(Bloomberg) —
Joe Biden and China’s Xi Jinping will speak about Russia on Friday after the U.S. president branded Vladimir Putin a “war criminal” and offered $800 million more in arms to Ukraine. A Kremlin spokesman said a report of major progress in talks with Ukraine was “wrong” but that discussions will continue on Thursday.
Ukraine’s biggest utility said 1.3 million people were without power and the military said Russian strikes continued on infrastructure and on densely populated residential areas, even as the Kremlin’s forces remain bogged down. Russia said its troops were advancing in the Luhansk region in the east. Fighting continues close to Kyiv.
Group of Seven foreign ministers meet virtually Thursday to discuss the crisis. On Wednesday Zelenskiy told NBC News that negotiations with Russia are continuing but are “fairly difficult.”
(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)
Key Developments
- China Affirms Ukraine Friendship, Promise to ‘Never Attack’
- Broke Oligarch Says Sanctioning Billionaires Won’t Sway Putin
- War in Ukraine Sends Shockwaves Across European Industries
- Russia’s Ruined Gameplan for Ukraine Is Visible in the South
- In a Chilling Threat, Putin Vows to Rid Russia of ‘Traitors’
- Escape From Mariupol: One Man’s Story of the Devastation of War
All times CET
JPMorgan Processed Russia Bond Payments, Sent to Citigroup (5:24 p.m.)
JPMorgan Chase & Co. has processed funds that were earmarked for interest payments due on dollar bonds held by the Russian government and sent the money on to Citigroup Inc., according to people familiar with the matter.
JPMorgan was the correspondent bank Russia used to send the payment to Citigroup, which is acting as payment agent on the bonds, the people said, asking not to be identified discussing a private matter. JPMorgan sent the money to Citigroup after it sought and received the required approvals from U.S. authorities on Wednesday, one of the people said.
Representatives for JPMorgan and Citigroup declined to comment. Russia’s ability to make payments to bondholders on its debt is being closely watched by markets around the world.
Slovakia Offers Anti-Air Missiles If Replacement Available (4:40 p.m.)
Slovakia is willing to provide its S-300 air defense system to Ukraine if the NATO country receives an appropriate replacement or an air defense capability “guaranteed for a certain period of time,” Slovakia’s Minister of Defense Jaroslav Nad said at a press conference with U.S. Defense Secretary Lloyd Austin.
Slovakia relies on the Russian-made S-300 for its own air defense, so without a replacement there would be a “security gap,” Nad said. The NATO country is in discussion with the U.S. and the alliance, Austin said without providing further details.
Slovakia is one of three NATO countries that have the Russian-made air defense system. The other two are Bulgaria and Greece. Ukraine already has about 100 of these systems.
Russian Grain Exports Flowing at Slower Pace (4:30 p.m.)
Russian grain exports are moving at a slower pace than a year ago as the war in Ukraine enters its fourth week.
AgFlow, a Geneva-based crop data company, estimates about 73 vessels carrying wheat and other staples departed Russia in the first two weeks of March, versus 220 during the same period of 2021. Another ship-tracking platform, Sea/ by Maritech, estimated crop tonnage from the nation’s ports in the week to March 12 fell by half from the preceding seven days.
The International Grains Council on Thursday cut its forecast for Ukraine’s 2021-22 grain exports to 47.8 million tonnes from 62.8 million estimated in February, before Russia’s invasion.
Russians Kill 21 Near Kharkiv in Shelling Attack (4:25 p.m.)
Russian forces killed 21 people and wounded 25 by shelling the town of Merefa, west of Kharkiv, early Thursday, the Kharkiv regional prosecutor’s office said. The attack destroyed a cultural club and the town’s school, it said.
DTEK Says 1.3 Million Ukrainians Are Without Power (4:20 p.m.)
Ukrainian utility DTEK Energy BV Chief Executive Maxim Timchenko said 1.3 million people are disconnected from the power grid, many of them in the besieged city of Mariupol, as well as the capital Kyiv. The company is diverting coal generation to its power stations in the west of the country and switching some units to run on gas.
DTEK, Ukraine’s largest private power utility, says it’s producing 45,000 tonnes of coal per day, roughly half of demand, and has boosted gas supplies. Timchenko welcomed a deal between the EU and Ukraine yesterday to link energy supplies, and said that in the long run, Ukraine could become an exporter to the EU.
Russia Extends U.S. Basketball Star Griner’s Detention (3:30 p.m.)
A Moscow court extended the detention of U.S. Olympic basketball star Brittney Griner until May 19 on charges of smuggling cannabis oil, the Tass news service reported. Greiner, the 31-year-old star center for the Phoenix Mercury, was arrested at the Sheremetyevo airport in Moscow in February. She was there to play for the Russian league’s team UMMC Ekaterinburg.
Turkey: Russia Doesn’t Object to It Guaranteeing Peace Deal (3:02 p.m.)
Russia didn’t object to Ukraine’s suggestion that Turkey be a security guarantor in any deal to end the war, Turkish Foreign Minister Mevlut Cavusoglu said in televised comments during a visit to Ukraine.
Russia Widens Its Net to Muzzle Free Speech (2:33 p.m.)
A social media influencer known on Instagram as Belonika is one of the first people to run afoul of Russian legislation that makes criticism of the war in Ukraine punishable by as many as 15 years in jail.
Veronika Belotserkovskaya until recently mostly posted pictures of her glitzy lifestyle, but when Russia invaded Ukraine her posts turned political, often searing in their opposition to the war and Russian leader Vladimir Putin.
