to Operate Patenga Container Terminal

Bangladesh has selected Red Sea Gateway Terminal (RSGT), to operate the new US$240 million Patenga Container Terminal (PCT) now nearing completion at Chittagong, the country’s main port.

RGST, which operates the largest terminal facility in Saudi Arabia at Jeddah Islamic Port, was selected by Bangladesh’s Ministry of Transport.

The Port of Chittagong, recently renamed as Chattogram, handled a record 3.2 million teu in 2021, and is the busiest port in the Bay of Bengal, serving as gateway for 90% of Bangladesh’s import and export ocean cargo. The majority of import shipments are destined for the capital, Dhaka, 265 km (165 miles) away.

"The port also serves as the main gateway for Bangladesh’s fast-growing exports including its garments trade, one of the largest globally. The new facility, being built by the Bangladeshi government, will feature a 600 meter quay and will be able to handle three vessels simultaneously, augmenting the ship handling capacity at Chattogram port," an RSGT statement said.

In 2017, the Government of Bangladesh adopted a “Policy for Implementing Private Public Partnerships (PPP) Projects through Government to Government Partnerships (G2G)”, RSGT said. In February, the Bangladeshi Ministry of Shipping proposed a plan for the development of PCT based on the PPP model to the Saudi government which in turn nominated RSGT as the Saudi investor. 

 “We are extremely pleased to have been selected for this opportunity. The rapid growth of Chittagong Port’s cargo volumes necessitates further investment in modern equipment, advanced technology and building new human capacity,” said RSGT’s director of global investments, Gagan Seksaria.

“This project fits well with Red Sea Gateway Terminal’s competencies and its expansion strategy for emerging markets. We are very confident that, through this investment, we will be able to contribute significantly to Bangladesh’s fast-growing trade and economy.”

A 2019 study by the Asian Development Bank (ADB) into loan assistance it had provided to Chittagong Port Authority's development plans found that the port’s strategic location made it an appropriate alternative to other ports in the region.

“Much work still needs to be done before the full potential of Chittagong Port’s gateway function for third-country trade... can materialize. The project’s envisaged outcome of increased container capacity was achieved,” it said.

“However, the project’s enhanced facilities were not able to accommodate the boom in international trade. Chittagong Port is still beset with lingering congestion problems and the new facilities have not been able to keep abreast with the growing demand for port services.”

In 2021, RSGT announced the sale of a 40% equity stake worth US$280 million to China’s Cosco Shipping Ports Limited (CSPL) and Saudi Arabia’s Public Investment Fund (PIF). “Working closely with PIF and CSPL, we will accelerate our shared vision, further strengthen our customer offering, and elevate our mandate to meet the increasing demand for terminal and logistics services," Jens O. Floe, CEO of RSGT, said.

Sunday, 21 August 2022

Pakistan must take cue from China

State Bank of Pakistan (SBP) is scheduled to announce its policy rate today (Monday, August 22, 2022). While some of the analysts are demanding a reduction in the interest rate, others fear the central bank may increase the rate. 

If the newly appointed SBP Governor, Jameel Ahmed, is serous in accelerating Pakistan’s GDP growth rate, he must reduce interest rate. Let me reiterate once again that Pakistan suffers from cost-pushed inflation. Therefore, reduction in interest rate is a must for easing inflation.

The SBP Monetary Policy Committee must take a cue from China. It has reduced benchmark lending rates on today, adding to easing measures announced last week. This is one of the signs that Beijing is stepping up efforts to spur credit demand in an economy hobble by a property crisis and a resurgence of COVID infections.

The one-year loan prime rate (LPR) was lowered by 5 basis points to 3.65% at the central bank's monthly fixing, while the five-year LPR was slashed by a bigger margin of 15 basis points to 4.30%.

In a Reuters poll conducted last week, 25 out of 30 respondents predicted a 10-basis-point reduction to the one-year LPR. All of those in the poll also projected a cut to the five-year tenor, including 90% of them forecasting a reduction larger than 10 bps.

