this is bbc news, with the latest business headlines for viewers in the uk and around the world. a stand—off between russia and the west. moscow wants its gas exports to be paid for in roubles. g7 countries say no and a deadline looms large. who will blink first? cutting off the cash. we hear from the deputy secretary of the us treasury who explains how international sanctions are crippling the kremlin. sewing together an environmental blueprint. the european commission outlines its new textile strategy as it clamps down on waste. and stop the clocks. for the first time in two years the watches and wonders fair is back in geneva. relieved fans who can finally attend will be saying it's about time.

let's get down to business and the game of who blinks first is on after g7 nations refused vladimir putin's demand to pay for russian gas in roubles. this means russia may turn off the taps to europe unless an agreement is reached within days. on tuesday, moscow said it wouldn't supply gas to europe for free. vladimir putin has ordered the russian central bank, the government, and gazprom to present proposals by 31 march for gas payments in roubles from "unfriendly countries," including all european union states. however the g7 and european leaders have rejected the demand, raising new doubts about the fuel supply to europe. germany would be worst hit,

it imported 55% of its gas from russia last year. laurent ruseckas is a executive director of gas in europe at s&p global. laurent, good to have you on the programme. what do you think will happen? figs the programme. what do you think will happen?— the programme. what do you think will happen? as you said, the eu has _ think will happen? as you said, the eu has reject _ think will happen? as you said, the eu has reject did _ think will happen? as you said, the eu has reject did this. - the eu has reject did this. they pointed to the fact that gazprom, russia's gas supplier does not have the right to unilaterally change the currency payment, i think this is seen, correctly, is primarily a way to undermine sanctions against the russian central bank, because the exchanges that are required, current prices they would be about 400 million euros per day, that would require transaction with the central bank, which is currently not

allowed. so it is a stand—off. it is absolutely a stand—off. could the eu pay for the gas in roubles if it was forced? it could. i think at a political level that would be seen as a huge concession and a de facto weakening of sanctions toward russia, so it would seem to me the political determination has been made not to allow it. now, at a certain level things can get into more dull contract negotiations. gazprom can inform its counterparties in europe, those it buys and sells gastro, saying we do a lot of deals with you, can we sit down and negotiate? if deals with you, can we sit down and negotiate?— and negotiate? if president putin makes _ and negotiate? if president putin makes it _ and negotiate? if president putin makes it law, - and negotiate? if president putin makes it law, which l and negotiate? if president. putin makes it law, which he has done, gazprom has to comply with that and that is his argument, isn't that, when g7 leaders and europea league are so you are in breach of contract. so you are in breach of contract-— so you are in breach of contract. that's right. it looks from, _ contract. that's right. it looks from, just - contract. that's right. itj looks from, just reading contract. that's right. it - looks from, just reading the tea leaves, this isn't going to be an ultimatum taking effect tomorrow or something like

that, looks like gazprom was sent letters to each of its approximately 30 companies to which it sells gas in the eu and then open negotiations and we have had a change of russian law, and then who knows, the negotiations could go slowly or quickly, but to the extent they don't reach an agreement, and they don't think they would unless russia backs off from this demand, then you could see some of those contracts going into determination stop by this is coming at a very critical time, isn't it, when russia and ukraine seem to be making some progress in terms of a pathway to peace? that's true. that is the wildcard here. if there is rapid progress toward a peace agreement that could be the easy overall situation on both sides. don't think it would lead the eu to accept rouble payment, but it could down the temperature. however, we never know what is going to happen in russia. the progress we see maybe illusory.—

maybe illusory. laurent ruseckas. _ maybe illusory. laurent ruseckas, thank - maybe illusory. laurent ruseckas, thank you i maybe illusory. laurent| ruseckas, thank you for explaining all of that. that is the situation. we are keeping a very close eye on it. international sanctions are beginning to hurt the kremlin�*s efforts to fund its military operation for the war in ukraine, according to wally adeyemo, who is the deputy secretary of the us treasury. he spoke to our economics editor faisal islam and said efforts to stop russia from being able to fund military action started many years ago and are now having an impact. in 2014 0wa to the us treasury department when we took our first set of actions against russia and they learn from that the importance of building up a war chest. we also learned the value of immobilising that which is to ensure they did not have the ability to use that money to advance their war of choice in ukraine. the truth is, the money they are taking in today is no longer feeling that war chest, they using the money to buy rouble to try to p"°p up money to buy rouble to try to prop up their economy, so the russian government ordered

