(Bloomberg) — Shenzhen-based drone-maker DJI, the world’s largest producer of unmanned aerial vehicles, halted all business activities in Russia and Ukraine, becoming the highest-profile Chinese company to withdraw from the war-torn region.
Russia plans to stop natural gas flows to Poland and Bulgaria on Wednesday, making good on a threat to cut off buyers if they refuse Putin’s demand to pay in rubles. European gas prices surged on the move.
United Nations Secretary-General Antonio Guterres met Vladimir Putin in Moscow, seeking to revive diplomatic efforts to end the war more than two months after the Russian president ordered the invasion of his neighbor. Guterres next heads to Ukraine for talks with President Volodymyr Zelenskiy.
(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)
Key Developments
- Russia to Cut Gas to Poland and Bulgaria, Making Energy a Weapon
- DJI Becomes Most Prominent Chinese Firm to Halt Russia Business
- Russia Left Swaths of Ukraine Seeded With Mines, Aid Group Says
- Moldova Accuses Moscow-Backed Separatists of Fueling Tensions
- German Minister Says Full Embargo on Russian Oil ‘Manageable’
- Why Russia’s View of ‘Tactical’ Nukes Raises Alarms: QuickTake
(All times CET)
Chinese Drone Maker DJI to Suspend Business (6:04 a.m.)
Drone-maker SZ DJI Technology Co. is temporarily suspending business to comply with regulations in various jurisdictions, it said in a brief statement without elaborating. Its halt follows U.S. sanctions on Russia for invading Ukraine, which Washington has threatened to enforce broadly.
DJI’s move to halt business sets it apart from other major Chinese corporations. China has urged an end to the war in Ukraine but refuses to criticize the invasion, vowing instead to maintain trade relations with Russia, a key global energy supplier.
Read more: DJI Becomes Most Prominent Chinese Firm to Halt Russia Business
Euro Falls, Oil Gains on Gas Flow Worries (3:59 a.m.)
The euro touched the weakest level versus the greenback since 2017 amid worries that Moscow may choke gas flows to Europe, hurting the region’s growth in the fallout from Russia’s invasion.
Oil extended gains, with West Texas Intermediate futures climbing above $102 a barrel after rising 3.2% on Tuesday.
Ammunition Depot Fire in Russia’s Belgorod, Tass Says (3:58 a.m.)
An ammunition depot caught fire in Russia’s Belgorod region in the vicinity of border with Ukraine, Tass reported, citing a post on Telegram from Vyacheslav Gladkov, a local governor. The governor said there were no reports of injuries or damage to civilian buildings.
Renault May Transfer Russia Unit to Local Owner, IFX Says (11:30 p.m.)
French carmaker Renault SA may hand its 68% stake in Russian unit AutoVAZ to a research institute that reports to the Moscow government, Interfax reported, citing Russian Industry Minister Denis Manturov.
The sale may take place for a token sum with Renault keeping an option to get the shares back within five or six years if it decides to return to Russia, Manturov told Interfax. A spokesperson for Renault declined to comment when contacted by Bloomberg News.
U.S. Weapons Stockpile Risks Running Low (10:45 p.m.)
U.S. weapons stockpiles could run out in several months if the Biden administration continues to send war-fighting supplies to Ukraine, defense experts told Congress. “It’s a huge threat to our security,” Ellen Lord, former under secretary of defense for acquisition and sustainment, said at an Armed Services Committee hearing.
Lord said the U.S. has sent almost a quarter of its stockpile of Stinger missiles to Ukraine. David Berteau, president of the Professional Services Council, said that since the Russian invasion of Ukraine, the U.S. is readying almost one-third of available weapons stockpiles with no current contracts to replenish them.
Gazprom to Halt Gas Supplies Through Bulgaria (9:36 p.m.)
Bulgaria’s state-owned Bulgargaz was notified by Russia’s Gazprom Export that Gazprom will halt supplies as of April 27, the Bulgarian Energy Ministry said in a statement.
The ministry said Bulgaria has met its contract obligations and has taken steps to secure alternative supplies.
Putin Open to UN Role in Mariupol, Guterres Says (8:44 p.m.)
Putin “agreed in principle” to involvement by the United Nations and the International Committee of the Red Cross in evacuating civilians from the besieged Azovstal steel plant in Mariupol, according to a UN statement after Secretary-General Guterres met the Russian president in Moscow.
Putin said during the meeting that Russia isn’t refusing to negotiate with Ukrainians, according to an excerpt shown on state TV. Officials from both Russia and Ukraine have said the talks are at a dead end. Guterres plans to visit Ukraine on Wednesday.
China Hasn’t Yet Supported Russia’s Invasion, Blinken Says (7:48 p.m.)
The U.S. hasn’t yet seen China provide “significant” military support for Russia’s invasion of Ukraine, Secretary of State Antony Blinken told the Senate Foreign Relations Committee.
Blinken said China’s refusal to take a stand against the invasion is creating “significant reputational risk” for Beijing.
Russia Halts Gas to Poland After Refusal to Pay in Rubles (7:16 p.m.)
Russia will halt gas flows to Poland on Wednesday, the Polish gas company PGNiG said. The company says it hasn’t got any outstanding payments and that the cutoff is a breach of its contract.
The company says it will not pay in rubles, as requested by Putin. Paying in rubles would breach sanctions, according to the European Union. Poland’s natural gas storage is filled to 76% of capacity and has sources of supply that protect the country’s security, Environment Minister Anna Moskwa said on Twitter.
European natural gas futures surged as much as 17% and closed 11% higher at 103.21 euros per megawatt-hour as more countries braced for a possible cut in Russian shipments.
