(Bloomberg) -- Russia has formally charged detained Wall Street Journal correspondent Evan Gershkovich with espionage, an accusation the White House and newspaper denied again on Saturday.

Ukraine’s credit score was cut on Friday by S&P Global Ratings after the government unveiled a plan to restructure its external debt before mid-2024. The war-torn nation was lowered to CCC from CCC+, with a negative outlook.  

The Pentagon is investigating a leak of classified war documents detailing US and NATO plans for building up the Ukrainian military ahead of a planned offensive against Russia, the New York Times reported. The documents were posted this week on social media channels, it said.

(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)

Key Developments 

  • Russia Formally Charges US Journalist With Spying, Tass Says 
  • Ukraine Aid From Chelsea Sale Delayed as Approval Process Drags
  • Ukraine Rating Downgraded by S&P on Debt Restructuring Plan 
  • Macron Urges Xi to Bring Putin ‘Back to Reason’ Over Ukraine
  • Zara Owner Gets Approval to Sell Russian Business to UAE’s Daher
  • Ukraine Has Decimated Its Oligarchs But Now Fears New Ones

(All times CET)

Wall Street Journal, White House Deny Spying Allegations Against Reporter (10:40 p.m.)

The Wall Street Journal and the White House on Saturday again denied accusations by Russia that detained correspondent Evan Gershkovich is a spy. Russian media reported on Saturday the US citizen has been formally charged with espionage. 

“We’ve seen media reports indicating Evan has been charged. As we’ve said from the beginning, these charges are categorically false and unjustified, and we continue to demand Evan’s immediate release,” the Journal said in a statement. The White House called the charges “baseless.”

Ukraine Resumes Electricity Exports to Europe (10 p.m.)

Ukraine will resume electricity exports to Europe as it has a surplus, the country’s Energy Ministry said.

“The most difficult winter is over,” Energy Minister German Galushchenko, who signed a document allowing the export, said Friday in a statement. “Next step is to open electricity export which will allow for attracting additional financing for needed restoration and repair of damaged energy infrastructure.”

Ukraine can export 400 megawatts under an agreement with ENTSO-E, the European grid operators network. Russia started to attack Ukraine’s energy infrastructure with missiles and drones in September, causing electricity cutoffs across the country. It prompted Ukraine to suspend electricity exports from October.

Russian News Agencies Say WSJ’s Gershkovich Has Been Charged (6 p.m.)

Russia has formally charged Wall Street Journal correspondent Evan Gershkovich with espionage, Russian state media reported, citing people familiar with the case. 

The reported charges by Russia’s Federal Security Service, come more than a week after the US citizen was detained during a reporting trip to Yekaterinburg in Russia’s Ural Mountains region. A spying conviction could carry a sentence in Russia of up to 20 years in prison.

Read more: Russia Formally Charges US Journalist With Spying, Tass Says 

Ukraine Suspends Wheat, Corn Exports to Poland (5:30 p.m.)

Ukraine will suspend exports of wheat, corn, sunflower and rapeseed to Poland until the new marketing year, the Ukrainian agriculture ministry said on Telegram, citing minister Mykola Solskyi. 

The decision followed a meeting between Solskyi and his Polish counterpart Robert Telus, amid protests by Polish farmers about the volume of Ukrainian grain coming into the country. “The situation is difficult for the Ukrainian farmers, but obviously for the Polish ones,” Solskyi said. 

Read more: A Grain Glut Is Straining the Goodwill That Ukraine Badly Needs

Grain will still be allowed to transit through Poland to other EU countries and beyond, though the transit procedure will be simplified to remove bottlenecks, he said.   

Poland, Baltics Countries Call for Sanctions on Russian Nuclear Industry: Report (4:30 p.m.)

The three Baltic states plus Poland are calling for measures against Russia’s nuclear energy industry in the next round of European sanctions, according to Poland’s RMF Radio, citing a document from late March. 