exporters, when they bring back currency —— currency, whether they be euros or dollars or any other currency, to turn it into rouble to support the economy. so that is money they can't use to go and support the war effort. so ultimately our goal here is to make sure we are forcing them to make choices, to choose between supporting the domestic economy and their domestic needs, rather than being able to support the war in ukraine. i5 being able to support the war in ukraine-— in ukraine. is the aim here to damaue in ukraine. is the aim here to damage the _ in ukraine. is the aim here to damage the russian - in ukraine. is the aim here to l damage the russian economy, in ukraine. is the aim here to - damage the russian economy, is to make the russian economy and you are the worst possible recession? that a of conflict without actual weaponry? fiur without actual weaponry? our coal is without actual weaponry? our goal is to _ without actual weaponry? our goal is to step _ without actual weaponry? our goal is to stop the _ without actual weaponry? oi" goal is to stop the invasion in ukraine, we have made it very clear. vladimir putin's ability to project power, to ensure the people of ukraine are free to make their own choices, to make sure vladimir putin has his choice. ., , sure vladimir putin has his choice. . , ., ., choice. clearly we have had the comments _ choice. clearly we have had the comments from _ choice. clearly we have had the comments from the _ choice. clearly we have had the comments from the president l comments from the president over the weekend, this man must

90, over the weekend, this man must go, is that an aim, are you trying to put economic pressure on russia to reject the president? 5 on russia to re'ect the president?_ on russia to re'ect the resident? �* . , �* ~ president? '5 equity blinken has made — president? '5 equity blinken has made clear, _ president? '5 equity blinken has made clear, as - president? '5 equity blinken has made clear, as has - president? '5 equity blinken has made clear, as has the l has made clear, as has the president, that we have no aim at regime change in russia or anywhere else in the world. our goal remains to ensure we use our sanctions and exclude controls to limit the criminal�*s ability to project power in ukraine and around the world in ways that destabilise it. that is why we have got after the economic system to limit the resources to pay for that war. that is why we went up that war. that is why we went up to their elets were financing the criminal�*s operations and that is why we will continue to go up to sectors of the russian economy that are critical to that military—industrial complex. in addition to going after the military companies in russia we will go after the companies that supply them in order to ensure that while we're helping the ukrainians defend themselves we are also limiting russia's ability to support the military going forward and we are ready to take actions, not only against countries but against companies and individuals who help them evade sanctions going forward, are paying a great deal of attention to invasion. just

over a week ago so greg allen and our attorney general met with their counterparts in the uk and the rest of the g7 and they agree to an effort to not only freeze the assets of russian elites, but to cease together we are going take those actions to ensure that money is not used to support the criminal�*s illegal war in ukraine. the criminal's illegal war in ukraine. �* , ., the criminal's illegal war in ukraine-— ukraine. and if you are a russian _ ukraine. and if you are a russian oligarch - ukraine. and if you are a russian oligarch who - ukraine. and if you are aj russian oligarch who has ukraine. and if you are a - russian oligarch who has been comfortable parking your assets, your yachts, your fancy property not so far from here, what is the message to them? my what is the message to them? ij�*i message what is the message to them? m: message to what is the message to them? m; message to any russian oligarch who has money and is an elite, we're going to come for your resources, we are going to make sure we are in a position where we will use our authorities to ensure that your resources not able to be used to support the criminal's illegitimate activity in ukraine. we're watching you. a number of these elites, we seen are transferring that wealth to non— associate, and a message to them is the same, that any efforts to help these elites evade our sanctions will be met

