(Bloomberg) — The U.S. House is exploring a bill that would ban the import of Russian oil and energy products, a move that could add to economic pressure as more companies pull out of the country in response to Moscow’s invasion of Ukraine.
Oil soared to just shy of $140 a barrel after the White House said it was considering an embargo on Russian supplies. The Biden administration is mulling making the move on its own, if it can’t get its European allies on board initially, two people familiar with the matter said.
Russia pledged to reopen humanitarian corridors for civilians to escape the fighting in several cities, after Ukrainian officials claimed invading forces had twice violated a cease-fire brokered to allow for safe passage.
Key Developments
- What a Ban on Russian Oil May Mean for an Already Chaotic Market
- Stakes Rise as Putin Says His War in Ukraine Will Continue
- Russia Says Sanctions Determine If Foreign Bondholders Get Paid
- War Exposes Europe’s Failure to Heed Warnings Over Russian Gas
- From Netflix to Samsung, the Exodus From Russia Becomes a Rout
All times CET:
Russia Offers Humanitarian Corridors (6:20 a.m.)
The Defense Ministry said it would reopen humanitarian corridors for civilians to leave several Ukrainian cities, noting that President Vladimir Putin had pledged to do so in a weekend call with French counterpart Emmanuel Macron.
Previous efforts at opening escape routes for civilians have failed amid recriminations by both sides. Russia said it would provide air transport to Moscow for those leaving the capital, Kyiv, suggesting it was aiming the offer at Chinese, Indian and other foreign students trapped there. Those countries have called on both sides to protect their citizens amid the fighting.
The new attempted corridor would also cover Mariupol in Ukraine’s southeast. Ukraine did not immediately confirm the latest effort.
Stocks, Futures Sink as Oil Soars (5:13 a.m.)
Havens including sovereign bonds rose in turn, amid fears of an inflation shock in the world economy as oil soared on the prospect of a ban on Russian crude supplies.
An Asian stock index was on course for a bear market — a drop of more than 20% from a February 2021 peak. Brent crude was up 8% after briefly touching $139 a barrel. Palladium and copper hit all-time highs.
U.S. May Act Without Allies on Russian Oil (4:26 a.m.)
The Biden administration is considering whether to prohibit Russian oil imports into the U.S. without the participation of allies in Europe, at least initially, according to two people familiar with the matter.
The administration has yet to decide on a U.S. import ban, with the timing and scope of any move still fluid, according to the people, who spoke on condition of anonymity. Administration officials have been in close contact with allies on a possible ban while also working to prepare for the domestic impact, the people said.
New Zealand Expands Sanctions on Russia (4:06 a.m.)
The country will significantly expand its sanctions on Russia and individuals and companies connected to the Russian government through a targeted, autonomous sanctions regime, Prime Minister Jacinda Ardern said in a statement.
House Considers Bill to Ban Russian Oil Imports (3:09 a.m.)
The U.S. House of Representatives is currently exploring “strong legislation” that will further isolate Russia from the global economy, Speaker Nancy Pelosi said in a letter to lawmakers.
The bill would ban the import of Russian oil and energy products into the U.S., and repeal normal trade relations with Russia and Belarus. It would also take the first step to deny Russia access to the World Trade Organization.
Wheat Surges Nearer to Record (3:01 a.m.)
Wheat prices soared closer to record levels as Russia’s intensifying war in Ukraine cuts off supplies from one of the world’s leading breadbaskets, and is set to prevent planting of crops this year, dealing what is almost certainly an unprecedented supply shock to global consumers.
Wheat prices are at their highest since the global food crisis in 2008, and look as though they will exceed that level this week. Food costs have already risen to an all-time peak, according to the United Nations.
Wheat Surges Nearer to Record as War Paralyzes Ukraine Supply
China Urges Citizens in Ukraine to Leave Right Away (1:12 a.m.)
Chinese citizens should leave Ukraine “as soon as possible” as tensions there may escalate rapidly, according to a statement from the embassy in Ukraine. Most Chinese citizens have already been evacuated, the embassy said in a statement on its WeChat account.
Brent Oil Sails Over $135 a Barrel (12:15 a.m.)
Oil roared above $135 a barrel after the White House said it was discussing an embargo on Russian supplies. The move is set to fan supply fears in an already jittery market.
Brent jumped as much as 18% to $139.13, building on last week’s 21% surge as Russia’s invasion of Ukraine triggered fears of a brutal supply crunch, before paring gains.
TikTok, Netflix Join Companies Suspending Russia Operations (9:41 p.m.)
TikTok said it’s suspending livestreaming in Russia amid the country’s new “fake news” law that’s aimed at silencing dissent and limiting information about its invasion of Ukraine.
Netflix Inc. said it’s shutting down operations in Russia, one of the largest media companies to pull out of the market. No new customers will be able to sign up and it’s unclear what will happen with existing accounts, the company said. The service has less than 1 million customers in Russia.
Russian Authorities Detain Almost 4,500 Demonstrators (9:30 p.m.)
