(Bloomberg) — U.S. President Joe Biden is set to meet allies in Brussels to discuss ways to pressure Vladimir Putin to withdraw forces from Ukraine, discussions that come a month after the Russian leader ordered troops to invade.
In that time the war has left large parts of Ukraine devastated, even as the country’s military has managed to prevent Russian forces from capturing the capital Kyiv and other key cities. The U.S. and its allies have imposed unprecedented sanctions on Russia, while offering military assistance to Ukraine.
The Biden administration is set to announce new sanctions against Russian political figures and oligarchs, and is close to a deal with the European Union aimed at slashing its dependence on Russian energy. Putin’s government, meanwhile, has demanded payment for its natural gas in rubles — sending gas and oil prices higher in the latest among many market disruptions since the invasion began.
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Key Developments
- Zelenskiy’s Virtual World Tour Proves a New Weapon in Russia War
- Putin Demands Ruble Payment for Gas, Escalating Energy Fight
- Russia Central Banker Wanted Out Over Ukraine, But Putin Said No
- EU Looks to Tighten Russia Sanctions Without Touching Energy
- Russia Central Banker Wanted Out Over Ukraine, Putin Said No
All times CET:
Xi Gives Zelenskiy Cold Shoulder (5:03 a.m.)
President Xi Jinping has spoken to at least eight world leaders, including Vladimir Putin, in the month since Russia invaded Ukraine on Feb. 24. But there’s one big omission from his diplomatic outreach: Zelenskiy.
While the Chinese leader has encouraged Russia to move toward negotiations, offered to work with France and Germany to promote talks and told Biden that China “stands for peace,” the silence between Xi and Zelenskiy raises questions over Beijing’s commitment to mediation.
Google Users Have Issues Using News App, Website (3:10 a.m.)
A Google spokesperson confirmed that some people were having difficulty accessing its news app and website in Russia, adding that this was not due to technical issues on its end.
Oil Rises as Nations Prepare to Step Up Pressure on Moscow (2:51 a.m.)
Brent advanced above $123 a barrel, after rallying more than 5% on Wednesday as U.S. stockpiles dropped and a Black Sea export terminal halted loadings following bad weather.
U.S. Draws Up Contingency Plans for Russia Escalation: NYT (12:53 a.m.)
The White House has assembled a team of national security experts to discuss contingency planning if Russia’s Vladimir Putin turns to his stockpiles of chemical or nuclear weapons, the New York Times reported, citing several officials involved in the process.
The so-called Tiger Team meets three times a week in classified sessions and is looking at responses if Russia seeks to extend the war into neighboring countries, the newspaper said. Plans are expected to be discussed at the NATO meeting in Brussels Thursday.
U.S. Makes Contingency Plans in Case Russia Uses Its Most Powerful Weapons
Kremlin Declares U.S. Diplomats Persona Non Grata (12:15 a.m.)
Russia’s Foreign Ministry has declared a number of American diplomats “persona non grata,” a U.S. State Department spokesperson said Wednesday night.
The spokesperson said the U.S. Embassy in Moscow had received a list of diplomats, but didn’t provide further details. The spokesperson said expulsions of U.S. personnel were not justified and criticized Russia for making such a decision at a time of rising tensions between the two countries.
Zelenskiy Calls for Global Rallies to Show Solidarity (11:01 p.m.)
In a video address, Zelenskiy — speaking in English — urged people across the world to hold rallies in solidarity with Ukraine starting on March 24, a month after Russia invaded.
“Come to your squares, your streets, make yourselves visible and heard,” the president said. “Come from your offices, your homes, your schools and your universities. Come in the name of peace. Come with Ukrainian symbols to support Ukraine, to support freedom, to support life.”
U.K. Faces $5 Billion Bill Over Gazprom Unit (10:35 p.m.)
U.K. taxpayers may face billions of pounds in costs if the government ends up nationalizing a unit of Gazprom PJSC that supplies about a fifth of the country’s commercial gas. Temporarily running the unit, an energy provider to the National Health Service, would cost about 4 billion pounds ($5.3 billion), according to people familiar with the matter.
The U.K. is preparing to step in as the unit and its parent company are coming under pressure from customers turning their backs on Russian business. The government may have to appoint a special administrator, instead of going through the usual process of letting other suppliers bid to take over the clients.
