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Sanctions against Russia could lead to a new global economic crisis, Kremlin says

Red Square, Moscow

Mike Hewitt | Getty Images

The Kremlin warned that new Western sanctions imposed on Russia would have a devastating impact on the global economy, and start a new crisis.

“The new additional steps that Brussels and Washington are probably thinking about now, they will, of course, hit the global economy,” Kremlin spokesman Dmitry Peskov told reporters during a daily briefing.

“Therefore, this can only lead to an increase in trends towards a global economic crisis,” he said, adding that Moscow was “monitoring this very carefully.”

Peskov said that no nation in the world has faced the cadence and volume of sanctions as Russia.

— Amanda Macias

Lavrov heads to New York to hold meetings at the United Nations

Russian Foreign Minister Sergei Lavrov gives an annual press conference on Russian diplomacy in 2021, in Moscow on January 14, 2022.

Dimitar Dilkoff | Afp | Getty Images

Russian Foreign Minister Sergey Lavrov will take the helm of the United Nations Security Council on Monday as the Kremlin’s war in Ukraine appears to have no end in sight.

The presidency of the Security Council rotates every month among its member nations.

Russia last held the presidency of the Security Council, the U.N. arm dedicated to preserving peace, last February when Moscow launched its full scale invasion of Ukraine. Russia is also a permanent member of the Security Council and holds veto authority of any measure put before the international forum.

Lavrov is expected to hold several meetings before the Security Council and will meet separately with U.N. Secretary General António Guterres while in New York.

— Amanda Macias

Germany announces deal to repair tanks for Ukraine in Poland

Ukrainian Minister of Defence Oleksii Reznikov gestures during an in-person Ukraine Defense Contact Group meeting at Ramstein Air Base, southwestern Germany, on April 21, 2023. 

Sebastian Gollnow | AFP | Getty Images

Germany’s Defense Minister Boris Pistorius said Germany, Poland and Ukraine signed an agreement for a hub to repair Leopard tanks used in Ukraine to fight Russian forces, Reuters reported.

During a meeting of allies at the Ramstein air base, Pistorius said all parties agreed on how to finance the hub, which will cost about 150 million to 200 million euros ($384 million) a year and could begin operations at the end of May, according to Reuters.

— Melodie Warner

Yandex acquires Uber’s remaining stake in Russian taxi joint venture

Yandex Taxi and Uber taxicabs in a Moscow street.

Getrty Images | TASS | Vyacheslav Prokofyev

The tech company Yandex acquired Uber‘s remaining stake in their joint taxi venture for $702.5 million, ending Uber’s involvement in Russia, according to a Reuters report.

In 2017, the companies combined their ride-sharing businesses in Russia and neighboring countries, and Uber divested its stake in a food tech and delivery joint venture with Yandex in 2021, Reuters reported.

Reuters said Uber could not immediately be reached for comment.

— Melodie Warner

Three ships leave Ukrainian ports under Black Sea Grain Initiative

Grain corridor traffic seen from Istanbul on April 18, 2023 in Istanbul, Turkey. 

Cemal Yurttas | Getty Images

Three ships left Ukraine ports under the Black Sea Grain Initiative, a deal brokered in July between Ukraine, Russia, Turkey and the United Nations.

One ship departed the port of Chornomorsk, carrying 58,134 metric tons of corn to Germany. The other two ships set sail from Odesa, carrying 31,544 metric tons of corn and wheat destined for Spain.

A day prior, no ships left Ukraine’s ports.

The humanitarian sea corridor eased Russia’s naval blockade and reopened three key Ukrainian ports. Ukraine and the U.N. pushed for a 120-day extension of the deal in March, but Russia has said it may only acknowledge the extension for 60 days.

— Amanda Macias

Russia’s Lavrov slams Western sanctions during tour through Latin America

Russian Foreign Minister Sergei Lavrov’s latest comments come as he carries out a tour of Latin American countries this week, a trip seen as a way for Russia to cement its alliances with countries in the region.

