Tensions rise between Russian mercenaries and Kremlin; Ukraine allies focus on air defenses for Kyiv

Ukrainian President Volodymyr Zelenskyy called for additional Western weapons for its fight against a full-scale Russian invasion on his official Telegram channel.

"Ukraine has never been the instigator of any aggressive wars," Zelenskyy said in a nightly address posted on Telegram, according to an NBC News translation.

"We are appealing to the world for weapons so that our Ukrainian territory can once again be a place of peace—a land for all our people," Zelenskyy said, adding that "only through the force of arms can we defend against Russian aggression and safeguard our peace."

Zelenskyy also thanked allies and partners who have provided weapons, financial assistance and humanitarian aid since Russia's war began more than a year ago.

— Amanda Macias

The U.S. State Department has approved a potential foreign military sale to Spain for 271 M982A1 Excalibur artillery rounds.

The sale will cost an estimated $48.2 million, according to a State Department release. The weapon system is manufactured by Raytheon in McAlester, Oklahoma.

"This proposed sale will support the foreign policy and national security of the United States by improving the security of a NATO ally which is an important force for political stability and economic progress in Europe," the State Department wrote in a statement announcing the sale.

The proposed weapons deal comes as NATO allies look to bolster their borders and arsenals as Russia's war in Ukraine marches into its 500th day.

— Amanda Macias

Ukrainian President Volodymyr Zelenskyy told NBC News that U.S. presidential candidates running in the 2024 election should want to continue leading bipartisan support as Kyiv fights off a full-scale invasion.

"If Ukraine would lose, if Russia would occupy Ukraine, Russia will continue going towards Baltic countries, Poland etcetera," Zelenskyy told Richard Engel of NBC News in an interview.

"They will start war with one of the NATO countries and at this moment the United States will have to choose: the collapse of NATO, or go to war," Zelenskyy added referencing NATO's mutual defense clause, known as Article 5.

The 31-member alliance has only invoked Article 5 once in its history — in defense of the United States in the wake of the 9/11 terrorist attacks.

— Amanda Macias

The head of the International Atomic Energy Agency, or IAEA, visited the Russian-occupied Zaporizhzhia nuclear plant in Ukraine.

IAEA Director General Rafael Grossi said last week that Ukrainian President Volodymyr Zelenskyy requested the help of the nuclear watchdog agency following the attack on the Kakhovka dam.

The explosion at the dam not only triggered rising flood waters in southern Ukraine but also jeopardized the reservoirs of cooling water used for the reactors at the nuclear power plant.

Grossi said that the situation at the plant, Europe's largest nuclear power plant, remained serious but added that the level of reservoir water was stable, according to RIA news agency.

— Amanda Macias

Three ships carrying 157,872 metric tons of corn left Ukraine's ports of Chornomorsk and Odesa, according to a U.N.-backed organization that tracks exports under the Black Sea Grain Initiative.

The vessels are destined for Spain.

— Amanda Macias

U.S. Defense Secretary Lloyd Austin called on Kyiv's allies on Thursday to "dig deep" to provide more arms and ammunition to fight Russia's invasion, particularly for air defenses.

Addressing a meeting of defence ministers from the U.S.-led Contact Group of some 50 countries that give military aid to Ukraine, Austin stressed Kyiv needed both short-term and long-term support as the war was a "marathon, not a sprint".

At the meeting at NATO headquarters in Brussels, Austin noted the group had already given Patriot, IRIS-T and NASAMS air defense systems that had protected Ukraine from Russian missile attacks. But he said Ukraine needed even more.

"I ask that the members of this Contact Group continue to dig deep to provide Ukraine with the air defense assets and munitions that it so urgently needs to protect its citizens," Austin said in opening remarks.

"We'll also continue to adapt our assistance to meet the changing circumstances on the ground in the changing needs of Ukraine's forces."

It was the 13th meeting of the contact group, which Washington set up last year to coordinate western aid for Kyiv. Ukrainian Defense Minister Oleksii Reznikov attended the meeting and was expected to brief his counterparts on Ukraine's counteroffensive to retake more territory from Russian forces, which Kyiv launched this month. The campaign is expected to use hundreds of tanks and armoured vehicles supplied by the West.

Later in the day, NATO defense ministers will meet separately with Reznikov to discuss their support for Kyiv. The meeting comes as NATO members are engaged in intense discussions over Ukraine's desire to join the alliance and long-term plans to assure the country's security after the war ends.

— Reuters

Ukrainian President Volodymyr Zelenskyy's hometown of Kryvyi Rih and the southern and eastern regions of Kherson and Donetsk were hit with further Russian missile attacks on Thursday.

Mayor of Kryvyi Rih Oleksandr Vilkul said three missiles struck two industrial enterprises overnight, adding that the destruction was "significant" and the buildings were nothing to do with the military. The latest attack comes after missile strikes on the industrial city on Tuesday killed 12 people.

Elsewhere, the regional governor of the southern Kherson region said an 80-year-old died when the Zelenivka settlement was shelled. The governor of Donetsk said a person had died and three were injured as various settlements came under fire.

