
Ukraine's drone attack halts work at electronic plant in Chuvashia, Russia says
(Reuters) -Production was temporarily suspended at an electronics company in Russia's Volga river region of Chuvashia, some 1,300 km (800 miles) from the border with Ukraine, after two drones fell on the plant's territory, the head of the region said on Monday.
The strike - among the deepest into Russia by a Ukrainian drone in more than three years of the war - caused no casualties, Chuvashia Governor Oleg Nikolayev said in a statement on the Telegram messaging app.
But "the responsible decision was made to temporarily suspend production to ensure the safety of employees" of the VNIIR enterprise where the drones fell, Nikolayev said.
It was not immediately clear whether the drones caused any damage. Nikolayev said that another drone fell onto some fields in the area of the capital of the region, Cheboksary.
The Russian defence ministry - which reports only how many drones were destroyed not how many Ukraine launched - said on Telegram that its units downed two drones over Chuvashia. In total, it said, air defence systems destroyed 49 Ukrainian drones overnight over Russia.
According to photos and videos on unofficial Russian and Telegram news channels, the drones sparked a fire at the VNIIR plant that they said produces components for electronic warfare. Reuters could not independently verify the reports.
There was no immediate comment from Ukraine. Kyiv has often said that its attacks inside Russia are aimed at destroying infrastructure key to Moscow's war efforts and are in response to the continued Russian strikes on Ukraine.
The VNIIR Russian Scientific Research Design and Technological Institute of Relay Engineering with experimental production in Chuvashia is on the U.S. sanctions list, according to the U.S. Treasury website.
A Ukrainian drone attack on the Voronezh region that borders Ukraine damaged a gas pipeline, cutting off gas supplies to 22 clients, the region's governor, Alexander Gusev, said on the Telegram.
(Reporting by Lidia Kelly in Melbourne; Editing by Jamie Freed and Kim Coghill)
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Sun
14 minutes ago
- The Sun
China's May exports slow, deflation deepens as tariffs biteS
BEIJING: China's export growth slowed to a three-month low in May as U.S. tariffs slammed shipments, while factory-gate deflation deepened to its worst level in two years, heaping pressure on the world's second-largest economy on both the domestic and external fronts. U.S. President Donald Trump's global trade war and the swings in Sino-U.S. trade ties have in the past two months sent Chinese exporters, along with their business partners across the Pacific, on a roller coaster ride and hobbled world growth. Underscoring the U.S. tariff impact on shipments, customs data showed that China's exports to the U.S. plunged 34.5% year-on-year in May in value terms, the sharpest drop since February 2020, when the outbreak of the COVID-19 pandemic upended global trade. Total exports from the Asian economic giant expanded 4.8% year-on-year in value terms in May, slowing from the 8.1% jump in April and missing the 5.0% growth expected in a Reuters poll, customs data showed on Monday, despite a lowering of U.S. tariffs on Chinese goods which had taken effect in early April. Imports dropped 3.4% year-on-year, deepening sharply from the 0.2% decline in April and worse than the 0.9% downturn expected in the Reuters poll. Exports had surged 12.4% year-on-year and 8.1% in March and April, respectively, as factories rushed shipments to the U.S. and other overseas manufacturers to avoid Trump's hefty levies on China and the rest of the world. While exporters in China found some respite in May as Beijing and Washington agreed to suspend most of their levies for 90 days, tensions between the world's two largest economies remain high and negotiations are underway over issues ranging from China's rare earths controls to Taiwan. Trade representatives from China and the U.S. are meeting in London on Monday to resume talks after a phone call between their top leaders on Thursday. 'Export growth was likely stalled by heavy customs inspections in May due to tightened export control efforts,' said Xu Tianchen, senior economist at the Economist Intelligence Unit, noting that rare earth exports nearly halved last month, while electric machinery exports also slowed significantly. China's imports from the U.S. also lost further ground, dropping 18.1% from a 13.8% slide in April. Zichun Huang, economist at Capital Economics, expects the slowdown in exports growth to 'partially reverse this month, as it reflects the drop in U.S. orders before the trade truce,' but cautions that shipments will be knocked again by year-end due to elevated tariff levels. China's May trade surplus came in at $103.22 billion, up from the $96.18 billion the previous month. Other data, also released on Monday, showed China's import of crude oil, coal, and iron ore dropped last month, underlining the fragility of domestic demand at a time of rising external headwinds. Beijing in May rolled out a series of monetary stimulus measures, including cuts to benchmark lending rates and a 500 billion yuan low-cost loan program for supporting elderly care and services consumption. The measures are aimed at cushioning the trade war's blow to an economy that relied on exports in its recovery from the pandemic shocks and a protracted property market slump. China's markets showed muted reaction to the data. The blue-chip CSI300 Index and the benchmark Shanghai Composite Index were up around 0.2%. Deflationary pressures Producer and consumer price data, released by the National Bureau of Statistics on the same day, showed that deflationary pressures worsened last month. The producer price index fell 3.3% in May from a year earlier, after a 2.7% decline in April and marked the deepest contraction in 22 months, while consumer prices extended declines, having dipped 0.1% last month from a year earlier. Cooling factory activity also highlights the impact of U.S. tariffs on the world's largest manufacturing hub, dampening faster services growth as suspense lingers over the outcome of U.S.-China trade talks. Sluggish domestic demand and weak prices have weighed on China's economy, which has struggled to mount a robust post-pandemic recovery and has relied on exports to underpin growth. Retail sales growth slowed last month as spending continued to lag amid job insecurity and stagnant new home prices. U.S. coffee chain Starbucks said on Monday it would lower prices of some iced drinks by an average of 5 yuan in China. The core inflation measure, excluding volatile food and fuel prices, registered a 0.6% year-on-year rise, slightly faster than a 0.5% increase in April. However, Capital Economics Huang said the improvement in core prices looks 'fragile', adding 'we still think persistent overcapacity will keep China in deflation both this year and next.'


