The Kremlin calls the peace plan for Ukraine and the US “absurd”says it will tighten Russia’s enforcement of the oil price cap

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This was CNBC’s live blog tracking developments on the war in Ukraine.

Russia has introduced its fifth airstrike on Ukraine’s capital Kyiv this month, Ukrainian officials reported Wednesday, saying Ukrainian air defenses intercepted 18 of the 19 Russian drones introduced into the city, as well as in Odesa, Kherson and other regions.

The development comes as Kyiv struggles to obtain approval for aid packages from the U.S. and EU and as its troops continue to face heavy fighting amid a bitterly cold winter.

Speaking to reporters on Wednesday, Kremlin spokesman Dmitry Peskov said there is no basis for peace talks between Russia and Ukraine lately, calling Ukrainian President Volodymyr Zelensky’s 10-point peace plan “absurd. “The plan includes demands for the recovery of all Ukrainian territories. Borders were identified around the world and the withdrawal of all Russian troops were identified.

Peskov also accused the UK of pressuring Kyiv to reject a draft peace deal shortly after Russia’s full-scale invasion in February 2022.

Separately, the US Treasury said it would enforce the Russian oil value cap by stepping up measures targeting shipowners and ships selling Russian crude above $60 a barrel.

“Today’s designations demonstrate our commitment to upholding the principles of the price cap policy, which reinforces the goals of supporting strong energy markets while cutting Russian revenues intended to fund its war against Ukraine,” said Deputy Treasury Secretary Wally Adeyemo.

Former TV journalist Ekaterina Duntsova ran Wednesday for Russia’s March presidential election, which Vladimir Putin will win handily.

Duntsova, 40, called in an interview with Reuters last month for an end to fighting in Ukraine and political prisoners, adding opposition leader Alexei Navalny.

He submitted documents to officials of the Central Election Commission to officially participate in the elections in which Putin’s victory is widely perceived as a foregone conclusion by both his supporters and the warring parties.

Putin, 71, has been in office as president or prime minister since 1999 and is seeking another six-year term. While Navalny is serving criminal sentences totaling more than 30 years and other more sensible critics of the Kremlin are in jail or abroad because of the threat of arrest, there are no established opposition figures to challenge him.

Navalny’s supporters call the election a farce, saying the Kremlin controls who can run and can gently manipulate voting if compulsory, an opaque system of electronic voting. The Kremlin says Putin will win because he has overwhelming public support, with opinion ratings of around 80%. in opinion polls.

The next hurdle for Duntsova will be to get 300,000 signatures for her candidacy across Russia, with the deadline set for January 31.

Putin announced earlier this month that he would run, but no other candidate has formally applied so far. Those backed by a political party only need 100,000 signatures.

In her interview with Reuters, Duntsova avoided using the word “war” to describe the Russia-Ukraine conflict, which Putin calls a “special military operation”, and acknowledged she was afraid.

“Any practical user who took that step would be afraid, but concern would not prevail,” he said.

-Reuters

The US Treasury said it would enforce the Russian oil value cap by stepping up measures targeting shipowners and ships selling Russian crude above $60 a barrel.

The cap is a joint initiative between Western allies which seeks to curb Russia’s ability to fund the war in Ukraine. It sees countries signed up to the cap restrict access to financial and professional services to those transporting seaborne crude trading above the cap.

However, some have argued that stricter enforcement is causing symptoms that vessels are evading the cap.

Urals crude is currently trading at a five-day average of $59.48 a barrel, according to Neste data, but has mostly been above the cap through the summer and fall.

The U. S. said it was updating its guidance on implementing the cap and “designating [as sanctioned] a shipping manager owned by the Russian government, as well as a number of hard-to-understand oil investors who have emerged as common participants in the shipping of Russian-sourced oil. . . . after the imposition of value limits.

-Jenni Reid

The plan to deploy a permanent German brigade to Lithuania from 2027 would lead to an “escalation of military tensions” between Russia and the NATO military coalition, Russian Foreign Ministry spokeswoman Maria Zakharova told Reuters.

Germany and Lithuania agreed on Tuesday that around 4,800 German troops stationed in Lithuania would be combat-ready by 2027.

Russia has continually warned the NATO military alliance not to deploy labor corps in neighboring territories or near its borders, measures it sees as threats to its own national security. In the past, he has cited Ukraine’s bid to join NATO and perceived risks. to their safety as an explanation for Moscow’s invasion in February 2022.

Germany and Lithuania are full members of NATO.

-Ruxandra Iordache

Kyivstar, Ukraine’s mobile phone operator, has announced that it has restored its services following a cyberattack last week.

“The Kyivstar network completes its stabilization after the largest hacker attack. We will soon inform you about the accrual of bonuses and compensation for subscribers. Stay tuned! Thank you for your understanding and support,” the company said on social media. media, according to a statement. Google Translate.

