Ukraine Latest: US Is Poised to Send Patriot Defense Batteries

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(Bloomberg) -- The US is poised to send Patriot air and missile defense batteries to Ukraine pending final approval from President Joe Biden, two US officials said ahead of a call between Defense Secretary Lloyd Austin and top Ukrainian military officials.

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European Union nations reached a preliminary agreement to clear the way for Ukraine to receive aid from the bloc valued at €18 billion ($19 billion) while Emmanuel Macron announced a commitment of 1 billion euros of donations from a delegation of some 70 governments and international bodies to help the country through the winter.

The funds will go toward fixing energy infrastructure, transport, health, water and food, the French president said after hosting an international donors’ conference in Paris.

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

Key Developments

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  • EU Breaks Logjam on Ukraine Aid With Deal on Funds for Hungary

  • EU Seeks to Break Deadlock Over Capping Natural Gas Prices

  • Russia, North Korea Restore Rail Trade Halted Since Early 2020

On the Ground

Russian forces are focusing on offensive operations on the Lyman, Bakhmut, Avdiyivka and Zaporizhzhia axes, Ukraine’s General Staff said in a regular update. A bridge near the Russia-occupied city of Melitopol was damaged in an explosion Monday, according to local authorities. Russia continued shelling the southern city of Kherson, according to the Ukrainian military.

(All times CET)

Austin, Sullivan Call Top Ukrainian Military Chiefs (4:15 a.m)

US Defense Secretary Austin, National Security Advisor Jake Sullivan and the head of the Joint Chiefs of Staff spoke with their Ukrainian counterparts, according to a readout from the Pentagon late on Tuesday Washington time. The call comes with the US preparing to send Ukraine Patriot missile systems to find off Russian attacks.

The leaders “discussed Ukraine’s priorities for security assistance,” according to the US statement, which offered few other details. Defense Minister Oleksii Reznikov took part in the call along with General Valerii Zaluzhnyi and Andrii Yermak, head of the presidential office.

US Charges Suspected Russia Security Officer With Sanctions Evasion (8:57 p.m.)

The US charged five Russian nationals, including a suspected Russian Federal Security Service officer, and two US nationals with conspiracy and other charges involving a global procurement and money laundering scheme on behalf of the Russian government, according to the Justice Department.

The defendants allegedly conspired to obtain military-grade and dual-use technologies from US companies for Russia’s defense sector and to smuggle sniper rifle ammunition in violation of US sanctions imposed earlier this year, the department said.

US Finalizing Arms Upgrade to Ukraine With Patriot Missiles (7:43 p.m.)

The US is poised to send Patriot air and missile defense batteries to Ukraine, two US officials said.

Ukraine’s government has urgently sought the system, produced by Raytheon Technologies Corp. and Lockheed Martin Corp., saying Patriots are needed to counter a relentless barrage of Russian missiles that have targeted its military as well as civilian and energy infrastructure.

The move to send the Patriot system may come within days, one of the officials said, but still requires a final sign-off by Biden and Defense Secretary Lloyd Austin. The decision was reported earlier by CNN.

Ukraine’s Economy May Shrink Up to 9% Amid Energy Attacks (6:41 p.m.)

Ukraine’s government expects the nation’s economy to fall by 3% to 9% in 2023 following a contraction of more than 30% this year in a worst-case scenario that envisages continuation of Russia’s airstrikes on the country’s power facilities, according to Prime Minister Denys Shmyhal.

If attacks on Ukraine’s energy infrastructure halt, the economy may show a slight rebound, he said in an interview with Bloomberg TV on Tuesday. That correlates with the forecast from the International Monetary Fund that sees a 1% increase in the country’s GDP in 2023.

The nation seeks to boost its grain exports by adding the port of Mykolayiv in the Black Sea to the list of seaports that could be used for shipments though the so-called grain corridor, Shmyhal said.

Ukraine Fears Russia May Restore Full Offensive Capability by February. (4 p.m.)

Russia is seeking to go back on the offensive by February, Ukrainian Foreign Minister Dmytro Kuleba said in an online briefing, citing the scale of Moscow’s military conscription and troop movements.

Russia “still wants to conquer all of Ukraine,” Kuleba said.

To prevent that from happening, Ukraine must strike Russian targets in occupied areas to destroy its military infrastructure and urgently needs more 155-mm caliber howitzers and cannons.

