U.S. Holding Call With Allies on Russia Tensions: Ukraine Update

(Bloomberg) — Russia pushed back after NATO and the European Union said they’d only provide a collective response to its proposals on a regional security framework. Moscow had been seeking individual replies from each member nation of the EU.

Western allies are seeking to show unity in the face of Russia’s military buildup near the Ukraine border, bolstering NATO’s eastern flank with added troops and threatening joint sanctions against Moscow if it were to invade Ukraine, something Russia says it has no intention of doing. U.S. President Joe Biden said conditions in the region could “go crazy quickly” as he urged Americans to leave Ukraine, and he is holding a call Friday with other leaders to discuss the tensions.

Russia and Belarus are holding their largest joint military exercises in years through Feb. 20 near Ukraine’s border as well as those of NATO members Poland and Lithuania. The top U.S. military official spoke with his Belarusian counterpart to avoid a “miscalculation” around the drills. 

Key Developments

  • Russia Starts Major Military Drills in Belarus as NATO Watches
  • Russia and Europe Are Vital to Each Other When It Comes to Oil
  • What we know so far about potential U.S.-EU sanctions on Russia
  • Where Military Forces Are Assembling Around Russia and Ukraine
  • EU to Send Russia Joint Security Reply, Snubbing Lavrov Demand

All times CET.

U.K.’s Wallace Meets Russia Counterparts, Says Talks Constructive (5:55 p.m.)

U.K. Defense Secretary Ben Wallace said he received fresh assurances Russia won’t invade Ukraine, having held talks Friday with Defense Minister Sergei Shoigu and Chief of the Russian General Staff Valery Gerasimov in Moscow. Still, Russian forces have the capability to attack Ukraine “at any time,” he told reporters.

The talks with Shoigu were constructive and frank, Wallace said. “He is a professional, he is a very experienced minister, as is General Gerasimov. And when they say to me they are not going to invade Ukraine we will take that seriously. But as I have also said, we will look at the actions that accompany it.”

U.S. and Allies Set to Speak By Phone Friday on Russia Tensions (3:56 p.m.)

Western leaders will hold a joint call at 5pm CET on Russia’s military buildup, according to statements from the U.S. and others confirming a Bloomberg report from Thursday. Alongside the so-called NATO Quint group — U.S., Germany, France, Italy and the U.K. — the leaders of Poland, Romania, Canada and the EU will take part.

The Quint group has convened numerous times in recent weeks at different levels to coordinate on talks with the Kremlin and discuss a potential package of sanctions in the event Russia attacked Ukraine. The call also follows a flurry of diplomacy this week including a visit to both Russia and Ukraine by French President Emmanuel Macron. 

Russia Navy Exercises Cause Unease Among Grain Shippers (3:31 p.m.)

Ukraine’s grain shippers echoed assurances from the economy ministry that Russian naval drills shouldn’t block access to the nation’s ports, but warned that the uncertainty risks deterring some vessel owners. 

Moscow will begin full-scale naval exercises in the Black Sea on Sunday, after announcing the start of drills on Thursday. That unnerved commodity markets as Ukraine is the world’s No. 2 grain shipper. 

The drills, to take place in blocks of international waters as well as those claimed since 2014 by Russia along the coast of Crimea, should leave space for ships to reach ports such as Odessa and Chornomorsk via the 12 mile (19.3-kilometer) territorial waters of Romania and Ukraine. But the exercises have further fueled market fears that Russia’s military buildup could yet spiral into a conflict, said Mykola Horbachov, president of Ukraine’s Grain Association.

Ukraine Grain Shippers Say Russian Drills Risk Deterring Vessels

Russia Says Can’t Accept EU, NATO Answers (1:42 p.m.) 

Russia said it won’t accept the collective response of NATO and the European Union to its proposals on European security.

The demand for the respect of the principle of “indivisible security” in Europe was made in a letter sent by Foreign Minister Sergei Lavrov to his counterparts in 37 countries in Europe and North America, the Foreign Ministry said in a website statement.

Instead of individual answers, Russia has received letters from NATO chief Jens Stoltenberg and the EU’s foreign policy chief, said the ministry, which added that it is “waiting for a detailed response to the question we posed from every addressee.”