Most new and outstanding loans in China are based on the one-year LPR, which is now loosely pegged to the central bank's medium-term lending facility (MLF) rate, while the five-year rate influences the pricing of mortgages.

 

Saturday, 20 August 2022

US fabricating excuses for not releasing frozen assets of Afghan central bank

On the first anniversary of Taliban takeover of Afghanistan, the Biden administration announced that it will not release US$3.5 billion in frozen Afghan funds.

“An American official said the United States could not guarantee that the money would not fall into terrorist hands, so it has ruled out releasing it anytime soon,” reported The New York Times.

Tom West, the State Department’s Special Representative for Afghanistan, told journalists in Washington that he did “not see recapitalization of the Afghan central bank as a near-term option”.

Taliban’s “sheltering of Ayman al Zawahiri reinforces deep concerns we have regarding diversion of funds to terrorist groups,” he added.

A National Security Council (NSC) spokesperson told CNN, “There has been no change” in efforts to get the funds to the Afghan people, but Ayman al Zawahiri’s presence in Kabul had a direct impact on how the administration deals with the Taliban.

“The recent revelations of Taliban’s flagrant violation of the Doha agreement illustrate the importance of remaining clear-eyed in our dealings with the Taliban. Our approach to the future of these assets will continue to reflect that reality,” the NSC spokesperson said.

The New York Times noted that the Biden administration outlined its position on the funds on the one-year anniversary of the takeover of Afghanistan by Tali­ban and just over two weeks after an American drone strike killed Ayman al Zawahiri

West pointed out that the American officials had engaged for months with the central bank about how to shore up Afghanistan’s economy but had not secured persuasive guarantees that the money would not fall into terrorist hands.

“We do not have confidence that the institution has the safeguards and monitoring in place to manage assets responsibly,” West said in a statement reported by The Wall Street Journal. “And needless to say, Taliban’s sheltering of Al Qaeda leader Ayman al Zawahiri reinforces deep concerns we have regarding diversion of funds to terrorist groups.”

At a State Department news briefing, spokesman Ned Price said the administration was searching for alternative ways to use the money to help Afghans at a time when millions are afflicted by a growing hunger crisis.

The Washington Post noted that a year after withdrawing US troops, “the Biden administration wields scant leverage in Afghanistan as it struggles to assist needy Afghans, evacuate US allies and protect women’s rights in a nation where it once held unparalleled sway”.

It pointed out that US officials were now working with Islamic organizations and nations including Qatar and the United Arab Emirates as they seek to employ the few tools they have to influence the Taliban government — sanctions and travel bans, and the promise of potential diplomatic recognition — in hopes of preventing terrorist attacks, helping US-linked Afghans emigrate and recovering an American hostage”.

 

US Commits a Perfect Murder in Kabul

The theatrics of the July 31 airstrike in Kabul momentarily at least distracted attention from the miserable picture Biden drew for himself as a weak, ineffectual POTUS (The President of the United States.

Eleven days after the US President Joe Biden’s dramatic announcement of August 01 regarding the killing of Ayman al-Zawahiri, Moscow has broken its silence. Ten days back, Russian Foreign Ministry spokesperson Maria Zakharova had replied to a query that Moscow was yet to get the details on what had happened on July 31.

Revisiting the topic during yesterday’s MFA press briefing, in response to a follow-up question, the deputy spokesperson Ivan Nechayev has stated, “We do not undertake to confirm the authenticity about the destruction in Kabul on July 31 this year as a result of a drone strike of the leader of Zawahiri.”

No doubt, this is a very carefully worded Russian statement that focuses on the reliability of Biden’s version. Indeed, Biden got away scot-free since he made the announcement from the White House without taking any questions from the media.

Nechayev pointed out, “Washington has not provided the public with any evidence of the elimination of this terrorist.” And he merely took note of media reports that the apartment building hit by the Americans in Kabul belonged to the “Haqqani clan”.

However, Nechayev offered that the first conclusions can be drawn on the basis of the official comments of the authorities in Kabul — they have no information about Zawahiri’s stay in the Afghan capital.

