Ukraine Latest: Germany, Sweden in Talks on New Weapons Offer

President Volodymyr Zelenskiy and members of his government met in Kyiv with top European Union officials, focusing on Ukraine’s potentially years-long effort to join the bloc. Two Russian fighter jets took of from Belarus, triggering air alerts across Ukraine that were subsequently cancelled.

(Bloomberg) — President Volodymyr Zelenskiy and members of his government met in Kyiv with top European Union officials, focusing on Ukraine’s potentially years-long effort to join the bloc. Two Russian fighter jets took of from Belarus, triggering air alerts across Ukraine that were subsequently cancelled. 

As Ukraine braces for a potential new Russian assault, the US is expected to provide a new ground-launched rocket from Boeing Co. in an arms tranche to be announced Friday. German and Sweden are also in talks over a new weapons package for Ukraine. 

President Vladimir Putin has reportedly ordered Russia’s military to capture all of Donetsk and Luhansk by March, said the Institute for the Study of War, citing a Ukrainian intelligence official. On Thursday Putin framed the war he started almost a year ago as an existential threat to Russia, and said Moscow “has the means to fight back.” Russia will test a hypersonic Tsirkon missile during upcoming exercises with China and South Africa. 

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

Key Developments

  • US to Send Ukraine Boeing’s Ground-Launched, GPS-Guided Bombs
  • Putin Vows Ukraine Victory as He Hails WWII Stalingrad Triumph
  • As Russia Gears Up for New Push, Ukraine Waits for More Weapons
  • US Backs Banning Russia and Belarus Anthems, Flags at Olympics
  • Saving Ukraine’s Economy Will Help Win the War: Editorial

On the Ground 

Russia conducted five air attacks over the past day and four missile strikes, two of which hit civilian infrastructure in the city of Kramatorsk in the Donetsk region, Ukraine’s General Staff said on Facebook. Ukrainian troops repelled assaults near 10 settlements in the Luhansk and Donetsk regions in the east. Civilian targets in the southern Kherson and Mykolaiv regions were shelled from multiple launch rocket systems, according to the General Staff.

(All times CET) 

Ukraine Continues Crackdown on Military-Related Graft (12:11 p.m.)

With talks underway focused on Ukraine’s potential accession to the European Union, Kyiv continues to announce crackdowns on potential corruption. 

Ukraine suspects two executives from private companies it didn’t identify of mismanaging nearly 120 million hryvnia ($3.2 million) allocated for food procurement for the army, according to statements on Telegram from the Security Service of Ukraine and Prosecutor General’s Office. Officials are also looking into whether defense ministry officials were involved. 

In a separate case, the deputy chief of the country’s top military medical commission is being investigated for allegedly taking bribes from military-age men in return for providing them with documents exempting them from the draft. More than 5 million hryvnia ($135,000) were confiscated from his office and home, the Security Service said. 

Germany Approves Leopard 1 Tanks for Ukraine (12 p.m.)

Germany has given the green light to ship or Leopard 1 main battle tanks to Ukraine, government spokesman Steffen Hebestreit said at a news conference in Berlin. 

The tanks will be sourced from German industry and will come in addition to deliveries of more modern Leopard 2s taken from the country’s military stocks that have already been announced and approved. 

The news was reported earlier by Sueddeutsche Zeitung. The Leopard 1, no longer in production, was West Germany’s primary MBT in the 1960s and 1970s until it was supplanted by the Leopard 2.

Germany, Sweden in Talks Over Anti-Missile Systems for Ukraine (11:46 a.m.)

Germany and Sweden are in talks over a new weapons package for Ukraine which would see Stockholm provide air defense missiles and launchers for Germany’s IRIS-T systems, said people familiar with the matter.

The discussions would also make available more ammunition that can be used for Germany’s IRIS-T systems sent to Kyiv, according to people familiar with the matter.

Read more: Germany, Sweden in Talks Over Anti-Missile Systems for Ukraine

Druzhba Oil Link Operating Normally (11:41 a.m.) 

