Diplomacy
U.S. Ambassador to Russia John Sullivan announced he was stepping down as of Sunday. Unfortunately, it was because his wife had aggressive cancer, and she died Monday.
New UK Prime Minister Liz Truss’ first call to a world leader was to Ukrainian President Volodymyr Zelenskyy.
Sanctions
G7 finance ministers agreed to a price cap on Russian oil. The Treasury Department is expected to publish a “high-level overview” sometime this month. That said, hurdles, such as securing the support of all 27 EU nations, remain. Russia warned it would retaliate over the move. A Treasury Department official said he hoped that India and China would join in.
The White House has opted not to designate Russia as a state sponsor of terrorism.
Investigators with Conflict Armament Research found low-tech components in Russian high-tech weapons, in a potential sign of the impact of sanctions on Russia’s war effort. U.S. intelligence suggests that Russia is reportedly seeking drones and ammunition from North Korea. Ukraine is sending out lists of tech equipment Russia is seeking to aid their war effort.
Consequences
An internal Russian government report paints a much bleaker picture of the impact of sanctions on Russia’s economy than public statements.
Gazprom announced that it would not reopen the Nord Stream I gas pipeline as planned due to a technical issue, which was questioned by Germany and the EU. Russia said it would not resume gas flows through the pipeline until sanctions are lifted. Gazprom will also shift its Chinese gas contracts from the euro to the ruble and yuan and 25% of its Turkish contracts to rubles.
Air Liquide sold off its Russian operations. Sberbank will sell off its Swiss subsidiary, which has been hit by sanctions.
Russia sanctioned 25 more Americans, including actors Ben Stiller and Sean Penn.
Ukraine Sitrep
Ukraine is reportedly poised to announce major military success in eastern Ukraine. A referendum in Kherson on joining Russia has been paused.
President Joe Biden is requesting $11.7 billion in additional funding for Ukraine aid.
The International Atomic Energy Agency released a report following its most recent visit to the Zaporizhzhia nuclear power plant.