(Bloomberg) — Russia’s war against Ukraine has displaced almost 5 million people both inside and out of the country, according to the head of the United Nations, who said the conflict may sow instability around the globe.
Meanwhile, U.S. National Security Adviser Jake Sullivan started talks on Monday with China’s top diplomat, the first of their kind since Russia’s invasion. The discussions in Rome come as the Biden administration seeks to enlist Beijing’s help in exerting influence on President Vladimir Putin to end the war, and White House officials discuss a possible trip to Europe by President Joe Biden.
A fourth day of talks between Ukrainian and Russian negotiators paused so each side could take stock. Russia may also suspend grain exports starting Tuesday, the Interfax news service reported, driving wheat prices higher.
Key Developments
- Russia Kick-Starts World’s Most Anticipated Bond Coupon Payments
- How Europe Plans to Break From Russian Gas: BNEF
- Ukraine War Adds to EU Doubts Over Pursuing Poland, Hungary Spat
- Zelenskiy to Give Virtual Address to Congress Wednesday
- Kyiv’s Metro System Is Still Running Trains as Thousands Shelter
- Companies Leaving Russia Don’t Know If and When They’ll Return
All times CET:
U.S. Raises Concerns About China’s Support to Russia (7:40 p.m.)
China could do more than most nations to help bring an end to Russia’s war in Ukraine, State Department spokesman Ned Price told reporters after the meeting between senior U.S. and Chinese officials.
The U.S. raised concerns about China’s support to Russia during the Rome meeting. “We have seen the relationship between the PRC and Russia grow closer” over the course of “many years,” Price said.
World Bank Announces $200 Million in Ukraine Financing (7:35 p.m.)
The World Bank will provide $200 million in Ukraine financing to support essential social services, in addition to the $723 million mobilized for Ukraine last week. That’s part of the $3 billion package the group previously announced it is preparing for Ukraine over the coming months.
EU Set to Add Luxury Goods, Steel, Iron to Sanctions (6:46 p.m.)
The European Union is set to approve banning the sale to Russia of luxury goods valued at more than 300 euros ($330), as well as the purchase of many Russian steel and iron products as part of a fourth round of sanctions over the invasion of Ukraine, according to a draft obtained by Bloomberg.
EU diplomats on Monday teed up the stricter measures after several days of closed-door debate. They could be formally adopted as early as Tuesday morning.
The bloc is banning the sale of luxury cars, boats and planes valued at more than 50,000 euros, which would apply to models from several European car brands, including Audi, BMW, Mercedes, Ferrari and Porsche. It also covers motorcycles worth more than 5,000 euros, as well as parts and accessories. Many European carmakers have already voluntarily suspended sales to Russia.
Germany Plans F-35, Eurofighter Buy (6:10 p.m.)
Germany will purchase Lockheed Martin Corp. F-35 warplanes as well as 15 Eurofighters as it upgrades its military in response to Russia’s invasion of Ukraine, Defense Minister Christine Lambrecht said.
The goal is to replace its aging fleet of Tornado fighters by 2030, Lambrecht said Monday at a press conference. She didn’t say how many of the $100 million-plus F-35s Germany planned to purchase.
Germany has announced a 100 billion-euro ($110 billion) spending spree to modernize its armed forces, spurred by the threat to stability posed by Russia’s invasion of Ukraine.
Russia Used Cruise Missiles to Hit Target Near Poland: U.S. (5:47 p.m.)
Russia used air-launched cruise missiles from Russian territory — not the skies over Ukraine –in the attack on a military training center in western Ukraine close to the Polish border, a senior defense official told reporters Monday.
Overall, Russia has conducted more than 900 strikes on Ukraine since the war began, according to the defense official. Even so, most of Russia’s advances in Ukraine remain stalled, largely because of Ukrainian resistance, the official said.
White House Considers Biden Trip to Europe (5:30 p.m.)
The White House is discussing having Biden make a visit to unspecified destinations in Europe while Russia’s war in Ukraine is ongoing, according to people familiar with the matter.
Biden and his administration have sought to reassure NATO allies on the alliance’s eastern front that they have U.S. backing as Putin presses his invasion of Ukraine. A presidential visit would reinforce that message, though timing of the possible trip wasn’t immediately clear.
Russia Mulls Criminalizing Observing Sanctions (5:05 p.m. CET)
Russia’s ruling party will propose legal changes to make it a crime for local companies to comply with U.S. and European sanctions and refuse to do business with those hit by the limits, a top official said.
