Ukraine Latest: UN Says Grain Shipments Will Continue Thursday

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(Bloomberg) -- The United Nations said vessels loaded with grain are expected to move through Ukraine’s crop-export corridor on Thursday. President Volodymyr Zelenskiy called on the world to press Russia to allow operations of the Black Sea passage from Ukrainian ports.

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The UN had earlier called a halt to grain ships moving through the corridor after Russia warned that vessels weren’t safe using the route.

French President Emmanuel Macron pledged to provide additional air defenses to Ukraine and help rebuild energy infrastructure in a telephone call with Zelenskiy, who called the exchange “extremely important.”

Zelenskiy told a top European Union official visiting Kyiv, energy commissioner Kadri Simson, that Russian attacks “seriously” damaged 40% of Ukraine’s power infrastructure. Ukraine’s power grid operator announced plans for cuts on Tuesday in Kyiv, as well as in seven central and northern regions.

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Key Developments

  • Ukraine Grain Exports to Transit Black Sea Corridor Thursday

  • Conflict in Ukraine Moves Toward ‘War of Drones’ as Winter Looms

  • Grain Markets on Edge for Escalation After Russia Warns on Ships

  • Ukraine Crop-Export Inspection Pace Soars as Russia Steps Back

  • Holland & Barrett’s Russia-Linked Owner Buys Back 99% of Loans

On the Ground

Russian forces maintained an offensive toward the cities of Bakhmut and Avdiivka in the Donetsk region, while continuing to transfer individual units to Belarus, according to the Ukrainian General Staff. Russia has launched more than 400 Shahed-136 drones against Ukraine, more than 300 of which have been shot down, Yuriy Ignat, a spokesman for the Ukrainian Air Force, said in a video briefing. Russian officials in occupied Kherson are using shifting rhetoric to describe a Ukrainian threat to the Kakhovka hydroelectric dam, potentially to accelerate an evacuation from the west bank of the Dnipro river and eventual withdrawal of Russian forces, according to the Institute for the Study of War.

(All times CET)

Zelenskiy Calls for Protections for Grain Corridor (12:45 a.m.)

Zelenskiy, in his nightly address to the nation on Tuesday, said “the grain corridor needs reliable and long-term protection.” He spoke as the UN announced that the shipments on the Black Sea route would continue.

“We expect loaded ships to sail on Thursday,” the UN coordinator for the Black Sea Grain Initiative said in a tweet. No movements were planned for Nov. 2 under the initiative, he added.

Grain vessels continued to leave Ukraine on Monday and Tuesday, even after Moscow withdrew its support for the deal and the UN said the shipments would be halted. The UN on Tuesday called those movements “temporary and extraordinary.”

Zelenskiy, in his address, said “Russia should clearly know that it will receive a tough response from the world to any steps that disrupt our food exports. This is literally a matter of life for tens of millions of people.”

US Provides $47.6 Million for Mine Removal (10:40 p.m.)

The State Department has awarded $47.6 million to a California company that will help Ukraine find and remove landmines, unexploded shells “and other explosive hazards.”

The company, Tetra Tech Inc., will train Ukraine’s de-mining and explosive ordnance disposal teams “to international standards and provide them with the tools necessary to do their jobs,” the department said in a statement on Tuesday evening. According to Ukrainian government estimates, as much as 160,000 square kilometers of land may be “contaminated” with explosive devices, the department added.

Russia May Receive Surface-to-Surface Missiles From Iran, US Says (5:23 p.m.)

“We are concerned that Iran might be considering the provision of surface-to-surface missiles to Russia in addition to the drones,” John Kirby, spokesman for President Joe Biden’s National Security Council, told reporters in Washington. Iran has already provided Russia with drones used by the Kremlin to attack Ukraine.

UN Halts Flow of Ukraine Grain Export Ships on Wednesday (5:01 p.m.)

