Ukraine destroys Russian landing ship in Black Sea; NATO’s Stoltenberg says Kyiv aid ‘not charity’

U.S. Defense Secretary Lloyd Austin on Wednesday said Washington would continue to support Ukraine, amid uncertainty over whether the House of Representatives will pass a bill to provide Kyiv with $61 billion worth of aid.

“The United States continues to stand foursquare with Ukraine. And America will continue to support Ukraine’s principled fight against Putin’s imperial aggression,” Austin said.

Austin was speaking virtually at a meeting of the Ukraine Defense Contact Group, which was formed in April 2022 to coordinate support for Ukraine and discuss developments in the war.

Supporting Ukraine is “the right thing to do” and just standing by was “not an option” for “people of principle and governments of conscience,” Austin said.

It comes as tensions over funding for further aid for Ukraine have reached boiling point in the U.S., with various Republican lawmakers opposing a bill that would provide monetary support to Ukraine, Israel and Taiwan.

Austin also said supporting Ukraine was central to national security interests and that the outcome of the war would “define global security for decades.”

— Sophie Kiderlin

The Ukrainian military published a video it said showed its attack on a large Russian landing warship in the Black Sea, off the coast of occupied Crimea.

The shaky and grainy video appears to show an explosion on or next to a large ship occurring at night. CNBC was unable to verify the content of the footage.

The “Tsezar Kunikov” ship was destroyed Wednesday by special forces and sea attack drones, Kyiv’s main military intelligence agency said in a post on Telegram. The ship received “critical holes” on its left side and began to sink, it said.

Moscow has not publicly commented on the claim or video. It earlier said it had destroyed six drones in the Black Sea, according to Reuters. CNBC has contacted the Kremlin for comment.

The Black Sea is a key battleground for Ukraine, providing it with a vital trade route for agriculture and other products.

Despite lacking its own naval ships, Kyiv has targeted Russian warships on the Black Sea several times since Russia’s full-scale invasion in 2022, and is increasingly using unmanned drones.

— Jenni Reid

The Netherlands is joining a military coalition with allies including Britain that will supply Ukraine with advanced drone technology and bolster its offensive capabilities in the war against Russia, the Dutch defence minister said.

The pledge from the Netherlands comes in addition to F-16 fighter jets, artillery, ammunition and air defence systems provided by the Dutch to Kyiv.

For the Netherlands, there may be additional costs on top of 2 billion euros earmarked already for 2024, Dutch Defence Minister Kasja Ollongren told Reuters in an interview ahead of two days of NATO defence minister meetings in Brussels starting on Wednesday.

“We know of course that drones are very important in this war,” Ollongren said. “That’s why we are joining the drone coalition that Ukraine has started together with Latvia, together with other countries, to make sure that we do just that – increase production, use the latest technology and to provide exactly what Ukraine needs.”

Ukraine’s Defence Ministry announced Britain’s participation last month.

Drones have become a crucial part of both Ukraine and Russia’s wartime strategies for reconnaissance and striking targets, thanks in large part to their relatively low cost.

Both sides are now using thousands of small, inexpensive drones originally built for enthusiasts and racers to conduct battlefield-level surveillance and attacks, while also growing their fleets of larger, longer-distance unmanned craft which can fly much further and carry heavier cameras or more explosives.

Both Britain and the Netherlands had already been helping Ukraine build out its drone fleet.

“What is new is that we are now forming this coalition. So we’re connecting, let’s say, the things that we’re doing separately into one coalition that will be able to respond to the new demands of Ukraine, as they see the battle developing on the frontline. And I think that’s the strength of this coalition,” she said at her offices in The Hague.

— Reuters

U.K. Foreign Minister David Cameron on Wednesday urged the U.S. Congress to approve a national security aid bill that would provide $61 billion for Ukraine.

The bill cleared the Senate on Tuesday, but faces significant opposition in the Republican-led House of Representatives.

“Britain has announced its support package for the next year. The European Union has announced their package for the next year. And I urge members of Congress in the United States who will be looking at this today to vote for the package,” Cameron said in Sofia, Bulgaria, according to Reuters.

“This is absolutely crucial for American security. The whole world is going to be watching what happens in Congress,” he added.

