Russia-Ukraine live updates: Biden, E.U. announce plan to reduce Europe’s reliance on Russian fossil fuels

Global credit agency Moody’s intends to withdraw its credit ratings on Russian entities, it said in a statement Thursday.

Earlier this month, Moody’s announced the suspension of all its commercial operations in Russia, as did other ratings agencies such as Fitch Ratings and S&P Global — following the exodus of companies from the Russian market.

Credit ratings are essential for entities to borrow on the international market. Without a rating, companies or institutions would lose access to commercial loans.

Moody’s operates in more than 40 countries, with various ratings that can help investors and companies identify opportunities and manage their risks. These range from “Aaa,” for entities with the lowest credit risk, to “C,” for those typically in default and lacking creditworthiness.

Russia’s economy has been hit by bruising sanctions from the United States and its allies, and the country has been cut off from doing business in dollars, euros, and other reserve currencies. It narrowly avoided a default by making a $117 million interest payment in dollars to foreign bondholders last week. The payment averted what would have been Russia’s first foreign debt default since the Bolshevik Party shocked Western investors in 1918 by refusing to repay the borrowings of Czar Nicholas II.

However, a default could still be in the offing: Russia is required to make additional interest payments on other bonds before the end of this month.

Russia could default on sovereign debt, as sanctions cripple its ability to repay investors

Russia’s invasion of Ukraine last month precipitated an energy crisis that is reverberating around the world. Nowhere are the effects felt more intensely than in the European Union, which relies on Russia for roughly 40 percent of its gas and more than a quarter of its oil.

As European leaders scramble to find alternatives to imported Russian energy, the question is whether this moment will mark a turning point in the fight against global warming — or just a change in fossil fuel vendors.

Earlier this month, E.U. officials announced a plan to curb Russian gas imports by two-thirds by the end of the year. The bloc aims to end its dependence on Russian fossil fuels before the close of the decade by ramping up renewable energy initiatives that were already underway.

The U.S. Justice Department fired another legal salvo against Russia Thursday, announcing indictments against four Russian government employees for an alleged hacking campaign targeting the energy sector that lasted for years and targeted computers in 135 countries.

An indictment in U.S. District Court in Washington charges that Evgeny Viktorvich Gladkikh, who worked at a Russian Ministry of Defense research institute, conspired with others to damage critical infrastructure outside the U.S., causing emergency shutdowns at one foreign facility. Those charged in the indictment, under seal since June of last year, also allegedly tried to hack the computers of a U.S. firm that managed similar facilities in the United States.

A separate indictment filed in Kansas charges a hacking campaign launched by Russian’s federal security service, or FSB, and allegedly targeting computers at hundreds of energy-related entities around the world. That indictment was also filed under seal last summer.

Russian naval forces launched long-range cruise missiles on Tuesday evening from the waters off Sevastopol, a port city in Russia-held Crimea, according to expert analysis of video verified by The Washington Post.

Russia said the 3M-14 Kalibr cruise missile attack destroyed a major Ukrainian arsenal.

A video filmed by a witness from the Sevastopol waterfront on Tuesday shows at least four projectiles being fired from the water. Geolocation of the video by The Post shows the missiles appear to be traveling northwest, away from the city. As the narrator recites the date and location, the camera pans to show his surroundings.

BRUSSELS — The United States and its European allies reinforced their tough stand against Russia on Thursday, sharply warning Moscow against using chemical weapons in Ukraine and announcing new sanctions on Russians. The White House also announced the United States will accept 100,000 refugees fleeing Ukraine.

The statement on chemical weapons issued by the Group of Seven nations reflects growing concern among the world’s democracies that Russian President Vladimir Putin, facing setbacks on the battlefield and abroad, would resort to more extreme actions.

The Biden administration, along with the G-7 and the European Union, also unveiled Thursday a new set of sanctions targeting more than 400 individuals and entities, including the Duma, or legislature, and its members; additional members of the Russian power elite; and state-owned defense companies.

The European Council on Thursday released a statement accusing Russia of committing war crimes in Ukraine. “These war crimes must stop immediately. Those responsible, and their accomplices, will be held to account in accordance with international law,” said the European Union body, which comprises leaders of E.U. member states.

The declaration came amid a visit by President Biden to Brussels, during which he discussed with Western allies a response to Russian President Vladimir Putin’s aggression. The top E.U. foreign policy official this week accused Russia of war crimes in Ukraine while singling out the siege of Mariupol. Washington, Canberra and London have also used the term to describe Russian military conduct in Ukraine.

The council also called on Moscow to end its unprovoked attack and pledged to help Ukraine rebuild once hostilities cease.

Ukraine’s navy claimed Thursday it had destroyed a Russian landing ship at Russian-occupied Berdyansk, as videos showed fires and columns of smoke rising from a ship docked at the city’s port.

The port, which sits on the Sea of Azov southwest of besieged Mariupol, has been used by Russia to deliver military supplies in support of its month-long assault on Ukraine. With heavy casualties and equipment losses taking a toll on Russia’s advance, Moscow has described the port as a crucial entry point for reinforcements.

The damage to the ship was captured in social media videos verified by The Washington Post and satellite images. The flames were visible at far distances in clear skies and the smoke so dense that it appeared in images taken in space.

British Prime Minister Boris Johnson on Thursday told BBC Newsnight that Russian President Vladimir Putin plans to “Groznify” Ukrainian cities — a reference to the 1999 destruction of Grozny, the Chechen capital, by Russian forces.

Asked about the potential for a diplomatic solution to the war in Ukraine, Johnson said he’s “not optimistic” Putin wants peace. Instead, Johnson said, “I think he’s decided to double down and to try to Groznify the great cities of Ukraine in the way he’s always tried to do.”

Johnson was referring to the 1999 siege of Grozny, the capital of Chechnya, a breakaway republic that had previously fought off Russian attempts to invade. In October 1999, after Putin had become prime minister, Russian forces surrounded the capital and unleashed relentless bombing and shelling that decimated much of the city, killing thousands and allowing Russia to take control.

Backed by the Russian military, Syrian President Bashar al-Assad used the tactic to destroy and take control of Aleppo in 2016.

“I think that’s a tragic mistake,” Johnson said of the situation in Ukraine, “but that’s what [Putin] seems to be doing at the moment.”

Russia has used siege tactics on Ukrainian cities such as Mariupol. Russian forces have surrounded the city, cut off supplies and communications, and constantly shelled the area. Although thousands of residents have been able to escape, Ukrainian officials say thousands have died there.

Adam Taylor contributed to this report.