The proposal would include criminal penalties for top executives of companies that follow the western restrictions, Andrey Turchak, United Russia party secretary, said in a website statement. “This is practically complicity in worsening the economic situation,” he said.
A senior senator said the upper house of parliament would support the plan, Tass reported.
Almost 5 Million Displaced By Russian Invasion: UN Chief (4:35 p.m.)
At least 1.9 million people have been driven from their homes inside Ukraine by Russia’s invasion, with the country’s neighbors taking in more than 2.8 million refugees in the past two weeks, United Nations Secretary-General Antonio Guterres told reporters on Monday. Hundreds of thousands more are without water and electricity, he said.
The UN will allocate a further $40 million from the Central Emergency Response Fund to ramp up vital assistance to reach the most vulnerable. “Ukraine is on fire. The country is being decimated before the eyes of the world. The impact on civilians is reaching terrifying proportions,” Guterres said.
The conflict is sowing instability around the world, particularly in developing countries struggling to recover from the pandemic that now face “record inflation, rising interest rates and looming debt burdens,” he said. “Now their breadbasket is being bombed.”
Germany Warns Russian Energy Ban Wouldn’t Have Desired Effect (4:41 p.m.)
Shutting down energy imports from Russia might not work as a last-resort tool to stop Russia’s invasion, German Finance Minister Christian Lindner told reporters in Brussels ahead of a meeting of euro-area finance ministers.
“All options are on the table, but we have to seriously consider which means put pressure on Putin and which means could harm ourselves more,” he said in response to a question on whether Germany would consider a two-week halt in imports. “From my perspective, a ban would not have the effect on the current situation in Ukraine as we all would hope.”
Evacuation of Civilians From Mariupol Starts (3:51 p.m.)
More than 160 cars and other vehicles left the besieged Sea of Azov port city of Mariupol under a cease-fire agreement in Ukraine’s east, reaching Berdyansk and moving toward the Ukrainian-government held city of Zaporizhzhia, the Mariupol city council said.
A humanitarian aid column for Mariupol, which was stuck in Berdyansk for two days, is also moving toward the city, which is suffering from a lack of water, electricity and food. Ukrainian authorities say that more than 2,000 people have been killed in Mariupol since the start of the war by Russian shelling and air strikes.
Russia May Halt Grain Exports on March 15, IFX Reports (3:35 p.m.)
Russia may temporarily ban the export of wheat, rye, barley and corn to Eurasian Economic Union countries from March 15 to June 30, Interfax reports, citing the Agriculture Ministry. Russia is past its seasonal peak for wheat sales, but still had about 8 million tons left to ship, the FAO estimated this month.
Russia and Ukraine account for about a quarter of global wheat trade and shipments from both countries have largely dried up following the invasion.
Zelenskiy to Address U.S. Congress (3:20 p.m.)
Ukrainian President Volodymyr Zelenskiy is to deliver a virtual address to the U.S. Congress on Wednesday. Only Senators and House members will attend the 9 a.m. speech, according to a letter to lawmakers from Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer.
Zelenskiy briefed several U.S. lawmakers virtually earlier this month, but his remarks weren’t livestreamed. Lawmakers in both parties have been pushing for the Biden administration to do more for Ukraine.
Oil Retreats With Focus on Ukraine-Russia Talks (3:10 p.m.)
Oil declined, with futures falling about 6% to trade near $103 a barrel.
For those watching supply, talks between Russian and Ukrainian negotiators showed some signs of becoming more substantive, On the demand side, China placed 17.5 million people in the tech hub Shenzhen under lockdown for at least a week amid a surge in Covid-19 infections, and told people in Jilin province not to travel.
U.S. Pares Gains as Chinese Stocks Plunge (2:20 p.m.)
Contracts on the S&P 500 pared gains, while those on the Nasdaq 100 dropped as panic selling of Chinese tech stocks dented sentiment. Chinese stocks listed in Hong Kong had their worst day since the global financial crisis amid concerns over Beijing’s close relationship with Russia.
The rout follows a report citing U.S. officials that Russia has asked China for military assistance for its war in Ukraine. Even after China denied the report, traders worry that any potential overture by Beijing toward Vladimir Putin could bring a global backlash against Chinese firms, even sanctions. Meanwhile, a drop in crude oil dragged shares of energy companies lower in U.S. pre-market trading.
Borrell Says ‘Barbaric’ Russia Is Targeting Civilians (1:45 p.m.)