Russia’s Druzhba oil-export link to eastern Europe is operating normally, said Igor Dyomin, spokesman for the nation’s oil-pipeline operator Transneft PJSC.

Earlier on Friday, Telegram channels reported that the link had allegedly been targeted by Ukrainian missiles, but the attack was repelled by Russian anti-missile forces with no damage to infrastructure. Transneft is unaware of any attacks on the pipeline today, Dyomin said. 

On Thursday, pumping station Novozybkov of the Druzhba link’s infrastructure near Russia’s border with Belarus and Ukraine was shelled, but no injuries were reported and oil flows continued normally. 

Czech Incoming President Says Russia Not the Only Nuclear Power (11:18 a.m.)

The Czech Republic’s incoming president said the only limit to weapons deliveries to Ukraine should be nuclear arms. 

Petr Pavel, a retired NATO general who takes office in March, also issued a veiled threat, saying said Russia isn’t the only country to possess atomic weapons. 

“We shouldn’t put any cap on equipment,” Pavel told Bloomberg Television in an interview in Prague Friday. “The only exception is nuclear weapons and direct involvement of NATO in the conflict.” 

Read more: Czech Incoming President Says No ‘Cap’ on Kyiv Weapons Shipments  

Russia to Boost Currency Sales to Offset Energy Revenue Drop (10:19 a.m.)

Russia will almost triple the amount of foreign currency it plans to sell through early March after a plunge in energy revenue brought it far below the target set in the budget.

The Finance Ministry said Friday it will sell 160.2 billion rubles ($2.3 billion) during Feb. 7 through March 6 under a budgetary mechanism aimed at insulating the economy from the ups and downs in oil prices.

Read more: Russia to Boost Currency Sales to Offset Energy Revenue Drop (1)

Widespread Air Raid Alerts as Ukrainian, EU Officials to Meet (9:50 a.m.)

Air alerts sounded in Kyiv and in many other regions, including the south and the far west, as President Volodymyr Zelenskiy and his aides prepared to meet with top EU officials. 

There were no immediate reports of strikes. A Russian surveillance plane and two MiG-31k fighter jets took off Friday morning from Belarus, according to the monitoring group Belarusian Hajun. 

Among the officials in Kyiv to meet with Zelenskiy are European Commission President Ursula von der Leyen, European Council President Charles Michel and Josep Borrell, the EU’s foreign policy chief. 

Germany Studies Tapping Coal-Exit Funds for Defense (9:41 a.m.)

Germany is considering re-routing subsidies for eliminating coal-fired power plants to help defense manufacturers build new production facilities, according to people familiar with the matter.

The discussions are underway aimed at providing the country’s armed forces with more weapons and ammunition and creating jobs in regions that are affected by the shift away from coal, said the people.

Germany’s Bundeswehr has been suffering from outdated and partly dysfunctional equipment for years. Following Russia’s invasion of Ukraine the German government earmarked 100 billion euros ($109 billion) in defense spending to expand and modernize its armed forces. 

Russia Has No Plans to Cut Fuel Output Amid EU Ban: Tass (8:19 a.m.)

Russia sees no reason for a sharp reduction in its oil-processing volumes and petroleum-product output when the European embargo on imports enters into force this weekend, Tass said. 

Read more: Russia Has No Plans to Cut Fuel Output Amid EU Ban, Tass Says

Russia to Test Hypersonic Missile in Drills With China, South Africa (7 a.m.)

The Russian frigate Admiral Gorshkov will launch a hypersonic Tsirkon missile during the joint naval exercises with China and South Africa this month, Tass reported, citing an official it didn’t identify. 

Tsirkon will be launched at an above-water target at a range of over 500 kilometers (300 miles). In January the same frigate conducted a computer simulation of a launch.  

Read more: Hypersonic Weapons — Who Has Them and Why It Matters: QuickTake

North Korea to Send Works to Occupied Ukraine (6 a.m.)

