Hungary’s top diplomat sealed energy deals in Moscow during a rare visit by an official from a European Union member, underscoring Budapest’s schism with the rest of the bloc over Russia’s invasion of Ukraine.
(Bloomberg) — Hungary’s top diplomat sealed energy deals in Moscow during a rare visit by an official from a European Union member, underscoring Budapest’s schism with the rest of the bloc over Russia’s invasion of Ukraine.
Russia expanded penalties for those who evade the military draft under a new package of legal changes that critics said may presage further call-ups for President Vladimir Putin’s war.
US Vice President Kamala Harris will meet with Polish Prime Minister Mateusz Morawiecki on Tuesday to discuss the war.
Key Developments
- IMF Trails Only JPMorgan for Most Upbeat View of Russian Economy
- Russian Windfall Plunges by $51 Billion as Energy Cash Dries Up
- Hungarian Envoy Seals Energy Deals in Moscow, Defying EU Stance
(All times CET)
Trudeau Meets with Ukrainian Counterpart, Who Delivers Thanks (7:40 p.m.)
Ukrainian Prime Minister Denys Shmyhal met with Canadian Prime Minister Justin Trudeau in Ottawa Tuesday, thanking Canada for assistance including a C$2.4 billion ($1.8 billion) loan for Ukraine announced in Trudeau’s federal budget last month.
During Shmyhal’s visit, Ukraine’s state-owned Energoatom completed a supply contract with Canada-based Cameco for nuclear fuel through 2035, a deal first announced in February. Trudeau also said Canada is rolling out a fresh round of sanctions aimed at the mercenary Wagner Group, Russia’s aviation industry and the Belarusian financial sector.
Ukraine’s Steel Output Highest Since Start of War (6:07 p.m.)
Ukraine’s steel production hit a 13-month high, a first sign of recovery by the industry after a deep plunge brought about by Russia’s invasion, according to data provided by Kyiv-based Sense Bank.
The nation’s average daily steel output climbed 13% from the previous month and more than doubled from a year earlier in March. Ukraine’s steel industry has been severely hit, including by the destruction of the Azovstal plant located in occupied Mariupol.
Russia’s Current-Account Surplus Plunges as Energy Cash Dries Up (6:04 p.m.)
Russia’s current-account surplus shrank last quarter by more than $51 billion from a year earlier, as sanctions increasingly deprive the government of what’s been a critical source of hard currency since the invasion of Ukraine.
The surplus in the current account — roughly the difference between exports and imports — decreased to $18.6 billion in the first three months of the year, according to preliminary central bank data.
Ukraine’s Richest Man Sues Russia (4:57 p.m.)
Ukrainian billionaire Rinat Akhmetov launched arbitration proceedings against Russia for seizing assets that belong to his SCM Group in the occupied regions of Donetsk and Luhansk, according to a statement that didn’t specify the court where the case was being pursued.
Assets seized or destroyed in the two eastern Ukrainian regions from 2014-2017 include metals metals and mining enterprises, energy infrastructure, real estate and the headquarters and stadium of his Donetsk-based football squad Shakhtar Donetsk, which cost more than $400 million, the statement said.
“We will seek justice using all available legal means with every possible agency and court, because Russia’s crimes against Ukraine and Ukrainians that have been committed since 2014 must be punished,” Akhmetov said. He indicated he plans to invest any compensation to rebuild and contribute to economic growth.
Russian Companies Shift to Astana to Keep International Trading (4:31 p.m.)
Kazakhstan’s capital may become the home bourse for Russian companies seeking to keep their shares traded by international investors, as they are forced to quit London and New York following the invasion of Ukraine.
Russia’s biggest gold miner, Polyus PJSC, is weighing whether to list its global depositary receipts on the Astana International Exchange, sources say. Another gold miner, Polymetal International Plc, is considering re-registering in Kazakhstan, while its global depositary receipts may be traded in Abu Dhabi. Russia’s Ros Agro Plc listed its GDRs in the Kazakh capital in March, switching from London.
IMF Trails Only JPMorgan for Most Upbeat View of Russian Economy (4:29 p.m.)
The International Monetary Fund is taking one of the most optimistic views of Russia’s economy this year despite the toll of sanctions over the invasion of Ukraine.
