President Vladimir Putin mentioned that Russia is facing “colossal challenges” within the high-tech sector, an unusually frank admission of the difficulties the Kremlin is experiencing as sanctions start to chew.
The European Union, which boosted army financing for Ukraine on Monday, can also be set to approve some extra sanctions measures, together with a ban on Russian gold.
The EU’s international coverage chief, Josep Borrell, mentioned he was hopeful Russia and Ukraine might clinch a deal this week to assist export grain from the war-torn nation and avert a worldwide meals disaster. The feedback come a day earlier than Turkish President Recep Tayyip Erdogan meets Putin to debate efforts to facilitate shipments of Ukrainian grain via the Black Sea.
(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)
Key Developments
- Russia Turns the Screws on Gas Market, Snubbing Transit Bookings
- Coal-Rich Poland Rushes to Imports as Russian Sanctions Bite
- Zelenskiy Bids to Oust Ukraine’s Security Chief, Top Prosecutor
- G-20 Finance Chiefs Blame Russia as Path to Soft Landing Narrows
- Russia Orders Forces to Strike Ukraine’s Long-Range Weapons
- Russian Assets Barely Touched Across EU With $14 Billion Seized
On the Ground
Russia ordered its troops to step up fight in all areas and goal Ukraine’s long-range weapons. Ukraine has used superior US-supplied HIMARS methods to strike Russian logistics facilities, provide routes and ammunition depots behind the entrance traces in latest weeks. A Russian missile ruined an elevator with greater than 5,000 tons of grain within the Dnipropetrovsk area, native governor Valentyn Reznichenko mentioned on Telegram. Russian missiles additionally hit a army facility and a bridge throughout the Dniester estuary west of Odesa, Natalia Humeniuk, a spokeswoman for the Ukrainian army’s southern command mentioned.
(All occasions CET)
Putin Says Sanctions Causing Russia ‘Colossal’ Tech Woes (2:25 p.m.)
Russia faces “colossal challenges” in excessive know-how from worldwide sanctions, however received’t merely hand over or enable its economic system to fall again by many years, Putin advised officers throughout a videoconference on strategic growth objectives.
Instead, Moscow will “intensively” search options by counting on the nation’s personal technological assets and the work of home modern firms, the Russian president mentioned, whilst he chided the state-run Rostec company for failing to satisfy earlier targets for growth of web know-how.
Russia Fines Google $382 Million, Tass Says (2:15 p.m.)
A Moscow court docket ordered the native unit of Alphabet Inc.’s Google to pay a 21.77 billion ruble ($382 million) superb not eradicating content material banned in Russia, Tass reported from the courtroom.
The fines, for repeated violations of orders to take down content material deemed unlawful, could possibly be used as a pretext to dam numerous Google providers in Russia because the Kremlin cracks down on international tech firms.
Google’s native subsidiary filed for chapter in June after authorities froze its native checking account amid escalating fines associated to YouTube. However, it continues to supply free providers, together with search features, YouTube, Gmail and Google Play.
Read extra: Google to File to Bankrupt Russian Unit Amid Mounting Fines
EU Approves More Ukraine Arms Financing (1:15 p.m.)
EU international ministers accepted one other 500 million euros ($507 million) in army support to Ukraine, boosting the entire arms financing to 2.5 billion euros. It’s the fifth spherical of financing below the so-called European Peace Facility, which reimburses governments for army deliveries to Ukraine.
Russia Keeps Gas Buyers Guessing (11:08 a.m.)
Moscow once more rejected extra gas-pipeline area supplied by Ukraine, retaining European patrons guessing as future flows on the important thing Nord Stream route additionally stay unsure.
At a month-to-month public sale on Monday, Russia’s Gazprom PJSC opted to not ebook further capability to ship gasoline to Europe through Ukrainian pipelines in August. That retains deliveries to the continent tight, simply as concern grows that the Nord Stream hyperlink might not absolutely return when upkeep ends later this week.
Russia’s squeeze on gasoline provides has unsettled the market, with European benchmark futures greater than doubling in worth this yr. Last week, Germany began to withdraw gasoline from stockpiles that it had been build up for winter, whereas Hungary declared an “energy state of emergency.”
Russia Eyes Cooperation Pact With Iran (10:37 a.m.)
Russia handed a draft complete strategic cooperation treaty to Iran in mid-June and expects to signal it within the close to future, Interfax quoted Russian presidential spokesman Dmitry Peskov as saying.
It mentioned some amendments had been required considering Iranian opinion.
Russia Former State-TV Staffer Released (10:07 a.m.)
Russian police launched a former state-television worker after a number of hours of detention, charging her below a strict new legislation in opposition to criticizing the Kremlin’s invasion of Ukraine.
