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Search resuls for: "Kyiv School of Economics"


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Evidence is piling up about the steady disintegration of Russia’s vital natural gas export industry since the country’s invasion of Ukraine. With this success behind them, European leaders are contemplating widening their attack to include imports of liquefied natural gas from Russia. Russian L.N.G. energy commissioner, has urged members of the bloc and European energy companies to stop buying Russian L.N.G. On the other hand, having largely gone cold turkey on Russian pipeline gas, European leaders may calculate that “going without Russian L.N.G.
I spent much of yesterday parsing through pages of data on where Russian oil is heading and how much buyers are paying for barrels. Today we're unpacking two less obvious observations about Russian oil. That said, researchers pointed out that most of the Western companies still facilitating Russian oil shipments don't actually abide by the $60-a-barrel price cap that the EU and G-7 imposed. Ships carrying Russian oil, according to Argus, indeed make a premium for doing what they do, but that premium has shrunk over the last month. In effect, the "sanctions premium" isn't what it was a month ago.
The Kyiv School of Economics found that the West's price caps have hit Russia's oil export revenue. In December, the G-7 and EU imposed a price cap of $60 a barrel on Russian crude, and in February they imposed additional price caps on a range of refined Russian fuels. To be sure, moderating global oil prices over recent months also contributed to lower export prices for Russia. In their view, that means price caps should be lowered further to ensure a "continued weakening" of Russian export earnings. The market for Russian crude has been fundamentally transformed since Vladimir Putin ordered the invasion of Ukraine.
Tankers carrying Russian oil command a "sanctions premium," but those margins have narrowed, Argus data shows. "Rates are likely to remain under pressure throughout April and into May as chartering is muted and looming OPEC+ cuts keep nibbling at shipowners' confidence." Argus data shared with Insider showed that the sanctions premium for Russian-origin cargoes from the Black Sea to the west coast of India narrowed by 50¢ per barrel month-on-month. Still, he added that the premium could hold for some time longer even in a weakening market, as sanctioned cargoes remain a valuable business. Tracking data from Kpler showed earlier this month that total Russian oil exports have now surpassed pre-war levels.
REUTERS/Lisi NiesnerBILOZERKA, Ukraine, March 1 (Reuters) - When Ukraine recaptured Kherson in November, Andrii Povod returned to find his grain farm in ruins. The institute's Baliuk said the war damage could lead to an alarming loss of fertility. ECHOES OF WORLD WAR ONEA working group of soil scientists created by the Ukrainian government estimates it would cost $15 billion to remove all mines and restore Ukraine's soil to its former health. If studies of damage to land during World War One are anything to go by, some areas will never recover. To be sure, World War One lasted four years, and the war in Ukraine only one year so far, but lead remains a key component of many modern munitions, Rintoul-Hynes said.
Ukraine's economy stabilizes after shock of war
  + stars: | 2023-02-27 | by ( Olena Harmash | ) www.reuters.com   time to read: +9 min
The economy shrank by a third last year, the largest fall since Ukraine's independence from the Soviet Union in 1991. ArcelorMittal Kryvyi Rih, Ukraine's largest steel mill, said its production was currently at about 25% of pre-war levels amid electricity blackouts. Ukraine's central bank predicts GDP will grow by 0.3% this year, while the economy ministry forecasts 3.2% growth. The agreement saved Ukraine's agriculture, which accounted for about 12% of GDP and some 40% of overall exports before the war. The steel sector, a key pillar of the economy, is among the hardest hit.
People help to clean up debris at a bus station damaged after a shelling, amid Russia's attack on Ukraine, in Kherson, Ukraine February 21, 2023. Lisi Niesner | ReutersOne year since the start of Russia's full-scale invasion, Ukraine's economy and infrastructure are in tatters, with the government and its allies planning the largest rebuilding effort since World War II. The International Monetary Fund estimates that the Ukrainian economy contracted by 30%, a less severe decline than previously projected. IMF Managing Director Kristalina Georgieva visited Ukraine this week, meeting with President Volodymyr Zelenskyy and NBU Governor Andriy Pyshnyy, among others. It is difficult to predict the size of this debt reduction as it depends on the state of the Ukrainian economy at the time the restructuring is agreed," Nasser said.
[1/3] A view of the destroyed village of Moshchun amid Russia's invasion, Kyiv region, Ukraine May 19, 2022. But before they can even begin to be answered, Kyiv is seeking billions just to ride out this year. After a 30% contraction in its economy in 2022, Ukraine will need $38 billion by the end of year to cover its budget deficit alone. "But to me, one of the surprises has been how the private sector has been so resilient." "Supporting Ukraine now is critical to avoid a devastating humanitarian crisis and to strengthen Ukraine for what it's doing for the rest of the world."
Trying to bankrupt Russia could backfire
  + stars: | 2023-01-30 | by ( Hugo Dixon | ) www.reuters.com   time to read: +7 min
Reuters GraphicsIn the initial aftermath of the invasion, Western allies mostly issued threats to stop buying Russian oil and gas. Russia could push up the global price by carrying out threats to reduce its oil exports. But if the global price rose enough, Russia might still earn similar amounts at lower volumes. But the global gas price would rise, and Russia could direct the liquefied natural gas it currently sells to Europe to other regions. With Kyiv benefiting from military support and the gains from tighter sanctions uncertain, trying to bankrupt Russia is not worth the risk.
Russia raised more than $13 billion in a day as the cost of Putin's war in Ukraine keeps mounting. Britain's Defence Intelligence said it was the largest amount Moscow had raised in a single day. Russia's defence spending for 2023 is estimated to be 40% higher than previously forecast. The true cost of Russia's invasion of Ukraine remains unclear. The government estimated in the summer that it needed $5 billion a month to maintain essential services, and some $750 billion for reconstruction.
US aid to Ukraine could be in jeopardy if Republicans win the House in the midterms. Several GOP lawmakers and candidates have signaled they would support reducing or cutting off Ukraine aid. In April, 10 House Republicans voted against a bill allowing the Biden administration to more easily lend military equipment to Ukraine. The following month, 57 House Republicans voted "no" on a nearly $40 billion aid package for Ukraine. Some GOP opposition to continuing aid to Ukraine is tied to Trump's "America First" policy vis-a-vis foreign affairs.
Russia’s invasion causes damage across Ukraine
  + stars: | 2022-09-27 | by ( Michael Ovaska | ) www.reuters.com   time to read: +3 min
Graphics Russia’s invasion causes damage across UkraineRussia's invasion of Ukraine has caused widespread destruction with direct damages of over $97 billion as of June 1 according to a report by the World Bank, the Ukrainian government and the European Commission. Note: As of June 1, 2022 Sources: World Bank, the government of Ukraine and the European CommissionThe report — the first comprehensive damage assessment of the war's impact on Ukraine — provided preliminary figures that will rise as the war continues. Regions like Kyiv and Chernihiv retaken by Ukrainian troops and returned to government control accounted for 22% of damages. Map of Ukraine showing regions of Ukraine and proportional circles for the cost of damage by region. RebuildUA, a project that analyzes the destroyed infrastructure of Ukraine, used drone footage and satellite images to determine 23% of Irpin buildings were damaged.
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