a Russian drone attack knocks down Kyiv’s energy supply; The ruble is collapsing

European Union energy ministers approved a “dynamic” ceiling for natural gas prices on Monday after two months of intense negotiations.

Capping gas prices has been controversial for European officials. While many EU member states have argued that the measure is necessary to reduce prohibitive energy costs for consumers, others have expressed concern about the potential. Market implications of this policy.

“We’ve done our job, we have the deal. Another impossible mission accomplished,” Josef Sekela, minister of industry of the Czech Republic, which holds the presidency of the Council of the European Union, told a news conference.

The energy ministers overcame their differences and agreed to what they call a market correction mechanism. It will be triggered automatically under two conditions: if gas contracts in the first month exceed €180 ($191) per megawatt-hour at the Royal Dutch conversion facility—the main benchmark for natural gas prices in Europe—for three consecutive business days; The price is 35 euros higher than the reference price for liquid natural gas in international markets for the same period.

The measure will be applied from February 15. When applied, a “dynamic bid limit” will be set on futures natural gas transactions for a period of 20 business days.

Read the full story here.

– Jenny Reed

Shareholders of German energy company Uniper have approved a bailout package for the gas supplier, paving the way for its nationalization.

The government announced its plan to nationalize Uniper in September, expanding state intervention in the energy sector to prevent energy shortages resulting from Russia’s war in Ukraine. The agreement builds on an initial bailout package agreed in July and includes an 8 billion euro ($8.5 billion) capital increase to be financed by Germany.

As part of the agreement, the government will acquire approximately 99% of the energy supplier, which was previously controlled by Finland-based Fortum. The Finnish government owns the majority stake in Fortum.

Uniper said its shareholders “approved the proposed capital measures by a large majority” at an extraordinary general meeting on Monday.

She added that approval by the European Commission under the state aid law was “expected in the near future”.

– News agency

Russian state media reported Monday afternoon that Russian President Vladimir Putin has arrived in Minsk for talks with Belarusian President Alexander Lukashenko.

The meeting, Putin’s first in the Belarusian capital since 2019, comes amid growing concerns that Moscow may be pushing its ally to increase its military involvement in the war.

Speaking to Russian news agencies earlier on Monday, Kremlin spokesman Dmitry Peskov called Belarus Russia’s “number one ally,” but said suggestions that Moscow wants to pressure Minsk into joining the conflict are “stupid and unfounded slanders.” .

Karen Gilchrist

UK Prime Minister Rishi Sunak is in Latvian capital Riga to meet other members of the Joint Expeditionary Force (JEF), a UK-led coalition of European militaries that share tactical knowledge and conduct joint exercises to increase interoperability.

He is set to announce a new artillery package for Ukraine and urge other member states to continue their support to Ukraine. He will meet British forces in neighboring Estonia later in the day.

Ahead of the visit, Sunak said in a statement: “From the Arctic Circle to the Isle of Wight, the UK and our European allies have been at full swing in our response to the invasion of Ukraineand we remain steadfast in our aspiration for peace in Europe once again… I know that this Joint Expeditionary Force summit will only confirm our close friendships and unwavering support for Ukraine.”

JEF includes the United Kingdom, Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, the Netherlands, Norway and Sweden.

– Natasha Turak

The Kremlin on Monday dismissed suggestions that President Vladimir Putin’s visit to Belarus indicated Minsk’s deepening involvement in the war.

Russia’s RIA Novosti news agency quoted Kremlin spokesman Dmitry Peskov as saying the reports were “baseless” and “stupid” hours before Putin arrived in the Belarusian capital.

Putin’s Monday afternoon visit is his first to the former Soviet ally in more than three years and comes as the Belarusian Defense Ministry said it had finished a series of inspections on the military readiness of its armed forces.

Karen Gilchrist

Ukrainian President Volodymyr Zelensky on Monday called on Western leaders to meet in Latvia to present a wide range of weapons systems in Kyiv’s ongoing war with Russia, Reuters reported.

“I ask you to increase the possibility of supplying air defense systems to our country, to help speed up the relevant decisions of our partners,” Zelensky asked during his speech via video link to the meeting of leaders in Riga.

Western allies, including Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, the Netherlands, Norway and Sweden, are gathering in the Baltic Sea country for the British-led gathering on Monday.

Karen Gilchrist

Belarus’ defense ministry said on Monday it had completed a series of inspections of the military readiness of its armed forces, signaling a possible shift to a more active role in the conflict.

Belarus, Russia’s ally, which served as a staging post for Moscow to launch its invasion Ukraine In February, a series of military maneuvers took place over the last weeks.

It comes as Russian President Vladimir Putin heads to Minsk on Monday, adding to fears that he could pressure his former Soviet ally to join a new assault on Ukraine.

Karen Gilchrist

The Russian ruble It fell to a more than six-month low against the dollar on Monday, as lower oil prices and growing fears of sanctions threatened to hurt the country’s export earnings.

The ruble was 2.4% weaker against the dollar, trading at 66.22 as of 9:00 GMT Monday. The decline marked the lowest level for the ruble since May 30.

Karen Gilchrist

Governor Oleksiy Kobyla said, according to Reuters, that a Russian drone attack caused “fairly serious” damage in the Kyiv region on Monday.

Three districts in the region were left without electrical supplies, the governor said, after Russia unleashed 35 “kamikaze” drones over Ukraine in the early hours of Monday morning.

Reuters reported that the attack, which destroyed vital infrastructure, marked Moscow’s third air attack on the Ukrainian capital in six days.

Karen Gilchrist