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Putin Makes Address; Separatist Recognition: Ukraine Update

(Bloomberg) -- Russian President Vladimir Putin plans to officially recognize separatists in eastern Ukraine, the Kremlin announced, a move that would likely torpedo European-mediated peace talks and further escalate tensions with the West. It added the Russian leader had informed his counterparts in Germany and France of his decision, saying they had expressed disappointment at the move.Most Read from BloombergKremlin Cautious on Prospect of Biden-Putin Summit Amid TensionsPutin Makes Address; Read More...

(Bloomberg) — Russian President Vladimir Putin plans to officially recognize separatists in eastern Ukraine, the Kremlin announced, a move that would likely torpedo European-mediated peace talks and further escalate tensions with the West. It added the Russian leader had informed his counterparts in Germany and France of his decision, saying they had expressed disappointment at the move.

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Putin has begun a televised address, following a meeting earlier Monday of his Security Council. It comes against a backdrop of heightened concern over Russia’s sustained troop buildup near Ukraine, even as Moscow continues to deny it plans to invade.

The diplomatic flurry continues to try and avert a potential conflict, although those efforts suffered a setback on Monday as Moscow said there were “no concrete plans” for a summit between Putin and U.S. President Joe Biden, throwing into question the fate of a French proposal publicized hours earlier. Biden is meeting with his national security team and being regularly briefed on the latest developments, a White House official said.

German Chancellor Olaf Scholz condemned the planned recognition of the territories, which is in stark contrast to the push by Germany and France to implement the Minsk peace accords aimed at ending a separatist conflict that’s smoldered since 2014.

Key Developments

  • Kremlin Cautious on Prospect of Biden-Putin Summit Amid Tensions

  • Summit Confusion Keeps Ball in Putin’s Court: Balance of Power

  • Stocks Retreat on Ukraine Tension, Ruble Weakens: Markets Wrap

  • U.S. Warns That Russia May Target Multiple Cities in Ukraine

  • Explainer: Why Minsk Accords Are Murky Path for Ukraine Peace

All times CET:

EU Warns on Russian Cyber Actions in Any Ukraine Attack (7:26 p.m.)

The European Union warned it is highly likely Russia would launch cyberattacks to interfere with electronic payments and online services systems if it launches a military attack against Ukraine.

The EU’s computer emergency response team warned the bloc’s institutions that cyberattacks could also be aimed at damaging critical infrastructure, as well as targeting and manipulating news sources. The aim of the operations would be to hamper financial transactions, impede access to key services and sow divisions among the population.

The internal document seen by Bloomberg said Russia is unlikely to attempt to take down Ukraine’s entire Internet. Moscow has denied it was behind recent cyberattacks on Ukraine.

EU Yet to Agree Potential Sanctions for Separatist Recognition (5:15 p.m.)

Several EU leaders had already called for sanctions should Putin opt to recognize the separatist territories in eastern Ukraine. Still, countries have yet to agree on what sanctions would be imposed in such circumstances, according to diplomats and officials who asked not to be identified discussing confidential matters.

The EU usually responds to violations of international rule of law and norms with strong penalties, a diplomat said when asked about the recognition issue. But the bloc is still split on what specific actions short of a full military attack on Ukraine should trigger sanctions on Russia, officials said.

“If there is an annexation, there will be sanctions,” EU foreign policy chief Josep Borrell told reporters after a meeting of foreign ministers in Brussels. “And if there is a recognition, I will put the sanctions on the table and the ministers will decide. I will certainly put on the table the sanctions package that has been prepared if such a thing happens.”

Putin Promises Decision on Donbas Recognition Monday (4:43 p.m.)

Putin said he’d make a final call later Monday after a televised meeting of the Security Council showed member after member arguing in favor of recognizing two self-proclaimed republics in eastern Ukraine’s Donbas region. Only a few suggested giving the West more time to address Russia’s security demands.

