US Spy Chief Sees the Russia Invasion Stymied

(Bloomberg) – Russia is likely to scale back its ambitions in Ukraine for now to sticking with the territories seized after its invasion began, US intelligence chiefs told a Senate committee.

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NATO Secretary General Jens Stoltenberg said the possible fall of the town of Bakhmut “in the coming days” would not signal a turning point in Russia’s war against Ukraine. “We must continue to support Ukraine,” Stoltenberg said before a meeting with European Union defense ministers in Sweden.

Ukraine continues to defend Bakhmut, Deputy Defense Minister Hanna Malyar said when asked about the NATO chief’s remarks during a news conference.

Important Developments

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  • United Nations Guterres and Zelenskyy discuss Black Sea grain deal

  • The Pentagon’s budget is said to seek large increases for weapons purchases, research and development

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  • Putin and Saddam Hussein have a lot in common: Leonid Bershidsky

(All times CET)

US sees Russia reducing targets in Ukraine for now (8:11 p.m.)

President Vladimir Putin would need to find outside munitions suppliers and enforce mandatory national mobilization if Russia is to press ahead with its year-long invasion, National Intelligence Director Avril Haines told the Senate Intelligence Committee on Wednesday as he presented an annual assessment of global threats to the US .

“We don’t expect the Russian military to recover enough this year to make large territorial gains,” Haines said. “Putin probably better understands the limits of what his military can achieve and appears to be focusing on more limited military goals for now.”

Read the whole story here.

Ukraine Continues to Defend Bakhmut, Says Deputy Defense Minister (6:27 p.m.)

“So far, Bakhmut stands,” said Malyar, Ukraine’s deputy defense minister.

Responding to NATO Secretary General Stoltenberg’s remark that Bakhmut could fall within days, she said that while the grueling fighting is exhausting Ukraine, it is also draining forces from Russia.

“For us, exhausting the enemy is very important, so it all makes its own sense,” she said.

Ukraine’s GDP decline slowed in February, economy minister says

According to preliminary data, the economy shrank by almost 26% in February compared to the same period last year, Economy Minister Yulia Svyrydenko said on the website.

According to Svyrydenko, this compares to an estimated 32% drop in January. Economic activity gradually began to recover and business sentiment improved as the energy deficit narrowed from mid-February and power outages became shorter. Rebuilding in liberated areas and relocating farmers from the front lines to safer areas also helped offset the economic decline.

UN’s Guterres visits Kyiv as grain export deal talks continue (3:00 p.m.)

United Nations Secretary-General Antonio Guterres visited Ukraine on Wednesday for talks with Volodymyr Zelenskyy on issues such as grain exports, nuclear safety and mitigating the effects of the Russian war.

“I want to underline the crucial importance of extending the Black Sea Grains Initiative,” Guterres said during a press conference with Zelenskyy in Kyiv.

The deal, which allows grain exports from some Ukrainian ports, expires on March 18 and is subject to extension if neither side seeks to cancel or amend it, although an extension has yet to be confirmed.

Ukraine will evacuate dozens of children from Bakhmut (14:20)

About 40 children will be relocated with a family member, Deputy Prime Minister Iryna Vereshchuk said on TV. Child evacuation had been encouraged in all combat zones but was made mandatory for Bakhmut during a cabinet meeting on Tuesday.

They are among fewer than 4,000 civilians remaining in Bakhmut, compared to a pre-invasion population of about 70,000, including about 12,000 children, Vereshchuk said.

The issue of children at war in Russia has become particularly explosive. Last month, the Humanitarian Research Laboratory of the School of Public Health at Yale University said at least 6,000 Ukrainian children aged 4 months to 17 years were being held in “political re-education” camps in Russia and occupied Crimea, some of them families were later adopted or sent to foster families.

Bakhmut could soon fall to Russia, says NATO chief (1:30 p.m.)

Stoltenberg said Russia suffered heavy casualties in the battle for Bakhmut but was deploying more troops and trying to make up for a lack of quality with quantity.

“They suffered great losses, but at the same time we cannot rule out that Bakhmut will eventually fall in the coming days,” NATO Secretary General said, referring to Russia. “Therefore, it is also important to emphasize that this does not necessarily reflect a turning point in the war, but only underlines that we should not underestimate Russia and continue to support Ukraine.”