New U.S. Weapons Shipments Arriving for Ukraine (10:24 p.m.)
The first shipments from the latest $800 million security assistance package will arrive in Europe within a day for transport to Ukraine, a senior U.S. defense official said Wednesday. Much of the equipment goes in by ground, and the U.S. hasn’t seen any threats yet to those routes, the official said.
In the war, the U.S. official said, Russia appears to be digging in, taking defensive positions on land while its pilots are cautious and shy away from lingering in contested air space over Ukraine.
UN Debating Humanitarian Aid to Ukraine (10:13 p.m.)
The United Nations General Assembly is debating two resolutions calling for humanitarian access to Ukraine. One that calls on Russia to cease its assault on Ukraine, is expected to receive a majority of yes votes.
France and Mexico, which are sponsoring that measure, decided to seek a vote in the General Assembly after weeks of negotiation in the Security Council failed to lead to an agreement, with Russia signaling it would wield its veto power there. Russia’s envoy is calling on members to instead support a rival resolution drafted by South Africa that doesn’t mention Moscow’s role in the war.
Renault Halts Operations at Moscow Plant, Weighs Exit (9:47 p.m.)
Renault SA will halt industrial operations at its Moscow plant and is considering its future in a joint venture in the country, which is the carmaker’s second-biggest market.
The announcement came after Zelenskiy called out French companies for operating in Russia in an address to France’s parliament, appealing to the country’s love for “liberty, equality, fraternity” as he asked for more help to combat the Kremlin’s aggression.
Russia Limits Google News in Media Clampdown (9:21 p.m.)
Russia’s media watchdog Roskomnadzor restricted Google News on Wednesday for providing reader access to stories that contain “false publicly important information” about the war in Ukraine.
Since the beginning of the war last month, Russia has shut down TV Rain independent channel and Ekho Moskvy radio and restricted access to other news websites, as well as banning access to Facebook and Instagram, in a sweeping curb on the remaining sources of independent information.
U.S., EU Close to Deal Curbing Russia Energy Demand (8:56 p.m.)
The U.S. and EU are close to a deal aimed at slashing Europe’s dependence on Russian energy sources. Biden’s national security adviser Jake Sullivan said an agreement would be announced as soon as Friday.
Sullivan said there’ll likely be a “surge” in U.S. supplies of liquefied natural gas to Europe “not just over the course of years, but over the course of months.”
Scholz Speaks Separately with Putin, Zelenskiy (8:29 p.m.)
German Chancellor Olaf Scholz urged Putin in a phone conversation to reach a cease-fire quickly and improve the humanitarian situation in Ukraine, according to a spokesman for the German federal government. Scholz then spoke with Zelenskiy to get his latest assessment of the situation and ongoing negotiations with Russia.
Blinken Says U.S. Review Found Russian War Crimes (7:47 p.m.)
Secretary of State Antony Blinken said a U.S. review determined that Russian forces were guilty of war crimes in Ukraine, citing “credible reports” of deliberate attacks on civilians.
Russian forces had destroyed “apartment buildings, schools, hospitals, critical infrastructure, civilian vehicles, shopping centers, and ambulances, leaving thousands of innocent civilians killed or wounded,” Blinken said in a statement. Wednesday’s announcement came a week after Biden said he thought Putin was a war criminal, a remark that prompted Russian officials to warn that that relations were near a breaking point.
White House Says No Sign China Supplied Russia With Arms (7:18 p.m.)
Biden’s National Security Adviser Jake Sullivan said Wednesday there’s no sign yet of China supplying Russia with arms for its war in Ukraine.
But Sullivan told reporters aboard Air Force One as he traveled with Biden to Europe that “this is not the kind of circumstance where you just kind of feel reassurance. It’s going to require constant vigilance, constant monitoring.”
In a video conference last week, Biden warned Chinese President Xi Jinping of consequences if Beijing aids Moscow financially or militarily, following U.S. concern that China was weighing support for its diplomatic ally.
U.S. to Impose New Sanctions on Political Figures, Oligarchs (6:51 p.m.)
Jake Sullivan, Biden’s national security advisor, told reporters traveling with the president that the U.S. is poised to announce added sanctions against Russian figures after Biden arrives in Brussels for a summit with allies.