The firm said it has also surmounted communication difficulties that were sparked earlier this morning in a number of cities in western and southern Ukraine, with international roaming now also available.

Telecommunications facilities are disrupted during wartime due to damage to infrastructure and power lines.

— Ruxandra Iordache

The estimate of Ukraine’s external financing desires for next year has been lowered from $41 billion to $37. 3 billion, the country’s Economy Ministry said on Wednesday, citing Finance Minister Sergii Marchenko.

The review, announced at the G7 assembly on Dec. 19, takes into account measures aimed at maximizing state budget revenues and activating the domestic debt market, as well as discounts on state capital budget expenditures.

“In 2023, thanks to the coherent cooperation with international partners, the Ministry of Finance of Ukraine attracted more than USD 39 billion of external financing. By the end of this year, donor assistance will reach about USD 42.3 billion,” Marchenko said.

Ukraine’s GDP expansion is expected to reach 5% in 2023, with inflation falling from 26. 6% last year to 5. 1% next November, the ministry said.

Ukraine relies heavily on foreign investment and aid to its persistent civilian population and war efforts, amid widespread damage caused by the invasion by Russian forces.

-Ruxandra Iordache

In a ruling on a legal challenge to EU sanctions, the EU General Court ruled that Roman Abramovich is the main shareholder of Evraz, a major mining and metals organization that provides a “substantial source of income” to the Russian government.

Abramovich took aim through the EU, which imposed draconian sanctions on Russian officials and businessmen, as well as products and raw materials, following Moscow’s invasion of Ukraine in March 2022.

Read the full story here.

-Jenni Reid

Ukraine already produced more than 50,000 visual first-person (FPV) drones in December, as part of President Volodymyr Zelenskyy’s pledge at a press conference on Wednesday to increase production to 1 million of these devices by 2024.

In addition to FPV drones, Ukrainian Minister of Strategic Industry Oleksandr Kamyshin said in a Google-translated Telegram post, Ukraine is already able to produce more than 10,000 mid-range strike drones and over a thousand drones with a 1,000-kilometer range next year.

At an assembly of the Russian Defense Ministry’s board of directors, Russian President Vladimir Putin said Russian forces have so far struggled to respond to their activities with small drones.

— Ruxandra Iordache

A Russian court has imposed a third fine on tech giant Google, amounting to 4. 6 billion Russian rubles ($50. 81 million) for allegedly failing to provide erroneous data about Moscow’s war in Ukraine, according to a Google-translated update from Russian state news firm Tass. Array.

Google did not respond to a CNBC request for comment on the fine.

Russia has accused its invasion of Ukraine, which it calls a “special army operation,” of an unfair and partisan image in Western media. Moscow maintains strict censorship legislation that criminalizes reporting on the war in Ukraine and has taken action against several journalists, adding Evan Gershkovich, a reporter for the Wall Street Journal.

-Ruxandra Iordache

Lately there is no basis for negotiations with Ukraine and attempting a peace formula without Russia’s participation would be an “absurd process,” Kremlin spokesman Dmitry Peskov said on Wednesday.

“Lately there are no preconditions for nonviolent negotiations on Ukraine,” he said, in remarks translated via Google and relayed via the official Tass news firm on Telegram.

On Tuesday, Russian President Vladimir Putin reiterated his country’s position that Moscow would be willing to discuss Ukraine’s long-term relationship with Kyiv, the United States and Europe, while emphasizing that Russia would seek to protect its national interests, according to Reuters.

Ukraine has said negotiations cannot begin until Russian forces withdraw from its territory.

— Ruxandra Iordache

Chinese President Xi Jinping touted the Beijing-Moscow relationship as a “strategic choice” that is “based on the fundamental interests of the two peoples,” according to Chinese state news outlet Xinhua.

He made the comments at a meeting in Beijing with visiting Russian Prime Minister Mikhail Mishustin.

China and Russia have strengthened their relations over the years and are allies in the BRICS coalition of emerging markets. China is one of the largest consumers of Russian oil, sanctioned through the G7 countries and the EU. Both countries largely share anti-American positions. Strategies.

Earlier this year, on the one-year anniversary of Moscow’s invasion in February, China released a 12-point peace plan for Ukraine that has yet to bear fruit.

-Ruxandra Iordache

Venezuelan President Nicolas Maduro’s communication to Russia will not take a position before the end of the year, and the exact date is still under discussion, Kremlin spokesman Dmitry Peskov told reporters on Wednesday, according to remarks translated through Google and reported through the official Russian news agency Tass.

The Maduro and Putin administrations have flourishing ties and shared interests as manufacturers of the influential OPEC oil alliance and its largely anti-American policies. Estrategias. La Russia has traditionally voiced Maduro’s claims over those of opposition leader Juan Guaidó in Caracas’ presidential crisis. , with Maduro reassuring Putin about his country’s strong aid after Moscow’s invasion of Ukraine.