Russia has traditionally kept a robust intelligence system working on Afghanistan providing real time inputs to Moscow, including during the Taliban rule from 1996-2001, when the Russian embassy and consulates remained closed.

In fact, Russian sources were far ahead of others in sharing the details of former Ashraf Ghani’s hasty evacuation from Kabul on August 15 last year amidst the chaotic arrival of the Taliban in the city.

Ghani apparently chose to keep even his hand-picked vice-president and super spy Amrullah Saleh in the dark that he was fleeing with his wife and then national security advisor Hamdullah Mohib.

Therefore, it is a reasonable surmise that Nechayev probably spoke on what security experts would call a need-to-know basis. That makes his remarks doubting the authenticity of Biden’s remarks truly astounding. It is as good as saying that Moscow has received conflicting reports.

However, Nechayev plunged the knife deep and raised some very pertinent questions in this strange case of a murder without evidence. He commented, “Such aggressive actions of the US Air Force, which invaded the sovereign territory of Afghanistan, raise a number of serious questions.

Nechayev posed two questions, 1) who provided the airspace for the airstrike on Kabul? 2) Who will be responsible in case of collateral civilian casualties during such actions?

Afghanistan shares borders with six countries namely Iran, Turkmenistan, Uzbekistan, Tajikistan, China and Pakistan.

It is a safe bet that Iran, Turkmenistan, Uzbekistan and China wouldn’t have got involved in such a murderous act by the Americans in violation of international law and UN Charter.

As for Tajikistan, its airspace is under Russian control

That makes Pakistan the only plausible culprit

 

Biden Administration refuses to provide evidence for fear it might put Rawalpindi in a tight spot at a time when the incumbent army chief is a strategic asset for Washington.

There are no easy answers. All we know is that the present Army Chief General Bajwa is known to take a hands-on role in all major issues and most minor issues in Pakistan-US relations.

He even reached out to Wendy Sherman, the US Deputy Secretary of State, with a request seeking her intervention with the IMF to release the pending tranche of financial bailout for Pakistan.

Significantly, Nechayev alluded to attempts to use a real threat to cover up US geopolitical ambitions.

He concluded, “Washington, judging by this incident, prefers to act as it pleases, following strictly in line with its foreign policy benefits, regardless of international law and the national sovereignty of other states.”

What could be the foreign policy benefits here?

There are three ways to look at the question.

First and foremost, Biden burnishes his image as a decisive leader when his incoherent public behavior on numerous occasions lately came to be widely noticed within the US and abroad.

Indeed, Biden’s August 01 remarks were peppered with large dollops of self-praise taking credit for the decapitation of the dreaded al-Qaeda. He projected himself as a “hands-on” president.

Second, the US has created a precedent by this act of July 31 — underscoring its prerogative to act as it chooses on Afghanistan.

Simply put, the Rubicon has been crossed and the US military might has returned to Afghanistan, now that Washington claims that al-Qaeda is very much active in Afghanistan.

Of course, it is a humiliating blow for the Taliban whose two-decade long resistance was all about regaining Afghanistan’s sovereignty.

Furthermore, the door has been firmly shut on any US-Taliban engagement for a foreseeable future, now that Washington doesn’t have to look beyond that to allege a continuing Taliban-al Qaeda nexus.

Logically, the US can even justify joining hands henceforth with the UK and France to extend support to the Panjshiris’ armed rebellion against Taliban.

Taliban faces a pincer move from Pakistani military and the Biden Administration at a time when, ironically, its best supporter, Imran Khan, is also being defanged systematically in a nutcracker by the civilian government in Islamabad and the so-called powers that be.

Of course, keeping Afghanistan in turmoil would serve the US and Nato interests at the present juncture when Russia, the provider of security for Central Asia, is preoccupied with the Ukraine conflict, and China is brooding over Taiwan’s reunification.

Third, the timing, Biden struck when only about 24 hours were left for House Speaker Nancy policy’s plane to descend on Taipei.

