FirstFT: Ukraine accuses Germany of ‘blocking’ Nato weapons supply

Ukraine’s new defence minister has blamed Germany for blocking the supply of weaponry to Kyiv through Nato, despite US warnings of a possible imminent invasion by Russian forces.

Oleksii Reznikov told the Financial Times that Berlin had in the past month vetoed Ukraine’s purchase of anti-drone rifles and anti-sniper systems via the Nato Support and Procurement Agency. However, Germany had since relented on the first item, after deeming it non-lethal.

“They are still building the Nord Stream 2 pipeline and at the same time blocking our defensive weapons. It is very unfair,” Reznikov said, referring to the Russian gas pipeline that runs through the Baltic Sea to Germany and bypasses existing supply routes through Ukraine.

Kyiv has struggled to plug gaps in its military capabilities, but allies are wary that supplying arms may be deemed a provocation, or even a pretext for escalation, by Moscow. Ukraine is urgently seeking to acquire anti-missile and anti-aircraft systems, electronic warfare kit and cyber defence equipment.

Officials and analysts — and even people close to the Kremlin — admit Russian president Vladimir Putin’s true intentions with Ukraine remain a mystery.

Thanks for reading FirstFT Europe/Africa. Here’s the rest of today’s news — Jennifer

Five more stories in the news

1. FCA hires law firms and headhunters The UK’s Financial Conduct Authority is recruiting private law firms to help process applications and has spent almost £1m on headhunters this year as it contends with almost twice the typical number of vacancies following a wave of departures.

2. Greensill gave neighbour’s business a taxpayer-backed Covid loan The now-collapsed company gave a government-guaranteed coronavirus loan to a business owned by a neighbour of founder Lex Greensill after the two men jointly lobbied their local council to adopt its controversial supply-chain finance model.

3. UK ports on course for worst year since 1983 Goods handled at the nation’s ports are expected to hit a nadir of about 408m tonnes this year, down 13.5 per cent on 2019, after declining North Sea oil production and Brexit put a large dent in cargo volumes, which are not projected to reach pre-pandemic levels until 2026.

• In the skies: The cost of flying cargo globally has reached record levels, with prices almost doubling on crucial air freight routes as companies attempt to meet surging demand in the run-up to Christmas.

4. Greece to push ECB to keep buying its bonds The Greek central bank is planning an appeal for the country’s bonds to remain eligible for new European Central Bank purchases after March when the vast bond-buying scheme launched in response to the pandemic is expected to end.

5. Deaths mount after ‘unprecedented’ US tornadoes Rescue efforts continued yesterday after what the governor of Kentucky described as the “longest and deadliest” tornado event in US history left dozens dead and a trail of devastation through the south and Midwest.

Coronavirus digest

• Over-18s across England will be offered Covid-19 booster shots by January, the government announced. A real-world study showed a third dose could be up to 75 per cent effective against symptomatic infection from the Omicron variant.

• South Africa’s president Cyril Ramaphosa is being treated for mild symptoms after he tested positive for Covid.

• The UK is preparing to extend its test and trace system as far as 2025, according to published contracts. Boris Johnson is facing criticism after photos emerged of him participating in a staff quiz in Downing Street last December.

• Tens of thousands of US government employees remain unvaccinated despite a federal jab mandate, an FT analysis has revealed. Almost two-thirds of US companies plan to require at least some workers to get vaccinated, according to a survey of employers.

• The tentative revival in the travel industry has stalled as airline and hotel bookings have fallen following the emergence of Omicron. British airlines have called for a new package of economic support.

The day ahead

Opec monthly report The oil-producing group is set to release its monthly oil market report. Sign up for our Energy Source newsletter, delivered on Tuesdays and Thursdays, for the latest.

US consumer inflation expectations November inflation hit 6.8 per cent, and the view that a higher rate would be “transitory” is slipping away. Core producer price index figures are also due.

What else we’re reading

Can Britain’s police recover public trust? Accusations of misconduct and a series of flawed investigations have cast doubt on the competence of UK forces, with concerns particularly intense about the effectiveness of police in handling sexual assault, rape crimes and cases involving minorities.

Inside JPMorgan’s client poaching row A battle over who gets to manage baseball player Alex Rodriguez’s wealth has exposed a bitter turf war at the US bank, with one financial adviser arguing that her colleagues have been trying to poach her billionaire and multimillionaire clients.

2022’s bulls, bears and frogs Will next year be one of risk or reward? There will be good investment opportunities but they will be balanced against the danger of shocks from the pandemic, inflation and climate change. FT Money’s investment panel debates possible upcoming twists and turns.

America’s segregated banking sector Boasting the best analytical capabilities money can buy and trillions of dollars of liquidity, the bedrock commercial lenders of the world’s biggest economy still has a blind spot: communities of colour. This is the first part of a series looking at race and the financial system.

A blunder teaches much more than a triumph Failure is so obviously a better teacher than success that it is a cliché to mention it. Business books regularly advise that blame-free work cultures, where mistakes are acknowledged, help boost productivity and innovation, writes Pilita Clark.

Giving

From jams and jewellery to arts foundations and food activism, the second How To Spend It philanthropy issue examines all kinds of charitable action. Explore How to Give It 2021.