“The United States will announce a package of sanctions designation tomorrow that relate both to political figures, oligarchs, so individual designations as well as entities, and that’ll be released tomorrow,” he said.
He also said there will be more to say on Friday about reducing “the dependence of Europe on Russian gas –full stop — and the practical roadmap for how to do that.” He said “you can expect that the U.S. will look for ways to increase LNG supplies, surge LNG supplies to Europe, not just over the course of years, but over the course of months as well.”
Zelenskiy Said to Have Urged Against Abramovich Sanctions (6:14 p.m.)
The U.S. Treasury was preparing sanctions against Russian oligarch Roman Abramovich, but Ukraine’s President Zelenskiy urged President Biden to hold off and action was delayed, according to the Wall Street Journal.
Zelenskiy told Biden in a phone call to wait because Abramovich could become a go-between in efforts to negotiate peace, the Journal said, citing people familiar with the plans that it didn’t identify.
“We are not going to read out private conversations” between Biden and Zelenskiy, Emily Horne, a spokesperson for the U.S. National Security Council told the Journal.
Sweden Sends Anti-Tank Weapons to Ukraine (5:45 p.m.)
Sweden is sending a second batch of 5,000 anti-tank weapons to Ukraine, Defense Minister Peter Hultqvist told the TT news agency. In the days after Russia’s Feb. 24 invasion, Sweden announced that it would donate field rations, body armor, helmets and shoulder-fired, unguided anti-tank weapons to Ukraine. The second shipment also includes equipment for mine removal.
NATO Estimates Russian Combat Deaths Top 7,000 (5:15 pm)
At least 7,000 Russian soldiers have likely been killed so far during the Kremlin-ordered invasion of Ukraine, and the total number could be as high as 15,000, NATO officials said. They said the estimate is based on a combination of Ukrainian estimates, Russian disclosures, Western intelligence and open-source information.
The number of wounded is likely much higher, the officials said, noting that for each soldier killed in combat, there are usually three more wounded. But information about the status of Russia’s forces in Ukraine has been sparse, which means the actual toll is unknown.
Italy Disinclined to Use Rubles for Russian Gas (4:39 p.m.)
“My view is is that we pay in euros because paying in rubles would be a way to avoid sanctions, so I think we keep paying in euros,” Francesco Giavazzi, Italian Prime Minister Mario Draghi’s economic adviser, said at the Bloomberg Capital Market Forum in Milan.
President Vladimir Putin said earlier that Russia will start demanding payment for its natural gas shipments to states that it deems “unfriendly” in rubles.
Russia Central Banker Wanted Out Over Ukraine (4.30 p.m.)
Russia’s highly regarded central bank Governor Elvira Nabiullina sought to resign after Vladimir Putin ordered an invasion of Ukraine, only to be told by the president to stay, according to four people with knowledge of the discussions.
Read our exclusive here.
EU Looks to Tighten Sanctions Minus Energy (3:41 p.m.)
The EU is considering tightening or expanding existing sanctions against Russia in coordination with the U.S., while refraining from major new steps to cut off oil and gas purchases.
EU leaders won’t forge new penalties against Russia at their summit, officials in French President Emmanuel Macron’s office told reporters Wednesday. Any new measures countries can agree on would be limited in scope and possibly focused on closing loopholes, according to an EU diplomat.
Amid the threat of a deepening divide over how to limit Moscow’s biggest source of revenue, another EU official said the 27-nation bloc and the U.S. could announce further asset freezes and travel bans against individuals and entities.
NATO Warns Russia Against Nuclear Threats (2:52 p.m.)
NATO Secretary General Jens Stoltenberg warned Russia against making threats that could escalate the war in Ukraine.
“Russia must stop its nuclear saber-rattling,” Stoltenberg told reporters in Brussels on Wednesday, a day before NATO leaders meet there for a summit.
“This is dangerous and it is irresponsible,” he said. “NATO is there to protect and defend all allies and we convey a very clear message to Russia that a nuclear war cannot be won and should never be fought.”
Putin Demands Ruble Payments for Gas (2:37 p.m.)
Russia will start demanding payment for its natural gas shipments to states that it deems “unfriendly” in rubles, President Vladimir Putin said Wednesday at a meeting with his government.
