(Bloomberg) — President Vladimir Putin ordered dramatically heightened security, including restrictions on movement, in regions along the border with Ukraine after attacks spread into Russian territory.
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Russian authorities said they are leaving the occupied city of Kherson for the eastern bank of the Dnipro River as Kyiv pushes forward with its counteroffensive. The European Union is set to sanction one entity and three Iranian generals for providing military support and drones to Moscow.
And US officials are increasing pressure on Turkey to take a harder line against Moscow after President Recep Tayyip Erdogan met Putin in Kazakhstan for their fourth in-person get together in as many months.
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Key Developments
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On the Ground
Russian attacks in Ukraine killed 17 civilians and wounded 29 on Tuesday, President Volodymyr Zelenskiy’s chief of staff said. Ukrainian air defenses shot down four of six Russian cruise missiles and 10 Iranian-built drones by early afternoon. An attack on energy infrastructure near Kryvyi Rih in the Dnipropetrovsk region left much of the area in a blackout. Ukrainian troops repelled Russian attacks near 11 settlements in the Kharkiv, Luhansk and Donetsk regions, Ukraine’s General Staff said. Ukrainian units downed a Russian Ka-52 helicopter in the Kherson region, the Air Force said.
(All times CET)
Croat President Bristles at Plan to Train Ukraine Troops (3:47 p.m.)
Croatian President Zoran Milanovic rejected an initiative welcomed by the nation’s prime minister to host and train Ukrainian troops inside the NATO and European Union country.
“This is not our war,” said Milanovic, whose mostly ceremonial duties include overseeing Croatia’s armed forces. “I won’t allow Croatia to be involved in this.” Earlier this year, Milanovic clashed with Premier Andrej Plenkovic over the issue of admitting Finland and Sweden to NATO. Milanovic eventually acquiesced.
Putin Extends Martial Law in Occupied Ukraine (2:21 p.m.)
Citing strikes in recent weeks in border zones and a bombing on his showcase bridge to Crimea, Putin told his Security Council that he’s ordering stepped-up measures across much Russia. He also extended existing martial-law regimes in the four Ukrainian territories he claims to have annexed last month.
Putin’s new measures impose higher security in six regions near the Ukrainian border, as well as Crimea. The new rules impose limits on movement in and out of the regions, allow local authorities to relocate civilians away from combat zones, boost military production and give increased powers to military officials.
Areas further back from the front lines, including Moscow, also will see unspecified restrictions on movement, according to the text of Putin’s decree.
US Officials Raise Up Pressure on Turkey Over Russia (2:19 p.m.)
US officials have raised pressure on their Turkish counterparts regarding compliance with financial sanctions against Russia to force Ankara into taking a harder line against Moscow.
A delegation led by Elizabeth Rosenberg, assistant secretary for terrorist financing and financial crimes at the US Treasury, met the Turkish central bank governor and business groups in Ankara and Istanbul earlier this week, according to people familiar with the discussions.
The visit comes a week after Erdogan agreed with Putin to boost energy ties and set up an international gas hub in Turkey, potentially positioning the country as a key route for Russian flows to Europe.
Billionaire Gets Second Chance at Sanction Fight (2:16 p.m.)
Russian billionaire Petr Aven’s legal fight over a UK investigation into alleged sanction evasions has been sent back to a lower court for a fresh look, leaving the first major legal case on the newly-imposed sanction regime hanging in the balance.
Aven, who said he has never had a British bank account in his name, is suspected of using ones held by his wife and estate management firms to fund his lifestyle. The National Crime Agency’s investigation has focused on around £3.7 million ($4.2 million) routed to the UK from an Austrian trust in the hours before European sanctions were imposed.
EU Set to Sanction Iran Drone Maker (12:58 p.m.)
The EU is aiming to approve sanctions against three Iranian generals and one entity for providing military support to Russia on Wednesday and formally adopt them by Thursday, several officials said.
The entity, Shahed Aviation Industries, is responsible for the design and development of the Shahed series of drones that are being used in Ukraine. Iran has repeatedly denied exporting any weapons for use in the war in Ukraine.
Germany Sees No Urgency for Approving More Funds for Ukraine (12:38 p.m.)
Germany is dragging its feet to approve 3 billion euros ($2.9 billion) in loans for Ukraine and complete the release of the 9 billion-euro package promised by the European Union in May.
Berlin told member states early this week that there was no financing gap in the war-torn country until the end of the year. For that reason, it considered it unnecessary to urge EU leaders to complete the approval of the remaining tranche when they meet in Brussels on Thursday and Friday, according to people familiar with the discussion.
Germany remains at loggerheads with the European Commission over the design of the financial package for Ukraine, and the delay to disburse the funds has irked US and Ukrainian officials.
Ukraine Makes Progress Toward EU Accession: German Envoy (12:01 p.m.)
Germany’s ambassador to Ukraine, Anka Feldhusen, said the country had made progress on reform of the judiciary, as well as on electing a head of the National Anti-Corruption Bureau as part of its bid to join the EU. The German government will monitor the authorities’ work in these areas, she said in a video briefing from Kyiv, adding that her country’s mission was working despite recent attacks on the Ukrainian capital.
“The German embassy, like other embassies in Kyiv, operates as before the attacks,” Feldhusen said. “We are shoulder to shoulder with the Ukrainian society. I am indeed impressed how calmly people, especially in Kyiv, live through this.”
Russian Occupation Authorities Leaving City of Kherson (10:56 a.m.)
Russian occupation authorities are leaving the city of Kherson for the eastern bank of the Dnipro River amid a continuing Ukrainian counteroffensive in the area.
Russia-appointed Governor Vladimir Saldo told state television the move would be completed Wednesday but said there are no plans to surrender the city, which was the first regional capital to fall to Russia in the invasion. Saldo said 5000 people had already departed over the last two days as officials appeal to civilians to leave, promising to relocate them farther east.
The state-run Tass news service reported that Russian occupation officials sent out text messages alerting residents of the southern city early Wednesday and plan to relocate as many as 60,000 people from areas on the western side of the Dnipro.
Estonia Says US to Boost Troops, Weapons (9:10 a.m.)
The US will send additional military personnel and weapons to Estonia as tensions with Russia over its invasion of Ukraine persist, the Baltic nation’s defense minister said.
“We reached an agreement in principle that the US will contribute to Estonia’s security with additional rotating units and capabilities,” Estonian Defense Minister Hanno Pevkur said in an emailed statement during a three-day trip to the US during.
UK Defense Chief Flies to Washington (8:59 a.m.)
UK Defence Secretary Ben Wallace flew to Washington DC Tuesday for talks with his US counterpart as the British government noted a shift in tactics from Russia in Ukraine.
“They’re moving towards more attacks on civilian infrastructure rather than on military targets,” UK Foreign Secretary James Cleverly told Sky News on Wednesday. “I’m not going to guess or speculate on what was discussed” in Washington.
Naftogaz Restructuring Blocked by Hedge Fund (7:25 a.m.)
London-based VR Capital is one of the investors involved in a stand-off between NJSC Naftogaz Ukrainy and its bondholders, the Financial Times reported, citing unidentified people familiar with the matter.
VR, which declined to comment to the newspaper, is a big holder of the energy company’s bonds and has taken a lead role in blocking the restructuring plan.
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