Russia attacks cities as war enters second week

Russian forces pressed ahead with their offensive in Ukraine as the war entered its second week, firing missiles at Kyiv overnight and stepping up their campaign to take cities in the coastal south.

With more than a million refugees fleeing to neighbouring countries, according to the United Nations, a second round of talks between Russia and Ukraine were due to take place on Thursday. U.S. Secretary of State Antony Blinken is meanwhile travelling to Nato member states neighbouring Ukraine.

Russia continued to suffer the economic fallout from its invasion, with its rating slashed to junk on the back of a wave of sanctions by the US, the European Union and others. The global economy was further roiled with crude oil extending gains.

Key Developments

• Biden’s Tough Sanctions Create Worry That Putin Lacks an Exit
• Resignation Sets In as Russians Face Their New Economic Reality
• Overwhelming UN Vote Makes China’s Ukraine Balancing Act Harder
• To Punish Putin, the World Turned Finance Into a Weapon of War
• End of Oligarch Era Nears With Putin’s Miscalculation in Ukraine

Gas Prices Surge, Oil Reaches Highest Since 2008

European natural gas jumped to a fresh record as the market continues to react to sanctions aimed at Russia. Dutch front-month futures gained as much as 20% to 198 euros a megawatt-hour. The UK equivalent gained 17%.

While sanctions aren’t specifically targeting natural resources, traders and shippers are shying away from dealing with Russian suppliers. Oil soared to the highest level since 2008, with WTI rising as much as 5.4% to above $116 a barrel.

Overwhelming UN Vote Puts Pressure on China 

An overwhelming vote by the United Nations on a resolution condemning Russia’s invasion of Ukraine may increase the pressure on China to take a clearer position on the issue. 

The UN General Assembly passed the measure urging Russia to immediately halt its “aggression” by a vote of 141 to 5 in an emergency session Wednesday. China was among 35 states who abstained from the vote. 

The vote cast a spotlight on China’s continued effort to avoid taking a stance against the military action by its close diplomatic partner, despite Beijing’s frequent advocacy for upholding sovereignty rights guaranteed by the UN’s charter.

Germany to Supply Ukraine With Soviet-Made Rockets 

Germany will supply Ukraine with 2,700 surface-to-air rockets manufactured in the Soviet Union for the army of the former East Germany.

Anti-aircraft weapons can be a “game-changer” in the conflict, even if only half of them hit their target, the inspector-general of the Federal Armed Forces Eberhard Zorn told Funke Mediengruppe in an interview.

Russia’s Ekho Moskvy Radio Station to Close

The board of Ekho Moskvy, Russia’s most prominent liberal radio broadcaster, voted to liquidate the station and its website, Editor-in-Chief Alexei Venediktov said.

Earlier this week, the Russian Prosecutor General’s office ordered the broadcaster off the air in a move criticised by the Committee to Protect Journalists. 

Ekho Moskvy was founded in the waning days of the Soviet Union and managed to retain its editorial independence for over three decades even as the state brought most broadcast media under its control. 

Ukraine to Hike Interest Rates in Face of War 

As Russian troops bear down on Kyiv, Ukraine’s central bank is poised hike its key interest rate on Thursday in a bid to stabilise the economy. But the fog of war leaves economists struggling to predict how much it will tighten monetary policy. The base rate is currently 10%.

EU to Offer Residence, Job Rights to Ukrainians 

Ukrainians fleeing to the European Union will be granted full access to the bloc and receive residence permits as well as access to education and jobs as part of a plan expected to be implemented as soon as Thursday.

European member states will consider activating the so-called temporary protection directive that will allow Ukrainians to stay in the EU beyond 90 days, a move expected to be overwhelmingly adopted, according to a senior official at the European Commission.

Switzerland is also weighing offering temporary residence in the country to Ukrainians.

UK Blocks Insurance For Russian Aviation 

The UK said it will bar Russian aviation and space companies from using British insurers and reinsurers, as it beefs up what was already its biggest ever package of sanctions against a country.

The government will legislate for the ban, with details to follow, the Treasury said on Thursday in an emailed statement.

More Than 1 Million People Have Fled Ukraine: UNHCR

Russia’s invasion has forced 1,002,860 people to flee Ukraine to neighbouring countries, the UN refugee agency said Thursday, in what is poised to become the biggest humanitarian crisis in Europe since World War 2.

It said more than half a million people had fled to Poland, while 139,686 had gone to Hungary, 97,827 to Moldova and 72,200 to Slovakia. Romania had taken in 51,261 the UNHCR said, while 47,800 people had departed for Russia.

Russian-Backed Forces Threaten Strikes on Mariupol 

A spokesperson for Russian-backed separatists threatened strikes on Mariupol to demoralise the Ukrainian army and said an evacuation corridor for civilians wasn’t working, in comments broadcast on Rossiya 24. A Pentagon official said earlier that Russian forces appear to be preparing to assault the encircled port city.

Ukraine’s military headquarters said that Russia is sending four amphibious assault ships to land troops near Odesa’s seaport and seize the city.

National police in Kyiv said that there were explosions in the capital overnight, but that they were the result of Ukraine’s anti-missile systems hitting Russian targets.

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