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USD/RUB Holds Below 70.00, Despite Shut-off Risks at Sokhranivka Pipeline

RUSSIA
  • USD/RUB BGN trades -0.56% lower this morning, treading water just shy of the 70 handle. The cross moved sideways in yesterday’s session, broadly in line with choppy USD price action.
  • Concerns of a shut-off to gas flows via the Sokhranivka pipeline were an initial concern for revenues, however, it seems the 109.7mcm/day in flows can be re-routed via Sudzha (600km north).
  • Oil and gas prices have ticked higher this morning with brent (+2.31%) finding support at the $101.30 mark as it continues to trade within its recent range (97.18-115.76).
  • The cross is now pegged in a range between 70.806 & 67.999 awaiting a breakout to determine a more decisive near-term direction.
  • Reports suggest the Ukrainian counteroffensive is gaining traction near Kharkiv, while the battle for the Donbas is at somewhat of a stalemate.
  • Russian officials are also starting to speak of areas such as Kherson returning to Russia – Adding weigh to the expectations for referendums and annexations in Russian held territories in the future.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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