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Ukraine Update: U.S. Officials Wary of Putin’s New Commander

(Bloomberg) -- Most Read from BloombergUkraine Update: Johnson Meets Zelenskiy in Kyiv, Pledges SupportNations Eye Modern Arms for Ukraine as Soviet-Era Stocks DwindleChina Unhappy With U.S. Virus ‘Accusation’ as Covid SpreadsElizabeth Holmes Prosecutors Push Back on Her Bid for New TrialUkraine Update: Sanctions Against Putin’s Daughters, IMF AccountThe EU’s military committee met on Sunday to discuss the next phase of the war in Ukraine, in which Russia is expected to push for control of easte Read More...

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The EU’s military committee met on Sunday to discuss the next phase of the war in Ukraine, in which Russia is expected to push for control of eastern areas. Fighting continues around the southern city of Mariupol, where air strikes have been targeted at the city center. Mariupol remains in Ukrainian hands after a month-long siege. Russia renewed missile attacks on the Dnipro airport.

U.S. efforts are under way to get more weapons to Ukraine, said National Security Adviser Jake Sullivan. U.K. Prime Minister Boris Johnson made a surprise visit to Kyiv to meet with President Volodymyr Zelenskiy on Saturday. More foreign leaders are expected to make the trip.

A global pledging campaign with some celebrity help raised 10.1 billion euros to help those displaced by the war. Russia said YouTube had blocked its Duma-TV channel, which shows parliamentary debates and other political content. Moscow is boosting an economic stability fund and will finance it with oil and gas revenues, which continue to flow.

(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)

Key Developments

  • Russia’s War in Ukraine: Key Events and How It’s Unfolding

  • Celebrity-Backed Ukraine Campaign Raises $11 Billion for Aid

  • Half of Harvests in Crop Giant Ukraine Could Be Wiped Out by War

  • Rising Food Costs Push Arab World’s Vulnerable to Breaking Point

  • Russia’s Invasion Supercharges Push to Make a New Green Fuel

  • Russia’s First Default in a Century Looks All But Inevitable Now

All times CET:

U.S. Officials Wary of Putin’s New Commander in Ukraine (5:37 p.m.)

Russia’s new military commander in Ukraine will probably mean “a continuation of what we have already seen on the ground,” said White House press secretary Jen Psaki

Psaki was asked about General Alexander Dvornikov, leader of the Russia’s Southern Military District, who’s been tapped to run the overall war effort in Ukraine. He notably oversaw Russian forces in Syria in 2015 and 2016.

“This particular general has a resume that includes a brutality against civilians in other theaters, in Syria. And we can expect more of the same,” U.S. National Security Adviser Jake Sullivan said on CNN. “This general will just be another author of crimes and brutality against Ukrainian civilians.”

U.S. in ‘Game Plan’ for More Weapons for Ukraine (3:00 p.m.)

Efforts to supply arms to Ukraine as Russian forces regroup in the east include “looking at systems that would require some training” for Ukrainian troops outside the country, National Security Adviser Jake Sullivan told CBS on Sunday.

Nations Eye Modern Arms for Ukraine as Soviet-Era Stocks Dwindle

Sullivan said he and Mark Milley, chairman of the Joint Chiefs of Staff, “worked through a game plan” for delivering more weapons from the U.S. or its allies during a call last week with President Volodymyr Zelenskiy. “Some of that’s been delivered, some of it’s on the way and some of it we’re still working to source,” Sullivan said.

Putin, Belarus’s Lukashenko to Meet Tuesday (2:08 p.m.)

Vladimir Putin and Belarus leader Alexander Lukashenko will meet Tuesday at the Vostochny Cosmodrome in eastern Russia, Interfax reported. The pair are expected to discuss Lukashenko’s hopes of being part of negotiations with Ukraine.

It’s a rare foray out of the Moscow region for Putin since Russia’s invasion of Ukraine on Feb. 24.

Zelenskiy, Germany’s Scholz Don’t Mention Energy in Readouts (1:47 p.m.)

