(Bloomberg) —
Russia continues to press a land assault in the Donetsk region while attempting to complete its capture of Mariupol in the south. President Volodymyr Zelenskiy said the impending eastern battle will be crucial. Reaction continues to pour in after Russia’s bombing on Friday of a railway station that killed dozens of civilians and injured hundreds more.
The European Union and the U.K. announced sanctions against the daughters of Russian President Vladimir Putin. European Commission President Ursula von der Leyen met Zelenskiy in Kyiv on Friday and promised more sanctions on Russia and financial aid for Ukraine. The EU mission in Kyiv has reopened.
Russia said YouTube had blocked its Duma-TV channel, which shows parliamentary debates and other political content. Russia’s first external default in a century now looks all but inevitable after another brutal week for the country’s finances.
(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)
Key Developments
- Russia’s War in Ukraine: Key Events and How It’s Unfolding
- Dozens Killed as Russia Strikes Ukraine Rail Evacuation Hub
- Nations Eye Modern Arms for Ukraine as Soviet-Era Stocks Dwindle
- War-Crimes Justice Grinds Slowly Amid Fury Over Ukraine Killings
- Ukraine War Has Made This D.C. Writer’s Newsletter a Must Read
- Russia’s First Default in a Century Looks All But Inevitable Now
All times CET:
European Embassies Starting to Return to Kyiv (6:10 p.m.)
European embassies that moved out of Kyiv before or during Russia’s invasion are starting to return, taking their lead from the European Union’s diplomatic mission.
Italy indicated it will reopen its embassy shortly after Easter, ANSA reported, citing Foreign Minister Luigi Di Maio. Austria’s chancellor said embassy staff will return from a location in far western Ukraine “since the situation around Kyiv has now stabilized somewhat,” the Austria Press Agency reported.
Russia Hits Nitric Acid Tank in Ukraine’s East, Official Says (5:02 p.m.)
Ukrainian eastern Luhansk region governor Serhiy Haiday said that Russian troops hit a tank with nitric acid near town of Rubizhne, which they have been shelling.
Exposure to the highly corrosive acid can cause a variety of symptoms including irritation to the eyes and skin, and later lead to conditions such as bronchitis and pulmonary edema. Haiday urged residents to stay inside, close windows and doors, and use protective masks as heavy smoke was seen on the site.
U.K.’s Boris Johnson Makes Surprise Visit to Kyiv (4:13 p.m.)
U.K. Prime Minister Boris Johnson made a surprise visit to Kyiv, the latest in a string of leaders traveling to Ukraine capital to meet with President Volodymyr Zelenskiy.
Johnson pledged new military assistance of 120 armoured vehicles and new anti-ship missile systems. That’s on top of 100 million pounds ($130 million) in equipment announced Friday, including over 800 anti-tank missiles, Javelin anti-tank systems, Starstreak air defence systems and a range of helmets, armour and night-vision goggles.
The U.K. said it has also liberalized tariffs on most imports from Ukraine as prt of its commitment to economic stability.
U.S. Tightens Export Restrictions on Russia, Belarus (3:45 p.m.)
The U.S. widened export controls on Russia and Belarus to effectively cut off access to more products. The restrictions were extended “to almost any sensitive dual-use technology, software, or commodities that could be used to support Russia’s war effort,” the Department of Commerce said Saturday.
The rule expands license requirements to all items on the Commerce Control List, including certain composite materials, medical products, hydraulic fluids, pumps, valves, and lower-level machine tools.
The action also puts on notice Belarus airlines and plane owners that they can’t fly or service any aircraft without U.S. authorization if more than 25% of the machinery’s value comes from American content subject to export controls.
Google Says Complying With Sanctions Laws in Duma Site (3:39 p.m.)
Alphabet Inc.’s Google said it complied with applicable sanctions in blocking the YouTube channel of the Duma, the lower house of Russia’s parliament.
