With the Russian invasion of Ukraine who is still buying Russian Crude Oil and who stopped? Australia, Britain, Canada and the United States have imposed total bans on Russian oil purchases, The 27-member EU bloc is divided over whether to impose a ban that can affect about 27% of its imports and with oil prices soaring concern is for how to accommodate refineries that are landlocked and almost completely dependent on Russian crude supplies via pipelines. Russian Oil Fun Facts … Continue reading “Russian Crude Oil, Who Is Still Buying It and Who Stopped”
Credit rating slashed Russia’s credit rating Friday. S&P and Fitch lowering Russia’s rating to ‘junk’ status, Moody’s said it is putting it on review for a downgrade to junk. At the same time S&P and Fitch swiftly cut Ukraine on default worries. The International Monetary Fund is exploring all options to aid Ukraine with further financial support, said its head, Kristalina Georgieva. The Russian declaration of war on Ukraine has ravaged both countries finances and people with severe consequences for … Continue reading “Russia Credit Rating Slashed to Junk by S&P and Fitch, Moody’s Issues Junk Warning”
Tensions between Russia and Ukraine continued to soar after Russia’s parliament appealed to Putin to formally recognize the Russian-backed separatist quasi-states Donetsk and Luhansk People’s Republics independence, in the Donbas region in Ukraine. Such a move Germany’s Scholz says would be a one-sided breach of Minsk format. This would torpedo the peace process and sent the MOEX Russia Index dumped as much as 14% with Rosneft (-18.3%), VTB (-17.3%) and Sberbank (-16.9%) hit. The Rouble shed over 2% on Monday. … Continue reading “Russian Stocks & Rouble Freefall as Putin Recognizes Donbas Independence”
Turkey has seen prices rise and rates not seen for twenty years as the Turkish Lira collapse sending imported goods sky high. Turkey’s annual inflation rate stood at 36.1% in December, for the month consumer prices rose 13.58%. Staples such as transportation and food are rising at an even faster rate. The annual CPI was the highest since 37.0% in September of 2002, two months before President Erdogan’s AK Party first came to power. Soaring import prices pushed the December’s … Continue reading “Turkey’s Inflation Rate Surged to 36.1% in December as Lira Crashed”
Turkey is a great lesson on why Central Banks and Governments should be independent. Turkey’s currency, the lira collapse accelerated further after its central bank cut its main interest rate by 1%, from 15% to 14% on Thursday with concerted pressure from President Recep Tayyip Erdogan wanting rates cut to stimulate the economy. Meanwhile Turks can’t afford bare necessities as inflation runs rampant from the collapsed currency. Inflation in Turkey has climbed above 21.7% over the year. “The Committee decided … Continue reading “Turkey A Lesson in Why Central Banks Need to Be Independent as Lira Collapses Accelerates”
Natural gas futures surged in Europe after Germany’s energy regulator temporarily suspended certification of the Nord Stream 2 pipeline. The move followed the Swiss-based project creating a German subsidiary to own and operate the German section of the pipeline. The Bundesnetzagentur said Nord Stream 2, which was set to begin operations this year, failed to organize an operator recognized under German law, sending gas prices higher. “The subsidiary itself must meet the requirements of the Energy Industry Act for an … Continue reading “UK Gas Prices Jump 10% After Germany Suspends Nord Stream 2 Certification”
The European Union has postponed the next round of negotiations for a free trade agreement with Australia for a month. The move clearly is in retribution for the cancellation of the French $90 billion submarine contract.
Centre-left SPD and their candidate, Olaf Scholz, secured a narrow win in the German election which saw Angela Merkel’s centre-right CDU party and their candidate, Armin Laschet, plunge to a historic low. Parties will embark on “exploratory talks” to form a government, with a three-way coalition considered the most likely.
What comes to mind with the current European energy crisis is the unexpected consequences of decision making without thought of possible headwinds. The current crisis has been borne out of what could best be described as ignorant energy and environmental policies. Putting the cart before the horse the issue with populist kneejerk policy.