(Bloomberg) — Ukraine’s second-largest city Kharkiv reported that civilians were killed by shelling as Russian forces continued their assault and Poland warned Moscow may try to seal off part of Ukraine’s border with the European Union. The Kremlin banned airlines from 36 nations from its airspace in retaliation to a similar move from European states.
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A Ukrainian delegation led by the defense minister held talks with Russian officials on the border with Belarus, while in Kyiv, Ukrainian President Volodymyr Zelenskiy expressed doubt the negotiations can yield progress toward halting the violence and repeated a request for his country to be fast tracked into the EU.
Meanwhile, Russia’s currency and bonds plunged and authorities scrambled to erect economic defenses against a battery of sanctions launched by the U.S., the EU, Japan and other countries against Moscow.
Key Developments
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Russia Erects Financial Defenses as Sanctions Hit Banks, Markets
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Putin’s Nuclear Threat Has West Wondering Again If He’s Bluffing
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China’s Muddled Ukraine Response Feeds Rare Domestic Debate
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EU Proposes Sanctions on Some of Russia’s Wealthiest Tycoons
All times CET:
Poland Says Russia May Seek to Block Its Border With Ukraine (3:32 p.m.)
Polish Prime Minister Mateusz Morawiecki warned that Russia may attempt an attack from Belarus down the inside of Ukraine’s western border to block the country off with Poland, saying “we must act quickly” to deliver humanitarian aid.
As many as 100,000 people are expected to cross into Poland from Ukraine on a daily basis, the premier said. The Polish Interior Ministry expects arrivals of refugees from Ukraine to accelerate as Ukrainian border authorities waived exit screening procedures for women and children.
Global Equities Sink, Ruble Plunges (4:23 p.m.)
Stocks in Europe and the U.S. dropped and bonds rose as investors reacted to the latest round of sanctions against Russia. The ruble plunged, falling 22% to 107.5751 per dollar in the offshore market. It was 15% down at 97.60 in Moscow trading.
The news also sent shockwaves through commodity markets, pushing oil and gas prices higher. European natural gas jumped 11%, having earlier been up as much as 36%. Wheat prices rose 5% on supply concerns. Russia and Ukraine together account for a quarter of global wheat exports.
Macron Speaks With Putin by Phone (4:20 p.m.)
French President Emmanuel Macron called Russian President Vladimir Putin to urge him to back an immediate ceasefire in Ukraine, according to the French presidency. He also told Putin to end to all bombardments and attacks against civilians and residential areas and preserve civilian infrastructure, especially roads south of Kyiv. Russia denies targeting civilians.
Macron has repeatedly spoken with Putin in recent weeks to dissuade him from aggression against Ukraine, without positive result. The French leader also spoke with Ukrainian President Volodymyr Zelenskiy several times over the past hours.
Ukraine Urges Halt in Banknote Supply to Russia (3:40 p.m.)
The National Bank of Ukraine reached out to EU and Group of Seven nations, asking them to halt the flow of foreign currency banknotes to Russian and Belarusian banks.
“We hope that our peers and partners will help us exert additional pressure on” Russia and Belarus, Ukrainian Central Bank Governor Kyrylo Shevchenko wrote in a letter seen by Bloomberg News. Belarus hosted Russian troops that entered Ukraine from the north last week.
IOC calls for Russian, Belarusian Expulsion from Competitions (3:35 p.m.)
The International Olympic Committee asked sports organizations to exclude all Russian and Belarusian athletes and officials from competition around the world. Russia broke the Olympic Truce by invading Ukraine, as did the government of Belarus in its support of the Kremlin, the IOC said in a statement.
The IOC also withdrew the Olympic Order, the highest award of the Olympic Movement, from Russian President Vladimir Putin and repeated its recommendation not to organize any sports events in Russia or Belarus.
U.S., Allies Considering Oil Reserve Release (3:20 p.m.)
The U.S. and its allies are considering a coordinated release of around 60 million barrels of oil from their stockpiles after Russia’s invasion pushed crude prices above $100, according to three people familiar with the matter. While no decisions have been made, the U.S. has been coordinating with International Energy Agency member nations.
Brent oil futures rose 3% on Monday after the latest sanctions raised worries that supply, which is already stretched, will tighten further should Russian flows be disrupted. European natural gas was up 12%, having earlier surged 36%.
Kharkiv Authorities Cite Dead, Wounded in Shelling (3:01 p.m.)
Authorities in Ukraine’s second-largest city, Kharkiv, said heavy shelling in residential areas killed and wounded civilians, according to the Ukrainska Pravda website. “It is a war, a real war,” Kharkiv’s mayor, Ihor Terekhov, told Pravda. Clashes took place in multiple locations in the northeastern part of the city, near the Russian border, after Kremlin-led military units entered Kharkiv on Sunday, Pravda said.
