(Bloomberg) — President Vladimir Putin said he remains confident the goals for what he called Russia’s “special military operation” will be met, as the U.S. predicted “a more protracted and a very bloody phase” of the conflict.
Ukraine expects Russia to widen its offensive this week in the eastern Donbas region, which has been partially occupied by self-proclaimed separatist republics. Putin described Russia’s aims as protecting the people there.
Ukraine President Volodymyr Zelenskiy reiterated a call for the European Union’s next package of sanctions on Russia to include oil as well as all banks, and said EU member states should declare when they plan to stop importing Russian energy.
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Key Developments
- Germany May Snub India as G-7 Guest Over Russia Stance
- Global Oil Market Swings From Chaos to Calm as War Shock Ebbs
- Biden, Modi Talk About Managing Ukraine Fallout Amid Tensions
- Russia’s Export Windfall Catapults Key Trade Barometer to Record
- Europe Moves to Arm Ukraine as Sanctions Fail to Sway Putin
All times CET:
Number of People Returning to Ukraine Surges (12:30 p.m.)
The number of people returning to Ukraine from abroad has jumped to about 30,000 per day, according to Andriy Demchenko, a spokesman for the State Border Guard Service.
While in the first days of the war mostly men were coming back to Ukraine, now there are more women, elderly people and children returning, Demchenko said in a video briefing. The United Nations Refugee Agency estimates that more than 4.3 million refugees fled the country after the outbreak of war, with some 7.1 million displaced internally.
Putin Says Conflict With West Inevitable (11:30 a.m.)
Speaking to workers at the Vostochny Cosmodrome in Russia’s Far East, Putin said conflict with the West was inevitable and that Russia is too large to isolate from the rest of the world.
Western sanctions imposed over the invasion of Ukraine won’t keep Moscow from developing space-exploration efforts, he added, vowing to resume the country’s lunar program. He’s also due to hold talks with Belarus President Alexander Lukashenko.
German Investor Mood Deteriorates (11 a.m.)
Confidence in Germany’s economic recovery slid for a second month as investors worry that price spikes driven by the war in Ukraine will dampen output.
The ZEW institute’s gauge of expectations dropped to -41 in April from -39.3 the previous month, hitting the lowest since the Covid-19 pandemic took hold in early 2020. An index of current conditions also worsened. “The experts are pessimistic about the current economic situation and assume that it will continue to deteriorate,” ZEW President Achim Wambach said Tuesday in a statement.
Zelenskiy Repeats Call for Oil Sanctions (10:45 a.m.)
“Some very powerful decisions must be taken and they must be taken now with the sixth package of sanctions,” Zelenskiy said in an address to the Lithuanian parliament, referring to EU measures against Russia.
He warned that if Russia’s assault on Ukraine is not repelled, Europe may face security threats against nations including Poland, Georgia, Moldova and the Baltic states.
Slovakia Mulls Giving Fighter Jets to Ukraine (10:35 a.m.)
The Slovak government signaled it’s considering donating its fleet of Soviet-era MiG fighter jets to Ukraine, the Sme newspaper reported, citing an interview with Prime Minister Eduard Heger.
“If this equipment is to be useful somewhere, then it’s in Ukraine,” Sme quoted Heger as saying. European nations are attempting to ramp up weapons shipments to Ukraine amid concerns sanctions on Russia are insufficient to force Moscow to end the war.
Ukraine Says it Thwarted Cyberattack (10:30 a.m.)
Ukraine said it prevented a cyberattack on its energy infrastructure this month that was apparently launched by Sandworm, a group of hackers linked to Russia’s military intelligence agency.
Microsoft and ESET helped repel the attack, in which the hackers sought to disable power facilities using Industroyer2 and CaddyWiper malware, the nation’s telecommunications agency said.
India Plans to Boost Exports to Russia (10:10 a.m.)
India is planning to boost exports to Russia by an additional $2 billion as the two nations work out a payment system in local currencies to continue bilateral trade, according to people with knowledge of the matter.
