Ukraine and Russia: What you need to know right now

Reuters

Published Jun 01, 2022 04:57

Updated Jun 02, 2022 05:23

(Reuters) - Russian forces on Wednesday fought their way into the centre of the Ukrainian industrial city of Sievierodonetsk and appeared to be close to claiming a big prize in their offensive in the eastern Donbas region.

FIGHTING

* U.S. President Joe Biden announced a new $700 million weapons package for Ukraine that will include high mobility artillery rocket systems, which can accurately hit targets as far away as 80 km (50 miles).

* Luhansk regional governor Serhiy Gaidai said 70% of Sievierodonetsk was held by Russian forces, 10-15% was a "grey zone" and the rest was held by Ukraine.

* Russia criticised a U.S. decision to supply advanced rocket systems and munitions to Ukraine, warning of an increased risk of direct confrontation with Washington.

* Russia's nuclear forces are holding drills in the Ivanovo province, northeast of Moscow, the Interfax news agency cited the Russian defence ministry as saying.

TRADE

* European Union leaders have agreed an embargo on Russian crude oil imports that will take full effect by the end of the year, but Hungary and two other landlocked Central European states secured exemptions for pipeline imports.

* German companies Uniper and RWE have paid for Russian gas under a new scheme proposed by Moscow, in a bid to ensure continued supply of the fuel that is critical to Europe's top economy.

* Russia's Gazprom (MCX:GAZP) said it will turn off supplies to several "unfriendly" countries which have refused to accept Moscow's roubles-for-gas payment scheme.

* Ukraine's 2022 wheat harvest is likely to drop to 19.2 million tonnes from a record 33 million tonnes in 2021, Ukrainian grain traders' union UGA said.

ECONOMY

* Russia's economy will contract less than expected this year and inflation will be lower than previously thought, a Reuters poll showed.

* Poland stands to get an economic boost from agreements to help Ukraine, the prime minister said as he opened temporary housing funded and built by Warsaw in a town that was largely destroyed during the war with Russia.