NATO Says Kyiv’s Ammo Use Outstrips Production

(Bloomberg) – Ukraine is consuming ammunition “many times higher” than the allies’ current production rate, putting a strain on industries, NATO chief Jens Stoltenberg said before a meeting of defense ministers on Tuesday. The waiting time for large caliber ammunition has increased from 12 to 28 months, meaning orders placed now will not be delivered for two and a half years, he added.

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An International Monetary Fund mission began talks with Ukrainian officials Monday as the fund weighs a multi-year aid package worth up to $16 billion to provide a catalyst for more financial support. The government in Kyiv is seeking a full loan package after reaching agreement in December on an interim four-month surveillance programme.

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Important Developments

• The EU will propose new sanctions against Russian technology and vehicles

• British embassy guard spied on for cash to Russia, court said

• The EU says Russia has been forced to cut oil production

• Out of fear or money, consumer giants remain in Russia

• The Moldovan leader accuses Russia of supplanting the conspiracy in the security push

On the floor

According to the Ukrainian General Staff, Russian troops continued to carry out attacks, mainly in the eastern areas around Kupyansk, Lyman, Bakhmut, Avdiyivka and Nowopavlivka. Ukrainian troops repelled attacks near 11 settlements in the Kharkiv, Donetsk, Luhansk and Zaporizhia regions, a statement on Facebook said. Russia remains concerned about guarding the extreme ends of its extended front line, despite the current operational focus on the heart of the Donbass, according to the latest intelligence update from the UK MoD.

The story goes on

(All times CET)

JPMorgan Helps Ukraine in Debt Capital Markets (5 p.m.)

JPMorgan Chase & Co. will provide advisory services to Ukraine in areas such as sovereign rating and government liquidity management. Ukrainian President Volodymyr Zelenskyy and members of the asset management department of JPMorgan and the investment bank signed a memorandum of understanding according to which the Wall Street bank will advise Ukraine on reconstruction.

NATO’s Stoltenberg says spy balloons require vigilance (1:30 p.m.)

NATO Secretary General Jens Stoltenberg said incidents of spy balloons in NATO airspace are an indication that the allies need to step up cooperation.

“It’s part of a pattern where China, but also Russia, is increasing their intelligence and surveillance of NATO allies,” Stoltenberg said. “This underscores the importance of our vigilance, increased presence and also that we step up and strengthen how we share information and how we monitor and protect our airspace.”

US shoots down fourth object as China launches new allegations

Russia’s new offensive has already begun, says NATO chief (1:20 p.m.)

Stoltenberg said that Russia’s expected increased offensive has already begun and that Putin has shown no willingness to de-escalate the war.

“We’ve already seen the beginning,” Stoltenberg told reporters in Brussels. “What Russia is doing now is sending thousands and thousands more troops, suffering huge casualties but putting pressure on Ukrainians.” He added that it was imperative for the allies to supply Ukraine with more weapons.

Deputy Prime Minister of Ukraine Warns Against Foot Dragging (12:45 p.m.)

According to Olha Stefanishyna, a deputy prime minister in the Kyiv government, any delay by Western nations in making decisions about aid to Ukraine will result in additional and unnecessary deaths of the country’s citizens and the destruction of its infrastructure.

“The basic headline of the message we Ukrainians are bringing to Europe and around the world is that all possible measures should be taken now and are urgent,” Stefanishyna said at an event in Berlin ahead of this week’s Munich Security Conference .

Ukrainian Bonds at 3-Month Low (11:45 a.m.)

Ukraine’s foreign currency bonds and GDP warrants fell to their lowest levels since November after Moody’s cut the country’s credit rating to its second-lowest, Ca, on par with Argentina.

The agency called “protracted challenges” for Ukraine’s economy and public finances in its announcement published on Friday.

China’s Wang visits MSC (11:30 a.m.)

China’s top foreign policy leader Wang Yi will attend the Munich Security Conference this week with a large delegation, while Russian Foreign Minister Sergei Lavrov was not invited this time, according to organizers.

“We will not offer Lavrov, who is really just President Vladimir Putin’s spokesman, a forum for his propaganda,” MSC Chairman Christoph Heusgen told reporters in Berlin. Heusgen left open whether Ukrainian President Volodymyr Zelenskyj could come as a “surprise guest” at the last minute.

Moldova tightens security checks (11:30 a.m.)

Moldovan President Maia Sandu has urged the nation to be on high alert as intelligence officials in Chisinau have confirmed that Russia intends to unleash violent protests to try to bring about regime change and derail the country’s EU accession.

Sandu said she has asked parliament to speed up the passage of legislation that would increase prosecutors’ power to stop those involved in attempts to destabilize the country. “We have managed to stop such plans in the past and we will do it again,” Sandu said. “The Kremlin’s attempts to bring violence into our country will not prevail.”

EU proposes new Russia sanctions (10 a.m.)

According to people familiar with the plans, the European Union is poised to propose a new sanctions package to further limit the Kremlin’s ability to support its war machine.

The measures will include sweeping export bans on a range of products, technologies and components identified in Russian weapons stationed in Ukraine, said the people, who asked not to be identified to discuss sensitive information.

Ukraine thanks Denmark for howitzers (9am)

Ukraine’s Defense Ministry thanked Denmark for the delivery of 19 Caesar howitzers, representing the country’s entire roster of self-propelled artillery systems.

“A true friend who knows our fight is Europe’s fight,” the ministry said in a tweet. Denmark’s contribution to Ukraine’s defense has sparked debate over whether it could unduly weaken its own military and compromise commitments to NATO.

Italy sees end of Russian gas dependency (8:30 a.m.)

Italy could end its dependence on Russian gas by the end of this year, Industry Minister Adolfo Urso said in an interview with Il Messaggero newspaper.

Italy could start supplying other countries next year and soon become a European gas hub, also thanks to a doubling of flows via the Trans-Adriatic Pipeline from Azerbaijan, Urso told the newspaper.

Further work to restore the power supply: Zelenskiy (8 a.m.)

Zelenskyy praised those working to repair energy infrastructure damaged by Russian attacks and said the majority of Ukrainians spent the weekend “without many shutdowns”.

“Of course, consumption will increase with the beginning of the new week, and therefore there will be contingency plans,” Zelenskyy said in his daily address late Sunday, warning that Ukraine still has “a decisive victory on the energy front.” The energy system continued to meet consumer demand as of Monday morning, Energy Minister Herman Halushchenko said in a statement on his ministry’s website.

(An earlier version corrected an incorrect timestamp on the map)

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