The fiction that Washington propagated to the effect that the Administration had no control over the Speaker had, ironically, boomeranged, casting Biden in a poor light as a commander-in-chief who could not even order a military plane to change direction.

Suffice to say, the theatrics of the July 31 airstrike in Kabul momentarily at least distracted attention from the miserable picture Biden drew for himself as a weak, ineffectual POTUS.

All in all, this indeed becomes a perfect murder, worthy of being a sequel to the Michael Douglas-Gwyneth Paltrow crime thriller on a murder that left no clue to trace the perpetrators. By the way, the pleasurable 1998 film also had two alternate endings. The viewer was at liberty to choose which version was found more agreeable.

Courtesy: South Asia Journal

Dying Ukrainians Thriving US Military Complexes

It is becoming evident that the United States has succeeded in initiating an anti-Russian mood in Europe through an unprecedented information war. At this time it is difficult to assess who is the winner and who is the loser. In my opinion the winners are arms suppliers, especially the US military complexes. 

I also believe the biggest losers are people of Ukraine, Europe and in fact the entire world. Parts of Ukraine are in ruins and millions of people have been displaced. In the seven decades since the destruction caused by World War II, Europe managed to establish itself as a region of peace and development, but United States has imposed a proxy war on it, which is not in its interest.

Ever since Russia-Ukraine conflict started, the United States has sent billions of US dollars military aid Ukraine to fight its proxy was against Russia. The massive arms transfer includes a wide range of weapons, from anti-armor missiles to helicopters and beyond.

With the constant flow of news about the war, it can be hard to keep track of all these weapons packages. However, Responsible Statecraft has put together a timeline of every arms shipment that has been announced since the war began.

Before having a look at this timeline, it is important to note a couple of things. First, this list only contains publicly announced information. The Pentagon has admitted to sending at least one type of missile that was never mentioned in their press releases, so there’s reason to believe that this list is not exhaustive. Second, there are two different sources for these lethal aid packages. One, which has made up the vast majority of transfers to date, is known as a “presidential drawdown.” This means that the White House and Pentagon agree to send weapons to Ukraine from the US stockpiles, after which DoD can use the funds to replenish their stocks by purchasing new arms from defense contractors.

Biden has used this authority in an unprecedented 18 times to send weapons to Ukraine, with most of the funding coming from money that Congress has set aside to arm Kyiv.

The other source of weapons is the Ukraine Security Assistance Initiative (USAI). This is a special fund within the Pentagon’s budget that is used to purchase new weapons from contractors rather than drawing from existing stockpiles. Transfers from these funds do not require additional approval from Congress.

Following is a timeline of major weapons shipment or funding announced since February 24, 2022


August 08

The Pentagon announced that it will send $1 billion worth of security assistance to Ukraine via presidential drawdown, including:

— HIMARS ammunition (This is an acronym for High Mobility Artillery Rocket System. These mobile missile launchers can fire a wide range of munitions, including rocket artillery and short-range ballistic missiles.)

— Artillery ammunition

— Javelin missiles and other anti-armor weapons


August 01

The Pentagon announced an additional $550 million of security aid via presidential drawdown, including:

— HIMARS ammunition

— Artillery ammunition


July 22

The Pentagon announced that it will send $270 million of military aid to Ukraine, with $175 million authorized via presidential drawdown and the other $95 million coming via USAI funds. This included:

— Four additional HIMARS 

— HIMARS ammunition

— Four Command Post vehicles (These can be used as a tactical operations center or an armored ambulance, among other things.)

— Tank gun ammunition

— Phoenix Ghost drones (These are a type of “loitering munitions,” or a weapons that can wait in the air for extended periods of time before attacking a target. This was created by the United States for use in Ukraine.)


July 08

The Pentagon announced an additional $400 million of military assistance via presidential drawdown, including:

— Four additional HIMARS

— HIMARS ammunition

— Artillery ammunition


July 1

The Pentagon announced that it will send $820 million of security aid, with $50 million authorized via presidential drawdown and the remaining $770 million coming via USAI funds. This included:

— HIMARS ammunition

— Two National Advanced Surface-to-Air Missile Systems (NASAMS) (This system launches missiles to defend against various types of aircraft, including drones.)

