Russian missiles have again hit areas in the far west of Ukraine, including near Lviv airport, the mayor said. It was the first reported strike in several days in regions close to the Polish border that are an important corridor for Ukrainians trying to flee to Poland.
President Vladimir Putin proposed a new term for Bank of Russia governor Elvira Nabiullina hours before the central bank was to announce its first interest rate decision since the invasion of Ukraine.
President Joe Biden will tell Chinese counterpart Xi Jinping that the US will “impose charges” if Beijing backs Russia, in a phone call scheduled for 9 a.m. EDT, Foreign Minister Antony Blinken said. The Pentagon warned that Russia may become more reliant on its nuclear deterrent as the conflict and sanctions weaken its conventional military forces.
(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)
Oil expands gains as peace talks appear to stall (8:40 am)
After the biggest daily rise in 16 months, the price of oil rose again above $100 a barrel as the Kremlin sowed doubts about the progress of peace talks with Ukraine. US and European stock futures fell and Asian equities remained stable.
Putin proposes new term for central bank chief (8:11 a.m.)
Vladimir Putin has proposed a new term for Elvira Nabiullina as head of Russia’s central bank. The move comes hours before the Bank of Russia announces its first interest rate decision since the invasion of Ukraine led to sweeping sanctions and handcuffed the central bank after seizing an estimated two-thirds of its $643 billion in foreign reserves. Nabiullina has been leading the bank since 2013.
Crisis mode Central Bank of Russia keeps interest at 20%
The central bank will hold the benchmark at its highest level in nearly two decades, after an emergency hike that more than doubled its key rate to 20%.
Russian grenades land again in western Ukraine (7:15 a.m.)
Lviv mayor Andriy Sadovy said on Telegram that Russian missiles had landed near the airport, although they missed the airport. The western town close to the Polish border has become a rallying point for people fleeing the conflict to Poland and for humanitarian aid entering Ukraine.
The Ukrainian army has shot down seven jets and three drones in the past 24 hours targeting military convoys, the Armed Forces General Staff said on Facebook.
In a morning update, the Russian Defense Ministry said it has taken 90% of territory in the Luhansk region and is now fighting in the center of the southeastern city of Mariupol.
Default risk falls when bond payment is sent (7:05 am)
The cost of insuring Russian debt against default fell and bond prices rose after people familiar with the matter said money earmarked for interest payments on the Russian government’s dollar bills had been sent to the paying agent.
JPMorgan Chase & Co. processed the funds and transferred the funds to Citigroup Inc. sent, people said, sparking optimism that the bonds could still be settled in dollars.
Tokyo ready to receive Ukrainian refugees (7 hours)
Tokyo will welcome its first Ukrainian refugees and provide apartments, Governor Yuriko Koike said in an interview with Bloomberg Television.
Prime Minister Fumio Kishida, whose administration was quick to show solidarity with the US and Europe by imposing sanctions on Russia, has set up a task force to coordinate local governments’ offers to host refugees.
Sunak warns of economic blow from oil ban (6:32 am)
UK Chancellor of the Exchequer Rishi Sunak estimated that an immediate EU-wide ban on Russian oil and gas imports would result in a £70-75 billion economic blow, the Financial Times reported, citing unidentified officials.
Commenting at a cabinet meeting last week, Sunak said an immediate total EU ban would send economies across Europe, including the UK, into recession.
China increases purchases of US corn (6:27 am)
China last week collected 200,000 tons of U.S. corn for shipment in the season that began September 1. Data from the Ministry of Agriculture showed, the most since December. China was only the fourth largest buyer for the week, but the sale was notable as the Asian country had received supplies from Ukraine.
The invasion of Russia has made grain exports more difficult and called into question spring plantings, pushing up prices in Chicago.
German Vice-Chancellor ‘would go to Kiev’ (6 hours)
German Vice-Chancellor Robert Habeck said he would be willing to follow some Eastern European leaders and travel to Kiev to show support for Ukraine. The prime ministers of Poland, the Czech Republic and Slovenia traveled to Kiev on Tuesday to meet President Volodymyr Zelenskiy.
Officials in China, Russia discuss tires (3:42 a.m.)
Russian Ambassador to China Andrey Denisov met with Chinese Foreign Ministry official Cheng Guoping on Thursday, the ministry said in Beijing. The two exchanged views on their nations’ relationship, but there were no further details.
