U.S. Receives Russian Response on De-Escalation: Ukraine Update
Read all the latest developments and updates about the Ukrainian crisis here.
(Bloomberg) -- Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State Antony Blinken will speak by phone Tuesday as diplomatic efforts continue to reduce tensions over Ukraine, while U.K. Prime Minister Boris Johnson plans to travel to Ukraine to meet with its president.
The diplomatic flurry is running alongside a push by the U.S. and European Union to soon complete a package of potential Russian sanctions, with the U.K. looking at targeting “any company or individual of direct interest to the Russian state” if Moscow were to invade Ukraine. The U.S. and U.K. said that would include sanctions on oligarchs close to President Vladimir Putin.
Russia further boosted troop levels around the Ukrainian border over the weekend, according to the Pentagon. It has been moving forces also to Belarus for drills next month. Russia has repeatedly denied it plans to attack Ukraine.
Key Developments:
- What We Know So Far About Potential U.S.-EU Sanctions on Russia
- Germany’s Social Democrats will discuss its Russia policy in Berlin on Monday
- Where military forces are assembling around Russia and Ukraine
All times CET
U.S. Orders Diplomat Families Out of Belarus (2:25 a.m.)
The U.S. State Department said it ordered family members of government employees to leave Belarus, while warning American citizens to avoid traveling to the country due to “an increase in unusual and concerning Russian military activity near the border with Ukraine.”
The “Do Not Travel” advisory, posted to the State Department’s website, warned that the situation was “unpredictable” and called on U.S. citizens to reconsider travel.
U.S. Receives Russian Response on De-escalation (11:59 p.m)
The U.S. has received a written response to its proposal to Russia on how to de-escalate tensions with Ukraine, according to two Biden administration officials who asked not to be identified.
The officials didn’t provide more details on the reply. One official said it was up to Russia’s government to decide if it wants to discuss the response. The Russian response is expected to set the backdrop to Tuesday’s call between Blinken and Lavrov.
Boris Johnson to Travel to Ukraine on Tuesday (11:30 p.m.)
Prime Minister Johnson will travel to Ukraine on Tuesday for talks with President Volodymyr Zelenskiy, Downing Street said in an emailed statement.
Johnson was due to be accompanied by Foreign Secretary Liz Truss, but she posted on Twitter late Monday that she had tested positive for Covid-19 and would be isolating at home.
The prime minister may be eager to turn his attention to international matters after a damning interim report into allegations of parties in Downing Street during the coronavirus lockdown was released earlier Monday.
Putin and Macron Talk of Moves to Lessen Tensions (7:59 p.m.)
President Putin spoke with his French counterpart Emmanuel Macron about issues involving Ukraine and Russia’s demands for long-term security guarantees, according to a Kremlin statement. The two leaders agreed to maintain contacts and discussed the possibility of meeting in person, according to the Kremlin.
In a statement, the Elysee palace said the conversation between the two leaders is part of a “logic of de-escalation,” that they welcome the “positive advancements in the Normandy format” for negotiations and “both wish to continue the dialog in that framework.”
U.S., U.K. Ready Sanctions on Russian ‘Elites’ (7:49 p.m.)
“We have developed specific sanctions packages for both Russian elites and their family members if Russia further invades Ukraine,” White House press secretary Jen Psaki told reporters in Washington Monday.
She said the efforts, being coordinated with U.S. allies, would be aimed at people who are “in or near the inner circle of the Kremlin and play a role in government decision making, or, at a minimum, complicit in the Kremlin’s destabilizing behavior.” She said many of them would be hit hard because they have deep financial ties with the West.
Earlier Monday, Foreign Secretary Liz Truss announced the U.K. is considering sanctioning the oligarchs in an acknowledgment of criticism that Russian billionaires can stash billions in property and other assets in so-called Londongrad.
Kremlin spokesman Dmitry Peskov called reports the U.K. was considering such new sanctions “very alarming” and “a blatant attack on business.” Peskov noted many Russian companies also have U.K. partners and shareholders who would be affected by such limits.
EU Aims to Reassure Investors in Ukraine With Aid Package (7:19 p.m.)
The European Union is moving quickly with an emergency 1.2 billion euro ($1.3 billion) aid package it announced last week because it wants to “reassure investors that the EU will continue to support Ukraine,” EU Vice President Valdis Dombrovskis said Monday in Kyiv. The bloc will formally approve the financial assistance Tuesday.
He also said the EU is united behind a “serious, massive sanctions package clearly meant to deter Russia from further aggressive actions” -- a package he said will include “personal sanctions, economic sanctions, trade sanctions, financial sanctions.”
Biden Moves Toward Naming Brink as U.S. Envoy to Ukraine (7:08 p.m.)
Ambassador Bridget Brink is the front-runner as President Joe Biden’s choice for U.S. ambassador to Ukraine, according to two people familiar with the choice that would put in place a career diplomat with broad experience in Eastern Europe as tensions between Kyiv and Moscow soar.
Brink is currently the U.S. ambassador to Slovakia, a role she’s held since July 2019. She’s previously served on the National Security Council and at U.S. outposts in Serbia, Uzbekistan and Georgia, among others. The choice, reported earlier by CNN, isn’t final, but White House officials have told people privately that Biden intends to nominate her, according to the people.
Estonia Says Russia Fighter Jet Violated Its Airspace (6:37 p.m.)
