Russia is likely to resume buying foreign currency for its reserves as soon as this month as rising oil earnings stabilize public finances despite US and European efforts to squeeze Kremlin income.
(Bloomberg) — Russia is likely to resume buying foreign currency for its reserves as soon as this month as rising oil earnings stabilize public finances despite US and European efforts to squeeze Kremlin income.
The commander of Ukraine’s ground forces said they have pushed back Russian troops from some positions in Bakhmut.
Russia targeted Ukrainian cities with cruise missiles on Monday, but Ukraine’s army chief said most were intercepted. At least 34 people were reported hurt by a missile strike in Ukraine’s central Dnipropetrovsk region. The barrage of attacks comes as Ukraine prepares for another ground offensive against Russian forces.
Key Developments
- Russia Seen Buying Yuan Soon as Sanctions, Oil-Cap Hit Eases
- McCarthy Says He Supports Aid to Ukraine, Urges Russia to Leave
- Eastern Europe Is Jeopardizing Ukraine’s Economic Lifeline
(All times CET)
Russia Seen Buying Yuan Soon as Sanctions Ease (9:35 a.m.)
Russia is likely to pick back up purchases of foreign currencies as oil earnings help offset the effect of US and European Union sanctions.
With energy revenues now close to exceeding their target level, purchases are possible in May, according to Bloomberg Economics, which estimates initial volumes could amount to the equivalent of around $200 million in yuan per month.
The Chinese currency is the main asset Russia can still use to conduct transactions for its $154 billion wealth fund because of sanctions.
McCaul Says Sees Counteroffensive as ‘Game Changer’ (9:35 a.m.)
House Foreign Affairs Committee Chairman Michael McCaul said a widely expected Ukrainian counteroffensive, if successful, would be “a game-changer for continued support.”
McCaul, a Texas Republican, told Bloomberg Television’s “Balance of Power” on Monday that “you’re going to see a counteroffensive very soon now that’s going to take place. And I think there’s going to be a lot riding on the line with this counteroffensive.”
Referring to strong support for Ukraine by House Speaker Kevin McCarthy earlier in the day, McCaul said, “I think that does impact the rest of our conference and the House and the Senate.” He added that he was “not familiar” with a remark by former President Donald Trump that Russia would eventually “take over all of Ukraine.”
US Says 20,000 Russians Killed, 80,000 Wounded Since December (9:35 a.m.)
Russia has suffered more than 100,000 casualties, including 20,000 killed in action, since December in Ukraine, US National Security Council spokesman John Kirby told reporters.
He said about half of those killed belonged to the Wagner mercenary force, “the majority of whom were Russian convicts that were thrown into combat in Bakhmut without sufficient combat training, combat leadership, or any sense of organizational command and control.”
Kirby attributed the estimate to “information and intelligence that we were able to corroborate over a period of some time,” while continuing the US policy of refusing to estimate Ukraine’s casualties in the war.
(An earlier version of this story corrected Russian casualty figures.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.