Volodymyr Zelenskiy spoke by phone with German Chancellor Olaf Scholz on Sunday, with the talks said to focus on prosecution of Russian war crimes and financial support for Kyiv.

A readout from the German government and a Twitter post from Zelenskiy make no reference to any discussion about Germany’s energy purchases from Russia.

Kyiv has accused Germany of financing Moscow’s war machine with its long-standing reluctance to stop buying Russian natural gas and coal. Berlin is looking to wean itself off Russian gas over time.

Germany Says VTB No Longer Controls European Unit (12:50 p.m.)

VTB Bank PJSC, Russia’s second-largest lender, no longer controls its Frankfurt-based subsidiary VTB Bank Europe SE after the European Union’s latest round of sanctions.

Germany’s Federal Financial Supervisory Authority BaFin has prohibited VTB Bank Europe’s management from following instructions from its parent, the regulator said in a statement Sunday.

Bloomberg News reported last month that VTB Bank Europe has been put up for sale, with German regulators backing the plan as they seek to avoid a messy unraveling.

Anti-Ship Missiles Will Help Defend Odesa, Zelenskiy Aide Says (1:34 p.m.)

The missiles, part of the latest U.K. military aid, will be crucial as Russia presses its assault on southern coastal cities, including Odesa, said Ihor Zhovkva, an adviser to Ukraine’s president.

“Russia is now trying to capture some major cities from the sea, such as Odesa,” Zhovkva said Sunday on the BBC. “They are now firing and shelling the infrastructure over there, from the sea.” Odesa, a key naval base on the Black Sea, has come under fire from missile strikes launched from the Crimean peninsula, Ukraine’s military has said.

More foreign leaders are expected to come to Ukraine soon, Zhovkva said, without offering details.

EU Holds Emergency Meeting of Top Military Body (11:53 a.m.)

EU foreign policy chief Josep Borrell held an extraordinary meeting of the bloc’s military committee Sunday to discuss expected Russian attacks in the east and south of Ukraine, as well as Kyiv’s request for additional weapons, according to an EU official who declined to be named.

The meeting comes a day before EU foreign ministers are expected to discuss further sanctions on Russia, including on the oil sector.

The unusual Sunday meeting came after Russia on Friday bombed a train station in the eastern Ukrainian city of Kramatorsk, killing at least 50 people. The EU plans to approve an additional 500 million euros in arms in the coming days to support Ukraine, in addition to 1 billion euros already allocated.

Russia Boosts Fund to Counter Sanctions With Oil, Gas Proceeds (11:25 a.m.)

Russia will increase its government reserve fund by 273.4 billion rubles ($3.4 billion) to “ensure the stability of the economy in the face of external sanctions,” the Kremlin said in a decree.

The government will mainly finance the increase via “additional oil and gas revenues received in the first quarter of 2022,” it said, citing legal amendments approved in early March by President Vladimir Putin just after he launched the invasion.

Ukraine Says It’s Pursuing 5,600 War Crimes Cases (10:42 a.m.)

Ukraine has started to pursue about 5,600 cases of war crimes linked to Russia’s invasion, Prosecutor General Iryna Venediktova told the U.K.’s Sky News. The suspects in only the main “anchor case” include more than 500 top military, political, and other officials in Russia, she said.

“Almost every region of Ukraine was bombed, and we have a lot of concrete facts in every region and every city,” Venediktova said. The Kremlin denies targeting civilians and has blamed Ukraine for killing thousands of its own people, without providing evidence and despite satellite images, intercepted communications, eye-witness accounts and other reports indicating its troops are at fault.

Venediktova said Vladimir Putin is “the main war criminal of the 21st century,” but while he remains Russian president he can’t be charged under international law without a decision from the International Criminal Court prosecutor.

Russia Bringing Back Retired Troops, U.K. Says (8:10 a.m.)

In response to mounting losses, and as it prepares for what’s expected to be a major offensive in Ukraine’s east, Russia is looking to bolster troop numbers with personnel discharged from military service since 2012, the U.K. said in an intelligence update. Moscow is also trying to recruit from Transnistria, the pro-Russian enclave in neighboring Moldova, the U.K. said.

