EU Has No Plans to Impose Preventative Sanctions, Current Account Surplus Set to Widen

LOCAL NEWS

• EU’s Borrell says it has no plans to impose preventative sanctions on Russia, but is ready to act in case of its hypothetical attack.
  • “to be prepared to act does not mean to act before it is needed”
• UK Defense Min says he has invited Russian counterpart Shoigu for talks in London to discuss mutual security concerns. Says the “current gap is wide but not unbridgeable. I still remain hopeful that diplomacy will prevail”
• A new plan to combat the "omicron" strain of coronavirus will be discussed at a meeting of the coordinating council to combat COVID-19 chaired by PM Mishustin today.
  • Authorities are not yet considering lockdowns, but restrictions are possible at the regional level in the event of an increase in hospitalizations
• Rosneft CEO proposes energy market reforms to curb the growth of electricity prices for industry, suggesting a reduction of payment for capacity for idle stations and the exclusion of possible price manipulation by generating companies.
  • Also, the introduction of tariffs for nuclear power plants, which now sell it at a price formed by thermal power units with higher fuel costs.
  • Energy Ministry says they are willing to improve the model, but do not think it currently allows for uncontrolled price increases

Data/Events:

• 0900GMT: Lavrov meets with German FM Baerbock, 1000GMT presser
• 1300GMT: 4Qp Current Account Balance exp at 44.3bn vs 36.9bn prior