(Bloomberg) — Negotiators from Ukraine and Russia spoke Friday via video link, though previous talks failed to agree even to a temporary cease-fire. Russian Foreign Minister Sergei Lavrov said Moscow is preparing a response to Ukraine’s proposals on ending hostilities.
President Xi Jinping said China finds the situation in Ukraine “deeply regrettable.” Xi held a virtual summit Friday with European Union leaders, who said they expect Beijing at the very least not to interfere with sanctions imposed on Russia.
Russia said two Ukrainian helicopters made a rare strike across the border, hitting an oil tank facility in the city of Belgorod. There was no confirmation from Kyiv. The military in Ukraine said it retook several villages in the Kherson region to the south.
(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)
Key Developments
- Gazprom Starts Telling Clients How to Pay for Gas in Rubles
- Mariupol’s Splintering Loyalties May Be Enough for Putin
- Putin Set for $321 Billion Windfall If Oil, Gas Keep Flowing
- There’s Now an App for Ukrainians Seeking to Remain in the U.S.
- Chinese Buyers Given Flexibility to Pay in Yuan for Russian Oil
- Russia Seeks New Ways to Sell Its $20-Billion-a-Year Gold Output
All times CET:
Russia Says Fire Out at Belgorod (9:26 p.m.)
The Russian Emergency Ministry said the fire at the Belgorod oil depot has been extinguished, Tass reports. The Belgorod mayor said on Telegram people living near the facility can return to their homes.
Earlier Friday, Moscow said two Ukrainian military helicopters attacked the facility, about 50 km (30 miles) north of the border.
Russian Pullout from Chernobyl Completed, IAEA Says (7:44 p.m.)
All Russian forces have left the Chernobyl nuclear plant in Ukraine — site of the deadly 1986 meltdown — and international monitors are preparing to go in, the International Atomic Energy Agency said on Twitter.
Director General Rafael Mariano Grossi “intends to head an IAEA assistance and support mission” to the plant “as soon as possible,” the agency said.
U.K. Creates Sanctions Exception for Russia Bond Payments (7:24 p.m.)
The U.K. Treasury has approved a sanctions exception for the banks, clearinghouses and other intermediaries that help funnel payments on Russia’s international sovereign bonds to investors.
The British government published a notice outlining the exemption from its Russia-related sanctions regime to allow for financial services enabling the transfer of such payments. The measure applies to debt that was issued by the Russian government before March 1, is effective from April 1 and is set to expire June 30.
U.S. Sees Sanctions Hobbling Russia Despite Ruble Rebound (7:05 p.m.)
The U.S. Treasury Department sees a Russian economy hobbled by a deep recession, high inflation and a lack of access to much-needed imports, especially technology, as sanctions imposed by the U.S. and its allies begin to eat away at the country’s economic defenses despite a recent rebound in the ruble and the benefit of higher oil prices.
Russia’s economic resilience is based on its ability to produce and sell natural resources, principally oil, into the global market but it will now have the extremely difficult problem of being able to consume only what it makes, according to a senior Treasury official who briefed reporters on condition of anonymity.
The official discounted reports of a rebound in the ruble, saying that Russia has imposed a number of severe controls on its currency in order to prop it up and said that a better measure of the strength of the currency was its domestic value, which has been undermined by a spike in inflation as a result of the sanctions. The official also said that while a black market for the currency has emerged, it is not organized.
Putin Unlikely to Give Up Goal in Ukraine, Analyst Says (7:00 p.m.)
Russian President Vladimir Putin may agree on a cease-fire with Ukraine but he’s unlikely to give up his long-term goal to subjugate his neighbor, said Angela Stent, a senior fellow at the Brookings Institution.
“I can see a path toward a cease-fire that might last for some time,” Stent said in an interview on Bloomberg Television’s “Balance of Power With David Westin.” “Ukraine could make concessions as well as Russia. But as long as Putin’s in the Kremlin, I doubt he will give up his dream.”
Ukraine’s leaders have offered Putin an off-ramp from the war by saying they’re open to neutrality. Putin could present this as a victory to his people, Stent said, although she sees no signs yet the Russians are prepared to withdraw their troops.
