Latest news on Russia and the war in Ukraine

A former U.S. Marine who was released from Russia in a prisoner swap last year has been injured while fighting in Ukraine, the State Department said Tuesday.

Trevor Reed was injured several weeks ago, according to a person familiar with the matter, who was not authorized to discuss the matter by name and spoke to The Associated Press on condition of anonymity. He has been taken to Germany for medical care, said State Department spokesman Vedant Patel.

“I want to be explicitly clear about something. Mr. Reed was not engaged in any activities on behalf of the US government,” Patel said in a statement. “And as I indicated, we have been incredibly clear warning American citizens, American nationals, not to travel to Ukraine, let alone participate in fighting. As you know, we are not in a place to provide assistance to evacuate private US citizens from Ukraine, including those Americans who may decide to travel to Ukraine to participate in fighting.”

Reed was released from Russian custody in a prisoner swap last year in exchange for a Russian pilot, Konstantin Taroshenko, imprisoned in the U.S. for a drug trafficking conspiracy.

The Messenger was first to report Reed’s injury.

— The Associated Press

Photographs from Scott Peterson for Getty Images show the aftermath and clean-up of grain storage centers attacked by Russian forces. The agricultural infrastructure is near the Ukrainian port city of Odesa.

Russia denies that its military personnel purposefully target Ukrainian grain silos and storage areas, which could be a violation of international humanitarian rights. The uptick in Russian attacks on Ukrainian port cities follows Moscow’s decision to leave the Black Sea Grain Initiative.

Yevhen Borysov, the former Ukrainian military commissar of Odesa, was arrested following allegations that he used his position to embezzle funds, Ukraine’s State Bureau of Investigation, or SBI, said.

“On Saturday, he was charged with illegal enrichment of hundreds of millions of hryvnias and deliberate evasion of duty. The former official tried to escape from the investigation, at the same time he used elements of the conspiracy; he changed phone numbers, cars, location, etcetera, Ukraine’s SBI wrote in a release.

Borysov denies the allegations and is currently detained in Kyiv.

— Amanda Macias

The following images from Andre Alves of Anadolu Agency via Getty Images show the destruction of Odesa’s historical center following a string of Russian attacks.

Russia plans to raise duties on imports from so-called “unfriendly” countries and ban the import of finished seafood products, Reuters reported.

Several nations imposed sanctions against Russia over its invasion of Ukraine, but Moscow found roundabout ways to bring in goods, including a grey imports scheme, according to Reuters.

“Cancelling imports from the European Union, United States and Norway will free up specific market niches for domestic producers to fill,” the government said in the Reuters report.

Customs duties on some wine imports will rise to 20% from 12.5% and Russia will impose a 50% import duty on plywood, according to Reuters.

Moscow will increase the import duty for purified glycerin, which is used in the food, personal care and pharmaceutical industries, to 35% from 5%, Reuters reported, citing measures drafted by Prime Minister Mikhail Mishustin.

— Melodie Warner

Russia’s budget deficit could hit 2.5% of GDP by the end of the year, the country’s finance minister said in an interview with news site Argumenty i Fakty, translated by Google.

A budget deficit is when a government’s spending exceeds its revenue.

Anton Siluanov said that oil and gas revenues had previously accounted for more than 40% of the budget, but had fallen to around a third, alluding to sliding energy revenues as a result of Russia’s war in Ukraine.

The comments are a rare admission from the Russian government that its finances may be feeling the financial impacts of its full-scale invasion.

Siluanov also argued that Russia had enough money to meet “planned costs” plus any additional costs that materialize through the rest of the year.

— Hannah Ward-Glenton

A Russian return to the Black Sea grain deal is currently impossible, as Moscow’s demands have not been met, Kremlin spokesperson Dmitry Peskov said in Google-translated comments carried by Russian state news agency Tass on Telegram.

Russia pulled out of the agreement — which allowed the safe passage of Ukraine grains to global markets during wartime — on July 17, citing ongoing restrictions on its own fertilizer and agricultural goods.

Western nations have widely criticized the decision, with the U.N. entreating Moscow to reconsider and Turkish President Recep Tayyip Erdoğan saying he would seek to bring his Russian counterpart Vladimir Putin back to the negotiation table.

— Ruxandra Iordache

Julius Baer will end all business with clients based in Russia, according to a report by Reuters based on a letter seen by the news agency.

The Swiss private bank will terminate all business by Dec. 31, but wealth management activities, including managing clients’ investments, credit agreements and credit card contracts, would be brought to a close by the end of September, Reuters wrote.

The move comes as wealth management organizations try to navigate the sea of sanctions stemming from Russia’s full-scale invasion of Ukraine.

Julius Baer declined to comment on the letter to CNBC.

— Hannah Ward-Glenton

Ukrainian forces attempted to attack two Russian naval patrol ships in the Black Sea Tuesday night, according to Russia’s Defense Ministry.

“Tonight, the Armed Forces of Ukraine made an unsuccessful attempt to attack the Black Sea Fleet’s Sergei Kotov patrol ship, which is carrying out tasks to control navigation in the southwestern part of the Black Sea (370 km southwest of Sevastopol),” the ministry said, as reported by state-owned news agency Tass and translated by Google Translate.

The ministry said there were no casualties.

CNBC was unable to independently verify the claims made by the Russian Defense Ministry.

— Hannah Ward-Glenton

A Russian military delegation led by Defense Minister Sergei Shoigu will visit North Korea for the 70th anniversary of “Victory Day” later this week, North Korean state media organization KCNA reported.

KCNA said it would be a “congratulatory” visit to “mark an important occasion in further developing the traditional DPRK-Russia friendly relations in keeping with the demand of the times.”

