Putin’s new war front

Key decisions on energy in weapons are falling into place [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( Europe has struggled for weeks with key decisions over energy and weapons to sway the outcome of Russia’s invasion of Ukraine. Now they’re falling into place. The long-expected confrontation over Russian gas has begun after Gazprom said it’s halting flows to Poland and Bulgaria because they refused President Vladimir Putin’s demand to pay for supplies in rubles. Key reading: - [Russia to Cut Gas to Poland, Bulgaria Until Pay Demands Met]( - [Germany Signals Shift on Weapons to Ukraine With Tank Deliveries]( - [European Gas Jumps 24% as Russia Cuts Off Poland, Bulgaria]( - [U.S. Seeks More Authority to Seize Russian Assets to Aid Ukraine]( - Follow our [rolling coverage]( of Russia’s war against Ukraine By shutting off the gas to the two European Union and NATO members, Moscow is piling pressure on other EU states like Germany that are heavily dependent on Russian gas and that have also rejected Putin’s ultimatum. Four European gas buyers have already paid for supplies in the Russian currency. But the decision may backfire. European Commission President Ursula von der Leyen denounced the move as “blackmail” and said the EU’s coordination group is working on a response to what Bulgaria labeled a “political and economic weapon.” Germany, which has faced intense pressure from EU partners to stop paying Russia billions of euros a month for fuel and to step up contributions to arming Ukraine, may have also had enough. It’s planning to send 50 aircraft-fighting tanks to the Ukrainian military. Berlin’s announcement reversed weeks of resistance to sending Ukraine heavy weapons amid fears of pushing the conflict closer to a nuclear confrontation between Russia and the West. Despite warnings that Russian energy is crucial to keeping the EU’s largest economy humming, Economy Minister Robert Habeck said Germany is “very, very” close to independence from its oil and is working to accelerate uncoupling from gas supplies. Russian officials argue that international sanctions and the military aid supplied to Ukraine mean they’re increasingly in a proxy war with the West. Putin has now opened up a second front: energy. — [Michael Winfrey]( A Bundeswehr Gepard anti-aircraft tank. Photographer: Marcus Rott/Bundeswehr Sign up [here]( for the Special Daily Brief: Russia’s Invasion of Ukraine and click [here]( for this week’s most compelling political images. Global Headlines Tensions escalate | Officials in Moldova’s breakaway Transnistria region said shots were fired from Ukraine toward the pro-Russia enclave, the Interfax news service reported. That came a day after Moldovan President Maia Sandu said her government would [resist]( “attempts to drag Moldova into actions that may endanger peace.” Ukraine’s state railway chief said Russian missiles hit a bridge west of Odesa for a second straight day that provides access to Transnistria. - The U.S. [denounced]( as “the height of irresponsibility” warnings by Russian Foreign Minister Sergei Lavrov about the risk of nuclear war over Ukraine. - Russia [sowed]( land mines and booby traps as it withdrew from battle zones in Ukraine, making it harder to resettle people until the areas are cleared, the head of the HALO Trust mine-clearance humanitarian organization told Bloomberg TV. Defense boost | A ruling party research group will urge Japanese Prime Minister Fumio Kishida today to [increase]( military spending in the pacifist nation to as much as 2% of gross domestic product over the next five years, its leader, former Defense Minister Itsunori Onodera, said in an interview. As [Isabel Reynolds]( and [Takashi Hirokawa]( report, the proposal comes as several U.S. allies look to raise defense spending following Russia’s invasion. Brexit-related trade barriers have driven a 6% increase in U.K. food prices, adding to a [squeeze]( on consumer spending power. Inflation for products Britain tends to import from the EU, like fresh pork, tomatoes and jam, was more pronounced than things that come from other nations, according to the London School of Economics’ Centre for Economic Performance. Build build | With China’s economic growth in the doldrums, President Xi Jinping called for [all-out]( efforts to spur infrastructure spending. Speeding up construction to drive growth is a return to an old Chinese playbook, and stocks rallied today after his comments. But it may also prove tricky to achieve, given Xi’s Covid Zero approach. Best of Bloomberg Opinion - [How Putin Ended Modi’s Natural Gas Dream: Andy Mukherjee]( - [The Other Oil Crisis Will Leave the World Hungry: David Fickling]( - [Twitter and Tesla Collide in Beijing: Brooker and Culpan]( Cultural shift | The biggest [change]( expected to come from Elon Musk’s $44 billion [deal]( to buy Twitter is the restoration of accounts that were banned for harassing others, spreading misinformation, or inciting violence — including, perhaps, the one belonging to former President Donald Trump. This puts Musk at odds with Twitter’s left-leaning employees as well as its advertisers, who generally favor more content moderation, not less. Explainers you can use - [Twitter, Musk and Why Online Speech Gets Moderated]( - [Why Russia’s View of ‘Tactical’ Nukes Raises Alarms]( - [Myanmar’s Path From Junta Rule to Democracy and Back]( Twin peaks | Covid-19 cases are showing [tentative]( signs of easing in China’s two centers of infection, suggesting that the authorities are starting to bring the outbreaks under control. Shanghai hinted at an easing of lockdown measures with case numbers at the lowest in three weeks, while Beijing infections look to be stabilizing. People wait in line for Covid-19 testing in Beijing today. Photographer: Lintao Zhang/Getty Images AsiaPac Bloomberg TV and Radio air Balance of Power with [David Westin]( weekdays from 12 to 1 p.m. ET, with a second hour on Bloomberg Radio from 1 to 2 p.m. ET. You can watch and listen on Bloomberg channels and online [here]( or check out prior episodes and guest clips [here](. News to Note - U.S. House Republican Leader Kevin McCarthy will be asked to [reconsider]( his refusal to testify to the congressional committee investigating the Jan. 6 insurrection at the U.S. Capitol after leaked audio revealed he considered urging Trump to resign. - A special court in Myanmar [sentenced]( Aung San Suu Kyi to another five years in prison in the first of several corruption charges leveled against the deposed civilian leader, a source says. - Republicans in the U.S. state of Texas are [demanding]( that more than 140 financial firms disclose their policies on climate change — and whether they restrict or prohibit doing business with the fossil-fuel industry. - Venezuela’s National Assembly has [appointed]( the justices who’ll comprise a new slimmed down Supreme Court packed with government allies. And finally ... The Khartoum neighborhood of El-Deim has housed servants of the British Empire, sheltered Ethiopians fleeing famine and nurtured jazz musicians, but now it has a new role: a bastion for revolutionaries trying to [subvert]( a military takeover in Sudan. [Simon Marks]( and [Mohammed Alamin]( report on how several days a week, the streets of low-level, sand-blasted apartment blocks ring to the chants of impassioned youths calling for freedom. Protesters from a resistance group known as King of Clashes prepare for demonstrations against the government in Khartoum. Photogapher: Simon Marks/Bloomberg Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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