a camp in the russian control town of bessie men, ukrainian officials, again accused rusher of violating as these fire. meanwhile, ukraine is saying it's here to rush and wash it, which has burst into flames. the micro frigate is said to have been sailing close to snake island in the black sea. if confirmed the frigate would be the 2nd major naval lost during the russian offensive, ukrainian forces struck and sank, rushes flagship naval vessel, moskva in april. or pentagon spokesman john kirby could not confirm this strike on the ship. but neither would he say whether the action was a result of us supplied intelligence. we provide them what we believe to be relevant and timely information about russian units that call allow them to adjust and execute their, their self defense to the best of their ability. the kind of intelligence that we provide them, it's legitimate, it's lawful and it's limited. and i would also add and this is not an unimportant point. we are not the only sole source of intelligence and information to the ukrainians. they get intelligence from other nations as well. we don't get heads up about their day to day operations, nor, nor do we expect to mean that they're, they're in an active fight and are all the top story today. a new state of emergency has come into effect in sri lanka, giving security forces greater powers to crack down on anti government, protested early police fire war to canon and tear gas. it crowds outside parliament, demonstrations of part of a nationwide strike on friday. they are angry about the country's worst economic crisis for decades. for months now, rankins have been experiencing power costs as well as food fuel and medicine shortages. well, as the headlines this out counting, the cost is coming up next, looking at the use plans for russian, oil and gas, there is no channel that covers world views like we do. the scale of this camp is like nothing you've everything, but we want to know, how do these things affect people? we revisit please state, even when they're no international headline. houses are really invest in that, and that's a privilege. as a journalist, ah, hello, i'm adrian, and again, this is counting the cost on elders 0, your wiki, look at the world of business and economics. this week, the stakes arising at the battle of a rushing energy, putin turns off, the gas taps, and the e. you propose as a panel moscow's oil imports by the end of the year. but what will the energy war cost also this week, russia's rouble hits a 2 year high, and it's so called fortress economy is believed to be holding up so far. but has moscow really, whether the worst of sanctions, netflix loses subscribers for the 1st time in a decade. and cnn plus shuts down its platform just a month off to launch. how viewers had enough that is the whole streaming industry at risk. ah, rushes president vladimir putin is making good on his threat to turn off the supply of natural gas to europe. supplies to bulgaria, and poland have been halted. often. they refuse to pay for gas in roubles. other european countries may also be cut off within weeks. if they to reject russia's demand, the e u as dismissed the move as blackmail that is under pressure to cut the cord on russian energy. the block is proposed a complete ban on all washing oil imports. by the end of the year. we will make sure that we phase out russian oil in an orderly fashion. so in a way that allows us and our partners to secure alternative supply routes. and at the same time, be very careful that we minimize the impact on the global market. with all these steps, we are depriving the russian economy from its ability to diversify and to modernize . putting wanted to wipe out ukraine from the map. and he will clearly not succeed. but natural gas has yet to be targeted with sanctions. russia demanded the european companies pay for gas in euro's to gas, prong bank, which would then convert them into roubles in a secondary account. the ear rejected the ultimatum, saying that it violates sanctions. but several european firms had reportedly opened accounts, outcast prom bank, to meet russia's payment demand, poland, and bulgaria, which refused to pay an rouble say that they could cope without russian gas. sophia says that it's made alternative arrangements while warsaw insist that it's energy supplies are secure. however, other countries could be hit hard if russia cut supplies. germany's gas storage facilities are only $33.00 and a half percent full. italy's at 35 percent and hunger is a just 19.4 percent. but europe in governments, a fast tracking regulation that requires gas stores to be filled to 80 percent capacity before next winter. they've also set a year and deadline to cut 2 thirds of gas imports from russia and plan to eliminate it completely by 2027 or more liquefied natural gas is being shipped from qatar and the u. s. piped natural gas imports from countries like norway and algeria will be increased and the deployment of renewable energy will be accelerated among other measures taken to decrease the dependence on russian energy . russia provides 40 percent of europe's gas and 25 percent of its oil. at a cost of some $850000000.00 a day. and that accounts for at least 40 percent of brushes revenues on the price of