World diplomacy upended

Europe is inexorably reducing its dependence on Russian fossil fuels. [View in browser]( [Bloomberg]( Follow Us [Get the newsletter]( As Russia’s war on Ukraine nears the three-month mark, the repercussions for governments are snowballing worldwide. The most immediate fallout is in the energy sphere, with Europe inexorably reducing its dependence on Russian fossil fuels and scouring the globe for replacements. Key reading: - [US to Ease Sanctions on Venezuela, Enabling Cargoes to Europe]( - [What Turkey Wants From Sweden and Finland in NATO Expansion Spat]( - [Biden Team Eases Cuba Stance on Flights, Remittances, Visas]( - [Finland, Sweden at Turkey’s Whim After Submitting NATO Bids]( - Read our rolling coverage of Russia's war in Ukraine [here]( That’s helped send energy prices soaring, adding to a cost-of-living crisis engulfing the world. Just look at the UK, where a report today showed inflation hitting 9%, the fastest rate in 40 years. In the US, President Joe Biden’s administration is planning to ease sanctions on Venezuelan oil in an effort to allow more crude to be shipped to Europe. That’s politically contentious, with some in Washington arguing the move will only bolster President Nicolas Maduro. European governments face some uncomfortable decisions of their own as they seek to replace Russian gas. Egypt, with two terminals able to export the fuel in liquid forrm, is emerging as one potential option. That’s a boon to its strongman president, Abdel-Fattah El-Sisi, at a time when his country is suffering curtailed grain imports from Ukraine. Faced with Russia’s aggression, Sweden and Finland formally lodged their applications to join NATO today, overturning decades of neutrality and reshaping European defense. Turkey, however, is standing in the way. As [Selcan Hacaoglu]( reports, Ankara has an array of conditions on new candidates for membership of the military alliance. These include demands to recognize its concerns about Kurdish militias and to end bans on arms exports to Turkey. That’s just a sample of the most recent developments that can be traced to the war in Ukraine. Twelve weeks after President Vladimir Putin ordered Russian troops to invade, the geopolitical consequences are still only playing out. — [Alan Crawford]( NATO Secretary-General Jens Stoltenberg poses during a ceremony today to mark the membership applications of Sweden and Finland in Brussels. Photographer: Johanna Geron/AFP/Getty Images Click [hereÂ](to follow Bloomberg Politics on Facebook and share this newsletter with others too. They can sign up [here](. Global Headlines Taken prisoner | Russia said another 694 Ukrainian troops “surrendered” at Mariupol’s [besieged]( Azovstal steel plant in the past day, bringing the total close to 1,000 this week, in a fresh sign the months-long battle over the city is coming to an end. Ukraine hasn’t confirmed the Russian claims, though it has said it expects Azovstal fighters to be part of an eventual prisoner swap with Moscow. - The Biden administration is poised to fully [block]( Russian bond payments to US investors after a deadline expires next week, a move that could force Moscow into its first foreign default in a century. - The US is preparing a military aid package for India to deepen [security]( ties and reduce the country’s dependence on Russian weapons, sources said. Ukrainian servicemen sit in a bus after they were evacuated yesterday from the Azovstal steel plant. Photographer: Alexei Alexandrov/AP Covid flareups | Fresh outbreaks around key Chinese cities and the ongoing Covid-19 spread in Beijing are raising the [specter]( of more disruptive pandemic curbs. Videos [circulated]( on social media showed thousands of people in a village near the port city of Tianjin being marched through streets and onto buses to be quarantined. - Read this first-person [account]( about emerging from two months of lockdown in Shanghai. Tax trouble | US Treasury Secretary Janet Yellen’s success in securing the biggest global corporate-tax reform deal in decades last October faces a potential [roadblock](: approval by her country’s legislature. [Laura Davison]( explains that the agreement lacks the universal support of Democrats and faces staunch opposition among Republicans, who are expected to win at least one of the two congressional chambers in November’s midterm elections. Sri Lanka’s impending default on $12.6 billion of overseas bonds is [flashing]( warning signs to investors in other developing nations that surging inflation is set to take a painful toll. Best of Bloomberg Opinion - [Turkey, NATO and the Anna Karenina Principle: Andreas Kluth]( - [Can a Covid-Zero China Still Lift Up the World?: Anjani Trivedi]( - [World’s Food Baskets Need a Better Safety Net: David Fickling]( Chaotic primaries | A tumultuous Pennsylvania primary campaign resulted in the vote for the Republicans’ Senate pick being [too close]( to call and the Democratic spot likely won by a lieutenant governor who voted from hospital after suffering from a stroke. The race is a [test]( of former US President Donald Trump’s grip on the GOP and Democrats’ ability to hang on to a Senate majority in the midterms. Explainers you can use - [China Is Ready to Make Electricity Out of (Not So) Thin Air]( - [Pollution Kills 9 Million People a Year as Fixes Are Neglected]( - [The Long, Slow Death of Lehman Brothers Is Almost Complete]( Court showdown | Jair Bolsonaro has [escalated]( a crisis with Brazil’s top court ahead of October’s presidential election. He has filed a complaint against Justice Alexandre de Moraes for alleged abuse of power for extending a probe into the president’s alleged spread of fake news. It comes as Bolsonaro has repeated claims that the vote can be stolen, without presenting evidence. 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 - The race for Australia’s next prime minister is [tightening]( before Saturday’s election, with opinion surveys showing the center-right Liberal National coalition government making up ground against the opposition Labor Party. - Younger voters were crucial to electing Justin Trudeau as Canada’s prime minister in 2015, but nearly seven years later they’re [turning]( away from his Liberal Party — and early signs show the Conservatives may be picking up some of them. - Kim Jong Un may be preparing to fire an intercontinental ballistic [missile]( to coincide with Biden’s trip to the region, CNN reported, as the North Korean leader battles a Covid-19 outbreak confronting his regime. - The reported [arrest]( in the UK of a Conservative lawmaker over rape and sexual assault allegations spanning seven years is drawing renewed attention to the culture of harassment in Parliament. - Politicians in Nigeria are buying dollars to fund their campaigns for support in primary [elections]( that start over the weekend, driving the local currency to new lows in the unauthorized parallel market. And finally ... Just like in the era of Sputnik and Apollo involving the Soviet Union and the US more than half a century ago, world leaders are again racing to achieve dominance in outer space. But, as [Bruce Einhorn]( writes, this time the US and China aren’t [cooperating]( on rules of the road for extracting resources in space, and that’s particularly dangerous when the cosmos is getting more crowded. Chinese astronaut Zhai Zhigang exits the Shenzhou-13 spaceship on April 16 after spending six months in orbit. Photographer: Cai Yang/Xinhua News Agency/Getty Images 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