The US and Germany will send armoured vehicles to Ukraine, President Joe Biden and Chancellor Olaf Scholz said in a joint statement, providing a significant upgrade in firepower urgently sought by Ukrainian President Volodymyr Zelensky. Germany will also follow the US in providing a Patriot missile defence system to Ukraine.

Russia plans to wrest more money from some commodity producers and state companies and trim non-defence spending, according to a government order seen by Bloomberg News.

Key developments

• Russia says it’s begun brief Ukraine ceasefire that Kyiv scorned
• Russia looks to press big firms for more cash as war costs mount
• German shift on combat vehicles triggers calls for battle tanks
• Heavier arms for Ukraine give Putin no respite: Balance of Power
• US, Germany to send Ukraine armoured vehicles in major upgrade

On the ground

Ahead of their planned ceasefire, Kremlin forces continued limited counterattacks to regain lost positions along the Svatove-Kreminna line. Russian forces claimed that Ukrainian troops continued counteroffensive operations in the area. Ukraine’s military reportedly conducted a successful counterattack as Russian forces continued offensive operations around Bakhmut and west of Donetsk City.

France says Putin’s ceasefire doesn’t fool anyone

A French foreign ministry spokesperson said Russia’s 36-hour unilateral ceasefire is an attempt by Moscow to hide its responsibility for relentless bombardments of Ukraine’s civilians and critical infrastructure.

Russia has shown during the conflict, now in its 11th month, that it doesn’t want peace, the official said, repeating a call for a full withdrawal of Moscow’s troops from Ukraine.

Kyiv to start talks on EU accession under Swedish presidency

Ukraine expects to start negotiations on the country’s accession to the European Union — a process likely to take years — under Sweden’s presidency of the European Council, which started this month, Zelensky said during an online meeting with Swedish Prime Minister Ulf Kristersson.

“This is a powerful motivator for our army and a common desire of our society. We believe that it will be a strong incentive for unity within the EU,” Zelensky said in a statement posted on the presidential website.

Zelensky speaks to Japanese PM

Volodymyr Zelensky thanked Japan for “powerful generators and transformers” as Ukraine attempts to keep the lights and heat on after more than two months of regular, widespread Russian missile attacks on energy infrastructure.

Russia says it begins Ukraine Christmas ceasefire as planned

Russia said its troops stopped fighting in Ukraine at noon Moscow time under President Vladimir Putin’s order of a 36-hour ceasefire for the Orthodox Christmas holiday. Kyiv dismissed the offer as a ploy.

Air-raid sirens sounded across the country shortly after the deadline, Ukraine said.

Russia’s Defence Ministry said its forces had stopped firing across the entire front line but accused Ukraine of continuing to fight. Earlier, Russian military officials had said they would continue to fight if fired on or if Ukraine’s forces pushed to advance.

German shift on combat vehicles triggers calls for battle tanks

Chancellor Olaf Scholz won praise from domestic allies for the latest boost in German military aid for Ukraine, but some said the decision to ship combat vehicles should have come much sooner and urged the government to supply even heavier kit.

Marie-Agnes Strack-Zimmermann, a member of Scholz’s FDP coalition partner, called on the government to immediately offer Nato-grade Leopard 2 battle tanks. If Germany gave the green light, other allies would follow suit and send their Leopards, she said Friday in an interview with public broadcaster NDR.

Clock starts on Putin’s Ukraine ceasefire that Kyiv scorned

Russian state television said the order had gone into effect as scheduled, but there was no official confirmation from the Defence Ministry or the Kremlin.

In the hours leading up to the deadline, fighting continued unabated, with each side accusing the other of strikes. Earlier, Russian military officials had said they would continue to fight if fired on or if Ukraine’s forces pushed to advance.

Russia looks to squeeze big firms for cash

Russia plans to wrest more money from some commodity producers and state companies and trim non-defence spending as the costs of the invasion of Ukraine mount.

Proposals include higher dividends from state companies and a “one-time payment” by fertiliser and coal producers, under instructions issued to officials by Prime Minister Mikhail Mishustin in mid-December.

The document, a copy of which was seen by Bloomberg News, calls the effort part of “revenue mobilisation.” It also orders 175 billion roubles ($2.4-billion) in extra spending to resettle 100,000 people from Kherson to Russia.

Putin’s pause aimed at regrouping, ISW says

Putin could have been seeking to secure a 36-hour pause for Kremlin troops “to afford them the ability to rest, recoup, and reorient to relaunch offensive operations in critical sectors of the front,” said military analysts at the Institute for the Study of War in a daily update.

“Such a pause would disproportionately benefit Russian troops and begin to deprive Ukraine of the initiative,” ISW said.

Putin, who “cannot reasonably expect Ukraine to meet the terms of this suddenly declared ceasefire,” is reprising a tactic to frame Ukraine as unaccommodating and unwilling to take the necessary steps toward negotiations, the US-based group said.

German regulator upbeat on gas supply

The head of Germany’s network regulator said the agency is “very optimistic” about the country’s gas supply this winter as lower consumption due to warmer weather helps offset the impact of halted exports from Russia. Germany’s new LNG terminals are also helping.

A gas shortage this winter is unlikely, though a risk remains, BNetzA President Klaus Mueller said in an interview with public broadcaster ARD. “The more gas we have in storage facilities at the beginning of the year, the less stress and cost we will face in filling them again for next winter,” he added.

Zelensky ridicules ceasefire offer, praises new weapons

The Ukrainian president joined allies in the West in ridiculing Putin’s ceasefire announcement.

“Now they want to use the Christmas as cover to halt offensive of our boys in Donbas at least for a while and redeploy their military vehicles, ammunition and mobilised closer to our position,” Zelensky said in a statement. “What will that bring? Just more casualties.”

In a tweet, he praised Germany’s decision to send armoured fighting vehicles and a Patriot missile defence system, saying that “Germany is making a crucial contribution in intercepting of all Russia’s missiles.” DM