CNBC was unable to immediately verify the reports.

— Holly Ellyatt

Ukraine has regained control of over 100 square kilometers, or 38 square miles, of territory in its counteroffensive against Russian forces, a senior Ukrainian military commander said on Thursday.

"We are ready to continue fighting to liberate our territory even with our bare hands," Brigadier-General Oleksii Hromov told a media briefing.

He confirmed that in the early stages of the offensive, which Ukraine said had begun last week, seven settlements had been liberated in the eastern region of Donetsk and in the southern region of Zaporizhzhia.

The army has advanced by to 3 km (1.8 miles) near the village of Mala Tokmachka in the Zaporizhzhia sector and by up to 7 km near a village south of Velyka Novosilka in the Donetsk sector, military officials said.

Reuters could not verify the battlefield situation.

Russia, which began its full-scale invasion of Ukraine in February 2022, has not officially acknowledged the Ukrainian advances. Each side says the other has suffered heavy losses since the counteroffensive started, and Moscow and Kyiv rarely comment on their own losses.

— Reuters

The Kremlin again downplayed the prospect of the Black Sea grain export deal with Ukraine being extended when it expires in mid-July.

Kremlin spokesperson Dmitry Peskov told reporters Thursday that "work is ongoing, but to be honest we don't see any particularly positive prospects. Everything that was agreed on regarding us has not been fulfilled."

On Wednesday, Peskov said Russia's "goodwill" over the deal, which has enabled millions of metric tons of agricultural products to leave three of Ukraine's ports, was wearing thin.

Russia has reluctantly extended the U.N. and Turkey-brokered deal several times but has complained that its own own grain and fertilizer exports face continuing obstacles due to restrictions on payments and access to insurance.

— Holly Ellyatt

Norway and Denmark have agreed to donate an additional 9,000 rounds of artillery to Ukraine, the Norwegian ministry of defense said in a statement on Thursday.

Norway will provide the shells, while Denmark will donate fuses and propellant charges, the Norwegian ministry said.

Norway will also donate 7,000 rounds from its own stocks, which have already been sent to Ukraine, according to the ministry.

The artillery rounds can be used in several types of artillery, including the M109 that Norway has previously donated, the ministry said.

The ammunition will be replaced through acquisition of new munitions, it added.

— Reuters

Close followers of Russia are keeping a close eye on emerging tensions between the Kremlin and the head of Russian private military company, the Wagner Group.

There's no love lost between the head of the Wagner Group, Yevgeny Prigozhin, and Russia's Ministry of Defense, with Prigozhin openly and repeatedly criticizing the ministry's most senior officials, including Defense Minister Sergei Shoigu, on Russia's strategy in Ukraine.

Prigozhin and Wagner fighters have spent months fighting in Donetsk, mainly in and around Bakhmut, and claimed to have finally captured the town last month, before handing it over to Russian regular units.

Tensions are rising again, however, after Russia's Defense Ministry demanded last Saturday that members of "volunteers formations" such as Wagner Group sign contracts directly with the Ministry of Defense. Wagner's Prigozhin refused to sign any contracts, although the defense ministry's demand was explicitly endorsed by President Vladimir Putin on Tuesday.

Putin's endorsement and Prigozhin's refusal to sign contracts puts Prigozhin — a long-term ally of Putin and one who's been careful never to criticize the Russian leader in public — in a precarious position, and in potential direct confrontation with Putin.

In its latest intelligence update, Britain's Defense Ministry remarked on rising tensions, noting that "for several months, Wagner owner Yevgeny Prigozhin has been aiming vitriolic criticism at the MoD hierarchy but deferred to Putin's authority." 

Now, however, the U.K. noted that "Prigozhin's rhetoric is evolving into defiance of broader sections of the Russian establishment." July 1, the deadline for the volunteers to sign contracts, is likely to be a key way point in the feud, it warned.

— Holly Ellyatt

Ukraine and its allies are meeting Thursday to discuss Kyiv's ongoing military needs and requirements, with Kyiv's military command saying that strengthening air defense, artillery and counter-battery capabilities are "important objectives."

The meeting of the so-called Ukraine Defense Support Group in Brussels, Belgium, will "focus on bolstering Ukraine's air defense and other near-term capability priorities, as well as training and sustainment to enhance Ukraine's enduring strength over the long term," according to a readout of a phone call between U.S. Secretary of Defense Lloyd Austin and Ukrainian Minister of Defense Oleksii Reznikov earlier this week.

The Ukraine Defense Support Group includes 54 countries, ranging from those in the NATO military alliance to non-members such as Australia, Japan, South Korea and Ireland.

Ahead of Thursday's meeting, the Commander-in-Chief of the Armed Forces of Ukraine Valerii Zaluzhnyi said he had spoken to U.S. Army Gen. Mark Milley, chairman of the Joint Chiefs of Staff, and updated him on the counteroffensive Ukraine launched last week to reclaim Russian-occupied territory.

