(Bloomberg) — Russia’s parliament passed harsh laws that would impose prison terms for people charged with spreading “fake news” about the military or calling for sanctions against the country. The BBC said it’s suspending the work of its journalists there for now.
Facebook was blocked in Russia by the country’s communications regulator, Interfax reported, the latest sign of Moscow’s pushback on news sources not sanctioned by the government.
The Biden administration is weighing a ban on U.S. imports of Russian crude oil under pressure from a bipartisan group of members of Congress.
The move comes as events grow ever more fraught on the ground in Ukraine, with heavy fighting near key cities and fears the humanitarian disaster could be compounded by an environmental one. That’s after a brief fire at a training center attached to Europe’s largest nuclear power plant that Ukraine said was caused by Russian bombing.
Key Developments
- White House Considering Ban on Russian Oil Imports to U.S.
- JPMorgan Warns Russia Headed for 1998-Like Economic ‘Collapse’
- More Than a Million People Have Fled Ukraine in Just One Week
- How Ukraine’s Rail Network Threw Russia’s Military Off Track
- Railways Helped Drive Russia Off Track and Into Ukraine’s Cities
- NATO Won’t Risk Broader Russia War With a Ukraine No-Fly Zone
All times CET:
Biden and Duda Discuss Ukraine, European Security (8:41 p.m.)
President Joe Biden spoke with Polish President Andrzej Duda for 53 minutes Friday to discuss efforts to impose severe punishments on Russia, as well as humanitarian efforts in Ukraine and the U.S. commitment to NATO security.
Biden “welcomed Poland’s partnership in hosting 9,000 U.S. forces, including 4,700 additional servicemembers deployed there in recent weeks, to reassure Eastern flank Allies, deter Russian aggression against NATO, and stand shoulder to shoulder with their Polish counterparts to maintain security and stability in Europe,” the White House said in a statement.
The call came as General Mark Milley, the chairman of the Joint Chiefs of Staff, met with his Polish counterpart, General Rajmund Andrzejczak during a visit to Warsaw.
Crypto Donations Pay for Bulletproof Vests, Other Supplies (8:35 p.m.)
Ukraine has already spent $15 million of the donations it received in cryptocurrencies on military supplies, including bulletproof vests that were delivered Friday, Alex Bornyakov, deputy minister of Digital Transformation of Ukraine, told Bloomberg News.
The Ukrainian government anticipates crypto donations to reach $100 million in the next few days, double the amount received so far, Bornyakov said. Most of the donations have been in Bitcoin and Ether.
White House Considering Ban on Russian Oil Imports to U.S. (8:27 p.m.)
The Biden administration is weighing a ban on U.S. imports of Russian crude oil as Congress races toward passing such a restriction to punish the Kremlin for its invasion of Ukraine.
Conversations are taking place within the administration and with the U.S. oil and gas industry on the impact such a move would have on American consumers and the global supply, according to people familiar with the matter.
S&P to Remove All Stocks Listed, Domiciled in Russia (7:31 p.m.)
S&P Dow Jones Indices said it will remove all stocks listed and/or domiciled in Russia including ADRs/GDRs from its standard equity indices at a price of zero, effective prior to the open on March 9.
The company will also reclassify Russia to a standalone category from emerging markets effective the same day, the latest move in efforts to isolate the country from global finance over the war.
Russian Watchdog Blocks Facebook (7:17 p.m.)
Facebook was blocked in Russia by the country’s communications regulator, Interfax reported, the latest sign of Moscow’s pushback on news sources not sanctioned by the government.
Facebook was banned in retaliation for its freezing of accounts of RT, Sputnik and RIA Novosti and other media, communications regulator Roskomnadzor said in a statement.
Two liberal broadcasters, Ekho Moskvy and TV Rain, went off air Thursday under pressure from prosecutors, while the websites of the BBC, Deutsche Welle and Meduza, an independent news group, weren’t accessible Friday.
Russia Condemned Over Actions at Nuclear Plant (6:49 p.m.)
Russia’s actions at the Zaporizhzhia nuclear plant came under heavy criticism from a range of countries during an emergency session of the United Nations Security Council in New York.