with us taking action to hold you accountable.— with us taking action to hold you accountable. wally adeyemo there, you accountable. wally adeyemo there. deputy — you accountable. wally adeyemo there, deputy secretary - you accountable. wally adeyemo there, deputy secretary of - you accountable. wally adeyemo there, deputy secretary of the i there, deputy secretary of the treasury. it's germany's turn to reveal in a few hours just how expensive basic goods and services are when it releases its latest inflation numbers. like the rest of the world, the eurozone's biggest economy has been struggling to keep a lid on rising prices. economists predict inflation could have soared to as high as 6.5%, well above last month's figure of 5.5%. joining me now is christian schulz, who's an economist at citi. good morning. where are you, when looking into the crystal ball, what figure will you get today? ball, what figure will you get toda ? �* , ., , ball, what figure will you get toda ? �* , ., ' ~' today? between six and 796, 615 is probably _ today? between six and 796, 615 is probably where _ today? between six and 796, 615 is probably where we _ today? between six and 796, 615 is probably where we are. - today? between six and 796, 615 is probably where we are. i - is probably where we are. i think their upside risks to that, we have had risks left, right, and said across the western world, i would not be surprised if it is more in germany as well —— 6.5.

surprised if it is more in germany as well -- 6.5. what is the biggest _ germany as well -- 6.5. what is the biggest factor, _ germany as well -- 6.5. what is the biggest factor, is _ germany as well -- 6.5. what is the biggest factor, is it - the biggest factor, is it energy, the rising cost of gas and other energy supplies? yes, in the march _ and other energy supplies? yes, in the march case _ and other energy supplies? yes, in the march case it _ and other energy supplies? yes, in the march case it will- in the march case it will probably be petrol, fuel, that has really increased by about 20% month on month at the pump and that is going to show up inflation. gas as well, food is another thing we are concerned about, package holidays, so it is broadening, is notjust energy directly. is broadening, is not 'ust energy directly.�* is broadening, is not 'ust energy directly. is broadening, is not 'ust ener: directl . ~ . , energy directly. what impact is this having _ energy directly. what impact is this having on _ energy directly. what impact is this having on day-to-day - this having on day—to—day living in germany and what is the german government to help? well, to some degree germany is a little bit protected against some of the increases, for instance, import a lot of gas from russia, but we don't actually use gas so much for electricity generation, so electricity prices are not rising quite so much and the government has cut some renewable fees on electricity already, so that is helping a little bit. they are planning now to cut indirect taxes on fuel from 1 april, that is going to help to some degree.

the problem is, of course, the prices are especially rising where people really can't do very much about it, where they have to spend, where the list as —— elasticity is very low and that means they have to cut spending elsewhere, they have to go to restaurant left, —— les, travellers, spend less money on presence at things like that, so it is really hurting the economy and we think it is going to be very difficult to eke out any growth in the coming quarters. qm. difficult to eke out any growth in the coming quarters. ok, so little growth. _ in the coming quarters. ok, so little growth, but _ in the coming quarters. ok, so little growth, but will - in the coming quarters. ok, so little growth, but will germanyj little growth, but will germany go into recession, that is what many are discussing right now? that will probably not depends much on what households are that would depend on how big it is —— supply disruptions in the industrial sectors are. it is notjust households with high energy prices, it is companies. but across very complex supply chains, especially of course if gas is cut off, then i think the risk, then it is almost a certainty will fall into recession because car factories will come to a standstill and

thatis will come to a standstill and that is too big a part of the economy to be offset by anything else.— economy to be offset by anything else. economy to be offset by an hinu else. ., , anything else. ok, thanks very much your— anything else. ok, thanks very much your thoughts _ anything else. ok, thanks very much your thoughts today. - anything else. ok, thanks very much your thoughts today. to | much your thoughts today. to talk to you. christian schulz there, economist at citi we will update you with more figures. stay with us on bbc news. still to come: stop the clocks. because for the first time in two years the watches and wonders fair is back in geneva. relieved fans who can finally attend will be saying it's about time.

this is bbc world news. the latest headlines: russia has said it will scale back military operations around the ukrainian capital kyiv. but western countries express doubts. israel's prime minister says the country is facing a new wave of terror — after another deadly shooting.

