U.S. to give Ukraine $500 million in direct aid; Russia’s pledge to scale back met with skepticism

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U.S. to give Ukraine $500 million in direct aid; Russia’s pledge to scale back met with skepticism

Russian attacks on Ukraine are continuing after Moscow said it would reduce its military activity in some parts of the country.

Russia said Tuesday that it would cut back its military activity near Kyiv and the northern city of Chernihiv — but the U.S., the U.K. and Ukraine have expressed skepticism over Moscow’s pledge to scale back the fighting.

Russian and Ukrainian delegates held face-to-face talks in Istanbul yesterday, with Ukraine’s delegation calling for an international agreement under which other nations would guarantee Ukraine’s security.

Satellite images show Mariupol before and after destruction

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Satellite images from Maxar Technologies show total destruction from above in Mariupol. Here is a before and after view.

President Joe Biden told Ukrainian President Volodymyr Zelenskyy that the United States plans to provide his government with $500 million in direct budgetary aid, according to a White House readout of Biden’s secure call with the Ukrainian leader.

In the world of international assistance, direct budgetary aid is relatively rare. More often nation-to-nation aid comes in the form of already paid-for things, like food or weapons or subject matter experts, and monetary loans. Direct budgetary aid, on the other hand, generally comes with few strings attached, the closest thing to a cash gift from one government to another.

The monthlong Russian invasion of Ukraine has severely hampered Kyiv’s ability to collect tax revenue and remain operational, making this kind of cash aid especially important.

Congress recently approved a separate, more than $13 billion package of supplemental aid for Ukraine. But nearly all of that money is already committed to specific things, like refugee housing, defensive arms and medical supplies.

The U.K. announced new legislation that aims to prohibit maintenance on aircraft or yachts belonging to sanctioned Russian elites and their businesses.

The new measures come after Britain designated more than 1,200 individuals and entities close to Russian President Vladimir Putin.

“There is no doubt that Putin and his elite have been surprised by the strength of our sanctions,” U.K. Foreign Secretary Liz Truss wrote in a statement.

“We will continue to ramp up the pressure so long as Russian troops are in Ukraine, targeting not only the businesses of oligarchs but also their assets and international lifestyles,” Truss added.

America’s top commander in Europe gave his best assessment as to why Russian President Vladimir Putin decided to invade Ukraine.

“I think he felt like he had the popular support of the citizens of Russia. I also felt like he was attempting to take advantage of fissures that could have appeared in NATO as a result of the post-Afghanistan environment,” U.S. Air Force General and NATO Supreme Allied Commander Tod Wolters said during testimony before the House Armed Services Committee.

“I also think it has to do with his age and its efficacy. All those combined together put him in a position where he elected to go at this time,” Wolters said when asked why Putin chose Feb. 24 to invade Ukraine.

“The overriding variable in my view is the fact that he believes that he has popular support from his citizens,” said Wolters, who also serves as commander of U.S. European Command.

— Amanda Macias

Ukrainian President Volodymyr Zelenskyy’s hourlong secure call with U.S. President Joe Biden finished just after noon, the White House said.

Ten minutes later, the Ukrainian leader tweeted that he and Biden had discussed a number of topics, most notably new sanctions on Russia and specific materiel that Ukraine needs.

The White House has been working on a package of new sanctions to impose on Russia that would be aimed at making it harder for Russia’s military to get parts and material.

— Christina Wilkie

America’s top commander in Europe described Russia’s largely stalled military campaign and overall battlefield performance in Ukraine as “baffling.”

“There was a degree of miscalculation and it’s evident by the performance of the Russian military up to this point,” U.S. Air Force General and NATO Supreme Allied Commander Tod Wolters said during testimony before the House Armed Services Committee.

“This one has been baffling,” said Wolters, who also serves as commander of U.S. European Command. He added that the U.S. military should “be prepared to take a really good look” at Russia’s military force posture.

Since the Kremlin’s Feb. 24 invasion of Ukraine, Russian forces have been increasingly beset by logistical and command and control issues, as well as morale problems.

— Amanda Macias

The art of war: Murals show support for Ukraine

Artists around the world created murals to show support for Ukraine as Russia’s invasion continues.

“We have committed 100 switchblade tactical unmanned aerial systems to be delivered in the most recent package of presidential drawdown,” U.S. Assistant Secretary of Defense for International Security Affairs Celeste Wallander said in testimony before the House Armed Services Committee.

