Ukraine Carries Out First Strike With US Missiles in Russia

(Bloomberg) -- Ukrainian forces carried out their first strike on a border region in Russia using Western-supplied missiles as President Vladimir Putin approved an updated nuclear doctrine expanding the conditions for using atomic weapons.

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Ukraine deployed ATACMS missiles to strike a military facility in the western Bryansk region, Russia’s Defense Ministry said in a statement on Telegram. It was the first known attack following the decision by President Joe Biden’s administration to approve Kyiv’s limited use of the weapons to hit targets inside Russia, two months before Donald Trump takes over promising to quickly end the war.

Ukraine’s General Staff earlier confirmed a strike on a warehouse in the city of Karachev, detonating ammunition stored at the site some 115 kilometers (71 miles) from the border with Ukraine. Neither the General Staff nor Ukraine’s Defense Ministry would comment on what weapons were used, saying the information is classified. Russia’s Defense Ministry said that its forces shot down five missiles and damaged one, and no casualties were reported.

Meanwhile, Putin signed a decree allowing Russia to fire nuclear weapons in response to a conventional attack on its soil that threatens its sovereignty, including by drones. Russia will view aggression against itself or its allies by a non-nuclear state backed by a nuclear power as a joint attack, the document posted online said. That follows a pledge Putin made in September to revise the doctrine.

The moves by both Ukraine and Russia appeared to leave investors rattled and rushing to buy the safest assets. Government bonds and traditional haven currencies including the Japanese yen and Swiss franc surged.

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The yield on US Treasuries fell at least six to seven basis points across the curve. The yen climbed 0.8% against the dollar, while the franc rose to strongest level against the euro since August.

With the war reaching its 1,000th day and neither side able to claim a decisive advantage on the battlefield, there’s an increasing recognition among Kyiv’s allies that Zelenskiy will have to compromise with Putin to stop the fighting. While Trump has yet to say how he’ll fulfill promises to end the war, his return to office raises the possibility of drastic cuts in US support and has prompted both sides to try to strengthen their hand should they be compelled to the negotiating table.