later today, the european commission outlines its new moving it towards a climate—neutral, circular economy where products are durable, repairable and reusable. joining me now is bernice pan, founder of the circular fashion line deploy. bernice is in brussels as part of the brussels sustainable fashion forum which starts today. great to have you on the programme. this of all, just explain what we mean by circularfashion. explain what we mean by circular fashion.— circular fashion. well, circular _ circular fashion. well, circular fashion - circular fashion. well, circular fashion really | circular fashion. well, - circular fashion really looks at the whole supply chain from the beginning, where resources are used and how we can be more resource efficient, more conserving, without

compromising creativity and profitability and efficiency. and then how we actually move through our supply chain making textiles, making garments, and then market and distributed in a way where consumers can wear the garments for longer and actually reuse the government in different ways, perhaps even in different ways, perhaps even in multifunctional ways, such as how we design clothes, and then not actually throw things away where right now the whole supply chain is having a very extreme way of taking, making, and wasting, where it is creating billions of government waste each year and only 1% of the government waste that we produce each year is recycled, so this is causing a massive environmental issue in terms of

the landfill and incinerator and causes climate change. yes, absolutely- _ and causes climate change. yes, absolutely. you _ and causes climate change. yes, absolutely. you have _ and causes climate change. yes, absolutely. you have explained very well held circular fashion operates, but you have also outlined that there is an awful lot of work to be done, as an industry, is a huge problem when it comes to climate and carbon emissions. so what will this new blueprint set up by the european commission today demand? ~ , , demand? well, so, firstly, it ist in: demand? well, so, firstly, it is trying to — demand? well, so, firstly, it is trying to facilitate - demand? well, so, firstly, it is trying to facilitate this - is trying to facilitate this business and come up with tangible recommendations in balancing what is actually a very profitable, lucrative, and an economic powerhouse, really, which fashion and textile, pre—pandemic years, was enjoying year—on—year growth even faster than the tech industry. so was really trying

to balance this positive aspect of the fashion industry with its problem of waste and resource intensity and incentive by businesses to quickly shift towards the principles of circular economy, circular design, circular fashion. it circular design, circular fashion-— circular design, circular fashion. , ., , fashion. it has been really aood to fashion. it has been really good to talk _ fashion. it has been really good to talk to _ fashion. it has been really good to talk to you - fashion. it has been really good to talk to you this i good to talk to you this morning. a key stakeholder in this, bernice pan founder of deploy. thank you.- this, bernice pan founder of deploy. thank you. let's update you on evergrande. it is in serious trouble in terms of debt. it has announced it's selling its stake in the crystal city project for $575 million. the struggling property developer currently doesn't have the funds to progress the project in the hangzhou region, as it remains saddled with huge debts. joining me now is our asia

business reporter, joao da silva. good to talk to you. just tell us more about the steel. that's riuht. us more about the steel. that's right- this _ us more about the steel. that's right- this is — us more about the steel. that's right. this is one _ us more about the steel. that's right. this is one more - us more about the steel. that's right. this is one more move i us more about the steel. that's right. this is one more move by evergrande to try to entangle itself from what is essentially a mountain of debt. the company will be getting about half a billion dollars from this transaction, which may seem insignificant if you think evergrande has about $300 billion in debt, but you really need to think about this as part of an incremental strategy to avoid a disorderly collapse. now, in this particular case, ever grant will be disposing of its land use and building ownership rights in this project. and most of the money will go, the money will go to pay construction fees for this and other projects in that city. a reminder that this is happening as ever grant shares have been suspended in hong kong for about a week, that

happened because the company admitted it won't be able to publish financial results on time because of drastic changes in its outlook, so ever—growing, to ease investor concerns, announced it will be unveiling a debt restructuring plan already injuly, a reminder the company has failed to pay foreign creditors, so there are a lot of answers people out there waiting for more clarity, waiting for this debt restructuring plan from evergrande. debt restructuring plan from evergrande-— debt restructuring plan from everurande. . ~' , ., evergrande. 0k, thank you. the latest on a _ evergrande. 0k, thank you. the latest on a very _ evergrande. 0k, thank you. the latest on a very important - latest on a very important story. now, have you ever been in meetings at work that feel like they are going nowhere and nothing is being resolved? there's even a bad atmosphere? well, one ceo sees it as his main duty to sort these situations out, he's been sharing his ceo secrets with us. jewmacro most important lessons they have learned as a ceo, first, simply, make decisions —— to mark roe. the second is to put the right oxygen in the room.