Zelenskiy Calls for Extra Sanctions to be Imposed on Russia Quickly (1:30 p.m.)

UK Sanctions Russians, Iranians After Ukraine Strikes (12:22 p.m.)

The UK government announced sanctions targeting Russian commanders, Iranian businessmen and officials involved in the production and supply of drones to the Kremlin, according to a statement.

UK Sanctions Russians, Iranians After Ukraine Strikes

Nestle Launches New Production in Ukraine (11:57 a.m)

Nestle plans a new production site in the town of Smolyhiv in the northwestern Volyn region, the company said in a statement. It will invest 40 million Swiss francs ($42.7m) in a noodle production facility that will employ 1,500 people.

Russia Ties Can be Renewed Post-War, Scholz Says (11:30 a.m.)

German Chancellor Olaf Scholz said it’s important that Russian citizens realize that economic ties with the west can be expanded again once the war ends, though he cautioned that this likely won’t happen anytime soon.

“One thing is clear: At present, the relations we had are being scaled back, scaled back and scaled back,” Scholz said late Monday in a speech in Berlin. “But a Russia that ends the war, and citizens in Russia who want a different future for themselves, also need the chance that in another time it will be possible to start economic cooperation again,” he added. “Only: that is not now.”

Meloni Vows to Send More Arms to Ukraine as War Drags on (10:48 a.m.)

Italian Prime Minister Giorgia Meloni said Italy will continue to support Ukraine militarily, because there are no signs Russia’s invasion of the country will ease anytime soon.

“The possibility of a cease-fire seems very limited, and while we support efforts in that direction in the meantime we need to continue to fully support Ukraine,” Meloni told Rome lawmakers ahead of an EU summit this week, the first she will attend as prime minister.

Ukraine Needs 1.5 billion Euro for Urgent Energy Fixes (10:47 a.m.)

Ukraine needs some €1.5 billion for urgent repairs to its energy system, which has been battered by Russian attacks — as well as energy equipment and electricity from the EU worth €800 million, Zelenskiy said in a video address to a conference in Paris.

“This is significant, but significantly less than the cost of a blackout in Ukraine,” Zelenskiy said. About 12 million people in Kyiv and in almost all regions of the country are cut off from electricity supply, according to Zelenskiy. “This is a typical situation for us. Every day we expect Russian strikes that can increase the number of outages.”

Eight Ships With Food Leave Odesa (9:53 a.m.)

Eight ships carrying 238,600 tons of agriculture products — part of the Black Sea Grain Initiative — left Odesa ports for Asia and Europe, the Ukrainian Infrastructure Ministry said on Telegram. Another 23 ships are currently in Odesa ports and are being loaded with 690,000 tons of food.

Russia Claims Ukraine Shelled City Klintsy, RIA Novosti Says (8:53 a.m.)

Ukrainian forces fired a rocket at the town of Klintsy in Russia, RIA Novosti reported, citing local authorities.

Klintsy is strategically situated 40 kilometers (25 miles) from both Belarus and Russia near a key supply route for Russian troops in Belarus. The Ukrainian side hasn’t commented on the reports.

Belarus Begins Snap Military Check (8:52 a.m.)

President Alexander Lukashenko ordered to a snap check of his armed forces’ military readiness, the country’s Defense Ministry said on Telegram.

Measures will involve organizing pontoon bridges over the Neman and Berezina rivers, as well as the movement of troops via main roads in unspecified locations, limiting public traffic. The military checkup is happening amid a renewed Russian military buildup in the country, which borders Ukraine.

All Nuclear Units Controlled by Ukraine Back in Operation (7:26 a.m)

All nine units at nuclear power plants located on the territory controlled by Ukraine are now back in operation, the Energy Ministry said.

The country’s energy system was hit in eight massive missile and drone attacks over the last few months that damaged almost half of the nation’s energy facilities. Ukraine now operates three nuclear power plants.

EU Nations in Deal to Allow Ukraine Aid (12:20 a.m.)

EU countries reached their preliminary deal on Ukraine aid after Hungary dropped its opposition in exchange for a reduction in penalties over graft concerns.

Hungary had been vetoing an €18 billion support package for Ukraine, a measure that requires the consent of all 27 EU members. As part of the deal struck among EU ambassadors, Hungary removed its block on the money.

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