Ukraine updates: Zelenskyy thanks Germany for Patriot system

Ukraine said it had reached an agreement in principle with a group of creditors to restructure $20 billion (€18.4 billion) in international bonds, giving the war-torn country some financial breathing room.

Ukraine's announcement comes just over a week before a two-year debt suspension agreement struck in 2022 is due to expire. It also marks the first time a country has embarked on a debt restructuring during a full-scale war.

In a filing to the London Stock Exchange, the Ukrainian government said it had "reached an agreement in principle" on a debt restructuring. 

The deal will see creditors, a group that includes BlackRock, Pimco and other major institutional investors, write off billions in the nominal value of their holdings and agree to a new payment schedule on terms more beneficial to Kyiv.

Ukraine, whose economy was decimated by Russia's invasion, also says it will save $11.4 billion in debt service over the next three years. 

European Union foreign policy chief Josep Borrell said the next foreign and defense ministers' meetings will be held in Brussels rather than Budapest because of Hungary's stance on the war in Ukraine.

"We have to send a signal, even if it's a symbolic signal," he said in a press conference after a meeting of EU foreign ministers.

The boycott came in response to Hungarian Prime Minister Viktor Orban's self-styled "peace mission" to Moscow to end the war in Ukraine after Hungary assumed the rotating EU presidency in July.
 
Top EU officials and fellow leaders have distanced themselves from Orban's trip, insisting that the Hungarian leader had no EU mandate.

At a meeting of European Union foreign ministers in Brussels, the bloc's top diplomats were discussing whether to boycott upcoming informal talks in Budapest.

Hungarian Prime Minister Viktor Orban has earned the ire of his fellow EU members by visiting Moscow to talk with Russian President Vladimir Putin. Orban has defended his trip as a gambit to end the war in Ukraine, but German Foreign Minister Annalena Baerbock has dismissed it as an "ego trip."

Baerbock said that a formal boycotting of the upcoming Gymnich meeting in Hungary was up to EU foreign policy chief Josep Borrell. 

Known as the Gymnich meeting for the German castle where it was first held, the event takes place every six months in a different European location. It's a chance for European foreign ministers to informally discuss a wide range of policy issues.

Ukrainian foreign minister Dmytro Kuleba is set to visit China from July 23-26 to discuss an end to Russia's invasion of his country, his office announced.

The Ukrainian foreign ministry said that the "main topic of discussion will be the search for ways to stop Russian aggression and China's possible role in achieving a sustainable and just peace."

Beijing has confirmed the talks with Kuleba, with foreign ministry spokeswoman Mao Ning saying the visit had been initiated by China's foreign minister.

During a state visit to Beijing in May, Russian President Vladimir Putin said he was "grateful" for Chinese efforts to resolve the conflict in Ukraine.

NATO leaders in July labeled China a “decisive enabler” of Russia’s war against Ukraine and called its deepening ties with Moscow a cause of “deep concern."

A tractor driver in Russia's Belgorod region was killed by a Ukrainian drone, said regional governor Vyacheslav Gladkov on Monday.

There was no immediate comment from Ukraine. Reuters news agency said they were unable to independently verify the claims. 

Belgorod region which borders Ukraine has been repeatedly attacked by Ukrainian artillery, drones and proxies over the past year. 

Russia's Defense Ministry says 75 Ukrainian drones flying over several regions have been destroyed by air defense systems overnight.

Forty-seven of the drones were destroyed over the southwestern Rostov region, 17 over the Black and Azov seas and eight over the Krasnodar region near the town of Tuapse on the Black Sea, the ministry said on the Telegram messaging app, with single drones also reported over the Belgorod, Voronezh and Smolensk regions.

Although the ministry did not mention damage from the attacks, Russia's RIA news agency and local officials in Krasnodar reported that infrastructure at the Tuapse oil refinery had been hit.

The officials said on Telegram that debris from a downed drone started a fire that has since been contained, with no casualties reported.

The refinery has been targeted several times in Ukrainian air attacks since Moscow began itsfull-scale invasion of its neighbor in February 2022, with Kyiv saying that the Russian oil industry is a key factor enabling the ongoing offensive. 

Ukrainian President Volodymyr Zelenskyy hailed US President Joe Biden's "tough but strong" decision to drop out of the presidential race, thanking him for his critical "unwavering support" for Ukraine.

"Many strong decisions have been made in recent years and they will be remembered as bold steps taken by President Biden in response to challenging times. And we respect today's tough but strong decision," Zelenskyy said on X, formerly Twitter.

Zelenskyy said his country would always be grateful for Biden.

"The current situation in Ukraine and all of Europe is no less challenging, and we sincerely hope that America's continued strong leadership will prevent Russian evil from succeeding or making its aggression pay off."

Zelenskyy has also spoken to Republican candidate Donald Trump on the phone this weekend, saying that Ukraine would always be grateful for US help in strengthening Kyiv's ability "to resist Russian terrors."

Ukrainian President Volodymyr Zelenskyy has celebrated the arrival of another German Patriot system, bringing the total Kyiv has thus far received up to three.

"The German Patriot has arrived," Zelenskyy said in his nightly video address. He added that it has likely reported readiness for deployment. 

"We will be able to do more in the sky," Zelenskyy added. "Of course, there is still much to be done, and protection is by no means guaranteed, but it is nevertheless a gain for Ukraine."

Zelenskyy has recently repeatedly highlighted the need for additional air-defense systems, as Russia presses forward with its ongoing invasion. 

rm/wd (Reuters, AP, AFP, dpa)