(Bloomberg) --

Russia will celebrate a patriotic national holiday Sunday with President Vladimir Putin expected to hand out awards to cultural figures and scientists.

Many business leaders are concerned about even being seen at this year’s St. Petersburg International Economic Forum, fearful it may make them targets for sanctions, three people familiar with the situation said. Putin won’t meet executives of foreign companies and international investors during the June 15-18 forum as he traditionally did in the past, according to his spokesman. 

European Commission President Ursula von der Leyen returned from an unscheduled visit to Kyiv on Saturday and said the executive arm of the European Union will do “the right thing” on Ukraine’s membership bid. The commission is expected to recommend a candidate status for the country on June 17.

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

Key Developments

  • ‘Party Like a Russian’ Turns Toxic at Putin’s Flagship Forum
  • Von der Leyen Says Ukraine’s EU Bid Advancing During Kyiv Visit
  • Biden Says Zelenskiy Brushed Off Warnings of Russia’s Invasion
  • US Gasoline Tops $5 a Gallon on Average in New Inflation Marker

(All times CET)

Von der Leyen Hopes EU Does ‘Right Thing’ for Ukraine (10:00 a.m.)

European Commission President Ursula von der Leyen said that the executive arm’s opinion on Ukraine’s candidate status to join the EU will reflect “carefully” a lot progress made by the country over the past decade, but also that “much still needs to be done.”

“I hope in 20 years when we are looking back we can say we did the right thing,” Von de Leyen told a group of journalists on her way back from Kyiv late on Saturday. “The challenge will be to come out of the council with a united position, which reflects the enormity of these historic decisions.”

Ex-McDonald’s Chain Gets New Name (9:15 a.m)

The company that took over McDonald’s former restaurants in Russia unveiled its new brand, Vkusno i Tochka, as the chain’s flagship restaurant in central Moscow prepares to open Sunday on a national holiday, Tass news agency reported. The new name translates to Delicious Full Stop.

The US fast-food chain last month sold its network of 850 restaurants in Russia to Alexander Govor, a McDonald’s franchisee, after closing them in March in response to the invasion.

Tycoons, Companies Wary to be Seen at Putin’s Flagship Forum (8 a.m.)

The annual St. Petersburg International Economic Forum had always been a hot ticket for Russian and foreign business tycoons eager to curry favor with the Kremlin by hosting glitzy parties or announcing major investments. 

At least two executives said they plan to leave early to avoid attending Putin’s speech at the event, which in past years was the highlight for the well-connected. Some have asked the organizers, Roscongress, not to identify them on their badges at the June 15-18 SPIEF forum, people familiar with the situation said.

Putin won’t meet executives of foreign companies and international investors during the forum as he traditionally did in the past, his spokesman said in an interview with TASS on Sunday.

Sri Lanka Open to More Russian Oil, AP Says (5 a.m.)

Sri Lanka may be forced to purchase more oil from Russia as the island struggles with a severe shortage of fuel amid an economic crisis, the Associated Press reported, citing Prime Minister Ranil Wickremesinghe.

Authorities are attempting to get oil and coal from suppliers in the Middle East, but “may have to go to Russia again,” he said. 

Ukraine Says Chemical Plant Ablaze (10:16 p.m.)

Russian shelling led to an “intense fire” at the Azot chemical plant at Sievierodonetsk, Ukrinform cited the head of the Luhansk regional military administration, Serhiy Haiday, as saying. Hours of heavy-weapons fire ignited leaking oil, he said.

Russian forces have been fighting to capture Sievierodonetsk, a city in the Luhansk region where Russia has made advances since focusing its attacks in eastern Ukraine.

EU Leaders Weighing Ukraine Trip, Bild Says (9:50 p.m.)

The leaders of Germany, France and Italy are considering a joint trip to Ukraine to signal concerted European support, according to Bild am Sonntag, which cited people close to French and Ukrainian governments it didn’t identify. Chancellor Olaf Scholz, President Emmanuel Macron and Prime Minister Mario Draghi could make the trip before Germany hosts a Group of Seven summit from June 26 to June 28, the German newspaper said. 

The possible trip by EU leaders comes after European Commission President von der Leyen made an unannounced visit on Saturday.

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