(Bloomberg) — Russian President Vladimir Putin called a “partial mobilization” and vowed to annex territories his forces are occupying. In a televised address, he described the moves as “urgent, necessary steps to defend the sovereignty, security and territorial integrity of Russia.”
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Bridget Brink, the US ambassador to Ukraine, said in a tweet that “sham referenda and mobilization are signs of weakness, of Russian failure.” Treasuries, gold and the dollar led gains in haven assets after Putin rattled markets that were already bracing for a super-sized rate hike from the Federal Reserve. Russian stocks tumbled to their lowest since the country invaded.
Russian Defense Minister Sergei Shoigu said in a television interview that as many as 300,000 troops would be called up, with the move a gradual one. The Kremlin is set to stage hastily-organized referendums on absorbing four occupied regions in eastern and southern Ukraine as soon as this weekend in its latest escalation of the invasion.
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Key Developments
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Putin Mobilizes More Troops, Renews Nuclear Threat Over Ukraine
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Havens Advance, Euro Drops as Putin Steps Up War: Markets Wrap
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Russian Stocks Tumble to Lowest Since Invasion on Mobilization
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European Gas Jumps on Winter Risks as Putin Steps Up Ukraine War
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Germany Nationalizes Uniper to Avert Energy Sector Collapse
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Europe’s Deepening Energy Crisis Pushes Bill to $500 Billion
On the Ground
Russian shelling damaged infrastructure in more than 50 settlements, including Bakhmut, Zaporizhzhia and Nikopol, with Russian forces also trying to hit a thermal power plant near the city of Slovyansk in the Donetsk region, the Ukrainian General Staff said in its morning update. Ukrainian troops pushed back Russian attacks near nine settlements, according to the statement. Russia shelled the Zaporizhzhia nuclear power plant overnight, causing damage at one of the power units, the Ukrainian nuclear operator Energoatom said on Telegram. Russia hit residential buildings in Ukraine’s second largest city Kharkiv with missiles overnight, Unian reported citing local authorities. Russian forces pound the dam at the Pechenihy water reservoir in the Kharkiv region, and local authorities warned of a risk of “catastrophic flooding of territories,” Unian said.
(All times CET)
Poland, Lithuania Urge More Aid in Response to Mobilization (11:30 a.m.)
Polish Prime Minister Mateusz Morawiecki said NATO countries should increase their financial and military aid to Ukraine in response to Putin’s declaration of a partial mobilization. Speaking on the sidelines of military exercises with US and UK troops in Nowa Deba, southern Poland, Morawiecki said he will seek support from leaders in Western Europe for additional supplies to Kyiv.
Lithuanian Defense Minister Arvydas Anusauskas urged “a continuous flow of advanced military equipment to help the nation defend itself from genocide.”
The situation on the Finnish-Russian border remains calm and no troop movements have been detected, Finnish Defense Minister Antti Kaikkonen said. Finland’s defense forces remain prepared and there’s no immediate military threat, said the minister, whose country guards 1,300 kilometers (800 miles) of the border with Russia. Finland and Sweden are in the process of joining NATO.
War Cost $34.6B in Damage to Ukraine’s Environment: Minister (11:20 a.m.)
The cost of the damage to Ukraine’s environment caused by the war is now estimated at almost 1.3 trillion hryvnia (34.6 billion dollars), Environment Minister Ruslan Strilets said on television. This is only a preliminary estimate which does not include all the possible consequences of pollution and the destruction of infrastructure, nor damage to the Black and Azov seas which hasn’t yet been assessed.
Navalny Slams Mobilization Order at Court Hearing (11:10 a.m.)
Jailed opposition leader Alexey Navalny slammed Putin’s mobilization order during a court hearing, accusing the president of expanding the war to maintain his grip on power.
“Putin is tormenting a neighboring country, killing people there, and now he is throwing a huge number of Russian citizens into the meat grinder of war,” Navalny said in a video posted by his organization. “It was a crime, and now it has become a crime of a much larger scale.”
Lithuania Puts Reaction Force on High Alert (10:50 a.m.)
Lithuanian Defense Minister Anusauskas said the Baltic nation is putting its Rapid Reaction Force on high alert to prevent any provocation from Russia after Putin’s address. “As Russia’s military mobilization will also take place near our borders, in the Kaliningrad region, Lithuania cannot just watch,” Anusauskas said in a Twitter post.
The Kaliningrad exclave, a former German territory that was seized by the Soviet Union in World War II and which is now sandwiched between NATO members Lithuania and Poland, leaves its population cut off from Russia’s main territory.
