Russian energy giant Gazprom confirmed yesterday that Ukraine has at long last settled a debt of nearly $2bn USD. The Ukrainian state energy firm Naftogaz has similarly published that it transferred a sum totaling $1.65bn USD to Gazprom accounts in Moscow. The payment comes as the second of two commiserate payments made to Gazprom over…
After Putin’s speech yesterday, the Russian ruble’s precipitous decline has stabilized somewhat. The President of Russia tacitly endorsed the central bank’s policy of interest rate inflation and kept outlook relatively focused on the currency crisis rather than declining government revenues and sanctions. The currency is holding steady right now at 61 rubles on the dollar,…
Ukrainian President Petro Poroshenko praised the first night of successful cease fire between the Ukrainian military and separatist forces operating out of eastern Ukraine. The statements made by Ukrainian president and former chocolate mogul are significant mainly due to the timing of the cease fire. Circumstances would suggest that the timing of the cease fire…
Following an unsuccessful attempt to prop up the economy by means of an interest increase less than one week ago, the Russian Central Bank again moved to prop up the plummeting Russian ruble by raising the interest rate to 17%. The hike in interest rates coincided with value drops in the Russian ruble not seen…
On Saturday, the US Congress unanimously approved another round of economic sanctions against Russia in what is now the fourth round of sanctions in six months. The law was passed as the Ukraine Freedom Support Act – and is now heading to President Obama for signature. A meeting yesterday between US Secretary of State John…
Russia’s central bank stepped up its efforts to ward off rising inflation by raising the national interest rate to 10.5%. Inflation in the country has risen slowly but steadily as the economy worsens as a result of falling oil prices and economic sanctions that impact its defense and energy sectors. The move constitutes the second…
Yesterday, Russia wrote off almost $865 million worth of debt owed by Uzbekistan after President Vladimir Putin visited the country for bilateral talks with Islam Karimov. Uzbekistan’s new debt will be just $25 million, an odd move for a country strapped for revenues. Tashkent appears to be more amenable to considerations to create a free-trade…
After a pre-payment of $378 million to Gazprom, gas will flow into Ukraine once again after Russia cut all gas deliveries to Ukraine in June over a pricing and debt dispute. Relations on this issue were overshadowed by the civil war that broke out, and Kiev, short on money as it is, had to borrow…
Plans to officially sign documents that would welcome Kyrgyzstan back into the tight embrace of its former Soviet countries are set to be signed on December 23, when Prime Minister Joomart Otorbayev will officially join the Customs Union, which will be renamed starting next year as the Eurasian Economic Union, comprising Kazakhstan, Belarus, and Russia.…
Russian President Vladimir Putin announced that Moscow will abandon the South Stream pipeline project. The South Stream project would have consisted of a submarine pipeline running under the Black Sea and into Central Europe. The project quickly lost momentum as relations between Russia and the European Union soured and the EU posed sanctions on the…
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