Marina Ovsyannikova, who fled Russia earlier this yr after being charged for holding up an anti-war signal on the primary night tv information, has carried out a number of public protests since returning earlier this month for a child-custody listening to. On Friday, she stood throughout the Moscow River from the Kremlin, holding a selfmade signal blaming President Vladimir Putin for the deaths of kids killed within the struggle.
Police detained her Sunday for making anti-war statements outdoors the trial final week of one other activist facing jail time for his protests. Ovsyannikova’s lawyer, Dmitry Zakhvatov, mentioned she was charged with an administrative violation, punishable with a superb.
Zelenskiy Pledges Security Clean-Up (10:01 a.m.)
Kyiv pledged to wash up law-enforcement companies after President Volodymyr Zelenskiy eliminated the nation’s safety chief and suspended its prime prosecutor over allegations that dozens of employees had been collaborating with Moscow.
Ivan Bakanov, a childhood buddy of Zelenskiy, was faraway from his put up as head of the State Security Service amid questions over how Russia managed to seize the southern area of Kherson. Iryna Venediktova, named prosecutor basic in 2020, can also be a Zelenskiy ally and lawmaker on his get together record.
Andriy Smyrnov, deputy chief of Zelenskiy’s employees, mentioned in televised feedback on Monday that Ukraine would discover anybody working with or leaking info to Russia. The president mentioned final Sunday that 651 folks had been already facing trial on fees of treason and collaborating with the enemy.
Russia-Backed RT To Get EU Sanctions Ruling (9:45 a.m.)
RT, the Kremlin-backed TV community previously known as Russia Today, will get a July 27 ruling from the European Union General Court on whether or not its inclusion on the EU’s sanctions record over the Ukraine invasion was justified.
RT’s France unit advised the court docket that the EU’s choice was a curb on press freedom that had no justification in legislation. The ruling date was introduced on the court docket web site.
Russia Orders Strikes on Long-Range Arms (8:43 a.m.)
Russian Defense Minister Sergei Shoigu ordered a part of his forces to deal with destroying Ukraine’s long-range missile and artillery methods throughout a go to to the Vostok military group within the occupied east of the nation.
The order comes after Ukraine acquired superior US-supplied HIMARS long-range artillery methods in latest weeks able to putting Russian targets so far as 80 kilometers (50 miles) away. That has allowed it to hit logistics facilities, provide traces and ammunition dumps deep behind the entrance traces and principally from past the vary of Russian artillery.
Ukraine sees Russian forces struggling to seek out secure locations to retailer munitions in occupied areas as in addition they more and more lack transport to maneuver them, Natalia Humeniuk, a spokeswoman for the Ukrainian army’s southern command mentioned on tv.
EU’s Borrell Hopeful on Ukraine Grain Deal (8:07 a.m.)
The EU’s international coverage chief mentioned he was hopeful Russia and Ukraine might clinch a deal this week to assist export grain from the war-torn nation and alleviate a rising world meals disaster.
“I have a hope that this week it will be possible to reach an agreement to deblock Odesa and other Ukrainian ports,” Josep Borrell advised reporters forward of a gathering of EU international ministers in Brussels. “The lives of tens of thousands of people depend on this agreement. It’s not a diplomatic game.”
Turkish President Recep Tayyip Erdogan has sought to dealer a deal that might facilitate shipments of Ukrainian grain via the Black Sea and meets Vladimir Putin on Tuesday.
H&M to Exit Russia at $190 Million Cost (7:57 a.m.)
H&M will start winding down its operations in Russia, having halted all gross sales within the nation in March.
The Swedish style retailer expects to ebook prices of $190 million from the method, it mentioned in an announcement Monday. It plans to reopen bodily shops in Russia for a restricted time period to promote remaining stock.
“After careful consideration, we see it as impossible given the current situation to continue our business in Russia,” Chief Executive Officer Helena Helmersson, mentioned.
Russian Gas Flows to Europe Still Limited (6:42 a.m.)
Russian pure gasoline provides to Europe stay curbed, with flows despatched through Ukraine under capability and the Nord Stream pipeline shut for annual upkeep till July 21.
Russia Ban Seen Tightening Coal Market (5:15 a.m.)
A looming ban on Russian coal imports by the European Union will add to produce strain that’s despatched costs of the fossil gasoline hurtling to a report, in accordance with a key Australian producer.
The European ban that takes impact subsequent month “is expected to tighten further the supply of high quality thermal coal,” Sydney-based Whitehaven mentioned in its assertion. “We continue to view thermal coal prices as well supported for 2022 and into 2023.”
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