(Bloomberg) — The United Nation’s nuclear watchdog put its incident and emergency center in full response mode after Ukrainian officials said Russia’s military shelled Europe’s largest nuclear power plant, raising safety concerns and escalating the stakes of Vladimir Putin’s invasion.
U.S. President Joe Biden urged Russia to halt the assault after speaking with Ukrainian President Volodymyr Zelenskiy about the incident that sparked a blaze at the Zaporizhzhia power plant. Stocks and equity futures fell and havens including sovereign bonds rose. But the panic eased as investors weighed the severity of the incident, while the U.S. Department of Energy said it has seen no elevated radiation readings near the facility.
“If there is an explosion, it is the end of Europe,” Zelenskiy warned in a video message, adding that he also spoken with U.K. Prime Minister Boris Johnson, German Chancellor Olaf Scholz and other leaders. Zelenskiy has appealed to Putin to meet, saying it’s the only way to stop the war.
Earlier, Putin said the military operation in Ukraine was “going according to plan,” despite sanctions that have walloped his economy. The Russian president remained undeterred, telling France’s Emmanuel Macron on Thursday that he plans to fulfill the goals of his invasion, including removing the government in Kyiv.
Key Developments
- Europe’s Largest Nuclear Plant Attacked by Russia, Ukraine Says
- U.S. Sanctions Usmanov, Prigozhin, Tokarev, Other Russian Elites
- Biden’s Tough Sanctions Create Worry That Putin Lacks an Exit
- Russian Assault Shows No Letup as Putin’s War Enters Second Week
- What Russia Invasion, Sanctions Mean for Global Economy
- Russian Fleet Approach Has Ukraine’s Port City of Odesa Bracing
- Ukraine Sees $15 Billion in Aid Coming as War Wrecks Economy
- Russian Banker’s London Broker Faces Collapse on Russia Ties
All times CET:
IAEA’s Emergency Center in Full Response Mode (4:29 a.m.)
The International Atomic Energy Agency put its Incident and Emergency Centre in a full response mode “due to the serious situation” at the nuclear plant, it said on Twitter.
The UN nuclear watchdog previously said radiation levels at the Zaporizhzhia plant remain unchanged, citing Ukrainian authorities.
Stocks Fall Amid Fire at Nuclear Plant (3:35 a.m.)
Stocks and equity futures fell and havens including sovereign bonds rose after a fire broke out at major nuclear power plant in Ukraine.
An initial spasm of worry lopped 3% off European equity futures but the panic eased a little as investors weighed the incident. European contracts pared the drop to about 2%, while those for the U.S. shed less than 1%.
Gains in gold and the dollar moderated, while the euro pared a decline. Oil was near $110 a barrel, trimming a jump of as much as 4.8%.
Johnson Seeks Security Council Meeting (3:31 a.m.)
U.K. Prime Minister Boris Johnson spoke to Zelenskiy on the situation at Zaporizhzhia plant, according to a statement from the PM’s office.
Both leaders agreed that Russia must immediately cease its attack on the power station and allow unfettered access for emergency services, it said. Johnson said he would be seeking an emergency UN Security Council meeting in the coming hours, and that the U.K. would raise this issue immediately with Russia and close partners.
Biden Briefed on Nuclear Plant Danger (3:27 a.m.)
Biden received an update on the nuclear plant attack from Ukrainian Zelenskiy, the White House said in a readout of their call. Both leaders urged “Russia to cease its military activities in the area and allow firefighters and emergency responders to access the site,” the White House said.
After the call, Biden was briefed on the situation by Jill Hruby, the undersecretary for nuclear security of the U.S. Department of Energy and administrator of the National Nuclear Security Administration. Biden will continue to receive updates on the incident, the White House added.
The Zaporizhzhia power plant in the Ukrainian city of Enerhodar is home to six Soviet-designed 950-megawatt reactors built between 1984 and 1995 with capacity of 5.7 gigawatts, enough to power more than 4 million homes. The site accounts for about 20% of the country’s electricity, according to its website.
Fire Didn’t Affect Essential Equipment, IAEA Says (3:20 a.m.)
Ukrainian Foreign Minister Dmytro Kuleba said a fire had broken out at the Zaporizhzhia plant and called on Russia’s military to immediately halt firing. Ukraine told the International Atomic Energy Agency the fire “has not affected ‘essential’ equipment” and plant personnel were taking “mitigatory actions.”
