Situation on the ground

• President Vladimir Putin said the negotiations with Ukraine are being held on a daily basis and there has been certain positive shifts in direction.
• Belarus reported that the power supply to the Chernobyl nuclear power plant was restored.
• Earlier in the day, Russian Defence Minister Shoigu said Russia was planning to reinforce the Western borders and over 16k fighters from Syria could join the fight in Ukraine.
• Last night Russia accused Ukraine of having biological and chemical weapons. Ukrainian president Zelensky vehemently denied the allegations.
• President Joe Biden vetoed the idea of sending aircrafts to Poland in exchange of MiG planes to be sent to Ukraine due to the risk of escalating the conflict to a direct confrontation between NATO and Russia. Biden reiterated the US would not fight the war against Russia in Ukraine.

Market update

• Russia announced an export ban for more than 200 products in retaliation to sanctions imposed by the West. However, the list did not include sales of energy and raw materials.
• Western countries threatened to implement more sanctions, but Europe is still not blocking the purchase of oil and gas from Russia.
• The US is looking to lift Russia’s “most favoured nation” trade status from Russia, opening the door for import tariffs.
• Japan joined the US and EU in banning semiconductor exports to Russia and Belarus.
• Press sources reported the Central Bank and the Russian stock exchange MOEX are looking at alternatives to resume trading without allowing a collapse in prices. The stock exchange last opened on the 25 February.
• Reopening the market for local currency sovereign debt (OFZ’s) is also under consideration.