A Russian Su-27 fighter jet violated Estonia’s airspace on Jan. 29, the Baltic country’s Foreign Ministry said Monday. The military aircraft flew into Estonia’s airspace for less than a minute with its transponder off and without radio contact, according to the ministry, which summoned the Russian embassy’s charge d’affaires in protest.
Russia’s Defense Ministry denied the accusation and said no Russian Su-27 jets were in flight over the Baltic Sea on that date, the Interfax news service reported late Monday.
Estonian Leader Calls NATO Unity a Surprise for Russia (6:20 p.m.)
NATO’s unity in confronting Russia has already been a “negative surprise” for the Kremlin, Estonian Prime Minister Kaja Kallas told Bloomberg Television in an interview. Europe needs to be strategic about following through with sanctions if Moscow moves forward with an invasion of Ukraine, she said.
“He’s building military forces around Ukraine, and it presents a great threat,” Kallas said from Tallinn. “The unity of NATO allies has become a negative surprise for Russia -- that NATO’s allies have kept the line very strongly.”
Envoy Says U.S. Ready to Keep Troops on High Alert (6 p.m.)
The U.S. is ready to keep its 8,500 troops on high alert “for quite some time” to deploy “on a moment’s notice” should the U.S.-based forces be needed anywhere in Europe to protect NATO territory, Julianne Smith, the U.S. Ambassador to the military alliance, told Bloomberg Television.
Smith reiterated that the U.S. was looking at “possible additional moves” in central and eastern Europe, given that a lot of the NATO members there “feel concerned.” “We are looking at what measures we might take in the name of reassurance and deterrence,” she said.
UN Security Council Debates Tensions Over Ukraine (4:42 p.m.)
The UN Security Council voted 10-2, with three abstentions, to hold an open hearing on Ukraine. Russia’s envoy, joined by China, sought to prevent the public hearing, calling it an example of America’s “megaphone diplomacy.” Russia and China have worked together at times over the years to block potential Security Council actions and resolutions they deem critical of the other.
U.S. Ambassador Linda Thomas-Greenfield said previous closed-door meetings on the crisis had failed to make progress and it was time for a public hearing, which began soon after the vote.
“This is not about antics,” Thomas-Greenfield said. “It’s not about rhetoric. It’s not about U.S. and Russia. What this is about is the peace and security of one of our member states.”
BP’s Russian Risk is Rising Again (15:42 p.m.)
Of all the international oil majors, BP Plc potentially has the most to lose if the situation in Ukraine sets off a crisis between Russia and the West, as this story lays out. The London-based firm owns around a fifth of Rosneft PJSC, the state-controlled energy giant run by a close ally of President Vladimir Putin.
The corporate relationship, which already sits uneasily alongside BP’s plans for net-zero carbon, could become untenable if a Russian invasion of Ukraine resulted in hefty economic sanctions. Still, BP’s exposure may also be mitigated by the fact most European nations have an even greater dependence on the country.
Poland Offers to Supply Defense Munitions (12:30 p.m.)
The government in Warsaw may decide within days to send Ukraine “tens of thousands” of pieces of munitions, including for anti-aircraft defense, the head of Poland’s national security office, Pawel Soloch, told reporters on Monday.
Poland is also ready to provide humanitarian aid in an event of an invasion, Soloch said, a day before Prime Minister Mateusz Morawiecki travels to Kyiv.
Several European countries have pledged to supply Ukraine with defense equipment, but NATO has made clear it would not send troops in. Lithuania and Latvia plan to provide anti-aircraft Stinger missiles and Estonia will send anti-tank Javelin missiles. Germany offered to send 5,000 helmets.
Lavrov, Blinken to Speak by Phone Tuesday (11:57 a.m.)
The two officials are expected to discuss the written responses the U.S. presented last week to Russia’s security demands and potentially agree on further talks, Tass reported. The Kremlin so far hasn’t presented its assessment of the U.S. position.
Lavrov said last week that the responses didn’t address Moscow’s main concerns but included “rational elements on secondary issues.” Russia is seeking further clarification on the U.S. position before deciding on its next steps, Lavrov said Sunday.
Ukraine to Boost Diplomacy to End Crisis (11:30 a.m.)
Ukrainian Foreign Minister Dmytro Kuleba said he expects a flurry of visits from European leaders in the coming days and weeks, including from the U.K., Poland and the Netherlands, as well as Germany, France and Greece.
Oil Heads for Best January in Decades (8:30 a.m.)
Brent is on course for its best January performance in at least 30 years.
The global benchmark rose 1.3%, building on a run of six straight weekly gains that saw prices hit the highest level since 2014. West Texas Intermediate advanced to near $88 a barrel after climbing 2% last week.
Scholz’s Party Discusses Russia Policy (7:15 a.m.)
Germany’s Social Democrats -- the party of Chancellor Olaf Scholz -- will discuss its Russia policy in Berlin on Monday. Co-leader Lars Klingbeil said the talks aim to prevent war in Europe.
Speaking on ARD television, he said Russia is responsible for the escalating tensions and that “all options are on the table” for imposing punitive sanctions if Moscow orders an attack but the focus is on maintaining dialog to prevent military conflict.
He downplayed comments from former Chancellor Gerhard Schroeder -- also from the SPD -- who said Western politicians were stoking tensions.
©2022 Bloomberg L.P.
With assistance from Bloomberg
