Oil prices are rising; battles could become more destructive as Russians bomb cities

Russian forces say they have entered the city of Kherson in southwestern Ukraine, which, if confirmed, would be a major victory for Moscow.

Russia’s Defense Ministry posted a statement on Facebook Wednesday morning saying its forces had taken Kherson’s center “under full control” and added that civilian infrastructure, livelihoods and public transport were operating on a daily basis. does not run out of food and essential goods. “

It says talks are under way between the Russian command and local authorities “to resolve issues related to maintaining the functioning of social infrastructure facilities, ensuring law and order and safety of the population.”

Ukrainian authorities have not yet confirmed Russia’s claims that it has taken control of Kherson, and the Kherson mayor said earlier this morning that the city “needs a miracle” after Russian troops reportedly surrounded the city.

“It’s hard to call it good this morning, but let’s try. We’re still Ukraine. We’re still stubborn. But there’s a lot of smoke,” said Igor Kolikhaev, mayor of Kherson, according to NBC News.

“Last night, when my team and I were at the town hall, the building was shelled. Everyone is alive. But again, please don’t leave the house. Do not provoke shooting with your actions and behavior. a very difficult situation, we don’t need to make it worse. “

“Today I will work to find a way to collect the dead, how to restore light, gas, water and heat where it is damaged. But I warn you: to perform these tasks today is to perform a miracle. We are all waiting for a miracle now. We need him, “he said.

According to Ukrainian authorities and confirmed by the Russian Ministry of Defense and the United Kingdom, the port city of Maripol has come under heavy shelling from Russia.

“We are fighting, we are not stopping to defend our homeland,” Mariupol Mayor Vadim Boychenko said live on Ukrainian television, Reuters reported.

– Holly Eliat

Oil prices rose during afternoon trading in Asia as markets were shaken by supply-side concerns amid the Russia-Ukraine war. At one point, both the futures of crude Brent and US crude oil rose nearly 8% higher.

Brent cut some losses last time, jumping 6.88% higher to $ 112.19 a barrel. It briefly reached $ 113.02 a barrel, a level not seen since December 2013, according to Refinitiv Eikon.

US crude futures also made big gains, last trading 6.98% higher at $ 110.63 a barrel. It rose to $ 111.50, the highest level since May 2011, according to Refinitiv Eikon.

“Eustace Huang.”

In its latest update on intelligence on the crisis in Ukraine, the UK Ministry of Defense said on Wednesday that Russian forces have seen slow progress in their military attack on Ukraine over the past 24 hours.

Posting an update on Twitter, the Defense Ministry said that “while Russian forces have reportedly moved south to the center of Kherson, total axis gains have been limited in the last 24 hours.”

Russia’s slow progress is probably due to “a combination of continuing logistical difficulties and strong Ukrainian resistance.”

The ministry noted that heavy Russian artillery and air strikes continue to hit populated areas, mainly in the cities of Kharkiv, Kyiv, Mariupol and Chernihiv.

– Holly Eliat

The next phase of the war in Ukraine is likely to cost a terrible price, as Russia turns to larger, more indiscriminate weapons to bomb cities and prepare for brutal urban battles.

If Russian troops manage to encircle Kyiv, they are likely to use artillery, missiles and similar weapons against the city, retired US Army Colonel Jack Jacobs told CNBC.

Such an approach is the approach that the Russians “did not want to do because they wanted to take the city intact,” Jacobs said. Nevertheless, they will use missiles, “artillery, missiles and other indirect fire to subdue the Ukrainians in the city. And then try to move.”

Indirect fire refers to weapons that do not require direct visibility of the target. Weapons such as artillery can be used in large numbers to destroy large areas.

But such a battle is the one that Ukrainians are preparing for.

“Ukrainians knew from the beginning that this could ultimately be reduced to their ability to destroy Russian forces in built-up areas,” said Jacobs, who survived the city battles as an officer in the Vietnam War.

NBC News reported earlier that Russian troops have already begun shelling Kharkiv, Ukraine’s second-largest city.

Western sanctions against Russia have not been strong enough, according to Natalie Jaresco, a former Ukrainian finance minister.

“The sanctions are not deep enough and not wide enough,” she told CNBC’s Squawk Box Asia on Wednesday.

She suggested that all Russian and Belarusian state-owned banks be sanctioned, not just elected.

“We have done a very good job with the Central Bank of Russia – so I think we see the reaction we are seeing – but I think we need to move beyond that to energy companies,” said Jaresco, who is now executive director of the Financial Supervision and Management Council. of Puerto Rico.

“We need to stop financing the war,” she said, citing millions of dollars worth of goods imported from Russia, Britain and Europe.

“This money directly or indirectly finances the bombs that fall on the heads of every Ukrainian today,” she said.

The sanctions are intended to persuade Russia’s people, including the elite, to make President Vladimir Putin stop the war, she added.

“He controls it, he can stop it,” she said.

– Abigail Ng

The Ukrainian government raised about $ 270 million from military bonds it issued on Tuesday.

“The proceeds from the bonds will be used to meet the needs of Ukraine’s armed forces and to ensure the continued provision of the country’s financial needs during the war,” the Ukrainian Finance Ministry tweeted.

The Ministry of Finance of Ukraine said that the bonds have a yield of 11% with a maturity of one year.

Ukraine has tried to raise funds in a number of ways, such as accepting funds through crypto wallets as its conflict with Russia deepens.

“Weigen Tan, Christine Wang.”

Biden gathered allies on Tuesday night and praised the joint economic measures imposed on the economy of Russian President Vladimir Putin.

“We are cutting off Russia’s largest banks from the international financial system,” Biden said. “Putin is now isolated from the world more than ever,” he added, referring to the retaliatory measures taken for the Kremlin’s war in Ukraine.

Biden said the United States and its allies were making “Putin’s $ 630 billion military fund useless” by preventing Russia’s central bank from defending the Russian ruble.

“We are stifling Russia’s access to technologies that will reduce its economic strength and weaken its military for years to come,” he added.

“Amanda Macias.”

Residents remain in a bomb shelter after recent shelling in separatist-controlled settlements in Nikolaevka (Nikolaevka) and Bugas in the Donetsk region (DNR) of Ukraine on March 1st.