Ukraine Latest: British Guard Who Spied for Russia Jailed in UK

(Bloomberg) -- A few days before Russia’s invasion hits the one-year mark, Ukraine’s growing need for fresh military equipment and ammunition is dominating the conversation as world leaders gathered at the Munich Security Conference. 

President Volodymyr Zelenskiy called on NATO allies to speed up weapons deliveries in anticipation of an expanded Russian offensive in the spring. Germany and France indicated they’re ready to dig in for a long war. 

The UK estimated that some 175,000 to 200,000 Russian forces have been killed or wounded since the invasion, with the death toll as high as 60,000. Russia’s refineries, shrugging off the impact of Western sanctions, are processing more oil — but Moscow’s broader economy is under pressure.  

(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)

Key Developments

• Ukraine Clears Hurdle to Begin Talks on Fully Fledged IMF Loan
• The Post-Cold War Era Is Gone. A New Arms Race Has Arrived
• Ukraine’s Allies Brace for Long War as Zelenskiy Calls for Speed
• Putin’s War to Lop $190 Billion Off Economy in Delayed Reckoning
• Russian Refineries Process More Oil Despite New Sanctions
• Russian Shadow Fleet Emerges From Data on Empty Oil Tankers

On the Ground

Russia launched 41 missiles at Ukraine over the past day, including five on Kharkiv, Ukraine’s General Staff said on Facebook, adding that 16 rockets were shot down. Five civilians died and nine were injured on Thursday in Bakhmut, Deputy Prime Minister Iryna Vereshchuk said on Telegram, calling for the 6,000 people who remain in the eastern town to evacuate immediately.

(All times CET)

Harris Meets With Macron on Ukraine, NATO (2:40 a.m.)

Vice President Kamala Harris, in Germany for the Munich Security Conference, met with French President Emmanuel Macron on Friday and they “reaffirmed the importance of continued support for Ukraine and imposing costs on Russia for its brutal invasion,” according to a White House account of the meeting.

The two leaders also discussed “the strength of NATO and U.S.-European relations” as well as the challenges posed by China and cooperation on climate policy, the White House said. Harris is to address the security conference on Saturday. 

President Joe Biden will travel to Poland next week.

IMF Applauds Ukraine Progress on Reforms (8:35 p.m.)

Ukrainian authorities had a strong performance meeting the targets contained in the nation’s four-month, non-cash program with the International Monetary Fund, Gavin Gray, the IMF mission chief for Ukraine, said in a statement.

“The authorities are making progress in reforms to strengthen governance, anti-corruption and rule of law, and lay the foundations for post-war growth, although the agenda of reforms in these areas remains significant,” Gray said. 

The staff assessment requires approval by the IMF’s management. A full-fledged IMF loan would support Ukraine’s efforts to join the European Union, Gray said. 

Earlier story: IMF Weighs Ukraine Aid Package Worth as Much as $16 Billion

Scholz, Macron Reinforce Pledges of Support (4:57 p.m.)

Germany and France warned that Russia’s war could drag on well into the future as the leaders reinforced their support for Kyiv, while Ukraine’s leader made a plea for speeding up weapons deliveries. 

“It is wise to prepare for a long war,” German Chancellor Olaf Scholz said at the Munich Security Conference. France’s Emmanuel Macron drove home the point, saying he’s prepared to intensify aid, but stressed that “we are ready to withstand a longer conflict.” 

Ukraine Seizes Rusal Alumina Plant, Deripaska-Linked Assets (3:20 p.m.)

Ukraine is confiscating a key alumina plant linked to United Co. Rusal International PJSC and other assets it says are owned by Russian billionaire Oleg Deripaska, under sanctions the government imposed after Russia’s invasion last year.

Read more: Ukraine Seizes Rusal Alumina Plant, Deripaska-Linked Assets

Russian Refineries Process More Oil Despite New Sanctions (4:20 p.m.)

Russian refineries have slightly raised crude-processing rates so far this month, signaling that the European import ban and western price caps have yet to significantly impact the nation’s industry.

Read more: Russian Refineries Process More Oil Despite New Sanctions 

Dombrovskis Says EU Should Confiscate Sanctioned Russian Assets (4 p.m.)

The European Union should seize sanctioned Russian assets and use the funds to help with the reconstruction of Ukraine, European Commission Vice President Valdis Dombrovskis said in a Bloomberg Television interview.  

Dombrovskis said the EU is looking at ways to require banks and other institutions to report any Russian central bank assets they hold, confirming an earlier report by Bloomberg.  

Wagner Mercenaries Plead for Ammunition (3:30 p.m.)

Wagner Group mercenaries fighting in Ukraine appealed to Russia’s defense ministry to supply them with ammunition, with members of one artillery squad saying in a video posted online they had run out of shells. 

In another video posted on the Telegram channel of Wagner’s founder Yevgeny Prigozhin, a soldier in a white protective suit says “hundreds of our guys” are dying daily because “military bureaucrats” are failing to supply them with ammunition in time. The grisly video pans round to show a room full of corpses lying on plastic body bags.

People’s Party Cancels Italy Gathering After Berlusconi Remarks (3:25 a.m.) 