Televised footage shared widely on social media showed a barrage of strikes on a residential neighborhood. Fighting also continued in the suburbs of Kyiv, the capital, as well as the northern city of Chernihiv.
Swiss to Enforce EU Sanctions With ‘Immediate Effect’ (2:55 p.m.)
The Swiss government announced it will enforce EU sanctions against hundreds of Russian lawmakers and other officials including Russian President Vladimir Putin and Foreign Minister Sergei Lavrov “with immediate effect.”
“Assets of the listed individuals and companies are now blocked,” the Swiss government said in a statement. Swiss airspace will also be closed to all aircraft “with Russian markings” from 3 p.m. today, the Swiss government said.
Russia Bans Airlines From 36 Countries From Its Airspace (2:30 p.m.)
Russia banned aircraft from 36 countries from its airspace, including all 27 members of the EU, in retaliation to a similar move from the bloc. The move makes a wide swath of Russia — a key route for travel between Europe and Asian countries such as China, Japan and South Korea — off-limits for carriers including Air France-KLM and Deutsche Lufthansa.
U.K. Says to Expect More Russia Sanctions Shortly (2:30 p.m.)
Prime Minister Boris Johnson told the U.K. cabinet to expect further sanctions on Russia shortly, his spokesman, Max Blain, told reporters in London. The premier is still pushing for Russia to be fully excluded from the SWIFT system of international payments, Blain said.
“You can expect us to have further sanctions on individuals and businesses in the coming days and weeks,” Blain said. “We do think that Russia should be cut out not just economically, but culturally as well.”
Blain said the U.K. estimates that about 100,000 Ukrainians will be eligible to enter the country under plans unveiled by Johnson on Sunday to let in close family members of people already settled in the country.
U.S. Bans Transactions With Russian Central Bank (1:55 p.m.)
The U.S. on Monday banned people and companies from doing business with the Bank of Russia, the Russian National Wealth Fund and the Ministry of Finance. The Treasury Department said the actions effectively immobilize any Russian central bank assets held in the U.S. or by U.S. nationals.
Treasury Secretary Janet Yellen said the measures will “target the funds Putin and his inner circle depend on to enable his invasion of Ukraine.”
Downgraded Russian Bonds Drop as Market Access Dries Up (1:55 p.m.)
Russia’s bonds resumed declines. The yield on Russia’s $7 billion dollar debt due in 2047 jumped to 8.3% on Monday, doubling from levels seen at the start of February.
Despite an emergency rate hike, investors were focused on the sovereign’s credit-rating downgrade to junk from S&P Global Ratings, sanctions on the central bank and the exclusion of some Russian banks from SWIFT — all of which raised concern that the banking system will get further choked up and the country’s access to sovereign-debt funding will dry up.
France to Target Yachts, Luxury Goods Under EU Sanctions (1:17 p.m.)
The government in Paris will scrutinize all financial assets – including real estate, yachts, luxury vehicles – that may belong to wealthy Russians targeted by EU sanctions, French Finance Minister Bruno Le Maire said after a cabinet meeting in Paris. French authorities will be able to seize the property, he said.
Forbes Russia Says Website Hacked (1:30 p.m.)
Several Russian media outlets, including the state-run Tass news agency and Forbes Russia magazine, displayed messages calling on the people of Russia to stop the war in Ukraine when the sites were accessed by Bloomberg News reporters in Russia. Forbes Russia confirmed to Bloomberg News that its website had been hacked.
Kommersant newspaper’s site also appeared to have been compromised but later was accessible.
Over the weekend at least one government agency confirmed its website came under a DDoS attack, while several other official websites appeared to suffer similar disruptions.
More Than 500,000 Refugees Have Fled Ukraine, UN Official says (10:42 a.m.)
The number of people fleeing Ukraine since Russia’s invasion began has crossed the half-million point, Filippo Grandi, the United Nations high commissioner for refugees, said on Twitter. UN agencies said last week the figure could climb to as many as 4 million.
Most of those have crossed into the EU, where the four member states bordering Ukraine have registered a surge in arrivals. Poland recorded the most at 281,000 since Feb. 24, while Hungarian officials have counted 85,400. Romania puts the number of Ukrainian citizens crossing into the country at 70,000. Slovakia had taken in as many as 35,000 as of Sunday.
Ukraine Asks EU to Accept its Membership Bid (10:51 a.m.)
Zelenskiy asked the EU to immediately accept Ukraine into the bloc. “I am sure it is fair. I am sure we deserve this. I am sure that all this is possible,” he told reporters at a briefing at the presidential office.
Accession to the EU is a long and arduous process, which requires the candidate country to adopt established EU law as well as to enact reforms — including to its judicial and economic systems — to meet the bloc’s criteria. The move also requires the unanimous approval of all EU members, the European Commission and the European Parliament as well as the representatives of all existing member states.
Croatia was the last country to join the EU. It applied for membership in 2003 and was granted it in 2013.
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