Zelenskiy Urges Repairs After Missile Barrage

(Bloomberg) — President Volodymyr Zelenskyy has urged speedy repairs to power infrastructure in areas hit by a fresh barrage of Russian missile strikes that cut off power to hundreds of thousands in war-torn Ukraine.

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“We must ensure the protection of energy infrastructure from enemy fire and the rapid restoration of power supply,” Zelenskyy said in a statement published on Telegram.

Power has been restored to the Zaporizhzhia nuclear power plant after the attacks cut power for the sixth time. At least five people were killed in the attack near the western city of Lviv, which involved a range of weapons including Iranian-made Shahed-136 drones and Kinzhal missiles, which Russia says are hypersonic missiles and capable of evading air defenses.

Important Developments

• Russia changes tactics with barrage killing five in Ukraine

• Germany identifies ship possibly involved in Nord Stream bombing

• The Russian cyberwar in Ukraine stumbles just like a conventional one

• EU halts search for sanctioned assets of Russian billionaires

• The exit of a Ukrainian investor marks a rude awakening for the Warsaw Stock Exchange

(All times CET)

Russia Still Uses “Toxic” Euros, Dollars To Sell Exports (4:44 p.m.)

At the end of last year, Russia was still conducting almost half of all trade in the currencies of its sanctioned opponents over the Kremlin’s invasion of Ukraine, even as the yuan and ruble made a major move into settling transactions.

Payments for exports with currencies labeled “toxic” by the Bank of Russia, mainly US dollars and euros, accounted for 48% of the total at the end of 2022, up from 87% at the beginning of the year. The yuan’s share rose to 34% from 0.5% and the ruble accounted for 16%, a central bank report showed on Thursday.

The story goes on

Russian Oil Flows To China Affected By Pacific Diversions And Delays (4:23 p.m.)

The shipment of Russia’s key ESPO crude to China is showing signs of trouble as shipments slow and fully loaded ships are still afloat in Asia a month after taking charge of their cargo.

Ships carrying Russia’s main Pacific export crude have been waiting weeks to be unloaded, ships are hopping between ports and more cargo is en route to India. Delays result in tankers being on voyages longer, reducing loading frequency and increasing the number of ships needed to keep exports flowing. The slowdown also contributes to an increase in shipping costs.

Russia’s resilience may thwart pressure on oil market (2:51 p.m.)

The oil market pressures forecast for later this year depend in large part on something that doesn’t appear to be happening: a large and permanent reduction in Russian production.

Oil traders and analysts from across the industry expect global demand to exceed supply in the second half of 2023, which will drain inventories and push prices towards $100 a barrel. The views are largely based on estimates of a rebound in Chinese consumption when the Asian giant’s economy reopens, but also on assumptions that Russian manufacturing will collapse amid international sanctions — a prediction Moscow has so far resisted.

Ukraine restores power to nuclear power plant after attack (14:26)

The national grid operator Ukrenergo announced on Telegram that the power supply to the Zaporizhia nuclear power plant, which was occupied by Russia, has been restored. Rafael Mariano Grossi, director-general of the International Atomic Energy Agency, said the plant was running on emergency diesel after it was disrupted by the Russian missile attack.

“It can’t go on like this,” Grossi told the UN agency’s board of governors in comments posted to Twitter. “Every time we throw the dice – and if we let that happen again and again, then one day our luck runs out.” It is the sixth time that Europe’s largest nuclear power plant has lost all external power supply and has to tap emergency resources, he said.

European Union Energy Commissioner Kadri Simson will summon the bloc’s 27 energy ministers and Ukraine’s Energy Minister Herman Halushenko for a virtual phone call at 4 p.m. to discuss the incident, according to a person familiar with the matter.

EU halts search for billionaire fortunes (2:07 p.m.)

The EU is struggling to find and freeze the assets of sanctioned Russian billionaires, with the total rising only slightly in recent months.

The bloc has frozen €20.9 billion in assets so far, even as the EU has imposed ten rounds of sanctions on Russia since Putin’s invasion of Ukraine more than a year ago. Back in October, the bloc reported that around €17.4 billion had been frozen.

