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Politics
UKRAINE UPDATE: U.S. STEPS UP MILITARY, DEFENSE ASSISTANCE
Von Der Leyen Warns China on Russia SanctionsBloomberg News
April 1, 2022, 6:44 AM GMTUpdated onApril 2, 2022, 5:15 AM GMT
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The U.S. defense department is sending $300 million in additional military and
medical assistance to Ukraine, including the Switchblade dive-bombing drone.
U.S. President Joe Biden’s administration will help allies move Soviet-made
tanks to Ukraine to support its defenses, the New York Times reported.
President Xi Jinping said China finds the situation in Ukraine “deeply
regrettable.” Xi held a virtual summit Friday with European Union leaders, who
said they expect Beijing at the very least not to interfere with sanctions
imposed on Russia. A call between Chinese President Xi and Ukrainian President
Volodymyr Zelenskiy is just a matter a time, according to a Chinese diplomat.
“China should, if not support, at least not interfere with our sanctions,”
European Commission President Ursula von der Leyen tells reporters after meeting
with Xi Jinping.
Source: Bloomberg
Russia said two Ukrainian helicopters made a rare strike across the border,
hitting an oil tank facility in the city of Belgorod. Zelenskiy, in an interview
with Fox News, declined to say whether he had ordered the raid.
(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)
KEY DEVELOPMENTS
* Gazprom Starts Telling Clients How to Pay for Gas in Rubles
* Russian Retreat From Chernobyl Opens Door for IAEA Monitors
* Putin Set for $321 Billion Windfall If Oil, Gas Keep Flowing
* Chinese Buyers Given Flexibility to Pay in Yuan for Russian Oil
* Russia Seeks New Ways to Sell Its $20-Billion-a-Year Gold Output
All times CET:
XI-ZELENSKIY CALL ‘A MATTER OF TIME,’ CHINA SAYS (4 A.M.)
“It’s always been on the agenda,” Wang Lutong, head of the Chinese Foreign
Ministry’s European department, said Saturday at a briefing in Beijing.
Xi has spoken to several leaders since the invasion, including Putin, but
Zelenskiy hasn’t been one of them. Xi may be reluctant to speak with Putin’s
wartime rival so soon after declaring a “no limits” partnership with the Russian
leader in early February.
When asked about Zelenskiy’s comment that China should be among the countries
acting as its security guarantor in any peace deal with Russia, Wang said the
topic wasn’t discussed at the summit with EU officials. “We’d have to study the
details of that agreement,” he said.
U.S. TO HELP MOVE SOVIET-MADE TANKS TO EAST (2:27 A.M.)
The White House will help allies move Soviet-made tanks to Ukraine to support
its defenses in the country’s eastern Donbas region, the New York Times
reported, citing an unidentified U.S. official.
The transfers will begin soon, the official told the Times while declining to
say how many tanks would be sent or from which countries they will come.
The tanks will give Ukraine the ability to conduct long-range artillery strikes
on Russian targets in Donbas, according to the report. The decision, which marks
the first time the U.S. has helped transfer tanks in the war, comes in response
to a request from Zelenskiy, the official told the newspaper.
The White House and the Defense Department did not immediately respond to
requests for comment.
U.S. ADDS 120 ENTITIES TO BLACKLIST (2:20 A.M.)
The U.S. Commerce Department on Friday added 120 entities in Russia and Belarus
involved in the defense, aerospace and maritime industries to a blacklist that
will restrict their ability to do business with American firms.
The additions to the entity list were intended to “degrade” those industries as
Russia continues its invasion of Ukraine, the department said in a statement.
“These parties are being effectively cut off from the inputs necessary to
sustain Putin’s war and shows that the United States has the capabilities to
detect, identify, and restrict parties in Russia, Belarus, or elsewhere that
seek to support that effort,” Commerce Secretary Gina Raimondo said in the
statement.
U.S. PROVIDING $300 MILLION IN MILITARY, MEDICAL EQUIPMENT (2 A.M.)
The Department of Defense said it will provide communications systems, medical
supplies and unmanned aerial systems including the Switchblade dive-bombing
drone. The new equipment brings the total U.S. commitment to more than $2.3
billion in security assistance, the agency said in a statement.
The Defense Department will start a contracting process to procure the new
equipment, rather than drawing down from U.S. defense stock. The Pentagon for
the first time has disclosed on record it is supplying the Switchblade. It’s
also sending the Puma, a hand-launched reconnaissance drone, and providing the
Ukrainian military access to commercial imagery likely to include Russian
military positions.
ZELENSKIY WANTS ADVANCED WEAPONS FROM U.S. (1 A.M.)
Zelenskiy called on President Joe Biden and other U.S. allies to provide Ukraine
with additional advanced weapons. In an interview with Fox News on Friday,
Zelenskiy added that a Western failure to swiftly provide such weapons would
call into question whether the U.S. is “playing games.”
“Just give us missiles, give us airplanes,” he said. If “you cannot give us F-18
or F-19 or whatever you have, give us the old Soviet planes. That’s all.”
Zelenskiy declined to say whether he had ordered the Ukrainian raid across the
Russian border.
U.S. CANCELS ICBM TEST ON RUSSIA TENSIONS, REUTERS SAYS (11:30 P.M.)
The U.S. military has canceled a test of its Minuteman III intercontinental
ballistic missile, after earlier delaying the test in order to lower nuclear
tensions with Russia, Reuters reported, citing the Air Force.
