Ukraine Latest: Putin’s Cease-Fire Nears as Russian Costs Mount

Kremlin troops have been ordered by President Vladimir Putin to hold fire for 36 hours from noon Moscow time. Ukrainian President Volodymyr Zelenskiy and US President Joe Biden dismissed the move, framed around Russian Orthodox Christmas, as a ploy designed to give Moscow’s strained forces a chance to regroup, as well as a propaganda stunt.

(Bloomberg) — Kremlin troops have been ordered by President Vladimir Putin to hold fire for 36 hours from noon Moscow time. Ukrainian President Volodymyr Zelenskiy and US President Joe Biden dismissed the move, framed around Russian Orthodox Christmas, as a ploy designed to give Moscow’s strained forces a chance to regroup, as well as a propaganda stunt. 

The US and Germany will send armored vehicles to Ukraine, President Joe Biden and Chancellor Olaf Scholz said in a joint statement, providing a significant upgrade in firepower urgently sought by Ukrainian President Volodymyr Zelenskiy. Germany also will follow the US in providing a Patriot missile defense system to Ukraine. 

Russia plans to wrest more money from some commodity producers and state companies and trim non-defense spending, according to a government order seen by Bloomberg News.  

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

Key Developments

  • Russia Looks to Press Big Firms for More Cash as War Costs Mount
  • US, Germany to Send Ukraine Armored Vehicles in Major Upgrade
  • Putin Orders Surprise 36-Hour Ukraine Cease-Fire as Kyiv Scoffs
  • Erdogan Renews Ukraine Peace Push But Putin Sticks to Line
  • Russia Pardons First Convicts Who Survived 6 Months at Front

On the Ground

Ahead of their planned cease-fire, Kremlin forces continued limited counterattacks to regain lost positions along the Svatove-Kreminna line. Russian forces claimed that Ukrainian troops continued counteroffensive operations in the area. Ukraine’s military reportedly conducted a successful counterattack as Russian forces continued offensive operations around Bakhmut and west of Donetsk City.

(All times CET)

Russia Looks to Press Big Firms for More Cash (8:20 a.m.)

Russia plans to wrest more money from some commodity producers and state companies and trim non-defense spending as the costs of the invasion of Ukraine mount.

Proposals include higher dividends from state companies and a “one-time payment” by fertilizer and coal producers, under instructions issued to officials by Prime Minister Mikhail Mishustin in mid-December.

The document, a copy of which was seen by Bloomberg News, calls the effort part of “revenue mobilization.” It also orders 175 billion rubles ($2.4 billion) in extra spending to resettle 100,000 people from Kherson to Russia. 

Putin’s Pause Is Aimed At Regrouping, ISW Says (8 a.m.) 

Putin could have been seeking to secure a 36-hour pause for Kremlin troops “to afford them the ability to rest, recoup, and reorient to relaunch offensive operations in critical sectors of the front,” said military analysts at the Institute for the Study of War in a daily update. 

“Such a pause would disproportionately benefit Russian troops and begin to deprive Ukraine of the initiative,” ISW said. 

Putin, who “cannot reasonably expect Ukraine to meet the terms of this suddenly declared cease-fire,” is reprising a tactic to frame Ukraine as unaccommodating and unwilling to take the necessary steps toward negotiations, the US-based group said.  

German Regulator Upbeat on Gas Supply (7 a.m.) 

The head of Germany’s network regulator said the agency is “very optimistic” about the country’s gas supply this winter as lower consumption due to warmer weather helps offset the impact of Russia halting exports to Europe’s biggest economy. Germany’s new LNG terminals are also helping. 

A gas shortage this winter is unlikely, though a risk remains, BNetzA President Klaus Mueller said in an interview with public broadcaster ARD. “The more gas we have in storage facilities at the beginning of the year, the less stress and cost we will face in filling them again for next winter,” he added.

Zelenskiy Ridicules Cease-Fire Offer, Praises New Weapons (9:29 p.m.)

The Ukrainian president joined allies in the West in ridiculing Putin’s cease-fire announcement.

“Now they want to use the Christmas as cover to halt offensive of our boys in Donbas at least for a while and redeploy their military vehicles, ammunition and mobilized closer to our position,” Zelenskiy said in a statement. “What will that bring? Just more casualties.”

In a tweet, he praised Germany’s decision to send armored fighting vehicles and a Patriot missile defense system, saying that “Germany is making a crucial contribution in intercepting of all Russia’s missiles.”

US, Germany Add Armored Vehicles, Another Patriot System (8:18 p.m.)

The US will provide Ukraine with its Bradley Fighting Vehicles while Germany is sending its Marder vehicles, Biden and Scholz said in a joint statement. Germany also will provide Ukraine a Patriot battery — the second headed to the country after the US said last month that it would send one of the powerful air-defense systems.

“President Biden and Chancellor Scholz expressed their common determination to continue to provide the necessary financial, humanitarian, military and diplomatic support to Ukraine for as long as needed,” the leaders said in the statement after a phone call.

Biden Scoffs at Putin’s Cease-Fire Announcement (6:39 p.m.)

Biden said that he believed Putin was “trying to find some oxygen” with his announcement of a brief cease-fire in Ukraine.

“I found it interesting he was ready to bomb hospitals and nurseries and churches on the 25th and New Years,” Biden told reporters at the White House when asked about Putin’s announcement. “I mean, I think he’s trying to find some oxygen.”

Oleksiy Danilov, the secretary of Ukraine’s National Security and Defense Council asked in a tweet, “Who will trust villains that kill children, shell maternity hospitals, torture prisoners?”

US, Germany to Send Ukraine Armored Vehicles in Major Upgrade (6:02 p.m.)

The US and Germany will send armored vehicles to Ukraine, a significant upgrade in firepower urgently sought by Zelenskiy, leaders of the two nations announced in a joint statement after a 

In an announcement that may come as soon as Thursday, the US will send Bradley Fighting Vehicles while Germany is expected to send its Marder vehicles, said the people, who asked not to be identified discussing deliberations that are still private. Biden was expected to discuss the matter with German Chancellor Olaf Scholz on Thursday.

Read the full story here.

Putin Orders 36-Hour Orthodox Christmas Cease-Fire; Kyiv Skeptical (5:03 p.m.)

Putin ordered his forces to cease fighting in Ukraine for 36 hours starting Friday at noon, Moscow time. Kyiv dismissed the move as a ploy.

The Kremlin said Putin gave the order ahead of Russian Orthodox Christmas. It followed an appeal by the patriarch of the Russian church, which has close ties to the Kremlin. 

Ukrainian presidential aide Mykhailo Podolyak suggested the offer was “hypocrisy” and in remarks to reporters, called Putin’s move “purely a propaganda gesture” also designed to buy time for under-pressure Kremlin troops. 

 

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