The EU’s foreign policy chief said he was hopeful Russia and Ukraine could clinch a deal this week to help export grain from the war-torn country and avert a global food crisis.

“I have a hope that this week it will be possible to reach an agreement to deblock Odesa and other Ukrainian ports,” Josep Borrell told reporters ahead of a meeting of EU foreign ministers in Brussels. The comments come a day before Turkish President Recep Tayyip Erdogan meets Vladimir Putin to discuss efforts to facilitate shipments of Ukrainian grain through the Black Sea. 

The efforts come as the war enters an intense new phase with Russian troops ordered to step up combat in all areas and target Ukraine’s long-range weapons. Ukraine has used advanced US-supplied HIMARS systems to strike Russian logistics centers, supply routes and ammunition depots behind the front lines in recent weeks. 

Key Developments

  • Zelenskiy Bids to Oust Ukraine’s Security Chief, Top Prosecutor
  • G-20 Finance Chiefs Blame Russia as Path to Soft Landing Narrows
  • Russia’s Guessing Game on Gas May Be World’s Energy Reckoning
  • Russia Orders Forces to Strike Ukraine’s Long-Range Weapons (1)
  • Russian Assets Barely Touched Across EU With $14 Billion Seized

On the Ground

Russia pounded areas around Bakhmut overnight, Ukraine’s General Staff said in a statement, stepping up attacks on a city which, together with Siversk, has emerged as the next major target of Moscow’s effort to capture the eastern region of Donetsk. Russian forces also shelled Nikopol on the Dnipro river, destroying about 10 residential buildings and damaging a hospital and other civilian infrastructure, Dnipro Governor Valentyn Reznichenko said. Further south on the Black Sea, the port of Mykolaiv faced a renewed round of heavy shelling, with about 10 explosions heard overnight, mayor Oleksandr Sienkevych said on Telegram. The attacks come after Russian Defense Minister Sergei Shoigu ordered troops on Saturday to step up combat.  

(All times CET)

Russia Eyes Cooperation Pact With Iran (10:37 a.m.)

Russia handed a draft comprehensive strategic cooperation treaty to Iran in mid-June and expects to sign it in the near future, Interfax quoted Russian presidential spokesman Dmitry Peskov as saying. 

It said some amendments were required taking into account Iranian opinion.

Russia Former State-TV Staffer Released (10:07 a.m.)

Russian police released a former state-television employee after several hours of detention, charging her under a strict new law against criticizing the Kremlin’s invasion of Ukraine.

Marina Ovsyannikova, who fled Russia earlier this year after being charged for holding up an anti-war sign on the main evening television news, has conducted several public protests since returning earlier this month for a child-custody hearing. On Friday, she stood across the Moscow River from the Kremlin, holding a homemade sign blaming President Vladimir Putin for the deaths of children killed in the war.

Police detained her Sunday for making anti-war statements outside the trial last week of another activist facing jail time for his protests. Ovsyannikova’s lawyer, Dmitry Zakhvatov, said she was charged with an administrative violation, punishable with a fine.

Zelenskiy Pledges Security Clean-Up After Purge (10:01 a.m.)

Kyiv pledged to clean up law-enforcement agencies after President Volodymyr Zelenskiy removed the country’s security chief and suspended its top prosecutor over allegations that dozens of staff were collaborating with Moscow. 

Ivan Bakanov, a childhood friend of Zelenskiy, was removed from his post as head of the State Security Service amid questions over how Russia managed to capture the southern region of Kherson. Iryna Venediktova, named prosecutor general in 2020, is also a Zelenskiy ally and lawmaker on his party list. 

Andriy Smyrnov, deputy chief of Zelenskiy’s staff, said in televised comments on Monday that Ukraine would find anyone working with or leaking information to Russia. The president said last Sunday that 651 people were already facing trial on charges of treason and collaborating with the enemy. 

Kremlin-Backed RT To Get EU Ruling on Sanctions (9:45 a.m.)

RT, the Kremlin-backed TV network formerly called Russia Today, will get a July 27 ruling from the European Union General Court on whether its inclusion on the EU’s sanctions list over the Ukraine invasion was justified.

RT’s France unit told the court that the EU’s decision was a curb on press freedom that had no justification in law. The ruling date was announced on the court website.

Russia Orders Forces to Strike Long-Range Arms (8:43 a.m.)

Russian Defense Minister Sergei Shoigu ordered part of his forces to focus on destroying Ukraine’s long-range missile and artillery systems during a visit to the Vostok army group in the occupied east of the country.  

The order comes after Ukraine received advanced US-supplied HIMARS long-range artillery systems in recent weeks capable of striking Russian targets as far as 80 kilometers (50 miles) away. That has allowed it to hit logistics centers, supply lines and ammunition dumps deep behind the front lines and mostly from beyond the range of Russian artillery.

Ukraine sees Russian forces struggling to find safe places to store munitions in occupied areas as they also increasingly lack transport to move them, Natalia Humeniuk, a spokeswoman for the Ukrainian military’s southern command said on television.

EU’s Borrell Hopeful on Ukraine Grain Deal (8:07 a.m.)

The EU’s foreign policy chief said he was hopeful Russia and Ukraine could clinch a deal this week to help export grain from the war-torn country and alleviate a growing global food crisis.

“I have a hope that this week it will be possible to reach an agreement to deblock Odesa and other Ukrainian ports,” Josep Borrell told reporters ahead of a meeting of EU foreign ministers in Brussels. “The lives of tens of thousands of people depend on this agreement. It’s not a diplomatic game.”

Turkish President Recep Tayyip Erdogan has sought to broker a deal that would facilitate shipments of Ukrainian grain through the Black Sea and meets Vladimir Putin on Tuesday. 

 

H&M to Exit Russia at $190 Million Cost (7:57 a.m.)

H&M will begin winding down its operations in Russia, having halted all sales in the country in March.

The Swedish fashion retailer expects to book costs of $190 million from the process, it said in a statement Monday. It plans to reopen physical stores in Russia for a limited period of time to sell remaining inventory.

“After careful consideration, we see it as impossible given the current situation to continue our business in Russia,” Chief Executive Officer Helena Helmersson, said.

Russian Gas Flows to Europe Still Limited (6:42 a.m.)

Russian natural gas supplies to Europe remain curbed, with flows sent via Ukraine below capacity and the Nord Stream pipeline shut for annual maintenance until July 21. 

Russian Gas Flows to Europe Remain Curbed Amid Nord Stream Works

Russia Ban Seen Tightening Coal Market (5:15 a.m.)

A looming ban on Russian coal imports by the European Union will add to supply pressure that’s sent prices of the fossil fuel hurtling to a record, according to a key Australian producer.

The European ban that takes effect next month “is expected to tighten further the supply of high quality thermal coal,” Sydney-based Whitehaven said in its statement. “We continue to view thermal coal prices as well supported for 2022 and into 2023.”

G-20 Finance Chiefs Blame Russia on Food (10:00 p.m.)

Finance chiefs from the world’s biggest economies lined up to blame Russia for the global inflation wave and sharply deteriorating growth outlook.

US Treasury Secretary Janet Yellen set the tone early at the gathering in Bali, Indonesia, saying the Putin regime had used food “as a weapon of war.” 

She said that its actions have prompted “a global crisis of food insecurity as prices spiked for food, fertilizer, and fuel.” Half of the run-up in US inflation was due to energy costs, for which Russia bore the blame, she said.