Ukraine Latest: Scholz Rejects Fear of Escalation With Russia

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(Bloomberg) — Chancellor Olaf Scholz dismissed concerns that Germany’s supply of battle tanks could make his nation an active party to the war with Russia. Western allies also have a “consensus” with Ukraine’s leader that weapons provided to Kyiv will not be used to attack Russian territory, he said. 

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The US is sending Ukraine a new $2.1 billion weapons package, the Pentagon said Friday, including a new ground-launched, bomb-tipped rocket. Canada sent the first of four Leopard 2 tanks it pledged to donate. Ukraine’s president spoke with UK Prime Minister Rishi Sunak.  

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Russia said 63 of its servicemen were returned from detention in Ukraine, including some from a “sensitive category” it didn’t specify. Ukraine said 116 of its soldiers were released in the swap, the first of 2023.  

(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)  

Key Developments

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On the Ground 

Two Russian S-300 missiles hit the center of Kharkiv in Ukraine’s northeast Sunday morning, mayor Ihor Terekhov said on Telegram. Emergency services are still at work; at least three injuries were reported. Ukraine’s Black Sea port city of Odesa and the surrounding area are still struggling with power outages, the energy group DTEK said. Over the past day, Ukrainian troops repelled assaults near 9 settlements in the Luhansk and Donetsk regions in the east, Ukraine’s General Staff said on Facebook. Civilian targets in the southern Kherson regions were shelled more than 60 times from multiple launch rocket systems, according to the General Staff. 

(All times CET)

Germany’s Scholz Says ‘Joint Approach’ in Ukraine to Prevent Escalation (6 a.m.) 

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Chancellor Olaf Scholz rejected concerns that war with Russia is bound to escalate after Germany’s move to donate Leopard battle tanks to Kyiv, DPA reported, citing an interview with the Bild on Sonntag tabloid to be published on Sunday. 

“We have carefully weighed every arms shipment [to Ukraine], coordinated them closely with our allies, first and foremost with the United States,” Scholz told Bild, according to DPA. “This joint approach prevents an escalation of the war.” 

Scholz said there was a “consensus” involving Ukrainian President Volodymyr Zelenskiy that weapons provided by Western allies would not be used to strike Russian territory.

Canada Sends First Leopard Tank to Ukraine (12:20 a.m.)

Canada sent its first Leopard 2 tank to Ukraine on Saturday, one of four pledged late last month, Defense Minister Anita Anand tweeted. The donation will include spare parts, ammunition and an unspecified number of Canadian soldiers to help train Ukrainians on the equipment.  

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Odesa Substation Damage Linked to Previous Russian Strikes (4:27 p.m.)

A “significant” accidental fire at an electrical substation in Odesa that’s caused widespread blackouts can be tied back to heavy damage from earlier Russian missile strikes, said Volodymyr Kudrytskyi, CEO of the grid operator Ukrenergo. 

Crucial infrastructure in the Black Sea port city is receiving electricity, including water supply and heating facilities, Kudrytskyi said. 

Zelenskiy, Sunak Talk as Ukrainian Crews Train on Challenger 2 (3:30 p.m.)

Volodymyr Zelenskiy spoke with UK Prime Minister Rishi Sunak about “further expanding the capability of the Ukrainian army” and about Kyiv’s demand for Russian athletes to be banned from the next Olympic Games, in Paris in 2024.  

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Sunak told Helenka he’s focused on ensuring UK military equipment reaches the front lines in Ukraine as quickly as possible, a readout from his office said.

The UK defense ministry earlier tweeted images it said showed Ukrainian soldiers training on the Challenger 2 main battle tanks. 

Ukraine, Russia in Year’s First Prisoner Swap (11 a.m.) 

Ukraine said 116 of its service members were returned in exchange for 63 Russian prisoners of war. The Russian defense ministry said earlier that its returning soldiers included some in an unspecified “sensitive” category. 

The Ukrainians released include soldiers who captured in Mariupol in the spring and others who served in Kherson, Bakhmut and other areas, said Andriy Yermak, chief of the presidential office.  

Ukraine also received the remains of two British volunteers — Christopher Perry and Andrew Bagshaw — and of Yevhen Kulyk, a Ukrainian who served in the French Foreign Legion before returning after Russia’s invasion.