‘It was incredibly reckless and dangerous. And it threatened the safety of civilians across Russia, Ukraine and Europe,” U.S. Ambassador to the UN Linda Thomas-Greenfield said.
Russia’s UN envoy, Vassily Nebenzia, said Western countries and Ukraine are exaggerating the incident. He insisted that Russian forces “negotiated” control of the facility and emphasized what he called the shared experience of the Chernobyl nuclear disaster in the 1980s.
Harris to Travel to Europe Next Week (6:45 p.m.)
U.S. Vice President Kamala Harris will visit Poland and Romania next week, according to a person familiar with the plans. There were no further details.
Moldova Tensions Rise Over EU Application (6:15 p.m.)
Signs of tensions emerged in Moldova, a former Soviet state that borders Romania and Ukraine, the day after the government lodged an official request to join the European Union.
The self-proclaimed government in the pro-Russian breakaway region of Transnistria has asked the international community to recognize its independence. In a statement, the Transnistria foreign affairs ministry said the Moldovan government failed to consult it on the EU application, “completely disregarding the region’s stance on the subject.”
U.S. Secretary of State Antony Blinken is due to visit Moldova on Saturday to discuss its efforts to help Ukrainian refugees as well as “U.S. support for Moldova’s democracy, sovereignty, and territorial integrity,” the State Department said. Moldova has said it wants to remain neutral in the conflict, except for helping refugees, and won’t apply any sanctions on Russia.
BBC Temporarily Pauses Work of Its Journalists in Russia (5:26 p.m.)
The BBC said it was acting in response to newly-passed legislation that “appears to criminalize the process of independent journalism” there. The British national broadcaster said its news operation for Russia will continue to operate from outside the country.
“Our journalists in Ukraine and around the world will continue to report on the invasion of Ukraine,” BBC Director-General Tim Davie said in a statement. The new law “leaves us no other option than to temporarily suspend the work of all BBC News journalists and their support staff within the Russian Federation while we assess the full implications of this unwelcome development.”
Russia to Punish Sanctions Appeals and ‘Fake News’ on Military (5:18 p.m.)
People convicted of spreading what the authorities deem to be false information concerning the military’s activities face fines and imprisonment for as long as 15 years under the legislation, which now goes to President Vladimir Putin to sign.
The law will allow “those who lied and made statements discrediting our Armed Forces to be punished, and very severely,” as soon as it comes into force, Speaker Vyacheslav Volodin said Friday, when lawmakers in the State Duma unanimously endorsed the measure.
While there have been only scattered protests so far in Russia against the war, the government has throttled access to social media and ordered Russian news outlets only to publish information from official sources.
Microsoft to Suspend Sales, Services in Russia (5:01 p.m.)
Microsoft Corp. is suspending sales of products and services in Russia, and says it’s working closely with the U.S., European Union and U.K. to comply with a range of coordinated sanctions levied against Moscow.
The tech giant vowed to continue its efforts to help Ukraine stave off Russian cyberattacks, such as a recent one against a major broadcaster. Several other U.S. tech companies, including Apple Inc. and Intel Corp., have also pulled the plug on Russia since the invasion of Ukraine.
BlackRock Russia ETF Among Funds Halted (4:27 p.m.)
Three major Russia-focused exchange-traded funds were halted in New York on Friday. BlackRock Inc.’s iShares MSCI Russia ETF (ERUS) was among those affected, after the New York Stock Exchange took action based on what it said was “regulatory concern.” The fund had plunged about 80% in the past two weeks.
U.S. Aims New Measures at Russian Oil Refiners (4:22 p.m.)
The U.S. will target Russia’s oil refining sector with new export controls, and has identified 91 entities it says support the Kremlin’s military activities. The actions will further restrict Russia’s access to U.S. commodities, software, and technology, the Commerce Department said.
European Natural Gas Prices Rise to Records (4:00 p.m.)
European gas prices jumped as much as 33% on Friday on growing fears the war will end up severing supplies. Natural gas prices are now the equivalent of about $350 a barrel of oil, posing a massive risk to inflation and output. Oil rose another 5% in volatile trading, while grains surged as the key Black Sea region is cut off from global trade.