Power plants damaged in eight regions: Prime Minister of Ukraine (1:58 p.m.)

Russia’s attack damaged power generation and distribution facilities in eight Ukrainian regions, even though the country’s energy system as a whole was operational, Ukrainian Prime Minister Denys Shmyhal told Telegram.

“Repair teams are on site, special attention is being paid to restoring power to Kharkiv,” Shmyhal said.

Germany Identifies Ship Possibly Involved in Nord Stream Bombing (12:54 p.m.)

German authorities said they searched a ship that may have been transporting explosives used in last year’s attack on the Nord Stream pipelines, signaling an investigation could reveal more about who was behind it. Traces and objects found during a search of a ship from January 18 to 20 would be examined, the federal prosecutor announced on Thursday. It was said that no investigations were being carried out against Germans who work for the company that rented the ship.

“The identity of the perpetrators and their motives are the subject of ongoing investigations,” said the federal prosecutor. “Especially on the question of whether this is a state-sponsored action, no concrete statements can be made at the moment.”

Russia Has Resources for Two Years of War: Lithuania (12:50 p.m.)

According to Lithuanian intelligence estimates, Russia has enough resources and capabilities to maintain its war in Ukraine at its current intensity for two more years.

“Russia is likely preparing for a protracted conflict no matter what the cost,” Lithuania’s intelligence service said in a report assessing threats to national security. The Kremlin is increasing its army and defense spending to prepare for a long-term conflict with Ukraine and the West, sources said.

The highly militarized Russian exclave of Kaliningrad, which borders Lithuania, remains the country’s greatest threat, the report said, adding that while ground deployment in Kaliningrad has been reduced, air and naval forces have been unaffected by the war.

Russia still has many questions about the grain deal (10:51 a.m.)

Kremlin spokesman Dmitry Peskov said many questions remain about the implementation of the United Nations-brokered grain deal, Russia’s Tass news agency reported. The agreement, whose 120-day term ends March 18, has enabled the shipment of more than 20 million tons of Ukraine’s crop since it was negotiated last July.

Peskov said there were no plans for talks between Russian President Vladimir Putin and UN Secretary-General Antonio Guterres, who during a visit to Kiev this week stressed the importance of renewing the Black Sea Agreement.

Grain Traders Bank on Black Sea Agreement Extension (9:18 am)

Markets are betting that grain trading will be extended. The deal can be extended for another 120 days after March 18 if neither side tries to change or cancel the pact.

Wheat and corn futures — the two main crops shipped through the corridor — have fallen in recent weeks on prospects for plentiful supplies. Wheat has hit its lowest level since 2021, also pressured by big Russian and Australian harvests.

Read more: Grain traders bet on extension of important grain deal with Ukraine

Ukraine vows to keep fighting for Bakhmut (8:47am)

Ukraine will hold the line in Bakhmut “until it becomes impossible,” Foreign Minister Dmytro Kuleba said in an interview with Italian newspaper La Repubblica and other media.

“Nobody will be sacrificed,” and if there is a “specific threat of encirclement,” the decision could be reviewed, he said. Still, he said, “If we can still fight in Bakhmut, we must fight.”

Russia Fired 81 Missiles Thursday, Ukraine Says (8:44am)

Of these, Ukraine shot down 42 missiles and four drones, Commander-in-Chief of the Ukrainian Armed Forces Valeriy Zaluzhnyi said on Telegram. This included six Kinzhal missiles fired by Russian jets, he said.

Russian missile kills five people in the Lviv region (08:42)

A rocket killed at least five people in their homes near Lviv in western Ukraine, regional governor Maksym Kozytskyi said on Telegram.

Salvage operations were underway and more people may remain buried under the rubble. The resulting fire destroyed three homes, he said.

Russian Kinzhal Missile Hits Kyiv, Authorities Say (7:07 am)

Russia has fired Shahed drones and virtually all available missiles against Ukraine, the military administration of the city of Kyiv said in the telegram.

During the seven-hour air raid alert, the capital’s air defenses shot down all Russian single-attack drones and cruise missiles. However, according to the statement, a Kinzhal hypersonic missile struck infrastructure in the capital. Rocket debris injured two people and damaged cars in western Kiev.

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