• A Russian-flagged cargo vessel has sunk in the Mediterranean Sea, per Russia's foreign ministry.
• The Ursa Major ship went down after an explosion in the engine room, the ministry said.
• It comes after Ukraine said Moscow had sent four ships to Russian military bases in Syria.

A Russian-flagged cargo vessel has sunk in the Mediterranean Sea after an explosion in its engine room, Russia's foreign ministry said on Tuesday.

Fourteen crew members were rescued, but two were missing, the ministry's situation and crisis unit said in a Telegram post.

The ministry said the vessel, the Ursa Major, was owned by SK-YUG LLC, a Russian shipping company also known as SC South that has been sanctioned by the US.

Spain's Maritime Rescue agency told Business Insider that it had received a distress alert call from the Ursa Major last night.

It said the ship was 57 nautical miles off the coast of Almeria in southern Spain in bad weather conditions. This prompted the maritime rescue centers of Almeria, Cartagena, and Madrid to coordinate a rescue effort, it added.

The 14 people rescued were transferred to the Spanish port city of Cartagena, the agency said, adding that another Russian ship later arrived in the area and took over the rescue operations.

Ship tracking data said the 466-foot Ursa Major, built in 2009, last departed from St. Petersburg on December 11.

It comes after Ukraine's intelligence directorate reported on Monday that a Russian cargo ship called Sparta had broken down near Portugal after the engine failed.

The GUR said the ship had been sent to evacuate Russian weapons and equipment from Syria.

The crew was able to fix the vessel, and it continued on through the Strait of Gibraltar, the GUR said.

It remains unclear whether the Sparta and the Ursa Major are the same ship. Maritime tracking data shows that the Ursa Major was previously named Sparta III.

Moscow has operated two military facilities in Syria, the Hmeimin airbase and the Tartus naval base. Both have been crucial for projecting Russia's influence across the Middle East and Africa.

The fall of longtime Syrian ruler Bashar Assad earlier this month has called the future of the bases into question.

Ukraine's GUR said earlier this month that Russia had deployed four ships to help evacuate equipment in Syria, including ships named the Sparta and Sparta II.

This is a developing story. Please check back for updates.

• Russia's railway industry is in the midst of a big downturn, according to one Russian research firm.
• Investment in Russia's railways is being slashed by nearly a third next year, TASS reported.
• It complicates Russia's trade with China, which has relied partly on rail transport.

One of Russia's key trading channels with China is facing serious snags. That's a result of burdens stemming from Russia's war-driven economy, which have fueled a big slowdown in the nation's rail industry — a vital means of trade between Moscow and Beijing.

Russia's rail industry is in its worst slowdown since the Great Financial Crisis, with the downtrend "still going strong," according to an analysis from the Russian research firm MMI Research. Freight volume transported by Russian Railways, Russia's state-owned rail system, slumped 5% in the first 11 months of 2024 compared with the same period last year, according to MMI data cited by Bloomberg.

The slowdown is driven in part by Russia's need to ship war-related materials, which have worsened supply bottlenecks and slowed the trade of key commodities, like coal and aluminum, the outlet reported.

Investment in Russia's railroads is also being slashed, partly due to high interest rates in the nation, according to a report from the state-owned news agency TASS. Russian Railways said it would earmark just 890 billion rubles, or $8.5 billion, for its investment program next year, a 30% cut from investment in 2024, TASS reported.

The firm is mulling whether it should cut investment by another third through the end of the decade, the Russian outlet Kommersant reported. Russian Railways did not immediately respond to a request for comment from Business Insider.

The changes spell bad news for Russia's trade with China, which has leaned on railway transport amid Western sanctions. Russia poured billions into its railways earlier this year partly to accommodate its increased trade with China.

The changes also speak to the growing costs of Russia's war against Ukraine, which have produced myriad economic problems for Moscow.

Russia's central bank raised interest rates to a record 21% earlier this year in an effort to lower sky-high inflation. The bank kept interest rates level in their policy decision last week, due to concerns about "excessive cooling" in Russia's wartime economy, according to the nation's top central banker.

• A Russian drone and missile designer was assassinated near Moscow, reports say.
• Multiple Ukrainian media outlets reported that Ukraine was involved, citing security sources.
• One source said anyone who develops Russia's military power "is a legitimate target" for Ukraine.

A senior Russian official who worked at a company that designs drones and missiles was killed in a Ukrainian operation near Moscow, according to reports.

A source in Ukraine's security services told Ukrainian outlet Pravda that Mikhail Shatsky was assassinated in a special operation by Defence Intelligence of Ukraine, the country's military intelligence service.

A source told the Kyiv Independent that Shatsky was shot dead near Moscow in an attack that was likely orchestrated by Ukraine's military intelligence agency.

Ukraine has not taken responsibility for the attack.

Shatsky's body was reportedly found in the southeastern Moscow suburb of Kotelniki earlier this week.

According to Ukrainian outlet Hromadske, Shatsky was the deputy general director of Mars, a company that's part of Russia's state-owned nuclear agency Rosatom.

The outlet said he worked on the modernization of Russia's Kh-59 and Kh-69 guided aircraft missiles and helped develop new drones.

He also worked on introducing AI into Russian drones and spacecraft, Hromadske reported.

The Moscow Times and the Kyiv Independent both reported that Shatsky was a designer at Mars and head of software there.

A source told Kyiv Independent that Shatsky was seen as the main proponent of incorporating AI into Russian drones, aircraft, and spacecraft.

A security forces source told Hromadske that "anyone in any way involved in developing Russia's military-industrial complex and thus supporting Russian aggression against Ukraine is a legitimate target," according to a translation by The Moscow Times.

Russian drone attacks on Ukrainian cities, infrastructure, and military assets have been devastating throughout the war, and Russia has also used Kh-59 and Kh-69 cruise missiles against Ukrainian targets.

Ukraine has in the past been linked to the deaths of multiple pro-war figures but has commented on few of them, though a Ukrainian official said the country was behind the death of a Russia-backed lawmaker in a car bomb explosion in eastern Ukraine last year, in a rare response to such an event.

Ukrainian military intelligence didn't immediately respond to a request for comment from BI.