Scholz Expresses ‘Deep Concern’ in Call With Putin (3:30 p.m.)
German Chancellor Olaf Scholz spoke for an hour on the phone with the Russian president, according to Scholz’s spokesman.
Putin told Scholz that Russia and Ukraine plan a third round of talks this weekend and the two leaders agreed to speak again “in the near future,” Scholz’s spokesman said by email. Ukrainian officials have not confirmed a date for further talks aside from saying they might happen sometime soon.
More Than 1,000 Civilian Casualties in Ukraine, UN Says (3:15 p.m.)
Most of the casualties were caused by the use of weapons with a wide impact area, including heavy artillery, multi-launch rocket systems, missiles and air strikes, the Office of the UN High Commissioner for Human Rights said.
Stoltenberg Says Russia Breaking International Law (3:05 p.m.)
NATO Secretary General Jens Stoltenberg accused Russia of breaching international rules and said allies were collecting details to hold Moscow to account.
“We have seen the use of cluster bombs, we have seen reports of use of other types of weapons, which would be in violation of international law,” Stoltenberg said in Brussels on Friday after a meeting of the alliance’s foreign ministers.
Group Says Russian Cluster Bombs May Constitute War Crime (2:45 p.m.)
Russia’s firing of cluster munitions into residential areas of Ukraine’s second largest city on Feb. 28 may rise to the level of a war crime, the group Human Rights Watch said in a report Friday.
Video analysis and interviews with witnesses reveal submunitions were deployed via Russian-made cluster munition rockets in Kharkiv, the group said. The attacks killed at least three civilians.
Cluster munitions open in the air and disperse dozens or hundreds of small, lethal bomblets across a wide area. Their use in populated areas is prohibited under international humanitarian law, although Russia isn’t a party to that protocol. The US also hasn’t signed on.
War Spurs Johnson to Look at U.K. Property Declaration Deadline (2:41 p.m.)
Spurred by Russia’s invasion of Ukraine, Prime Minister Boris Johnson’s government is now open to cutting a grace period for foreign owners of U.K. property to register their interests, two people familiar with talks between the ruling Conservatives and opposition parties said.
Under legislation to be debated Monday in the House of Commons, individuals would have had 18 months to join a register that identifies the ultimate foreign owners of U.K. property, preventing them from hiding behind shell companies — but this period looks set to be reduced. The proposed register, which may affect the many Russians who have invested in property in Britain, has been on the back-burner for successive Tory administrations since 2016.
ETF Fund Tracking Russian Stocks Halted in New York (2:20 p.m.)
The New York Stock Exchange halted trading in a U.S. exchange-traded fund tracking Russian equities after it tumbled 68% this week.
Trading in the iShares MSCI Russia ETF was stopped at 4 a.m. local time, according to a statement by BlackRock. It said it supported the decision due to the ETF’s “concentrated exposure to Russian equities, the closure of the Russian stock market and MSCI’s decision to remove Russian securities from its Emerging Markets Indexes.”
Swedes, Finns Favor NATO Entry in Shift After Ukraine War (1:40 p.m.)
Swedes and Finns are increasingly in favor of joining the NATO defense bloc after Russia’s invasion of Ukraine, adding pressure on the countries’ leaders to change long-standing policies of military non-alignment.
Polls released in the two Nordic countries on Friday showed 51% of Swedes and 48% of Finns now back joining the North Atlantic Treaty Organization. It’s the first time a Swedish majority favored entry.
Ukraine Says Suppressing Russian Threat to Odesa So Far (1:40 p.m.)
Defensive artillery is suppressing Russian attempts to fire on Odesa from warships, with no immediate threat to the Black Sea port city of almost 1 million people, Ukrainian military officials said.
In a briefing Friday, the officials said that, to the east, Mariupol was partially under siege, with Ukrainian troops trying to prevent the city’s complete encirclement. Russian troops have partial control of the Zaporizhzhia nuclear power plant after overnight shelling, while a powerful air attack has been thwarted so far around Chernihiv, a large city between Kyiv and the Belarus border, they said. Kharkiv and Akhtyria are holding out against heavy bombardment.