Plant’s Radiation Levels Unchanged (2:48 a.m.)
The American Nuclear Society said in statement that there were no signs that damage caused from the attack posed an additional threat to the public. “Both Russia and Ukraine should understand the importance of ensuring the safety of nuclear power plants and their staff,” the La Grange Park, Illinois non-profit group said.
Earlier, IAEA Director General Rafael Grossi spoke with Ukrainian Prime Minister Denys Shmyhal and Ukraine’s nuclear regulator about the “serious situation” at the plant, according to a Twitter post from the agency.
Europe’s Largest Nuclear Power Plant on Fire (1:59 a.m)
Europe’s largest nuclear power plant was on fire after Russian troops began shelling early Friday.
Ukraine’s Foreign Minister Dmytro Kuleba called on Russia’s military to immediately halt firing on the plant and allow a security zone to be established.
Nuclear Plant Under Attack, Reports Say (1:16 a.m.)
The Zaporizhzhia Nuclear Power Plant has come under attack by Russian forces, according to the Associated Press.
“We demand that they stop the heavy weapons fire,” Andriy Tuz, spokesperson for the plant in Enerhodar, said in a video posted on Telegram. “There is a real threat of nuclear danger in the biggest atomic energy station in Europe.” Telephone calls to the power plant didn’t connect, and the plant didn’t immediately respond to an email seeking comment on the situation.
Earlier, the International Atomic Energy Agency confirmed that the Russian military is battling now outside the gates of Europe’s and Ukraine’s biggest nuclear power plant.
Industrial Metals Extend Rally, Equities Struggle (11:50 p.m.)
Industrial metals extended a rally fueled by trade turmoil and the increasing economic isolation of Russia, with zinc reaching its highest since 2007 and aluminum surging to a record. Oil fell on signs that high-stakes talks to revive a nuclear deal with Iran might soon conclude — potentially raising supply as traders increasingly shun Russian crude.
Equities struggled to find direction throughout most of the session, with the S&P 500 finishing lower ahead of a key U.S. jobs report. The dollar advanced.
Russia had its credit score cut for the second time in a week by S&P Global Ratings as sweeping sanctions weaken the nation’s financial strength. The rating company on Thursday lowered Russia’s sovereign rating by eight levels to CCC-, according to a statement, just two steps above a default ranking. This comes mere days after it cut to the junk rating of BB+ late last Friday. The country remains on watch negative, according to S&P, which means it could be lowered further still.
U.S. Set to Give Protected Status to Ukrainians (11 p.m.)
The Department of Homeland Security will soon begin giving Temporary Protected Status to Ukrainians who are in the U.S.
The move by Homeland Security Secretary Alejandro Mayorkas would be effective as of March 1, meaning that Ukrainian nationals would have to had been in the U.S. by then to be eligible. Members of Congress from both parties have pushed the Biden administration to grant the status, which would allow Ukrainians already in the country to remain for now.
U.S. Immigration and Customs Enforcement has halted deportation flights to Ukraine.
Russian Military Nears Nuclear Power Plant (10:20 p.m.)
The International Atomic Energy Agency confirmed that the Russian military is battling now outside the gates of Europe’s and Ukraine’s biggest nuclear power plant.
In an urgent letter to the IAEA, the Ukraine regulatory authority said Russian infantry were moving directly toward the Zaporizhzhia Nuclear Power Plant and called the situation “critical.”
The IAEA called for an immediate halt to the use of force at Enerhodar and called on the military forces operating there to refrain from combat near the nuclear power plant.
Scholz Tells German Ex-Leader to Cut Russian Ties (9:58 p.m.)
German Chancellor Olaf Scholz called on former leader Gerhard Schroeder to give up board seats on Russian energy companies. Schroeder, chairman of state-owned Russian oil giant Rosneft PJSC and of the shareholder committee of Nord Stream AG, has supported a Russia-to-Germany natural-gas pipeline that Scholz halted last month.
“My advice to Gerhard Schroeder is to withdraw from these posts,” Scholz told German broadcaster ZDF.
Russia’s invasion of Ukraine has prompted Germany to realign its military and economic stance toward Moscow and Putin. Schroeder, who was German chancellor from 1998 to 2005, has kept up friendly ties with Putin after retiring from politics.