Anadolu Agency | Anadolu Agency | Getty Images

Russian Foreign Minister Sergey Lavrov slammed U.S. sanctions during a visit to Cuba, the last stop on a tour of Latin America.

Russia is one of Havana’s few suppliers of oil, a lifeline the island nation has counted on amid decades of severe U.S. sanctions.

Lavrov called for like-minded countries to “join forces” in order to counter “illegal unilateral pressure” by the West. Before Cuba, Lavrov met with counterparts in Brazil, Nicaragua and Venezuela.

In the weeks following Moscow’s full-scale invasion of Ukraine, the U.S. alongside Western allies coordinated punishing rounds of sanctions that launched Russia as the most sanctioned country in the world.

— Amanda Macias

Severe mud likely slowing both sides of Ukraine conflict, British Ministry of Defence says

A Ukrainian infantryman of the 57th Separate Motorized Infantry Brigade “Otaman Kost Khordienko” walks down a muddy road in east Ukraine, on April 13, 2023, amid Russia’s military invasion on Ukraine. 

Anatolii Stepanov | AFP | Getty Images

“Severe” mud arising from soft ground conditions across most of Ukraine is “highly likely slowing operations for both sides of the conflict,” the U.K. Ministry of Defence signaled in its daily intelligence update on Ukraine for April 21.

Ukraine’s muddy season of “rasputitsa,” which sets in late fall and early spring, has historically played a role in commanding the pace of regional military campaigns, surprising several invading armies.

A Ukrainian armored vehicle drives on a muddy road near Bakhmut in the Donbas region, on March 9, 2023. 

Aris Messinis | AFP | Getty Images

The U.K. defense ministry expects surface conditions to improve over the coming weeks and stressed that Russian online outlets are likely exaggerating the mud impact on Ukrainian forces.

“The threat from mines probably continues to be a more important factor in limiting the combatants’ off-road manoeuvre,” it said.

Ruxandra Iordache

Kremlin says it is monitoring reports of G-7 ban on exports to Russia

“We are carefully monitoring this, we are aware that both the U.S. and the EU are actively considering new sanctions,” Kremlin spokesperson Dmitry Peskov said in comments reported by Reuters.

Anadolu Agency | Anadolu Agency | Getty Images

Russia is monitoring reports of a potential ban of Russia-bound exports from Western countries, warning that current and further sanctions will injure the world economy.

“We are carefully monitoring this, we are aware that both the U.S. and the EU are actively considering new sanctions,” Kremlin spokesperson Dmitry Peskov said in comments reported by Reuters, adding that such measures will “of course, also hit the global economy” and “may lead to an increase in the trend towards a worldwide economic crisis.”

Earlier, Japanese news agency Kyodo reported that the Group of Seven countries were considering a ban on nearly all exports to Russia, citing a Japanese government source. CNBC has not been able to independently verify the report.

Ruxandra Iordache

Canada announces $29 million package for Ukraine

“We will continue to stand shoulder to shoulder with Ukraine in the short and the long term,” Canadian Defense Minister Anita Anand pledged on Friday, revealing the additional assistance measures.

Bloomberg | Bloomberg | Getty Images

The Canadian government on Friday announced a 39 million Canadian dollar ($28.9 million) package for Ukraine, which will include 40 sniper rifles, radio sets and a donation to a NATO fund in support of Kyiv.

The lion’s share of the contribution — CA$34.6 million — will be directed toward the Ukraine Comprehensive Assistance Package Trust Fund.

“We will continue to stand shoulder to shoulder with Ukraine in the short and the long term,” Canadian Defense Minister Anita Anand pledged on Friday, revealing the additional assistance measures.

“All eight Leopard 2 main battle tanks committed by Canada to Ukraine have been delivered, and we’ve deployed Leopard Gunnery Skills Trainers to train Ukrainian crews,” she added.

