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3 Mar 2014
EU officials to meet on Ukraine, markets fall amid tensions
FXStreet (Łódź) - European Commission President José Manuel Barroso said on Monday that an emergency EU summit on aid for Ukraine would be held shortly. He assured that a rescue plan was already being devised in cooperation with the International Monetary Fund, whose mission is due to arrive in Kiev today. According to estimates Ukraine would need an approximately 35 billion dollar bailout for the next two years.
German Chancellor Angela Merkel expressed her extreme concern with the developments in Ukraine and stressed that it was not late to resolve the situation through political means. French foreign minister Laurent Fabius suggested that direct diplomatic talks should be held with Russia.
Meanwhile, the events in Ukraine are already having an impact on global markets, as Jana Foley, Senior Currency Strategist at Rabobank points out: Even though Europe has significant gas inventories after a warm winter, gas futures are priced higher this morning on concerns about the impact on Russian supplies to Europe. Brent oil has also rallied and grains are also feeling an impact. This morning corn prices are reported to be at their highest levels since September while wheat has pushed back to August levels.”
The instability in Ukraine caused the markets to fall on Monday, while the Russian ruble hit another record low of 36.4 against the dollar and dropped below 50 to the euro.
German Chancellor Angela Merkel expressed her extreme concern with the developments in Ukraine and stressed that it was not late to resolve the situation through political means. French foreign minister Laurent Fabius suggested that direct diplomatic talks should be held with Russia.
Meanwhile, the events in Ukraine are already having an impact on global markets, as Jana Foley, Senior Currency Strategist at Rabobank points out: Even though Europe has significant gas inventories after a warm winter, gas futures are priced higher this morning on concerns about the impact on Russian supplies to Europe. Brent oil has also rallied and grains are also feeling an impact. This morning corn prices are reported to be at their highest levels since September while wheat has pushed back to August levels.”
The instability in Ukraine caused the markets to fall on Monday, while the Russian ruble hit another record low of 36.4 against the dollar and dropped below 50 to the euro.