European Commission Warns Growth At Risk of Russian Energy Tension

May 6, 2014 Share Print 0

Growing tensions with Russia could hit growth in Europe this year and next, warned the European Commission in its latest outlook.

“Should further rising tensions with Russia lead to major disruptions in oil and gas supplies with a sharp rise in prices, the negative impact on a number of Member states could be sizeable,” the Commission said.

Russia is facing off with the U.S. and Europe over the worsening situation in Ukraine. Western leaders accuse Russia of helping encourage protests and lawlessness in Eastern Ukraine — a claim which Russian officials have staunchly denied.

The U.S. and Europe have each slapped sanctions on many Russian companies and individuals. Meanwhile, Russia has warned that its natural gas exports to Europe could suffer as it considers cutting off gas to Ukraine — a key transit route for gas to Europe.

via CNN

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.