(Bloomberg) — The European Union is pushing to overcome Hungary’s resistance to a ban on Russian oil imports, with Economy Commissioner Paolo Gentiloni hopeful of a deal in a week.
“We are working on this,” he said in an interview with Bloomberg TV in Davos. Meanwhile, Ukraine Foreign Minister Dmytro Kuleba, who is speaking at several events at the World Economic Forum, said Kyiv will not trade territory for peace and the goal of the international community should be a complete victory over Russia.
The war in Ukraine has overshadowed the first in-person Davos gathering in two years. Surging inflation, food shortages, climate change and migration risks have been high on the agenda.
Bloomberg panels on growth and trade featuring the International Monetary Fund’s Gita Gopinath, Siemens AG Chairman Jim Hagemann Snabe and EU Trade Commissioner Valdis Dombrovskis are among the highlights on Wednesday.
Join us here throughout the day for rolling coverage, and tune into Bloomberg TV for interviews with Irish Prime Minister Micheal Martin, Carlyle Group’s Macky Tall and many others.
Key Developments
- Klitschko Boxing Heroes Warn That Returning to Kyiv Is Dangerous
- Pfizer Slashes Drug Prices for Poorest Nations, Expanding Access
- Soros Warns ‘Civilization May Not Survive’ Vladimir Putin’s War
All times CET:
War Clouds Ownership of Europe’s Biggest Nuclear Plant (9:10 a.m.)
The head of the world’s nuclear watchdog said that Russian demands that Ukraine begin paying for electricity generated at an occupied atomic plant is adding new layers of complexity to the conflict. Russia wrested control over the Zaporizhzhya Nuclear Power Plant — Europe’s biggest such facility — in the early days of the war and has maintained control ever since.
“The plant is in Russian hands but is operated by Ukrainian people and is feeding the Ukrainian grid,” International Atomic Energy Agency Director General Rafael Mariano Grossi told Bloomberg TV. “That brings a lot of problems that are not technical but political in nature.”
While the Kremlin has yet to officially confirm its intentions, comments last week by Russian Deputy Prime Minister Marat Khusnullin suggested to some that the Kremlin may be preparing to hold onto the plant for the long term. IAEA monitors continue trying to gain access to Zaporizhzhya, in order to account for the 30,000 kilograms of plutonium and 40,000 kilograms of enriched uranium last reported at the site.
EU Oil Embargo Seen in ‘Coming Week’ (9 a.m.)
“We are all discussing that Hungary is not supporting the oil embargo, and it’s true but we are working on this,” Gentiloni told Bloomberg TV. Asked if the EU could move to halt Russian oil imports without Hungary, he added: “I don’t like to discuss Plan B when we are working on Plan A.”
Pfizer Slashes Drug Prices for Poorest Nations (9 a.m.)
Pfizer Inc. plans to sell its entire portfolio of brand-name drugs at cost in as many as 45 lower-income countries, one of the most comprehensive and ambitious drug-access programs ever announced by a large pharmaceutical manufacturer.
The initiative will start in five African countries with 23 drugs for cancer, rare illnesses, inflammatory conditions and infectious diseases. It will eventually include all of the New York-based company’s future therapies or vaccines. The drugs will be sold at the cost of manufacturing, Pfizer said, typically a fraction of their price in U.S. or European markets. Chief Executive Albert Bourla plans to speak about the drugmaker’s effort at Davos.
Ukraine Seeks Return of All Territories (8:55 a.m.)
“Ukraine will fight until it returns all of its territories,” President Volodymyr Zelenskiy said at a breakfast organized by the Victor Pinchuk Foundation. The war may turn into a diplomatic dispute after Russia withdraws its forces where they were before the full-scale invasion on Feb. 24. Ukraine won’t make concessions, he said, adding that talks with Russia have stalled.
Russian President Vladimir Putin doesn’t “realize to the very end what is happening, he lives in his informational world,” Zelenskiy said via video link.
Ukraine Says West Shouldn’t Push Partial Victory (8:50 a.m.)
Ukraine’s Kuleba said the transatlantic alliance was “reinvigorated” only because of his nation’s efforts to withstand the Russian invasion and should in turn fully back Ukraine’s desire to achieve a complete victory. The government in Kyiv has previously expressed concern that some allies would prefer it agree to cede some territory in order to bring the war to a quick end.
“We need the West primarily to finally accept the idea that the ultimate goal of this war should be the victory of Ukraine,” Kuleba said at the Victor Pinchuk Foundation event.
“Even some very good friends of Ukraine who help us really a lot they are are still hesitant,” he said. “What is the end goal of their support for Ukraine? Is it not to allow Russia to win? Is it not to allow Ukraine to fail? No, the goal should be very simple and clear — Ukraine must win. Full stop. Period,” Kuleba said.
Inflation Is Top Concern for Ontario Pension Board (8:45 a.m.)
Inflation is the biggest concern for the Ontario Teachers’ Pension Plan Board, according to Chief Executive Officer Jo Taylor.
The board, which manages the retirement savings of about 330,000 teachers, has increased its holdings of commodities and inflation-sensitive assets to deal with that challenge, Taylor said in an interview with Bloomberg Television. It has also reduced its holdings of publicly traded equities, he said.
Ukraine Doesn’t See NATO Securing Grain Passage (8:15 a.m.)
Ukraine’s Kuleba said he saw no desire from NATO now to help secure safe passage of grains through the Black Sea, an effort seen as crucial to counter concerns about food shortages and rising prices.
“If NATO did not close the Ukrainian skies in the most tragic moments of the war, why should they dare to close the Ukrainian sea to allow the free passage of vessels with Ukrainian agricultural products,” he said. “I would wholeheartedly welcome the decision, but I just don’t see the stamina and the bravery to take all the risks associated with this operation.”
The interruption of the agricultural cycle of Ukraine risks a multi-year global food crisis, Kuleba told a breakfast organized by the Victor Pinchuk Foundation, “but in the end, the problem is that you cannot trust Russia even if they sign papers guaranteeing safe passage.”
Randstad Cites Upward Pressure in Wages (8:10 a.m.)
There’s upward pressure in wages in all markets and more so in the US than in Europe, said Randstad NA Chief Executive Officer Sander van’t Noordende in an interview with Bloomberg TV. Van’t Noordende said wage inflation is reaching 5% in US and is around 3% in Europe.
Now that “everybody knows that virtual working works” more people are looking for flexibility and to be able to work from home some of the time, he said. “Spending time together is still important, but it depends on what team you’re part of and what the moment is to be together.”
The head of the employment services provider said 70% of Millennials are looking for a new job as opposed to 40% of older generations.
Inflation May Be Here for Years, Vestas CEO Says (8 a.m.)
Inflationary pressures aren’t going to ease any time soon, Vestas Wind Systems A/S CEO Henrik Andersen said in an interview with Bloomberg TV.
“I don’t see it easing,” according to Andersen, who runs the world’s largest manufacturer of wind turbines. “We have to now get used to that this could continue not only for quarters to come but also for years to come.” Higher costs for materials and transport have erased profits for the wind-turbine industry just as it’s needed to ramp up to achieve global climate goals. Andersen said his company will return to making money once supply chain issues have been normalized.
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