“We can feel reserved optimism,” presidential spokesman Oleksiy Arestovych said during the morning video briefing. “The overall situation is under control.”
Austrian Ex-Chancellor Resigns From Lukoil Post (12:58 p.m.)
Former Austrian Chancellor Wolfgang Schuessel resigned from the supervisory board of oil company Lukoil PJSC, citing Russia’s attack on Ukraine and its civil population, the APA news service cited him as saying. Schuessel is the latest in a string of high-profile politicians leaving management posts in Russia.
On Thursday, German Chancellor Olaf Scholz called on his predecessor Gerhard Schroeder to leave his positions at Rosneft PJSC and Nord Stream AG.
Russian Slide to Rival 1998 Default, JPMorgan Says (12:33 p.m.)
The Russian economy’s slump from crushing sanctions following its war on Ukraine could rival the fallout from the country’s 1998 default, JPMorgan Chase economists said in a note to clients.
The “peak-to-trough” collapse in Russia’s GDP is now expected to be about 11%, they said. “Russia’s export earnings will be disrupted, and capital outflows will likely be immediate despite its large current-account surplus,” they said. “Imports and GDP will collapse.”
Ukraine’s Nuclear Regulator Comments on Seized Plant (12:30 p.m.)
Around 100 Russian military vehicles broke through a roadblock near the Zaporizhzhia nuclear power plant overnight, entering the city of Energodar and began to fire on the plant, Petro Kotin, the head of the Energoatom regulator said in a statement.
A shell hit the plant’s first production unit, which was under maintenance. The second and third units were put into safe “cold mode” and the fourth remains in operation, as it’s at the most distant from the shelling zone, Kotin said. He added that radioactivity level at the plant was within norm during last measurement, although currently no monitoring is taking place.
Italy to Halt Loan Guarantees to Russia and Belarus (12:15 p.m.)
Italy’s export credit agency is poised to temporarily stop guaranteeing new loans in Russia and Belarus amid worsening risk due to the invasion of Ukraine, according to people familiar with the matter. The decision won’t affect the roughly 5 billion euros of outstanding loans to Italian companies exporting to Russia currently guaranteed by the agency.
Ukraine Nuclear Talks Pitched After Plant Fire (12:11 p.m.)
International Atomic Energy Agency Director General Rafael Mariano Grossi reiterated his grave concern following overnight shelling of Zaporizhzhia, Europe’s biggest atomic generator, in southeastern Ukraine.
Gross said he’s offered to meet Russian and Ukrainian representatives in a bid to dial down safety risks caused by the Kremlin’s invasion.
“We are fortunate that there was not a release of radiation and that the integrity of the reactors themselves were not compromised,” Grossi said.
Lithuania Urges End to EU Energy Imports From Russia (11:30 a.m.)
The European Union should give up gas and oil imports from Russia and disconnect all Russian banks from the SWIFT messaging system to deter further aggression, Lithuanian President Gitanas Nauseda told Bloomberg TV. Sanctions imposed so far haven’t had the impact expected because of the Russian government’s “brutality,” he said.
“We have to stop buying oil and energy resources from this country,” Nauseda said, adding that Lithuania is ready to switch to alternatives.
Nauseda said Russian shelling of Ukraine’s Zaporizhzhia power plant was “nuclear terrorism” that went “far beyond the behavior of what we call normal human beings.”
Russia Weighs Law Punishing Protesters With Conscription (11:10 a.m.)
Russia’s lower house of parliament will consider a proposal Friday to punish people convicted of joining unsanctioned protests against the actions of the Russian military abroad.
Under the plan, protesters would be drafted into the Russian military and required to serve in the Donetsk and Luhansk People’s Republics, the two breakaway regions of eastern Ukraine that President Vladimir Putin last month recognized as independent.
Czechs, Poles Intervene to Shield Their Currencies (11:04 a.m.)
