Ukraine Latest: US Will Provide $325 Million More in Weapons

(Bloomberg) -- The Chinese government denied reports in western media that the country has exported drones to aid Russia’s invasion of Ukraine as groundless – and accused the US of engaging in the spread of “fake information.”

Senior Russian officials meanwhile privately raised concerns some 10 months ago about the risks of becoming too dependent on Chinese technologies after US and European Union sanctions shut off access to alternative suppliers.

The Biden administration announced a new package of weapons for Ukraine valued at as much as $325 million to be taken from US stockpiles, the 36th such drawdown.

Key Developments

• US Task Force Seeks to Transfer Seized Assets to Ukraine
• Russian Memo Said War Leaves Moscow Too Reliant on Chinese Tech
• Ukraine’s Key Black Sea Crop Exports Resume After Latest Halt
• China Is Boosting Imports of Ukrainian Corn Through Black Sea
• Ryanair CEO Sees Ukraine Aviation Opportunity Once War Ends

(All times CET)

US Task Force Seeks to Transfer Seized Assets (6:05 a.m.)

The chief of the Justice Department unit charged with seizing assets connected to violators of sanctions against Russia said the program “cuts the purse strings from the Kremlin,” and that Congress could help it to do more. 

Andrew Adams, the director of Task Force KleptoCapture, said in an interview Wednesday on Bloomberg Television’s“Balance of Power” that lawmakers could provide the authority to funnel proceeds of the seizures export control violations to Ukraine. 

The Justice Department currently only has the authority to convey proceeds to Ukraine from assets seized from sanctions evasions.

US to Provide Ammunition in Latest Round of Aid (7:42 p.m.)

White House press secretary Karine Jean-Pierre said the latest package of weapons for Ukraine includes “more ammunition for US- provided HIMARS rocket systems and anti-armor systems as well as additional artillery rounds.”

US Aims to Send Russian Asset Funds to Ukraine (5:54 p.m.) 

The US Justice Department wants more authority from Congress to give Ukraine money obtained from the seizure and sale of wealthy Russians’ assets, Deputy Attorney General Lisa Monaco said. The department has limited authority to use proceeds from those assets but can do so in cases involving the evasion of sanctions against Russia, Monaco told the Senate Judiciary Committee during a hearing Wednesday. 

“We frankly would like to be able to expand that authority,” Monaco said. There are potentially millions more that could be given to Ukraine from assets that are confiscated in response to other crimes, such as export controls violations — if the Justice Department had the authority, Monaco said.

Shipping Russian Oil to India Cheapest in Weeks (2:49 p.m.) 

The cost of delivering Russia’s flagship oil to India dropped to its lowest since at least the start of March, according to Argus Media Ltd., whose data are pivotal to a Group of Seven price cap on the nation’s petroleum sales. 

Hauling about 730,000 barrels of Urals crude from Russia’s Baltic port of Primorsk to India’s west coast would cost oil traders $10.60 a barrel, data provided by Argus show.  That represents a drop of 13% drop since March 3, when the price-reporting agency began new freight assessments for the trade route. 

US Defense Chief ‘Fully Anticipates’ Sweden in NATO (2:20 p.m.) 

US Defense Secretary Lloyd Austin said he “fully anticipates” Sweden will be a member of NATO in time for a summit of the alliance’s leaders in Vilnius in July and encouraged Turkey and Hungary to ratify the bid as soon as possible.

Austin said he wouldn’t predict when Turkey would ratify the nation’s bid to join the alliance, but added: “I’m sure these countries will reach that decision and I feel confident they’ll reach it before July.”

Zelenskiy Visits Troops (1:58 p.m.) 

President Volodymyr Zelenskiy visited Ukraine’s Volyn region to inspect troops stationed near the border with Poland and Belarus. He thanked personnel for protecting the nation’s frontier. 

The visit followed a trip to the eastern city of Avdiyivka in the embattled Donetsk region that’s on the frontline of fighting.

Ukraine’s Black Sea Crop Exports Resume (1:50 p.m.) 

Ukraine’s Black Sea crop shipments resumed, following another brief halt that sparked fresh worries about future cargoes from the key exporter.

Inspections of vessels under a safe-passage corridor are again taking place after a two-day stoppage, according to Ukraine and the joint coordination center which oversees the checks. Kyiv has blamed the disruption to the initiative — which has been crucial for bringing down global food-commodity costs from records reached after Russia’s invasion — on Moscow. Wheat futures declined.

EU to Examine Grain Trade Rules After Ukraine Import Bans (1:26 p.m.) 

The EU will take preventive measures under appropriate trade rules for wheat, corn, sunflower and rapeseed to address the situation, after several member states banned imports of grain from Ukraine. 

European Commission President Ursula von der Leyen is offering three proposals to address the situation. The bloc has already provided a support package of €56 million ($61 million) for most affected farmers — and is now preparing a second package of €100 million for five nations.

China Denies It Sold Drones to Help Russia’s Military Effort (1:24 p.m.)

The Commerce Ministry issued the denial, calling reports to the contrary groundless and fake, according to a statement, and defended Beijing’s “strict control” of drone exports to prevent the hardware from being used in conflicts. 

China will strengthen export controls for drones, the statement said, urging other nations to join in preventing unmanned aircraft from being deployed in Ukraine.  

Bank of Cyprus to Close Accounts of Russian Customers (12:24 p.m.) 

Bank of Cyprus Holding Plc will close all accounts held by Russians who are not resident in this EU country. The action applies to some 4,000 clients and “follows the suspension of Russia’s membership by the Financial Action Task Force and the designation of Russia as a non-cooperative tax jurisdiction by the European Union,” the bank said in a statement.

Total deposits at the island’s largest lender stood at €19 billion ($21 billion) on Dec. 31. Of that, about 3% was from Russian or Belarusian clients, according to the lender. 

China Is Boosting Imports of Ukrainian Corn Through Black Sea (12:06 p.m.) 

China, the biggest corn importer, is buying more of the grain from Ukraine, even as Beijing strengthens its strategic relationship with Russia.

About 1.5 million tons of corn left Ukrainian ports bound for China under the Black Sea Grain Initiative in March and so far in April, according to data from the Joint Coordination Centre for the agreement. That brings the amount since the start of the year to more than 3 million tons. By comparison, shipments were about 1.7 million tons from September to December, the data show.

Estonia Hosts World’s Largest Cyber War Games (11:50 a.m.)

Over 3,000 participants from locations in 38 nations will practice defending a fictional country from simulated cyber attacks at a NATO-affiliated exercise based in Tallinn this week. The annual Locked Shields exercise will involve thousands of attacks on mock critical infrastructure systems, such as banks and power plants.

“Ukraine has strong digital competences, and that has meant that their state can keep delivering essential digital services even in wartime,” Estonian Defense Minister Hanno Pevkur said in a statement.

(An earlier version of this story corrected an item to say Zelenskiy’s visit was in northwestern Ukraine.)

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