EVACUATIONS RISE BUT RED CROSS SAYS MARIUPOL BLOCKED (10:40 P.M.)
Residents from Mariupol and nearby towns arrive in Zaporizhzhia, Ukraine, on
April 1.
Photographer: Felipe Dana/AP Photo
Ukraine evacuated more than 6,200 people from combat zones on Friday, a larger
number than in recent days. But Deputy Prime Minister Iryna Vereshchuk said
buses intended to take more people out of Mariupol, the southern port that’s
seen some of the most intense fighting, are still unable to get there.
Russian forces “have been doing everything not to allow corridors to work,” she
said in a video address to Mariupol’s people. Ukraine has urged the U.S., China
and the Vatican to put pressure on Russian President Vladimir Putin over the
city’s evacuation, she said.
The International Committee of the Red Cross also said that its team had
attempted to facilitate a safe passage from Mariupol on Friday, but was forced
to withdraw and will make another attempt on Saturday.
OIL DROPS BELOW $100 AFTER BIG WEEKLY DECLINE (10:15 P.M.)
Crude futures in New York declined below $100 a barrel after posting the biggest
weekly decline in more than 10 years. U.S. allies said they would join the Biden
administration in releasing strategic reserves to counter the run-up in prices
triggered by the invasion of Ukraine and subsequent sanctions against Russia.
RUSSIA SAYS FIRE OUT AT BELGOROD (9:26 P.M.)
The Russian Emergency Ministry said the fire at the Belgorod oil depot has been
extinguished, Tass reports. The Belgorod mayor said on Telegram people living
near the facility can return to their homes.
Earlier Friday, Moscow said two Ukrainian military helicopters attacked the
facility, about 50 km (30 miles) north of the border.
RUSSIAN PULLOUT FROM CHERNOBYL COMPLETED, IAEA SAYS (7:44 P.M.)
All Russian forces have left the Chernobyl nuclear plant in Ukraine -- site of
the deadly 1986 meltdown -- and international monitors are preparing to go in,
the International Atomic Energy Agency said on Twitter.
Director General Rafael Mariano Grossi “intends to head an IAEA assistance and
support mission” to the plant “as soon as possible,” the agency said.
The Chernobyl Nuclear Power Plant in Pripyat, Ukraine.
U.K. CREATES SANCTIONS EXCEPTION FOR RUSSIA BOND PAYMENTS (7:24 P.M.)
The U.K. Treasury has approved a sanctions exception for the banks,
clearinghouses and other intermediaries that help funnel payments on Russia’s
international sovereign bonds to investors.
The British government published a notice outlining the exemption from its
Russia-related sanctions regime to allow for financial services enabling the
transfer of such payments. The measure applies to debt that was issued by the
Russian government before March 1, is effective from April 1 and is set to
expire June 30.
The banking sector is “fully committed” to implementing EU sanctions on Russia,
EU Financial Services Commissioner Mairead McGuinness says. She speaks to
Bloomberg’s Francine Lacqua.
Source: Bloomberg
EU LEADERS WARN CHINA ON RUSSIA SANCTIONS (4:13 P.M.)
“We expect China, if not supporting the sanctions, at least to do everything not
to interfere in any kind,” European Commission President Ursula von der Leyen
told reporters after the meeting with Xi. “On that point we were very clear.”
She added the EU expected China to use its influence on Russia to end the war.
Chinese Premier Li Keqiang said during the summit that Beijing has been
promoting peace talks on Ukraine in its own way, and is willing to play a
constructive role.
REFUGEES MAY BE ABLE TO SWAP HRYVNIAS INTO EUROS (2:15 P.M.)
Ukrainian refugees in the EU may soon be able to swap some of their banknotes
into euros and other currencies. The EU’s executive arm asked member states to
set up facilities that allow each person to exchange up to 10,000 hryvnia ($339)
free of charge at an official rate set by the Ukrainian central bank. Poland
started a similar initiative in March.
Many of the 4 million people who’ve fled Ukraine -- over half of them going
initially to Poland -- have had trouble swapping hryvnia for local currency
because banks haven’t been willing to take risks related to wild exchange-rate
swings.
RUSSIA’S CHIEF NEGOTIATOR SAYS TALKS HAVE RESUMED (12:55 P.M.)
Talks between Russia and Ukraine resumed on Friday via video conference,
Russia’s chief negotiator Vladimir Medinsky said on his Telegram channel, adding
his country’s stance on Donbas and Crimea is unchanged. Mykhailo Podolyak, an
adviser to the Ukrainian president’s chief of staff, confirmed that the
discussions are continuing.
GAZPROM STARTS GIVING DETAILS ON RUBLE PAYMENT PLAN (12:35 P.M.)
Russia’s Gazprom is starting to tell clients how to pay for their gas after
Putin said purchases from “unfriendly” nations including Europe would need to be
settled in rubles. Germany is still going over the details before coming to any
conclusions, government spokesman Wolfgang Buechner told reporters.
Meanwhile the Kremlin signaled that gas would keep flowing, and said payments
for April gas weren’t due until late in the month or early May.
Firefighters work at the site of fire at an oil depot in Belgorod region,
Russia, on April 1.
Source: Russian Emergency Ministry Press Service via AP Photo
— With assistance by Rosalind Mathieson
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