— Artillery ammunition


June 23

The Pentagon announced an additional $450 million in military assistance via presidential drawdown, including:

— Four HIMARS

— Artillery ammunition

— Grenade launchers

— Patrol boats


June 15

The Pentagon announced an additional $1 billion in lethal aid, with $350 million authorized via presidential drawdown and $650 million coming from USAI funds. This included:

— Howitzers (This is a popular long-range artillery weapon.)

— Artillery ammunition 

— HIMARS ammunition

— Two Harpoon coastal defense systems (These launch missiles that fly just above the surface of the water to attack planes and ships.)


June 01

The Pentagon announced an additional $700 million in military assistance via presidential drawdown, including:

— HIMARS

— HIMARS ammunition

— Javelin missiles and other anti-armor weapons

— Artillery ammunition

— Four Mi-17 helicopters (These can be used for transport or combat.)


May 19

The Pentagon announced $100 million in lethal aid via presidential drawdown, including:

— Howitzers

On the same day, Congress passed a $40 billion aid package for Ukraine, roughly half of which was earmarked for military assistance.


May 06

The Pentagon announced $150 million in military aid via presidential drawdown, including:

— Artillery ammunition


April 21

DoD announced $800 million in further aid via presidential drawdown, including:

— Howitzers

— Artillery ammunition

— Phoenix Ghost drones


April 13

The Pentagon announced that it will send an additional $800 million in military assistance via presidential drawdown, including:

— Howitzers

— Artillery ammunition

— Switchblade drones (This is another form of loitering munition.)

— Javelin missiles and other anti-armor weapons

— Armored personnel carriers

— 11 Mi-17 helicopters

— Various types of explosives


April 06

The Pentagon announced an addition $100 million in aid via presidential drawdown, including:

— Javelin anti-armor systems


April 01

DoD announced that it will send $300 million in lethal aid using USAI funds, including:

— Laser-guided rocket systems

— Switchblade drones

— Puma surveillance drones

— Anti-drone systems 

— Armored vehicles


March 16

The Pentagon announced that it will send $800 million worth of military aid via presidential drawdown. The exact contents of this package are unclear, but it likely included Mi-17 helicopters, Javelin missiles, and Stinger anti-aircraft missiles.


March 12

The White House announced that it will send $200 million in lethal aid via presidential drawdown, including:

— Javelin missiles 

— Stinger missiles


March 10

Congress approved $13.6 billion in aid to Ukraine, roughly half of which was earmarked for military assistance.


February 25

The White House announced that it will send $350 million in military aid via presidential drawdown, including:

— Anti-armor weapons

— Small arms


 

Friday, 19 August 2022

Ukraine: Unpleasant Truth

On July 17 this year I posted a blog demanding, West must stop its unconditional support for Zelensky. Today I am presenting excerpts from a report by Amnesty International, which also supports my mantra.

Ukrainian forces have threatened civilians by setting up bases and operating weapons systems in populated areas, including schools and hospitals, as they battled the Russian intervention that began in February, Amnesty International said in a statement.

“Such a tactic violates international humanitarian law and endangers civilians, as it turns civilian objects into military targets. The Russian strikes that followed in populated areas killed civilians and destroyed civilian infrastructure,” the statement said.

Amnesty International has documented a pattern of Ukrainian forces putting civilians at risk and violating the laws of war when conducting operations in populated areas – said Agnes Callamard, Secretary General of Amnesty International.

He pointed out that the defensive position does not free the Ukrainian army from respecting international humanitarian law.

The organization’s researchers spent several weeks from April to July investigating Russian attacks in Kharkiv, Donbass and the Mykolaiv region.

The organization inspected the attacked sites, interviewed survivors, eyewitnesses, relatives of the victims of the attack, and carried out remote detection and analysis of weapons.

