Gas for roubles. Will Europe comply?

News of the day, Tuesday, March 29

Oil prices have extended losses from yesterday as talks between Ukraine and Russia progress. The first talks in two weeks started in Istanbul this morning. After the invasion in Ukraine has started, the sanctions imposed on Russia have seriously jeopardized the oil supply, sending the crude prices to 14-year highs this month. The progression of peace talks may loosen the effect of sanctions and decrease the avoidance of Russian oil by the USA and EU. Brent crude futures were down 0.5%, and WTI crude futures decreased 0.6% today.

Russia said on Monday it will not supply gas for free, as Europe refused to pay for Russian energy sources in roubles. G7 ministers said that such a demand is a unilateral breach of the existing contracts with Russia. They underlined that the concluded contracts are valid and the companies should respect them, even if it doesn’t comply with Putin’s demand.

The price of Brent crude is $111.00, WTI — $107.00, GBP/USD — 1.3084, EUR/USD — 1.0994, and gold costs $1913.50 per ounce.