Pentagon spokesman John Kirby told reporters last week that the drones would arrive in Ukraine soon, but declined to elaborate further.

There are two variants of the weapon, the Switchblade 300 and the 600, manufactured by U.S.-based firm AeroVironment. It was not immediately clear which variant of the weapon the U.S. deployed to Ukraine.

The 300 version is designed to strike small targets. It can fit in a rucksack, weighs a little over 5 pounds and has a range of 10 miles. The 600 variant of the weapon is designed to destroy tanks and other armored vehicles. It weighs slightly more than 120 pounds and has a range of more than 40 miles.

— Amanda Macias

President Joe Biden is slated to speak to Ukrainian President Volodymyr Zelenskyy around 10:45 a.m. ET, the White House said in a statement.

The two leaders are planning to “discuss our continued support for Ukraine in the face of Russian aggression.”

The call follows Russia’s claim Tuesday that it would “dramatically reduce” its military activity around the capital Kyiv and the northern city of Chernihiv.

The announcement from the Russian Ministry of Defense was met with deep skepticism by officials in both Washington and Kyiv.

— Christina Wilkie

The aftermath of shelling in Donetsk

Emergency specialists work at a residential building damaged by shelling in the separatist-controlled city of Donetsk during Russia’s war in Ukraine.

Russian Foreign Minister Sergey Lavrov touted a move toward a new world order during a visit to China on Wednesday.

“We are living through a serious stage in the history of international relations,” he said. “I am convinced that the outcome of this stage will substantially clarify the international situation. We will move towards a multipolar, equitable and democratic world order with [China] and other like-minded nations.”

China, a close ally of Russia, has so far refused to fully denounce Russia’s unprovoked invasion of Ukraine, and has not joined the coordinated move to impose economic sanctions on Moscow.

— Chloe Taylor

Russia is regrouping its troops away from Kyiv to concentrate on its offensive in eastern Ukraine, Ukraine’s armed forces have said in a new update.

Moscow was moving to increase the supply of troops in the Donetsk and Tavriya directions, the update said, while offensives were also underway in other parts of the country.

“In the northern direction, the occupier focused on shelling areas of Chernihiv and strengthening defensive positions,” Ukraine’s armed forces said.

Russia said Tuesday that it would cut back its military activity in and around Kyiv and the northern city of Chernihiv.

Oleksiy Arestovych, an advisor to the Ukrainian Presidential Office, said in a video message on Wednesday that Russia had ulterior motives for regrouping its troops away from the capital.

“The Russians are not simply removing their troops from Kyiv and from the north of Ukraine — they are transferring them to the Joint Forces Operation zone [in eastern Ukraine] and near Mariupol in order to have a qualitative and quantitative advantage in these areas,” he said, according to an NBC News translation.

Meanwhile, Oleh Synegubov, governor of the Kharkiv region, said Wednesday that Russian forces had been “constantly firing” on multiple districts around Kharkiv, and Ukraine’s Human Rights Ombudsman said every day Ukrainian towns and cities were being “shaken by constant shelling and bombing.”

— Chloe Taylor

China says relations with Russia are withstanding ‘test of international turbulence’: State-controlled media
Chinese Foreign Minister Wang Yi said Wednesday that China-Russia relations have withstood the test of international turbulence, according to Chinese state-run television channel Phoenix TV.

According to Phoenix TV, he made the comments during a meeting with his Russian counterpart Sergey Lavrov.

Wang also said that China’s relations with Russia “maintained the correct direction [and] continue to develop resiliently,” according to the Chinese broadcaster.

China, a close ally of Russia, has so far refused to fully denounce Russia’s unprovoked invasion of Ukraine, and has not joined the coordinated move to impose economic sanctions on Moscow.

— Chloe Taylor

The Kyiv region has been hit by more than 30 shelling strikes over the past 24 hours, officials said Wednesday.

“More than 30 shellings of housing estates and infrastructure facilities have been recorded,” the Kyiv Regional State Administration said in a Telegram post translated by NBC News.

Authorities said in the post that the most dangerous areas in the region were the settlements along the Zhytomyr highway, as well as the north of Vyshhorod district and the settlements of Baryshivska and Velikodimerska on the outskirts of the capital.

On Tuesday, Russia said it would scale back its military operations in and around Kyiv.

— Chloe Taylor

An estimated 45% of the Ukrainian population is worried about finding enough to eat, the U.N.’s World Food Programme said Wednesday.

The organization said it was already supporting 1 million people on the ground in Ukraine by supplying them with food.

