(Bloomberg) — Officials from Kyiv will meet Russian counterparts at the Belarus border, hours after President Vladimir Putin put Russia’s nuclear forces on higher alert and even as fighting continues inside Ukraine.
Ukrainian President Volodymyr Zelenskiy voiced skepticism that talks would yield results, but said he was willing for them to happen if it meant any chance at peace.
The European Union will close its airspace to Russian aircraft, and ban some Russian state-owned media companies.
Western nations agreed to exclude some Russian banks from the SWIFT messaging system, used for trillions of dollars in transactions between banks around the world, and to target the Russian Central Bank’s international reserves. Russians lined up at cash machines around the country to withdraw foreign currency on fears the ruble could collapse.
Key Developments
- Putin Races Against Clock as Fast Military Advance ‘Frustrated’
- Germany Backs New LNG Plants to Cut Russian Gas Dependence
- Traders Brace After Russia Sanctions Stepped Up, Ratings Cut
- Hackers Destroyed Data at Key Ukraine Agency Before Invasion
- Germany to Lift Defense Spending in Latest Historic Policy Shift
- Russians Rush for Dollars as Sanctions Threaten Ruble Collapse
All times CET:
EU Bans Sputnik and RT in Clampdown on Russian State Media (5:45 p.m.)
The EU is banning Russia’s state-owned media Sputnik and Russia Today as it pushes back against what European Commission President Ursula von der Leyen described as Putin’s propaganda operations. There were no immediate specifics on what that ban would entail in terms of operations in the EU or broadcasting. Von der Leyen said the EU is developing tools to help it enforce the ban.
Zelenskiy Says Skeptical About Talks, But Worth a Try (5:35 p.m.)
“I do not believe much in the result of this meeting — but let them try so that not a single Ukrainian citizen has doubts that I as president did not try to stop the war when there was a chance, albeit little,” the president said on Telegram.
Finance Minister Serhiy Marchenko separately announced a decision to issue war bonds, with an initial auction planned “soon.” The minister said the securities will be marketed to international investors, without specifying the volume.
U.S. Says Russia May Commit More Forces (5:20 p.m.)
Russia’s military has deployed about two-thirds of its forces arrayed around Ukraine to the conflict so far, a senior U.S. defense official told reporters.
The official said Russia’s advance has been slowed by Ukrainian resistance plus difficulties with fuel supplies. But Russia is likely to adapt and could overcome those challenges, in part by sending more troops in, the official said.
Russian forces are about 30 kilometers (19 miles) outside the center of Kyiv and have begun to deploy what looks like siege tactics around the city of Chernihiv, which suggests it’s willing to attack non-military infrastructure, the official said.
Turkey Inches Toward Decision on Russia Warship Transits (5:10 p.m.)
Foreign Minister Mevlut Cavusoglu said on Sunday that Turkey has decided the fighting in Ukraine amounts to an act of war, a key legal threshold for the country to decide whether warship transits through the Turkish straits can be regulated under the Montreux Convention.
The minister has said previously that Turkey was weighing if the fighting in Ukraine should be considered an act of war under the convention. In theory, it could let Turkey stop Russian warships from entering the Black Sea except for those returning from a rotation back to their original bases.
Berlin Pro-Ukraine Demonstration Draws 100,000 (5:02 p.m.)
About 100,000 people streamed through the Brandenburg Gate to the central Tiergarten park Sunday for a demonstration in support of Ukraine, according to police estimates. Authorities had expected as many as 20,000. Many demonstrators waved Ukrainian flags and banners calling on Putin to stop the war.
U.K. May Release Strategic Oil Reserves to Stabilize Prices (4:52 p.m.)
Business Secretary Kwasi Kwarteng is considering using oil from the U.K.’s strategic reserve in an effort to stabilize energy prices, according to a person familiar with the government’s thinking.
Kwarteng has spoken to counterparts in the U.S., Germany, France and Canada about a coordinated move, the person said. The U.K. has sufficient reserves to make an effective intervention, the person added. Kwarteng will hold a video conference with the European commissioner for energy, Kadri Simson, on Monday, the person said. The U.S. is considering tapping its own emergency supplies.
IMF Ready to Provide $1.4 Billion to Ukraine (4:41 p.m.)
The International Monetary Fund is ready to provide Ukraine with $1.4 billion under its so-called Rapid Financing Instrument, said central bank governor Kyrylo Shevchenko. The disbursement will have to be approved by the IMF board.
Ukraine asked IMF for more aide to support its economy amid Russian invasion. Its also in the process of review of its stand-by loan agreement with the Washington-based lender.
Pentagon Calls Putin’s Nuclear Posture an “Escalatory” Step (4:19 p.m.)
