Washington’s involvement may also help mitigate political opposition in Europe, while giving the U.S. strategic visibility over future Russian energy flows, sources told Reuters.
The agreement, signed on April 30, establishes a joint investment fund between Kyiv and Washington and grants the U.S. special access to projects developing Ukraine's natural resources.
Ukraine is considering moving away from the U.S. dollar and closer to the euro as a benchmark for the hryvnia, National Bank Governor Andrii Pyshnyi told Reuters.
Oil pumping jacks at an oilfield near Sokolovka, Russia, on Nov. 20, 2020. (Andrey Rudakov/Bloomberg via Getty Images)
Oil prices remained near a one-week high on Feb. 19 as concerns over supply disruptions in Russia and the U.S. continued to drive the market. Traders are also closely watching developments on potential sanctions relief, as Washington attempts to broker a peace deal between Russia and Ukraine.
Brent crude settled at $76.04 per barrel, up 20 cents (0.3%), while U.S. West Texas Intermediate (WTI) crude closed at $72.25, gaining 40 cents (0.6%), according to Reuters. Both benchmarks reached their highest level since Feb. 11.
Market analysts are weighing several key factors affecting crude prices, including geopolitical risks in Russia, Iran, and OPEC's supply strategy.
Supply concerns were heightened after a Ukrainian drone attack on a Russian oil facility led to a 30-40% reduction in Caspian Pipeline Consortium (CPC) oil flows, which translates to a potential market supply loss of 380,000 barrels per day. Russian President Vladimir Putin claimed the attack might have been coordinated with Ukraine’s Western allies.
Meanwhile, U.S. President Donald Trump criticized President Volodymyr Zelensky as "a dictator," accusing him of refusing to have elections, and repeating false claims about the war in Ukraine.
Despite speculation about a U.S.-brokered agreement between Russia and Ukraine, analysts at Goldman Sachs believe that lifting sanctions on Russia is unlikely to significantly boost oil flows, according to Reuters. They argue that Russian crude output is currently limited by its OPEC+ production target of nine million barrels per day, rather than by Western sanctions, which impact where Russian oil is sold rather than total export volumes.
Olena Goncharova is the Head of North America desk at The Kyiv Independent, where she has previously worked as a development manager and Canadian correspondent. She first joined the Kyiv Post, Ukraine's oldest English-language newspaper, as a staff writer in January 2012 and became the newspaper’s Canadian correspondent in June 2018. She is based in Edmonton, Alberta. Olena has a master’s degree in publishing and editing from the Institute of Journalism in Taras Shevchenko National University in Kyiv. Olena was a 2016 Alfred Friendly Press Partners fellow who worked for the Pittsburgh Post-Gazette for six months. The program is administered by the University of Missouri School of Journalism in Columbia.
Martin Fornusek