Pentagon Sets Up Emergency Channel to Russian Military (9:09 p.m.)
The U.S. military has established an emergency channel with the Russian military for rapid communications, according to a Pentagon statement.
“The United States retains a number of channels to discuss critical security issues with the Russians during a contingency or emergency,” the Pentagon said.
The Pentagon on March 1 set up what it calls the “deconfliction line” with the Russian Ministry of Defense to prevent the possibility of a misunderstanding that could escalate. The Pentagon said its first offer of such a channel was rejected.
Sanctioned Russians Have No Way Off List (8:57 p.m.)
There is currently nothing Russian oligarchs or officials could do to convince U.S. and European countries to remove them from the sanctions list, two senior officials said Thursday.
Instead, U.S. and EU task forces are hunting down the assets that belong to the tycoons and their families already announced for sanctions. The business leaders and others on the list are a part of the Russian regime and play an important role in the Russian state, a senior EU official said.
A senior Biden administration official said every ounce of the U.S. effort right now is devoted to holding the Russians to account. The U.S. government is working with Europe and the U.K. to identify, hunt down and seize assets, the U.S. official said.
Putin’s Spokesman Sanctioned Along With Wealthy Russians (8:04 p.m.)
Dmitry Peskov, Putin’s press secretary, was among those sanctioned by the Biden administration Thursday, as the U.S. and its allies seek to raise pressure on the elites around the Russian president.
The other sanctioned Russians include: Nikolay Tokarev and his wife and daughter; Boris Rotenberg and his wife and sons; Arkady Rotenberg and his sons and daughter; Sergey Chemezov and his wife, son and stepdaughter; Igor Shuvalov and his wife, son, daughter and companies connected to them; Yevgeny Prigozhin and his wife, daughter and son; and Alisher Usmanov, as well as his superyacht and private plane.
“The United States and governments all over the world will work to identify and freeze the assets Russian elites and their family members hold in our respective jurisdictions – their yachts, luxury apartments, money, and other ill-gotten gains,” the White House said in a statement.
Italy’s Generali Winds Down Russian Business (7:54 p.m.)
Italian insurer Assicurazioni Generali SpA is winding down its Europ Assistance operations in Russia, quitting the board of Ingosstrakh Insurance Co. and closing its Moscow representative office.
Generali owns a 38.5% stake in Ingosstrakh, a Russian-based insurer that has billionaire Oleg Deripaska as a shareholder. The insurer provides life and non-life products as well as mortgage loans and savings and retirement plans.
White House Rebuffs Call to Ban Russian Oil (7:36 p.m.)
The White House again rebuffed a call to ban Russian oil from the U.S., this time from House Speaker Nancy Pelosi, one of President Joe Biden’s closest allies.
“We don’t have a strategic interest in reducing the global supply of energy, and that would raise prices at the gas pump for the American people around the world, because it would reduce the supply available,” White House Press Secretary Jen Psaki told reporters at a briefing Thursday. “That is certainly a big factor for the president.”
Russian oil made up only about 3% of all crude imports in the U.S. last year. “Ban it. Ban the oil coming from Russia,” Pelosi told reporters earlier Thursday, making her the highest-ranking Democrat to endorse the move.
Nike Pauses Operations in Russia; Halts Online Sales, Stores (7:32 p.m.)
Nike Inc. will pause operations in Russia, including halting e-commerce sales and temporarily closing company-owned and operated shops in the country. Store employees will continue to receive their paychecks during the closures.
“We are deeply troubled by the devastating crisis in Ukraine and our thoughts are with all those impacted, including our employees, partners and their families in the region,” Nike said in a statement, adding that it will donate $1 million to humanitarian relief efforts.
Russian-Ukrainian Progress Seen on Humanitarian Corridors (7:20 p.m.)
Russian and Ukrainian negotiators agreed to hold a third round of talks after suggesting they made some progress on establishing humanitarian corridors to evacuate civilians.
Russian negotiator Leonid Slutsky said the third round of talks will take place “in the nearest future,” while Mykhailo Podolyak, an adviser to President Zelenskiy’s chief of staff, lamented in a posting on Twitter that “we did not yet get the results that we hoped for.”
Slutsky said more meetings are necessary – and a deal may be ratified at the highest level. The two teams met at a location in the Bialowieza Forest on the Poland-Belarus border.