Anand has arrived at the Ramstein Air Base in Germany, where Ukraine’s Western allies will attend a meeting to discuss coordinated action in Ukraine.

NATO chief reassures Ukraine will eventually join the military alliance

NATO Secretary General Jens Stoltenberg (L) and Ukrainian President Volodymyr Zelenskyy (R) attend a joint a press-conference, following their meeting in Kyiv, Ukraine on 20 April 2023, amid Russia’s invasion of Ukraine.

STR | Nurphoto | Getty Images

NATO members have agreed that Ukraine will join the military alliance, but the current focus is on Kyiv prevailing in the war against Russia and preventing new attacks, NATO Secretary-General Jens Stoltenberg said Friday, in comments reported by Reuters.

Stoltenberg paid an unexpected visit to Kyiv — his first since Russia’s full-scale invasion of Ukraine — on April 20.

Ukrainian President Volodymyr Zelenskyy has repeatedly pushed for fast-tracked NATO membership, in addition to weapons support from the military allies. Ukraine’s Western allies will on Friday convene at the Ramstein Air Base in Germany to coordinate further assistance to Kyiv.

Ruxandra Iordache

Russia accidentally strikes own city of Belgorod

A view of the damaged area after flight of an Su-34 aircraft of the Aerospace Forces over the city of Belgorod, there was an abnormal descent of an aircraft munition in Belgorod city center near the Ukrainian border, Russia on April 21, 2023. 

Belgorod Region Governorate | Anadolu Agency | Getty Images

A Russian warplane accidentally released a weapon on the Russian city of Belgorod, north of the border of Ukraine, damaging buildings and leading to explosions, the Russian ministry of defense told state news agency Tass.

BELGOROD, RUSSIA – APRIL 21: (—-EDITORIAL USE ONLY – MANDATORY CREDIT – ‘BELGOROD REGION GOVERNORATE / HANDOUT’ – NO MARKETING NO ADVERTISING CAMPAIGNS – DISTRIBUTED AS A SERVICE TO CLIENTS—-) A view of the damaged cars after flight of an Su-34 aircraft of the Aerospace Forces over the city of Belgorod, there was an abnormal descent of an aircraft munition in Belgorod city center near the Ukrainian border, Russia on April 21, 2023. Russiaâs Defense Ministry said Thursday that an explosion in the city of Belgorod near Ukraine was the result of an emergency ammunition drop. The explosion knocked down power supply lines, shattered windows in nearby apartment buildings, damaged several cars and left a 20-meter crater, Belgorod regional Governor Vyacheslav Gladkov said in a statement. (Photo by Belgorod Region Governorate / Handout/Anadolu Agency via Getty Images)

Anadolu Agency | Anadolu Agency | Getty Images

Russia’s defense ministry did not specify what kind of weapon had been unleashed, but identified the plane as a Sukhoi Su-34 fighter — a medium-range supersonic bomber.

Mayor of the city of Belgorod Valentin Demidov speaks with a local resident in a damaged apartment as he visits the accident scene following a large blast in a street in Belgorod, Russia, April 20, 2023. 

Mayor Of Belgorod | Via Reuters

Belgorod regional Governor Vyacheslav Gladkov late on Thursday said on Telegram that three people were injured following local explosions, with no dead reported. He announced a state of emergency at Belgorod, where he said a crater with a radius of 20 meters has formed across a main street.

Mayor of the city of Belgorod Valentin Demidov visits the accident scene following a large blast in a street in Belgorod, Russia, April 20, 2023. 

Mayor Of Belgorod | Reuters

Russian party proposes additional tax on Russia’s wealthiest to support war effort

Members of a Russian political party have put forward a proposal to increase the income tax rate of Russia’s wealthier citizens with a personal income of more than 12 million rubles ( $147,000 ) by 2% and route this additional funding to support Russia’s military offensive in Ukraine, Russia state news agency Tass reported.

The money emerging from additional taxes will be directed to support both mobilized soldiers and their families, the measure proposes.

