Putin wants “unfriendly” countries to pay for Russian gas in rubles
Story by Reuters
Russia will seek payment in rubles for natural gas sold to “unfriendly” countries, President Vladimir Putin said on Wednesday, and European gas prices soared on concerns the move would exacerbate the region’s energy crunch.
European nations and the United States have imposed heavy sanctions on Russia since Moscow sent troops into Ukraine on February 24. But Europe depends heavily on Russian gas for heating and power generation, and the European Union is split on whether to sanction Russia’s energy sector.
Putin’s message was clear: If you want our gas, buy our currency. It remained unclear whether Russia has the power to unilaterally change existing contracts agreed upon in euros.
The ruble briefly leapt after the shock announcement to a three-week high past 95 against the dollar. It pared gains but stayed well below 100, closing at 97.7 against the dollar, down more than 22% since February 24.
Some European wholesale gas prices were up to 30% higher on Wednesday. British and Dutch wholesale gas prices jumped.
Russian gas accounts for some 40% of Europe’s total consumption. EU gas imports from Russia this year have fluctuated between €200 million to €800 million ($880 million) a day.
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It’s midday in Ukraine. Here’s what we know
One month after Russia launched its invasion of Ukraine, its forces continued to be pushed back around the capital of Kyiv and took up defensive positions northwest of the capital, a US official said. On Wednesday evening, CNN teams on the ground saw a barrage of outgoing fire from the area.
Ukraine’s gains: Ukrainian forces have pushed Russian forces back on the frontlines around Kyiv, a senior US defense official told reporters Wednesday. Russian forces are about 55 kilometers (roughly 34 miles) away from Kyiv’s city center to the east, the official said. To the northwest of Kyiv’s city center, Russian forces are “digging in, and they are establishing defensive positions,” according to the official, and have not got any closer to Kyiv’s city center along this line.
Russia intensifies attacks in East: At the same time, the official said Russian forces are becoming more active in the eastern part of Ukraine in the Donbas area, saying they’ve “applied a lot more energy” in the Luhansk and Dontesk regions, the two areas the Kremlin declared as independent republics ahead of last month’s invasion.
Russian ship destroyed: A large Russian ship has been destroyed in the Russian-occupied port of Berdyansk, southeastern Ukraine, according to the Ukrainian Navy on Thursday. CNN could not confirm the Navy’s claim although social media videos appeared to show a very large fire with secondary explosions in the port.
Russian stocks partially reopen: Russia’s stock market opened for the first time in a month on Thursday as investors took part in a highly restricted trading session. The benchmark MOEX index gained as much as 10% in early trade in Moscow. Russian stocks last traded on February 25 after President Vladimir Putin’s invasion of Ukraine caused shares to plummet. In the weeks since Russian stocks stopped trading, sanctions imposed by the West have crushed the ruble and put the country’s economy into a tailspin.
Biden arrives at NATO summit: US President Joe Biden arrived in Brussels for emergency summits to respond to the war in Ukraine. The visit comes as the West continues to grapple with how to disrupt Russia’s invasion. According to White House press secretary Jen Psaki, Biden will “discuss ongoing deterrence and defense efforts” during the NATO summit and reaffirm the US commitment to its NATO allies.
Russia’s stock market reopens after month-long closure
From CNN’s Charles Riley
Russia’s stock market opened for the first time in a month on Thursday as investors took part in a highly restricted trading session.
The benchmark MOEX index gained as much as 10% in early trade in Moscow. Russia’s central bank has banned short sales, and foreign investors are not allowed to dump shares, prohibitions that could help support stocks.
Investors are able to trade 33 stocks during the limited session from 9:50 a.m. to 2:00 p.m. in Moscow. Blue chip stocks Gazprom, Lukoil, VTB Bank, Sberbank, Rusal and Rosneft are among the equities that are trading.
Russian stocks last traded on February 25 after President Vladimir Putin’s invasion of Ukraine caused shares to plummet. The MOEX index had lost roughly 35% of its value this year, while the RTS index — which is denominated in dollars — had plunged 42%.
In the weeks since Russian stocks stopped trading, sanctions imposed by the West have crushed the ruble and put the country’s economy into a tailspin. President Joe Biden is expected to announce additional sanctions during a trip to Europe this week.
Foreign investors are not allowed to sell shares on Thursday under new rules that ban brokers from executing sales on their behalf.
CNN’s Kevin Liptak contributed reporting to this post.
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Biden arrives at NATO summit in Brussels
From Allie Malloy
US President Joe Biden has arrived in Brussels for emergency summits to respond to the war in Ukraine, a consequential visit that comes as the West continues to grapple with how to disrupt Russia’s invasion.
Biden heads to a brief meeting with NATO Secretary General Jens Stoltenberg and takes a family photo with other NATO leaders, greeting UK Prime Minister Boris Johnson, Turkish President Recep Tayyip Erdoğan, and French President Emmanuel Macron, among others.
A European Council and G7 meeting will also take place on Thursday.
Some background: Biden is set to unveil sanctions on Russian political figures and oligarchs during the summits, the White House has said, and ahead of Thursday’s key meetings in Brussels, the US government also formally declared Russia’s military has committed war crimes in Ukraine.
