US Secretary of State Antony Blinken accused Russia of invading Ukraine to exacerbate global hunger and said food insecurity around the world was reaching historic levels due to President Vladimir Putin’s growing grain markets.
Talks between Russia and Turkey showed no signs of progress with an agreement to loosen the Kremlin’s blockade of Ukrainian grain shipments, which has contributed to the warnings of a global food supply crisis. A UN expert said it could take months to remove mines near Ukrainian ports.
An explosion that will keep a large U.S. liquefied natural gas export terminal closed for several weeks will cut vital supplies to Europe, which is already struggling with uncertainty over the flow of fuel from Russia.
Key developments
(All times in CET)
- Sky-high oil prices are forcing Biden to engage with annihilated Saudis
- Fire at Key US LNG export terminal is a blow to gas-hungry Europe
- Bank of Russia ran ruble rally as the war left few other options
- Shock of War threatens lasting impact on global economy
- Russia is in the topsy-turvy world, with Belarus topping German exports
- Ukraine’s $ 27 million war bond sales are the weakest ever
Fire at LNG export terminal a blow for Europe (04:25)
The Freeport LNG export facility in Texas will remain closed for at least three weeks after a fire Wednesday, a company spokesman said. Nearly one-fifth of all overseas shipments of gas from the United States went through the terminal last month.
The United States shipped nearly three-quarters of its LNG to Europe in the first four months of the year. Some European countries have tried to get rid of Russian gas due to the invasion of Ukraine, but remain dependent on it in the short term.
Blinken blames Russia for exacerbating hunger (23:38)
Blinken said the United States is working to get grain and other goods out of Ukraine and overcome Russia’s blockade so that the raw materials can reach markets and people, which could help lower prices.
About 200 million people worldwide are “severely food insecure,” which is twice as many as three years ago, Blinken said at a U.S. Chamber of Commerce event at a meeting of Latin American leaders in Los Angeles.
Zelenskiy says the battle of Sievierodonetsk is the hardest (22:07)
Zelenskiy said the battle for the Luhansk city of Sievierodonetsk was “the epicenter of the confrontation in the Donbas”.
Russian troops have been trying for weeks to capture Sievierodonetsk, a city with a population of more than 100,000 before the invasion, against Ukrainian counterattacks. About 15,000 people are left in the city, and Russian troops control a significant portion, local authorities say.
“It’s a very brutal battle, a very difficult battle,” Zelenskiy said in his daily video speech. “It simply came to our notice then. In many ways, the fate of our Donbas is being decided there. ‘
Demining ports can take months, says UN agency (19:33)
Removal of sea mines near Ukraine’s ports could take months, and hundreds of seafarers remain stranded in the region after Russia’s invasion of the country, according to the UN agency responsible for ship safety.
“Even if the ports wanted to reopen tomorrow, it would take some time before ships could enter or sail,” Peter Adams, special adviser on maritime safety at the International Maritime Organization, said in an interview. “Complete removal of offshore mines in the port areas would take several months.”
Russian ships have blocked Ukraine’s access to the Black Sea, essentially stopping seaborne exports of staples from grain to chicken and exacerbating a global food crisis. Moscow has denied responsibility for the disturbance and accuses Ukraine of refusing to remove mines that protect its ports from possible Russian attacks. Ukraine has demanded security guarantees before removing the mines.
Erdogan holds on to Hard Line in Sweden and Finland (18:23)
Turkish President Recep Tayyip Erdogan signaled no softening in his stance on NATO membership for Sweden and Finland, again accusing the two nations of being hotbeds of terrorism for supporting members of a Kurdish group, which he describes as a threat.
“As long as terrorist leaders are interviewed on Swedish state television, we can not let them join NATO. The same goes for Finland, “said Erdogan in Ankara.
Zelenskiy urges companies to buy war bonds (17:46)
President Zelenskiy urged companies, including foreign companies, to invest in Ukraine, including by buying government “war” bonds.
“Even now, in a full-scale war, we are showing absolutely diligent service of our debt,” he told an investment conference via video link. War bonds are one of the most important instruments the Ukrainian government uses to raise money to cover a budget deficit that the war has caused to burst from lost revenue and additional costs.
Eastern European stocks among the world’s worst at war (17:46)
Proximity to war in neighboring Ukraine makes shares in Budapest and Warsaw some of the world’s worst results, with local factors increasing losses.
EU Task Force to Investigate Tax on Sanctioned Russians (16:39)
The European Union has set up a task force to investigate tax issues for Russians and Belarusians, which is sanctioned by the bloc.
The task force, made up of tax officials from the bloc’s 27 members, is to “detect possible tax crimes and recover unpaid taxes” related to sanctioned individuals and companies, and also act as a watchdog to ensure intermediaries comply with the ban on offering financial and tax. services for sanctioned persons, said the European Commission.
Germany strengthens NATO force in Lithuania (16:25)
Germany will send another 500 troops to Lithuania and increase its military presence there to 1,500 as part of a push to strengthen NATO’s eastern flank, according to people familiar with the plan.
