Crypto News: Ukraine’s new adversary

As we near the 100-day mark since Russia invaded Ukraine, the focus is turning to ... time.

As time goes on, the more Russia's presence across eastern Ukraine becomes an established fact, making its troops harder to dislodge. Moscow is already attempting to "Russify" some areas, shifting to Russian telephone codes and promising Russian passports, although it will struggle to win hearts and minds.

Key reading:

Russian Wins in Eastern Ukraine Spark Debate Over Course of War
EU Nations Yet to Break Stalemate Over Russian Oil Embargo
Zelenskiy Visits Troops, Inspects Bombed-Out Housing in Kharkiv
Follow our rolling Ukraine coverage here

The longer Europe argues over an oil embargo, let alone a gas ban, the more Ukraine risks slipping off the global radar. Weapons are still pouring in, though not at the rate Ukraine would like, and not some of the offensive weapons it seeks. It is notable how often Ukrainian officials now urge in their daily videos and social media posts: Don't start to forget us.

As time passes, calls will proliferate for Ukraine to negotiate with Russian President Vladimir Putin and potentially cede territory to secure peace (even if it's temporary). Already there are signs nations including France and Germany are encouraging President Volodymyr Zelenskiy to more proactively work toward a cease-fire. That's even as eastern Europe and the UK and, for now, the US, say the focus should be on helping Ukraine to fight on.

There are plenty who say giving Putin a deal now will only allow him space to regroup and come back for more. "Russia is not provoked by strength, but Russia is provoked by weakness," according to Latvian President Egils Levits.

Conversely, there are those who say Zelenskiy risks losing bargaining power as Russian troops slowly accumulate territory, even if more offensive weapons are sent in by Ukraine's allies.

Kyiv says the only option is to fight back, and certainly Ukraine's people are telling Zelenskiy he cannot give anything away. "Every day of delay, weakness, various disputes or proposals to 'appease' the aggressor at the expense of the victim is new killed Ukrainians," Zelenskiy said late last week.

For the Ukrainian leader in the weeks ahead, there will be no easy choices. — Rosalind Mathieson

Zelenskiy visits the Kharkiv region yesterday. Source: President's office

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Easing outbreak | China reported the fewest new Covid-19 cases in almost three months, with the rate of infections falling in Beijing and Shanghai, leading authorities to relax some of the strictest controls and move to stimulate a faltering economy. But the virus has evolved to become far more contagious and is likely to flair up again, said Ben Cowling, chair of epidemiology at The University of Hong Kong's School of Public Health.

China's plan to sign a trade and security deal with 10 Pacific Island countries suffered a setback as some expressed concern about specific elements in the proposal, Australia's ABC News reported.

Swift action | US lawmakers are setting a tight timetable to negotiate new gun laws, with Democrats signaling they would accept smaller steps to encourage some action to reduce gun violence. President Joe Biden told university graduates in his home state of Delaware "we must stand stronger" to make the country safer after two mass shootings in as many weeks.

Global food shortages are presenting governments with a stark choice: pay debts or feed their people. Fifteen emerging market nations now trade with debt at distressed levels, or a risk premium of more than 10 percentage points over US Treasuries. Four of those nations are in Africa, where one of the steepest run-ups in food prices is taking a toll.

Critical mission | The rusted rail tracks running between Reni in Ukraine's southwest corner to the port of Galati in Romania had been consigned to Soviet-era history long ago — about a quarter of the 12-mile line is missing. Yet like other relics of the old Eastern Bloc network, the route along the Danube River could eventually play a part in an increasingly large and complex operation to secure shipments vital for food security.

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Colombian upset | A 77-year-old populist who took his anti-corruption message to voters via social-media platforms including TikTok defied the polls to make it through to June's presidential runoff. Rodolfo Hernandez, a construction magnate whose other policies remain largely unclear, squeezed out the main conservative candidate to place second to Gustavo Petro, 62, a leftist former mayor of Bogota who wants to end Colombia's dependence on oil and coal.

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Failing climate | Climate-aid pledges by industrialized nations are worthless, according to the leader of Seychelles, an Indian Ocean archipelago threatened by rising sea levels. Promises made at the United Nations climate change conference in Glasgow in November have not been met and his expectations for this year's COP27 event are low, President Wavel Ramkalawan said in an interview.

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

North Korea removed lockdown measures in place for more than two weeks in its capital, news reports indicated, after announcing its policies have controlled the country's first Covid-19 outbreak.
Approval ratings for Indian Prime Minister Narendra Modi's government are at the highest since the start of the pandemic, with people surveyed saying it was better prepared to handle Covid-19 and had managed the economy effectively.
France said Iran must release two Greek-flagged oil tankers seized in the Persian Gulf last week, as tensions between Tehran and world powers mount and nuclear-pact talks stall.
Nigeria's main opposition party chose ex-Vice President Atiku Abubakar as its candidate for February's national election.
Former Defence Minister Peter Dutton was picked to lead Australia's center-right Liberal Party after its election defeat, foreshadowing a further shift to the right in the conservative group.
Israel has been talking to the US and Gulf Arab countries about normalizing diplomatic relations with Saudi Arabia but realizes any progress is likely to be slow, Foreign Minister Yair Lapid said.

Thanks to the 21 readers who answered the Friday quiz and congratulations to Elaine Milbank, who was the first to name Hungary as the nation whose government declared a state of emergency immediately after being sworn in last week.

And finally ... In the five years since Park Ji-hyun's 21st birthday, the South Korean activist has busted an online sex crime ring, published a memoir, and become a senior adviser to a leading presidential candidate. Now, Park has been named interim co-chair of the Democratic Party and become a lodestar for millions of South Korean women enraged by a rash of high-profile sexual harassment and violence against women — and the gender politics of newly elected president Yoon Suk Yeol.