Although there was no immediate sign that radiation had leaked, the attack raised fears that Russia’s
control of the facility could result in what Ukraine’s president called a catastrophe “worse than Chernobyl.”

Bloomberg News

KYIV
EnergiesNet.com 03 04 2022

Russian forces have occupied the site of Europe’s largest nuclear power plant, Ukraine said, after an overnight fire that the government in Kyiv accused Vladimir Putin’s military of causing by shelling the area. 

Ukraine’s nuclear regulator said Zaporizhzhia plant personnel were monitoring the state of power units to ensure safety protocols were maintained. The brief fire in a training complex at the plant was out, local emergency services said. 

Russian troops are concentrating on encircling the capital, Kyiv while continuing attempts to advance on the port city of Mariupol in the south, the general staff of the Ukrainian army said in a statement. It added that preparations continued for the landing of Russian assault troops near Odesa.

Both houses of Russia’s parliament are sitting on Friday, with a specially convened meeting of the Federation Council. 

Key Developments

All times CET:

Russia Passes Law Criminalizing Fake News on Military (8:46 a.m.) 

Russia’s State Duma unanimously passed a law making it a crime to distribute false information about the country’s armed forces, punishable by up to 15 years in prison.

The government has throttled access to social media and ordered local news outlets to only publish information from official sources, which describe the invasion of Ukraine as a special operation.

Two liberal broadcasters, Ekho Moskvy and TV Rain, announced they were going off air Thursday after the Russian Prosecutor General ordered that access to them be restricted because of their coverage of the attack.

Russian Stock Market Closed Until at least Wednesday (8:41 a.m.) 

The Russian stock market will remain closed to trading until at least next Wednesday, marking a record in the country’s modern history, in a continuing bid to stave off the impact of global sanctions for domestic investors. 

The Moscow Exchange said on Friday that trading across all markets will be shut March 5, 7 and 8.

Safe Havens Sought After Nuclear Plant Incident (8:20 a.m.) 

European and U.S. equity futures slipped while havens including sovereign bonds rose after Ukrainian officials said Russian troops shelled and then occupied a major nuclear power plant. European contracts slid about 2% and those for the U.S. shed around 0.5%, yet came off earlier lows as an initial spasm of worry eased. An Asian equity index declined to the lowest since 2020, weighed down by Japan and Hong Kong.

The rally in Treasuries lowered the U.S. 10-year yield to less than 1.80%. Oil was near $110 a barrel, trimming a jump of as much as 4.8%. Gold was steady, the dollar ticked up, and the euro slipped. The ruble extended its decline early Friday. 

What We Know About Ukraine’s Shelled Nuclear Plant: QuickTake 

Czech Republic Allows Volunteers to Fight in Ukraine (8:05 a.m.)

The Czech Republic, where signing up for foreign armies is forbidden by law, will allow its citizens to join Ukrainian forces, Prime Minister Petr Fiala said. 

President Milos Zeman, who until last week was a staunch supporter of Putin, will grant pardons to all Czechs fighting for Ukraine. About 300 people have contacted Zeman’s office with requests so far, the CTK newswire reported.

Fire at Nuclear Plant is Extinguished (5:46 a.m.)

The blaze in a training complex at Zaporizhzhia was contained to an area of about 2,000 square meters (20,000 square feet) and is now out, local emergency services said on Facebook. Three floors of a training complex at the site were involved in the fire. 

The U.S. did not detect any elevated radiation readings near the facility. U.S. President Joe Biden urged Russia to halt fighting near Zaporizhzhia after speaking with Ukrainian President Volodymyr Zelenskiy about the incident. 

“If there is an explosion, it is the end of Europe,” Zelenskiy said in a video message. He’s appealed to Putin to meet, saying it’s the only way to stop the war.

Missile Hit Plant, Energy Minister Says (5:44 a.m.)

A missile hit the nuclear plant’s unit no. 1 and the government was seeking more clarity on any damage, Ukraine Energy Minister Herman Halushchenko said in an interview on Bloomberg TV. He called for outside support to help close air space over the country’s reactors.

NATO has previously made clear it would not set up a no-fly zone over Ukraine as it would bring the alliance’s aircraft into direct confrontation with Russia.  

Access Curtailed in Russia of Social Media (5:01 a.m.)

Facebook, Twitter and several media websites appear to be fully or partially inaccessible in Russia on Friday, as authorities cracked down on what they call “disinformation” about the war in Ukraine.

Bloomberg journalists in Moscow weren’t able to access Facebook or Twitter. The Meduza news website, an independent Russian-language outlet based in Riga, Latvia, issued a statement saying it had been blocked in Russia. According to GlobalCheck, a service that studies Internet blocks in Russia and other former Soviet states, the BBC and Deutsche Welle websites are also currently unavailable to IP addresses in Russia.

Stocks Fall Amid Fire at Nuclear Plant (3:35 a.m.)

Stocks and equity futures fell and havens including sovereign bonds rose after a fire broke out at major nuclear power plant in Ukraine.

An initial spasm of worry lopped 3% off European equity futures but the panic eased a little as investors weighed the incident. European contracts pared the drop to about 2%, while those for the U.S. shed less than 1%.

Gains in gold and the dollar moderated, while the euro pared a decline. Oil was near $110 a barrel, trimming a jump of as much as 4.8%.

Biden Briefed on Nuclear Plant Danger (3:27 a.m.)

Biden received an update on the nuclear plant attack from Zelenskiy, the White House said in a readout of their call. Both leaders urged “Russia to cease its military activities in the area and allow firefighters and emergency responders to access the site,” the White House said. 

The Zaporizhzhia power plant in the city of Enerhodar is home to six Soviet-designed 950-megawatt reactors built between 1984 and 1995 with capacity of 5.7 gigawatts, enough to power more than 4 million homes. The site accounts for about 20% of the country’s electricity, according to its website.

Fire Didn’t Affect Essential Equipment, IAEA Says (3:20 a.m.)

Ukrainian Foreign Minister Dmytro Kuleba said a fire had broken out at the Zaporizhzhia plant and called on Russia’s military to immediately halt firing. Ukraine told the IAEA the fire “has not affected ‘essential’ equipment” and plant personnel were taking “mitigatory actions.” 

Plant’s Radiation Levels Unchanged (2:48 a.m.) 

The American Nuclear Society said in statement there were no signs that damage caused from the attack posed an additional threat to the public. “Both Russia and Ukraine should understand the importance of ensuring the safety of nuclear power plants and their staff,” the La Grange Park, Illinois non-profit group said. 

Nuclear Plant Under Attack, Reports Say (1:16 a.m.)

The Zaporizhzhia nuclear power plant has come under attack by Russian forces, the Associated Press cited Ukrainian officials as saying.

“We demand that they stop the heavy weapons fire,” Andriy Tuz, spokesperson for the plant in Enerhodar, said in a video posted on Telegram. “There is a real threat of nuclear danger in the biggest atomic energy station in Europe.” Telephone calls to the power plant didn’t connect, and the plant didn’t immediately respond to an email seeking comment on the situation.

bloomberg.com 03 04 2022