The European Union’s foreign policy chief Josep Borrell condemned “barbaric aggression” by President Vladimir Putin against Ukraine and said Russia’s army was carrying out air, missile, and artillery strikes against civilians, including against food warehouses, hospitals and schools.
The UN has reported over 1,600 civilian casualties since Russia’s invasion began, although it said the figures are probably “considerably higher” in government-controlled areas amid intense fighting in recent days. The Kremlin has denied targeting civilians.
Russia Says It Didn’t Ask for Chinese Help (12:35 p.m.)
Russia hasn’t asked China for military assistance in what it calls a “special operation” in Ukraine and has all the resources it needs to complete the mission as planned, Kremlin spokesman Dmitry Peskov said Monday.
“Russia has the independent capacity to continue the operation,” Peskov told a conference call. “As we said, it’s going according to plan and will be completed in full.”
Rejecting assertions by U.S. and European officials that the campaign is proceeding more slowly than Moscow expected, Peskov said it will be completed on schedule. He declined to comment on when the war is expected to end.
Singapore Imposes Targeted Sanctions on Russia (12:35 p.m.)
Singapore’s central bank unveiled details of targeted financial measures against Russia, part of the city-state’s broader package of unilateral sanctions induced by the war in Ukraine.
The Monetary Authority of Singapore said the measures apply to all financial institutions in the island republic, including banks, finance companies, insurers, capital market intermediaries, securities exchanges and payment service providers.
Israel Says It Won’t Be Sanctions Loophole (11:53 a.m.)
Israel won’t be a route to bypass sanctions imposed on Russia by the U.S. and other nations, Foreign Minister Yair Lapid said Monday.
“There is no justification for violating Ukraine’s territorial integrity, and there is no justification for attacks on a civilian population,” Lapid said after meeting Slovak Foreign & European Affairs Minister Ivan Korcok in Bratislava.
EU Holds Off Rule-of-Law Plan On Ukraine (11:52 a.m.)
The European Union will likely hold off on immediately triggering its powerful new rule-of-law mechanism that allows the bloc to withhold budget payments to countries accused of democratic backsliding, particularly Poland and Hungary.
The punitive measures would be risky given the legal hurdles required to use the powers and at a time when member states are struggling to deal with higher energy costs, the prospect of further economic fallout from the Russian invasion of Ukraine and an influx of refugees, according to people familiar with the discussions.
EU to Hold Back on Rule-of-Law Budget Fight Amid War in Ukraine
Instagram Now Blocked in Russia (11:13 a.m.)
Instagram is now fully blocked in Russia, according to GlobalCheck, a service that studies Internet restrictions in former Soviet states.
Russian prosecutors last week asked a court to declare Meta Platforms an “extremist” organization and ban its operations after Facebook temporarily relaxed its policies so that Ukrainian users could post threats of violence against the Russian military.
Russia has already blocked Twitter and Facebook in recent weeks. Many Russian Instagram users – including small businesses, influencers and opposition figures – posted goodbye messages over the weekend and asked their followers to move to Telegram. The decision will cut 80 million people in Russia off from the platform, its head Adam Mosseri said.
EU Mulls Russia Export Ban on Luxury Cars (10:17 a.m.)
The EU is discussing a ban on exports to Russia of luxury vehicles valued at more than 50,000 euros as part of its latest sanctions package, according to two diplomats familiar with the proposal.
The proposed ban, which is set to be approved as early as Monday and could still change, could apply to models from several European car brands, including Audi, BMW, Mercedes, Ferrari and Porsche. The EU measure would also include boats and planes, as well as chairlifts and motorbikes worth more than 5,000 euros.
China Rejects Report Russia Sought Help (9:29 a.m.)
China rejected on Monday reports that Russia had sought its military assistance for the invasion of Ukraine, dismissing the accusations as U.S. “disinformation.”
“The top priority now is that all parties should exercise restraint to deescalate and cool down the situation,” Chinese Foreign Ministry spokesman Zhao Lijian said. “We should promote a diplomatic settlement rather than further escalating the tension.”
Beijing has sought to present itself as neutral on the war. Still, Zhao repeated Russian claims that the U.S. is operating biolabs in Ukraine, despite the UN Security Council saying Friday it was “not aware” of any such biological weapons programs, underscoring its support for Moscow in countering U.S. narratives.
(An earlier version corrected an item to reflect that grain-export ban to cover only Eurasian Economic Union countries)
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