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Oil prices jump after recognition of Lugansk and Donetsk

  • By Al Mayadeen Net
  • Source: Agencies
  • 22 Feb 2022 09:29
2 Min Read

As Russia recognizes the two eastern states, oil prices witness the immediate effects.

  • x
  • Pumpjacks at the Daqing oil field in Heilongjiang province, China December 7, 2018 | Reuters
    Pumpjacks at the Daqing oil field in Heilongjiang province, China December 7, 2018. (Reuters)

After Russia's recognition of the republics of Donetsk and Lugansk in eastern Ukraine yesterday, oil prices jumped more than $2 on Tuesday, hitting a new record in seven years. 

US and European officials condemned the Russian move, but a US official said that the Russian military action did not yet constitute an "invasion that could lead to the imposition of wide-ranging sanctions."

Brent crude futures rose $2.10, or 2.2 percent, to $97.49 a barrel, after increasing by 2 percent yesterday.  Meanwhile, contracts increased earlier today to $97.66, which constitutes the highest level since September 2014.

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The recognition 

Tensions are soaring between Russia and Ukraine over the Donbass region and Moscow's latest statements about intending to sign a decree recognizing the independence of the Lugansk People's Republic (LPR) and the Donetsk People's Republic (DPR). 

Russia sees that Ukraine is violating the Minsk agreements by not holding dialogue with the leaders of the two self-proclaimed republics and launching offensives against them. Moscow had several times urged Kiev to comply with the accord it signed in 2014.

In light of the latest rounds of tensions that followed Russian President Vladimir Putin's declaration that Moscow intended to recognize the independence of the DPR and LPR, Vladimir Putin addressed Russia in a televised speech.

The Russian leader began his speech by highlighting to Ukraine and the world that "Ukraine for Russia is not just a neighboring country, but part of its history; our comrades and relatives."

Putin reflected on the history and formation of Ukraine, recalling the times of the Soviet Union, saying, "Historically, Stalin annexed parts of Poland and Romania to Ukraine, as well as Crimea. The Ukrainian state was created by communist Russia by rejecting part of Russia's historical territories. No one asked the people anything."

  • Lugansk
  • Donetsk
  • Russia
  • Brent crude oil

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