Kremlin Weighs Suspending Regional Elections (4:32 p.m.)
The Kremlin is considering a plan to suspend regional elections set for September amid concerns about growing social tension due to the war and sanctions imposed by the U.S. and its allies, according to people familiar with the discussions.
The proposal could be brought formally to Putin as soon as Wednesday, Kommersant and RBC newspapers reported. While polls show support for Putin has surged since the invasion, the discussions are an indication of the Kremlin’s worry about the rising political and economic costs as fighting continues and living standards decline.
Guterres Proposes Humanitarian Contact Group (4:04 p.m.)
UN chief Guterres proposed setting up a humanitarian contact group in Ukraine to help evacuate civilians trapped by the fighting, he said after talks with Russian Foreign Minister Lavrov.
Guterres said he had a “very frank” discussion with Lavrov about the need to end the conflict now, while Lavrov countered that Moscow is still waiting for a response to its latest proposals in peace talks with Ukraine.
“There is one thing that is true and obvious and that no argument can change — we have not Ukrainian troops in the territory of the Russian Federation but we have Russian troops in the territory” of Ukraine, Guterres said.
Kremlin Sees Ukraine Breaking Into Several States (3:32 p.m.)
Ukraine may collapse into several states, Russian Security Council Secretary Nikolai Patrushev said, in the latest comments by a senior Kremlin official that appear to go beyond attempts to cement control over separatist-held territory.
Patrushev blamed the conflict on the “policy of the West” and Ukrainian authorities in an interview with the state-run Rossiiskaya Gazeta newspaper.
Moldova Says Transnistria Forces Behind Blasts (3:30 p.m.)
Moldova’s President Maia Sandu said forces within the separatist region of Transnistria that back Russia’s war in Ukraine were behind the recent blasts that rocked several sites there.
“We condemn any provocation and attempts to drag Moldova into actions that may endanger peace within the country,” Sandu told journalists as her government raised its level of security readiness at key institutions and infrastructure sites.
An observation mission from the Organization for Security and Co-operation in Europe may arrive in Moldova this week to aid communication between the government in Chisinau and the self-proclaimed administration in Transnistria.
Putin Says Ukraine Should Tell Mariupol Troops to Surrender (2:55 p.m.)
Ukraine should order its troops in Mariupol’s blockaded Azovstal steel plant to lay down their arms and surrender, Putin told Turkish leader Recep Tayyip Erdogan, the Kremlin said in a statement.
Putin has ordered Russian troops not to storm the complex and seal it off instead. Ukrainian officials said at the weekend attacks continued on the plant and it wasn’t possible to relieve forces and citizens trapped there.
Germany Says Embargo on Russian Oil ‘Manageable’ (2:52 p.m.)
Germany has cut its reliance on Russian oil enough to make an embargo “manageable,” Economy Minister Robert Habeck told reporters in Warsaw.
Oil from Russia accounts for about 12% of German imports currently, down from 35% before the invasion, Habeck said. Germany’s long-standing reluctance to stop buying Russian energy has put the country at odds with Ukraine, which accuses it of financing the Kremlin’s war machine.
UN Projects Up to 8.3 Million Refugees (11:30 a.m.)
As many as 8.3 million refugees are expected to flee Ukraine by the end of this year, according to the UN Refugee Agency.
More than 5.2 million people have fled since Russia attacked on Feb. 24, a spokesperson for the agency said at a briefing in Geneva. The UN agency initially projected Russia’s invasion could create 4 million refugees. The UN Office for the Coordination of Humanitarian Affairs doubled its appeal for aid to $2.25 billion due to the “worsening situation.”
Transnistria Says Military Unit Attacked (11:15 a.m.)
Authorities in the breakaway Transnistria region of Moldova reported an attack on a military unit Tuesday, hours after a pair of antennas broadcasting Russian radio were blown up, the latest episodes in a spike of violence reported in the Moscow-backed enclave in as many days.
Moldova’s President Maia Sandu called a meeting of the Supreme Defense Council in Chisinau Tuesday to discuss the incidents. Self-declared Transnistria, which borders Ukraine, also called a meeting of its Security Council, Russia’s Tass news service reported.
Poland Sanctions Russian Firms, Individuals (10:30 a.m.)
Poland imposed sanctions on 35 Russian companies and 15 businessmen in an attempt to undermine funding for Moscow’s war in Ukraine, Interior Minister Mariusz Kaminski said at a news conference in Warsaw.
The sanctions, which include asset freezes and entry bans, target Polish units of Russia’s largest companies and their owners such as Oleg Deripaska, Mikhail Fridman and Eugene Kaspersky. The list may be expanded, Kaminski said.
Ukraine’s Allies Can Do More, Austin Says (10:10 a.m.)
Austin opened the meeting of top defense officials from more than 40 countries in Ramstein saying the aim is to establish a common understanding of Ukraine’s near-term defense needs. He added that NATO members and other allies can further strengthen coordination to help Kyiv repel Russian attacks in the east and south of the country.
“We can do more through our defense industrial bases to continue to help Ukraine defend itself even more capably,” Austin said. Ukrainian Defense Minister Oleksii Reznikov is attending the talks.
Germany to Send 50 Anti-Aircraft Tanks (10:00 a.m.)
Chancellor Olaf Scholz’s government will approve delivery of 50 Gepard anti-aircraft tanks to Ukraine in Germany’s first step to supply heavy weapons to counter Russia’s invasion.
In remarks prepared for the Ramstein meeting, Defense Minister Christine Lambrecht said Germany will also increase military assistance to 2 billion euros ($2.1 billion) to pay for weapons that Ukraine orders from German defense contractors.
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