Ukraine Latest: Zelenskiy Meets BlackRock Executives in Kyiv

(Bloomberg) -- Yevgeny Prigozhin, the founder of Russia’s Wagner mercenary group, renewed a threat to pull his forces from the battlefield near Bakhmut in eastern Ukraine because of an ammunition shortage. 

The target of Prigozhin’s ire, Russian Defense Minister Sergei Shoigu, later on Friday ordered commanders to ensure supplies of weapons and munitions for the campaign during a visit to the Southern military district.  

Ukraine’s President Volodymyr Zelenskiy met in Kyiv with executives of BlackRock Inc. to discuss creation of a fund to aid in his country’s recovery.

Key Developments

• Binance Faces US Probe of Possible Russian Sanctions Violations
• Russia Pipeline Data Offer Scant Evidence of Oil Output Cuts
• Russia’s Next Standoff With the West Is In the Oil-Rich Arctic
• Wheat Set for First Weekly Gain in Three on Ukraine Trade Worry
• Russia Says It Has Billions of Indian Rupees That It Can’t Use

(All times CET)

Binance Faces Probe of Possible Sanctions Violations (4 a.m.)

The Justice Department is investigating whether Binance Holdings Ltd. was used illegally to let Russians skirt US sanctions and move money through the world’s biggest cryptocurrency exchange, according to people familiar with the matter.

The inquiry by the Justice Department’s national security division is looking at whether Binance or company officials ran afoul of sanctions related to Russia’s invasion of Ukraine, according to five people familiar with the matter who asked not to be named discussing a confidential investigation. 

Zelenskiy Meets BlackRock Executives in Kyiv (9:29 p.m.)

Ukraine’s President Volodymyr Zelenskiy met in Kyiv with executives of BlackRock Inc. including Philipp Hildebrand, vice chairman and member of the asset management firm’s global executive committee.

BlackRock Financial Market Advisory will provide services for the fund, according to an emailed statement from Zelenskiy’s office. The fund will seek private and public capital for projects in Ukraine after active hostilities end.

“We can offer interesting projects for investments in energy, agriculture, logistics, infrastructure, IT and many other sectors,” Zelenskiy said. “‘We want global partners, who can provide us with large investments to come.”

Chechen Leader Says He’d Replace Wagner Group If It Goes (6:44 p.m.)

Chechen leader Ramzan Kadyrov said on Telegram that Chechen servicemen are ready to replace Wagner Group fighters in Bakhmut if Prigozhin delivers on his threat to withdraw his mercenary force.

Still, Kadyrov praised Prigozhin, calling him his “older brother.” Kadyrov urged Prigozhin and Russian military leaders to agree on arms supplies and not to argue in public.

UN Says No New Vessels Approved for Ukraine Grain Corridor (6:39 p.m.)

The Istanbul-based Joint Coordination Centre didn’t reach agreement on Friday to authorize new vessels to participate in the Black Sea Grain Initiative, Farhan Haq, a spokesperson for the United Nations secretary-general, said. 

Daily inspections work on previously authorized vessels continues, he said. Vessel traffic through the Ukraine crop-export corridor has been repeatedly disrupted in recent weeks. The current agreement expires on May 18.

Ukraine Lauds Approval of €1 Billion Tranche for Ammunition (6:01 p.m.)

Ukrainian Foreign Minister Dmytro Kuleba hailed the approval of a €1 billion ($1.1 billion) European tranche for the joint procurement of ammunition for his country.

Enterprises Targeted in Strikes, Governor Says (5:35 p.m.)

Industrial enterprises in the eastern Ukrainian cities of Slovyansk and Kramatorsk were targeted in missile strikes, though no casualties were reported, Donetsk regional Governor Pavlo Kyrylenko said on Facebook. 

Buildings were damaged by S-300 missiles, but all valuable equipment had already been evacuated to safer regions of Ukraine, he said.

Raiffeisen Aims to Spin Off Russian Unit by October (3:39 p.m.)

Raiffeisen Bank International AG is hoping it can complete a spin off of its Russian subsidiary by the end of the third quarter.

The Austrian lender announced in March it plans to sell or spin off its Russian subsidiary amid growing pressure from regulators and governments. A final decision hasn’t been made and either outcome could ultimately fail should the costs prove to be too high, Chief Executive Officer Johann Strobl said Friday.

Russia to Resettle Residents in Zaporizhzhia Towns Amid Fighting (3:24 p.m.)

Russian occupation authorities said they are “temporarily resettling” about 70,000 civilians from 18 towns and villages in the Zaporizhzhia region, including Enerhodar, which is home to a major nuclear power plant, amid rising fighting in the area, Tass said.

Evgeny Balitsky, the Russian-appointed governor, said that the order applies primarily to women, children and the elderly. He said they would be moved away from the front elsewhere in the region.

Fighting around the Zaporizhzhia nuclear plant in Enerhodar has raised fears for months of damage to the facility. The International Atomic Energy Agency has been negotiating to establish a security zone around it but so far without success.

NATO Steps Up Submarine Monitoring (2:37 p.m.)

The North Atlantic Treaty Organization is stepping up monitoring of submarines after the defense alliance warned that Moscow is mapping European Union and US critical underwater assets.

As part of an exercise, which started April 24 and ends Friday, 12 NATO nations teamed up their marine patrol aircraft, surface ships and friendly subs to search for a submarine with very little information.

The Dynamic Mongoose drill took place in the so-called Greenland-Iceland-UK gap, through which Russian vessels need to pass to access the Atlantic Ocean. 

Zelenskiy Meets With Bahrain Foreign Minister (1:21 p.m.)

During a meeting with Bahrain’s foreign minister, Ukrainian President Volodymyr Zelenskiy thanked the Persian Gulf nation for its respect for his country’s sovereignty and territorial integrity.

Zelenskiy presented Ukraine’s “peace formula” at the Kyiv event with Foreign Minister Abdullatif bin Rashid Alzayani and invited Bahrain to take part in a peace summit that’s being organized. 

The issue of returning Ukrainian children home, as well as the country’s recovery needs were also discussed, according to Zelenskiy’s office.

Wheat Prices Set for Weekly Gain on Ukraine Trade Worries (12:17 p.m.)

Wheat futures in Chicago headed for the first weekly gain since mid-April on concerns over the outlook for Ukraine’s crop trade.

Tensions in the region escalated this week after Russia claimed the US was behind a drone strike on the Kremlin that it blamed on Ukraine, but it provided no evidence. The rift comes during a crucial time for negotiations over the Black Sea crop-export deal. A meeting of deputy defense ministers has been postponed to next week from Friday, according to Turkish media reports.

Russia’s Big Rupee Surplus With India a Problem, Lavrov Says (11 a.m.)

Russia’s large trade surplus in rupees has become “a problem” because Moscow has billions of the Indian currency it can’t use, Foreign Minister Sergei Lavrov told reporters.

“We accumulated billions of rupees on accounts in Indian banks and we need to use this money. But for now, these rupees must be transferred in another currency and this is being discussed” with India, Lavrov said after talks with officials in Goa. 

Russian energy exports to India have surged since the Kremlin invasion of Ukraine, but restrictions on rupee convertibility make it hard for Moscow to spend the proceeds.

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