Moscow lifted counter-terror measures put in place during mercenary leader Yevgeny Prigozhin’s short-lived mutiny.
(Bloomberg) — Moscow lifted counter-terror measures put in place during mercenary leader Yevgeny Prigozhin’s short-lived mutiny.
The ruble hit its weakest level in 15 months. Prigozhin’s turnaround from his advance toward Moscow defused the biggest threat to Russian President Vladimir Putin’s almost quarter-century grip on power.
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All times are CET
Ruble Hits Weakest in 15 Months (8:49 a.m.)
The ruble weakened as much as 3% against dollar, the most this year. The Russian currency narrowed losses to trade 0.6% weaker at 85.1050 per dollar at 9:35 a.m. in Moscow, the lowest since March 2022, when it tumbled to new record lows in the weeks after Putin’s invasion of Ukraine started.
“Ongoing uncertainty is likely to keep the ruble still under pressure,” UniCredit AG analysts said in an emailed report, forecasting a fall toward 90 per dollar.
The ruble has lost about 13% of its value against the US currency this year, making it one of the worst performers among emerging markets worldwide.
European Gas Prices Jump on Supply Fears (8:30 a.m.)
European natural gas prices jumped 8% on Monday as the mutiny injected new supply fears into an already volatile market.
Europe has dramatically reduced its dependence on Russian pipeline gas — helped by the destruction of the Nord Stream route last year — but it still imports large amounts of Russian LNG.
The reaction in oil markets was much more muted, and gold — usually a haven trade — just inched higher. Grain also gained as traders assessed the impact on major supplier Russia and on a precarious deal that allows Ukrainian grain to reach export markets.
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Moscow Lifts Counter-Terror Regime (8:17 a.m.)
Moscow lifted the so-called counter-terror regime that was put in place Saturday, Mayor Sergei Sobyanin said on Telegram. Regions of Moscow and Voronezh also removed special security measures activated as the Wagner group mutiny started.
Moscow will hold postponed school graduation celebrations on July 1, Sobyanin added.
Moscow Exchange Due to Operate as Usual (7:40 a.m.)
The Moscow Exchange is due to operate normally after Mayor Sobyanin declared Monday a non-working day in the capital in response to the Wagner revolt. The central bank is due to report an estimate of inflation expectations for June.
Shoigu Surfaces to Visit Ukraine Front (7:03 a.m.)
Russian Defense Minister Sergei Shoigu visited the front in Ukraine and heard a report on the western grouping of Russian armed forces, according to the Interfax news service.
This is the first time the ministry has reported on Shoigu’s whereabouts since the mutiny by Prigozhin, who demanded the removal of Shoigu and army Chief of Staff Valery Gerasimov.
The statement, as reported by Russian news wires, had no mention of its timing.
Australia to Provide Aid Package to Kyiv (4:27 a.m.)
Australia said it would provide a package of aid valued at about $74 million to Ukraine in response to its request for vehicles and ammunition.
China Backs Russian ‘National Stability’ (2:12 a.m.)
China said it supports Russia’s actions to maintain national stability in a brief statement by a Foreign Ministry spokesperson, who described the weekend’s mutiny as “Russia’s internal affair.”
The statement came after Foreign Minister Qin Gang met in Beijing with Russian Deputy Foreign Minister Andrey Rudenko. It expanded on an earlier comment from Beijing that the pair had exchanged views on international and regional issues of common interest.
The latest events in Russia were covered by Chinese state media, with the People’s Daily and CCTV both running stories as the news developed. Global Times published an article by former editor-in-chief Hu Xijin analyzing what scenarios the uprising could lead to, including regime change.
China Backs Russian ‘National Stability’ as Diplomats Meet
Wagner Group Remains in Luhansk, Ukraine Says (1:30 a.m.)
Mykhailo Podolyak, an adviser to President Volodymyr Zelenskiy, said he’s not seeing any exodus of Wagner’s group from the Luhansk region, where its main forces are concentrated.
“My understanding is that they haven’t completed initial tasks and agreements yet and they don’t have a vision of new logistics,” he said in an interview with Bloomberg.
There’s a need to wait and assess possible changes in Russia’s military, as the Wagner’s group was “really much more aggressive and competent on the battlefields,” he said.
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