Crypto News: Brussels Edition: Oil deal

Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union.

EU leaders salvaged their united front on Russia with a political endorsement of a ban on Russian seaborne crude oil at the end of the first day of their summit. To bring a recalcitrant Hungary on board, the bloc agreed to address pipeline oil soon, but didn't set a specific timeline. Ambassadors will meet tomorrow to nail down the final details of the sixth sanctions package. Even as leaders hashed out the embargo deal, Russia continues to ship oil around the world by sea unabated for now. Flows have been diverted to Asia as European companies shun Russian exports. But it's having little impact on the overall level of crude shipments, which have stabilized at around 3.5 million barrels a day. The summit continues today with discussions on the bloc's defense plans and the food security crisis with grain stuck at Ukraine's ports.

— Natalia Drozdiak

Rising Prices | German inflation hit another all-time high, adding urgency to the ECB's exit from crisis-era stimulus after numbers from Spain also topped economists' estimates. The reports come just 10 days before a crucial ECB meeting where officials are set to confirm plans to raise interest rates in July for the first time in more than a decade.

Gas Cut-Off | The Netherlands and Denmark could be Russia's next victims of a natural gas cut-off as their energy firms refuse to cave in to demands to make payments in rubles. Dutch firm GasTerra said doing so would risk breaching EU sanctions, while Denmark's Orsted said it expects it will be able to secure alternative supplies in the European wholesale market.

Russian Runaround | Russia is planning a bond-payment mechanism to sidestep US sanctions and avoid a potential default as a grace period ticks down on its latest missed coupons. The proposal would allow foreign investors to open accounts in Russian banks in both rubles and hard currency, Finance Minister Anton Siluanov said in an interview with Vedomosti.

Italian Turnaround | Telecom Italia is seeking a valuation of around 20 billion euros for the landline network it plans to sell to a state lender and international funds, we've been told. The proceeds would allow the former phone monopoly to cut its multi-billion-dollar debt pile, accelerating its turnaround plan.

Brussels Strike | Public-sector and transport workers are due to strike today, likely causing widespread disruption of transportation networks. Check the Belgian rail website for any updates.

On the Rocks | Estonian Prime Minister Kaja Kallas threw her government's future into question amid a standoff with its junior coalition partner. In an interview with Bloomberg TV in Brussels, Kallas said her future as head of government is unclear. "Politics is so that one day you're in power and the next day, you're not. That's democracy," she said.

Climate Complication | A giant gas field in North Africa that Europe is banking on to make up for its shortfall in Russian imports risks complicating the bloc's climate goals. The Algerian facility has been leaking methane, a powerful greenhouse gas, for nearly four decades, according to scientists at Spain's Valencia Polytechnic University. The country provides about 8% of Europe's gas imports and is the continent's biggest supplier after Russia and Norway.

Women Leaders | Listed Italian companies still have too few women leading them compared with growing female representation on corporate boards elsewhere, according to data from market-regulator Consob. Companies with female CEOs accounted for just 2.4% of the total market value of Italian listed firms at the end of 2021.

Eurovision Trophy Sale | Kalush Orchestra, the Ukrainian rap-folk band that won the Eurovision competition, sold its crystal mic trophy for $900,000 to an Estonian crypto exchange to help raise funds for Ukraine's fight against Russia. The money will be spent on drone systems, according to the band.

German workers are seeing their incomes eroded by surging consumer prices. Negotiated real wages, which are adjusted for inflation, fell by 1.8% in the first quarter, data showed yesterday. While the 4% nominal increase from a year ago was the fastest since before the pandemic, inflation was higher — reaching 5.8% in the three months through March. Talks over wages aren't over yet, however, with workers in the iron and steel industry pushing for an 8.2% increase to offset the rising cost of living.

All times CET

9 a.m. EU leaders meet for second day of two-day summit in Brussels
6 p.m. Commission chief Ursula von der Leyen speaks at event of Germany's CDU party
Von der Leyen and Council President Charles Michel hold a joint press conference following the summit
EU Vice President Vera Jourova speaks at World Justice Forum via video link
EU Vice President Maros Sefcovic delivers keynote speech at Futures Week 2022

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