Putin and Modi embrace

Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here.For Washington, isolating Vladimir [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. For Washington, isolating Vladimir Putin just keeps getting harder. As leaders of the North Atlantic Treaty Organization gather in the US capital in the hope of projecting a united front against Russia, Indian Prime Minister Narendra Modi [was in Moscow hugging Putin](. Modi’s trip follows Russia’s hosting of foreign ministers from the expanding BRICS grouping, and comes barely a week after Putin and Chinese President Xi Jinping met in Kazakhstan, hailing their countries’ relationship as in the “best period in history.” Russia’s embrace of China makes strategic sense given that both have emerged as Washington’s top two rivals, with trade booming since Moscow’s invasion of Ukraine in early 2022. India’s relationship with Russia is [arguably a more bitter pill]( for Washington to swallow. US diplomats have expended great effort in cultivating India as a bulwark against China. They have steered investment flows, encouraged technology sharing and boosted defense cooperation with New Delhi. WATCH: Putin greeted Modi at his suburban residence. ​​​​​Source: Russian Pool/Kremlin Modi’s visit on the same day that Russia [destroyed Ukraine’s main children’s hospital]( is all the more galling for the US and its allies, not least Kyiv: President Volodymyr Zelenskiy blasted the trip. Part of the reason for Washington’s inability to peel India away is historical — New Delhi’s close ties with Russia stretch back to the Cold War and India’s membership of the non-aligned movement. But it also has much to gain in the here and now: India is a major buyer of Russian oil and weapons, and sources say it’s seeking a long-term supply of uranium for a nuclear power plant. The US has made clear its concerns. State Department Spokesman Matthew Miller yesterday urged India to raise Ukraine’s territorial integrity with Russia. It’s unclear if Modi has done so. Even if he did, Washington seems powerless to prise what Miller called a “strategic partner” away from the Kremlin.— [Dan Strumpf]( The scene of the Russian strike on Okhmatdyt children’s hospital. Photographer: Roman Pilipey/AFP/Getty Images Global Must Reads Joe Biden and NATO’s 31 other leaders had hoped their summit this week would demonstrate their unity against Putin, send a warning to China and prove the alliance is solid on its 75th anniversary. Instead, the meeting will be [overshadowed by domestic turmoil](, from Biden’s bid to quell angst over his suitability for office to elections in France that weakened President Emmanuel Macron. With France in political deadlock after the inconclusive parliamentary vote and no precedent for the kind of coalition building needed to find a path to a government, Macron faces [a precarious balancing act]( in appointing a new prime minister with broad appeal. While the divisions are deep, [these are some of the main candidates]( for the post. And [here’s how the situation is impacting bond investors](. Source: Bloomberg Biden told Democratic Party lawmakers he’s determined to [remain in the election race]( and challenged dissenters to end talk of his removal from the ballot. Meanwhile, he’s receiving surprising support from a group of progressive members of Congress known as [the “Squad”]( who previously criticized him. The Philippines and China traded accusations of destroying the marine environment in the South China Sea, [opening a new front]( in their dispute over the vital waterway. Manila rebuffed Beijing’s claim that a deliberately grounded World War II-era warship that serves as a Philippine military outpost has gravely damaged the coral reef, charging China with causing “untold damage” and endangering the Filipino fishing industry. Hungarian Prime Minister Viktor Orban’s trips to Moscow and Beijing blindsided his European Union and NATO allies. They [woke up]( yesterday to see Orban had met with Xi in China, days after he held talks with Putin in Russia. EU leaders stressed that he wasn’t representing Brussels, though Russia and China pointed out that Hungary holds the bloc’s rotating presidency. The US and its allies say China’s Ministry of State Security is [directing cyberattacks]( against government and private-sector entities through a group of hackers known as Advanced Persistent Threat 40. Ivory Coast’s ruling party is mobilizing support for President Alassane Ouattara to run for a controversial fourth term in office, though he hasn’t said [whether he’ll seek reelection]( in October 2025. UK Prime Minister Keir Starmer’s ambition to boost wages is on a potential [collision course]( with business groups and the Bank of England as pay raises threaten to fuel inflation. Washington Dispatch Donald Trump returns to the campaign trail today with [a rally in Miami](, less than a week before he’s acclaimed at the Republican National Convention and as Biden battles to salvage his reelection effort. The days ahead seem full of promise for a candidate who less than six weeks ago was a defendant in a New York courtroom. Eager crowds await him, and the [Republican platform]( reflects his dominance of a party that considered him an outsider in 2015. With his reliable flair for the dramatic, Trump has held off on choosing a running mate, [saying last night]( on Fox News that he’d “love to do it during the convention.” Yet the former president’s return to the election spotlight will not be without risk. Biden’s supporters will be watching closely for a remark or mistake that they can turn against him, and perhaps shift the American political conversation away from the Democratic incumbent. One person to watch today: US Federal Reserve Chair Jerome Powell begins two days of congressional testimony with many lawmakers eager for the central bank to begin cutting interest rates. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. Chart of the Day At least a dozen Russian tycoons received around $11 billion in dividends for 2023 and in the first quarter of this year, as their companies [resumed or boosted payouts]( amid easing economic uncertainty over the Kremlin’s war on Ukraine. Many have close links to Putin and some have been subject to western sanctions over the conflict. And Finally The village of Mühlrose close to Germany’s eastern border with Poland has stood since the 13th century. Now its 200 people are packing up and leaving because of an industry they thought was being consigned to history. Mühlrose will be [wiped off the map]( to make way for a coal mine. Its fate highlights how Europe is struggling to ditch the dirty fuel after Russia’s war in Ukraine upended energy supplies. An outdoor church service in the last strip of trees near the lignite mine. 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