Russian Prime Minister Vladimir Putin raised the stakes in his gas conflict with Ukraine by slashing supplies to Europe, a measure that has left some EU states struggling to heat homes in sub-zero temperatures. What was Putin seeking to achieve by acting in this way? It’s clear to everybody that it is not a commercial dispute. Russia doesn't care what would be the price ($200, 250, 300 or even 450) because this time it has very clear and ambitious political goals: 1. To bring down the government of “orange” President Victor Yushchenko and Yulya Tymoshenko. This is a political revenge for Ukraine's Orange Revolution, Ukraine's plans to join NATO, its support for Georgia during the ... [ Read more ]

Increasing of the monetary, inflationary and political risks in Ukraine brought the Fitch rating agency to lower the prognosis of country rating from "stable" to "negative". Such decision is caused by the concern of further growth of foreign trade deficit on a background of the expected appreciation of gas upvalue and metal write down. Experts state that it was the Fitch’s expected step and it will result in increasing the cost of bringing in money for banks which an international agency rates. Yesterday the agency of Fitch Ratings changed a prognosis on the long-term ratings of Ukraine issuer default (RID) in foreign and national currency from "stable" to "negative". At the same time ... [ Read more ]