Wagner Group Founder’s Mother Wins Appeal Against EU Sanctions (12:05 p.m.)

Violetta Prigozhina was targeted in February last year for her association with her son, whose mercenary group has played a key role in President Vladimir Putin’s increasingly all-out war effort. The EU court, the bloc’s second highest court, on Wednesday annulled their listing.

Even though Prigozhin is “responsible for actions that undermine the territorial integrity, sovereignty and independence of Ukraine,” the connection between mother and son “is based solely on their family relationship and is therefore insufficient to justify their inclusion on the disputed lists.” “.

Wagner Group founder’s mother wins challenge to EU sanctions

Zelenskyy’s top adviser and US national security adviser discuss Bakhmut (10:45 am)

Zelenskyy’s chief of staff, Andriy Yermak, spoke by phone with US National Security Advisor Jake Sullivan. Yermak briefed Sullivan on decisions approved by President Volodymyr Zelenskyy and the military top command regarding operations near Bakhmut, Zelenskyy’s office said via email.

Yermak and Sullivan discussed international efforts to arm and fund Ukraine, punishing Russian crimes against Ukrainians, and the environmental damage caused by the Russian invasion.

Germany’s Pistorius warns of ammunition shortages (9.25 a.m.)

The EU’s proposal to send ammunition to Ukraine “is important and necessary, but there is no getting around the fact that we will have to contend with bottlenecks in the coming weeks and months,” said Federal Defense Minister Boris Pistorius in Stockholm.

Pistorius said: “Right now we have to find supplies together and deliver whatever we can – deliver within our own defense capabilities and within the capabilities of the Alliance.” He added that it also “must be seen how quickly industry is ramping up production can”.

EU Draft Ammunition Is Too Little, Says Ukraine (9am)

Ukraine urgently needs artillery ammunition in large quantities and a draft EU proposal to use 1 billion euros to buy shells will not be enough, Ukraine’s Reznikov said. “We need a million rounds and that would cost about four billion,” Reznikov told reporters ahead of a meeting of his EU counterparts in Sweden. “We need more.”

The EU’s Borrell said: “We have the resources that we have.” He added: “If member states are willing to provide more, then we will have it.” But let’s be realistic and pragmatic today. Don’t discuss infinity, discuss what can be accepted today.”

We need to ramp up ammunition production in Europe, says Sweden (8:50 a.m.)

“The crucial thing is that the Ukrainians urgently need ammunition and we need to ramp up production in Europe,” Swedish Defense Minister Pal Jonson told reporters in Stockholm. “The main goal is procurement from the European industrial base, but if there are other supplies from other countries, I don’t think we should exclude this possibility.”

The European Commission, the EU’s executive arm, last week circulated a three-pronged plan proposing to immediately transfer ammunition, particularly 155mm artillery shells, from existing stocks or pending orders to Ukraine. It also called for the bundling of orders to European industry and promised to propose measures to cut red tape or other bottlenecks preventing industry from ramping up production.

Wagner troops have taken eastern part of Bakhmut, says Prigozhin (8:15 am)

Prigozhin’s claim about Bakhmut could not be verified immediately, but Russian forces have been slowly advancing in and around the city, which has seen some of the heaviest fighting of the war.

According to the Institute for the Study of War, “After the Ukrainians withdrew from eastern Bakhmut on March 7, Russian forces probably captured the eastern part of Bakhmut east of the Bakhmutka River.” Zelenskyy this week ordered commanders to defend of the city to continue despite Russian advances.

Germany reacts cautiously to Nord Stream report (7:30 a.m.)

Germany’s Pistorius reacted cautiously to a New York Times report that new information verified by US officials suggested a pro-Ukrainian group carried out last year’s attack on the Nord Stream gas pipelines. The newspaper did not identify the officers and said they declined to disclose the nature of the information or how it was obtained.

“It’s always interesting to read such investigative reports and I’ve read them with great interest, but we’ll have to wait and see what actually gets confirmed,” Pistorius told Deutschlandfunk. “I don’t think it’s appropriate to comment on hypotheses,” he added. “It is much more important that we do everything we can to better protect critical infrastructure under water.”

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