Crypto News: Brussels Edition: Ukraine's staunchest ally finds its limits

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

Poland has been one of Ukraine's most stalwart allies since Russia's invasion, but it's starting to hit the limits of public support for Kyiv as the war stretches on. The shift is jeopardizing a key economic lifeline for Ukraine — its grain exports. Poland issued a surprise import ban last month after weeks of protests by domestic farmers. We're told that Poland's ban was meant to ensure that solidarity with Kyiv doesn't alienate voters — a rare admission of unease about the government's popularity ahead of October elections. The EU has forged a deal to secure transit of grain for sale in other countries, but the episode is still putting extra pressure on Ukraine when it can least afford it.

— Kevin Whitelaw

Data Flood | This week's European Central Bank interest-rate decision is going down to the wire as officials await two key economic reports arriving right before they convene. This morning will see the release of the ECB's quarterly survey of bank lending — and then, one hour later, April's inflation reading.

Debt Break | The EU may grant additional time for member states to balance their budgets if they invest in ramping up ammunition production, a priority following Russia's invasion of Ukraine. To receive extra leeway, we're told member states' reforms and investment proposals will be assessed together and be detailed, front-loaded, time-bound and verifiable.

China Curbs | Stung by China's ties with Vladimir Putin and its repression at home, European nations are putting new limits on Beijing's exports and investments in a tack that's more in line with Washington's strategy. Countries like Germany and Italy are following the Netherlands and studying export and investment controls adopted by the US.

Gas Deal | The United Arab Emirates' state energy company signed a deal to supply TotalEnergies with liquefied natural gas, as Europe tries to secure more of the fuel following Russia's invasion of Ukraine. Gas prices have plummeted this year, but they're still above historical averages and many analysts predict they will rise before next winter.

French Fury | Anger over Emmanuel Macron's pension reform again spilled into the streets of Paris as more than half a million people marched across France to challenge a law raising the retirement age. In another blow for the French president, the country's credit rating was cut by Fitch, which cited high projected budget deficits.

Italian Cuts | Italy's right-wing government approved a labor-market reform yesterday that cuts taxes for workers while further scaling back an unemployment benefit brought in by a previous administration. The package slightly lowers levies on workers' income while shrinking the number of people benefiting from the "Citizens' Income."

Bold Bid | China's Midea Group is exploring a potential takeover of Electrolux, we're told, a bold move by the home appliance firm to add the higher-end luxury Swedish brand despite potential political opposition. Other Asian appliance makers like Samsung have also looked at Midea.

Ukraine Latest | Russia has suffered more than 100,000 casualties, including 20,000 killed, since December in the bloody standoff over Bakhmut, according to the US National Security Council. Meanwhile, the commander of Ukraine's ground forces said they have pushed Russian troops back from some positions in the eastern city. Read our latest rolling update on the war here.

The EU barred almost oil seaborne crude-oil imports from Russia, but the rules don't prevent countries like India from snapping up cheap Russian crude, turning it into fuels like diesel and shipping it back to Europe at a markup. The Asian country is on track to become Europe's largest supplier of refined fuels this month while simultaneously buying record amounts of Russian crude, we found.

All times CET

10 a.m. German Foreign Minister Annalena Baerbock hosts the Petersberg Climate Dialogue in Berlin
11 a.m. Euro-area April inflation data published
2 p.m. German Chancellor Olaf Scholz, European Commission President Ursula von der Leyen take part in Infineon groundbreaking ceremony for Dresden chip fab
EU foreign affairs chief Josep Borrell meets Serbia's president Aleksandar Vucic and Kosovo PM Albin Kurti
Von der Leyen meets with Czech President Petr Pavel and Prime Minister Petr Fiala
Budget Commissioner Johannes Hahn meets Hungarian Prime Minister Viktor Orban in Budapest
Energy Commissioner Kadri Simson attends the EU-Azerbaijan Energy Dialogue

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