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18 Mar 2014
Flash: Putin paves way for Annexation of Crimea - Danske Bank
FXStreet (Barcelona) - Jens Nærvig Pedersen, Analyst at Danske Bank notes that the political conflict over Crimea remains tense following the result of the referendum on Sunday.
Key Quotes
“Yesterday Russian President Vladimir Putin signed a decree recognising Crimea as a sovereign state. This could pave the way for a Russian annexation of Crimea. The EU and the US have declared the referendum illegal and have imposed sanctions, including an asset freeze and travel restrictions for a number of officials from Ukraine and Russia.”
“In the market there was a sense of relief on Monday. Stock markets in both Europe and the US climbed higher and the gold price inched lower from a six-month high.”
“The energy and the grains markets, which have indirectly been dragged into the conflict due to Russia’s and Ukraine’s dominant positions in the two, sold off as worries over potential supply disruptions eased. It will likely take a significant deterioration of the situation before we will see spill-over to the global economy, e.g. via trade restrictions.”
Key Quotes
“Yesterday Russian President Vladimir Putin signed a decree recognising Crimea as a sovereign state. This could pave the way for a Russian annexation of Crimea. The EU and the US have declared the referendum illegal and have imposed sanctions, including an asset freeze and travel restrictions for a number of officials from Ukraine and Russia.”
“In the market there was a sense of relief on Monday. Stock markets in both Europe and the US climbed higher and the gold price inched lower from a six-month high.”
“The energy and the grains markets, which have indirectly been dragged into the conflict due to Russia’s and Ukraine’s dominant positions in the two, sold off as worries over potential supply disruptions eased. It will likely take a significant deterioration of the situation before we will see spill-over to the global economy, e.g. via trade restrictions.”