UKRAINE WRAP | US considering move to block Russian debt payments
Image: REUTERS/Ricardo Moraes
May 18 2022 - 16:42
Russia closes Moscow bureau of Canadian broadcaster CBC
Russia's foreign ministry on Wednesday said it was closing the Moscow bureau of Canada's CBC and withdrawing visas and accreditation from the public broadcaster's journalists after Canada banned Russian state TV station Russia Today.
Reuters
May 18 2022 - 14:59
Germany received over 200 asylum applications from Russians in April - ministry
Germany has registered a slight increase in the number of Russian nationals applying for asylum since the beginning of the war in Ukraine, an Interior Ministry spokesperson said on Wednesday.
In April, the second full month of the war, 222 people from Russia applied for asylum in Germany, the spokesperson said at a regular government news conference in Berlin.
Reuters
May 18 2022 - 14:47
Russia's wheat exports will rise in 2022/23 due to large crop, stockpile - analyst
Russia, one of the world's largest wheat exporters, will export more of the grain in the new July-June marketing season due to a large harvest and stockpile, the IKAR consultancy said on Wednesday, raising its estimate for the wheat crop.
Russia, which competes mainly with the European Union and Ukraine for wheat supplies to the Middle East and Africa, has been limiting its grain exports with taxes and an export quota since 2021 amid efforts to slow domestic food inflation.
Russia has the potential to export 39 million tonnes of wheat in the 2022/23 marketing season, which starts on July 1, Dmitry Rylko, the head of IKAR, told a conference in Geneva.
In the current 2021/22 season, IKAR, one of the leading agriculture consultancies in Moscow, expects Russia's wheat exports at 32.0-32.5 million tonnes.
The country's 2022 wheat crop, which is due to arrive this summer, is expected to reach 85 million tonnes, Rylko said, in what he called a "conservative" estimate. He previously expected a harvest of 83.5 million tonnes.
The current state export quota, which Russia tends to set for February-June each season, will expire on June 30. The tax, which the agriculture ministry sets on a weekly basis, will remain.
Exports from Russia are crucial for the global wheat supply and demand balance, especially in the upcoming season as Ukraine's Black Sea ports remain blocked after Moscow sent tens of thousands of troops into Ukraine on Feb. 24.
Asked about the possibility of an export ban from Russia at the conference, Rylko said that it was very unlikely as the country would have a large crop and record-high carry-over stocks."
Russia's strategic goal now is to ensure uninterrupted exports of what may be a massive harvest," Rylko said.
Reuters
May 18 2022 - 14:30
Russia expels 85 diplomats from France, Spain and Italy
Russia said on Wednesday it was expelling a total of 85 embassy staff from France, Spain and Italy in response to similar moves by those countries, highlighting the damage to relations with leading EU members since it launched its war on Ukraine.
The Foreign Ministry said it was ordering out 34 diplomatic staff from France, 27 from Spain and 24 from Italy.
The three countries are among European nations that have collectively thrown out more than 300 Russians since the Feb. 24 invasion. In many cases, they accused Russian diplomats of spying, which Moscow has denied.
Russia's response has included sending home 45 Polish staff and 40 Germans last month. It has also announced tit-for-tat moves against Finland, Romania, Denmark, Sweden, Norway and Japan, among others.
Italian Prime Minister Mario Draghi called Wednesday's announcement by Moscow a "hostile act" and said diplomatic channels must not be interrupted.
France said it deplored the Russian move as an unjustified response to what it said was its own decision in April to expel "several dozen Russian agents acting on our territory under diplomatic status and working against our security interests".
Reuters
May 18 2022 - 14:00
Ukraine holds first full hearing in war crimes trial of Russian soldier
A Kyiv district court met on Wednesday to begin hearing its first war crimes trial against a Russian soldier who took part in Moscow's Feb. 24 invasion, a case of huge symbolic value for Ukraine.
Vadim Shishimarin, a 21-year-old Russian tank commander held in Ukraine, is charged with murdering a 62-year-old civilian in the northeast Ukrainian village of Chupakhivka on Feb. 28. He told the court that he pleaded guilty.
If convicted Shishimarin faces up to life imprisonment.
The Kyiv government has accused Russia of atrocities and brutality against civilians during the invasion and said it has identified more than 10,000 possible war crimes.
Russia has denied targeting civilians or involvement in war crimes and accused Kyiv of staging them to smear its forces.
Ukrainian state prosecutors have said the soldier and four other Russian servicemen fired at and stole a privately owned car to escape after their column was targeted by Ukrainian forces.
The Russian soldiers drove into the village of Chupakhivka where they saw an unarmed resident riding a bicycle and talking on his phone, they said.
They said Shishimarin was ordered by another serviceman to kill the civilian to prevent him reporting on the Russians' presence and fired several shots through the open window of the car with an assault rifle at the civilian's head. The civilian died on the spot.
Reuters
May 18 2022 - 12:54
Russia to service foreign debt in roubles if other options blocked -finance minister
Russia will service its external debt obligations in roubles if the United States blocks other options and will not call itself in default, Finance Minister Anton Siluanov said.
