CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Ukraine to raise gas prices

Article By: ,  Financial Analyst
March 27, 2014 9:15 AM

Gas prices are to rise in Ukraine as a result of the ongoing fallout following Russian president Vladimir Putin's decision to move troops into the disputed Crimea region.

The interim Ukrainian government, which was put in place when the previous administration was forced out following widespread protests in the Ukrainian capital Kiev, announced the news.

Ukrainians have been buying gas at heavily subsidised rates as a result of the nation's close links with Russia, but the nation is now trying to forge its own path and become part of Europe.

Yury Kolbushkin, budget and planning director at Naftogaz, which is the country's state energy company, revealed that as well as gas prices rising for the public, costs for district heating companies would also rise by 40 per cent at the start of July.

Ukraine is committing to increasing its gas prices as part of an attempt to convince the International Monetary Fund to give it an aid package, a step that could improve Ukraine's eventual chances of becoming a member of the European Union.

Bailout deal

IMF negotiators are still in Ukraine as talks over a package of measures worth billions of dollars – which will be used to cover gaps in the budget needed to pay foreign loan repayments – as discussions continue to be thrashed out.

Ukraine is also on alert to the possibility Russia may try to annex off even more of the former Soviet Union region, after its successful capture of the Crimea area. After Mr Putin moved troops into Crimea earlier in the year, MPs in the area voted in favour of it rejoining Russia.

A large proportion of Crimean residents identify themselves as being Russian and polls showed an overwhelming level of support for joining Russia and leaving Ukraine.

Investors around the world have been waiting to see what impact Mr Putin's tactics will have on the price of various commodities. As Russia controls much of the planet's gas supply, it is likely the cost of this fuel will be going up in the coming months.

Find out about commodities trading and learn CFD strategies at City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024