Putin’s move to put Russia’s strategic nuclear forces on higher alert is an “escalatory” step that increases the risk of a miscalculation, the Pentagon said.
The comment, during a briefing by a senior U.S. defense official, came after Putin on Sunday cited what he called “aggressive” statements from the leaders of NATO countries. The official declined to say whether the U.S. had changed its nuclear readiness posture in response to the Russian move.
Russian Energy Sanctions Are Possible, U.S. Says (4:10 p.m.)
The U.S. is keeping energy sanctions against Russia “on the table,” though any measures would have to avoid disrupting markets and pain for U.S. consumers, White House Press Secretary Jen Psaki said.
“We want to take every step to maximize the impact and the consequences on President Putin, while minimizing the impact on the American people and the global community,” Psaki said on ABC’s “This Week” on Sunday.
Senator Tom Cotton, an Arkansas Republican, called on President Joe Biden to sanction Russian oil and gas exports. “The financial sanctions announced last night are riddled with loopholes,” he said.
EU to Propose Granting Rights to Ukraine Refugees (4:06 p.m.)
In an emergency meeting Sunday, EU home affairs ministers will discuss extending temporary rights to Ukrainian refugees, with several countries pushing for the immediate adoption of the measure.
Several ministers arriving for talks in Brussels said they backed triggering for the first time the 2001 Temporary Protection Directive, which applies to displaced people from non-EU countries and grants them rights, including a residence permit valid for between one and three years and access to employment and to accommodation.
So far more than 300,000 people have fled into the EU from Ukraine and the European Commission has warned that the number could grow into the millions.
Russians Rush for Dollars After SWIFT Ban (3:09 p.m.)
Russians lined up at cash machines around the country to withdraw foreign currency as new sanctions to punish the Kremlin for its invasion of Ukraine sparked fear the ruble could collapse.
The rush came despite some lenders selling dollars at more than a third higher than the market’s close on Friday, and well past the psychologically important level of 100 rubles per dollar that many economists said would trigger an interest-rate hike by the Bank of Russia.
Russia last faced a major run on cash in 2014, when plunging oil prices in the wake of Western sanctions related to the annexation of Crimea triggered a crash in the exchange rate.
Bank of Russia Eases Limits on Open FX Positions (2:49 p.m.)
Russia’s central bank eased its restrictions on banks’ open foreign-currency positions until July 1, adding to its earlier measures to stabilize the financial system, according to a statement on its website.
The regulator will monitor positions but won’t punish lenders for exceeding the set limits as long as the foreign currency and precious metals positions aren’t used for “speculative purposes.”
Ukraine Agrees to Talks With Russia at Belarusian Border (2:46 p.m)
Ukraine has agreed to talks with Russia on the Belarusian-Ukrainian border, President Volodymyr Zelenskiy said in a Facebook post. A delegation has already left Kyiv for the undisclosed location.
“We have agreed that the Ukrainian delegation will meet with Russian without prior conditions on the Ukrainian-Belarusian border, in the area of the Pripyat River,” Zelenskiy said.
The confirmation came after Russia earlier sent a negotiation team to the southeastern Belarusian city of Gomel, though Zelenskiy said he’d refuse to hold talks in a country from which Russian troops were attacking Ukraine.
Putin Puts Nuclear Forces on Higher Alert on Tensions (2:12 p.m.)
Putin ordered Russia’s strategic nuclear forces put on higher alert, citing what he called “aggressive” statements from the leaders of NATO countries.
Putin made the comments Sunday at a meeting with his defense minister and military chief, in which he also called newly imposed Western sanctions illegitimate.
Russia conducted exercises involving its nuclear forces earlier this month as tensions built, including test launches of missiles. Confusion continued Sunday about whether Ukraine would agree to peace talks in Belarus, which has been a staging post for Russian attacks.
More Than 300,000 Have Fled Into EU, Border States Say (2:20 p.m.)
Well more than 300,000 people fleeing Russia’s invasion of Ukraine have crossed into the European Union since fighting began on Thursday, according to the four EU member states bordering Ukraine.
Poland has registered almost 200,000 people in total since Feb. 24, the nation’s border agency said. Hungary counted 66,000 in total, the Foreign Ministry said, while Slovak authorities put the number there at between 15,000 and 20,000. Romania gave a figure of 43,000 who entered the country, though limited the figure to Ukrainian citizens.
EU officials had forecast more than a million refugees in the event of war in Ukraine, while United Nations agencies last week now see as many as 4 million if the invasion continues.
Japan Joins U.S., EU in Imposing SWIFT Restrictions (1:18 p.m.)
Japan will join Western nations in excluding some Russian banks from the SWIFT messaging system, Prime Minister Fumio Kishida said Sunday. The country will also freeze assets held by some Russian government officials including Putin, Kishida said.