According to White House press secretary Jen Psaki, Biden will “discuss ongoing deterrence and defense efforts” during the NATO summit and reaffirm the US’ commitment to its NATO allies.
Russia claims control of Ukrainian city, state media reports
From CNN’s Tim Lister
The Russian military claimed to have taken control of the Ukrainian city of Izyum on Thursday, state media outlet RIA-Novosti reported citing the Russian Ministry of Defense.
However, Ukraine denied the claim with Lyudmyla Dolhonovska, an adviser to Ukraine Commander-in-Chief Valerii Zaluzhnyi, telling CNN that the battle for Izyum is “still going on.”
Izyum lies on the main road between Kharkiv and the Russian-backed separatist areas of Luhansk and Donetsk in eastern Ukraine.
Some background: Izyum has been cut off from nearly all communications since intense battles between Russian and Ukrainian forces broke out there last week.
Now, the first videos and images have emerged from the city, showing widespread destruction, charred and bombed-out buildings, and bodies left lying in the streets.
Russian stocks open higher as trading resumes in partial re-opening of Moscow stock exchange
From CNN’s Robert North
Russia’s MOEX stock index opened higher after partially reopening for the first time in almost a month.
In the first few minutes, the index rose more than 10%.
The Moscow Stock Exchange last traded on Feb. 25, after shares plunged following the invasion of Ukraine and the subsequent sanctions imposed on Russia.
The MOEX index had lost roughly 35% of its value this year, while the RTS index — which is denominated in dollars — plunged 42%.
What is reopening:
- The Central Bank said the exchange would partially re-open for trading in Russian stocks on Thursday.
- The Bank of Russia said trading in 33 stocks would take place between 9.50 a.m. and 2 p.m. local time. (It’s currently 10:42 a.m. in Moscow.)
- The Russian equities allowed to resume trading include big companies such as Gazprom, Lukoil, VTB Bank, Sberbank, Rusal and Rosneft.
- The central bank said there will be a ban on short shelling for these shares and it blocked foreign investors from selling their shares.
- It has also brought in currency controls, limiting the amount of foreign currency people can take out of Russia.
Some context: The White House criticized the move to reopen the stock market, calling it a “charade” and a “Potemkin market opening” that will obscure the dire effects of Western economic sanctions.
Half of all Ukrainian kids have been displaced since the Russian invasion began, UNICEF says
From CNN’s Mohammed Tawfeeq in Lviv
One in every two Ukrainian children has been displaced since Russia began its invasion on Feb. 24, according to the UN Children’s Fund.
“It’s mind-boggling,” UNICEF spokesperson James Elder told CNN. “Since the start of the war a month ago, out of every boy and girl in the country, one out of two now has had to flee their homes.”
“It’s a situation we’ve not seen before, not in living memory, and it’s almost impossible to deal with,” Elder said.
Elder said UNICEF is trying to get blankets, water purification tablets, generators, medical supplies and obstetric kits for mothers giving birth into the country.
“Unless the war stops, unless the indiscriminate attacks stop, we’re going to see more children wrenched from their homes and the bombardments,” he said.
Russian ship destroyed in the occupied port of Berdyansk, Ukrainian Navy says
From CNN’s Tim Lister in Lviv
A large Russian ship has been destroyed in the Russian-occupied port of Berdyansk, in southeastern Ukraine, according to the Ukrainian Navy on Thursday.
CNN could not confirm the Navy’s claim although social media videos appeared to show a very large fire with secondary explosions in the port.
Some context: Berdyansk sits on the Azov Sea and is roughly 45 miles (70 kilometers) southwest of Mariupol. The city has a small naval base and a population of about 100,000. Russian military troops first occupied Berdyansk government buildings on Feb. 27.
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White House calls Russia stock market reopening a “charade”
From CNN’s Kevin Liptak
The White House said Russia’s planned partial reopening of its stock exchange amounts to a “Potemkin market opening” that will obscure the dire effects of Western economic sanctions.
(The original term “Potemkin Village” derives from a story dating back to 18th-century Russia, suggesting that an artificial place can be built to disguise or conceal the true — and often less desirable — identity of the original.)
“What we’re seeing is a charade,” deputy national security adviser Daleep Singh wrote in a statement.
“After keeping its markets closed for nearly a month, Russia announced it will only allow 15% of listed shares to trade, foreigners are prohibited from selling their shares, and short selling in general has been banned. Meanwhile, Russia has made clear they are going to pour government resources into artificially propping up the shares of companies that are trading.”
Singh said it was “not a real market and not a sustainable model — which only underscores Russia’s isolation from the global financial system.”
What is reopening:
- The Moscow Stock Exchange will partially re-open for trading in Russian stocks on Thursday, Russia’s Central Bank announced.
- The Bank of Russia said trading in 33 stocks will resume between 9.50 a.m. and 2 p.m. local time.
- The Russian equities allowed to resume trading include big companies such as Gazprom, Lukoil, VTB Bank, Sberbank, Rusal and Rosneft.
- The central bank said there will be a ban applied on short shelling for these shares.