(Bloomberg) — The central bank in Moscow slashed interest rates and forecast sanctions would trigger a bigger economic drop than expected before the war, while Germany signaled it wouldn’t oppose a European Union embargo on Russian oil.
Russian missiles struck Kyiv on Thursday evening, killing a journalist in her home just as UN chief Antonio Guterres was visiting the Ukraine’s capital. Odesa was also hit. Still, the battle for Donbas remains Russia’s strategic focus, and territorial gains have been slow in the face of stiff Ukrainian resistance.
Poland sent a “significant” number of T-72 battle tanks to Ukraine, and President Joe Biden is seeking an additional $33 billion in aid for Kyiv. Indonesia’s president said the leaders of Ukraine and Russia both plan to attend the Group of 20 summit in November, although Moscow refused to say whether President Vladimir Putin would attend.
(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)
Key Developments
- Putin’s Gas-for-Rubles Gambit Hits EU Fault Lines as Stakes Rise
- Alarmed by Russia’s Aggression, Europe Rethinks Its China Ties
- Putin’s War Targets Democracy, Germany’s Scholz Writes in Welt
- Habeck Says Germany Won’t Block a Russian Oil Embargo
- A Visual Guide to the Russian Invasion of Ukraine
- Russia Surprises With Bigger Rate Cut and Warns on Downturn
- War Is Making One of the World’s Richest Countries Even Richer
Czechs Refuse to Pay in Rubles, Talk With Poland on Pipeline (2:51 p.m.)
The Czech Republic will not pay for Russian gas in rubles, Prime Minister Petr Fiala said on Friday, calling accepting Russia’s terms is “dangerous” and breaching EU sanctions. The Czechs, who buy more than 90% their gas from Russia, will start talks with Poland on a gas pipeline project designed to diversify supplies and may purchase capacity at Polish liquefied natural gas terminals Fiala said.
Romania Says Pro-Russian Hackers Attack Websites (2:29 p.m.)
Romania said a pro-Russian hacking group attacked websites operated by its Defense Ministry, state railway company, border police and a financial institution.
The European Union and NATO member’s intelligence agency said the group, known as Killnet, took credit for so-called distributed denial-of-service attacks, shutting down the sites for several hours. Romanian parliament Speaker Marcel Ciolacu said this week that Bucharest is considering options for potential military aid to neighboring Ukraine.
Russia Surprises With Bigger Rate Cut and Warns on Downturn (1:28 p.m.)
Russia’s central bank cut interest rates more than forecast and indicated that borrowing costs may fall even lower, as priorities shift to supporting an economy derailed by international sanctions over Putin’s invasion of Ukraine.
Three weeks after reversing part of the emergency hike delivered after the attack, the Bank of Russia lowered its benchmark to 14% from 17%. Most economists surveyed by Bloomberg predicted a decrease to 15%. Policy makers warned the economy may face two straight years of contraction.
Policy makers issued new projections on Friday that showed the economy may contract 8% to 10% this year and end-year inflation could spike to as high as 23%.
Kuleba Says He Discussed Further Arms Supplies With U.K. (1:37 p.m.)
Ukrainian Foreign Minister Dmytro Kuleba said he discussed further arms supply to Ukraine with British Foreign Secretary Liz Truss. They also “agreed on the need to impose a real embargo on Russian oil imports to Europe as soon as possible” and the issue of security guarantees.
Radio Liberty Journalist Killed by Russian Missile in Kyiv (12:59 p.m.)
Radio Liberty producer Vera Gyrych was killed by a Russian missile that hit the building where she lived in Kyiv, the U.S.-backed news service reported. The attack coincided with Thursday’s visit by UN Secretary-General Antonio Guterres to Ukrainian President Volodymyr Zelenskiy.
Gyrych worked for Radio Svoboda, the Russian-language service of Radio Free Europe/Radio Liberty. More than a dozen journalists have been killed during the war since Putin’s forces invaded on Feb. 24.
U.S. Citizen Killed Fighting in Ukraine, ABC Reports (12:57 p.m.)