Ukraine Raises $600,000 Through Museum NFT Sales (6:20 p.m.)
The money will be used to rebuild museums, theaters and other cultural institutions. Ukrainian MetaHistory NFT-Museum sold 1,282 artworks on its first day of sales, raising 190 Ether cryptocurrency tokens for the Ministry of Digital Transformation of Ukraine, the museum said in an email.
Sberbank’s U.K. Arm to Be Wound Down Amid Sanctions (6:15 p.m.)
The U.K. arm of Russia’s biggest lender Sberbank of Russia PJSC is being wound down, London’s highest-profile financial casualty in the aftermath of the invasion of Ukraine.
Sberbank CIB U.K. Ltd. will enter so-called special administration, a form of insolvency that ensures there’s minimal disruption to financial markets, a London judge ordered on Friday. As with many Russian financial subsidiaries in countries that have imposed sanctions, Sberbank CIB has struggled to carry on as key staff leave and counterparties walk away.
EU Leaders Warn China on Russia Sanctions (4:13 p.m.)
“We expect China, if not supporting the sanctions, at least to do everything not to interfere in any kind,” European Commission President Ursula von der Leyen told reporters after the meeting with Xi. “On that point we were very clear.” She added the EU expected China to use its influence on Russia to end the war.
Chinese Premier Li Keqiang said during the summit that Beijing has been promoting peace talks on Ukraine in its own way, and is willing to play a constructive role.
Refugees May be Able to Swap Hryvnias Into Euros (2:15 p.m.)
Ukrainian refugees in the EU may soon be able to swap some of their banknotes into euros and other currencies. The EU’s executive arm asked member states to set up facilities that allow each person to exchange up to 10,000 hryvnia ($339) free of charge at an official rate set by the Ukrainian central bank. Poland started a similar initiative in March.
Ukraine Refugees in EU Given Hope of Swapping Hryvnia Banknotes
Many of the 4 million people who’ve fled Ukraine invasion — over half of them going initially to Poland — have had trouble swapping hryvnia for local currency because banks haven’t been willing to take risks related to wild exchange-rate swings.
Russia’s Chief Negotiator Says Talks Have Resumed (12:55 p.m.)
Talks between Russia and Ukraine resumed on Friday via video conference, Russia’s chief negotiator Vladimir Medinsky said on his Telegram channel, adding his country’s stance on Donbas and Crimea is unchanged. Mykhailo Podolyak, an adviser to the Ukrainian president’s chief of staff, confirmed that the discussions are continuing.
Gazprom Starts Giving Details on Ruble Payment Plan (12:35 p.m.)
Russia’s Gazprom is starting to tell clients how to pay for their gas after Putin said purchases from “unfriendly” nations including Europe would need to be settled in rubles. Germany is still going over the details before coming to any conclusions, government spokesman Wolfgang Buechner told reporters.
Meanwhile the Kremlin signaled that gas would keep flowing, and said payments for April gas weren’t due until late in the month or early May.
Lavrov Says Moscow Working on Response (11:36 a.m.)
Foreign Minister Sergei Lavrov said Russia is preparing a response to Ukraine’s proposals on security guarantees and ending the war. Lavrov made televised comments during a press briefing in New Delhi.
Russia is ready to discuss Kyiv’s proposals on non-nuclear, neutral status, he said, adding that Ukraine has shown “more understanding” of the realities in Crimea and Donbas. Tass cited an unidentified person from the Russian side of negotiations saying talks with Ukraine would resume Friday via video.
Russia’s Yamal-Europe Gas Pipeline Flows in Reverse (10:29 a.m.)
Russian gas flows via the Yamal-Europe pipeline reversed this morning, with fuel flowing from Germany to Poland — the opposite of the normal direction. That’s been a common occurrence for this pipeline over the past few months, and doesn’t signal a halt in Russian gas flows to Europe. In many cases, it just shows German companies are ordering less gas, while demand in Poland is higher.
Flows via Nord Stream, the direct link to Germany, were near the pipeline’s full capacity.