“Just one month ago, we had no presence on the ground, no staff, no network of suppliers or partners. To build an operation from the ground up and get food to one million people seemed a monumental challenge,” Jakob Kern, WFP’s emergency coordinator for Ukraine, said in a press release.

“Now that the structures are in place, we need the funding to keep delivering assistance, and to help 3 million people in need.”

— Chloe Taylor

A further 222 children have been injured, officials said, noting that “children in the Kyiv region suffered the most.”

— Chloe Taylor

Russian State Duma chairman and speaker Vyacheslav Volodin said Wednesday that Moscow should consider asking for payments in rubles for more of its exported goods.

The Kremlin has repeatedly demanded that so-called “unfriendly” countries pay in rubles for gas, a demand that has been rejected by G-7 countries.

“European politicians need to stop talking, stop looking for excuses why their countries cannot pay in rubles,” Volodin said on Telegram Wednesday, adding that Russian President Vladimir Putin “made the right decision” by demanding payments for gas be made in the Russian currency.

Most countries currently pay for Russian gas in euros or dollars.

“It would be right, where it is profitable for our country, to expand the list of goods exported for rubles: fertilizers, grain, oil, oil, coal, metals, timber, etc.,” Volodin added. “I appeal to colleagues from the national parliaments of unfriendly countries: take the issue of ruble settlements more seriously.”

Volodin, an influential lawmaker in the Russian political sphere, has been an outspoken supporter of Moscow’s military action in Ukraine.

— Chloe Taylor

More than 4 million refugees have fled Ukraine since Russia invaded the country in late February, the U.N.’s Office for the High Commissioner for Refugees said Wednesday.

Viasheslav Chaus, governor of Chernihiv, said Wednesday that Russian forces “spent the whole night” attacking the region despite Moscow’s claims yesterday that it would pull troops back from Kyiv and Chernihiv.

“Yesterday, the Russians publicly stated that they were reducing their offensive actions and activity in the Chernihiv and Kyiv areas. Do we believe that? Of course not,” Chaus said in a Telegram post.

“The enemy demonstrated a ‘decrease in activity’ in the Chernihiv region by striking Nizhyn, including by air, and spent the whole night hitting Chernihiv,” he added. “Civil infrastructure has been destroyed again, libraries, shopping malls and other facilities have been destroyed, and many houses have been destroyed. Because, in fact, the enemy roamed Chernihiv all night.”

CNBC has not been able to independently verify these reports. A spokesperson for the Russian government was not immediately available for comment.

Germany is bracing for a potential disruption of natural gas supplies, activating the first “early warning” stage of an emergency amid a dispute with Russia.

German Economy Minister Robert Habeck said in a news conference the measure was the first of three stages and does not yet imply a state intervention to ration gas supplies.

Habeck called for consumers and companies to reduce consumption, however, reportedly saying that “every kilowatt hour counts.”

It comes as Russian President Vladimir Putin urges so-called “unfriendly” countries to pay in rubles for Russian gas. The G-7, which induces Germany, has rejected that demand.

Habeck has said Germany, which imported around 55% of its gas supplies from Russia last year, would not be able to achieve full independence from Moscow before mid-2024.

— Sam Meredith

U.K. Deputy Prime Minister Dominic Raab has expressed skepticism over Russia’s claims that it intends to scale back its military operations in some parts of Ukraine.

“We judge the Russian military machine by its actions, not just its words,” he told Sky News on Wednesday, saying the U.K. was not putting a lot of faith in Russia’s stated intentions.

“There’s some skepticism that [Russia] will regroup to attack again rather than seriously engage in diplomacy or anything of that nature,” Raab added. “Of course, the door to diplomacy will always be left ajar, but I don’t think you can trust what is coming out of the mouth of Putin’s war machine.”

— Chloe Taylor

Sanctions on Russia to continue until we see de-escalation, Italy’s Di Maio says

Italian Foreign Minister Luigi Di Maio told CNBC’s “Squawk Box Europe” that sanctions on Russia will continue until Italy sees military de-escalation in Ukraine.

Japan skeptical over Russian pledge to cut military operations
Japan has expressed skepticism over Russia’s pledge to reduce its military operations in and around the Ukrainian capital.

“We are aware that during the ceasefire negotiations between Russia and Ukraine on March 29, both sides made certain concessions, with the Russian side indicating its intention to drastically reduce military operations in and around the capital, Kyiv,” Japan’s Chief Cabinet Secretary Hirokazu Matsuno told reporters at a briefing on Wednesday.