Nearly 4,500 anti-war protesters have been arrested across Russia on Sunday, according to the rights group OVD-Info.
The group had reported earlier demonstrations in 44 cities, including Moscow, Saint Petersburg and Ekaterinburg. This would bring those detained so far to around 12,000.
Blinken To Meet Israeli Foreign Minister on Monday (7:33 p.m.)
U.S. Secretary of State Antony Blinken will meet his Israeli counterpart, Yair Lapid on Monday in Riga, Latvia to discuss Ukraine and attempts by world powers to revive a nuclear deal with Iran, the Israeli foreign ministry said.
American Express Suspends Russia, Belarus Operations (7:06 p.m.)
American Express Co. says it is suspending its operations in Russia and Belarus.
Globally issued American Express cards will no longer work at merchants or ATMs in Russia, while cards issued locally in Russia by Russian banks will no longer work outside of the country on the American Express global network, the company said in a statement.
Blinken Says U.S., Allies Discussing Oil Embargo (6:50 p.m.)
“We are now talking to our European partners and allies to look in a coordinated way at the prospect of banning the import of Russian oil, while making sure that there is still an appropriate supply of oil on world markets,” Blinken said on CNN’s “State of the Union” on Sunday. “That’s a very active discussion as we speak.”
Separately, German Finance Minister Christian Lindner said work is continuing on “further sanctions,” adding that it is a “a special priority to hit the oligarchs.”
IAEA Says Communication With Staff at Nuclear Site Compromised (6:14 p.m.)
The International Atomic Energy Agency said communications with Ukraine’s Zaporizhzhia power plant, captured by Russian forces last week, has been compromised after the occupiers shut off mobile networks and internet access. Ukraine’s nuclear regulator told the IAEA that phone lines, emails and faxes weren’t functioning, and that mobile communication was also poor.
IAEA Director General Rafael Mariano Grossi also said he was “extremely concerned” after learning that management of the plant, Europe’s largest, was under orders of the Russian commander at the site.
“Management and staff must be allowed to carry out their vital duties in stable conditions without undue external interference or pressure,” Grossi said in a statement posted on the IAEA website. Radiation levels at the plant remained normal, the agency said.
The IAEA reported problems meantime communicating with personnel at the Chernobyl nuclear power plant, saying the only channel currently is email. That site is also under Russian control.
Russia Warns Nations About Hosting Military Jets (6:02 p.m.)
Letting Ukraine use overseas airfields to base aircraft would be considered involvement in an armed conflict with Russia, Defense Ministry spokesman Igor Konashenkov said in a statement. He said Ukrainian combat aircraft had previously flown to nearby countries.
Ukraine is unlikely to have flown fighters to other countries since the war broke out, aside from an incident in the early days of the conflict where a pilot diverted to Romania after his base was bombed and he lost contact with it. He quickly returned to Ukraine.
Russia Says Bondholder Payment Hinge on Sanctions (5:30 p.m.)
Sanctions imposed on Russia will determine if international investors are able to collect debt payments on sovereign bonds denominated in foreign currencies, according to the Finance Ministry in Moscow.
Residents will receive their payments on the Russian state debt in rubles, regardless of the denomination currency, the ministry said in an emailed statement on Sunday.
VTB Bank Prepares to Exit Europe, FT Reports (3:32 p.m.)
Russia’s VTB Bank is preparing to wind down its European operations after being hit hard by sanctions, the Financial Times reported, citing people with knowledge of the internal discussions. VTB declined to comment to the newspaper.
Sberbank, Russia’s biggest lender, decided to exit the European market last week. Together, Sberbank and VTB account for more than half of Russia’s banking market.
Blinken Says U.S., Europe Discussing Russia Oil Ban (3:15 p.m.)
The U.S. is in talks with European countries on a joint approach to any ban on Russian oil imports that could still ensure adequate supplies, said Secretary of State Antony Blinken.
Russian Lender Looks for Workaround to Visa, Mastercard Ban (2:41 p.m.)
Russia’s biggest lender, Sberbank PJSC, said it’s looking at the possibility of issuing cards using the domestic payments system Mir and China’s UnionPay after credit card giants Visa Inc. and Mastercard Inc. suspended operations there.
The move could allow Russians to make some payments overseas, since state-owned UnionPay operates in 180 countries and regions. Visa and Mastercard said that any transactions initiated with their cards issued in Russia will no longer work outside the country from March 10.
Putin Tells Erdogan Ukraine is Trying to Drag Out Talks (2:06 p.m.)
Vladimir Putin spoke on Sunday with Turkish President Recep Tayyip Erdogan and accused Ukraine of attempting to drag out talks in order to regroup militarily, according to a readout from the Kremlin.
A halt to fighting would depend on Kyiv meeting Russia’s demands, Putin told Erdogan, according to the statement. Russia’s president is insisting on the “demilitarization” of Ukraine and has made clear he wants to remove the government, a stance that makes negotiations extremely difficult.
