Latest news about Russia and Ukraine war

European Union leaders on Friday reacted to comments by Russia that it considers its country at war due to Western intervention in Ukraine.

Meanwhile, European Commission President Ursula von der Leyen said Russia's comments showed the Kremlin had betrayed the Russian people by not acknowledging the war and spreading disinformation, Reuters reported.

Separately, French President Emmanuel Macron said it was a mistake to believe that Russia's aggression would end in areas such as Donbass and Crimea, which are partially or fully occupied by Russia. He also added that the comment increased uncertainty about Russia's military goals, according to Reuters.

European Union Council President Charles Michel said Russia's comments proved the importance of expanding Europe's defense sector.

“We have to tell people across the EU that if we want peace, if we want security and stability, it's very important to improve our defense capabilities and build a real European Union,” he said, according to Reuters. No,” he said.

Michel also said the EU was “not threatened” by Russia's statement that it would retaliate if it used profits from frozen Russian assets to support Ukraine.

European Union leaders on Thursday agreed in principle to use proceeds from frozen Russian assets to support Ukraine.

The proposal includes arms purchases for Ukraine and could take effect within months, according to the leaders who met at the Brussels summit.

European Commission President Ursula von der Leyen said the first 1 billion euros ($1.08 billion) under the scheme could be paid out as early as July 1. The European Commission estimates that the profits from this asset could be worth up to €3 billion per year.

This proposal differs from the idea of ​​issuing bonds proposed by the United States and Brussels.

Ahead of the announcement, the Kremlin said Thursday it would retaliate if such measures were taken.

— Karen Gilchrist

Reuters reported on Friday that Ukraine could be removed from the “war supporters” blacklist within days.

The blacklist operation could be scrapped as soon as Friday after opposition from China, France and other countries, Reuters reported, citing people familiar with the plan. Websites that provide information about individuals under Western sanctions or where Russian weapons parts come from may also be shut down.

CNBC could not independently verify the information. Ukraine's Foreign Ministry did not respond to requests for comment.

The campaign, which has no legal basis, aims to expose companies that appear to be supporting Russia's economy by paying taxes on their operations in the country.

This comes as Kiev seeks to maintain support from allies around the world more than two years after Russia's full-scale invasion.

— Karen Gilchrist

Russia's central bank on Friday kept interest rates unchanged at 16%, the second straight rate of interest rate hikes, following a series of rate hikes aimed at curbing high inflation.

The decision is in line with analysts' expectations and comes as the central bank expects inflation to fall to 4-4.5% this year from 7.4% in 2023.

— Karen Gilchrist

The Kremlin announced on Friday that Russia was at war due to Western intervention in Ukraine, Reuters reported, Tass news agency reported.

Spokesman Dmitry Peskov also said Russia needs to “liberate” the Ukrainian regions of Donetsk, Kherson, Luhansk and Zaporizhia that were annexed to Russia in 2022.

— Karen Gilchrist

Ukraine's energy grid has begun receiving emergency aid from abroad after a series of Russian airstrikes damaged energy facilities, national grid operator Ukrenergo said on Friday.

The company said in a Telegram post that Poland, Romania and Slovakia were providing assistance after the attack left more than 1 million people without power.

Occupied Ukraine's Zaporizhia nuclear power plant, the largest in Europe, was on the verge of a power outage on Friday morning after Russia attacked a nearby hydroelectric dam.

Shortly afterward, Russian-led management announced that the plant's main transmission lines were back online after the high-voltage lines supplying electricity to the plant were repaired.

— Karen Gilchrist

Kharkov faced several power outages on Friday following a Russian missile attack believed to have targeted Ukraine's energy infrastructure, Mayor Ihor Terekhov said.

Telekhov said in a series of Telegram posts that there were about 15 explosions overnight, which also disrupted water supplies and transportation systems. He reported no casualties.

— Karen Gilchrist

The International Monetary Fund on Thursday approved a third review of Ukraine's $15.6 billion loan program, allowing the conflict-stricken country to receive $880 million in budget support and bringing the total disbursed to $5.4 billion. becomes.

The World Financial Institution said Ukraine's economy showed “significant resilience” in 2023, but said risks remained from Russia's continued onslaught. However, Gavin Gray, the head of Ukraine's delegation, told reporters that the fund still expects the war in Ukraine to end by the end of 2024, according to Reuters.

The IMF money is expected to arrive within days and follows a tranche of EU funds received on Wednesday. This comes as a US funding bill remains pending in Congress.

— Karen Gilchrist

Washington has reportedly asked Kiev to halt drone attacks on Russia's energy infrastructure, warning that the attacks risk pushing up global oil prices, people familiar with the discussions said. told FT.

One source said the White House is becoming increasingly frustrated by Ukraine's brazen drone attacks on Russian refineries, terminals and storage facilities.

According to the report, the alert was sent to Ukraine's State Security Service and Military Intelligence Directorate, which is stepping up drone strikes against Russian targets on land, sea and air.

Despite Western sanctions, Russia remains one of the world's most important energy exporters, and U.S. officials fear such attacks could lead to retaliatory attacks on Western energy infrastructure. expressed.

— Karen Gilchrist

Hungarian Prime Minister Viktor Orbán congratulated Russian President Vladimir Putin on his re-election, state news agency MTI reported on Thursday.

According to the agency, Prime Minister Orbán said in the letter that cooperation between Hungary and Russia “is based on mutual respect and allows us to discuss important issues even in the current very difficult geopolitical situation.” Ta.

— Reuters

Following an inspection of several factories by Russian Defense Minister Sergei Shoigu, the Ministry of Defense announced on Thursday that production of Russian artillery and weapons has increased significantly.

In a Telegram post translated by CNBC using Google Translate, Shoigu was quoted as saying that production of artillery has increased by almost 2.5 times since existing factories were expanded and new ones opened.

According to the ministry, Shoigu also said that production of ammunition parts has increased nearly 22 times, and one factory he visited is producing five times more artillery and aviation weapons than before.

Russia's defense spending has skyrocketed since the war began, boosting the country's economy, which is far stronger than many observers had previously expected. But this may not last long, Polish Foreign Minister Radosław Sikorski told CNBC on Tuesday.

“Putting an economy in crisis or war mode increases GDP by producing more shells, tanks, and everything else that gets destroyed, but it also wastes the country's resources and wealth. .It has its limits,” he said.

— Sophie Kiderin