Latest news from Russia and the war in Ukraine

Gas flows through the Nord Stream 1 from Russia to Germany fell to 20% of the pipeline’s capacity on Wednesday, as Gazprom had previously forewarned.

Gas grid operator Gascade said that 1.28 million cubic meters per hour, or about 20% of Nord Stream’s maximum capacity, has been transported via Nord Stream 1 in accordance with nominations since 8 a.m. local time, Reuters reported Wednesday morning.

The supply cut has come into force just two days after the pipeline’s majority owner Gazprom said it would cut supplies via the route — which was already operating at greatly reduced capacity, and had just reopened last week after 10 days of annual maintenance — saying it had further maintenance to do on a turbine.

The decline in flows is causing concern in Europe, and particularly Germany, which still relies heavily on Russian gas while it scrambles to reduce its dependence on such supplies due to the war in Ukraine.

EU countries agreed Tuesday to lower their respective gas use by 15% from August to March as fears set in over the winter outlook. The agreement foresees EU states making voluntary cuts to their own gas demands but could become compulsory if the energy rationing is not properly implemented.

— Holly Ellyatt

Russian private military company Wagner has likely succeeded in making tactical advances in the Donbas around the Vuhlehirska Power Plant and the nearby village of Novoluhanske, according to the U.K.’s Ministry of Defence, with some Ukrainian forces likely to have withdrawn from the area.

In its latest intelligence update, the U.K. noted that Russian Foreign Minister Sergei Lavrov is currently undertaking a tour of Egypt, Ethiopia, Uganda, and the Republic of the Congo in Africa, a continent where it has tried to spread its influence.

“Russia will highly likely seek to exploit the visits to blame the West for the international food crisis and win the support of African states which have otherwise remained neutral about Russia’s invasion of Ukraine,” the ministry said.

“Since 2014, Russia has made significant efforts to secure influence across Africa, with Wagner frequently deploying as one of its favoured tools of influence in the region.”

Russia probably primarily engages with Africa because it believes it will enhance the ‘Great Power’ identity Russia aspires to, the U.K. believed.

“Its secondary goals are probably to secure commodity concessions and to persuade African states to vote in line with Russia’s interests in international forums.”

— Holly Ellyatt

U.S. Treasury Secretary Janet Yellen discussed a proposed price cap on Russian oil with U.K. Chancellor of the Exchequer Nadhim Zahawi, according to readout from the Treasury.

Yellen has previously said a limit on Russian oil prices would “deny Putin revenue his war machine needs.”

The two also discussed U.S. and U.K. support for Ukraine as well as “opportunities to build on the historic sanctions imposed on Russia,” according to the Treasury readout.

— Natalie Tham

Ukraine’s armed forces have reportedly shelled the Antonovskyy Bridge that leads into Russian-occupied Kherson in southern Ukraine.

The armed forces posted a video on social messaging site Telegram last night purportedly showing several missiles striking the bridge which was occupied early on in the Russian invasion of Ukraine. The reports have not been able to be independently confirmed by CNBC.

The bridge is seen as a vital supply route for Russian forces in the city used to keep them stocked with ammunition and other heavy weaponry and equipment. It’s not the first time the bridge has come under attack as Ukraine attempts to recapture the city.

Last week Ukrainian shelling left the bridge partially damaged and some reports suggest it could have been destroyed last night but that has not been confirmed, and the state of the bridge is unknown.

— Holly Ellyatt

Ukrainian President Volodymyr Zelenskyy said Russia is using gas prices to terrorize Europe.

“Among other things the engineered increase in gas prices to above $2000 for 1,000 cubic meters on European markets, is enough of an experience to broaden sanctions against Russia,” Zelenskyy said during a nightly address.

“As it is clear to everyone that this is intended Russian price terror against Europeans. Using Gazprom, Moscow is doing all it can to make this coming winter as harsh as possible for the European countries. Terror must be answered, impose sanctions,” he added.

— Amanda Macias

U.S. Defense Secretary Lloyd Austin spoke with his Ukrainian counterpart and gave an update on the latest U.S. military aid package.

Austin reassured Ukrainian Minister of Defense Oleksii Reznikov that the United States is moving as quickly as possible to deliver equipment to Ukraine. Reznikov also updated Austin on the situation on the battlefield.

The latest security package will include additional High Mobility Artillery Rocket Systems, or HIMARS. The HIMARS, manufactured by defense giant Lockheed Martin, are designed to shoot a variety of missiles from a mobile 5-ton truck.

— Amanda Macias

Deputy Secretary of the Treasury Wally Adeyemo met with government counterparts in Paris this week to discuss additional sanctions imposed on Russia for its war in Ukraine.

Adeyemo also spoke with the executive director of the International Energy Agency about a price cap on Russian oil and other ways of restricting revenue to fund Russia’s military.

“In addition, Deputy Secretary Adeyemo met with financial services executives as well as economists and scholars to analyze the economic outlook in the United States, France, Europe, and globally, and the impact of Russia’s illegal war, particularly on global energy prices and food insecurity,” according to a readout from the Department of Treasury.

In the months since Russia invaded its ex-Soviet neighbor, Washington and its allies have imposed rounds of coordinated sanctions that vaulted Russia past Iran and North Korea as the world’s most-sanctioned country.

— Amanda Macias