Putin ordered the central bank to develop a mechanism to make ruble payments within a week, according to the transcript. Russia earlier named the U.S., U.K. and members of the European Union unfriendly nations. European benchmark gas prices extended gains, jumping as much as 21% on the ICE Endex in Amsterdam.
Biden Sees Risk of Chemical Weapons (2:10 p.m.)
Biden sees a “real risk” that Putin will deploy chemical weapons in Ukraine, in comments made while he was leaving the White House for Europe.
Biden will join back-to-back summits Thursday with NATO, the Group of Seven and the European Union in Brussels, in an attempt to rally allies and partners behind his administration’s tough approach to Russia and to signal a united front to China.
France Sees No New Sanctions on Russia This Week (1:55 p.m.)
France doesn’t see new sanctions against Russia being adopted at this week’s EU summit, officials in President Emmanuel Macron’s office said. France wants OPEC to increase oil production to relieve market constraints, they added, and would like the European Commission to handle negotiations for joint purchases of oil and gas in the future.
Asked about China, they said the country was not “indifferent” to the conflict and “doesn’t necessarily support” the Russian invasion, and that France would like Beijing to clearly state its opposition to Moscow’s operations.
EU Agrees Support for Hosting Ukrainian Refugees (1:37 p.m.)
The EU earmarked more cash and other support for countries hosting Ukrainian refugees after 3.5 million people, mainly women and children, crossed the bloc’s borders since Russia launched its assault.
Member states can tap as much as a combined 10 billion euros ($11 billion) this year from the React-EU program. Other measures include special dispensations to protect children, provide Ukrainian-language teaching, and offer health care, including vaccines and mental health counseling. Programs are also being developed to match refugees with jobs and provide housing to the millions of those displaced by the war.
Germany’s Top War Risk Is Firms Cutting Russia Ties (1:34 p.m.)
The war in Ukraine will hurt Germany most as Western companies break off business ties with Russia, according to a survey of financial-market experts by ZEW. Other measures — such as excluding Russian lenders from SWIFT and freezing central bank-reserves and oligarchs’ assets — will have a much more muted impact, the poll suggested.
U.S., EU in Talks on LNG, Hydrogen Supply (1:33 p.m.)
The European Union and the U.S. are working on an agreement that would aim to ensure a supply of American liquefied natural gas and hydrogen to EU member states as the bloc works toward ending its reliance on Russian energy.
Joe Biden and European Commission President Ursula von der Leyen could announce an agreement this week while the U.S. president is in Brussels meeting with NATO, Group of Seven and EU allies, according to a diplomatic correspondence seen by Bloomberg.
Russian Stock Trading to Resume After Record Market Shutdown (12:50 p.m.)
Russia will restart trading in some local equities, ending the nation’s record long shutdown that was meant to shield domestic investors from the impact of sanctions.The Moscow Exchange will resume trading in 33 Russian equities, including Gazprom PJSC and Sberbank PJSC, on March 24 between 9:50 a.m. and 2 p.m. local time, the Bank of Russia said in a statement.
A ban on short selling will apply, it said. Local stock trading has been halted from Feb. 28, marking the longest closure in the country’s modern history. Even with the ban on short selling, local traders and strategists are bracing for a selloff.
Putin Adviser Quits Over War, Leaves Russia (12:47 p.m.)
Russian climate envoy Anatoly Chubais resigned and left the country, citing his opposition to President Vladimir Putin’s war in Ukraine, according to two people familiar with the situation.
Chubais, known as the architect of Russia’s 1990s privatizations, is the highest-level official to break with the Kremlin over the invasion. Chubais also gave Putin his first Kremlin job in the mid-1990s and initially welcomed his rise to power at the end of that decade.
Grain Sowing Starts in Ukraine, Offering Signal to Markets (11:50 a.m.)
Ukraine’s government said farmers have begun the seasonal planting campaign in the southern Odesa region, potentially easing fears that the war will disrupt growing in one of the largest grain producers in the world.
Agriculture Minister Roman Leshchenko told Reuters Tuesday that Ukraine’s planting areas could be halved this year to 7 million hectares. So far, 30,000 hectares have been sown with spring barley, the ministry said on its website.
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