White House in Touch With Chip Sector (1:23 p.m.)

Officials with the White House’s National Security Council contacted the U.S. chip industry about supplies from Russia and Ukraine, Reuters reported Friday. 

The NSC urged seeking alternative supplies in case Moscow blocks access to semiconductor-grade neon from Ukraine or palladium from Russia. 

NATO Chief Cites Potential for Hybrid Attack on Ukraine Government (11:31 a.m.)

NATO Secretary General Jens Stoltenberg cited the “real risk” of conflict as Russia’s military buildup continues. The military alliance chief said potential scenarios include hybrid warfare or attempts to bring down Ukraine’s government. 

“There’s a risk for a full-fledged invasion, but there’s also a risk for other types of aggressive actions, including attempts to topple the government in Kyiv, hybrid cyberattacks, and many other types of Russian aggression,” Stoltenberg told reporters in Romania at an air base near the Black Sea. 

Speaking alongside Romanian President Klaus Iohannis, Stoltenberg said allies would seek an expanded presence on NATO’s southeastern flank, including battalion-sized battle groups in Romania and elsewhere.

Blinken Says Asia is Watching Ukraine Tension (10:11 a.m.) 

U.S. Secretary of State Antony Blinken said the world’s response to the Ukraine crisis was being watched by “others,” in a pointed reference to China’s territorial claims in Asia. 

Blinken said countries shouldn’t change the borders of other nations by force or dictate to another government. If these actions are allowed it affects basic principles established after two World Wars and the Cold War, he added in remarks to reporters after meeting with Quad foreign ministers in Melbourne.  

Saab CEO Sees Defense Interest Rising (10:20 a.m.) 

Swedish defense group Saab AB is seeing greater interest from countries looking to improve their defense abilities in the light of rising political tensions in parts of Europe. 

While purchases of Saab’s flagship jet fighter typically take years to fulfill, products like sensors for monitoring or ammunition for support weapons and missile systems are examples of orders that customers want to place quickly, Chief Executive Officer Micael Johansson said Friday following the company’s fourth-quarter results.  

U.S., Belarus Army Chiefs Spoke to Avoid Drill ‘Miscalculation’ (9:13 a.m.)

Chairman of the U.S. Joint Chiefs of Staff Mark Milley spoke by phone with Belarusian counterpart Viktor Gulevich on Thursday to discuss “security issues,” the Belarusian defense ministry said on its website, adding that the conversation was initiated by the American side.

The call was done to “reduce chances of miscalculation” during the large Russia-Belarus joint drills now under way in Belarus, the Pentagon said in a readout. 

Thousands of troops backed by tanks, fighter aircraft and advanced S-400 missile-defense systems are involved in the exercises in Belarus, set to run until Feb. 20. 

Russia Duma Mulls Appeal To Recognize Donbas Separatists (6:53 a.m.) 

The lower house of Russia’s parliament will start talks on a proposal to formally recognize separatist authorities in Ukraine’s Donbas, a move that, if approved, could hamper peace efforts and fuel tensions.

Speaker Vyacheslav Volodin said the State Duma’s council will decide Monday how to proceed with a proposal made in January to vote on an appeal to President Vladimir Putin to recognize the so-called People’s Republics in Donetsk and Luhansk.

Russia has supported the breakaway quasi-states militarily and financially since their formation in 2014, though officially it denies that and backs a peace plan that calls for their reintegration into Ukraine. Recognition could complicate efforts to implement that pact and potentially pave the way for Moscow to openly supply more weapons to the republics, something the ruling party has already proposed. The timeline for any possible moves toward recognition remains unclear. 

Talks in Berlin Fail to Reach Accord, May Resume (12:45 a.m.) 

Talks intended to revive the 2015 Minsk accord to end the conflict in eastern Ukraine ended Thursday after more than nine hours with no report of progress, but a Ukrainian official said they could restart “soon.” 

Diplomats close to the talks said the next meeting would be in March. Russia and Ukraine accuse each other of failing to adhere to the 2015 agreement to halt fighting in Ukraine’s Donbas region. 

Dmitry Kozak, an aide to Russian President Vladimir Putin, told reporters in Berlin that “we deeply regret” the current situation remaining in a “stalemate.”  

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