U.S. Says Quad Promises Humanitarian Aid (6:54 p.m.)
U.S. President Joe Biden spoke with the other three leaders of the Quad — Australia, India and Japan — and agreed to set up a new line of communication to deliver humanitarian help to Ukraine, according to a White House statement.
Garland Vows ‘No Stone Unturned’ on Crimes Against Ukraine (6:50 p.m.)
U.S. Attorney General Merrick Garland said the Justice Department and international allies “will leave no stone unturned in our efforts to investigate, arrest and prosecute those whose criminal acts enable the Russian government to continue its unjust war against Ukraine.”
A veteran prosecutor for the U.S. attorney’s office in Manhattan, Andrew Adams, has been tapped to lead a new task force targeting the assets of wealthy Russians who violate U.S. sanctions, Garland said in a speech before a lawyer’s conference on Thursday.
Putin Says Ukraine Operation ‘Is Going Strictly on Schedule’ (6:30 p.m.)
“All the goals that have been set are being attained,” Putin told top officials in televised comments to a meeting of his Security Council. Reiterating his view that Russians and Ukrainians are “one people,” Putin claimed his forces are fighting “neo-Nazis” and forces from outside Ukraine.
Ukraine, which has committed its army to the battle, and its allies have charged Russia with targeting cities and civilians.
Zelenskiy said Thursday he feared Putin had broader goals than Ukraine. If “God forbid, Russia takes Ukraine,” then next will be Latvia, Lithuania, Estonia, Moldova, Georgia, and Poland, he told foreign reporters in Kyiv. “And they won’t stop until they reach Berlin,” he said.
Oil Company Lukoil Calls for Diplomatic End to ‘Conflict’ (6:15 p.m.)
Lukoil PJSC, Russia’s second-largest oil producer, called for the “fast resolution of the military conflict” in Ukraine by diplomatic means, saying in a statement on its website “we fully support its resolution through negotiations.”
Lukoil’s statement follows an exodus of international companies from Russia, including the departure of energy giants BP and Shell from joint ventures with Russian state-run oil companies.
BOE Won’t Publish Data on Russian Ruble Exchange Rate (6:00 p.m.)
The Bank of England has joined the European Central Bank in stopping publication of data on ruble exchange rates against the dollar and the pound.
EU Seeks to Suspend Russia’s Most-Favored Nation WTO Status (4:31 p.m.)
The EU is seeking to remove Russia’s most-favored nation status at the World Trade Organization, a move that could further hit 95 billion euros ($105 billion) of Moscow’s exports to the bloc with tariffs. The European Commission, the EU’s executive arm, is discussing the possibility with member states, according to commission spokeswoman Miriam Garcia Ferrer.
Ruble Sinks to Another Record Low (3:44 p.m.)
The ruble sank to a record low against the dollar in Moscow trading, dropping for a fourth day after ratings services lowered Russia’s credit score deep into junk territory. Russia’s equity and bond markets are still closed, and currency trading is going ahead in a shortened daily session.
The ruble was down almost 10% at 117.2275 per dollar in Moscow, to reach its longest run of declines since August and the weakest intraday level since at least 2003 in Moscow. In offshore trading the ruble was 2.3% lower at 104.6355.
EU Ministers Dampen Expectations for Economic Aid Package (3:30 p.m.)
There may be little political appetite to fund a new economic aid program for Europe, Finnish Finance Minister Annika Saarikko and Eurogroup President Paschal Donohoe signaled after meeting in Helsinki, even as the European Commission is working on a contingency package to cushion the impact of sanctions and the ongoing war on EU economy.
“Now is not yet the time to talk about how to mitigate the economic impacts of sanctions on member states, but it’s time to send a message that we are, if needed, ready for even stronger sanctions,” Saarikko told reporters in Helsinki.
Putin Tells Macron Russia Will Fulfill Goals in Ukraine (3:30 p.m.)
Putin told Macron he planned to fulfill his goals on Ukraine, Interfax reported, citing the Kremlin’s press service.
Macron spoke to Putin at the Russian leader’s request, according to an official in Macron’s office. Putin told him that everything was going according to his plan in Ukraine and that things will get worse. Putin also denied Russia had bombed Kyiv or hurt civilians, while Macron condemned his actions, the official said.
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