Ukraine Update: U.S. House Set to Revoke Russia’s Trade Status
President Joe Biden offered $800 million-worth of new weaponry. He also called Russian President Vladimir Putin a 'war criminal.'
(Bloomberg) -- The U.S. House neared a deal on legislation that would remove Russia’s “most-favored-nation” trade status as President Joe Biden branded leader Vladimir Putin a “war criminal” and offered offered $800 million-worth of new weaponry to Ukraine.
Ukraine’s military said Russian strikes continued on infrastructure sites and on densely populated areas of cities, with another apartment building hit in the capital, Kyiv. But it said Russia’s forces remain bogged down on the ground. Russia said its troops were advancing through the town of Sievierodonetsk in the Luhansk region in the east.
Group of Seven foreign ministers meet virtually Thursday to discuss the crisis, while Ukrainian President Volodymyr Zelenskiy addresses the lower house of the German parliament via video link. On Wednesday he told NBC News that negotiations with Russia are continuing but are “fairly difficult.”
(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)
Key Developments
- Biden Ramps Up Military Aid to Ukraine, Including Armed Drones
- U.S. House Plans Thursday Vote to Revoke Russia’s Trade Status
- Broke Oligarch Says Sanctioning Billionaires Won’t Sway Putin
- U.S. Is Sending Dive-Bombing Switchblade Drones to Ukraine
- Radio Silence on Russia Debt Payments Keeps Default Risk in Play
- In a Chilling Threat, Putin Vows to Rid Russia of ‘Traitors’
All times CET
House Moves to Revoke Russia’s Trade Status (4:48 a.m.)
Lawmakers are on the brink of an agreement for legislation to revoke normal trade relations with Russia, the latest move in a series of congressional efforts to hobble the Russian economy in response to the invasion of Ukraine.
Removing Russia’s “most-favored-nation” trade status would enable the U.S. to impose higher tariffs on Russian goods, and take other actions. House Majority Leader Steny Hoyer said the vote would take place Thursday. Revoking the status, which in the U.S. requires legislation, would put Russia in the same category as other states viewed by Washington as pariahs including North Korea and Cuba.
Sri Lanka Faces Default Worries (3:00 a.m.)
Russia’s war in Ukraine is now threatening to crush an $81 billion economy more than 4,000 miles (6,400 kilometers) away in the Indian Ocean.
Hit by soaring oil import costs and a dip in tourism revenue, Sri Lanka is racing to avert a default amid dwindling foreign-exchange holdings. With inflation already at 15% -- the worst in Asia -- the conflict is only making it harder for the tropical island located off the southern tip of India.
Russia Bombed Civilian Shelter, Mariupol Council Says (1:28 a.m.)
A Russian plane bombed a theater in the besieged southern city of Mariupol where hundreds of people have been sheltering, according to the city council. Debris blocked the entrance to the interior and shelling continues, making it impossible to assess casualties, officials said.
The Maxar satellite firm collected images showing the word “children” was written in large white letters in Russian in front of and behind the theater. Ukrainian officials said air-strikes also hit a swimming-pool building that was serving as a shelter, and a convoy of civilian evacuees.
Russia’s Embassy in the U.S. rejected the report that the theater was attacked by the Kremlin’s forces, calling it the latest example in a campaign of disinformation, state-run news service Itar-Tass reported.
Zelenskiy Says Talks With Russia Continue (12:30 a.m.)
Zelenskiy, in his nightly video, said negotiations with Russia were continuing. “My priorities are absolutely clear: To end the war, security guarantees, sovereignty, restoration of territorial integrity. Real protection for our country,” he said.
Oil, Wheat Extend Declines on Optimism Over Peace Talks
Crude oil fell for a third day, driven in part by indications of progress in the talks between Russia and Ukraine. Wheat also posted declines. U.S. stocks rose, boosted by positive comments from Federal Reserve Chair Jerome Powell about the economic outlook after he raised interest rates.
Mayor of Ukrainian City Freed (8:29 p.m.)
Ivan Fedorov, the mayor of the Ukrainian city of Melitopol, was freed from Russian captivity after a “special operation,” according to Kyrylo Tymoshenko, a top Ukrainian official.
Fedorov was kidnapped on March 11. Tymoshenko provided no further details on the operation.
Biden Calls Putin a ‘War Criminal’ (8:07 p.m.)
