Russia has launched an invasion of Ukraine after its forces fired missiles at several cities in Ukraine and landed troops on its coast, Ukrainian officials and media have reported.
Anton Gerashchenko, an adviser for the Interior Minister of Ukraine, said early on Thursday morning that Russia had launched missile strikes on military facilities near Kyiv, and begun artillery fire along the border.
The country's Interior Ministry said the missiles were targeting Kyiv.
CNN reporters and witnesses in cities across Ukraine reported hearing explosions in the early hours of Thursday.
Energy prices were sharply higher in early trading, with Brent crude up over $5 to $102, breaking three figures for the first time since 2014.
Video footage in international media outlets showed Russian tanks piercing into Ukraine from the country’s northern border with Belarus and parachutists about to land in the city of Kharkiv, in eastern Ukraine.
Initial reports also had Russian troops landing in the port city of Odessa and Mariupol.
A ship manager with a vessel at Odessa port, however, told TradeWinds that his ship’s crew saw “no military activity” taking place at the terminal.
Another ship manager with a vessel at Mariupol port described the situation there as normal. Even though the terminal and the entire Sea of Azov, in which it lies, are officially closed to shipping, no military action can be seen at the port and loading and discharge operations are carried out as normal.
However, explosions have been heard nearby and ships' loading and discharging seems to have come to a stop.
Russia has closed to shipping the Sea of Azov, a nearly landlocked sea between the Russian-controlled Crimea, Ukraine and Russia. There are no major oil terminals in the area but the Sea of Azov controls entry to major Russian city of Rostov-on-Don.
US President Joe Biden, reacting to an invasion the US had been predicting for weeks, said his prayers were with the people of Ukraine “as they suffer an unprovoked and unjustified attack”, while promising tough sanctions in response.
Reports of the attacks came an hour or so after Ukrainian aviation officials closed the country's airspace to civilian aircraft, while Russian airspace near to the Ukrainian border was also shut.
All eyes on sanctions
Russia’s invasion is expected to lead soon to a second wave of international sanctions after a first one unveiled on Wednesday that target politicians baking Putin’s decisions and some banks.
The US sanctioned Russian lenders VEB and Promsvyazbank. TradeWinds is told that the move has unleashed a frantic search amid shipping companies to detect eventual exposure to those lenders.
“You could get into problems even if you paid a single crew member through one of those banks,” one manager said.
Moscow exchange shuts briefly
Trading on the Moscow Stock Exchange was halted on Thursday morning because the rouble and share prices fell below the exchange’s pre-determined limitations.
“Trading has been halted on all markets and the resumption will be announced later,” the Exchange said.
The bourse later said trading would resume at 1000 hours local time (0700 GMT).
On Wednesday, the rouble had fallen further against the dollar, reaching its lowest level since the outbreak of the pandemic in March 2020.
According to options pricing, the currency is expected to fall to a “historic low” against the dollar in the next two months.
Moscow-listed state shipowner Sovcomflot (SCF Group) was trading more than 12% down at RUB 51.29 on Thursday.
US condemnation
On Thursday, US President Joe Biden condemned what he called an “unprovoked and unjustified attack by Russian military forces” in a statement released following reports of the explosions.
“President Putin has chosen a premeditated war that will bring a catastrophic loss of life and human suffering,” Biden said.
“Russia alone is responsible for the death and destruction this attack will bring, and the United States and its Allies and partners will respond in a united and decisive way,” said Biden, who will announce further consequences to be imposed on Russia by the US and its allies after he meets with G7 leaders on Thursday.
At an emergency UN Security Council meeting on Wednesday night United Nations Secretary-General Antonio Guterres told Putin to stop “attacking Ukraine”.
Guterres urged Putin to return his troops to Russia and stop “what could be the worst war since the beginning of the century.”
In a tweet, European Commission president Ursula von der Leyen vowed to hold the Kremlin “accountable”.
As the explosions were being heard across Ukraine, Putin himself announced a military operation in the Donbas region of eastern Ukraine in the address, broadcast on Russian national television.
In the same broadcast he urged Ukrainian military forces to lay down their weapons and go home.
CNN reported that Putin also threatened dire consequences on “those who may be tempted to intervene” on Ukraine's behalf.
“Russia’s response will be immediate and will lead you to such consequences as you have never experienced in your history. We are ready for any development of events. All necessary decisions in this regard have been made. I hope that I will be heard,” he said.
TradeWinds reporters across the globe are covering the shipping implications on the Russia-Ukraine crisis.