gas serviced by as much as 20 percent off. the gas prom suspended deliveries at the euro's value fell below $1.06. for the 1st time in 5 years, europe's leaders said that they can't afford the consequences of an immediate boycott. and the divided over the ban on russian energy imports will as discuss this further with michael bradshaw, professor of global energy at warrick business school. he joins us now from coventry in the u. k. michael european countries can't just stop using wash and gas overnight. and yet, here they are faced with this dilemma of how to keep their supplies going, while not breeching russian sanctions. how they going to do that very difficult. i mean, and i think it's, it's a deliberate ploy. bye bye. glad to drive division. so, you know, there is a very technical issue about how they should make the payments payments to integrate from bank and the european commissions determined that if you, if you do what the russians do, then you are a breach sanctions. actually, i don't think the european politicians want to see the gas stop flowing because the gas situation is pretty, pretty difficult. president pushing as make good on his threat flow to, to, to cut off the gas. he's already done it to bulgaria and to poland, who could be next? well i think they selectively chose those countries in those countries have so they wouldn't follow the payment regime. poland, or decided it wasn't going to renew its contract and russia at the end of the year . and the gary is not a major importer. i think it really determine what will determine this is what happens with the major important places such as germany and italy who are not only highly dependent on russian gas, but it's a large while the gas in their industries are life. i mean, i think that's very good. i was just gonna ask you what all this is going to do to the price of gas as well. we as consumers, does it mean that wherever we are in the world are going to be paying more for natural gas as it? yes, um no, i mean, i think this is affecting this sort of the short term spot market. if you like a lot of the natural gas, it's traded as l n g into asia, he's on long term contracts, and he's actually indexed to the price. it's primarily in europe where we've got a reliance on short term spot markets in the market. so is the very last factor in the price of gas. interesting, the, or also the gas price of gas, though it's much lower in the united states, has been going up because the demand for gas to export to europe. so yes, it will affect every consumer in europe in the united states and eventually in asia, they will also have to door on the spot market. but in the northern hemisphere course meeting in the summer guest amount is. ready lower than what is president putin's strategy here? he's not going to shoot himself in the foot by cutting off gas supplies to to major customers. he must have a plan here. well, to about shortage shooting himself in the middle. i think this whole question of, of the war and ukraine. i can't see that. are there any, when i don't see what due to spending to gain from destroying the position of russia, there are a lot of supplier fossil fuels to europe. so if he has a plan, is probably already backfired time the russian economy withstand the loss of so much energy revenue. well, the thing at the moment, of course, is that the, it's when you talk about revenue, the price is so high that the volumes for the revenue still remains quite high. and in the last 6 months, natural gas in ports of huge amounts of money. and in the past, they used to be very much 2nd, 2nd place to oil. again, the price is also high, but russia is trading. it's a very significant discount at the moment, but it is finding buyers. i think over the longer term, this will start to have a major impact on the russian economy. it will take time for russia. syrup final turn into sources of supply. and it will be costly and difficult for you for russia at the final turn markets restoril. so i would think, you know, over the longer term period, this would really stop the impact on the russian economy. you say that russia is finding buyers where all those buyers, china, that they're in there in asia, is that they going to be able to fill the gaps the europe is leaving. well, yes and no. i mean, i think, yes, they've been talk of chinese bars. they're not the national companies, i think they're the smallest. the smaller private refineries in years. been taking some cargoes, but not the size, the volumes that russia has been ex, exports. so you're, you're, it's why far it's, it's my support market. it's also having to send the oil further on ships and it's struggling to find ships and get insurance shipping. so one of those things going to make it much more difficult to, to, to maintain exports and earnings at the low. ready they have been in the recent past. it's, but it's not an easy matter, certainly to readjust markets this way. are there enough energy alternatives for europe to plug the gaps than if it's not reliant upon or not relying as much upon russian gas and oil. again, it's a question of time if you look at the various plans to come out from the paschal energy agency and from the european union itself, meaning in the short term, it's going to