"Heavy defensive and offensive battles are currently taking place in the east and south of our country. While we have achieved certain successes and are implementing our plans, we continue to push forward," he said on Telegram.

"Priorities for the Ukrainian army were discussed in preparation for the upcoming regular meeting of the contact group on defense issues, which follows the "Ramstein" format. Strengthening air defense, artillery, and counter-battery capabilities were identified as important objectives."

— Holly Ellyatt

At least three people died after shelling destroyed seven homes and damaged dozens more in the eastern Ukrainian cities of Kramatorsk and Kostiantynivka on Wednesday, according to a Telegram post from Pavlo Kyrylenko, governor of the Donetsk province.

The Associated Press reported that the Ukrainian presidential office said a missile hit the Ukrainian-controlled city of Kramatorsk, where Kyiv's forces are headquartered. The office said that strike killed two civilians and wounded two others while damaging 29 homes.

Meanwhile, Russian shelling in the eastern city of Kostiantynivka in Ukraine killed one civilian, with 57 houses damaged, it added.

— The Associated Press and Anatolii Stepanov | AFP | Getty Images

U.S. Secretary of State Antony Blinken will travel to London to meet with his counterparts from the U.K. and Ukraine during the Ukraine Recovery Conference.

He will also meet with several allies on the sidelines of the conference and is expected to galvanize allies and the private sector to support Ukraine's reconstruction efforts.

— Amanda Macias

Turkish President Recep Tayyip Erdogan told reporters traveling with him that Sweden has not done enough to be admitted to the NATO military alliance, according to a Reuters report.

Ankara has previously accused Stockholm of harboring terrorists. The latest revelation comes as NATO members are set to meet next month in Lithuania.

Finland and Sweden began the formal process of applying to NATO last May as Russia's war in Ukraine marched into its third month.

At the time, Ankara demanded certain concessions from both Finland and Sweden before approving NATO membership. Earlier this year, Turkey formalized the ratification of Finland to join the NATO alliance.

— Amanda Macias

Belarusian President Alexander Lukashenko said the country has received some of Russia's tactical nuclear weapons and warned he wouldn't hesitate to use them if Belarus faced an act of aggression, the Associated Press reported.

Lukashenko's comments contradict earlier statements by President Vladimir Putin who has said Russia will retain control of the weapons and is stationing them in Belarus, similar to the U.S.' agreements to deploy weapons in their allied countries, according to Reuters.

The deployment is Moscow's first move of such warheads outside Russia since the fall of the Soviet Union, and it is being monitored closely by the U.S., its allies and China, Reuters reported.

Lukashenko, who has allowed his country to be used by Russian forces attacking Ukraine, said the nuclear deployment will act as a deterrent against potential aggressors, the AP reported. Belarus borders the NATO member countries Lithuania, Latvia and Poland.

— Melodie Warner

The Kremlin said it could withdraw from the grain export deal with Ukraine when the current agreement expires in mid-July.

The agreement, known formally as the "Black Sea grain Initiative," has enabled over 31 million metric tons of vital agricultural exports to leave three of Ukraine's ports amid the ongoing war.

Russia has reluctantly extended the UN and Turkey-brokered deal several times but has complained that its own own grain and fertilizer exports face continuing obstacles due to restrictions on payments and access to insurance.

Kremlin press secretary Dmitry Peskov was asked by reporters to comment on Russian President Vladimir Putin's comment yesterday that Russia is considering the possibility of withdrawing from the deal, and was asked if this could take place when it's set to expire, or before.

"At the end," the Kremlin spokesman replied, according to news agency Interfax.

Peskov was also asked why Moscow was considering withdrawing from the deal now, despite long-standing grievances about it.

"Russia has repeatedly made such gestures of goodwill [by extending participation in the deal], showing a very responsible approach, but, unfortunately, in the absence of reciprocity and the absence of the desire of the collective West to fulfil part of the agreements regarding Russia, of course, this is a manifestation of goodwill and political will cannot be endless," Peskov said, Interfax reported.

On Tuesday, President Putin said that "we are now thinking about how to get out of this grain deal. Especially since these corridors along which the ships go are constantly used by the enemy to launch drones, sea drones," he said, without presenting evidence. Ukraine says that Russia has repeatedly sought to undermine and hinder the grain export deal.

— Holly Ellyatt

Ukrainian forces are facing "extremely fierce" battles as their counteroffensive experiences "partial success," according to Ukraine's deputy defense minister.

Commenting on Telegram, Hanna Maliar said Ukrainian fighters had advanced up to 500 meters in the Bakhmut area over the past 24 hours, and up to 350 meters in the Zaporizhzhia area in southern Ukraine.

"Our troops are moving in the face of extremely fierce battles, aviation and artillery superiority of the enemy," Maliar said Wednesday.

She said fighting was continuing near the village of Makarivka in the direction of the southern port city of Berdiansk, as well as in the areas of Novodanylivka and Novopokrovsk in the Mariupol direction. CNBC was unable to immediately verify the information.

— Holly Ellyatt

Ukraine facing 'extremely fierce' battles and 'partial success' in counteroffensive; Putin says it's failing