(Bloomberg) — President Volodymyr Zelenskiy posted another video of himself on the streets of the capital, Kyiv, as Ukraine forces engaged in street battles against Russian troops on the third day of an invasion ordered by President Vladimir Putin. “We won’t give up any arms. We will defend our country,” he said.
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There was no further update after Ukraine said late Friday it was in discussions with Russia on the timing and location for potential talks among officials. Any meeting would likely struggle to find common ground on the question of “neutrality” for Ukraine, which has sought to join NATO and draw closer to Europe.
The U.S. is seriously considering whether to seek Russia’s expulsion from the SWIFT financial messaging system. Allies in Europe are warming to the idea of imposing the penalty, which seemed unlikely just days ago, said people familiar with the matter. U.S. President Joe Biden authorized the State Department to provide $600 million in immediate aid to Ukraine, including $350 million in military funding.
Zelenskiy said he spoke with French President Emmanuel Macron and “weapons and equipment from our partners are on the way to Ukraine.”
Key Developments
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U.S. Puts Banning Russia From SWIFT Global System Back in Play
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Ukraine Claims to Rebuff Russian Forces as Nations Condemn Putin
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War in Ukraine Spurs Rush for Gas and Cash in Jittery Neighbors
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War in World’s Breadbasket Leaves Big Buyers Hunting for Grain
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Ukraine’s TV Comedian President Finds His Role as Wartime Leader
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China Distances Itself From Russia, Calls for Halt to Violence
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Russia Invaded Ukraine and Europe Bought More Gas. Here’s Why
All times CET
Russian Bank VTB’s London Foothold Hit by Sanctions (8:22 a.m.)
The sanctions leveled by the U.K. against Russia’s second-largest bank took an immediate toll this week, potentially dealing a knockout blow to its slowly fading plans to be a major player in the City of London.
The London Stock Exchange suspended VTB’s membership on Friday, meaning it can no longer trade there. The bank has also lost access to the London Bullion Market Association, where it traded precious metals along with its Russian peer, Sovcombank.
VTB’s London decline has been under way for years, as the bank shifted more of its operations to Frankfurt and to Zug, Switzerland. Now other lenders are racing to cut ties with VTB after the U.K. Treasury froze its assets, and some competitors have urged British officials to issue a wind-up order so they can unravel their ties with the Russian bank.
Ukraine, Russia Each Issue Updates on Fighting (7:55 a.m.)
Russia’s Defense Ministry said it struck various sites overnight, including using what it called long-range cruise missiles, hitting 14 military airfields, 19 communications stations and 24 anti-aircraft complexes, Interfax reported. It added Russian forces had taken control of the city of Melitopol in the southeast. The ministry said Russia had downed 7 military planes, 7 helicopters and 9 drones, Interfax reported.
Ukraine’s military said on Facebook that a missile had shot down a Russian helicopter and a Su-25 military jet, and that transport aircraft had been destroyed. It said there was continued fighting in Kyiv. The mayor of southern city of Kherson said Ukrainian troops had retaken control.
None of the reports could be independently verified.
Facebook Bans Russian State Media From Running Ads (5 a.m.)
Facebook parent company Meta Platforms Inc. is prohibiting Russian state media from running advertisements or monetizing on its platform anywhere in the world, Nathaniel Gleicher, Meta’s head of security policy, said on Twitter. The changes have already begun rolling out and will continue into the weekend, he added.
Meta is “closely monitoring” the situation in Ukraine, he said.
Russia has cracked down on foreign Internet companies in recent years and last year limited access to Twitter for a time. Alphabet’s Google and Meta face record fines for failing to take down content banned in Russia.
Expelling Russia From SWIFT Back on Table (4:35 a.m.)
Biden administration officials are now debating whether to push for a directive from the European Union needed to ban Russia from SWIFT, though a U.S. and EU decision is not imminent, according to people familiar with the situation. Officials are discussing the matter with the Federal Reserve, which sits on SWIFT’s oversight body, two of the people said. Another person said talks have commenced with the European Commission.
The discussions by the U.S. mark a change in course after Biden said he was holding off because European allies had voiced concerns over the risk such a move posed to their economies.
Russia, Ukraine’s Credit Ratings Cut by S&P (3 a.m.)
Russia’s long-term foreign currency debt rating was cut by S&P Global Ratings to BB+, one level below investment grade. Ukraine’s rating was downgraded one notch to B-.
Russia’s military assault poses risks to Ukraine’s economic growth, financial stability and public finances, while the sanctions imposed on Russia could have significant effects on the economy, trade and financial stability, S&P said.
Earlier, both Russia and Ukraine had their ratings placed on review for downgrade by Moody’s Investors Service, and Fitch Ratings slashed Ukraine’s score.
Russian Troops Attack Heating, Electricity Unit Near Kyiv (2 a.m.)
Ukraine says Russian troops are attacking a heating and electricity unit on the northeastern outskirts of Kyiv.
“Right now, in some areas of the capital, shots and explosions can be heard,” Kyiv Mayor Vitali Klitschko said in a video address earlier. “Ukraine’s military are neutralizing groups of Russian saboteurs. The enemy is already in Kyiv. We must hold the capital, which the enemy wants bring to its knees and destroy.”
Ukrainian forces are still in control of Kyiv, the Defense Ministry said. Another battle is underway at the Vasylkiv airport, 30 kilometers (19 miles) from the capital.
U.S. Plans Sanctions on Russian Wealth Fund (11:55 p.m.)
The Treasury Department will impose full blocking sanctions on the Russian Direct Investment Fund, which is intended “to attract capital into the Russian economy in high-growth sectors,” White House press secretary Jen Psaki said in a tweet.
The sovereign wealth fund played a role in marketing Russia’s Sputnik coronavirus vaccines. It had previously been sanctioned by the Obama administration over its ties to Vnesheconombank in a tranche of punishments linked to the 2014 annexation of Crimea. The fund has turned away from Western investment so the impact of the new sanctions is expected to be minimal.
Pentagon Vows to Defend ‘Every Inch’ of NATO Territory (10:50 p.m.)
Saying it’s not clear whether Putin has designs on territory beyond Ukraine, Pentagon spokesman John Kirby told reporters Friday, “We are going to defend every inch of NATO territory.”
He said U.S. military units already placed on alert will mobilize as needed by NATO after the alliance’s rapid-response force was activated on Friday. The Defense Department has put about 10,000 to 12,000 troops on prepare-to-deploy orders, Kirby said.
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