be very challenging. talking about importing more l n g, which is already happening from the united states. but i was looking at the demand side replace. what can we do to reduce the amounts of gas for example, we consume, and of course, these very high prices. the oil for example, label, so dr. demand destruction, people drive less, they much more cautious about their energy usage. so a combination of demand side factors, perhaps on and some reorientation of. ready supply, but there's still going to be a gap and if, if, if gas deliveries do get disrupted. net coming next winter then will be, will, will be thing. potentially power cuts an industry having to shut down. it will come back to that in just a moment. cuz that's an important point, but in the meantime, you mentioned about people looking to alternative supplies. will this crisis hastened? do you think that the shift accelerate the transition to renewable energy supplies? well, very much. so that's the intent in europe with that with their various plans. and so the u. k. with our strategy that this is going to accelerate the transition away . so it's not just about moving away from rational and gas. it's accelerating to move away from the gas from anywhere by promoting the low carbon transition. so when we talked a few minutes ago about president putin paps shooting himself in the foot here with having an unrealistic strategy. if we're going to be facing power cuts in, in europe as early as next winter, could it be argued that perhaps europe and leaders are doing the same, they're going to hurt themselves economically by moving away from russian gas of oil. yes, absolutely. and, and i think you'll see that some european leaders in the last last, they also talked about being a double edged sword. and you hear a similar sort of rhetoric from, from fruits in the sense of europe searching itself. but that's the price that we have to pay. we're going to do take actions that really do russia, but yes, it is going to have an impact. there's no doubt about that. other, any winters in this situation? it's hard to find them. now let's see at the moment national company said the record profit, so i assuming the other states doing well, but they're knock on effectively is very high. prices may be very negative in terms of the global economy and the, and that may again dr. demand destruction. unless income, so i think just coming out of the panoramic and having this level of disruption in the global economy is not good for anyone. i can't see any real when a professor it's been really good to talk to you and counting across many thanks. indeed for being with us. thank you very much, by the way. so why does the russian president want payments in rubles? one answer could be to shore up the currency, which plunged to historic close after vladimir putin sent his troops into ukraine, unleashing unprecedented western sanctions that battered the russian economy. but now, thanks and part to higher commodities prices, banks of return to liquidity surplus and the ruble as rallied, hitting a 2 year high against the euro. and the dollar. and the central bank has reversed its policy of steep increases, the borrowing costs. interest rates have been cut by a for the 3 percent in an attempt to boost the economy. the made lending rate, which was raised in the immediate aftermath of the invasion, is now at 14 percent. russia is imposed capital controls to prevent russians moving their money out of the country and requires the countries exporters to convert most of their foreign currency revenues into roubles and the rebel as gained more ground after the country said that it managed to pay back creditors with dollars, as russia tries to avoid defaulting on its debts, the russian finance ministry said that it made a $565000000000.00 euro bond payment that was due this year, as well as settling at $84000000.00 euro bond that was sent to mature in 2 years, russia has lost access to much of its foreign currency reserves due to sanctions, and wants to pay lenders in roubles with credit ratings. agencies have rejected that suggestion, but russia is expected to suffer a deep recession. the central bank warned that the economy may face 2 straight years of contraction estimated at up to 10 percent this year. it also expects inflation to increase by around 20 percent over the coming months and the interruptions to supply chains caused by the sanctions of crippling russia's production capacities. there was a 72 percent drop in passenger car production in the country. for example, in march, we're joining us now from london. is tatiana all over lead emerging market economist at oxford economics. tatiana, good to have you with us at 1st question has to be, why is president puting in insisting right now that energy payments have to be made in rubles hello and thank you for inviting me today. i think 1st of all, this is a political statement and it's understandable in the current j political contest context. the purpose of this announcement was basically to sort of, it would be viewed as a sang some in response to the west, imposing biting sanctions on the russia. and it has been targeted at so called friendly countries which have imposed such sanctions. but actually, if you look at the