According to RMF’s report, the proposal called for individual sanctions against board members of Russia’s Rosatom and various other measures. The next round of sanctions will be the 11th by the European Union against Vladimir Putin’s regime since the invasion of Ukraine.

Getting approval from the entire EU like a long-shot, but Andriy Yermak, chief of staff to Ukraine’s president, praised the ideas as “exactly what is needed.” 

US Senate Leaders Condemn Detention of WSJ Journalist (4 p.m.) 

Senate majority leader Chuck Schumer and Republican leader Mitch McConnell issued a joint statement condemning the detention last month of Wall Street Journal reporter Evan Gershkovich and demanding his release by Russia.

The senators also criticized Russia for denying US embassy access to Gershkovich, and called for Russia to also release another US citizen, former Marine Paul Whelan.

“Let there be no mistake: journalism is not a crime. We demand the baseless, fabricated charges against Mr. Gershkovich be dropped and he be immediately released,” Schumer and McConnell said, reiterating their “condemnation of the Russian government’s continued attempts to intimidate, repress, and punish independent journalists and civil society voices.”  

France, China Back ‘Every Effort’ For Peace in Ukraine (3 p.m.)

France and China agreed to endorse “every effort” for the return of peace in Ukraine based on international law, the countries said in a joint statement following a three-day visit by French President Emmanuel Macron to the Asian nation. 

The two countries reiterated that they’re against attacks on peaceful nuclear plants and urged “all parts in the conflict” in Ukraine to abide by international humanitarian law.

China and France also plan to “deepen the dialogue” between China’s army and the Asia-Pacific command of France’s forces. 

Zelenskiy Discussed Leak Prevention With Top Commanders (2:42 p.m.)

Volodymyr Zelenskiy held a regular meeting with key commanders and top officials Friday, with “measures to prevent the leakage of information regarding the plans of the defense forces of Ukraine” among the items discussed, according to a statement on the presidential website. 

The talks followed a New York Times report that the Pentagon is investigating the leak of classified war documents detailing US and NATO plans for building up the Ukrainian military ahead of a counteroffensive. The plans, in a partly altered state, have appeared on Twitter and Telegram. 

Friday’s meeting also included a report from Valeriy Zaluzhnyi, commander-in-chief of Ukraine’s armed forces, about the general military situation as well as an assessment from military intelligence chief Kyrylo Budanov about Russia’s possible actions in near future. 

More Ukrainians Crossing Back From Poland Around Easter (12:30 p.m.)

Since start of April 210,000 people have crossed Polish border into Ukraine, boosting net outflows from Poland to 77,700 people for the month — the highest wave of return of refugees since the start of war, Polish border guard data show.

Ukrainians are said to be more willing to return to their homeland around Easter for an extended period after Poland eased the path to grant temporary stay permits from start of April. 

Russia Warns Grain Deal At Risk if ‘Obstacles’ Not Resolved (11:30 a.m.)

Russia may quit the safe-transit deal for Ukrainian grain shipments from the Black Sea if “obstacles” to Russian grain and fertilizer exports aren’t resolved during the present 60-day extension period, Russian Foreign Minister Sergei Lavrov said in Ankara after talks with his Turkish counterpart. 

“If there is no further progress in removing obstacles to export of Russian fertilizers and grains, we will consider whether this deal is necessary,” Lavrov said.

Despite Lavrov’s comment, Russia is forecast to be the world’s largest wheat exporter in the 2022-23 season and its export prices have become the de facto global benchmark. Moscow’s foreign ministry this week discussed with the UN the Ukraine grain deal and the TogliattiAzot ammonia pipeline, which was suspended after Russia’s invasion of its neighbor a year ago. 

Read more: Global Food Supply Risks Rise as Key Traders Leave Russia

China ‘Trying to Have It Both Ways,’ Blinken Says (9 a.m.)