— Hannah Ward-Glenton

Russia launched an airstrike on Kyiv in the early hours of Tuesday, but all drones were detected and destroyed before any damage was caused, according to a Telegram post by the Kyiv City Military Administration, according to a Google translation.

The barrage was reportedly the sixth drone attack on the capital in July, and lasted a total of three hours.

There were no injuries or destruction to the city, Serhiy Popko, head of the KCMA, wrote.

The attack came after Russia accused Ukraine of carrying out a “terrorist” drone attack on Moscow Monday.

— Hannah Ward-Glenton

The International Atomic Energy Agency has confirmed the presence of anti-personnel mines at the Russia-occupied Zaporizhzhia nuclear plant in Ukraine, Director General Rafael Grossi said on Monday.

His team was notified this is a military decision implemented in an area controlled by military forces.

“Having such explosives on the site is inconsistent with the IAEA safety standards and nuclear security guidance and creates additional psychological pressure on plant staff,” Grossi said, “even if the IAEA’s initial assessment based on its own observations and the plant’s clarifications is that any detonation of these mines should not affect the site’s nuclear safety and security systems.”

The IAEA has repeatedly called to secure, demilitarize and ensure the safe operation of Zaporizhzhia to minimize the risk of nuclear explosion. The agency still does not have full access to the entire facility during its inspections.

Russia has occupied the plant since March 2022.

— Ruxandra Iordache

Russia may attack civilians and blame those attacks on Ukraine in a “false flag operation,” a White House spokesperson said in press conference Monday.

“This is something we have been warning about … And we continue to monitor that closely,” Press Secretary Karine Jean-Pierre told the briefing room.

There are also concerns that the Russian military may expand its targeting of Ukrainian grain facilities to include attacks against civilian ships in the Black Sea, she added, “even though they are simply trying to pick up grain and … products to feed people around the world.”

The White House urged Russia to return to the Black Sea Grain Initiative “immediately.”

Russia abandoned the U.N.-brokered deal that allowed the delivery of key Ukrainian grains to global markets on July 17.

— Hannah Ward-Glenton

U.N. Secretary-General Antonio Guterres has urged Russia to return to the U.N.-brokered Black Sea Grain Initiative that facilitated the export of Ukrainian agricultural goods to the global markets. Moscow pulled out of the agreement on July 17, objecting to Western restrictions on its own grain and grain supplies.

Western nations have condemned Moscow’s decision.

“With the termination of the Black Sea Initiative, the most vulnerable will pay the highest price,” Guterres told the U.N. food summit on Tuesday. “As food prices rise, the hopes of developing countries fall.

The Black Sea grain deal has benefited multiple recipients across the globe, including some food-insecure countries in the Middle East and Africa.

— Ruxandra Iordache

Ukrainian President Volodymyr Zelenskyy urged the European Union to ensure that an “unacceptable and clearly non-European” ban on Ukrainian exports be lifted in his nightly address Monday.

Ukraine is currently under temporary restrictions that prevent it from exporting agricultural products to five countries in Europe, under rules in place until Sept. 15.

“We believe that the European side will fulfil its obligations regarding this date, when the temporary restrictions will cease to apply,” Zelenskyy said.

In May, the EU allowed Bulgaria, Hungary, Poland, Romania and Slovakia to ban domestic sales of Ukrainian agricultural products, including wheat and sunflower seeds, after those countries expressed concern that the trading was damaging the livelihoods of local farmers.

The countries are poised to jointly ask for an extension of the ban, according to a report by Reuters.

“We are going to Warsaw to solidify the cooperation of the five countries and sign a declaration or agreement in which we will ask the EU to extend the ban beyond Sept. 15,” Polish Minister of Agriculture Istvan Nagy reportedly told the news agency on July 19.

In his address Monday, Zelenskyy also mentioned Ukraine’s hopes to join the European Union this year and said the country is doing “everything necessary” to make that happen.

— Hannah Ward-Glenton

Ukrainian President Volodymyr Zelenskyy said that his country’s forces are bracing for Russian drone attacks.

“Our focus is on safeguarding our people, cities, ports, and the Black Sea grain corridor. Robust responses to attacks by Russian terrorists are being prepared to maintain our security and protect our interests,” Zelenskyy wrote on his official Telegram channel.

“In all directions, our primary task is to inflict maximum damage on the occupiers, targeting their equipment, supplies, warehouses, and headquarters. Ensuring that Russia suffers losses every day is a just goal,” Zelenskyy added.

In recent days, Russian forces have carried out punishing drone strikes on port cities, like Odesa.

— Amanda Macias

Romanian President Klaus Iohannis slammed Russian attacks on port infrastructure close to his country’s border.

“I strongly condemn the recent Russian attacks against the Ukrainian civilian infrastructure on Danube, very close to Romania,” Iohannis wrote.

The NATO ally shares a border with Ukraine and a coastline on the Black Sea.

“This recent escalation poses serious risks to the security in the Black Sea. It also affects further Ukrainian grain transit and thus the global food security,” he added.

— Amanda Macias

Ukrainian President Volodymyr Zelenskyy said that the first meeting of the Ukraine-NATO Council will be held on Wednesday.

“I thank NATO Secretary General Jens Stoltenberg for promptly convening the first meeting of the Ukraine-NATO Council,” Zelenskyy said in a post on the Telegram platform. The group is expected to discuss Black Sea security following Russia’s exit from the landmark deal that brokered a maritime humanitarian corridor for agricultural exports.

Zelenskyy also said that Western allies are preparing additional security packages that include air defense systems, artillery as well as long-range weapons.

“The recipe for ending the war is obvious: everything depends on the unity and determination of all who value freedom, culture, and life,” he added.

— Amanda Macias