Biden called Putin a “war criminal,” shortly after announcing an expansive new package of military aide to Ukraine including armed drones. The White House has previously been cautious about accusing the Russian leader or his forces of war crimes.
White House Press Secretary Jen Psaki previously said the U.S. would go through an established process and work with the International Criminal Court to determine whether war crimes had been committed. The U.S. Senate on Tuesday passed a non-binding resolution supporting an investigation into Putin over possible war crimes in Ukraine.
Zelenskiy Invites Biden to Ukraine (7:43 p.m.)
Zelenskiy told NBC News that he would be “happy to invite President Biden to Ukraine” and that he has previously “extended him invitations.” Biden is traveling to Europe next week to meet with NATO allies and take part in a summit of European Union leaders.
When asked if he would step down as president as part of negotiations with Russia, Zelenskiy signaled he would not, saying there would be an election at the end of his five-year term.
Russia Sticks With Plans for Urals Crude (6:49 p.m.)
Russia plans little change to loadings of Urals crude from its Baltic and Black Sea ports in early April, according to a loading program seen by Bloomberg.
It’s not clear whether the shipments will all find buyers, so actual loadings may be different. Although most governments haven’t targeted Russian oil as part of their sanctions against Russia, many buyers -- particularly those in Europe -- are shunning the country’s oil. The full April loading program for the Urals is due later this month.
Netherlands Plans to Increase Defense Spending (6:25 p.m.)
The Netherlands is looking to increase defense spending further after Germany announced plans for beefing up spending in line with NATO targets, Dutch Defense Minister Kajsa Ollongren said in an interview with Bloomberg News. A decision could come this spring, she said.
The Netherlands for years has fallen short of NATO’s target for members to spend at least 2% of GDP on defense.
Biden Pledges Anti-Aircraft Systems, Drones for Ukraine (6:09 p.m.)
Biden detailed plans for $800 million in new assistance, including drones, to be distributed to Ukraine in a speech from the White House, just hours after Zelenskiy appealed for more help in an emotional virtual address to the U.S. Congress.
The aid will involve direct transfers of equipment from the Pentagon to the Ukrainian military and includes 800 anti-aircraft systems, Biden said. The package also includes 9,000 shoulder-mounted missiles for Ukraine to attack Russian armored vehicles, 7,000 small arms, pilotless aircraft and 20 million rounds of ammunition.
Theater Serving as Shelter Bombed in Mariupol (5:46 p.m.)
A bomb hit the city theater in besieged Mariupol, where hundreds of people have been sheltering, according to the city council. It said the central part of the building was ruined and debris blocked the entrance to the bomb shelter inside.
Rockets hit a convoy of civilians who were trying to evacuate from Mariupol to Zaporizhzhia, according to the Defense Ministry, which said there were a number of deaths and those injured included children.
NATO Chief Urges Russia to Negotiate ‘In Good Faith’ (4:40 p.m.)
NATO chief Jens Stoltenberg said the military alliance has seen no evidence on the ground that Russia is genuine in its approach to the peace talks.
“On the ground we don’t see any sign, and that is the reason why we also call on Russia to engage in these talks in good faith,” Stoltenberg told reporters in Brussels after a meeting of NATO defense ministers.
WHO Has Verified 43 Attacks on Health-Care Facilities (4:34 p.m.)
The World Health Organization said it has verified 43 attacks on health-care facilities in Ukraine since the invasion began, driving the global rate of such attacks to a record so far this year.
“Health care is becoming a target,” said Mike Ryan, head of the WHO’s health emergencies program, adding that clinic attacks are making it more difficult to send staff to shore up Ukraine’s “teetering” medical system. ”This is the most basic of human rights, and it has been directly denied to people.”
Nearby rocket strikes blew out windows and damaged walls at Ohmatdyt children’s hospital in Kyiv on Wednesday, according to the hospital’s Facebook page. The hospital said no one was wounded in the attack.
NATO Keeps Up Supply of Weapons Into Kyiv (4:29 p.m.)
NATO allies are maintaining a constant flow of weapons into the Ukrainian capital because Russian forces have not succeeded in completely encircling the city, according to two senior NATO military officials.
The visit of three EU leaders on Tuesday is a sign that routes into Kyiv remain open and, as a result, that arms shipments can continue, they said. Old Soviet equipment can be more useful than more modern kit because it doesn’t require additional training, the officials added, and open-source video show that the Ukrainian fighters are having some success.
©2022 Bloomberg L.P.
With assistance from Bloomberg