Don’t Read Too Much Into Reverse Gas Via Russia Pipeline
Natural Gas Fluctuates as Traders Weigh Putin’s Demand (9:43 a.m.)
Natural gas prices in Europe fluctuated as traders weighed the potential impact on the market by Russia’s decision to shift payment for its supplies to rubles, with colder weather also set to boost demand.
European stocks and U.S. equity futures rose slightly as investors evaluated the economic outlook amid moderating oil prices, tightening Federal Reserve monetary policy and Russia’s war in Ukraine.
Russian-Linked Containers Pile Up in Rotterdam (9:34 a.m.)
Measures taken against Russia are snarling thousands of steel shipping containers in Rotterdam as each box needs to be carefully inspected to make sure moving it won’t somehow breach sanctions, according to the CEO of the massive port.
His comments gave unique insights into how the beating heart of Europe’s real economy is being battered by measures taken against Moscow after its invasion of Ukraine.
Ukrainian Retakes Ground in Kherson, Chernihiv Regions (8:49 a.m.)
Eleven villages in the southern Kherson region and several others in the Chernihiv region northeast of Kyiv have been returned to Ukrainian control, according to the military’s General Staff. Shelling of towns and villages along the contact line in the east continued overnight, with civilian casualties reported after nine apartment buildings and nine private houses were shelled.
The intensity of shelling declined in Chernihiv and Kharkiv, although a missile hit the center of Kharkiv Thursday night. Fighting continues near Chernihiv, Izyum and at the border of Kherson and Mykolayiv regions to the south.
Refugees Arriving in Poland Now Top 2.4 Million (8:45 a.m.)
Another 23,000 people arrived in Poland from Ukraine on Thursday, and another 3,500 early Friday, taking total refugees since Feb. 24 to 2.415 million, Polish border authorities said.
Over 4 million people have fled Ukraine since the start of the Russian invasion.
Ukraine Said to Make Rare Strike in Russian Territory (8:30 a.m.)
Moscow said two Ukrainian military helicopters attacked an oil-storage facility in the Russian city of Belgorod, about 50 km (30 miles) north of the border, causing a large fire early Friday.
Tass quoted Belgorod Governor Vyacheslav Gladkov as saying the aircraft flew in at low altitude. Eight oil fuel tanks were burning and authorities said the fire might spread. Two workers were reported to have been injured and nearby residents were being evacuated.
Focused on fighting Russian troops on their own territory since Feb Ukrainian forces haven’t claimed any strikes on the other side of the border since the start of the war on Feb. 24.
World Underestimating Impact of War, OECD Says (8:00 a.m.)
Governments aren’t sufficiently aware of the longer-lasting economic fallout from Russia’s invasion of Ukraine, said OECD Chief Economist Laurence Boone.
“I really believe we’re underestimating the medium-term impact of this war,” Boone told Bloomberg Television’s Francine Lacqua in Cernobbio, Italy, on Friday. “The longer the war will last, the more uncertainty we have, and the more worried we’re getting because uncertainty deters consumer purchases and business investment.”
Russia Redeploying Forces From Georgia, U.K. Says (7:45 a.m.)
Russia is redeploying as many of 2,000 troops from Georgia to reinforce its invasion of Ukraine, the U.K. defense ministry said. The forces are being reorganized into battalion tactical groups.
“It is highly unlikely that Russia planned to generate reinforcements in this manner and it is indicative of the unexpected losses it has sustained during the invasion,” the U.K. said.
Russia Jamming Jet Navigation, France Says (6:00 a.m.)
Russia’s military has been jamming satellite navigation systems used by commercial aircraft since the invasion of Ukraine, highlighting the need for robust alternatives, according to a French safety regulator.
Airline pilots have reported disruptions in regions around the Black Sea, eastern Finland and the Kaliningrad enclave, said Benoit Roturier, head of satellite navigation at France’s civil aviation authority DGAC. The interference appears to be caused by Russian trucks carrying jamming equipment typically used to protect troops and installations against GPS-guided missiles, he said.
Russia Is Jamming Jet Navigation, French Safety Official Says
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