Ukraine Update: Sanctions Against Putin’s Daughters, IMF Account
Track the latest developments emerging from the Russian attacks on Ukraine.
(Bloomberg) -- The European Union and the U.K. announced sanctions against the daughters of Russian President Vladimir Putin.
European Commission President Ursula von der Leyen met President Volodymyr Zelenskiy in Kyiv and promised more sanctions on Russia and financial aid for Ukraine. The U.K. and Germany vowed to send more weapons.
The International Monetary Fund plans a new account to provide support to Ukraine’s economy, through which Canada has proposed disbursing C$1 billion ($795 million).
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Key Developments
All times CET:
Russia Foreign Currency Rating Cut to SD by S&P (3:03 a.m.)
S&P cut Russia’s unsolicited long- and short-term foreign currency issuer credit ratings to Selective Default from CC/C.
“The foreign currency downgrade follows our understanding that the Russian government made coupon and principal payments on its U.S. dollar-denominated 2022 and 2042 Eurobonds in rubles when those payments were due on April 4, 2022,” S&P said.
IMF Creates New Account to Help Ukraine (12:15 a.m.)
The International Monetary Fund is establishing a new account designed to give donor nations a secure way to provide support to stabilize Ukraine’s economy after Russia’s invasion.
The account would receive loan or grant resources from donors in either reserve currencies or special drawing rights, the IMF’s reserve asset, and disburse support into Ukraine’s account at the fund, the institution said.
Ukraine Corn, Wheat Exports Set to Plunge Further (10:57 p.m.)
Ukraine’s grain exports are set to decline further with sea routes blocked off after Russia’s invasion, according to the U.S. Department of Agriculture.
The USDA cut its forecast for corn exports by 4.5 million tons and wheat exports by 1 million tons, in the latest update of its closely watched World Agricultural Supply and Demand Estimates. The shortfalls will likely exacerbate the risks of food crisis in countries that rely on Ukraine and Russia for imports.
EU Formalizes Sanctions on Deripaska, Putin Daughters (9:07 p.m.)
The European Union announced sanctions against 217 individuals and 18 entities, including Russian President Vladimir Putin’s adult daughters and Oleg Deripaska, a Russian aluminum tycoon.
Deripaska, who has been under U.S. sanctions since 2018, owns an industrial conglomerate that includes a major provider of military equipment to Russia.
Moscow Shuts Human Rights Watch, Amnesty Branches (8:27 p.m.)
The Russian offices of Human Rights Watch and Amnesty International were ordered to close, a move Amnesty’s secretary general vowed wouldn’t stop her organization’s work.
“The authorities are deeply mistaken if they believe that by closing down our office in Moscow they will stop our work documenting and exposing human rights violations,” Secretary General Agnes Callamard said in a statement. “We will redouble our efforts to expose Russia’s egregious human rights violations both at home and abroad.”
Russian government officials didn’t immediately respond to questions about the closings. Both groups have been critical of Russia’s actions in Ukraine. Human Rights Watch on Thursday applauded the United Nations’ decision to suspend Russia from the Human Rights Council.
Von der Leyen Says Ukraine Belongs in ‘European Family’ (7:58 p.m.)
European Commission President Ursula von der Leyen met with Zelenskiy in Kyiv after seeing the devastation and bodies of war victims in Bucha and vowed more support -- including “rolling sanctions” -- from EU members against Moscow.
“I am here with you in Kyiv today to tell you that Europe is on your side,” she said, adding that the EU would accelerate the second half of a financial aid package with 600 million euros ($650 million). Von der Leyen also delivered a folder to Zelenskiy with a questionnaire she described as an “important step toward EU membership.”
Austrian Leader to Meet Zelenskiy in Kyiv (7:40 p.m.)
Austrian Chancellor Karl Nehammer will meet Zelenskiy in Kyiv on Saturday, the latest European leader to travel to the country that’s under attack by Russian troops.
Nehammer will meet Zelenskiy, Prime Minister Denys Shmyhal and Kyiv Mayor Vitali Klitschko. He’ll also visit the town of Bucha as evidence pours in of systematic killing of civilians by Russian soldiers stationed there after the Feb. 24 invasion.
About 1,000 Seafarers Trapped as Battle Shifts (6:59 p.m.)
As many as 1,000 seafarers are trapped in the besieged city of Mariupol and on more than 100 vessels in the Sea of Azov, according to the International Maritime Organization.
“As well as the dangers arising from bombardment, many of the ships concerned now lack food, fuel, fresh water and other vital supplies,” the leaders of the IMO and International Labour Organization said in a joint letter. “The situation of the seafarers from many countries is becoming increasingly untenable as a result, presenting grave risks to their health and well-being.”
U.S. Deploys Patriot Missile System to Slovakia (6:14 p.m.)