The Baltic nations of Lithuania, Estonia and Latvia have made urgent requests for more troops to counter a potential Russian attack following the country’s invasion of Ukraine. The German move sets the stage for a broader decision by leaders of the North Atlantic Treaty Organization at a summit in Madrid later this month to expand the alliance’s military presence in Eastern Europe.
Microsoft significantly pairs back Russian operations (15:51)
Microsoft is significantly reducing its business in Russia and joining the list of prominent technology companies that are cutting back or leaving the country.
The company will continue to meet existing contractual obligations and keep a suspension of new sales in place, while more than 400 employees will be affected, it said in a statement.
Ukrainians encourage Polish fuel sales (15:50)
Poland’s largest oil company has seen fuel sales rise by 10% at its petrol stations in recent months after the arrival of Ukrainian refugees caused an increase in demand.
The refinery PKN Orlen SA estimates that there are about 1 million extra Ukrainian cars in the country with 38 million people – the main reason behind a sudden increase in sales.
Ukraine rejects any peace deal with frozen conflict (14:39)
Ukraine does not need a peace agreement that will freeze the current conflict for years and does not take into account the interests of the country, said Foreign Minister Dmytro Kuleba, adding that Kiev must be part of any negotiations.
“No one will be able to agree on anything behind our backs,” Kuleba said. He added: “Ukraine does not need a Minsk-3,” referring to the 2014 and 2015 Minsk ceasefire agreements that failed to end hostilities with Russian-backed separatists in Ukraine’s eastern Donbas region.
Ukraine will buy Iron Dome air defense, says the report (14:02)
Ukraine wants to buy Israel’s Iron Dome air defense systems, Jerusalem Post reported, citing Ukrainian Ambassador Yevhen Korniychuk.
Kyiv also called on Israel to sign the transfer of Spike SR-controlled anti-tank missile systems from Germany, Posten reported. The United States has given permission for Germany to transfer Spike missiles to Ukraine, but Israel has so far rejected the request, the ambassador was quoted as saying.
Russians flock to European Court of Justice to overturn sanctions (12:16 p.m.)
Russian billionaires hit by sanctions over Putin’s invasion of Ukraine are flocking to EU courts in an attempt to escape the bloc’s target list of rich individuals. History shows that their chances of lasting success are slim.
About 20 appeals from some of Russia’s richest tycoons or their family members have already been filed since the EU began imposing retaliatory measures in February.
Shock of War threatens lasting impact on global economy (12:01 pm)
The world economy will pay a “hard price” for the war in Ukraine, one that includes weaker growth, stronger inflation and potentially long-term damage to supply chains, the OECD club of rich nations said.
The organization lowered its outlook for global growth this year to 3% from the 4.5% it predicted in December, doubling its inflation projection to almost 9% for its 38 member countries, according to forecasts published in Paris.
Talks in Turkey on grain shipments without progress (11.45)
Turkey and Russia showed no signs of progress with an agreement to unblock shipments of Ukrainian grain. Zelenskiy, who said that Ukraine was not invited to the meeting in Ankara, agreed in a telephone conversation with German Chancellor Olaf Scholz that everything must be done to facilitate the export of grain, especially by sea.
Turkish Foreign Minister Mevlut Cavusoglu said Ukraine had shown willingness to guide ships safely through the minefields, but there was no immediate confirmation of that from Kiev.
Ukraine has said it is not convinced by Russia’s assurances that it will not take advantage of demining to attack the ports, citing Moscow’s public statements before the invasion that it had no plans to attack. .
Ukraine plays Down Grains Corridor Hope (09:07)
Ukraine is working with partners to establish a humanitarian corridor for grain shipments, but it is too early to talk about an agreement, Agriculture Minister Mykola Solskyi told a Turkish newspaper, warning that failure to open up exports from his nation will lead to “catastrophic” global prices rising.
Although it is too early to talk about any results regarding these efforts, Solskyi said Ukraine remained in touch with its trading partners and the UN about the possibility.
Russian imports from Belarus Top German trade (09:01)
Russian imports in April from Belarus, a Kremlin ally used to help stage the invasion, plunged Germany for the first time, an economy more than 60 times larger, according to a Bloomberg analysis of the latest data.
Sales to Russia from trading partners, which together accounted for almost half of its imports in 2021, fell by about 40% in April compared to a year earlier, Bloomberg calculations show. Even those like China, which has not joined the United States and its allies in imposing sanctions, are cutting back on shipments of goods.
Fight for Sievierodonetsk Goes On (8:43 am)
Ukrainian troops held back the Russian attack in Sievierodonetsk while fighting in the city and in the villages south of it continues, the General Staff of the Ukrainian Armed Forces said.
The city and its surrounding area have experienced fierce fighting in recent weeks as they hold out against Russian forces. Russia says its military has occupied 97% of Luhansk, one of the two regions made up of the Donbas, which is the focus of Putin’s war.
© 2022 Bloomberg
