Russia agrees to open humanitarian corridors

Kyiv

RUSSIA agreed to open humanitarian corridors in parts of Ukraine for 12 hours to allow civilians to escape from several cities, Ukrainian Deputy Prime Minister Iryna Vereshchuk said in an emailed statement, even as the US warned that Russian forces were intensifying their bombardment of Kyiv.

Russia is at risk of an "imminent" bond default, Fitch Ratings warned, citing the country's economic isolation after a wave of sanctions, while Starbucks Corp and Coca-Cola Co joined the steady stream of companies suspending operations or pulling out of Russia.

The US and the UK announced import curbs on Russian oil, while Russian President Vladimir Putin signed an order restricting trade in unspecified goods and raw materials. The invasion continues to jolt energy markets, while the rouble dropped on Wednesday (Mar 9) as foreign-exchange trading resumed in Moscow after an extended break.

European Union (EU) leaders will pledge to spend "substantially" more money on defence and security, as well as deliver a strong condemnation of Russia's invasion of Ukraine, when they meet in Versailles, France, starting Thursday. This comes after the bloc approved financing 500 million euros (S$747.7 million) of lethal and non-lethal supplies for Kyiv.

"A stronger and more capable EU in the field of security and defence will contribute positively to global and transatlantic security and is complementary to Nato, which remains the foundation of collective defense for its members," according the summit's draft conclusions, which are still subject to change.

Greece proposed a 6-point plan to address the energy price surge, including a price-cap mechanism in the wholesale electricity market, asking the EU to act fast and decisively to help consumers.

"I strongly believe that unusual times require unusual measures," Greek Prime Minister Kyriakos Mitsotakis said in a letter to European Commission president Ursula von der Leyen.

Democrats and Republicans in the US Congress struck a deal on a long-delayed US$1.5 trillion spending bill that would provide US$13.6 billion to respond to Russia's invasion of Ukraine. It would provide US$6.5 billion for the Pentagon, including US$3 billion to bolster US troops in Europe and US$3.5 billion to replace weapons given to Ukraine. The State Department would receive US$4 billion including for refugee assistance, economic assistance to the region and foreign military financing.

US and European equity futures rose on Wednesday as traders took stock of risks from a surge in commodity prices following Russia's invasion of Ukraine. European contracts added 2 per cent, while S&P 500 and Nasdaq 100 futures made more modest gains. Crude climbed after the US moved to ban imports of Russian fossil fuels.

The UK will prohibit Russian barrels but spare natural gas and coal. West Texas Intermediate oil scaled US$126 a barrel. Russia's rouble dropped almost 8 per cent as currency trading resumed in Moscow, though stock trading remains suspended. A humanitarian corridor out of Ukraine's north-eastern city of Sumy will be in operation for 12 hours on Wednesday, Dmytro Zhyvytskyy, the region's governor, wrote on Telegram. The first column of 22 buses will take pregnant women, women with children, elderly and disabled persons, he said. BLOOMBERG

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