President Joe Biden announced the deployment of a Patriot missile defense system to Slovakia after the NATO member said it was sending one of its S-300 air-defense systems to Ukraine. “I have directed my administration to continue to spare no effort to identify and provide to the Ukrainian military the advanced weapons capabilities it needs,” Biden said.
Defense Secretary Lloyd Austin said the Patriot battery will be manned by U.S. forces and should arrive in the coming days. The deployment length hasn’t been fixed, he said, adding that “we continue to consult with the Slovakian government about more permanent air defense solutions.”
Germany, U.K. to Supply Ukraine More Weapons (5:27 p.m.)
Germany and Britain vowed to send Ukraine more weapons and work together to put pressure on Russian President Vladimir Putin, downplaying differences over imposing tougher sanctions on Moscow.
Prime Minister Boris Johnson said the U.K. would send a further 100 million pounds ($130 million) worth of military equipment. Chancellor Olaf Scholz said Germany would continue deliveries to Kyiv, without specifying types or amounts.
Medvedev Says Sanctions May Qualify as Act of Aggression (4:29 p.m.)
Sanctions may qualify under certain circumstances as an act of aggression and give Russia right to self-defense, deputy head of Russian Security Council Dmitry Medvedev said on his Telegram channel. He called the measures part of a Western “hybrid war” against Russia.
EU Officials Visit Site of Atrocities in Bucha (4:24 p.m.)
Ukrainian Prime Minister Denys Shmyhal visited the town of Bucha, near Kyiv, where Russia forces are alleged to have killed hundreds of civilians. He showed the site to European Commission President Ursula von der Leyen, EU foreign policy chief Josep Borrell, and Slovak Prime Minister Eduard Heger.
“We will never forgive the enemy for these crimes,” Shmyhal said on Twitter. “We are working together with our European partners to stop the aggressor as soon as possible.”
Russia Isn’t Informing Families of War Dead, ABC Says (3:45 p.m.)
Moscow isn’t informing many Russian families when its soldiers are killed in the war against Ukraine, ABC News reported, citing a senior U.S. official it didn’t identify.
The official told ABC that mobile crematoriums are being used to burn the bodies of some Russian soldiers. Russian troop casualties in Ukraine were estimated by NATO in late March at between 7,000 and 15,000, with those sustaining serious injuries said to be about twice that number.
Russian Oil Not On Agenda For EU Foreign Ministers (3:25 p.m.)
A ban on oil supplies from Russia will not be formally on the agenda at a meeting of European Union foreign ministers on Monday, according to an EU official.
Josep Borrell, the EU’s foreign policy chief, will not put an oil ban on the table for the session in Luxembourg, the official said. Some member states are pushing for further measures on Russian energy imports and oil in particular, including an escrow account to freeze additional profits driven by oil price rises since the start of the war.
Ministers are expected to agree to a proposal from Borrell to increase the European Peace Facility, used to finance arms supplies to Ukraine, by a further 500 million euros ($542 million) to a total 1.5 billion euros.
Germany Agrees to Financial Aid for Firms (2:43 p.m.)
Germany’s ruling coalition agreed on a financial-aid package for companies suffering from the war’s fallout that includes loan guarantees worth as much as 100 billion euros ($109 billion).
The loans would be made available through the KfW state development bank and are meant to help companies such as energy firms that have become overburdened by collateral requirements amid soaring gas and electricity prices.
EU Leaders Condemn Rocket Attack (2:39 p.m.)
European Commission foreign policy chief Josep Borrell, due in Kyiv for meetings with Ukrainian officials, also tweeted his condemnation.
EU Freezes $32 Billion in Russian Assets (1:10 p.m.)
European Union nations have frozen some 29.5 billion euros ($32.1 billion) in assets linked to Russian and Belarusian individuals and entities since the bloc adopted its first sanctions over Russia’s invasion of Ukraine.
The frozen assets include boats, helicopters, real estate and artwork valued at almost 6.7 billion euros. Additionally, the EU has blocked approximately 196 billion euros worth of transactions, it said.
Russia Delivers Surprise Rate Cut (11:02 a.m.)
The Bank of Russia delivered a surprise cut in its key interest rate Friday, reversing some of the steep increase it made after the invasion of Ukraine as the ruble has recovered.
The central bank lowered the rate to 17% from 20% and said further cuts could be made at upcoming meetings if conditions permit.
U.K. Sanctions Putin, Lavrov Daughters (11:09 a.m.)
The U.K. has sanctioned Katerina Vladimirovna Tikhonova and Maria Vladimirovna Vorontsova, the daughters of Russian President Vladimir Putin, and Yekaterina Sergeyevna Vinokurova, daughter of Foreign Minister Sergei Lavrov.
The three will be subject to travel bans and asset freezes, the U.K. said in a release that cited the “lavish lifestyles of the Kremlin’s inner circle.”
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