Germany Raids Properties Linked to Oligarch Usmanov (10:30 a.m.)
German authorities are conducting nationwide raids of properties linked to Alisher Usmanov and as part of a probe against the sanctioned Russian billionaire.
Two dozen sites in Bavaria, Baden-Wuerttemberg, Schleswig-Holstein and Hamburg are being searched, Munich prosecutors said in statement. They’re probing Russian citizens who are on the sanctions list. While no names where disclosed, one of the targets is Usmanov, a person familiar with the matter said.
China Calls for ‘Dialog and Consultation’ (10:20 a.m.)
“China’s position on the Ukraine crisis is consistent and clear,” Foreign Ministry spokesman Wang Wenbin said at a regular press briefing in Beijing. “We call on all parties to have dialog and consultation to end the fighting and find a way to address the legitimate security concerns of all parties. We hope the international community can create the space and conditions for this to happen.”
West Can’t Give up in Face of Putin’s Nuclear Blackmail, Latvia Says (10 a.m.)
“Putin cannot come to terms with failures in his own plan for the occupation of Ukraine and on the battlefield, so he is ready to escalate the situation with both conventional threats and nuclear blackmail and other elements,” Latvian Defense Minister Artis Pabriks said in an emailed statement.
“The entire democratic world must tell Russia directly and unequivocally that no amount of fake referendums in the occupied territories of Ukraine will change our attitude towards this unjust war,” Pabriks said. “I call on all of western society not to succumb to Russia’s nuclear blackmail.”
Germany Says Mobilization ‘Bad and Misguided’ (9 a.m.)
Germany’s vice chancellor condemned Putin’s decision to order a partial mobilization and said the government in Berlin will discuss “how to react” to what he called Russia’s latest “escalation.”
“This is another bad and misguided step,” Robert Habeck, who is also the economy minister, told reporters in Berlin. “For me and for the federal government it’s in any case clear that we will continue to fully support Ukraine at this difficult time.”
Global Assets Fluctuate on Escalation of Tensions (9:20 a.m.)
A group of global assets fluctuated on the escalation of tensions in Ukraine after Putin’s address. Both the euro and China’s offshore yuan fell, extending their modest losses on the day earlier as traders prepared for another hike by the Federal Reserve. In commodities, West Texas Intermediate crude surged above $85 a barrel after fluctuating earlier in the session. European natural gas prices also rose.
Oil Jumps on News of Partial Mobilization (8:50 a.m.)
Oil prices spiked after Putin’s announcement. Brent rose as high as $92.57 a barrel in the London morning, a gain of about $1.75 from where it was before the news. The escalation adds another layer of uncertainty about Russian oil output because the west has already taken multiple measures targeting the Kremlin’s revenues from petroleum sales — and any further steps could impact the nation’s supply.
Wheat Extends Biggest Gain Since March as Russian Tensions Mount (8:45 a.m.)
Wheat extended its biggest gain since March as Putin pledged the annexations. Grain traders are worried that this throws further into doubt the future of the Black Sea export corridor for Ukrainian grain, which requires the Kremlin’s approval to continue operating.
Putin Says US, Allies Seeking to ‘Destroy’ Russia (8:20 a.m.)
The Russian President said in his televised address Wednesday that Russia is fighting the full might of the North Atlantic Treaty Organization. The US and its allies, he said, are seeking to “destroy” Russia.
“We will definitely use all means available” to defend Russian territory,” Putin said. “That’s not a bluff.” The partial mobilization will mean that reservists will be drafted into military service, Putin said, starting immediately.
Germany Nationalizes Uniper to Avert Energy Collapse (8 a.m.)
Germany said it will nationalize Uniper SE in a historic move to rescue the country’s largest gas importer and avert a collapse of the energy sector in Europe’s biggest economy.
Chancellor Olaf Scholz’s ruling coalition is determined to ensure Uniper’s survival in coming months, when the energy crunch could worsen as temperatures fall heading into winter.
Zelenskiy Says Fighting Initiative Belongs to Ukraine (7:50 a.m.)
The situation on the front line “clearly indicates” that the initiative belongs to Ukraine in its war against Russia, Zelenskiy said in his regular nightly address to the nation Tuesday. He vowed more support for Ukraine’s army and intelligence service, “for everyone who is gradually restoring our territorial integrity,” according to his statement.
“Our positions do not change because of the noise or any announcements somewhere,” Zelenskiy said referring to a forthcoming address by Putin. “And we enjoy the full support of our partners in this.”
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