Mittwoch, 2. Februar 2022

Ukraine Is Getting More Complicated for Putin

 

Ukraine Is Getting More Complicated for Putin

Introductory training for civilians by the Azov regiment of the National Guard of Ukraine at their base in Kyiv.
Introductory training for civilians by the Azov regiment of the National Guard of Ukraine at their base in Kyiv.Photographer: Christopher Occhicone/Bloomberg
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Just a few weeks ago, the warnings ringing out from Washington, London and Brussels made it seem a Russian invasion of Ukraine was imminent. Now it’s not so clear.

Chalk it up to the show of unity among Kyiv’s Western allies, the growing clarity of sanctions, or even the mild winter that has left Ukraine’s black-soiled steppes a muddy quagmire instead of the frozen hard-pack good for a tank assault. The risks and potential costs for Russian President Vladimir Putin have risen.

In his first public comments on the crisis since December, Putin seemed to take a softer tone last night, suggesting a diplomatic solution could be reached even as he lambasted the U.S. and its allies for trying to “contain” Russia.

Key reading:

Russia has repeatedly insisted it’s not planning an invasion, and that it’s entitled to move its forces on its own territory wherever it likes.

But the 130,000 troops assembled near the border, based on the current U.S. assessment — and Putin’s belief that Ukraine is part of Russia’s backyard — suggest anything is still possible.

The West fears Putin could send his infantry and tanks across the border, potentially forming a land bridge to Crimea — which he snatched in 2014 — from Russia and the eastern part of Ukraine already controlled by Kremlin-armed separatists.

They could also move west to Odessa and its seaports and leave the country landlocked, or potentially strike south from Belarus to knock out the government in Kyiv.

Yet as Marc Champion reports from southern Ukraine, they would face stiff resistance, and occupying the nation of more than 40 million people almost twice the size of Germany may be nigh impossible.

Putin could opt for other measures — ranging from cyberattacks to hybrid incursions — to continue to exploit Ukraine’s vulnerabilities, roil European financial and energy markets and keep the West guessing. He’s a specialist at frozen conflicts in other ex-Soviet republics.

What’s important is that the answer to the question on everyone’s mind — what does Putin want? — may be shifting as he reassesses the world’s response. — Michael Winfrey

Daily Life in Odessa as Ukraine-Russia Tensions Rise
Police officers and Ukrainian soldiers attend a rally in Odessa. 
Photographer: Christopher Occhicone/Bloomberg

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Global Headlines

New offer | The U.S. has told the Kremlin it’s willing to discuss giving Russia a way to verify there aren’t offensive cruise missiles at sensitive NATO missile-defense bases in Romania and Poland, sources say. The proposal seeks to allay Moscow’s concerns the launchers could be used against it, and would require reciprocal checks at some Russian bases housing ground-launched weapons.

  • Austria’s Raiffeisen Bank International became the first large European lender to say it’s setting aside money to deal with the potential fallout from the Ukraine-Russia crisis.
  • Stay up to date with our rolling coverage of the tensions.

Fighting words | U.S. Democratic Senator Joe Manchin said Joe Biden’s $2 trillion Build Back Better plan is “dead,” and any talks on reviving key parts of it must start from scratch. The lawmaker, who’s cited concerns that social spending in the bill would worsen soaring inflation, was more emphatic yesterday in his choice of words on the centerpiece of the president’s economic agenda.

Current Divide

All-electric vehicles are selling better in states President Biden won in 2020

Source: IHS Markit

Note: All-electric vehicles only. Numbers are EVs as a percentage of all new registrations for first 11 months of 2021

Biden wants electric vehicles to account for 50% of new car sales by 2030. To get there he may have to sell the cars to a skeptical demographic: Donald Trump voters.

Metaverse vision | Mark Zuckerberg is embarking on a soft campaign to convince Washington insiders that the so-called metaverse isn’t evil before lawmakers begin to debate his controversial company’s next act. As Anna Edgerton explains, the strategy marks a shift for the Facebook founder whose early motto was to “move fast and break things.”

Explainers you can use

Flagging challenge | Some European Union member nations are resisting a plan to coordinate $22.3 billion in investments the 27-nation bloc channels to Africa each year to counter China’s clout on the continent, sources say. As Jorge Valero explains, the EU’s executive arm wants a deal in place before this month’s summit with African leaders in Brussels.

  • Growing Republican criticism is complicating passage of a once-bipartisan bill intended to make the U.S economy more competitive, saying it’s too easy on China.

Best of Bloomberg Opinion

Failed coup | President Umaro Sissoco Embalo said the situation in Guinea-Bissau is under control after an uprising by soldiers sparked an eruption of automatic gunfire and panic yesterday in the capital. The unrest comes a week after the military overthrew the government of Burkina Faso, West Africa’s third coup in less than a year.

relates to Ukraine Is Getting More Complicated for Putin
The presidential palace in Guinea-Bissau.
Photographer: Alonso Soto/Bloomberg

Bloomberg TV and Radio air Balance of Power with David Westin weekdays from 12 to 1pm ET, with a second hour on Bloomberg Radio from 1 to 2pm ET. You can watch and listen on Bloomberg channels and online here or check out prior episodes and guest clips here.

News to Note

  • Prime Minister Boris Johnson’s latest effort to get the British public’s attention back onto his policy plans was drowned out today by more reports of lockdown parties at 10 Downing Street.
  • A former central bank economist was sworn in as Peru’s new finance minister, potentially calming the nerves of investors alarmed by recent political turmoil.
  • China condemned a Japanese parliament motion on Uyghur human rights, ratcheting up tensions between the neighbors days before Beijing hosts the Winter Olympics.
  • Tennis star Serena Williams and NBK Capital Partners joined a growing number of investors in African startups seeking to take advantage of a tech and innovative-finance boom on the continent.

And finally ... The opening ceremony of the Tokyo Olympics confused some foreign viewers because the teams didn't enter according to the English alphabetical order. Things will get much more complicated at the winter games in Beijing as the Chinese language doesn't have an alphabet. Isabella Steger explains here how the teams will march in.

Testing In Beijing As Capital Faces Twin Variant Threat Before Games
Photographer: Andrea Verdelli/Bloomberg

 

— With assistance by Muneeza Naqvi, Karl Maier, and Anthony Halpi

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