Ukraine Latest: US Proposes to Sell Poland $10 Billion in Arms

The US plans to sell Poland about $10 billion in arms, including Himars rocket launchers and ammunition for the highly accurate mobile platform, two officials said.

(Bloomberg) — The US plans to sell Poland about $10 billion in arms, including Himars rocket launchers and ammunition for the highly accurate mobile platform, two officials said. 

Ukraine will receive another batch of German-made battle tanks, as Russia’s defense chief said Kremlin forces are “advancing successfully” in a battle for the eastern Ukrainian city of Bakhmut.  

President Vladimir Putin’s government is pressuring the Bank of Russia to be more upbeat about the economic outlook and signal it’s ready to loosen monetary policy. Ahead of the bank’s first board meeting of the year, officials want it to send a clearer hint that interest rates may come down later in 2023, according to people familiar with the deliberations.

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

Key Developments

  • Ukraine to Get as Many as 178 Leopard 1 Tanks From EU Allies 
  • Russia’s Latest Information War Tactic: Spoofing Foreign Media
  • Putin’s Government Leans on Central Bank to Signal Looser Policy
  • Big Russia Presence in India Energy Summit Signals Stronger Ties
  • As Ukraine Pressures Mount, Macron Remains in Scholz’s Shadow

On the Ground

Ukraine’s Interior Ministry said border troops shot down a Russian fighter jet covering the infantry’s advance over Bakhmut with a portable anti-aircraft missile system. Russia carried out six missile strikes and 24 air attacks over the past day, Ukraine’s General Staff said on Facebook. Kremlin forces also unleashed 75 barrages from multiple-launch rocket systems, hitting civilian targets in the Kharkiv, Donetsk, Dnipropetrovsk and Kherson regions, according to the statement. Ukrainian troops repelled assaults near 10 settlements in Donetsk and Luhansk, the General Staff said.

(All times CET)

US to Sell Himars, Ammunition to Poland (8:50 p.m.)

The US plans to sell Poland about $10 billion in weapons including Himars rocket launchers and ammunition for the highly accurate mobile platform as well as other weapons, two officials said.

The officials, who asked not to be identified to discuss a matter that hasn’t been announced, said Congress has been notified of the proposed deal under the Foreign Military Sales program.

Poland has been a strong supporter of Ukraine, and the US has sought to bolster the ability of NATO countries such as Poland to defend themselves in the face of potential Russian aggression. 

Ukraine to Get as Many as 178 Leopard 1 Tanks From EU Allies (5:51 p.m.) 

“Within the coming months, Ukraine will receive at least 100 Leopard 1 A5 battle tanks,” they said in the statement. Germany’s Defense Ministry said that the final number could reach 178.

German Defense Minister Boris Pistorius, making an unannounced visit to Kyiv, was quoted by German public broadcaster ZDF as saying the deliveries would be made in stages, with “about 20, 25” to arrive by the European summer and more than 100 by early next year.

US Drone Maker’s Latvian Plant Catches Fire (5:50 p.m.)

A drone-making factory in Latvia belonging to Edge Autonomy caught fire at around 3 p.m. local time, near the capital Riga, the Leta newswire reported, citing the fire and rescue department. The cause of the fire wasn’t known, nor the extent of the damage, it said.

Edge Autonomy provides “innovative autonomous systems, advanced optics, and resilient energy solutions to the US Department of Defense, US Federal Civilian Agencies, allied governments, academic institutions, and commercial entities,” according to its website.

Russia’s Latest Information War Tactic: Spoofing Foreign Media (3:31 p.m.) 

The Russian government is supporting operations that impersonate international media outlets as part of its disinformation campaigns, which have become more sophisticated and active since its invasion of Ukraine, according to a European Union study. 

Print and TV media are the most frequent targets of Moscow’s impersonation, with magazines seeing their entire style copied by Russian actors to give legitimacy to the content, in particular when targeting Ukraine, said a report on foreign information manipulation published Tuesday by the EU’s External Action Service. 

