Ukraine Latest: Russia Pulls Out of Grain Safe-Transit Deal

Russia will suspend its participation in the safe-transit deal for Ukrainian grain exports from three Black Sea ports, Interfax reported, citing a ministry of defense statement slamming a “terrorist attack” on the Russian fleet in Crimea overnight.

Air raid sirens went off across Ukraine.

(Bloomberg) —

Russia will suspend its participation in the safe-transit deal for Ukrainian grain exports from three Black Sea ports, Interfax reported, citing a ministry of defense statement slamming a “terrorist attack” on the Russian fleet in Crimea overnight.

Air raid sirens went off across Ukraine. 

Russia’s Defense Ministry said a navy minesweeper received minor damage from a “massive” drone strike on its Black Sea fleet in Crimea, and accused the UK of helping with the attack, without offering evidence.

The UK denied any involvement. 

Russia’s central bank cited the inflationary impact of the Kremlin’s recent call-up of reservists to fight against Ukraine in pausing its run of six consecutive interest rate cuts.

Defense Minister Sergei Shoigu told Putin that Russia’s call-up of 300,000 reservists is complete. 

(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)

Key Developments

  • ‘Terrifying’ Putin Driven by ‘Evil Forces,’ ECB’s Lagarde Says
  • Russian Air Travel is Back, But Aircraft Lack Service, Parts
  • UK Bans Russian LNG Even Though Imports Have Already Stopped
  • Russia Pauses Rate Cuts as War Call-Up Stirs Economic Angst
  • UK Bans Russian LNG Even Though Imports Have Already Stopped

On the Ground

An industrial building in Zaporizhzhia was struck by Russia on Saturday, the region’s governor said.

No casualties were reported. Ukrainian troops repelled Russian attacks in the Donetsk region around Vodyane, Kamianka and Nevelske over the past day, according to the General Staff of the Armed Forces.

Russia also continued to attempt offensive actions in the directions of Bakhmut and Avdiivka. Two Russian Su-25 attack aircraft, one Mi-8 helicopter and a drone were shot down by air defense units. Russian occupation forces continued an evacuation from the southern Kherson region, and are removing equipment and medicines from local hospitals, according to the General Staff report.

(All times CET)

Russia ‘Suspends Participation’ in Grain Deal After Drone Attack (5 p.m.)

Russia’s defense ministry said Moscow “has suspended its participation” in safe-transit agreements for grain exports from three Ukrainian Black Sea ports after an overnight strike on Russia ships off Sevastopol, Crimea. 

The ministry, in a post on Telegram, called the strike a “terrorist attack” by Ukraine and also cited the participation of the UK — which the UK has denied.

Russia earlier admitted to minor damage to one ship, but reports have circulated of a more extensive hit. 

More than 9 million tons of Ukrainian grains and other foodstuffs have been exported under the deal since August.

 

UK Denies Moscow’s Accusation It Helped With Drone Attack (3:30 p.m.)

The UK defense ministry said Russia’s suggestion that its specialist forces helped Ukraine stage a drone attack on Crimea — and separately, that it was involved in September’s Nord Stream pipeline undersea explosions — was “peddling false claims on an epic scale.” 

Ukraine hasn’t commented on what Moscow called a “massive” attack by nine drones on its Black Sea fleet.

Unconfirmed reports on social media suggested damage was wider than the “minor” impact on a single mine-sweeper announced by Russia. 

New Prisoner Exchange Taking Place, Officials Say (1:50 p.m.)

Russia and Ukraine exchanged about 50 prisoners each on Saturday, Denis Pushilin, the Kremlin-backed head of the self-proclaimed Donetsk People’s Republic, said on Telegram, without giving further details. 

It was the second exchange in four days after Ukraine reported Wednesday that 10 of its servicemen were released.

Last week, 108 women returned to Ukraine in a prisoner swap.

Presidential aide Andriy Yermak said 52 Ukrainian prisoners, including officers, medics, sergeants and soldiers, were freed. The swap included two civilians, he said.

Some of the prisoners were captured from Azovstal steel plant in Mariupol. 

Russian Ship Damaged in Crimea Drone Attack, Ministry Says, Blaming UK (1 p.m.)