Washington is considering blocking Russia's ability to pay its U.S. bondholders by allowing a key waiver to expire on May 25, which could take Moscow closer to default.
"We are not going to call any defaults, we have money - unless Western countries make it impossible to service our debts," Siluanov told a forum. "We will be able to pay and will pay foreigners in roubles as a last resort option if Western (financial) infrastructure is closed for us.
"Western sanctions on Russia ban transactions with Russia's finance ministry, central bank or national wealth fund.
But the U.S. waiver, issued by the Treasury Department's Office of Foreign Assets Control on March 2, had made an exception for the purposes of "the receipt of interest, dividend, or maturity payments in connection with debt or equity.
"That has allowed Moscow to keep paying investors and avert default on its government debt, and allowed U.S. investors to continue to collect coupon payments.
After the waiver expires on May 25, Russia will still have almost $2 billion worth of external sovereign bond payments to make before the end of the year.
Moscow is due to make interest payments on two Eurobonds on May 27. One payment is $29 million for a euro-denominated 2036 bond, with a provision for alternative payment currencies, including roubles. The other is $71 million on a dollar-denominated 2026 bond, which has no provision for payment in the Russian currency.
Both bond payments have a 30-day grace period after which a default could occur if payment is missed.
"An omission of a payment can trigger a cross-default on all other obligations," Russian brokerage BCS said in a note.
Reuters
May 18 2022 - 12:50
Google's Russian subsidiary files for bankruptcy -document
The Russian subsidiary of Alphabet Inc's Google has filed for insolvency, according to a message posted on Russia's official registry Fedresurs on Wednesday.
The subsidiary was "submitting a notice of the intention to declare itself insolvent (bankrupt)", the note said.
"Since March 22, 2022, it foresees its own bankruptcy and inability to fulfil its monetary obligations, demands to pay severance payments and (or) the remuneration of staff working or previously working under an employment contract, and (or) the obligation to make mandatory payments within the prescribed period," the note said.
Google did not immediately respond to a request for comment. David Sneddon, who the document named as the subsidiary's general director, could not immediately be reached.
Reuters
May 18 2022 - 12:26
Russia expels 34 French diplomats in retaliatory move
Russia's Foreign Ministry said on Wednesday it was expelling 34 French diplomats in a retaliatory move.
France in April kicked out 35 Russians with diplomatic status as part of a broader wave of expulsions that saw more than 300 Russians sent home from European capitals.
Later that month France's foreign ministry declared six Russian agents posing as diplomats as "persona non grata" after an investigation by the domestic intelligence services concluded they were working against French national interests.
Reuters
May 18 2022 - 11:55
Moscow says possible import tariffs on Russian oil will force buyers to pay more
A US proposal to levy tariffs on Russian oil means buyers will have to pay more or seek alternative suppliers, Kremlin spokesman Dmitry Peskov said on Wednesday.
US Treasury Secretary Janet Yellen said on Tuesday the European Union could combine import tariffs on Russian oil with the phased oil embargo it is trying to put in place to shrink Russia's energy revenues.
The tariff concept will be presented at a G7 finance leaders meeting this week as an economically less costly way to siphon away oil revenues from Moscow while producing faster results, U.S. Treasury officials told reporters.
Reuters
May 18 2022 - 10:50
Russia says 959 Ukrainian fighters surrendered from Azovstal so far
Russia said on Wednesday that a total of 959 Ukrainian fighters, including 80 wounded, had surrendered from the bunkers and tunnels below Mariupol's Azovstal steelworks since Monday.
The defence ministry said 694 Ukrainian fighters - including members of the Azov regiment - had surrendered in the past 24 hours, including 29 wounded.
In the latest update on what Moscow calls its special military operation, the ministry said Russia also struck eastern Ukraine with missiles in the Soledar area of the Donetsk region.
Russia also hit foreign mercenaries, destroyed Ukrainian Su-24 aircraft, Ukrainian arsenals and S-300 anti-aircraft missile systems, the ministry said.
Russia struck 76 control points and 421 troop and artillery points, including 147 artillery and mortar, with missiles and artillery, the ministry said.It hit a Ukrainian battery of 155-mm M777 howitzers manufactured by the United States, the ministry said.It was not possible to independently confirm the claims.
Reuters
May 18 2022 - 10:24
Israel delivers helmets, vests to emergency and civilian groups in Ukraine
Israel has delivered 2,000 helmets and 500 protective vests for emergency and civilian organisations in Ukraine, Israel's Defense Ministry said on Wednesday.
Defense Minister Benny Gantz said last month he would authorize the delivery of helmets and vests, signaling a shift in Israel's position on providing such equipment. It follows a request by Ukraine for the supplies.
A mediator in the Ukraine-Russia crisis, Israel has condemned the Russian invasion but has limited itself to humanitarian relief. It has been wary of straining relations with Moscow, a powerbroker in neighbouring Syria where Israel coordinates strikes against Iranian deployments.
Ukraine previously voiced frustration with Israel's refusal to provide what it deems defensive aid against Russia.