An upgrade to 0.7% in the IMF’s latest projections means Russia saw one of the biggest upward revisions among major economies from the fund’s outlook in January, when it expected gross domestic product to expand 0.3% in 2023.
“They’ve been able to maintain quite a bit of momentum in the economy by taking, for instance, very strong fiscal measures,” IMF Chief Economist Pierre-Olivier Gourinchas told reporters in Washington.
Hungarian Envoy Seals Energy Deals in Moscow (3:55 p.m.)
Hungary’s top diplomat secured a deal to expand gas flows from Russia and renewed a financing agreement on its nuclear power plant as Prime Minister Viktor Orban moves to boost his country’s dependence on Russian oil, gas and nuclear supplies.
Hungary will now have the option to receive more natural gas from Russia on top of an existing long-term agreement ahead of the winter storage season. Foreign Minister Peter Szijjarto also agreed to further secure crude supplies through the Druzba pipeline via Ukraine.
Ukraine Calls for Closer Ties With India (3:30 p.m.)
Ukraine wants closer ties with India, First Deputy Foreign Minister Emine Dzhaparova said during a visit to New Delhi.
In the first visit by a representative of Kyiv to India since Russia invaded in February 2022, Dzhaparova said Ukraine was carefully watching Indian Prime Minister Narendra Modi and frequent trips by National Security Adviser Ajit Doval to Russia.
Russia to Expand Penalties for Draft Evaders (2:49 p.m.)
The changes are part of a package of measures aimed at toughening rules as Russia moves to expand its armed forces by almost 50% to 1.5 million people over several years. They’re designed to rectify problems exposed in last year’s mobilization of 300,000 reservists to fight in Ukraine, which triggered widespread public discontent.
Under the plan, contained in hastily proposed amendments approved unanimously by the lower house of parliament Tuesday, those potentially eligible to be called up who didn’t respond to notices sent electronically would be banned from leaving the country, getting drivers licenses, buying and selling property and taking loans.
The changes also remove the requirement that draft notices be delivered in person, which those seeking to avoid service had long taken advantage of, and replace it with an online system. The Kremlin reiterated Tuesday that no further waves of mobilization are currently planned.
Ukraine Clears Mines From 2,323 Hectares of Farmland (1:35 p.m.)
More than 12,000 hectares of agricultural lands were inspected by units of Ukraine’s emergency service, military and non-government operators, Economy Minister Yuliya Svyrydenko said in a statement.
Hungary’s Top Diplomat Visits Moscow in Defiance of EU Stance (11:26 a.m.)
Foreign Minister Peter Szijjarto’s meetings with two energy officials are part of Hungarian Prime Minister Viktor Orban’s effort to maintain his country’s dependence on Russian oil, gas and nuclear supplies even as EU partners move to break free.
After visiting Belarus in February in another rare trip to a Moscow ally under western sanctions, Szijjarto met Russian Deputy Prime Minister for Energy Alexander Novak and Alexey Likhachev, the chief executive officer of state nuclear company Rosatom Corp.
World’s Top Uranium Miner Sees Clients Switching From Russia (8:13 a.m.)
Kazakhstan’s state-owned uranium miner is preparing reserves for production as demand increases, including from Eastern European power producers looking to cut their reliance on Russia.
Some nuclear plants in Eastern Europe, which previously sourced enriched uranium from Russia, are seeking contracts from 2025, Kazatomprom Chief Executive Officer Yerzhan Mukanov said in an interview in Astana.
Geopolitical uncertainties are reshaping flows of the nuclear fuel, prompting some power producers to build inventories, he said.
(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)
Ukrainian Premier Visits Canada (6:52 a.m.)
Prime Minister Denys Shmyhal will meet with his Canadian counterpart Justin Trudeau and Finance Minister Chrystia Freeland during his official visit there on Tuesday.
Morawiecki Will Meet Harris on US Visit (5:35 a.m.)
The pair will discuss security and energy issues — including Poland’s civil nuclear program, according to a White House official. Last year, Poland selected US-based Westinghouse Electric Company LLC to help construct three nuclear reactors after lobbying by Harris and other senior US officials.
The visit also comes as the Biden administration is seeking to shore up its international alliance to help Ukraine following the leak of classified documents that appeared to show intelligence gathered from US partners.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.