Duma TV said on its Telegram channel earlier Saturday that its account on YouTube, a unit of Alphabet Inc.’s Google, had been blocked.
“Google is committed to compliance with all applicable sanctions and trade compliance laws. If we find that an account violates our Terms of Service, we take appropriate action,” a Google spokesperson said in an emailed statement. “Our teams are closely monitoring the situation for any updates and changes.”
Russia Complains YouTube Blocked Duma TV (2:33 p.m.)
Russian media watchdog Roskomnadzor demanded that Google immediately restore access to the Russian parliament’s YouTube channel, Duma TV, and explain the reason for imposing restrictions.
“The U.S. authorities are forcing American IT companies that own social networks to wage an information war against our country,” said Vyacheslav Volodin, head of the Russian State Duma, according to Tass.
Andrei Klishas, a senior lawmaker, said on his Telegram channel that “YouTube is on its way to becoming illegal in our country.” Foreign ministry spokeswoman Maria Zakharova said YouTube “has sealed its fate.”
Zelenskiy Says Battle for Ukraine’s East ‘Crucial’ (2:30 p.m.)
President Volodymyr Zelenskiy suggested that the coming battle for Ukraine’s east could be decisive. Speaking at a joint press conference with Austrian Chancellor Karl Nehammer, Zelenskiy said that despite evidence of atrocities, Ukraine’s government is willing to continue talks with Moscow.
“Ukraine has always said that it is ready for negotiations and will be seeking any ways to end the war,” Zelenskiy said. “At the same time, unfortunately we see preparations for an important, what some call a crucial, battle in the east of our state.”
Ukraine to Hold Hryvnia Rate Until Martial Law Ends (1:30 p.m.)
Ukraine’s central bank will hold the official hryvnia exchange rate at the current level of 29.25 per U.S. dollar at least until martial law ends, deputy governor Serhiy Nikolaychuk said.
Thereafter it will return “gradually” to a floating rate as the central bank eases restrictions, he said in an interview on local TV. Ukraine’s government imposed martial law on Feb. 24 when Russia invaded and has extended it at least through April 25.
EU Deplores Russian Move to Oust Amnesty, Other NGOs (1:05 p.m.)
The European Union slammed Moscow for its move overnight revoke the registration of 15 widely recognized organizations, including Human Rights Watch, Amnesty International and others.
“With this ban, the Russian political leadership continues to deny the Russian population their freedom of expression and freedom of thought,” the EU said in a statement.
Germany’s foreign ministry, in strongly worded comments, said Russia was “again showing the world its true colors: with targeted bans and censorship, all voices that advocate transparency and truth, justice, human rights and democracy are consistently silenced.”
Russia Cut to Selective Default by S&P (1:00 p.m.)
S&P Global Ratings cut Russia’s unsolicited foreign currency issuer credit ratings to selective default as it became the last major agency to pull sovereign ratings on the country.
It’s the latest sign that Russia’s first external default in a century now looks all but inevitable in the fallout from its invasion of Ukraine.
Greece Says Not Helpful to Ban Russian Gas Imports Now (12:45 p.m.)
“It’s not helpful at present to talk about a complete ban on the import of Russian gas,” Greece’s Prime Minister Kyriakos Mitsotakis said Saturday speaking at Delphi Economic Forum.
“We can’t replace Russian gas from one day to next. Let us look at the functioning of market and come up with realistic solutions.”
Mitsotakis suggested that Europe repurpose 230 billion euros ($250 million) in Recovery and Resilience Facility loans to confront high energy prices and other issues. The RRF was set up to help Europe bounce back from the coronavirus pandemic.
Ukraine Hopes to Get EU Candidacy Status in June (12:46 p.m.)
Ukraine is ready to move fast on a list of measures it needs to prepare for European Union membership and hopes to receive candidate status as early as in June, a government official said on Twitter.
Olga Stefanishyna, a deputy prime minister, commented after Friday’s visit to Kyiv of top EU officials.
Road Transport of Commercial Cargo From Russia Ends (12:09 p.m.)