Wheat prices rose after the UN announced the decision, taken jointly with Turkey and Ukraine. It didn’t explain the reasoning but the move comes after a deal aimed at allowing for crucial Black Sea grain shipments unraveled and Moscow said ships’ safety couldn’t be guaranteed.

Russia suspended its role in the pact over the weekend, citing drone strikes against its naval vessels. The agreement -- signed in July -- guaranteed the safe passage of Ukraine crop exports, which are badly needed by food importers amid surging prices and a global cost-of-living crisis. Grain vessels continued to leave Ukraine on Monday and Tuesday, even after Moscow withdrew its support for the deal.

Russia ‘Seriously Damaged 40% of Power Infrastructure: Zelenskiy (4:28 p.m.)

The Ukrainian leader discussed the consequences of Russian attacks on the country’s energy system with the EU’s Simson. Thermal power plants, heat suppliers and hydro power stations were hit by Russian missiles and drones, forcing Ukraine to halt its electricity export to Europe. Zelenskiy told Simson that Ukraine seeks to resume deliveries once the situation stabilizes.

Simson earlier called for increased assistance -- and condemned Russian attacks against infrastructure as winter approaches. Help had to come from EU institutions and member states as well as international partners and private donors, she said in Kyiv.

Macron Pledges Help on Aerial Defense, Rebuilding Infrastructure (3:50 p.m.)

The French leader pledged to bolster military backing for Ukraine, especially in aerial defense, the Elysee Palace said following the phone call. The two agreed to organize an international conference in Paris on Dec. 13 to assist the rebuilding of Ukraine’s energy system after Russian attacks.

“We must act before winter,” Macron said on Twitter. Zelenskiy earlier thanked Macron for his “unwavering support” after the two spoke.

Ukraine Accepts Naftogaz CEO Vitrenko’s Resignation (3:28 p.m.)

Ukraine’s cabinet accepted the resignation of Yuriy Vitrenko from his post as chief executive of state-run energy giant NJSC Naftogaz Ukrainy. Vitrenko will continue to serve as CEO until Nov. 3, the company said.

Vitrenko, who’d served as Naftogaz CEO since April 2021, was embroiled in a clash with the government over its debt servicing as energy prices surged following Russia’s invasion earlier this year. In July, Vitrenko said he was surprised the government had ordered the company to spend its foreign-currency holdings to buy more natural gas for the upcoming winter instead of paying bondholders, as Naftogaz had planned to do both.

Ukraine Crop-Export Inspection Pace Soars as Russia Steps Back (3:07 p.m.)

The pace of cargoes cleared to head abroad has soared, helping to ease a pileup of vessels, since Russia suspended its role in the Black Sea grain accord.

Some 46 outbound vessels passed inspection in Istanbul on Monday, up more than tenfold from the average for the rest of the month, according to data posted by the United Nations. The pickup comes after Russia stepped back from the landmark Ukraine grain-export deal, which was agreed in late July and has revived the country’s seaborne trade.

Erdogan Confident of Solution on Grain Corridor After Putin Call (2:58 p.m.)

Turkish President Recep Tayyip Erdogan told Russia’s leader, Vladimir Putin, that he’s confident that parties will take a “solution-oriented approach” in efforts to sustain the Black Sea grain corridor, according to a statement on the call.

A constructive approach on the grain crisis can encourage a return to negotiations, Erdogan said, without giving further details.

Kremlin Says ‘Partial’ Mobilization Is Complete (12:10 p.m.)

The “partial mobilization” of 300,000 reservists is complete and no presidential decree is needed to formally put an end to it, Kremlin spokesman Dmitry Peskov said.

The Defense Ministry announced last week that the call-up was completed, but the lack of a new presidential order formally rescinding it had raised fears it could be restarted at any moment. Asked about the issue late Monday, Putin said he would check with legal aides and determine whether he needed to sign another order. Peskov said that analysis concluded none is needed and the previous decree has lapsed because the target of 300,000 troops has been reached.

Putin’s initial announcement of the mobilization in September fueled public alarm and triggered an exodus of hundreds of thousands of people from the country.

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