Former U.S. Marine Willy Joseph Cancel was killed in Ukraine while fighting Russian forces alongside Ukrainian troops, ABC News reported. Cancel, a 22-year-old U.S. citizen, “was eager to volunteer” to fight against the invasion, ABC said, citing his wife.
Kremlin Declines to Say if Putin Will Attend G-20 (12:52 p.m.)
Russia is preparing for the Group of 20 summit in Indonesia but it’s too early to discuss details of its participation, Kremlin spokesman Dmitry Peskov told reporters on a conference call, in response to questions on the possibility of Putin meeting Ukrainian President Volodymyr Zelenskiy there.
Indonesian President Joko Widodo said earlier he’d invited both to the November summit in Bali and “expressed my hope that the war can end soon.” Putin assured him Russia “would do everything necessary and everything possible” to contribute to the success of the event, Peskov said, with no further details.
Norway Joins EU Sanctions With Russian Transport Ban (12:50 p.m.)
Norway joined the European’s latest sanctions package on Friday by introducing a ban on Russian road transport and on docking by the neighboring country’s vessels in response to the war in Ukraine, the government said.
Sweden Sees Two Russian NATO Narratives (11:49 am.)
Russia has offered conflicting narratives around the potential NATO membership of Sweden and Finland, said Swedish Foreign Minister Ann Linde.
Russia has warned the Nordic countries of “consequences” if they join the defense alliance, yet Moscow has at the same time downplayed the importance of whether NATO has 30 or 32 members, Linde said at a press conference in Helsinki with her Finnish counterpart Pekka Haavisto.
Swedish and Finnish policy makers have agreed to seek entry into the NATO defense bloc simultaneously in mid-May, according to reports this week.
Putin, Zelenskiy Plan to Attend G-20 Summit, Indonesia Says (10:54 a.m.)
Indonesia’s president said Volodymyr Zelenskiy and Vladimir Putin have both accepted invitations to attend the Group of 20 summit in Bali in November. It’s unclear if either or both will attend in person.
Joko Widodo spoke with Putin on Friday, saying he “stands ready” to help with peace negotiations. He extended the invitation to Zelenskiy during a phone call earlier this week.
Russia is a G-20 member; Ukraine is not. The host nation typically invites leaders from a handful of non-member states to attend as observers.
Dutch Ambassador Returns to Kyiv (10:45 a.m.)
Ambassador Jennes de Mol returned to Kyiv on Friday with a small team of embassy staff, the Dutch government said in a statement.
Diplomats had returned to Lviv, in western Ukraine, on April 16 and the current security situation allowed for a return to the capital, the government said. Extra measures are being taken to ensure the safety of employees. The embassy remains closed for consular assistance.
Uniper May Pay for Gas in Euros (10:30 a.m.)
The German utility Uniper SE may pay for natural gas in euros to an account in Russia, a company spokesman said Friday. The company said it considers a payment conversion from euros to rubles compliant with sanctions law and Russia’s recent payment decree to be possible.
Moldova Will Increase Defense Spending (10:30 a.m.)
President Maia Sandu said Moldova plans to increase defense spending and improve the condition of the military in Europe’s poorest nation. Moldova has allocated about 46 million euros ($48.6 million) for military spending in this year’s budget.
“What’s happening in Ukraine proves to us that war is now something possible, and we need to protect ourselves,” Sandu told the lisa.md news website. “We cannot have a large army because we’re a small country, but we need to have an army that has the capacity to ensure the security of our citizens.”
Moscow-Backed Transnistria Says Military Unit Attacked
Russia Has Fired 1,900 Cruise Missiles, Zelenskiy Aide Says (10:20 a.m.)
Russia has fired a total of 1,900 cruise missiles at Ukraine since the war’s start, Mykhailo Podolyak, an adviser to Ukrainian President Volodymyr Zelenskiy’s chief of staff, said on Telegram.
German Voters Backs Heavy Weapons for Ukraine (10 a.m.)
A majority of Germans now supports the government’s move to supply Ukraine with heavy weapons to help repel Russia’s invasion, according to a poll for public broadcaster ZDF.