Russia’s Investigative Committee say the posts “discredited” government authorities and Russia’s armed forces. She’s not in Russia, though, and the country may seek to put her on international wanted lists, the committee said.
Futures on the S&P 500 and Nasdaq 100 extended declines and stocks in Europe turned lower after the comments. Treasury yields rose, and crude oil advanced.
UNSC to Hold Another Emergency Meeting (1:39 p.m.)
The United Nations Security Council on Thursday will hold another emergency meeting on Russia’s war on Ukraine, this time at the request of the U.S.
While the council has little power to influence Russia’s actions, the meetings have served as a venue to underscore international criticism of Moscow. Thursday’s meeting is set for 3 p.m. New York time.
Biden to Speak With Xi Jinping on Friday (1:05 p.m.)
President Joe Biden will speak with Chinese counterpart Xi Jinping on Friday, as the U.S. leader looks to shore up global pressure on Russia to halt its war in Ukraine.
It will be the pair’s first call since November, and follows a meeting in Rome Monday between National Security Adviser Jake Sullivan and China’s top diplomat, Yang Jiechi.
“The two leaders will discuss managing the competition between our two countries, as well as Russia’s war against Ukraine and other issues of mutual concern,” the White House said in a statement.
Kremlin Denies Major Progress Made in Talks (11:00 a.m.)
Kremlin spokesman Dmitry Peskov said a Financial Times report of substantial progress in talks with Ukraine was “wrong” but that the discussions will continue on Thursday. He blamed Kyiv for dragging its feet on negotiations, saying Ukraine’s government was “in no rush.” Ukraine dismissed the Financial Times report on Wednesday, saying significant issues remained.
Peskov also said that President Joe Biden’s characterization of Vladimir Putin as a “war criminal” was “unforgivable.”
Russia Not Acting Like It Wants to Settle, Pentagon Aide Says (10:30 a.m.)
Russia continues to “hammer” cities like Kharkiv and Cherniyiv with bombardments and rocket systems, Pentagon spokesman John Kirby said in an interview with Bloomberg TV.
“For all the talk about wanting to find a diplomatic path forward, we haven’t seen them act on that,” Kirby said. “What you’re seeing by the Russians on the ground is a full-on commitment to military operations.”
Kirby said Ukrainian forces have essentially stalled Russia’s advance and are using weapons received from allies in an effective way.
Russian Invasion Is ‘New Wall,’ Zelenskiy Tells Germans (9:49 a.m.)
Zelenskiy said Russia’s invasion of Ukraine was erecting a “new wall” in Europe, a reference to the Berlin Wall that symbolized post-World War II division. Speaking to German lawmakers, Zelenskiy beseeched Chancellor Olaf Scholz to abandon the country’s traditional commercial interests with Russia and “tear down this wall” — evoking President Ronald Reagan’s iconic 1987 speech at the Berlin Wall, directed to then-Soviet leader Mikhail Gorbachev.
“Give Germany the leadership role you deserve,” Zelenskiy told the lower house in a video address from Kyiv, saying the much more distant U.S. had become “closer to us than you.” He lamented Germany’s long-standing support for the Nord Stream 2 pipeline, a direct link with Russia, as a “sad” legacy — and said that continued energy imports from Russia are financing the Kremlin’s military goals.
Ruble Gains for a Sixth Day; European Stocks Up (9:48 a.m.)
Russia’s Finance Ministry said it had sent the order for a $117 million coupon payment on its Eurobonds to the foreign correspondent bank on March 14. The ruble gained for a sixth day in Moscow trading.
Austria’s Raiffeisen Bank Considers Exit From Russia (9:47 a.m.)
Austria’s Raiffeisen Bank International AG said it was considering all options for the future of its Russian subsidiary, including a carefully managed exit from the market.
Raiffeisen, the largest foreign-owned retail bank Russia, is continuing operations in all countries for now and is complying with international sanctions law, it said.
China Affirms Its Friendship With Ukraine (9:13 a.m.)
China’s foreign ministry endorsed earlier remarks by its envoy to Ukraine, seen as some of Beijing’s most supportive comments yet to the war-torn country.
On Monday, Ambassador Fan Xianrong told the governor of the western city of Lviv that China was a “friendly country for the Ukrainian people” and would “never attack Ukraine,” according to a summary posted on the Lviv government’s website. He went on to profess China’s “respect” for the state and praise the strength and unity of the Ukrainian people. Asked on Thursday about Fan’s comments, Foreign Ministry spokesman Zhao Lijian said “China surely supports these remarks by our ambassador in Ukraine.
U.K. Says Russia ‘Stalled On All Fronts’ (7:00 a.m.)
As the invasion of Ukraine enters its fourth week, the attack “has largely stalled on all fronts,” according to a U.K. Defense Intelligence assessment. “Russian forces have made minimal progress on land, sea or air in recent days and they continue to suffer heavy losses.”
House Moves to Revoke Russia’s Trade Status (4:48 a.m.)
Lawmakers are close to an agreement for legislation to revoke normal trade relations with Russia, the latest move in a series of congressional efforts to hobble the Russian economy in response to the invasion of Ukraine.
Removing Russia’s “most-favored-nation” trade status would enable the U.S. to impose higher tariffs on Russian goods, and take other actions. House Majority Leader Steny Hoyer said the vote would take place Thursday. Revoking the status, which in the U.S. requires legislation, would put Russia in the same category as other states viewed by Washington as pariahs including North Korea and Cuba.
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