Russia’s Defense Ministry said a Navy minesweeper, the Ivan Golubets, received “minor” damage during an attack involving nine airborne drones and seven unmanned marine vessels against its Black Sea fleet in Sevastopol, Crimea. 

The ministry said ships targeted were involved in ensuring security for the grain corridor allowing safe transit of agricultural goods from Ukrainian ports.

It also accused “British specialists” of helping Ukraine’s military carry out the attack, without offering evidence. 

The Moscow-appointed governor in Sevastopol, Mikhail Razvozhayev, said the drone assault on the city, home to a major Russian naval base, was the largest since the Kremlin’s invasion of Ukraine began in February.

Nobody was hurt, the news service said.

Kyiv Mayor Makes Urgent Plea for Winter Aid (9:30 a.m.)

“Send blankets and generators or we’ll freeze to death,” Vitali Klitschko, mayor of Kyiv and a former world heavyweight boxing champion, told the UK’s Telegraph. 

The capital, like other parts of the country, is facing regular blackouts after widespread Russian strikes on the energy grid this month seen as a bid to break Ukrainian resolve heading into winter.

About 40% of the nation’s energy infrastructure has been damaged by missile and drone attacks. 

“We are doing everything we can do to save the lives of our people and to protect them,” Klitschko said in an interview on Friday.

“But this winter will definitely be a huge challenge for us.”  

 

 

Ukraine Commander Speaks With Chairman of US Joint Chiefs (9:13 a.m.)

Valeriy Zaluzhnyi, commander-in-chief of Ukraine’s armed forces, spoke by phone with General Mark Milley, chairman of the US Joint Chiefs of Staff, he said on Telegram. 

Kyiv’s forces “are concentrating their efforts on liberating of Ukrainian territory and preventing the capture of new areas,” Zaluzhnyi said.

“Thanks to the courage and professionalism of Ukrainian soldiers and officers, our positions remain unchanged.” 

Germany Threatens to End Swiss Arms Purchases in Dispute Over Ammo (8:10 a.m.)

Germany is pressing on with a request for approval from Switzerland to allow a blocked supply of ammunition to Ukraine.

The bullets were manufactured in Switzerland decades ago, and require a permit for re-export.

Switzerland’s Federal Council refused the request in June, citing the nation’s law of neutrality.

Now German members of the Bundestag are openly threatening not to buy any more armaments in Switzerland if it doesn’t allow the deliveries.

Ukraine and Germany justify the renewed call for help with the fact that the ammunition is primarily used to secure grain exports from the port city of Odesa, turning it into a humanitarian action.

Switzerland has yet to respond to this new argument.

Potemkin Remains Theft From Kherson ‘Symbolic,’ UK Says (8 a.m.)

Russia’s removal of the remains of Prince Grigory Potemkin from a tomb in Kherson’s cathedral is “symbolic,” the UK defense ministry said, and along with the civilian exodus from the region “likely preempts Russian intent to expedite withdrawal from the area.” 

“In the Russian national identity, Potemkin is heavily associated with the Russian conquest of Ukrainian lands in the 18th century, and highlights the weight Putin almost certainly places on perceived historical justification for the invasion,” the ministry said in a Twitter update. 

Potemkin’s remains were held in a crypt in the cathedral, including a small bag containing his “skull and bones, carefully numbered,” the New York Times reported. 

Lagarde Says Putin’s War Has ‘Reunited’ Ukrainians (5 a.m.)

Putin’s assault on on Ukraine is his attempt to “cause chaos and to destroy as much of Europe as he can,” European Central Bank chief Christine Lagarde said Friday on Irish national broadcaster RTE’s Late Late Show.

“Anyone who is behaving in that way must be driven by evil forces.”

Lagarde called Putin a “terrifying person” in referring to her past meetings with the Russian leader, adding “he was not as sick as he is today.” Even so, Putin’s actions have “reunited” the Ukrainian people, she said.

 “He has rejuvenated NATO and he has certainly brought the Europeans together.”

After expressing her view, Lagarde stressed that she’s “just a central banker,” so “shouldn’t be saying all these things.” 

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