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Russia faces possible defaults on about $150 billion in debt. Follow Us President Vladimir Putin has

Russia faces possible defaults on about $150 billion in debt. [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( President Vladimir Putin has three main achievements from his war in Ukraine so far. None were intended. First, he’s set the clock ticking for possible defaults on about $150 billion in debt as the Russian economy slumps and its currency collapses under the pressure of sanctions, including on its foreign-currency reserves. Key reading: - [Russian Air Travel Could Disappear as Planes Aren’t Serviced]( - [Putin’s State Media News Is Interrupted: ‘They’re Lying to You’]( - [Silicon Valley Tries to Disentangle Itself From Russian Money]( - [EU Set to Add Luxury Goods, Steel, Iron to Russia Sanctions]( That would be Russia’s worst economic crisis since the 1998 default that’s scarred into the memories of millions of its people. Unlike then, the Kremlin is now increasingly isolated, and the international community won’t likely be in the mood to help cushion the blow. Second, Putin has convinced Ukrainians they can never accept Russian dominance. While a pro-Moscow constituency existed in Ukraine before the war and largely agreed with his view that the two nations were one people, Russia’s destruction of mostly Russian-speaking cities such as Kharkiv and Mariupol has ended that debate. And lastly, with Ukraine still defending fiercely nearly three weeks into the war, Putin has also exposed the failings of Russia’s military modernization on which he lavished billions in the past decade. That’s raising big questions about whether corrupt officials — Russia’s perennial problem — siphoned off funds that undermined the rearmament. Despite Kremlin efforts to crush dissent, evidence of unease is emerging — an anti-war protest during Russia’s main TV news broadcast last night caused a sensation. Still, state-run pollsters claim Putin’s popularity increased since the war started. It’s also far from clear sanctions will push Russians to protest. Historically, they’ve been motivated more by ideas than material hardship, which they generally meet with stoicism. Putin showed he understood that, retaining public support with rhetoric about restoring Russia’s greatness following the Soviet Union’s collapse. But his Ukraine gamble has cast doubt on that central message of his rule. A journalist ran out during a live broadcast of the evening news on Russia’s state First Channel TV with a poster that read: “Stop the war. Don’t believe propaganda. They’re lying to you.” Source: Twitter/@sovietvisuals Sign up [here]( for the Special Daily Brief: Russia’s Invasion of Ukraine and share this newsletter with others too. They can sign up [here](. Global Headlines Wartime visit | The Polish prime minister and his Czech and Slovenian counterparts are traveling to meet with Ukrainian President Volodymyr Zelenskiy in Kyiv and announce a package of support measures. That’s happening as officials from Russia and Ukraine are due to resume talks today following a night of shelling in Kyiv and what Ukrainian officials said were Russian efforts to fortify existing military positions rather than push forward. Follow the latest with our [rolling coverage](. - Kyiv will impose a curfew from 8 p.m. today to 7 a.m. Thursday, Mayor Vitali Klitschko announced. Upbeat tone | The U.S. and China made [positive]( comments after their first high-level, in-person talks since Russia invaded Ukraine. National Security Adviser Jake Sullivan and China’s top diplomat, Yang Jiechi, met for about six hours in Rome yesterday, with the White House saying the discussions were “substantial” and Beijing calling them “constructive,” though neither side gave any details. - The U.S. said before the meeting that Moscow appealed to Beijing for military and economic assistance. We [report]( that the U.S. warned European allies Russia had asked for armed drones in late February. - China wants to [avoid]( being hit by international sanctions on Russia, Foreign Minister Wang Yi told his Spanish counterpart yesterday. Oil prices are [easing](, spurred by a resurgence of Covid-19 cases in China, the world’s biggest crude importer, and what may be progress in cease-fire talks between Ukraine and Russia. While there are still concerns the disruption to Russian oil flows is squeezing an already tight market, OPEC and others have been quick to point out there is no shortage. Best of Bloomberg Opinion - [Putin Is Finding War Is Hell, and Expensive: James Stavridis]( - [Positioning for Peace? It May Be Europe’s Moment: John Authers]( - [China Can Solve Ukraine War’s Food Crisis: David Fickling]( Pandemic risks | Europe’s rush to leave Covid-19 behind and unwind restrictions has [sparked]( a surge in cases, with businesses and schools disrupted as people call in sick. As [Tim Loh]( writes, the timing could hardly be worse as the continent grapples with a cost-of-living crisis that the war in Ukraine is intensifying by sending food and gas prices soaring. Explainers you can use - [Why China’s Payment System Can’t Easily Save Russian Banks]( - [How U.S. Is Moving Closer to Delisting Chinese Firms]( - [Why U.S. Colleges Are Rethinking Standardized Tests]( Strategic error | Yoon Suk-yeol’s victory in South Korea’s presidential election last week may animate a once-overlooked voting bloc that’s aligned against him: young women. The conservative president-elect edged out his progressive opponent but his effort to court “anti-feminist” voters may also have succeeded in mobilizing an increasingly vocal political [demographic]( against him ahead of 2024 parliamentary elections that he’ll need to implement his agenda. Bloomberg TV and Radio air Balance of Power with [David Westin]( weekdays from 12 to 1pm ET, with a second hour on Bloomberg Radio from 1 to 2pm ET. You can watch and listen on Bloomberg channels and online [here]( or check out prior episodes and guest clips [here](. News to Note - A high court in southern India ruled today that schools and universities can bar Muslim female students from wearing a [headscarf](, upholding a state-mandated restriction. - Washington D.C. police closed streets as a convoy of [truckers]( protesting the government’s response to Covid-19 and other grievances clogged a major interstate artery leading through the American capital. - Peru’s congress approved the start of [impeachment]( proceedings against President Pedro Castillo, the second such attempt to oust him in four months. - A spy network connected to Israeli intelligence was [arrested]( by Iran’s Islamic Revolutionary Guard Corps for attempting to sabotage the Fordow nuclear enrichment facility, the state-run Islamic Republic news agency reported yesterday. And finally ... In more peaceful times, more than 1 million people a day rode the trains of the Kyiv Metro, a 52-stop network decorated with marble friezes, mosaics, chandeliers and vaulted ceilings. But the underground stations were also designed to double as bomb [shelters](. And while trains are still running, the Metro now provides safety to thousands of refugees and residents of the capital fleeing Russian bombs. Families sheltering in the Dorohozhychi station of the Kyiv Metro on March 2. Photographer: Anastasia Vlasova/Getty Images Like Balance of Power? [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( [Ads Powered By Liveintent]( | [Ad Choices]( Bloomberg L.P. 731 Lexington, New York, NY, 10022

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