Secretary of State Antony Blinken said some of the peace ideas China has proposed for the Ukraine conflict are “positive,” but that Beijing is “trying to have it both ways” by advancing a cease-fire proposal while also backing Vladimir Putin. 

“It wants to be seen as trying to advance peace and at the same time, it continues to support Russia in different ways, rhetorically making its case in international institutions, advancing Russian propaganda,” the top US diplomat said in an interview with the European news network Euronews. 

China’s focus “should be on convincing Russia to actually respect Ukraine’s sovereignty and to give back the territory that it seized by force,” Blinken said.  

Ukraine Aid From Chelsea FC Sale is Delayed (9 a.m.)

A foundation being set up to aid Ukraine with $2.9 billion in proceeds from Russian billionaire Roman Abramovich’s sale of Chelsea Football Club is nearly ready to go with a proposed chair lined up, but UK government approval is taking longer than expected.

“There are complexities and delays based around political approval both between the UK and the EU and within the UK,” said Mike Penrose, the former Unicef UK chief executive who is acting CEO for the new foundation. 

Abramovich sold the club to a consortium led by US investor Todd Boehly in May, after he was sanctioned by the UK and the EU over his alleged links to Vladimir Putin. Nearly a year on from the sale, the funds remain frozen in a UK bank account and none of them have reached Ukraine.  

Read more: Ukraine Aid From Chelsea Sale Delayed as Approval Process Drags

Russian Troops Regaining Momentum in Bakhmut, UK Says (8:30 a.m.)

Kremlin forces “have regained some momentum” in their effort to capture the eastern Ukrainian city of Bakhmut, the UK defense ministry said. 

The troops have “highly likely advanced into the town center” and now threaten Ukraine’s key supply route into town, the UK said in a Twitter thread. “Russian regular forces, likely including airborne troops, have probably reinforced the area, and Russia is again using artillery more effectively in the sector.”

Ukraine Rating Downgraded by S&P on Debt Restructuring Plan (8 a.m.)

Ukraine’s credit score was cut by S&P Global Ratings on Friday after the government unveiled a plan to restructure its external debt before mid-2024. 

The war-torn nation was lowered to CCC from CCC+, with a negative outlook. The ratings firm cited plans for an upcoming debt restructuring as part of Ukraine’s recent arrangement with the International Monetary Fund for a $15.6 billion bailout. 

The downgrade puts Ukraine on par with Ethiopia. In February, Moody’s Investors Service cut Ukraine’s credit rating to the second-lowest score of Ca, on par with Argentina, citing “long-lasting challenges” to its economy and public finances from the war with Russia. 

Read more: Ukraine Rating Downgraded by S&P on Debt Restructuring Plan 

Pentagon Probes Leak of Secret War Plans on Social Media (7 a.m.) 

The Pentagon is investigating a leak of classified war documents detailing US and NATO plans for building up the Ukrainian military ahead of a planned offensive against Russia, the New York Times reported.   

The documents, dated from about five weeks ago, were posted this week on social media channels, including Twitter and Telegram, the popular Russian messaging app. They focus on what arms Ukraine may need for its offensive but didn’t detail battle plans. 

Apparent modifications — for example, to overstate US estimates of Ukrainian war casualties — suggest an effort at disinformation by Russia, the newspaper reported, citing Biden administration officials.    

US Opposes Offering Ukraine a NATO Membership Roadmap, FT Reports (5:25 p.m.)

The US is opposing efforts by some European nations to offer Ukraine a clear “road map” to NATO membership at the alliance’s July summit in Lithuania, the Financial Times reported, citing four officials involved in the talks.  

Lines were drawn at a meeting of NATO foreign ministers in Brussels this week, the newspaper reported. Ukraine President Volodymyr Zelenskiy has warned that he’ll only attend the summit if given tangible steps toward membership in the military alliance, the FT said. 

The US is instead urging allies to stay focused on short-term military, financial and humanitarian aid to Ukraine as Russia’s invasion moves deeper into its second year, according to the report.       

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