When Sergei Naryshkin, the head of Russia’s Foreign Intelligence Service, suggested annexing the territories, Putin corrected him and said that wasn’t on the agenda, a sign they could remain frozen conflicts similar to two largely unrecognized Russian protectorates that split from Georgia after a 2008 war.

“We see the threats and blackmail from our Western colleagues, we understand what such a step entails, but we also understand the situation that has developed,” Putin said at the start of the meeting.

The leaders of the so-called Donetsk People’s Republic and Luhansk People’s Republic earlier appealed to Putin to recognize their independence from Ukraine and conclude a treaty on defense.

Damage in Eastern Ukraine as Tensions Escalate (4:23 p.m.)

A local natural gas treatment plant in the Luhansk region was damaged as cease-fire violations along the line of contact with separatist forces surge. The facility, which is not connected to a major network transiting Russian gas to Europe, was shelled by mortar fire from separatist territory and a village cut off from its gas supply, according to state-run producer UkrGasVydobuvannya JSC.

Baltic Ministers Call for Sanctions Against Russia (3:20 p.m.)

“Yes, indeed I do believe the time has come,” Latvian Foreign Minister Edgars Rinkevics said on Bloomberg TV.

“If we wait for a very specific trigger, Russia will do everything not to provide the trigger” while stoking tensions in eastern Ukraine, Lithuania’s Foreign Minister Gabrielius Landsbergis told journalists in Brussels separately.

Ukraine has been calling for sanctions, but most of Europe has said they would only come in response to an invasion.

Ukraine Denies Attack on Russian Forces (3:00 p.m.)

Foreign minister Dmytro Kuleba denied Russian allegations that Kyiv sent “saboteurs” and armed personal carriers into Russia’s Rostov region early Monday.

Russia Wants Details on Any Putin-Biden Summit (2:30 p.m.)

“President Putin explained very clearly that we’re not against summits or meetings, but before getting together, especially in such a tense atmosphere, it’s important to understand what these summits would result in,” Foreign Minister Sergei Lavrov told reporters in Moscow.

Earlier, Putin’s spokesman Dmitry Peskov, said there are no “concrete plans” yet for a summit between Putin and Biden. The French and Russian leaders agreed to pursue dialogue at the level of foreign ministers, he said on a conference call with reporters.

Russia Says It Killed 5 ‘Saboteurs’ From Ukraine (2:15 p.m.)

Russian forces killed five “saboteurs” and destroyed two Ukrainian armored personnel carriers that crossed into Russian territory in the Rostov region early Monday, state-run Tass news service reported, citing a statement from the Southern Military District.

The alleged strike comes as tensions have escalated between the Ukrainian army and separatists in the two breakaway republics in the east, with both sides accusing the other of increased shelling in recent days.

Unlike the firing along the contact line between Ukraine and the separatists, Russia alleged this incident took place over the international border.

Ukraine Says Russian-Backed Separatists Shelling Villages (12:48 p.m.)

Vrubivka and Shchastya, in Ukraine’s eastern Luhansk region, are being shelled by Russian-backed separatists, regional government head Serhiy Hayday said on Facebook. Vrubivka has seen electricity and gas supplies cut while Shchastya is without power or water, he said. Meanwhile officials in Kyiv said shelling on Monday by separatists killed two troops and one civilian, and wounded four soldiers.

Separatists in turn accused Ukrainian forces of what they said were massive attacks with artillery and other weapons. Both sides have traded accusations of violence amid a surge in violations along the contact line in Ukraine’s Donbas over the past week.

Sanctions on Russian Gas Would Increase Price Volatility: Shell (11:59 a.m.)

If the West implements sanctions on Russian natural gas exports there will “undoubtedly be volatility” in prices, Wael Sawan, Shell’s head of integrated gas, renewables and energy solutions said on a media call.

Shell would look to supply Europe “as and when we can,” but “there is an incredibly tight supply-demand market at the moment, so those cargoes aren’t freely available,” Sawan said.

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