Sanctioned by Washington, Venezuela saw a fleeting thawing of its relations with the U.S. earlier this year, before the White House threw its weight behind Guyana amid soaring tensions over the two South American countries’ border dispute.

— Ruxandra Iordache

Russia on Tuesday introduced its fifth airstrike on Kyiv this month, Ukraine said.

Ukraine’s air force said its air defense systems intercepted 18 of the 19 drones that attacked Kyiv, as well as the southern port city of Odesa, the southern region of Kherson and other regions.

“According to initial reports, there are no casualties and no destruction in the capital,” the head of Kyiv’s army administration, Serhiy Popko, wrote in a message on Telegram.

Authorities said nine other people in Kherson were wounded in an overnight Russian drone strike, and four of them were children. In addition, two Russian surface-to-air missiles were introduced into the eastern Kharkiv region, but there were no casualties in the attack, the Ukrainian government said.

—Natasha Turak

The U. S. and EU failed to approve their latest military aid packages to Kyiv, sparking fear among many Ukraine supporters and prompting Zelensky to travel to Washington to lobby lawmakers.

Several Republican lawmakers balk at any investment program that doesn’t include what they consider sufficient investment for U. S. border security.

Senate leaders said a deal will most likely not be reached anytime soon. Dick Durbin, the second-ranking Democrat in the Senate, said any progress would likely have to wait until January.

“I hope they prepare the text, roll up their sleeves and finish as soon as we get back in January,” Durbin told reporters.

“I am certain, U.S. and European financial support will continue,” Zelenskyy said during a wide-ranging press conference Tuesday. “I’m confident the United States won’t betray us.”

— Natasha Turak

The Ukrainian military is requesting the mobilization of between 450,000 and 500,000 more people, Ukrainian President Volodymyr Zelensky told a news conference, though he added that no final resolution had been made.

Senior military and government officials still needed to discuss “this very sensitive issue of mobilization,” and then the country’s parliament would have to vote on it, Zelenskyy said.

The progression comes as the president again asks his Western allies for more monetary aid and troops continue heavy fighting in eastern Ukraine amid a freezing winter.

—Natasha Turak

Ukrainian President Volodymyr said he was confident the United States and the European Union would agree to supply investment systems that have been stalled lately due to political opposition.

Zelensky held a lengthy press conference Tuesday afternoon in which he answered questions from reporters for more than an hour.

“I am confident that the United States will not let us down and that what we have agreed to will be fully accepted,” he said, according to a live translation by the BBC. There was a lot at stake, we got a win for the EU, for the €50 billion financing plan, I’m convinced we can achieve all of this. “

Zelensky said army leaders had called for an additional 450,000 to 500,000 people to be mobilized into the army, but under pressure that he needed more arguments and a “comprehensive” plan before approving the costly measure.

In response to a question about Ukraine’s difficulties this year, he noted that Russia had failed to achieve its goals.

He said Ukraine had experienced a “great victory in the Black Sea,” where it was able to resume industry and Russian ships were withdrawn.

When asked if Ukraine was starting to lose the war, he replied: “No. “

However, he mentioned shortages of materiel, artillery shells, ammunition for air defense and anti-tank grenades.

— Jenni Reid

The United Kingdom will continue supporting Ukraine for “as long as it takes,” Foreign Secretary David Cameron said during a press conference with his Italian counterpart Antonio Tajani on Tuesday.

Cameron said there have been three “acts” in the standoff: the first, Russia’s full-scale invasion and failed capture of Kyiv; and the second, the efforts of the Ukrainians to retake part of the territory conquered through Russia.

“I admit that the third act ended in a stalemate on land, but it was enormous good luck in the Black Sea, where Russia fell back. The fourth act has not yet been written, and it is up to us to write it. “he said.

Ukraine’s counteroffensive operation, introduced in June along a long front line to the east and south, has progressed much more slowly than expected as the harsh winter approaches.

The U. K. has been the second-largest provider of military assistance to Ukraine during the war, pledging around 4. 6 billion pounds ($5. 85 billion), according to figures provided through the government. The U. S. provided about $46. 3 billion, according to the Council on Foreign Relations.

Cameron added that Ukraine’s allies, adding the United Kingdom, Italy, Germany, France and the United States, outnumbered Russia 25 to one. “We just have to make that economic strength pay off and we can make Putin lose, and it’s critical that he does. “that,” he said.

The Italian cabinet on Tuesday adopted a decree authorizing the continued supply of “means, fabrics and equipment” to Ukraine in its war effort, Reuters reported. The resolution will now go to Parliament.

While U. S. aid is now at stake, Ukraine also took a hit last week when Hungarian Prime Minister Viktor Orban blocked approval of a 50 billion euro ($54 billion) EU monetary aid package for the country.

-Jenni Reid

Zelensky ‘confidents’ U. S. investment as White House warns aid is about to expire

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