NATO estimated in late March that as many as 15,000 Russian soldiers had been killed since the invasion of Ukraine on Feb. 24. Wounded soldiers who can’t rapidly return to duty are typically twice the number of dead, according to a Center for Strategic and International Studies estimate.

Celebrity-Backed Campaign Raises $11 Billion for Aid (8:05 a.m.)

A global pledging campaign, “Stand Up for Ukraine” raised 10.1 billion euros ($11 billion) on Saturday to help more the than 10 million people displaced within and outside of Ukraine since Russia invaded six weeks ago.

Backed by Europe, Canada, Gulf countries and celebrities such as Katy Perry, Madonna and Elton John, the drive concluded at an event in Warsaw with Polish President Andrzej Duda, European Commission President Ursula von der Leyenand Canadian Prime Minister Justin Trudeau, who appeared by video link.

Ukraine President Volodymyr Zelenskiy also addressed the event via video, and later spoke with Trudeau, he said on Twitter.

Japan Insurers to Halt Coverage for Firms in Russia, Kyodo Says (2:46 a.m.)

Japanese non life insurers including Tokio Marine Nichido will cease acceptance of new coverage contracts for Japanese firms operating in Russia, Kyodo News said Saturday, citing people close to the matter.

Japanese drug-maker Takeda Pharmaceutical Co. won’t conduct new clinical trials in Russia, nor make any new investments in the country, the Nikkei newspaper reported.

NATO Seeks Stronger Eastern Flank: Telegraph (11:20 p.m.)

NATO is working on plans for a permanent troop presence on the alliance’s eastern border, the Telegraph reported, citing an interview with NATO Secretary General Jens Stoltenberg.

The “reset” required after Russia’s invasion of Ukraine “is to move from tripwire deterrence — which is the current concept — to something that is more about deterrence by denial or defense,” the newspaper quoted Stoltenberg as saying. Decisions are expected at a summit of NATO countries in June, he said.

Italy to Shift Gas Imports Toward Algeria (11 p.m.)

Italy will boost natural-gas imports from Algeria by almost 50% under a deal to be signed on Monday during a visit by Prime Minister Mario Draghi to Algiers, according to people familiar with the matter.

Italy imported some 21 billion cubic meters of gas from Algeria in 2021 and about 29 bcm from Russia. The agreement will probably lead to Algeria replacing Russia as Italy’s biggest supplier, according to the people.

European Embassies Start Return to Kyiv (6:10 p.m.)

European embassies that moved out of Kyiv before or during Russia’s invasion are starting to return, taking their lead from the European Union’s diplomatic mission.

Italy indicated it will reopen its embassy shortly after Easter, ANSA reported, citing Foreign Minister Luigi Di Maio. Austria’s chancellor said embassy staff will return from a location in far western Ukraine “since the situation around Kyiv has now stabilized somewhat,” the Austria Press Agency reported.

U.K.’s Boris Johnson Makes Surprise Visit to Kyiv (4:13 p.m.)

U.K. Prime Minister Boris Johnson made a unexpected visit to Kyiv, the latest in a string of leaders traveling to Ukraine capital to meet President Volodymyr Zelenskiy.

Johnson pledged new military assistance of 120 armored vehicles and new anti-ship missile systems. That’s on top of 100 million pounds ($130 million) in equipment announced Friday, including over 800 anti-tank missiles, Javelin anti-tank systems, Starstreak air defense systems, helmets, armor and night-vision goggles.

The U.K. said it has also liberalized tariffs on most imports from Ukraine.

Google Says Complying With Sanctions Laws in Duma Site (3:39 p.m.)

Alphabet Inc.’s Google said it complied with applicable sanctions in blocking the YouTube channel of the Duma, the lower house of Russia’s parliament.

Duma TV said on its Telegram channel earlier Saturday that its account on YouTube, a unit of Alphabet Inc.’s Google, had been blocked.

“Google is committed to compliance with all applicable sanctions and trade compliance laws. If we find that an account violates our Terms of Service, we take appropriate action,” a Google spokesperson said in an emailed statement. “Our teams are closely monitoring the situation for any updates and changes.”

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