(Bloomberg) — Russia’s invasion of Ukraine, including shelling from Belarus across northern border, has been accompanied by separatists launching assaults in the eastern part of the country.
The government in Kyiv called it a “full-scale invasion” as it declared martial law and called for international support including harsher sanctions on Russia. Moscow said it had taken out military facilities, including airbases, Interfax reported.
President Vladimir Putin’s military moves upended markets, with the ruble and Russian stocks sinking while oil and gold soared. European gas prices surged as the attacks put fuel supplies in Europe — already in the midst of an energy crunch — at further risk.
Russia was roundly condemned by Western leaders including U.S. President Joe Biden, who said more sanctions would follow. The European Union said leaders will use an emergency summit in Brussels Thursday to decide how to react, and the U.K. said it intended further economic penalties on Moscow.
Key Developments
- Treasuries, Haven Assets Rally as Putin Moves on Eastern Ukraine
- Bank of Russia Rolls Out First Emergency Measures as Ruble Dives
- Oil Soars Past $100 as Russia Attacks Targets Across Ukraine
- From Pipelines to Ports, These Are Ukraine’s Key Commodity Sites
- European Gas Prices Surge After Russia Attacks Ukraine Targets
All times CET:
Ruble Sinks at Local Trading Resumes (8:15 a.m)
Russia’s ruble plunged 7.3% as trading in the local market resumed. The benchmark MOEX stock index dropped more than 13%. The Moscow Exchange earlier halted trading in the ruble, stocks and futures, after the currency fell to its lowest level since 2016.
Residents Fleeing Key Port City (8:12 a.m)
People in the southeastern port city of Berdyansk are leaving, with the expectation the city could soon be under fire, although that doesn’t appear to have happened yet, according to Olga Saminina, the director of Berdyansk Commercial Sea Port. “We have faith in our army and our country,” she said in a text.
Berdyansk port, on the Sea of Azov, lost 90% of its traffic as a result of the long-running Donbas conflict with separatists and the construction of a bridge between Crimea and Russia. Half of the port has been requisitioned by Ukraine’s defense ministry to build a naval facility.
Russia Claims It Knocked Out Airbases (8:10 a.m.)
Russia subdued Ukrainian air defenses and knocked out the country’s military airbases, Interfax reported, citing the Defense Ministry.
Ukraine Says Gas Flowing Normally Despite Crisis (7:55 a.m)
Ukrainian state company Naftogaz says all the facilities of its gas transportation system are operating as usual so far and that natural gas is being supplied in the required amounts. Oil transportation pipelines are also operating as normal.
Oil Soars Over $100 as Traders Seek Safe Bets (7:38 a.m.)
Commodities markets surged, with Brent oil extending gains above $100 a barrel for the first time since 2014 while gold jumped as investors scrambled for a harbor amid the geopolitical upheaval.
As well as oil futures, LNG spot prices in Asia extended their advance. Russia is a key supplier of energy, with Europe relying on the nation for about a quarter of its oil supplies and a third of its gas.
Aluminum rallied to a record as the crisis adds risks in a market already seeing critical shortages. Wheat prices rose to the highest since 2012 and palm oil in Malaysia climbed to a record. And gold hit its highest level in more than a year.
EU Plans New Sanctions Package After Russian Attack (7:24 a.m.)
European Commission President Ursula von der Leyen “will outline a further sanctions package being finalized by the European Commission and which the Council will swiftly adopt,” the bloc said in a statement. The EU said it’s coordinating a response with the Group of Seven and NATO.
The EU and U.S. have prepared a package that includes restrictions on some of Russia’s biggest banks, such as Sberbank PJSC and VTB Bank PJSC, further curbs on Moscow’s ability to borrow, access financial markets and convert rubles into dollars. All 27 EU members have to sign off on it.
The EU and the Biden administration are also expected to introduce export controls on key technologies, such as semiconductors, aerospace, defense, and cyber surveillance technologies, plus equipment used in the energy sector. The measures are likely to target Russian oligarchs and state-owned enterprises.
Ukraine Leader in Flurry of Calls With Leaders (7:15 a.m.)
President Volodymyr Zelenskiy said on Twitter he is “building an anti-Putin coalition” after speaking with several world leaders including Biden, German Chancellor Olaf Scholz and the European Council President Charles Michel. He called for immediate sanctions on Russia, as well as defense and financial support for Ukraine.
Scholz Laments ‘Dark Day for Europe’ (6:50 a.m.)
The chancellor said the Russian attack is a “blatant violation of international law” that can’t be justified.
“This is a terrible day for Ukraine and a dark day for Europe,” Scholz said in an emailed statement. He was one of several leaders who held numerous talks with Putin, including traveling to Moscow, to seek a diplomatic solution. Berlin announced this week it was halting certification of the Nord Stream 2 gas pipeline from Russia to Germany.
First Central Bank Moves to Raise Rates (6:38 a.m.)