During those investigations, evidence was found that Ukrainian forces were firing from heavily populated areas and were themselves inside civilian buildings in 19 towns and villages in these regions. The organization analyzed satellite images to further confirm some of these incidents – it is emphasized.

According to Amnesty International, most of the residential areas where the soldiers were located were kilometers away from the front.

Viable alternatives were available that would not endanger civilians, such as military bases or densely wooded areas nearby, or other structures further away from residential areas. In the cases it has documented, Amnesty International is not aware that the Ukrainian military, located in civilian structures in residential areas, asked or helped civilians to evacuate, which is a failure to take all feasible precautions to protect civilians.

Amnesty says survivors and eyewitnesses of Russian attacks in Donbass, Kharkiv and the Mykolaiv region told researchers that the Ukrainian military was conducting operations near their homes at the time of the attacks, exposing the areas to counterfire from Russian forces. Amnesty International researchers have witnessed such behavior in numerous locations.

International humanitarian law requires all parties to a conflict to avoid locating, to the greatest extent possible, military targets within or near densely populated areas. Other obligations to protect civilians from the effects of attacks include removing civilians from the vicinity of military targets and providing effective warning of attacks that may affect the civilian population.

The army was stationed in the house next to ours and my son often brought food to the soldiers. I begged him several times to stay away, because I feared for his safety. That afternoon, when the attack happened, my son was in our yard and I was in the house. He died on the spot. His body was mutilated. Our house was partially destroyed – said the mother of a man (50), who was killed in a rocket attack on June 10 in a village south of Nikolaev.

Nikola, who lives in the block in Lisichansk in Donbass, which the Russians regularly targeted and killed at least one person, said that it is not clear to him why our army fires from the cities and not from the fields.

Another resident said that “there is definitely military activity in the neighborhood.”

Amnesty International teams saw soldiers using residential buildings located 20 meters from the entrance to the underground shelter, which was used by residents and where an elderly man was killed.

In one Donbas town on May 06, Russian forces used cluster munitions over a neighborhood of mostly one- or two-story houses where Ukrainian forces were manning artillery. Shrapnel damaged the walls of the house where Ana (70) lives with her son and 95-year-old mother.

In early July, a farm worker was injured when Russian forces attacked an agricultural warehouse in the Nikolayev area. Hours after the attack, Amnesty International researchers witnessed the presence of Ukrainian military personnel and vehicles in the grain storage area, and witnesses confirmed that the military was using the warehouse, which is located across from a farm where civilians live and work.

As researchers surveyed damage to residential and public buildings in Kharkiv and villages in the Donbass and east of Mykolaiv, they heard gunfire from nearby Ukrainian military positions.

In Bakhmut, several residents said the Ukrainian military was using a building barely 20 meters across the street from the high-rise. On May 18, a Russian rocket hit the front of the building, partially destroying five apartments and damaging nearby buildings.

Amnesty International researchers witnessed Ukrainian forces using hospitals as de facto military bases in five locations. In the two cities, dozens of soldiers rested and ate in hospitals. In another town, soldiers fired from near a hospital.

A Russian airstrike on April 28 injured two workers at a medical laboratory in the suburbs of Kharkiv after Ukrainian forces set up a base in the compound. Using hospitals for military purposes is a clear violation of international humanitarian law.

The Ukrainian army routinely set up bases in schools in the cities and villages of the Donbass and in the Mykolaiv region. Schools have been temporarily closed to students since the beginning of the conflict, but in most cases the buildings were located near civilian settlements.

In 22 of the 29 schools visited, researchers either found soldiers using the premises or found evidence of current or previous military activity – including the presence of military equipment, ammunition, military ration packs and military vehicles.

Russian forces attacked many schools used by Ukrainian forces. In at least three cities, after Russian bombing of schools, Ukrainian soldiers moved to other schools nearby, putting surrounding neighborhoods at risk of similar attacks.

In a city east of Odessa, Amnesty witnessed Ukrainian soldiers using civilian areas for accommodation and staging areas, including basing armored vehicles under trees in residential areas and using two schools located in densely populated residential areas.