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EU Sees Agreement on Further Sanctions as Soon as Today

RUSSIA
  • Gazprom states that a solution has been found with Austrian regulators to allow for the resumption of gas supply to Italy, allowing for the return of gas transit to the continent via Austria.
  • EU’s Borrell sees the European Council reaching an agreement on proposals for new sanctions against Russia as soon as today. The comments follow a statement from the US Treasury yesterday claiming that an oil price cap on Russia is a matter of weeks away, rather than months.
  • September services PMI today rose to 51.1 from August’s 49.9. This was ahead of expectations and has helped boost composite PMI to 51.5 vs. Exp. 50.2.
  • According to a piece in Vedomosti, the Russian finance ministry may begin to borrow funds directly from markets via the repo mechanism – an extension of their use of the facility as they already use repo to free up budget funds on a temporary basis. The move would allow the ministry to cover ‘unforeseen’ situations with account balances, according to the report.
  • Final Q2 GDP data as well as weekly CPI are due at 1700BST/1200ET.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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