Among 1,170 voters surveyed randomly by telephone April 26-28, 56% said they’re in favor of sending weapons like tanks and 39% said they’re against, the poll showed. In last month’s survey, 63% were against and 31% in favor. After initially resisting sending heavy weapons, Chancellor Olaf Scholz’s government has approved the supply of 50 anti-aircraft tanks to Ukraine by the vehicle’s German manufacturer and said similar deliveries will follow.
Russia Offers Dual-Payment Plan for Trade With India (8:42 a.m.)
Russia has offered India a dual-payment mechanism to allow more trade in local currencies, according to people with knowledge of the matter.
The latest offer from Moscow involves payment for Indian oil imports from Russia in dollar or euro while the rest of the trade will be settled using a rupee-ruble-denominated mechanism, the people said.
War is Making Qatar Even Richer (9:00 a.m.)
Hosting this year’s football World Cup was a coup for Qatar, but Europe’s hunt to replace Russian natural gas is about to give the Gulf state real influence — the standout winner after Moscow’s invasion forced Europe to start weaning itself off Russian energy imports.
Several of the European Union’s most senior officials have flown to Doha in recent weeks, all with a clear message: we need your gas as fast as possible.
Poland Has Sent Ukraine T-72 Battle Tanks, Security Official Says (8:18 a.m.)
Poland has already supplied a “significant” number of T-72 tanks to Ukraine and will continue delivering military support to its eastern neighbor, Pawel Soloch, the head of Poland’s National Security Bureau, told Polsat News.
The state newswire IAR reported earlier that the NATO member has shipped to Ukraine more than 200 of the tanks, enough to form two brigades. On Saturday, Prime Minister Mateusz Morawiecki said Poland provided Kyiv with military aid worth about 7 billion zloty ($1.58 billion).
Major Deployment of U.K. Troops in ‘Show of Solidarity’ (8 a.m.)
About 8,000 British Army troops will conduct a series of planned exercises across Europe this summer, in what the U.K. Ministry of Defence called one of the largest deployments since the Cold War.
Defence Secretary Ben Wallace said the move would be a “show of solidarity and strength” at a time when the security of Europe “has never been more important.”
Some 72 Challenger 2 tanks, 12 AS90 tracked artillery guns, and 120 Warrior armored fighting vehicles will deploy to countries from Finland to North Macedonia.
Indonesia’s President Had a Call With Putin (7:30 a.m)
Indonesian President Joko Widodo said he exchanged views with Russian President Vladimir Putin on the situation in Ukraine as well G-20 cooperation. The call between the two leaders comes after Ukrainian President Volodymyr Zelenskiy said Indonesia as the G-20 chair had invited him to attend the summit this year.
The Kremlin earlier said that both leaders had discussed “various aspects of the G-20’s activities in view of Jakarta’s presidency in the group.”
Russia Tees Up Another Big Rate Cut (5:00 a.m.)
Russia’s central bank is set to push interest rates below zero when adjusted for inflation, as priorities shift to helping the economy adjust to unprecedented international pressure after the invasion of Ukraine.
Just weeks after reversing nearly a third of the emergency hike delivered after the attack, the Bank of Russia will lower the benchmark to 15% from 17%, according to most economists surveyed by Bloomberg.
Why Putin’s Demand for Rubles Has Europe Scrambling: QuickTake
Tycoon Abramov’s Megayacht Likely Racing to Turkey (4:50 a.m.)
The $100 million megayacht Titan tied to steel billionaire Alexander Abramov is racing near top speed to reach the Suez Canal, likely bound for the safe waters of Turkey favored by other sanctioned Russian moguls.
The Titan, a $100 million yacht that can accommodate 14 guests and 19 crew, is headed toward the Suez Canal after long stays in Dubai and the Maldives, two destinations that are considered safe havens from sanctions and the seizure of Russian assets.
Germany, Greece Set to Send More Gas to Poland, Bulgaria, FT Says (4:17 a.m.)
Data from from Hellenic Gas Transmission System Operator showed Germany and Greece are preparing to send more natural gas to Poland and Bulgaria after Russia reduced deliveries, the Financial Times reported.
Orders for gas volumes through the pipeline at Sidirokastro, a border-crossing point between Greece and Bulgaria, increased on Thursday, with higher flows to exit toward Bulgaria than those heading south to Greece, according to the report.
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