The US has blocked the transfer of fighter jets from Poland to Ukraine for fear of being dragged into a direct conflict with Russia.
John Kirby, a Pentagon spokesman, said the Polish proposal for Warsaw to transfer its fleet of MiG-29 fighter jets, which Ukrainian pilots are trained to fly, to Kyiv was not “tenable”.
Washington and Warsaw had been in talks about the military transfer to help the Ukraine government repel Russian air power for days. US secretary of state Antony Blinken said at the weekend the Biden administration was looking “actively” at a deal that would involve the US supplying American F-16 fighter jets to Poland to make up for the shortfall.
The Polish government said yesterday it would send the Soviet-era jets to the US air force base in Ramstein, Germany “immediately and free of charge”, adding it was prepared to pay for the F-16 replacements.
But the Pentagon last night ruled out the complex plan. “The prospect of fighter jets ‘at the disposal of the . . . US’ departing from a US Nato base in Germany, to fly into airspace that is contested with Russia over Ukraine, raises serious concerns for the entire Nato alliance,” Kirby said.
The Kremlin warned western countries against providing combat aircraft to Ukraine, describing the proposal as a “potentially dangerous scenario”.
Meanwhile, Russia is pushing ahead with its planned invasion of the Ukrainian capital Kyiv, with fighting ongoing in the north-west of the city. The Russian army has also continued to besiege the cities of Kharkiv, Chernihiv, Sumy and Mariupol which have all been subjected to heavy shelling.
Volodymyr Zelensky, Ukraine’s president, has repeatedly asked Nato members who own old Russian-made warplanes to give them to Ukraine. The Biden administration had ruled out a transfer of fighter jets, but an emotional plea by Zelensky to 300 members of Congress via a Zoom call at the weekend prompted a rethink by the White House, administration officials said.
More on Ukraine
Energy market: The Biden administration has told US shale producers they must do “whatever it takes” to increase supplies. Yesterday, the US and UK announced a ban on Russian oil imports and the EU unveiled a plan to radically reduce its dependency on Russian oil and gas. What does banning Russian oil mean for global energy markets? Our energy team explains.
Business news: McDonald’s led a fresh exodus of western businesses from Russia, saying it would temporarily close all of its 850 restaurants in the country. The exit of iconic American brands from Russia marks the end of an era.
Markets Briefing: Nickel prices hit another record high today. A bad bet has left a Chinese metals tycoon facing billions of dollars in potential losses.
Financial services: International lenders including Citigroup, ING and JPMorgan are reviewing their relationship with Dutch telecoms group Veon after the owner of its largest shareholder, Mikhail Fridman, was hit by sanctions.
Cyber security: A secret US mission across several years may explain why Ukrainian networks have held up so far against Russian cyber attacks.
China: US intelligence chiefs said the rapid response of the west to Russia’s invasion of Ukraine would probably influence Beijing’s calculus over its goal of securing control of Taiwan.
Opinion: The west should strengthen sanctions, though they may ruin Russia’s economy without changing its policy or regime, argues Martin Wolf. The war in Ukraine is prompting a rethink among investors of ESG and the defence sector, writes Peggy Hollinger.
Follow our live blog for the latest developments and the conflict explained in maps.
Four more stories in the news
1. Apple launches high-end PC The iPhone maker yesterday announced the launch of a new high-end desktop computer as it seeks to capitalise on the success of its M1 desktop processor. It also announced the revamp of its entry level iPhone SE phone with 5G.
In other technology news: Google has agreed to acquire cyber security company Mandiant for $5.4bn. The all-cash deal comes as the internet giant looks to boost its cloud computing business and catch up with Amazon and Microsoft.
2. Venezuela frees US oil executive Gustavo Cárdenas, an oil manager who worked for the US-based, Venezuelan-owned oil company Citgo Petroleum Corp was freed yesterday following talks between the Maduro government and the Biden administration at the weekend. Jorge Alberto Fernández, a Cuban-American man arrested just over a year ago and accused of spying, was also freed.
3. Qatar mediates between Iran and US in nuclear talks Qatar has stepped up its role in mediating between the US and Iran as western powers have been striving to convince wary Iranian leaders to sign a deal to revive the 2015 nuclear accord, according to people briefed on the talks.
4. Ex-Apollo executive explores bid for Chelsea FC Josh Harris, the US billionaire and former top executive at Apollo Global Management, is exploring a bid for Chelsea football club, according to people familiar with the matter.
The day ahead
IMF votes on aid package for Ukraine The proposed support package would meet the request made by Ukraine last week for $1.4bn under the IMF’s Rapid Financing Instrument.
Russia bond ruling The Credit Derivatives Determinations Committee, a group of banks and asset managers tasked with ruling when a company or country defaults on its debts, will determine whether Moscow’s move to allow some bonds to be paid in roubles rather than other currencies would contravene other rules underpinning credit default swaps.
Corporate earnings Campbell Soup Co is likely to post a slight dip in second-quarter revenue, as demand for its soups and sauces is expected to ease from the soaring levels seen at the height of the pandemic. Investors will be looking out for the company’s outlook and its commentary on margins and cost inflation.
Join us tomorrow for an hour of empowering talk about money with a panel of female experts convened by the FT and its new charity, the Financial Literacy and Inclusion Campaign (FT FLIC). We will share practical tips and answer your questions about the money issues that matter most to women. Register for free.
What else we’re reading
Will the Baltics become the ‘new West Berlin’? Estonia, Latvia and Lithuania could potentially be encircled by Russian expansion, but their leaders insist they have never been so secure. Richard Milne, the FT’s Nordic and Baltic bureau chief, reports from the region for today’s big read.
Dealers cannot sell EVs they do not have Russia’s attack on Ukraine has highlighted concerns about oil dependency and petrol prices as electric vehicle manufacturers start to make good on their promises to deliver greener cars. But there are complications ahead, warns Brooke Masters.
‘Brutal’ selling knocks Tiger Cub hedge funds Steep losses have proved “wicked punishment” in recent months for managers holding speculative US stocks, pummelling several hedge funds spawned by Julian Robertson’s investment firm Tiger Management. But the relative resilience of some companies to the “tech wreck” obscures the extent of wealth destruction.
Hong Kong is stuck in limbo as Covid cases soar Living in Hong Kong is like being stuck in a real-life version of Waiting for Godot, writes Ravi Mattu, the FT’s deputy Asia editor. Residents are faced with a difficult choice: continue waiting for authorities to act — or decide to leave.
My phone was controlling me, so I went on a digital diet For two weeks I tried to build a new healthier relationship with technology, writes technology correspondent Madhumita Murgia, with mixed results.
Property
From a solar-powered villa on the edge of Lake Como to a Nassau beach house with its own rainwater treatment system, here are five exclusive homes for sale with sustainable features.
Source: Economy - ft.com
