Monday, March 3, 2014

Russian Markets Battered By The Crisis In Ukraine. Natural Gas Exports From Russia To Europe May Now Be At Risk


Markets Plunge On Ukraine Crisis; Russia’s Central Bank Intervenes -- Globe And Mail

Russian markets plunged Monday morning as investors reacted to the prospect of Western-led economic sanctions aimed at punishing president Vladimir Putin for Russian actions in Crimea.

The selloff prompted the Russian central bank to take aggressive action to try to stabilize the markets. As the ruble sank to new lows against the euro and the dollar, the bank raised interest rate by 150 basis points (1.5 percentage points), lifting it to 7 per cent.

Russia’s benchmark stock market index, the Micex, got battered by 13.5 per cent at one point by near panic selling. All of the big names on the index including Gazprom, the state-controlled natural gas company whose pipelines to Western Europe run through Ukraine, fell sharply. Gazprom was down in line with the market.

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More News On Russian Markets Battered By The Crisis In Ukraine

Gazprom says disruptions of gas supplies to Europe possible -- ITAR-Tass
European Gas Prices Surge as Ukraine Crisis Threatens Supply -- Bloomberg
Ukraine increases Russian gas imports, braces for price hike -- Reuters
Russia Gas Threat Shows Putin Using Pipes to Press Ukraine -- SFGate/Bloomberg
Shifting energy trends blunt Russia’s natural-gas weapon -- Washington Post
Ukraine's gas debt is 'huge,' Gazprom says -- UPI
Ukraine's debt for Russia gas about $2 bln - Energy Minister -- Russia Beyond The Headlines
Gazprom Mulls Cancelling Ukraine Gas Discount Over Debt -- RIA Novosti
Ukraine Crisis: Gazprom Eyes Gas Price Hike Over Lack of Ukrainian Payments -- International Business Times
PepsiCo to Gazprom Face Sales Threat in Ukraine Crisis -- Bloomberg Businessweek
Russia's Gas Can Blow Up Ukraine Tomorrow -- Huffington Post
Ukraine crisis: Why it matters to the world economy -- Mark Thompson and Gregory Wallace, CNN

My Comment: Ukraine's gas debt to Russia is huge .... and with no money I have trouble seeing how they can pay Gazpron for what is owned. As for the Russian stock markets .... the fear of limited sanctions is what is driving that market down. This should be worrisome for Putin .... the Russian economy has always been his Achilles heel .... if the economy goes down protests and dissatisfaction against him will only increase. The economy .... not international pressure .... is what may ultimately limit Russian President Putin's goals and objectives in Ukraine.

Update: Ruble Dives to Historic Low, Stocks Crash on Ukraine Fears -- RIA Novosti

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