mechanism itself, the trash has proposed it doesn't actually demand european bias to play in the rubles, it demands them to play into accounts and gas from bank rich and payments can be made in their regional current fuel. the contract was that was mostly juris. and the trick here is that the, the money is going to be converted into both in russia. so strictly speaking, the decree reach, put in find does not demand payment, renewables. ok. the ruble itself is on a slightly firm ground. right now. it's written against the dollar and the euro. a touch has russia avoided the worst of what the sanctions were designed to do it? i mean, is it going to avoid economic collapse? well, yes, we can actually say that the 1st free, so base crisis is now senior. and actually the russian authorities have managed to avoid you know, amount down in the banking sector for example, or complete meltdown in day effects market. and that was done by a combination of capital controls and huge re try reach the central bank implemented in the days after the invasion. so the free trial was a $1050.00 basis points, which is very large. and the capital controls are preventing investors from moving funds to russia, which is reducing the pressure on the rubel. so if you look at where the rubel is trading now, is actually trading at the stronger levels versus us dollar them. it was in the, in the base preceding the beginning of the base conflict. all right, so the economy is, is weathering the storm for the moment, but for how long could it continue to do so? well let, there are some long john processes which have been launched in be me. it deep restructuring of the changes still be happening to this structure with a whole new me as russia. he's going to people the way from europe towards asia. so treat ties are going to be caught, they're ready being caught with the western bias of russian exports fell, sanctioning and creating their input. so russian come or did use mostly. russia is no longer able to import a lot of goods from the country. speech have imposed sanctions against it. so the, these process is cover already be launched is just the matter of months and years before, before we can see the full impact over these measures. and the country is, there's no doubt the country is headed for, for quite a deep recession, isn't it? yes it is. our current focused view is caesar recession, know about what was the contraction and they took about 10 percent this year. and so the 3 percent next year. and what impact is all of that can have on the cost of living for ordinary russians. the cost of leaving has already increased considerably. price is increased in march by 7.6 percent versus the level in february, february. so it was quite a shop shock. but after that, actually the price girls slowed down because as i have said, they ruble exchange rates that the lived and return to its previous level. so there is no so the pressure on price is from the currency side. we mentioned a few moments ago that the country has managed to, to, to pay off some of the of its debts. what are the long term prospects on that? can russia afford to keep servicing its debt? is there a danger? somewhere down the line? if his economic pressure continues for, for maybe 12 years or longer of russia defaulting on its debt, while russia has a very low level of government debt. so i think that even this by the current measures my just calling to discuss by the european union regarding the freezing out russian oil and gas, i think still russia still should be able to pay its debt if the oil price at some point in the future collapses, as a task happens in the past, then the situation go probably change, but at the moment, the main risk of fresh and default is tammy, from its ability to actually perform these payments. it's effectively up to us of authorities, whether do allow us banks to process so the debt payments by the russian government . so the piece is where the main, the risk is great to talk to you on counting the cost money. thanks indeed for being with us. thank you for inviting me again. now it's known as a global hits like squid game money, heis and the crown. netflix has been top of the league of streaming services for a long time now, but pandemic restrictions that kept people glued to their screens. a receding competition is getting tougher, and netflix is losing subscribers for the 1st time in a decade. the platform lost $200000.00 subscribers in the 1st 3 months of the year and expects to lose $2000000.00 more. in the 2nd quarter. the announcement sent the company's stock down more than 35 percent last week, wiping at least $54000000000.00 off its market value. netflix generated revenue of almost $8000000000.00 in the 1st 3 months of the year. but that mark to slow down for previous quarter's while profits fell by more than 6 percent. and it's not only netflix that his face to slump shares in disney. roku, paramount of warner brothers discovery have also slipped, or cnn is shutting down its streaming service. cnn plus just a month after it was launched. on the flip side, h, b o at h, b o max had almost 78000000 subscribers at the end of the 1st quarter of 2022. that's around a 13000000 year on year increase. joining us from london, tim mulligan, he's a