US Halts Debt Repayments to Banks; Ukrainian Military Warns of Renewed Assault in Donetsk

LOCAL NEWS

• Zelensky will address the UNSC today following accusations of war crimes lodged against Putin and Russia for the atrocities in Bucha. Ukrainian military intelligence warns that Russian troops are readying for an attack on the remaining territory of Donetsk with the goal of fully occupying the separatist republics.
  • Meanwhile, reports suggest Russia has nominated its own mayor of Mariupol, despite the ongoing battle for the city. Russia said Ukrainian troops may leave the city as long as they lay down their arms – RTRS, bbg, Tass
• On ceasefire talks, Lavrov said it is too soon to say how increased realism from Ukraine might turn into an actual agreement, but talks are continuing. Lavrov said the West’s failure to engage with Russia in serious dialogue is not in anyone’s interest.
  • Russia has also conscripted an additional 130k troops for the conflict in Ukraine. Two thirds of the troops surrounding Kyiv have moved back to Belarus to be repositioned – RTRS, Sky
• US stops Russian bond payments on over $600m in a bid to raise pressure on Moscow. The US Treasury had been allowing Russia to use reserves held at US banks to pay its coupons until yesterday. A $552.4m principal and $84m coupon were due yesterday.
  • US spox said Russia must now choose between default or draining its valuable remaining reserves with the 30-day grace period having been triggered. Russia has 15 international bonds outstanding worth $40bn - RTRS
• Western Officials warn that Russia will likely face a worse recession than in 1998 with GDP growth set to decline -7-12% in 2022. This comes as Western nations say there’s always more that can be done RE sanctions following scenes of human rights abuses in Bucha – Sky

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