Russian mercenary forces mounted a concentrated assault on a key frontline town in eastern Ukraine, a siege that President Volodymyr Zelenskiy said his troops were holding off in an “extremely difficult” military exchange.
(Bloomberg) — Russian mercenary forces mounted a concentrated assault on a key frontline town in eastern Ukraine, a siege that President Volodymyr Zelenskiy said his troops were holding off in an “extremely difficult” military exchange.
The Kremlin had positioned the most capable units from the Wagner military-contracting company near the town of Soledar in the eastern Donetsk region, according to Ukrainian operational command spokesman Serhiy Cherevatyi. Ukrainian forces were holding the line following 86 artillery attacks “of various caliber,” he said.
The European Union sought to forge a common line with NATO as the 27-member bloc signed a joint declaration with the transatlantic military alliance. NATO Secretary General Jens Stoltenberg said the accord solidified an EU defense that’s “complementary to and interoperable with NATO.”
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Key Developments
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- UK Considers Sending Battle Tanks to Ukraine, Officials Say (1)
On the Ground
Ukrainian forces repelled attacks near 13 settlements throughout the eastern Luhansk and Donetsk regions over the past day, including Soledar, the General Staff said in its morning update on Facebook. Ukraine’s Defense Ministry said the assault on Soledar followed previous unsuccessful attempts to capture it, resulting in heavy losses. Zelenskiy said in his nightly address that the resilience of the Ukrainian troops allowed his country to gain additional time, noting that “there are almost no whole walls left” to defend the settlement. Russian forces also shelled civilian infrastructure in the cities of Kharkiv, Kherson, Kramatorsk and Ochakiv over the past day, the Ukrainian military said.
(All times CET)
Ukraine’s Inflation Steadies on Price Cuts Amid Blackout Fears (2:30 p.m.)
Ukraine’s wartime inflation steadied last month as retailers cut prices for perishable goods after Russian attacks on the nation’s power grid triggered concerns that staple foods would spoil.
Consumer prices rose 26.6% versus a year earlier in December, the State Statistics Service said. The result was below the 27.4% forecast in a survey. A better-than-expected harvest of vegetables and fruits last fall also helped, the central bank said in a statement to Bloomberg.
Russia’s Budget Gap Surges to Record as War Hits Finances (1:24 p.m.)
Russia’s federal budget deficit widened to a record in December as revenues plunged amid restrictions on oil exports and spending on the invasion of Ukraine grew.
The fiscal gap reached a record 3.9 trillion rubles ($56 billion) last month, according to Bloomberg calculations based on preliminary government data released Tuesday. That brought the full-year shortfall to about 3.3 trillion rubles, reversing a surplus in the 11 months of the year. Finance Minister Anton Siluanov later confirmed the full-year figure, which he said amounted to 2.3% of gross domestic product, in televised comments at a government meeting.
EU Plans New Sanctions and Signs Accord With NATO (1 p.m.)
Ursula von der Leyen, the head of the European Commission, told reporters in Brussels that the bloc plans further sanctions against countries like Belarus and Iran “who militarily support Russia’s war.”
Von der Leyen, with Charles Michel of the European Council and NATO’s Stoltenberg earlier signed a cooperation agreement between the EU and the alliance. The agreement “recognizes the value of a more capable European defense that contributes positively to our security and is complementary to and interoperable with NATO,” Stoltenberg said.
The leaders said the EU and NATO were determined to work more closely together on issues including resilience, protecting critical infrastructures, space and the security impact of climate change.
Ukraine Suspects Russia Used Missiles to Hit World War I Mine Landfill (1 p.m.)
Russian attack on Ochakiv in southern Ukraine on Monday hit an old depot full of World War I sea mines, the governor of Ukraine’s Mykolayiv region, Vitaliy Kim, said on Telegram.
According to preliminary data cited by Kim, Russia may have used supersonic Kinzhal missiles to hit the concrete-covered landfill on the seashore. The resulting massive detonation wounded 15 people and damaged more than 200 buildings, mainly breaking windows and roofs, according to Kim.
Russian Independent TV Network Gets Dutch Broadcast License (1 p.m.)
Russia’s most prominent independent TV channel, Dozhd, or ‘Rain,’ received a license to broadcast in the Netherlands after Latvia revoked its permit last month for a program that appeared to advocate sending supplies to mobilized Russian troops fighting in Ukraine.
The journalist later apologized and was fired. Like several other independent media outlets, Dozhd fled Russia after the start of the war and initially set up operations in Latvia. Dozhd applied for the Dutch license on Dec. 6, the same day Latvia revoked its license, and was granted a five-year license on Dec. 22, according to a statement by the Dutch media authority.
Baltic Ministers to Discuss Joint Purchases of Defense Weapons (10:30 a.m.)
The Baltic defense ministers of Estonia, Latvia and Lithuania are holding a meeting to discuss joint purchases of defense capabilities for the region, including the HIMARS rocket launcher systems, the Lithuanian defense ministry said.
The ministers will also discuss aid to Ukraine and preparations for the upcoming NATO leaders summit in Vilnius, it said.
Latvia May Send More Stinger Missiles to Ukraine (10:30 a.m.)
Latvia is considering sending stinger missiles to Ukraine, along with unmanned drones and training as part of a package of support, Defense Minister Inara Murniece said on Latvian TV.
“The Ukrainian front is our line of defense,” Murniece said. The package of support is in response to requests from Zelenskiy, she said.
Ukraine Says It Sees a Budget Shortfall of $3.5 Billion in 2023 (10:30 a.m.)
Ukraine will face a monthly budget shortfall of about $3.5 billion in 2023, lower than the $5 billion last year, due to more consistency in tax payments and lower expenditures, Finance Minister Serhiy Marchenko told a conference in Vienna via video. More predictability on international aid is allowing the government in Kyiv to shift to annual budget planning from the monthly approach it had adopted in the wake of Russia’s attack last year, he said.
The finance minister called for tighter sanctions on Russia that would have a more meaningful impact on its economy, and punishing efforts to circumvent existing restrictions.
Scholz Says He’ll Keep Talking to Putin (9 a.m.)
German Chancellor Olaf Scholz said he’ll keep talking to Russian President Vladimir Putin about the war in Ukraine — with the purpose of hammering home the message that Germany and Europe will never accept that Russia is trying to change borders in Europe through military force.
Saying Germany has become one of the most generous countries supplying Ukraine with financial aid as well as weapons, Scholz won applause from fellow Social Democrats at a campaign event by vowing that “we’ll keep doing this as long as it will be needed.”
The chancellor added that Germany would continue to work closely with allies like the US on any future weapon deliveries for Ukraine, saying that there won’t be any German go-it-alone moves.
Biden Aid Says Ukraine Aid Secure Despite McCarthy Deal (9 a.m.)
US National Security Adviser Jake Sullivan said the $47 billion in new aid for Ukraine approved in the $1.7 trillion government funding bill last month won’t be at risk. His comments followed a deal struck by new House Leader Kevin McCarthy with GOP hard-liners to cap 2024 spending in a move that could potentially include efforts to cut defense spending.
“That is money that has been appropriated,” Sullivan said. “I do not see that money getting taken away from us and therefore our ability to have the resources to support Ukraine, with both the security assistance it needs, as well as the economic humanitarian and energy assistance its needs.”
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