The government in Pyongyang recently ordered North Korean trading companies operating in Russia to select personnel to work in Russian-occupied eastern Ukraine so they can take part in reconstruction efforts, Daily NK reports, citing an unidentified person in Russia familiar with details of the agreement.

The first batch of about 300 to 500 workers is likely to arrive as early as mid-February. The men are likely to be employed in repairing buildings and roads. 

Bomb-Tipped Rocket Will Be Part of New Military Aid (2 a.m.)

A new ground-launched, bomb-tipped rocket will be part of the latest package of US arms for Ukraine to be announced Friday, officials said.

The weapon combines an Air Force Small-Diameter Bomb guided by GPS satellites and an Army rocket already being operated by Ukraine’s forces. Like some other equipment provided by the US and allies, it won’t be deployed in Ukraine any time soon: An industry official said it would take about nine months for the first deliveries once the Air Force issues a contract.

Zelenskiy Says Russia Will Mount New Attacks From Territories It Holds (10:27 p.m.)

Ukraine’s President Zelenskiy predicted Russia will mount new aggression from land it controls as it seeks options to change the course of the war.

Russia’s strategic defeat is already clear, Zelenskiy said in his evening address, but it still has resources for offensive action.

“We should speak with one voice to the world regarding defense supplies and noticeably increase global pressure on Russia every month,” Zelenskiy said, adding that Ukraine won’t leave any aggressive action unanswered.

US Backs Banning Russia and Belarus Anthems, Flags at Olympics (8 p.m.)

Athletes from Russia and Belarus should not compete under their nation’s flags or hear their national anthems played during medal presentations during the upcoming Olympics in Paris because of the invasion of Ukraine, the White House said Thursday.

The statement aligns the US with plans outlined by the International Olympic Committee that have been criticized by Ukraine for not going far enough. President Volodymyr Zelenskiy has demanded that Russian and Belarusian athletes should be banned from the 2024 Paris games. 

 

Putin Rallies Russians for Victory in Ukraine (4:25 p.m.)

Putin commemorated Russia’s World War II victory at Stalingrad by trying to rally domestic support for his invasion of Ukraine. 

“Those who expect to win a victory against Russia on the battlefield don’t understand that modern-day war with Russia will turn out totally differently for them,” he said at a concert on Thursday in Volgograd, which had been temporarily renamed Stalingrad for the commemoration of the 80th anniversary of the defeat of Nazi forces there. “We aren’t sending tanks to their borders but we have the means to fight back and they won’t be limited to armor. Everyone should understand this.” 

Read more: Putin Vows Ukraine Victory as He Hails WWII Stalingrad Triumph

Von der Leyen Praises Ukraine’s Efforts to Fight Graft (3:30 p.m.)

Ukraine continues to make “impressive progress” to meet pre-conditions that include anti-corruption measures to start talks on the EU membership, von der Leyen said in Kyiv.

“I am comforted to see that your anti-corruption bodies are on alert and effective in detecting corruption cases,” Von der Leyen told Zelenskiy in Kyiv. She also praised Zelenskiy “on reacting so rapidly at the political level to make sure that the fight against corruption is delivering tangible results.”

Ukraine Widens Dragnet as Pressure Mounts to Tackle Corruption  

EU Estimates Russia Loses €160 Million a Day from Oil Price Cap (1 p.m.)

Von der Leyen said the bloc’s price cap on Russian oil exports is costing Russia about €160 million ($176 million) a day, as the bloc looks to extend the mechanism to cover Moscow’s petroleum products.

The EU and G-7 countries aim to have the 10th package of sanctions against Russia by Feb. 24 — exactly one year since the Russian invasion. “We are making Putin pay for his atrocious war,” she said at a joint press conference with Zelenskiy in Kyiv.

She used a visit to Kyiv, accompanied by more than a dozen of her fellow commissioners, to pledge continued support for Ukraine, even as fears of new Russian offensive mount. “Our presence in Kyiv today gives a very clear signal,” she said. “We will stand up for Ukraine as we stand up for the fundamental rights and respect of international law.” 

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