Russian hydrocarbon-reliant revenues have been increasingly stifled by Western sanctions on its seaborne exports and crude oil and oil products, which have been in place since December and February, respectively.

Drawing from data from the World Bank, the International Monetary Fund and the Organization for Economic Cooperation and Development, the European Council says that Russia’s GDP shed 2.1% in 2022.

Ruxandra Iordache

Biden speaks with EU’s von der Leyen on imposing additional costs on Russia

U.S. President Joe Biden speaks on the phone with French President Emmanuel Macron from the Oval Office of the White House in this official White House handout photo released after the call in Washington, U.S., September 22, 2021.

Adam Schultz | White House | Reuters

U.S. President Joe Biden spoke with President Ursula von der Leyen of the European Commission on additional ways allies can support Ukraine.

Biden and von der Leyen reiterated their commitment to ensuring Ukraine has the economic and security assistance it needs while also continuing to impose costs on the Kremlin.

“The leaders also discussed ongoing joint efforts to accelerate the transition to clean energy economies” in an effort to mitigate any dependence on Russian fuel, according to a readout provided by the White House.

The two also discussed regional security issues related to China and Taiwan.

— Amanda Macias

Secretary Austin heads to Germany for Ukraine Defense Contact Group

US Defence Secretary Lloyd J. Austin III (2nd R), NATO Secretary General Jens Stoltenberg (L) and Ukrainian Defence Minister Oleksii Reznikov (R) attend the Ukraine defence contact group meeting at NATO headquarters during the first of two days of defence ministers’ meetings on February 14, 2023 in Brussels, Belgium.

Dursun Aydemir | Anadolu Agency | Getty Images

U.S. Secretary of Defense Lloyd Austin is en route to Germany to host the Ukraine Defense Contact Group.

Earlier in the week, Austin met with counterparts in Sweden to discuss Ukrainian security assistance and Stockholm’s bid to join the NATO military alliance.

The Ukraine Defense Contact Group is a coalition of nearly 50 countries supporting Ukraine’s military needs. The upcoming meeting at Ramstein Air Base will be the eleventh time the group has met since it was formed last April.

— Amanda Macias

It’s time for NATO to invite Ukraine into the alliance, Zelenskyy says

NATO head Jens Stoltenberg (L) shakes hands with Ukrainian President Volodymyr Zelenskyy at the end of a joint press conference in Kyiv, on April 20, 2023.

Dimitar Dilkoff | Afp | Getty Images

Ukraine’s President Volodymyr Zelenskyy said Thursday that it was time for NATO to invite Ukraine to join the Western military alliance, repeating a much-heard plea from Kyiv for fast-track membership.

Speaking at a joint news conference in Kyiv with NATO Secretary-General Jens Stoltenberg, who made an unannounced visit to Kyiv Thursday, Zelenskyy said he had been invited to the next NATO summit in July, but that Kyiv wanted more.

“I am grateful for the invitation to visit the summit, but it is also important for Ukraine to receive the corresponding invitation,” he told reporters in comments reported by Reuters.

“There is not a single objective barrier to the political decision to invite Ukraine into the alliance and now, when most people in NATO countries and the majority of Ukrainians support NATO accession, is the time for the corresponding decisions.”

Stoltenberg said that Ukraine’s NATO membership bid — which it launched last September — and security guarantees would be high on the agenda at the alliance’s July summit, adding that Ukraine’s rightful place was in NATO.

Despite Stoltenberg’s words of support and encouragement, analysts believe Ukraine’s NATO membership bid faces significant hurdles and could take years to be approved, if it is at all.

Aside from the active war that’s ongoing in Ukraine, NATO members such as Hungary and Turkey would likely be very reluctant to further antagonize Russia by admitting Ukraine into the alliance. One of Moscow’s key bugbears ahead of the war was a potential further expansion of NATO eastwards to include Ukraine, despite that prospect being, even at that time, a distant possibility.

— Holly Ellyatt

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