Ukraine Latest: EU and NATO to Sign New Cooperation Agreement

The European Union and NATO will further solidify their relationship Tuesday when European Commission President Ursula von der Leyen, European Council President Charles Michel and NATO Secretary General Jens Stoltenberg sign a new joint declaration of cooperation.

(Bloomberg) — The European Union and NATO will further solidify their relationship Tuesday when European Commission President Ursula von der Leyen, European Council President Charles Michel and NATO Secretary General Jens Stoltenberg sign a new joint declaration of cooperation. 

A top Biden administration official said a deal struck by the new Republican House majority to cap 2024 spending would not imperil aid to Ukraine that was part of a government funding bill enacted in December. 

The UK government is considering sending Challenger 2 tanks to Ukraine, a move that would mark the first time a Western country would provide Ukraine with NATO-standard main battle tanks to fight Russian forces.

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

Key Developments

  • Poland’s Election Provides a Path Out of EU Isolation
  • Russian Stocks Slide With Oil, Gas as War in Ukraine Grinds On
  • Small Gain in Russian Oil Sales Can’t Reverse Grinding Downtrend
  • UK Considers Sending Battle Tanks to Ukraine, Officials Say (1)

On the Ground

Ukrainian forces repelled attacks near 13 settlements in the 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 on Monday that the Russian military began an assault on Soledar after suffering heavy losses in a previously unsuccessful attempt to capture it. President Volodymyr Zelenskiy said in his nightly address that the resilience of the Ukrainian troops in the city allowed his country to gain additional time, noting that withstanding attacks there is “extremely difficult” as “there are almost no whole walls left.” 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)

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.)

Scholz, the German chancellor, 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.

Jake Sullivan 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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