Reuters
May 18 2022 - 08:37
UK looking at how Russian assets can fund rebuilding of Ukraine
Britain and fellow G7 nations are looking at how Russian assets can be used to fund the rebuilding of Ukraine, Foreign Secretary Liz Truss said on Wednesday.
"We need a new Marshall Plan to rebuild Ukraine and in fact, we've just been discussing this at the G7 meeting that I had with my colleagues from around the world. We are looking at what we can do to use Russian assets to help pay for this," she told Times Radio.
Reuters
May 18 2022 - 08:21
Finland, Sweden submit application to join NATO
Finland and Sweden formally applied to join the NATO alliance on Wednesday at allied headquarters, a decision spurred by Russia's invasion of Ukraine, and setting in motion an accession process that is expected to take only a few weeks.
Sweden and Finland were both neutral throughout the Cold War, and their decision to join NATO is one of the most significant changes in Europe's security architecture for decades, reflecting a sweeping shift in public opinion in the Nordic region since Russia's Feb. 24 invasion.
"This is a historic moment, which we must seize," NATO Secretary-General Jens Stoltenberg said at a short ceremony in which the Swedish and Finnish ambassadors to the alliance handed over their application letters, each in a white folder embossed with their national flag.
"I warmly welcome requests by Finland and Sweden to join NATO. You are our closest partners, and your membership in NATO will increase our shared security," Stoltenberg said. The alliance considers that the accession of Finland and Sweden would hugely strengthen it in the Baltic Sea.
Ratification of all 30 allied parliaments could take up to a year, diplomats say.
Turkey has surprised its allies in recent days by saying it had reservations about Finnish and Swedish membership. Stoltenberg said on Wednesday that he thought the issues could be resolved.
"We are determined to work through all issues and reach rapid conclusions," Stoltenberg said, noting strong support from all other allies.
Reuters
May 18 2022 - 07:00
US considering move to block Russian debt payments -Treasury
The United States is considering blocking Russia’s ability to pay its US bondholders by allowing a key waiver to expire next week, a US administration official said on Tuesday, which could put Moscow closer to the brink of default.
Russia has so far managed to make its international bond payments despite Western sanctions, which have complicated the process of paying. The country has $40 billion of international bonds and last month made a late U-turn by making overdue bond payments to avoid default.
Russia has not defaulted on its external debt since the aftermath of its 1917 revolution and was rated investment grade up until its February 24 invasion of Ukraine.
Now Russia has a looming May 25 deadline when a US license allowing it to make payments is due to expire.
Bloomberg News reported earlier on Tuesday that the Biden administration is poised to allow the waiver to expire as scheduled.
"It's under consideration but I don't have a decision to preview at this time," the official told Reuters. "We are looking at all options to increase pressure on (Russian President Vladimir) Putin.
"Bloomberg said the administration has decided against extending the waiver as a way to maintain financial pressure on Moscow.
Western sanctions introduced following Russia's invasion of Ukraine ban transactions with Russia's finance ministry, central bank or national wealth fund.
The temporary general license 9A, issued by the Treasury Department's Office of Foreign Assets Control on March 2, had made an exception for the purposes of "the receipt of interest, dividend, or maturity payments in connection with debt or equity.
"That license has allowed Moscow to keep paying investors and avert default on its government debt, and allowed US investors to continue to collect coupon payments.
It expires on May 25, after which Russia will still have almost $2 billion worth of external sovereign bond payments to make before the end of the year.
Some market participants had speculated that the Biden administration may extend the waiver, so as not to punish US bondholders.
The US Treasury Department did not immediately respond to a request for comment.
Reuters
May 18 2022 - 06:30
Ukrainian boxing great Wladimir Klitschko calls for IOC ban on Russian athletes
Ukrainian former world boxing heavyweight champion Wladimir Klitschko has called on the International Olympic Committee (IOC) to ban Russian athletes, following the Russian invasion in his homeland.
Global sports governing bodies have moved to suspend Russian and Belarusian athletes since the invasion began in February, while the IOC has recommended that the athletes do not take part in international competition or compete under a neutral flag.
Russia has called the invasion a "a special military operation," while Belarus has served as a key staging area.
Klitschko, whose brother Vitali is the mayor of Kyiv, enlisted in the Ukrainian reserve army shortly after Russia launched its invasion of Ukraine.
"The IOC should ban the Russian team now. The war is going now, they cannot participate at the next Olympic games, they cannot participate at any athletic events because this war is represented by Russia," he told "Piers Morgan Uncensored" on Fox Nation.
"Actions speak louder than words. Isolation, and this isolation speaks louder than any word or any line because isolation is painful.
"Russian members of the IOC were given permission to participate in this week's IOC session on Monday, with the Olympic body saying they are not representatives of their country."
It’s going to be painful for athletes, for the economy, it’s going to be painful for anyone and everybody involved with Russia," said Klitschko.
Reuters
May 18 2022 - 06:00
Mom in shelter says children starved in Mariupol
There were faint smiles and relief for Mariupol mother Ruslana Zavgorodnya and her young children as they spent their fifth day in safety at an evacuee shelter in Zaporizhzhia.
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