The Russia-Ukraine crisis
Much of the world’s oil and gas is produced in areas that have historically experienced instability, such as the Middle East and Russia. In this series, we briefly explain the recent crisis between Russia and Ukraine and how it could affect global energy markets.
What’s going on between Russia and Ukraine?
From a highly simplistic standpoint, Ukraine has long been in the sphere of Russia’s influence. However, it seemed that the country had begun to take steps to move it closer to the EU and Western powers. Demonstrations in the Ukrainian capital of Kiev against policies of pro-Russian President Viktor Yanukobych became violent and led to the President’s impeachment and ouster. Russia has reacted by taking control of the Crimean Peninsula by questionable means, which have made Western powers (primarily the U.S. and EU) uneasy. In Eastern Ukraine, where many inhabitants are Russian speakers, there have been sometimes violent pro-Russia demonstrations. Continued tension between Russia and Ukraine could affect energy markets.
Continue on to the following parts of this series to read further detail about the situation as well as how it could affect certain energy ETFs such as the Energy Select Sector SPDR (XLE), the Market Vectors Russia ETF (RSX), the iShares MSCI Russia Capped ETF (ERUS), the United States Brent Oil Fund (BNO), and names such as San Leon Energy (SLGYF).