The Czech and the Polish central banks stepped in to protect their currencies, which are among the hardest hit by the market impact of Russia’s invasion of Ukraine.
In Poland, the central bank’s third intervention this week let the zloty recoup some of the losses that pushed it to the weakest against the euro since 2009. The Czech move helped the koruna rebound and made it the best performing emerging market currency on Friday.
Zelenskiy Calls for Tougher Sanctions Against Russia (10:27 a.m.)
President Volodymyr Zelenskiy again called for tougher sanctions against Russia in a video address on Friday, after Russia shelled Ukraine’s Zaporizhzhia nuclear power plant. He also urged a no-fly zone to be enforced over Ukraine, a step NATO has rejected so far.
“We survived a night that could have stopped the history,” he said. “Russian troopers knew what they were shelling at. It is a terror of unseen level.”
Russia is deliberately targeting civilians and residential neighborhoods, Zelenskiy said, adding that on Thursday, 47 casualties were reported in Chernihiv, north of the capital Kyiv.
NATO Won’t Risk Broader War With Ukraine No-Fly Zone (10:08 a.m.)
President Volodymyr Zelenskiy stepped up his calls for a no-fly zone to shield Ukraine from Russia’s escalating bombardment, but NATO remains highly unlikely to support one.
Czech Foreign Minister Jan Lipavsky on Friday summed up the attitude that NATO governments have expressed thus far. A “no-fly zone means NATO being in a conflict, since it would be NATO’s forces enforcing this no-fly zone,” he said ahead of a meeting of ministers from the military alliance in Brussels. The “proper solution” was to give Ukraine weapons to enforce the zone itself, he said.
While the war has prompted NATO to bolster its eastern border, it has so far held the line on sending troops into Ukraine. There’s also the concern that escalation between NATO and Russia could heighten tensions on the nuclear front.
Ukraine Sinks Navy Flagship to Avoid Its Capture (9:35 a.m.)
The commander of Ukraine’s Navy complied with an order to sink the flagship frigate Hetman Sagaidachny, which was under repair, to avoid it falling into Russian hands, Defense Minister Alexei Reznikov said in a statement.
Images of the vessel at dock in the port city of Mykolaiv, lying half-submerged on its side, appeared on social media Thursday. It comes as Russian troops advance closer to key Black Sea targets.
Russia Passes Law Criminalizing Fake News on Military (8:46 a.m.)
Russia’s State Duma unanimously passed a law making it a crime to distribute false information about the country’s armed forces, punishable by up to 15 years in prison.
The government has throttled access to social media and ordered local news outlets to only publish information from official sources, which describe the invasion of Ukraine as a special operation.
Two liberal broadcasters, Ekho Moskvy and TV Rain, announced they were going off air Thursday after the Russian Prosecutor General ordered that access to them be restricted because of their coverage of the attack.
Russian Stock Market Closed Until at Least Wednesday (8:41 a.m.)
The Russian stock market will remain closed to trading until at least next Wednesday, marking a record in the country’s modern history, in a continuing bid to stave off the impact of global sanctions for domestic investors.
The Moscow Exchange said on Friday that trading across all markets will be shut March 5, 7 and 8.
What We Know About Ukraine’s Shelled Nuclear Plant: QuickTake
Fire at Nuclear Plant is Extinguished (5:46 a.m.)
The blaze in a training complex at Zaporizhzhia was contained to an area of about 2,000 square meters (20,000 square feet) and is now out, local emergency services said on Facebook. Three floors of a training complex at the site were involved in the fire.
The U.S. did not detect any elevated radiation readings near the facility. U.S. President Joe Biden urged Russia to halt fighting near Zaporizhzhia after speaking with Ukrainian President Volodymyr Zelenskiy about the incident. “If there is an explosion, it is the end of Europe,” Zelenskiy said in a video message. He’s appealed to Putin to meet, saying it’s the only way to stop the war.
Russia’s Defense Ministry said the incident was a Ukrainian “provocation” and that Kyiv fired the missile. Ukraine, U.S. and others have warned that Russia would be trying to engineer such incidents, which they said would be accompanied by a strike against Ukrainian communications equipment.
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