An EU sanction prohibiting the road transport of commercial cargo came into force at midnight.
In Finland, the Customs office said Saturday it had turned away 35 vehicles attempting to enter the EU with Russian or Belarusian license plates at three border crossings, according to a statement.
Russian or Belarusian vehicles still within the EU have seven days to exit the bloc.
Kyiv Urges More Heavy Weapons for Upcoming Battles (10:09 a.m.)
Ukraine continues to stress its need for heavy weapons, including combat planes, to support ground forces ahead of major battles expected in the Donetsk and Luhansk regions once Russian troops regroup.
“We are getting more and more supplies, but I must say that these supplies are not enough,” Defense Intelligence Chief Kyrylo Budanov told CNN. “Our priority is heavy artillery and missile systems” as well as anti-defense and aviation systems.
When asked to elaborate, Budanov mentioned “combat planes” for potential use against Russian ground forces. Ukraine’s military staff is preparing for heavy fighting in the Donbas region.
EU Mission Reopens in Kyiv (9:34 a.m.)
The European Union reopened its diplomatic mission in Kyiv, lead by Matti Maasikas, after the delegation decamped to Rzeszow, Poland, shortly after Russian forces invaded Ukraine in late February. Moscow’s troops have now retreated from the Kyiv region.
“We have witnessed first-hand the ability of the Ukrainian administration to ensure effective and full functioning of state and government structures, despite very difficult circumstances,” EU foreign policy chief Josep Borrell said in a statement as he visited Kyiv Friday with European Commission President Ursula von der Leyen.
Ukraine’s capital city is cautiously coming back to life after the departure of Russian soldiers. The subway is no longer being used as a bomb shelter, and city authorities are opening up stations that were closed after Russia’s invasion.
Fortum’s Time in Russia Running Out, Finnish Leader Says (9:27 a.m.)
Finnish utility Fortum Oyj’s days in Russia are numbered, Prime Minister Sanna Marin suggested on Saturday. Asked why Fortum continues to operate in Russia after its invasion of Ukraine, Marin told YLE TV1 that “Finnish companies should leave Russia very soon.”
The company, majority owned by the state, runs seven power plants in Russia, and its German subsidiary Uniper SE has another five units, with a book value of about 5.5 billion euros ($6 billion).
Russian Land Corridor Hopes Still Thwarted, U.K. Says (7:10 a.m.)
Russian ambitions to establish a land corridor between Crimea and the Donbas region continue to be thwarted by Ukrainian resistance, the U.K. defense ministry said.
Operations remain focused on the Donbas region, Mariupol and Mykolaiv, abetted by cruise missile launches into Ukraine by Russian naval forces. That includes strikes toward the Odessa region launched from the Crimean peninsula, Ukraine’s military said.
Russia continues “storming actions,” focusing on taking control of towns such as Nyzhnye, Popasna, Rubizhne and Novobakhmutivka, and installing complete control over Mariupol, which has been under siege for a month, Ukraine said.
Nations Eye Modern Arms for Ukraine (6:00 a.m.)
Some supporters of Ukraine are ready to start helping it shift from Soviet-era weapons to more modern NATO-style equipment in the conflict with Russia, given the prospect the war drags on for months or even years.
Countries have largely held back on supplying state-of-the-art weaponry to avoid having to train Ukrainian forces to use it. But NATO’s eastern states risk running out of Soviet-produced equipment at some point. Some allies may start training Ukrainian troops outside the country to be able to maintain and use more sophisticated weapons.
Russia Foreign Currency Rating Cut to SD by S&P (3:03 a.m.)
S&P cut Russia’s unsolicited long- and short-term foreign currency issuer credit ratings to Selective Default from CC/C.
“The foreign currency downgrade follows our understanding that the Russian government made coupon and principal payments on its U.S. dollar-denominated 2022 and 2042 Eurobonds in rubles when those payments were due on April 4, 2022,” S&P said.
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