Ukraine Latest: Jail attack dispute; Grain ships may sail soon

Ukraine said it’s close to restarting grain shipments, although the timing will depend on go-ahead from the United Nations. President Volodymyr Zelenskiy traveled to the Odesa region to watch grain being loaded at the port of Chornomorsk.

Russian Foreign Sergei Lavrov said that he plans to listen to a US proposal for a prisoner swap during a phone call with his counterpart, Secretary of State Antony Blinken. China’s Xi Jinping spoke with his Polish counterpart a day after a lengthy call with US President Joe Biden. 

President Emmanuel Macron made a plea to Saudi Crown Prince Mohammed bin Salman to help Europe move away from Russian oil and gas during a dinner in Paris on Thursday. 

Key Developments

• Ukraine Sees Grain Export Starting Soon as Zelenskiy Visits Port
• Euro Zone Smashes Estimates Despite Germany Stalling: GDP Update
• Swiss Exports to Russia Surge in Race to Beat Trade Sanctions
• Biden, Xi Plan In-Person Meeting as Taiwan Tensions Intensify
• A New Bench of Traders Muscle In to Supply Russian Oil to India

On the Ground

Local authorities reported missile strikes in Kharkiv and overnight shelling of the southern port city of Mykolaiv. Russian shells landed near a public transport stop in Mykolaiv, killing at least five, regional governor Vitaliy Kim said on Telegram. The attack took place after Russians hit the city’s residential area Thursday evening, destroying several buildings. Ukrainian troops struck Russian munition depots in Ilovaysk and Brylivka, located in the seized areas of the country’s east and south respectively, Ukrayinska Pravda reported, citing the military staff’s Telegram channel.  

(All times CET)

Ukraine Sees Grain Vessels Leaving Soon (3 p.m.)

Ukraine said it’s close to restarting grain shipments, although the timing will depend on go-ahead from the United Nations, 

“Our side is fully ready,” President Volodymyr Zelenskiy said in the Odesa region, where he watched grain being loaded onto a Turkish ship at Chornomorsk. 

Tass reported that three vessels could leave the port as soon as Friday or Saturday, once a safe corridor was assured. It cited people in Turkey it didn’t identify. 

Polish, Chinese Presidents Speak About War (2:57 p.m.)

Chinese President Xi Jinping discussed the war in Ukraine during an hour-long call with Polish President Andrzej Duda on Friday, a day after Xi spoke with US President Joe Biden. 

Xi expressed his readiness to cooperate with Poland in “finding ways to end the conflict peacefully,” according to a statement from the Polish leader’s office that provided no details on potential measures. 

Both stressed the importance they attach to respect for the sovereignty and territorial integrity of all states, including Ukraine,” according to the Polish readout. 

Germany to Supply Armored Bridge Layers (1:15 p.m.)

German Defense Minister Christine Lambrecht approved 16 armored bridge layers for Ukraine. The first six will be supplied starting this fall and the remaining 10 in 2023, and the package includes training for Ukrainian personnel, the defense ministry said.

Berlin said Thursday it had agreed to supply Ukraine with mobile decontamination units worth more than 860,000 euros ($870,000). Additional equipment supplied in July includes three self-propelled howitzers, three multiple-launch rocket systems, and more than 100 vehicles of various types, according to the ministry.

German Foreign Minister Says Putin Must be Thwarted (1 p.m.)

Annalena Baerbock highlighted the importance of standing up to Russian President Vladimir Putin, saying it will help deter other potential aggressors.

“We are making sure that smaller nations can continue to sleep peacefully and not have to worry that a stronger neighbor will invade in breach of international law,” Baerbock said at a news conference in Athens with her Greek counterpart, while also expressing understanding for Greece’s concerns about neighboring Turkey. 

Greek Foreign Minister Nikolaos Dendias said Russia’s assault on Ukrainian sovereignty cannot be allowed to succeed as Greece could suffer a similar fate and become “the next victim.”

Russia and Ukraine Dispute Deadly Prison Strike (12:10 p.m.)

Ukraine and Russia traded accusations of deliberately attacking a facility where prisoners were being held in the occupied Donetsk region, with the Moscow’s military saying that Ukraine hit it with US-supplied weapons, and Kyiv calling it a Russian provocation. 

Russia’s Defense Ministry said that 40 people were killed and 75 wounded in a HIMARS rocket attack on a detention center for Ukrainian prisoners of war, among them fighters from the Azov battalion. Russian state TV carried footage of destroyed barracks, without showing any wounded or survivors.

The Ukrainian Army said it had not launched any strikes on the settlement concerned, adding that its high-precision weapons supplied by partner countries “deliver extremely accurate strikes” on military targets only. It said that Russian forces had carried out a “targeted artillery shelling” of a correctional facility where Ukrainian prisoners were also being held, with the aim of accusing Ukraine of war crimes and concealing the torture of prisoners and executions. 

Lavrov to Listen to Prisoner Swap Proposal (11 a.m.)

Lavrov said that the Russian and US sides are agreeing on a time for their call, during which he also wants to discuss the deal unlocking grain exports from Ukraine.

Blinken on Wednesday said he expected to talk to Lavrov about a potential Russia-US prisoner exchange as well as the Ukraine grain export deal. The Kremlin said no agreement had been reached yet on a detainee swap. 

G-7 Ambassadors Visit Odesa (10:20 a.m.)

Swiss Exports to Russia Surge (8:30 a.m.)

Swiss exports to Russia of turbojets, air pumps and other machinery surged in the past two months as manufacturers raced to fill any orders signed before sanctions over Moscow’s invasion of Ukraine render some of the sales illegal.

Russia Sanctions Pain Easing: BI (8:15 a.m.) 

Bloomberg Intelligence finds in a new report that projections of a $50 billion loss in the Russian banking sector may be too high. Key data-points used to track the impact of sanctions suggest that the response of Russian policy makers aimed at averting a banking crisis has been effective, with Russia’s control of gas flows to Europe the main lever to ease economic pain.

It’s Getting Easier for India to Buy Russian Oil (8 a.m.)

India is set to get more channels to buy cheap Russian oil, with a new wave of smaller, international traders muscling into its vast market by offering barrels shunned by rivals after the invasion of Ukraine.

State-run refiners such as Indian Oil Corp. are warming to the idea of buying from the lesser-known traders. Refinery officials said they’ve found it easier to work with them, rather than directly with Russian producers.

US Approves $8.4 Billion in Arms Sales to Germany (9:25 p.m.)

F-35 fighter planes built by Lockheed Martin Corp., the newest extended-range air-launched cruise missiles and dual laser-GPS-guided smart bombs are among $8.4 billion in American-built arms sought by Germany and approved by the US State Department.

Although the department’s announcement Thursday made no direct mention of the war in Ukraine, it said that “this proposed sale will support the foreign policy and national security of the United States by improving the security of a NATO ally that is an important force for political and economic stability in Europe.”