Prime Minister Narendra Modi’s administration is in talks with Moscow to liberalize market access for several Indian-made products, the people said, asking not to be identified as the talks are private. This comes as the two governments work toward a proposal to settle trade in rupees and rubles and look for ways to balance trade given that India is a net importer of Russian goods.
Inflation in Ukraine Surged Last Month (9:30 a.m.)
Ukraine saw a rapid increase in prices for food staples, drugs and fuel last month, as Russia’s invasion disrupted supply chains and complicated access to imports, according to the country’s central bank.
Fuel costs rose by 30% from the previous year due to soaring prices in global markets and Russia’s targeting of Ukraine’s oil-storage facilities, even though the government scrapped sales and excise taxes on fuel to help ease the burden on consumers. Annual inflation accelerated to 13.7% from 10.7% in February.
Asos Warns of Earnings Impact (8:30 a.m.)
British online fashion retailer Asos said its full-year earnings goal is at risk due to the fallout from Russia’s war in Ukraine and accelerating inflation. U.S. consultant Accenture completed an exit from its Russian business following a transfer to several of its local leaders.
Finnish 5G Gear Maker Nokia to Exit Russia (8 a.m.)
Nokia will exit the Russian market after having suspended deliveries, stopped new business and initiated a move of its limited R&D activities out of Russia in the past weeks, the Espoo, Finland-based telecommunications networks maker said.
Russia accounted for less than 2% of net sales in 2021 for Nokia, whose rival Ericsson on Monday said it had suspended business with customers in Russia “indefinitely” and put about 600 staff on paid leave.
Oil Rebounds After Fall That Erased War Gains (7:31 a.m.)
Oil rebounded after a tumble that saw crude erase most of the gains sparked by Russia’s invasion of Ukraine. China’s virus outbreaks and mobility curbs are imperiling demand as it locks down Shanghai and other areas in pursuit of a Covid Zero strategy that has made it a global outlier in handling the pandemic.
The next major test for markets looms later Tuesday, when the U.S. is expected to unveil an inflation print for March of more than 8%. The Ukraine war is disrupting flows of essential commodities, and China’s lockdowns are straining supply chains.
Russia Significant Military Threat, Say Finns (5:23 a.m.)
Some 84% of Finns believe Russia poses a significant military threat, according to a survey by Finnish Business and Policy Forum EVA, with the government set to kick off a process that may culminate in an application to join NATO.
In 2005, fewer than one in three in the Nordic country with a 1,300-kilometer (800-mile) border with Russia considered Moscow a major threat. The change helps explain why Finns now back NATO membership, with the government seen leaning toward an application within weeks.
War Damage Amounts to $270 Billion, Minister Says (3:10 a.m.)
Ukraine’s infrastructure war damage is an estimated $270 billion, Finance Minister Serhiy Marchenko told the Financial Times. Some 7,000 residential buildings have been damaged or ruined, about 30% of Ukrainian companies have ceased operations and electricity consumption has dropped 35%, the minister said.
Despite that, Ukraine plans to continue servicing its debt and expects to avoid borrowing restructuring, he said. Last month, the country paid $292 million on a dollar-denominated Eurobond maturing in September.
“A lot of politicians advise us to talk about restructuring but that is not our policy,” he said, adding Ukraine expects to access financing and continue to issue external debt.
Japan Sanctions Putin’s Daughters (2:42 a.m.)
Japan’s government announced asset freezes on 398 individuals, including the two adult daughters of Putin as part of its latest round of sanctions over the war in Ukraine. Russian Foreign Minister Sergei Lavrov’s wife and daughter were also added to list.
Asset freezes were also expanded to 28 entities including the country’s biggest bank Sberbank.
Biden, Modi Discuss Managing Ukraine Fallout (2:37 a.m.)
U.S. President Joe Biden and his Indian counterpart held a candid discussion Monday about how to counter the fallout from Russia’s invasion of Ukraine, a senior U.S. administration official said.
“The president has made clear that he does not believe it’s in India’s interest to accelerate or increase imports of Russian energy and other commodities,” White House Press Secretary Jen Psaki told reporters.
Modi, via a translator, said he’d been appealing for peace and called the killings in the Ukrainian city of Bucha “very worrying.”
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