music plays. the first lesson, that ability to make simple decisions, is incredibly important. underlined it while it was working at a number in the us with 450 people, and day really broke down into 15 minute increments, all people need from you is the ability to make a decision, a simple yes or no is really the most important thing, and they really found, quite quickly, as long as you made a decision, even if sometimes it was wrong, that is all people needed from you to get on with the rest of their day. when you walk into a room, if it is a roomful of problems, yourjobis if it is a roomful of problems, yourjob is to put positive oxygen in there, which is about

making peoplejust look oxygen in there, which is about making people just look for opportunities and ways to challenge things they have never done before. so really understanding the opportunity to manage the oxygen and drive simple decisions are probably the two things are try to push every day. the two things are try to push every day-— every day. don't we 'ust love aood every day. don't we 'ust love good leadership. _ every day. don't we just love good leadership. this - every day. don't we just love good leadership. this series| every day. don't we just love i good leadership. this series is great, there are more on our website, do take a look. one of the luxury goods sector's show—piece events returns today for the first time since the start of the pandemic. watches and wonders is back in geneva for all the luxury watchmakers to show off their designs. sales of swiss watches are booming right now. in fact exports of swiss watches to the us increased 55% last year to more than $3 billion. joining me now is brian duffy, who's the ceo of watches of switzerland group. brian, you are going to be at this event, i assume?- this event, i assume? yes, i will be there _ this event, i assume? yes, i will be there in _ this event, i assume? yes, i will be there in a _ this event, i assume? yes, i will be there in a couple - this event, i assume? yes, i will be there in a couple of. will be there in a couple of hours. i will be there in a couple of hours. ., , , will be there in a couple of hours. . , , , ., will be there in a couple of hours. . ,, i. ., will be there in a couple of hours. .,

hours. i assume you are happy, excited, this _ hours. i assume you are happy, excited, this is _ hours. i assume you are happy, excited, this is one _ hours. i assume you are happy, excited, this is one of - hours. i assume you are happy, excited, this is one of those - excited, this is one of those things people have missed. excited. we have actually had watches and wonders for the last two years, but all virtually. last two years, but all virtually-— last two years, but all virtuall . �*, , ., virtually. it's 'ust not the same, virtually. it's 'ust not the same. is — virtually. it's 'ust not the same, is not _ virtually. it'sjust not the same, is not the - virtually. it'sjust not the same, is not the same. i virtually. it'sjust not the | same, is not the same. it virtually. it'sjust not the i same, is not the same. it is not, but _ same, is not the same. it is not, but equally with the i not, but equally with the wonderful product we deal with you want to get it in your hands, put it on your wrist, and feel the product.- hands, put it on your wrist, and feel the product. you want to hear it _ and feel the product. you want to hear it tick. _ and feel the product. you want to hear it tick. do _ and feel the product. you want to hear it tick. do tell- and feel the product. you want to hear it tick. do tell us i and feel the product. you want to hear it tick. do tell us how l to hear it tick. do tell us how your industry is doing. it sounds like it is booming and, given the economic stress across the world, we wonder why, who has got the money was yellow the luxury industry in total has done surprisingly well, and within that watchers have done even better than the average. brute have done even better than the averaue. ~ , have done even better than the averaue.~ , _ y average. we believe everybody wants a watch, _ average. we believe everybody wants a watch, everybody i average. we believe everybody i wants a watch, everybody dreams of a watch, and the more you can reach out and access that desire the more business we do. it is especially strong in the us right now, it is very strong