Central Bank Pressed to Signal Looser Policy (11:55 a.m.)

Governor Elvira Nabiullina and her colleagues so far are unwilling to suggest any imminent easing because of risks of higher inflation, the people familiar said, and instead are likely to indicate that rates have little room to fall.  

But they are open to improving forecasts, with the government content if the central bank delivers a message that puts it on a track toward looser policy in the months ahead, the people said, speaking on condition of anonymity to describe the unusual conflict within the economic team. 

Russia Warns of ‘Unpredictable’ Consequences (11:50 a.m.)

Russian Defense Minister Sergei Shoigu warned the West that its beefed up military aid for Ukraine could lead to “unpredictable” consequences, according to the Tass state news service.

The US and its allies are supplying Kyiv with “heavy offensive weapons” and openly calling for the capture of Russian territory, Shoigu said according to Tass. “These steps are dragging NATO countries into the conflict and could bring the escalation to an unpredictable level.” The US and European nations have agreed to supply battle tanks and longer-range missiles to Ukraine in a bid to help it decisively roll back Russian forces occupying its territory this year.

Storms Force Russian Warships Into Port (11:15 a.m.)

Heavy storms on the Black Sea have forced Russia to return some of its warships armed with cruise missiles to their bases, according to Natalia Humenyuk, a spokeswoman for the Ukrainian military.

Two Russian navy vessels that are not armed with missiles remain on duty on the Black Sea, while the Kremlin’s navy is not present on the Azov Sea because of the weather conditions, Humenyuk said.

BP Slows Retreat From Oil (11 a.m.)

BP Plc said it will cut oil and gas output more slowly this decade after the supply disruption caused by Russia’s invasion of Ukraine boosted prices and delivered record profits.

While the British company said it was doubling down on the transition to cleaner energy with an additional $8 billion of spending to 2030, it will ramp up investments in fossil fuels by the same amount.

Melnyk Sees No Sign Russia Ready for Peace Talks (9 a.m.)

Melnyik told German broadcaster ZDF that Ukraine’s most urgent need is for aircraft like the Eurofighter or Tornado, urging Chancellor Olaf Scholz to move quickly. He also said Ukraine has received no indications from the Kremlin that Russia is ready to engage in genuine peace talks.

“You need two for a dance and you also need two for peace talks,” Melnyk said. “They are talking constantly about negotiations but at the same time they’re bombing cities and apartment buildings,” he added. “So we need the weapons to try to force Putin’s hand.”

He declined “for security reasons” to say whether President Volodymyr Zelenskiy will accept an invitation to attend this week’s EU summit in Brussels but said his presence there is under discussion.

Russia ‘Lacking Munitions, Troops’ (9 a.m.)

Russia has been trying to restart major offensive operations in Ukraine since early last month with the aim of capturing the parts of the Donetsk region it does not already occupy, according to the latest UK Ministry of Defense intelligence update.

Russia’s military has only managed to gain a few hundred meters of territory per week, almost certainly because it lacks munitions and troops, the ministry said, adding that Russia can still accumulate the forces it needs in the coming weeks to “substantially affect the outcome of the war.”

China Urges Quick End to War (7 a.m.)

A Chinese envoy to the United Nations called for a swift end to the conflict and an immediate halt to shelling of the Zaporizhzhia nuclear power plant, as well as “maximum efforts to stop the conflict from escalating to a nuclear crisis,” according to a report by state news agency Xinhua.

“China once again calls on relevant parties to bear in mind the interest of the people, strive to promote peace, and try every possible way to push parties to the conflict to resume peace talks and end the war at an early date,” Dai Bing, China’s deputy permanent representative to the UN, told a Security Council briefing, Xinhua reported.

More stories like this are available on bloomberg.com

©2023 Bloomberg L.P.