The Sun
15 minutes ago
- The Sun
China's Exports to U.S. Plunge 34.5% Amid Tariffs
BEIJING: China's export growth slowed to a three-month low in May as U.S. tariffs slammed shipments, while factory-gate deflation deepened to its worst level in two years, heaping pressure on the world's second-largest economy on both the domestic and external fronts. U.S. President Donald Trump's global trade war and the swings in Sino-U.S. trade ties have in the past two months sent Chinese exporters, along with their business partners across the Pacific, on a roller coaster ride and hobbled world growth. Underscoring the U.S. tariff impact on shipments, customs data showed that China's exports to the U.S. plunged 34.5% year-on-year in May in value terms, the sharpest drop since February 2020, when the outbreak of the COVID-19 pandemic upended global trade. Total exports from the Asian economic giant expanded 4.8% year-on-year in value terms in May, slowing from the 8.1% jump in April and missing the 5.0% growth expected in a Reuters poll, customs data showed on Monday, despite a lowering of U.S. tariffs on Chinese goods which had taken effect in early April. Imports dropped 3.4% year-on-year, deepening sharply from the 0.2% decline in April and worse than the 0.9% downturn expected in the Reuters poll. Exports had surged 12.4% year-on-year and 8.1% in March and April, respectively, as factories rushed shipments to the U.S. and other overseas manufacturers to avoid Trump's hefty levies on China and the rest of the world. While exporters in China found some respite in May as Beijing and Washington agreed to suspend most of their levies for 90 days, tensions between the world's two largest economies remain high and negotiations are underway over issues ranging from China's rare earths controls to Taiwan. Trade representatives from China and the U.S. are meeting in London on Monday to resume talks after a phone call between their top leaders on Thursday. 'Export growth was likely stalled by heavy customs inspections in May due to tightened export control efforts,' said Xu Tianchen, senior economist at the Economist Intelligence Unit, noting that rare earth exports nearly halved last month, while electric machinery exports also slowed significantly. China's imports from the U.S. also lost further ground, dropping 18.1% from a 13.8% slide in April. Zichun Huang, economist at Capital Economics, expects the slowdown in exports growth to 'partially reverse this month, as it reflects the drop in U.S. orders before the trade truce,' but cautions that shipments will be knocked again by year-end due to elevated tariff levels. China's May trade surplus came in at $103.22 billion, up from the $96.18 billion the previous month. Other data, also released on Monday, showed China's import of crude oil, coal, and iron ore dropped last month, underlining the fragility of domestic demand at a time of rising external headwinds. Beijing in May rolled out a series of monetary stimulus measures, including cuts to benchmark lending rates and a 500 billion yuan low-cost loan program for supporting elderly care and services consumption. The measures are aimed at cushioning the trade war's blow to an economy that relied on exports in its recovery from the pandemic shocks and a protracted property market slump. China's markets showed muted reaction to the data. The blue-chip CSI300 Index and the benchmark Shanghai Composite Index were up around 0.2%. Deflationary pressures Producer and consumer price data, released by the National Bureau of Statistics on the same day, showed that deflationary pressures worsened last month. The producer price index fell 3.3% in May from a year earlier, after a 2.7% decline in April and marked the deepest contraction in 22 months, while consumer prices extended declines, having dipped 0.1% last month from a year earlier. Cooling factory activity also highlights the impact of U.S. tariffs on the world's largest manufacturing hub, dampening faster services growth as suspense lingers over the outcome of U.S.-China trade talks. Sluggish domestic demand and weak prices have weighed on China's economy, which has struggled to mount a robust post-pandemic recovery and has relied on exports to underpin growth. Retail sales growth slowed last month as spending continued to lag amid job insecurity and stagnant new home prices. U.S. coffee chain Starbucks said on Monday it would lower prices of some iced drinks by an average of 5 yuan in China. The core inflation measure, excluding volatile food and fuel prices, registered a 0.6% year-on-year rise, slightly faster than a 0.5% increase in April. However, Capital Economics Huang said the improvement in core prices looks 'fragile', adding 'we still think persistent overcapacity will keep China in deflation both this year and next.'


