President Vladimir Putin has put Russia's nuclear forces on high alert in what he says is in response to Western leaders stepping up sanctions over Moscow’s invasion of Ukraine.

Putin’s threat drew ire from many corners: A senior US defense official said the “escalatory” step risked a dangerous miscalculation, while declining to say whether the US had adjusted the position of its nuclear readiness in response. Nato also condemned the move, while Canada and Poland moved to request an emergency meeting of the UN’s atomic energy agency on Wednesday on Ukraine’s behalf. Meanwhile, Belarus yesterday voted in a referendum to renounce its non-nuclear status, as Russia’s friendly neighbor throws its weight behind Putin's troops.

Is Moscow seriously considering the nuclear option? Probably not — but we just don’t know. Analysts are split on whether Putin would risk an all-out nuclear conflict, though most agree that the threat alone could push the Russian president toward pariah status on the international stage — making his moves even more difficult to predict or control.

Kyiv and Moscow agree to hold talks: Negotiations “without preconditions” are set to be held at the Belarusian-Ukrainian border, Ukrainian President Volodymyr Zelensky’s office announced, while Reuters reported Russian state news agency TASS as saying that talks would start this morning. The Ukrainian president is "skeptical" talks with Russia would lead to a ceasefire, but is willing to give it a shot if there’s a chance it could end the war.

Also happening today: the UN Security Council will hold a rare emergency special session of the 193-member General Assembly on the invasion.

The West is throwing all its support behind Ukraine: As fighting enters its fifth day, Reuters is characterizing Western powers’ “political, strategic, economic and corporate response” as “unprecedented in its extent and coordination.” The EU is planning to send weapons to a nation at war for the first time in its history, with a source telling Reuters the bloc could send arms worth EUR 450 mn to Ukraine. The EU’s top diplomat Josef Borrel told a press conference yesterday that the aid would include fighter jets. Meanwhile, you can keep tabs on the list of sanctions against Moscow — which the EU is discussing expanding — with this handy rundown from the Financial Times. The EU has also closed its airspace to every Russian plane, including oligarchs’ private jets.

Energy sanctions could also be on the table, White House Press Secretary Jen Psaki said. Western policymakers have mostly left Russia’s energy sector out of the equation so far, mainly to protect their own supply, the Wall Street Journal points out. Russia provides around 40% of Europe’s natural gas.

British oil giant BP is offloading its nearly 20% ownership of Russian-state owned oil company Rosneft, ending its three-decade long operations in a move that could result in losses of up to USD 25 bn, the company said yesterday. Norway’s USD 1.3 tn oil fund is also letting go of its Russian investments.

Russian exports will face severe disruptions: Oil and commodities traders told Reuters that the country’s flows to the West will likely be disrupted, if not totally halted, for weeks until there is clarity on exemptions. Exports to Asia, especially China, will likely continue since both countries have been developing alternatives to the Swift payment system, from which Russia has been given the boot. It remains unclear what will happen to exports to MENA, with dozens of countries across the region, including Egypt, relying heavily on Russia’s supplies of wheat.

Expect pain for the RUB when markets open this morning. Russia’s currency will likely crash by c. 25% as it trades for the first time since sanctions against Russian banks and the Swift ban were introduced, according to the Guardian.

More signs sanctions are having the desired effect: Two Russian billionaires — one of whom has been slapped with targeted sanctions — have appealed for an end to the conflict.

More than 360k people have fled Ukraine so far, according to the UN. Ukraine’s interior ministry yesterday put the death toll at 352 Ukrainian citizens, including 14 children, while some 1.7k have been wounded.

An Egyptian man is among the wounded and is being treated in a Kharkiv hospital, according to a Foreign Ministry statement.

Meanwhile, the US called on its citizens to leave Russia while they still can, as increasing numbers of commercial flights from the country are canceled.