Kazakhstan raised its key interest rate to 13.5%, the highest since 2016, in the first emergency move by a central bank in a former Soviet country since Russia launched its attack on Ukraine. Such actions may be taken by other central banks in reaction to the security crisis.
Ukraine News Hits Stocks, Halts Moscow Exchange (6:57 a.m.)
Equities suffered heavy losses after Russia attacked targets across Ukraine, with S&P futures falling as much as 2.5% and Nasdaq contracts slumping almost 3%. Euro Stoxx futures matched that slide before the market open.
The Moscow Exchange halted trading in the ruble, stocks and futures, after the currency fell to its lowest level since 2016.
The ruble fell 3.5% to 84.1 per dollar, while Brent crude topped $100 for the first time since 2014. Gold rallied more than 1.5% to near $1,940.
Separatists in Eastern Ukraine Launch Offensive (6:56 a.m.)
Donetsk separatists launched attacks on Ukrainian positions along the entire line of contact, Interfax news service reported, citing the head of its militia, Eduard Basurin. Luhansk separatists said they were storming the city of Shchastia, which is held by Ukrainian forces, according to Interfax. There was no independent confirmation of those claims.
Putin’s move against Ukraine came after the Kremlin said the separatists had appealed to it for military help against Ukrainian forces. Kyiv has repeatedly denied it planned a military effort to try and retake breakaway areas.
Biden Tells Zelenskiy ‘Severe Sanctions’ Coming for Russia (6:13 a.m.)
Biden spoke with Zelenskiy by telephone and told him the U.S., its allies and partners “will be imposing severe sanctions on Russia,” the American president said in a statement.
Biden said the U.S. would continue to provide support and assistance to Ukraine and is people.
The U.S. and NATO had made clear beforehand that they would not deploy troops to Ukraine in the event it was attacked, though many countries have sent defensive weapons in.
Ukraine Imposes Martial Law as Russia Attacks: President (6:15 a.m.)
“Russia has attacked our military infrastructure and our border guards,” Zelenskiy said in a video posted on his telegram channel. “In many cities explosions were heard. We are imposing martial law across the entire territory of our state.”
The Ukrainian leader urged people to stay calm and remain at home if possible, saying “we are working, the army is working.”
Russia Says Targets Ukraine Military Infrastructure: Tass (5:59 a.m.)
Russia’s Defense Ministry said it’s using “high-precision” weapons to target Ukrainian military infrastructure, Tass reported.
Russian forces are using aircraft, artillery and missiles to destroy Ukraine’s air force, military airfields and anti-aircraft systems, the ministry said, in the first official Russian confirmation that its operations extend beyond Donbas.
The Defense Ministry said it’s not targeting cities and civilians in Ukraine have “nothing to fear,” Tass reported, even as explosions were reported across the country.
Russia Attacks Checkpoints, Kyiv Under Attack: Reports (5:49 a.m.)
Russia is attacking multiple checkpoints along its border with Ukraine, Interfax news agency reported, citing people with knowledge of the matter inside Ukraine’s border guard service.
The Interior Ministry warned Kyiv was under attack from ballistic missiles and urged citizens to go to shelters. The Defense Ministry denied an earlier report by Interfax that Russian assault troops were landing in the Black Sea port cities of Odessa and Mariupol.
“Russian troops are attacking peaceful Ukrainian cities from various directions, including temporarily occupied Donbas and Crimea, as well as the northeastern region,” Ukraine’s Foreign Ministry said in a statement.
Ukraine says Says Russia Launched ‘Full-Scale Invasion’ (5:07 a.m.)
Foreign Minister Dmytro Kuleba said in a tweet that Putin has “launched a full-scale invasion of Ukraine” and cities are under airstrikes.
“This is a war of aggression. Ukraine will defend itself and will win,” he said. Kuleba said the world can and must stop Putin, adding “the time to act is now.”
Putin Said U.S. Crossed Russia’s ‘Red Lines’ (5:01 a.m.)
Putin accused the U.S. of ignoring Russia’s demands for security guarantees and crossing its “red lines” with an expansion of NATO infrastructure east.
In his televised speech he said he aimed to demilitarize Ukraine. “Russia can’t exist with a constant threat from the territory of Ukraine,” he said.
Putin has long warned that Russia views expansion of the North Atlantic Treaty Organization in eastern Europe as a threat and he couldn’t tolerate Ukraine joining the alliance. NATO contends that it’s a defensive alliance and isn’t a threat to Russia.
Biden Says ‘World Will Hold Russia Accountable’ (4:42 a.m.)
Biden said in a statement that “Putin has chosen a premeditated war that will bring a catastrophic loss of life and human suffering,” adding Russia alone would be responsible for “the death and destruction this attack will bring.”
Biden said he would speak with Group of Seven counterparts Thursday and then address the American people to announce further punishments for Moscow. “The world will hold Russia accountable,” Biden said.
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