U.S., EU Cut Some Russian Banks From SWIFT, Target Central Bank
EU to Propose Bloc-Wide Airspace Ban on Russia (1:09 p.m.)
The EU is expected to propose barring Russian flights from the bloc’s airspace and from landing in the EU, according to an official familiar with the plans, who asked not to be identified because discussions are ongoing. European ministers meeting on Sunday will also discuss blocking Russian ships from EU ports.
More than a dozen European countries including Ireland, Belgium and Germany, have already closed their airspace to aircraft from Russia. The new EU sanctions would apply to all 27 of the bloc’s members.
U.K. Wants G-7 to Set Russian Energy Import Limits (12:59 p.m.)
The U.K. would support the Group of Seven setting limits on the amount of Russian oil and gas its members could import “over time,” said Foreign Secretary Liz Truss, in a potential escalation of the impact of the war in Ukraine on energy markets. It was unclear from her comments if the G-7 was considering the step. The U.K. sources very little of its energy from Russia.
EU Seeks to Approve SWIFT, Central Bank Sanctions Sunday (12:45 p.m.)
The EU will seek to adopt its new sanctions excluding certain Russian banks from the SWIFT messaging system and penalizing Russia’s central bank on Sunday, before markets open Monday, according to officials familiar with the plan.
European ministers will try to adopt the package by emergency procedure on Sunday, according to the officials, who asked not to be identified because the process is private. There will also be discussions on extending the SWIFT ban to Belarusian banks.
Russian Forces Attack Ukraine’s Second City (11:35 a.m.)
Russian forces have attacked Kharkiv, Ukraine’s second-largest city, after a new round of sanctions was announced to punish the Kremlin over its invasion.
Troops are defending the city of 1.8 million, according to Ukrainian military authorities, who provided images of destroyed Russian vehicles in the city’s streets.
Putin’s Ukraine Move Fuels Shock at Home But Little Opposition
Swiss to Decide on Sanctions Approach (10:56 a.m.)
Switzerland’s federal council will meet Monday to consider a tougher position on EU sanctions against Russian individuals, Swiss newspapers reported. The government is struggling to decide whether such a stance might affect the nation’s perception of neutrality and ability to host any future peace talks, Sonntagszeitung newspaper reported.
Europe and Russia Air Bans Raise Echo of Cold War Disruption
Russia Central Bank Promises Plenty of Rubles (10:08 a.m.)
In its first public comment since the U.S. and EU said they would freeze its massive foreign-exchange reserves, the Bank of Russia said it will provide “uninterrupted” supplies of rubles to banks but made no mention of foreign currency support.
The central bank said Russia’s banking system has adequate resources to keep the system running and prevent any threats to financial stability. Domestic banking transactions can be conducted through Russia’s home-grown financial messaging system, it said, an apparent reference to U.S. and EU plans to exclude some Russian banks from SWIFT.
The U.S. and EU said late Saturday they’re freezing the assets of the Russian central bank. Much of its $640 billion in reserves is held in dollars and euros.
Offers of Military Aid to Ukraine Continue to Roll In (10:00 a.m.)
Offers of military aid to Ukraine continues to roll in. Italy is working on a plan to supply Ukraine with about 500 Stinger surface-to-air missiles and 1,000 anti-tank weapons, matching a pledge made by Germany, newspaper La Repubblica reported.
Portugal will provide equipment including helmets, night vision goggles, grenades, various ammunition, portable radios and G3 automatic rifles, its defense ministry said. Greece is also sending arms and ammunition.
The Czech Republic dispatched a train to Ukraine carrying machine guns, assault rifles, pistols, ammunition and artillery ammunition, the Defense Ministry said. Romania will send fuel, ammunition, bulletproof vests, food and medical equipment to Ukraine. Poland is also sending a convoy of munitions.
Germany to Lift Defense Spending in Latest Historic Policy Shift
Some Russian Banks Cut From SWIFT (1 a.m.)
Western nations agreed to unleash new sanctions to further isolate Russia’s economy and financial system after initial penalties failed to persuade President Vladimir Putin to pull out of Ukraine.
A decision by Western nations to exclude some Russian banks from the SWIFT messaging system, used for trillions of dollars worth of transactions between banks around the world, was announced Saturday. The move is aimed at Russian banks that have already been sanctioned by the international community, but can be expanded to other Russian banks if necessary, according to a spokesman for the German government.
In addition, the nations said they would act together to impose “restrictive measures that will prevent the Russian Central Bank from deploying its international reserves in ways that undermine the impact of our sanctions.”
Canada Looks for Ways to Pull Plug on Russian State Television
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