The European Peoples Party canceled an upcoming meeting of conservative politicians in Naples after recent comments about Ukraine by former Italian Premier Silvio Berlusconi. EPP President Manfred Weber announced the decision on Twitter, saying support for Ukraine “is not optional.” 

The leader of Italy’s EPP member Forza Italia, Berlusconi, who’d been expected to attend the gathering, said Ukrainian President Volodymyr Zelenskiy was to blame for Russia’s invasion. 

“If he had not attacked the two autonomous republics of Donbas this would have not happened,” the Ansa newswire cited Berlusconi as saying, referring to areas of eastern Ukraine controlled in recent years by Russian-backed separatists. “I have a very negative view of his behavior.” 

Retail Chain Auchan Supplied Russian Army: The Insider (2:30 p.m.)

The Russian branch of the French retail chain Auchan has been supplying goods to the Russian military in occupied regions of Ukraine, The Insider said in a report done in partnership with Le Monde and Bellingcat. 

Auchan sent goods to troops as “humanitarian aid” from its Russian warehouses, along with supplies collected by volunteers in the chain’s stores across the country, according to the report, which also said that it helped Russia’s military register and recruit its employees for the war mobilization effort. 

Auchan’s public relations department said the group doesn’t carry out, support or finance “charity” contributions for Russia’s armed forces, Le Monde reported.

Ukrainian Foreign Minister Dmytro Kuleba, who was among officials calling to boycott Auchan for its refusal to leave the Russian market in 2022, said he would raise the allegations with his French counterpart.

Scholz Once Again Presses on Battle Tanks (2:28 p.m.)

German Chancellor Olaf Scholz urged other nations to send battle tanks to Ukraine following Germany’s decision to send 14 Leopard 2A6 tanks.

“Everyone who is able to deliver such battle tanks should also do that now,” Scholz said in his opening speech at the Munich Security Conference. At the same moment he reaffirmed his government’s commitment to raising Germany’s defense spending up to 2% of gross domestic product.  

Finland to Send Heavy Weapons (2:25 p.m.)

Finland is preparing its 13th package of military aid to Ukraine, which will contain heavy weapons, Prime Minister Sanna Marin told reporters in Vienna. Finland has a 1,300-kilometer (800-mile) border with Russia. 

“It seems it’s gone somewhat unnoticed that Finland’s military aid to Ukraine is, per capita, significantly larger than Germany’s and, per capita, similar to the volumes donated by Poland,” President Sauli Niinisto said at the Munich Security Conference. 

Zelenskiy Bracing for Intensified Attacks (2:11 p.m.)

Ukrainian President Volodymyr Zelenskiy called on NATO allies to speed up weapons deliveries as Russian attacks intensify, telling delegates at the Munich Security Conference that there is “no alternative” to Ukrainian victory for global security.

“We need to hurry up, we need the speed of our agreements, speed of our delivery,” Zelenskiy in a virtual address.

Belarus Ready to Produce Russian-Type Fighter Jets (1:40 p.m.)

Belarus is ready to start producing Su-25 fighter attack aircraft with technological assistance from Russia, President Alexander Lukashenko told Vladimir Putin during their meeting in Moscow, according to state news agency Belta. 

Belarus is fulfilling 100% of its defense and security obligations to Russia, said Lukashenko, who allowed the nation to be a staging ground for Russia’s invasion of Ukraine a year ago. Russian troops have been training in Belarus for months. 

British Embassy Guard Who Spied for Russia Jailed in UK (12:36 p.m.)

A British security guard who spied for Russia at the country’s embassy in Berlin was sentenced to more than 13 years in prison on Friday.

David Smith, who collected a range of highly sensitive information from and about the embassy with the intention of supplying it to Russia, pleaded guilty to multiple breaches of the UK’s Official Secrets Act. 

Read more: British Embassy Guard Who Spied for Russia Jailed in UK 

Poland Ready to Offer MiG-29 Jets to Ukraine (12:30 p.m.)

Poland is ready to talk about handing over its MiG-29s to Ukraine “today,” as the post-Soviet aircraft don’t require special training for Ukrainian pilots, President Andrzej Duda said in a Polish television interview. 

While Poland is ready to train Ukrainian pilots to fly US-made F-16 fighter jets, he is cautious about ideas to transfer Poland-based F-16s to Ukraine since his country has only 48 of the aircraft. 

A brigade of Leopard tanks that Poland helped organize should be ready to operate in Ukraine in a month, he said.

Germany Disappointed by Lack of Tank Commitments (12 p.m.)

Defense Minister Boris Pistorius said Germany’s government is surprised and disappointed by some allies’ “reticence” in contributing to an effort to supply Ukraine with Leopard 2 battle tanks.

“The pledges did not come in the magnitude we had hoped for” at a meeting of defense ministers in Ramstein last month, Pistorius told Der Spiegel. 

Only Germany and Portugal have committed to sending the tank’s more-modern A6 version, while Poland is leading efforts to put together a battalion of the older A4s, equivalent to 31 machines.   

Ukraine to Receive Fewer Battle Tanks From Allies Than Promised

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