Ukraine says securing further funding from its biggest donor, the U.S., is vital both in the war effort against Russia and for protecting civilians and its critical infrastructure. U.S. lawmakers who support the bill further say it is in the interests of U.S. national security.

Cameron is visiting Bulgaria and Poland ahead of the Munich Security Conference.

He will hold discussions on strengthening Ukraine, ensuring its victory against Moscow and securing Ukraine’s long-term future, while demonstrating support for NATO allies, according to a trip itinerary.

— Jenni Reid

Kremlin spokesperson Dmitry Peskov denied reports of a Russian proposal to the U.S. for a cease-fire in the war in Ukraine, Russian state-owned news outlet Tass said in a Google-translated update on Telegram.

Citing three anonymous Russian sources, Reuters had on Tuesday reported that Russian President Vladimir Putin made such an offer to freeze hostilities in Ukraine to the White House, which rejected the proposal.

CNBC could not independently confirm the report.

Moscow’s full-fledged invasion of Ukraine will mark its second-year anniversary later this month and is widely regarded as the deadliest European conflict since World War II. The international community has overwhelmingly called for an end to the hostilities, with Ukrainian leader Volodymyr Zelenskyy stating such a truce cannot include Russian control of Ukrainian territory.

— Ruxandra Iordache

Russian missile strikes on the bombarded town of Selydove in the eastern Ukrainian Donetsk region killed three people overnight, including a child, officials reported.

The strikes also hit a five-story building and a hospital wing, Donetsk Governor Vadym Filashkin said on the app Telegram.

— Jenni Reid

Ukrainian forces destroyed the Russian Navy’s Tsezar Kunikov large landing ship off the occupied peninsula of Crimea in the Black Sea on Wednesday, Kyiv’s military said.

A Ukrainian news outlet published several videos showing a column of smoke rising over the sea off the southern coast of Crimea, as well as helicopters flying over the sea.

“The Ukrainian Armed Forces, together with the Defence Ministry’s intelligence unit, destroyed the Tsezar Kunikov large landing ship. It was in Ukrainian territorial waters near Alupka at the time of the hit,” the military said on the Telegram messaging app.

There was no immediate comment from Russia, which said earlier that it had destroyed six drones in the Black Sea.

The Ukrainian military intelligence agency said the Russian warship had been attacked with naval drones.

Ukraine has used uncrewed navy drones packed with explosives to attack Russian warships to try to drive them out of the western parts of the Black Sea, making it possible to open a shipping corridor along a traditionally key export route.

In December, Ukrainian cruise missiles struck another large Russian landing warship in Crimea.

— Reuters

U.S. President Joe Biden on Tuesday urged the U.S. House of Representatives to quickly move ahead on a $95 billion aid package providing funds for foreign allies including Ukraine.

“If we do not stand against tyrants who seek to conquer or carve up their neighbors’ territory, the consequences for America’s national security will be significant,” Biden said in a statement.

“Our allies and adversaries alike will take note. It is time for the House to take action and send this bipartisan legislation to my desk immediately so that I can sign it into law,” he added.

Both the Senate and the House must approve the legislation before Biden can sign it into law.

— Karen Gilchrist

U.S. Senate Majority leader Chuck Schumer on Tuesday called on leaders of the House of Representatives to do the right thing and allow a vote on a $95 billion aid package providing funds for Ukraine, Israel and Taiwan.

Speaking hours after the Democratic-led Senate backed the bill in a pre-dawn vote, Schumer said he was confident the bill would pass the House with bipartisan support if there were a vote.

Both houses of Congress would have to approve the legislation before U.S. President Joe Biden can sign it into law.

— Karen Gilchrist

The U.S. Senate voted early Tuesday to approve a $95 billion aid package providing funds for foreign allies including Ukraine, but its future remains uncertain amid intense lawmaker opposition.

The package includes $61 billion for Ukraine, $14 billion for Israel and $4.83 billion to support partners in the Indo-Pacific, including Taiwan, along with facilities for humanitarian aid.

The bill passed by 70-29 in the Democrat-led chamber.

However, it must still pass the Republican-led House of Representatives, where it faces fierce opposition.

House Speaker Mike Johnson on Monday said that the latest iteration of the bill had failed to meet Republican demands for border security provisions.

Read more here.

— Jenni Reid