senior analyst and research director at media research team. good had he with us . where is it all gone wrong for netflix? as a big question, suddenly poll netflix reached a certain level of growth and development where easy when this book canoeing, that rapid growth trajectory out the previous decade on the long and prince b that comes into the wall is competition and coal market mass did not us which still accounts for over a 3rd or better scriber's. but then it's where the growth is becoming over the last the years since they made it back in 2017 folks and international subscribers. that growth is leveling off because the ability to market staff don't actually have the discretion. we income to be able to afford monthly subscriptions. so the competition are now moving into app support propositions. this is something that netflix has mostly pushed back against their offering that call us pay is free on demand experience. the final today should make about why netflix is starting to struggle with growth and retention. is a combination of that whole folio, all content. so they know speed news, nurse, we don't have schools in line. now this is essential to be able to offer a streaming tv. all her is to digital k tv back to the what the talk about subscription video services are, see the streaming page. so they lack that, some of you know, school capacitors moving into the market of the last 3 years have that they lack they may want to consider the other final pace to apple. why netflix is currently in this is challenging. ition is we're going to change, want media calls the attention recession, now case the recession is when the combination of the long term city limits of being able to engage because of organic constraints. slate are also matched by the return of in real life entertainment. all okay, and people are able to get out of the homes and able to socialize again. they will do all the to dish month payment formats that weren't available to a lot. remember that there are still parts the world that are coming out of that lockdown period. so inevitably, that combines with this long term set it attention engagement to create attention, recession have way past pig streaming. do you think? do you think the market is just to saturated? yes and no, it's a qualified. yes, no, because well, what we're, what we're experiencing is, is transition additional tv consumption to streaming tv consumption. we're moving into streaming tv. so that still means that there are some negative behaviors around traditionally new tv sumption that will migrate to streaming. but why isn't doubtful is we've also got these constraints and the amount time that can be spent home and payment return in real life is payments. the movie attention recession means that growth is not no longer be easily found and the other aspects of this is the subscription model of streaming services. today, the subscription prescription model, it now being old minutes, it will inevitably be surpassed by app supportive streaming in the same way. traditional tv has been divided between k tv and google cast tv. gore. cat tv is traditionally be the majority of the market. joyce, consumers a willing to tolerate assets to engage with content is the minority who are willing to pay for an ass free experience that will never be trans like streaming, specially as this becomes a global phenomena, news beyond develop market. now increase the saturated with subscription services. fascinating, tim has been really good talk to you by the facts of the for being with us on counting the cost. you're welcome. thanks for your time. and that's our show for this week. don't forget if you want to get in touch with us about anything you've seen, you can treat me on the 8th and again, on twitter, please use the hash tag a j, c t c. when you do or you can drop us a line counting the cost of al jazeera dot net is our email address. as always, there's plenty more few online. i'll just do a dot com slash c t. c. that takes you straight to our page and you'll find individual report links even in time episodes for you to catch up. but that is it for this edition of counting the cost. i'm adrian fed against the whole team here and how, thanks for being with us for news is next on. i'll just hear the oh, struggles full of pleasure. fancy play. when felice came, look at it yesterday. but what if it's today, ma'am? hello, welcome. lot of the going this up with us about the but i, me, i was what be an intimate look at life in cuba. will work a mom or was there like, i say, i came up with the gum in that media. my cuba on al jazeera when the news, bruce, surely now i've been coming shows like very close to the building to when people need to be heard. and the story told it's kind of inspiring moment for me, for all of them to see their guy from their community, with exclusive interviews and in depth reports what the, what is still remains. al jazeera has teens on the ground to bring you more award winning documentaries and lied knees ah a race against time to rescue civilians trapped in a sealed plans and married paul. the last holdout ukrainian soldiers. ah, there are money in sight. this is out. is there a lie from day or so coming up.

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