China is struggling to balance its close diplomatic partnership with its neighbor and their shared opposition to US dominance, with its long-claimed support for protecting the sovereignty of independent nations.
Japan, Australia Extend Sanctions (2:55am)
Japan has added 15 people to its list of sanctions subject to asset freeze, including eight deputy defense ministers. It also hit nine entities, including the tank company Rosneft Aero, with penalties.
The Australian government announced sanctions against Oleg Deripaska and Viktor Vekselberg, both of whom do business in the country. Foreign Minister Marise Payne said the new measures will target 11 Russian banks and government agencies, including Russia’s National Wealth Fund and the Ministry of Finance.
Zelenskiy praises US for latest military aid (12:25 p.m.)
Ukrainian President Volodymyr Zelenskiy praised the latest wave of US military aid and declined to provide details on his country’s negotiating tactics with Russia.
Zelenskiy also said in his nightly video speech that a government loan program would net businesses as much as 60 million hryvnia, or $2 million. The loans would be interest-free until a month after the end of the war. Then the annual interest rate would be set at 5%, he added.
S&P says Russia debt ‘highly vulnerable to default’ (10:45 p.m.)
S&P Global Ratings said Russia’s debt is “highly vulnerable to default” as it downgraded the country’s rating to CC, two steps above its default value.
Earlier Thursday, reports suggested that interest payments due this week on Russian dollar-denominated government bonds could move forward. JPMorgan Chase & Co., the correspondent bank used by Russia, has processed funds destined for the payments and forwarded the funds to Citigroup Inc., which is acting as a paying agent, according to people familiar with the matter. Representatives from JPMorgan and Citigroup declined to comment.
Pentagon says Putin could threaten to use nuclear weapons (9:40 p.m.)
President Vladimir Putin can be expected to threaten the use of nuclear weapons against the West as the war in Ukraine and its economic fallout weaken Russia’s conventional military strength over time, the Defense Intelligence Agency said. Pentagon.
“Russia will likely increasingly rely on its nuclear deterrent to signal the West and project power to its internal and external audiences,” said a new DIA assessment prepared for the House Armed Services Committee.
Vote in the US House to end Russia’s privileged trading status (8:36 p.m.)
The US House of Representatives voted overwhelmingly to end regular trade relations with Russia, in a move that would allow the US to sharply raise tariffs on Russian goods entering the country.
The bill, passed 424-8, would end what is known as most favored nation status for Russia, placing it in a category with other pariah states such as North Korea and Cuba. The legislation would allow the US to hit Russia with tariffs significantly higher than those it applies to other members of the World Trade Organization.
Biden will urge Xi not to support Putin’s war (7:51 p.m.)
Biden will tell Xi in a phone call on Friday that China “will bear responsibility” if it supports Russia, and must use its influence over Putin to “defend the international rules and principles it claims to support,” Blinken told reporters. He said the US is concerned that China will provide military aid to Russia. Moscow and Beijing have denied US reports that the Kremlin has asked for such assistance.
Blinken was under pressure as to whether there could ever be normal ties with Putin after the war ended, but Blinken objected, saying only that accountability for the conflict must be made.
Germany proposes air corridors for refugees (7:11 p.m.)
German Foreign Minister Annalena Baerbock called for an air corridor by Western allies for Ukrainian refugees, especially in Moldova. “We now need a common solidarity airlift within Europe, but also across the Atlantic,” Baerbock said after meeting NATO chief Jens Stoltenberg in Berlin.
She also announced that Germany will send more troops to strengthen NATO’s eastern flank, but gave no details.
Ex-US defense chief says it’s proxy war with Russia (6:13 p.m.)
The US is waging a proxy war with Russia “whether we say so or not” and should provide “so much military aid” to Ukrainian fighters, former Defense Secretary Leon Panetta said on Bloomberg Television’s “Balance of Power with David Westin” on Thursday. . †
“Diplomacy isn’t going anywhere unless we have influence,” said Panetta, who also served as director of the Central Intelligence Agency. “The way you gain influence is, frankly, you go in there and kill Russians.”
Panetta did not specify what kinds of military aid the US should give Ukraine, but said the only way to convince Putin “that he needs to find some way out is to keep beating him on the battlefield.”
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