Subject: Ukraine and Russia are Teetering Across A Tight Rope
From: "Brooke Sarkaria at Trusted Insight" <[email-masked]>
To: "Hunter" <[email-masked]>
Date: Mon, 10 Mar 2014 18:05:39 +0000

Repercussions for Russia and Ukraine
------------------------------------------------------------
http://us2.campaign-archive1.com/?u=77a3cd097df7557022fbc4906&id=fb34c17f60&e=563f3285d7

Ukraine

Kiev cannot pay their energy bill, Russia has moved in on Crimea, and Ukrainian society is in utter disarray.

What does this mean for global connectability?

First you need the facts…

Oil:
* Russia is main supplier of Crude Oil to the EU via the Crimean Peninsula
* The price of Crude Oil climbed 2.3% because of this crisis

Wheat:
* Ukraine is one of the main producers (https://www.thetrustedinsight.com/news/show_news/6076/)  of wheat
* Sixth largest exporter of wheat in the world but not as serious a concern as Natural Gas or Oil.
* Wheat prices are up 6.8%

Natural Gas:
* Ukraine owes Gazprom (https://www.thetrustedinsight.com/news/show_news/6186/)  (Russian operated natural gas supplier) $1.89 billion for gas and have not paid their debts yet.  If cut off, could seriously hurt supplies to the rest of the European Union who rely on Natural Gas from Russia via pipes in Ukraine
* 15% of the Natural Gas from Russia goes through Ukraine to the EU
* With the new intermediary presidency, offers for a gas discount and bailout to Ukraine may be rescinded from Putin

What’s on the table (https://www.thetrustedinsight.com/news/show_news/6187/) ?

The IMF is contemplating a $12 Billion USD bailout over the next 3 years. The EU has planned a €11Billion over the next six years.  The European Bank for Reconstruction and Development has pledged €5 billion in this package.  The European Investment Bank promised €3 billion contingent upon signing with the IMF.

Aside from development finance institutions and government bailouts, private investments could potentially profit big.

Why would you invest or not invest in Ukraine? Too risky?  Too Economically and Politically unstable?  Community Chaos?

Russia

Russian acquisition of Crimea is key for their expansion and control of a major port for exports of real assets.  Is this worth the financial mess?
* The six most traded US-Russia Equities dropped 6%
* Putin has paid $10 billion (http://www.forbes.com/sites/gregsatell/2014/03/04/5-important-facts-that-the-western-press-is-getting-terribly-wrong-in-ukraine/)  to prop-up the ruble.
* The MICEX Index fell by 11% overall.
* Money aside, Russia is facing sanctions from the two most powerful economies in the world, the US and the EU.

Whats next for political, economical, and societal repercussions from the Ukrainian-Russian crisis?

============================================================
Copyright © 2014 Trusted Insight, All rights reserved.
 Invitation to apply with Trusted Insight
Our mailing address is:
Trusted Insight
336 W. 37th Street
Suite 1160
New York, NY 10018
USA

** follow on Twitter (https://www.twitter.com/TINewsletters/

)
** friend on Facebook (#

)
** forward to a friend (http://us2.forward-to-friend.com/forward?u=77a3cd097df7557022fbc4906&id=fb34c17f60&e=563f3285d7)
** unsubscribe from this list (http://thetrustedinsight.us2.list-manage.com/unsubscribe?u=77a3cd097df7557022fbc4906&id=cb5b02aee3&e=563f3285d7&c=fb34c17f60)
** update subscription preferences (http://thetrustedinsight.us2.list-manage1.com/profile?u=77a3cd097df7557022fbc4906&id=cb5b02aee3&e=563f3285d7