He noted that U.S. President Joe Biden and other U.S. government officials were taking a wait-and-see approach to Russia’s stated intentions, with some saying this is merely a repositioning of Moscow’s troops and not an actual withdrawal.

“Japan shares the belief that it is important to achieve a concrete cease-fire as soon as possible, and we will continue to monitor the situation with great interest, and at the same time, we will provide the various types of support to Ukraine that we have already announced in a prompt and steady manner,” Matsuno said. “In order to immediately stop Russia’s aggression and ensure the withdraw of its troops it is important for the international community to work together and continue to take strong measures against Russia.”

— Chloe Taylor

The European Union wants to put pressure on China to be neutral with its stance over Russia’s recent invasion of Ukraine, sources with knowledge of the matter told CNBC ahead of a virtual meeting between Brussels and Beijing on Friday.

There is concern among western officials regarding the role that China might play in the war between Russia and Ukraine. The Chinese authorities have so far refused to fully denounce Russia’s unprovoked invasion of its neighbor — having abstained during a vote for a U.N. Security Council resolution condemning Moscow.

China has also supported Moscow’s complaints about NATO expansion and U.S. officials have also said that Russia has asked China for military and economic support — something that the Kremlin and Beijing have both denied.

European Council President Charles Michel and European Commission President Ursula von der Leyen are speaking Friday with China’s Prime Minister Li Keqiang at 10 a.m. Brussels time and then with Chinese President Xi Jinping at 2 p.m.

The goal of the summit is “ensuring, in a way, the neutrality of China so they don’t help Russia,” an EU official, who did not want to be named due to the sensitivity of the discussions, told CNBC Tuesday.

Read the full story here.

— Silvia Amaro

Oleksiy Arestovtch, an advisor to the Ukrainian President’s Office, said Wednesday morning that ongoing talks between Russia and Ukraine would do nothing to decelerate the war.

“Negotiations will in no way slow down the war and will not cancel it,” he said on Telegram in the early hours of Wednesday morning. “This is a separate line that prepares a future peace agreement, because any war, even a hundred years’ war, ends with a peace agreement.”

He noted, however, that “serious success” had been achieved at Tuesday’s talks in Istanbul.

“Ukraine has improved its pre-war position in all areas of consultation,” Arestovtch said. “At some point the negotiating and military lines will converge and this will definitely be a victory for Ukraine.”

But he expressed skepticism over the pledge Russia made at the meeting to scale back its military activity near Kyiv and the city of Chernihiv.

“Russian troops will be targeting the cities until the very end of the conflict,” he said. “Including Kyiv.”

— Chloe Taylor

Ukraine’s armed forces said in an update Wednesday morning that more than 1,000 Russian troops had been transferred from occupied Georgia to reinforce Russia’s military presence in Ukraine.

“The enemy continues to conduct full-scale armed aggression against our state,” officials said in the update, adding that Russian troops “continue to loot the homes and apartments of local residents, detain pro-Ukrainian activists and government officials in Ukraine.”

CNBC has not been able to independently verify these reports.

A spokesperson for the Russian government was not available for comment when contacted by CNBC.

Meanwhile, Ukrainian officials said on Telegram Wednesday morning there had been shelling attacks in Kyiv’s Brovary district yesterday, which resulted in a fire. It was not specified if there were any casualties.

Officials also said Russian troops had fired on residential neighborhoods in the Luhansk region early this morning. Authorities said there were “victims” in the attack, and were clarifying the information on casualties resulting from the attack.

“Rescuers are trying to save the living,” Luhansk Governor Serhii Haidai said.

— Chloe Taylor

Russian units are suffering “heavy losses” and have been forced to return to Belarus and Russia to reorganize and resupply, according to the U.K. Defense Ministry.

“Such activity is placing further pressure on Russia’s already strained logistics and demonstrates the difficulties Russia is having reorganizing its units in forward areas of Ukraine,” showed the ministry’s latest intelligence report.

However, Russia is likely to continue mass artillery and missile strikes to compensate for its “reduced ground manoeuvre capability,” it said in a Twitter post. The U.S. previously warned that Russia’s pledge to move troops away from Kyiv is “not a real withdrawal.”

“Russia’s stated focus on an offensive in Donetsk and Luhansk is likely a tacit admission that it is struggling to sustain more than one significant axis of advance,” the U.K. Defense Ministry added.

— Goh Chiew Tong

 

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