How Separatists in Donetsk Threaten Japan’s Energy Security

Europe is not the only country in the world to feel torn between enforcing sanctions against Russia’s aggressive actions in Eastern Ukraine and preserving its own energy security. Japan, too, has had a difficult time reconciling its strategic interests in the West and maintaining a lucrative relationship with Moscow. Unfortunately, repeated calls for sanctions from […]

If Ukraine Crisis Drags On, Russian Economy May Falter

By Andy Tully: The United States is considering sanctions against Russia’s energy industry in its effort to rein in Moscow’s evident designs on Ukraine. But analysts say simply persuading Western countries to boycott Russian oil and gas altogether wouldn’t necessarily work because of Europe’s reliance on Russian gas. According to Robin West of the Center […]

Increased Oil Production Offsets Effects of Geopolitical Tensions

By Nick Cunningham: Oil prices briefly hit a three week high this week as geopolitical tension and strong demand tighten oil markets. Saudi Arabia’s Oil Minister Ali al-Naimi said on May 12 that his country would make up for any shortfall that may result from the conflict in Ukraine. After pro-Russian eastern separatists held a referendum last weekend and […]

Russian Contagion, Geopolitical Risk and Markets

Yesterday, I published my Global Economics Monthly. I argue that further economic sanctions against Russia would have significant global economic effects because of the Russia’s connectedness to energy and financial markets. Why then, are markets apparently so sanguine? Is it because investors, by and large, expect de-escalation? Is it a view that Russia does not matter […]

Russia Claims Ukraine’s Black Sea Oil And Gas Bounty

Russia’s annexation of Crimea has totally upended Kiev’s plans for Black Sea and Sea of Azov offshore oil and natural gas production. Before the peninsula’s March 16 independence referendum, followed two days later by Russian annexation, Ukraine’s state-owned Chornomornaftogaz (“Chernomorneftegaz” in Russian) owned 17 hydrocarbon fields, including 11 natural gas fields, four gas condensate fields, and two […]

U.S. Asks Business Leaders to Boycott Russian Meeting

The White House is discouraging business leaders from attending an economic summit in Russia later this month. The St. Petersburg International Economic Forum runs from May 22-24, and U.S. government officials are hoping to further isolate the Kremlin for its aggressive actions in Ukraine by keeping investors and capital away from Russia. According to several reports, White […]

Russian Pressure Has Slovakia Hesitating to Help Ukraine

In late April, Slovakia signed an agreement with Ukraine to reverse the flow of natural gas, allowing Ukraine to receive gas shipments in the event that Russia decides to cut off supplies. The deal could eventually open up an annual 10 billion cubic meters of natural gas capacity. About 40 percent of Europe’s gas from Russia flows through Slovakia, […]