New Straits Times
an hour ago
- New Straits Times
China's May exports slow, deflation deepens as tariffs bite
BEIJING: China's export growth slowed to a three-month low in May as US tariffs slammed shipments, while factory-gate deflation deepened to its worst level in two years, heaping pressure on the world's second-largest economy on both the domestic and external fronts. US President Donald Trump's global trade war and the swings in Sino-US trade ties have in the past two months sent Chinese exporters, along with their business partners across the Pacific, on a roller coaster ride and hobbled world growth. Underscoring the US tariff impact on shipments, customs data showed that China's exports to the US plunged 34.5 per cent year-on-year in May in value terms, the sharpest drop since February 2020, when the outbreak of the COVID-19 pandemic upended global trade. Total exports from the Asian economic giant expanded 4.8 per cent year-on-year in value terms in May, slowing from the 8.1 per cent jump in April and missing the 5 per cent growth expected in a Reuters poll, customs data showed on Monday, despite a lowering of US tariffs on Chinese goods which had taken effect in early April. Imports dropped 3.4 per cent year-on-year, deepening sharply from the 0.2 per cent decline in April and worse than the 0.9 per cent downturn expected in the Reuters poll. Exports had surged 12.4 per cent year-on-year and 8.1 per cent in March and April, respectively, as factories rushed shipments to the US and other overseas manufacturers to avoid Trump's hefty levies on China and the rest of the world. While exporters in China found some respite in May as Beijing and Washington agreed to suspend most of their levies for 90 days, tensions between the world's two largest economies remain high and negotiations are underway over issues ranging from China's rare earths controls to Taiwan. Trade representatives from China and the US are meeting in London on Monday to resume talks after a phone call between their top leaders on Thursday. "Export growth was likely stalled by heavy customs inspections in May due to tightened export control efforts," said Xu Tianchen, senior economist at the Economist Intelligence Unit, noting that rare earth exports nearly halved last month, while electric machinery exports also slowed significantly. China's imports to the US also lost further ground, dropping 18.1 per cent from a 13.8 per cent slide in April. Zichun Huang, economist at Capital Economics, expects the slowdown in exports growth to "partially reverse this month, as it reflects the drop in US orders before the trade truce," but cautions that shipments will be knocked again by year-end due to elevated tariff levels. China's May trade surplus came in at US$103.22 billion, up from the US$96.18 billion the previous month. Other data, also released on Monday, showed China's import of crude oil, coal, and iron ore dropped last month, underlining the fragility of domestic demand at a time of rising external headwinds. Beijing in May rolled out a series of monetary stimulus measures, including cuts to benchmark lending rates and a 500 billion yuan low-cost loan program for supporting elderly care and services consumption. The measures are aimed at cushioning the trade war's blow to an economy that relied on exports in its recovery from the pandemic shocks and a protracted property market slump. China's markets showed muted reaction to the data. The blue-chip CSI300 Index and the benchmark Shanghai Composite Index were up around 0.2 per cent. DEFLATIONARY PRESSURES Producer and consumer price data, released by the National Bureau of Statistics on the same day, showed that deflationary pressures worsened last month. The producer price index fell 3.3 per cent in May from a year earlier, after a 2.7 per cent decline in April and marked the deepest contraction in 22 months, while consumer prices extended declines, having dipped 0.1 per cent last month from a year earlier. Cooling factory activity also highlights the impact of US tariffs on the world's largest manufacturing hub, dampening faster services growth as suspense lingers over the outcome of US-China trade talks. Sluggish domestic demand and weak prices have weighed on China's economy, which has struggled to mount a robust post-pandemic recovery and has relied on exports to underpin growth. Retail sales growth slowed last month as spending continued to lag amid job insecurity and stagnant new home prices. US coffee chain Starbucks said on Monday it would lower prices of some iced drinks by an average of 5 yuan in China. The core inflation measure, excluding volatile food and fuel prices, registered a 0.6 per cent year-on-year rise, slightly faster than a 0.5 per cent increase in April. However, Capital Economics Huang said the improvement in core prices looks "fragile", adding "we still think persistent overcapacity will keep China in deflation both this year and next."