Officials from Ukraine and Russia have held two rounds of talks without tangible results, and an effort to put in place a humanitarian corridor for the south that can hold for more than a few hours has proved elusive. Both sides have said they’re open to having a further meeting on Monday.
Ukraine Official Says Mariupol Evacuation Truce Violated Again (1:40 p.m.)
A planned evacuation of tens of thousands of people from the besieged southern port city of Mariupol has been halted for a second day, an adviser to Ukraine’s interior minister said.
Russian troops opened fire, violating the day’s temporary cease-fire agreement, Anton Herashchenko said on his Telegram channel.
There’s been no comment so far from the Russian military on the cease-fire arrangements. The aid group Doctors Without Borders has described the situation in Mariupol as “catastrophic.”
Foreigners Are Signing Up to Fight for Ukraine (1:28 p.m.)
Foreign Minister Dmytro Kuleba said the number of foreigners who have applied to come and fight for Ukraine was nearing 20,000. The government recently set up a website for potential volunteers and waived visa requirements for those coming in.
Ukraine was monitoring the potential for Belarusian troops to join Russia in its attack on the country, Kuleba said. So far that hasn’t happened but it remains a risk, he added.
President Volodymyr Zelenskiy said in a video posted by his office that shelling continued in residential areas of cities including Kharkiv, Ukraine’s second biggest, and Chernihiv, north of Kyiv. He accused Russia of planning to bomb the major port city of Odesa in the south, without elaborating.
BBC Says World News Taken Off the Air in Russia (12:53 p.m.)
The BBC’s global news channel, BBC World News, has been taken off air in Russia, the organization reported on its website.
The move follows Friday’s decision by the British national broadcaster to temporarily halt the work of its journalists and support staff in Russia following a law passed there that criminalizes independent reporting in the country.
Moody’s Cuts Russian Debt Further Into Junk Territory (12:00 p.m.)
Moody’s Investors Service cut Russia’s long-term issuer and senior unsecured debt ratings to Ca from B3 on expectations that new capital controls by the Central Bank of Russia will restrict cross border payments, including for debt service on government bonds.
Less than a week ago, Moody’s stripped Russia of its investment grade rating.
Russia Eases Reporting Requirements for Banks (11:40 a.m.)
The Bank of Russia will temporarily reduce the amount of information commercial banks are required to publish in an effort to limit the risks from international sanctions.
Starting from the statements for February, banks will no longer have to release accounts prepared to national standards or any additional disclosures on their websites, the central bank said in statement.
U.S. Supports Moldova’s EU Bid, Will Invest in Energy (11:34 a.m.)
The U.S. will invest $18 million to help Moldova increase its energy security and reduce its dependence on Russia, U.S. Secretary of State Antony Blinken said during a visit to Chisinau on Sunday.
Blinken also said the U.S. supports Moldova’s bid to join the EU. Moldova officially requested to begin the accession procedure last week, a process that could last more than a decade.
No Polish Talks So Far on U.S. Fighter Jet Proposal (11:04 a.m.)
Poland is yet to hold talks with the U.S. about potentially supplying fighter jets to Ukraine or getting replacements from the U.S. in the event it did so, according to a Polish official with direct knowledge of the matter.
The government in Warsaw has previously downplayed the possibility of sending fighter jets in, and expressed concern that doing so could drag it, and potentially NATO, into a broader conflict with Russia.
White House Says U.S., Poland Working on Warplanes for Ukraine
“We’re looking actively now at the question of airplanes that Poland may provide to to Ukraine and looking at how we might be able to backfill,” Secretary of State Antony Blinken said Sunday in Moldova.
A person familiar with internal White House deliberations noted that Eastern European countries don’t have large-sized fighter jet fleets to begin with, and anything they sent to Ukraine would leave them exposed at home. The process of supplying F-16s to them as replacements could take a long time, let alone adding on retrofitting and providing training, the person added.
Refugees Top 1.5 Million, UN Says (10:53 a.m.)
Filippo Grandi, the UN High Commissioner for Refugees, called it the “fastest growing refugee crisis in Europe since World War II.”
More than 60% have fled to Poland, where authorities estimate 922,400 people had crossed the border as of early Sunday, and Moldova, to where more than 250,000 have fled, according to President Maia Sandu. Smaller numbers have traveled to Slovakia, Hungary, Romania, and other EU countries, as well as to Russia itself.
Russia Seeks to Capture Hydroelectric Plant, Ukraine Says (8:53 a.m.)
Russian forces may seek to capture the Kaniv hydroelectric power station, Ukraine’s defense ministry said in a statement, indicating a possible increase in the targeting of civilian infrastructure. Last week, Russian forces partially occupied the site of Europe’s largest nuclear power plant.
The dam, about 60 miles (96 km) downstream from the capital Kyiv, is one of the key elements in the cascade of hydroelectric power plants on the Dnieper River. Russia says its main goal in the war is to target Ukrainian military facilities.
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