(Bloomberg) -- Russia resumed gas flows to Europe via the Nord Stream pipeline after a maintenance shutdown, providing some relief for a continent that was bracing for a complete halt of supplies. 

At the same time, the imminent collapse of Prime Minister Mario Draghi’s coalition in Italy stokes economic uncertainty across Europe, and raises the possibility of a breach in unity on Ukraine. Kyiv will probably keep borrowing costs unchanged today, while Turkey is still expecting to mediate in Russia-Ukraine grain talks this week. 

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Key Developments

  • Nord Stream Says Russian Gas Shipments Resumed on Thursday
  • Ukraine’s Rate Seen Steady With Hryvnia in Focus: Decision Guide
  • Agents Find ‘Alleged’ Faberge Egg on Russian Yacht Seized by US
  • Russians May Face First Hague War Crimes Case By End of Year
  • Paris Club to Let Ukraine Halt Debt Payments Until End of 2023

On the Ground

Russian forces were repelled in an attempted assault on the territory of Vuhlehirska power station in the Donetsk region, the General Staff of the Ukrainian army said. Russia continued to shell the Kharkiv region as well as areas near Bakhmut, Kramatorsk and other settlements in the Donetsk region. The southern city of Mykolaiv was heavily shelled again, Mayor Oleksandr Sienkevych said on Telegram overnight.

(All times CET)

Nord Stream Says Russian Gas Flows Resume (8:45 a.m.)

Russia started sending gas through its biggest pipeline to Europe after a 10-day maintenance period. Flows via the Nord Stream link connecting Russia to Germany restarted on Thursday, a spokesperson for the pipeline operator said by phone. Orders for gas shipments signal flows via the pipeline will return to 40% of capacity, the same level prior to the maintenance.

Ukraine Seen Keeping Rates Steady (8:30 a.m.)

Ukraine will probably keep borrowing costs unchanged after an emergency interest-rate hike last month, as tensions between the government and the central bank snarl efforts to shore up the war-ravaged economy. The central bank will leave the benchmark rate unchanged at 25% on Thursday, according to all analysts in a Bloomberg survey. 

US to Send Ukraine More Advanced Rocket Systems (7:42 p.m.)

The US will provide four more High Mobility Artillery Rocket Systems, or HIMARS, to Ukraine in a new security assistance package to be announced this week, bringing the total to 16, Defense Secretary Lloyd Austin told reporters at the Pentagon after a virtual meeting with representatives from 50 countries supporting Ukraine’s fight against Russia.

The US has trained 200 Ukrainians on using the HIMARS,  according to General Mark Milley, chairman of the Joint Chiefs of Staff. Austin and Milley praised the Ukrainians’ ability to get up to speed on the high-precision artillery systems in what they called “a grinding war of attrition” for both sides in the Donbas region. “Donbas is not lost yet,” Milley said.

 

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