in the uk as well. this is the best luxury watch market in the world. so people love watchers, they love the fact that they last forever, they are family heirlooms, the routine value... crosstalk. do you still catch a younger audience, a younger consumer when it comes to watchers, because there are so many smart watches and smart devices, how much is that it and into your market? ., ~' ., much is that it and into your market? ., ~ ., ., much is that it and into your market?— much is that it and into your market? ., ~ ., ., ., ., , market? you know, not at all is the answer- _ market? you know, not at all is the answer. young _ market? you know, not at all is the answer. young people i market? you know, not at all is| the answer. young people really do appreciate watchers. i think they appreciate the fact they are environmentally friendly, there is great craftsmanship, great heritage about them, so they haven't changed. in terms of sustainability, _ they haven't changed. in terms of sustainability, we _ they haven't changed. in terms of sustainability, we were i of sustainability, we were talking about the fashion industry and to what extent it has to move, seriously, to get into a more green, environmentally friendly way of working, for watchers? aha,

environmentally friendly way of working, for watchers?- working, for watchers? a lot of aood working, for watchers? a lot of good things — working, for watchers? a lot of good things happening, - working, for watchers? a lot of good things happening, people using recycled steel, you will see later today, some of the models have recycled steel, a lot of recycled products getting used now in straps. a lot of the new factory developments are getting done with carbon neutrality objectives, so the industry really has the message overall, the importance of environment, it is very important to the consumer and obviously very important to our communities overall. so the industry is moving in the right direction with regards to that matter. it has been great to talk to you. thank you for being on the programme. hope you have a great time at watches and wonders. we will see you again soon. brian duffy, chief executive of watches of switzerland group. that is it from me for now. we do have a business page on our website which is updating all the time with the latest business stories, in terms of the news, business, and sport,

you are up—to—date. whatever you are up—to—date. whatever you are up to today i hope you enjoy and have a good day. i will see you soon. hello there. the weather has been turning colder, and on tuesday, it was certainly cold enough for snow in the far north of the uk. that was the wintry—looking scene for a weather watcher in shetland. those colder conditions continue to sink southwards behind this weather front, the front bringing some outbreaks of rain, but with some sleet and snow mixing in, especially over high ground. and to the north of that weather front, a very cold start to wednesday. particularly in northern scotland, a widespread frost. further snow showers giving some accumulations in places and the risk of ice, but there will be some spells of sunshine to start off wednesday, whereas southern scotland will start off cloudy. a bit of sleet and snow in places, some patchy rain to start off in northern ireland, some wet weather in northern england,

some snow mixing in up over the pennines, bit of rain into north wales and the north midlands. but to the south of that, a mainly dry start with some areas of low cloud, mist and fog, but equally some spells of sunshine. now, a band of cloud in the rain, sleet and snow will continue to push southwards, most of the snow over high ground, but we could see some to low levels. to the north of that, sunny spells and wintry showers. to the south, some spells of sunshine, but increasing amounts of cloud, the odd shower. still quite mild in the south at 12 degrees, but more widely, we're looking at top temperatures between four and eight degrees. it will feel cold, particularly as the wind starts to pick up. now, through wednesday night, this band of rain, sleet and snow continues to move southwards. could be some wintry weather, especially over the hills in the south, but possibly even to low levels. and behind that band of rain, sleet and snow, a very cold and frosty start to thursday morning. there will be some icy stretches here and there. thursday, a day of sunny spells and wintry showers, the showers tending to push westwards as the day wears on. a keen north or northeasterly breeze just adding to a cold feel. top temperatures for many of us between five and eight degrees. some spots in the west —

maybe glasgow, plymouth — getting up into double digits. now, as we head towards the weekend, as this area of high pressure sinks its way southwards, a subtle change. we lose the northerly winds. we pick up something of a westerly wind, bringing something just a little bit less cold. there won't be a heat wave, but temperatures will climb a little. a lot of dry weather, just one or two showers.

good morning, welcome to breakfast withjon kay and nina warhurst. 0ur headlines today. devastating failings in maternity services — a report into shrewsbury and telford nhs trust concludes 200 babies may have survived had they received better care. we're in shrewsbury this morning, ahead of the publishing of the biggest review of maternity services in nhs history. ukrainian president volodymyr zelensky calls for caution over russia's pledge to scale back fighting in parts of the country. here, ed sheeran and a host of other stars raise £12 million at a charity

concert for humanitarian efforts in ukraine.