the CAC 40 fall of more than 2% at mid-session, due to the noise of boots on the side of Ukraine and fears related to the Fed. Many heavyweights of the Parisian flagship index (Capgemini, Saint-Gobain, Stellantis, etc.) show very significant price drops. The United States dramatized the situation in Ukraine with the announcement of a Russian invasion “at any time” and NATO announced a reinforcement of its defenses in the East, denounced by Moscow as a desire “to exacerbate tensions” with “hysterical” information.
Surprised, the EU countries were awaiting an explanation from US Secretary of State Antony Blinken on Monday on the decision to order the evacuation of the families of American diplomats in this country, a reminder criticized by Kiev. London also announced the withdrawal of some staff from its embassy in Kiev and France advised to postpone non-essential travel to Ukraine. In this tense climate, NATO has announced that it will place forces on standby and send ships and combat aircraft to strengthen its defenses in Eastern Europe. The Alliance has a rapid reaction force of 40,000 soldiers currently under French command.
“Tensions are exacerbated by the announcements and concrete actions of the United States and NATO”, lamented the spokesman of the Kremlin, Dmitry Peskov, denouncing “hysteria” in Europe on a supposed imminent Russian invasion of the Ukraine. He judged “very high” the risk of an offensive by Ukrainian troops against pro-Russian separatists. The head of EU diplomacy, Josep Borrell, said a week ago that he feared a “de facto integration” of these regions with Russia.
Antony Blinken is due to speak by videoconference during a meeting of the Ministers of Foreign Affairs of the Twenty-Seven. “He will explain to us the reasons for this announcement. We are not going to do the same, because we don’t know the specific reasons,” said Josep Borrell. Washington’s decision was deemed “premature” and “excessive” by the Ukrainian authorities. “I don’t think we should dramatize insofar as the negotiations continue and they continue,” said Josep Borrell. “We must not put ourselves in the logic of a war. We must avoid war,” said the dean of EU foreign ministers, the Luxembourger Jean Asselborn.
Antony Blinken is to inform EU members of the “frank talks” he held on Friday with his Russian counterpart Sergei Lavrov. Russians and Americans have agreed on a new meeting, and Antony Blinken has pledged to “put ideas on paper” in response to Moscow’s demands for security in Europe.
Russia demands a written commitment on the non-enlargement of NATO to Ukraine and Georgia and demands a withdrawal of the forces and armaments of the Atlantic Alliance from the countries of Eastern Europe which have joined the NATO after 1997, notably from Romania and Bulgaria. Unacceptable demands for Westerners. The security situation is considered worrying. Moscow says it has no intention of intervening in Ukraine, but supports the claims of pro-Russian separatists from the self-proclaimed republics of Lugansk and Donetsk in the Donbass (east) and has massed more than 100,000 soldiers, tanks and artillery on the borders with Ukraine.
“If Russia invades Ukraine again, we will adopt unprecedented sanctions and Russia will be completely isolated,” Danish Minister Jeppe Kofod warned on Monday. A series of options have been prepared by the Commission. The reduction of gas and oil purchases, respectively 43% and 20% of the EU supply, and which largely finance the Russian budget, is on the table, a European source told AFP.
The EU is also discussing financial support of 1.2 billion euros to help Ukraine. “The sanctions process is underway to be sure that everything will be ready if necessary,” assured Josep Borrell. “Nothing concrete will be approved today,” he said, however.
The reduction in energy purchases divides the EU. Hungarian Prime Minister Viktor Orban is due to travel to Moscow in February to discuss gas supplies to his country in particular. Germany has also withdrawn a proposal to cut Moscow off from the SWIFT global payment system, according to a European diplomatic source. And Berlin refuses to deliver weapons to Kiev, unlike the United States which sent 80 tons of armaments, announced the Ukrainian Minister of Defense Oleksii Reznikov. Chancellor Olaf Scholz on Sunday called for “wisdom” in considering possible sanctions and the “consequences” for Germany.
>> Buy and sell your investments (stocks, cryptocurrencies, gold, etc.) at the right time thanks to Momentum, Capital’s newsletter on technical analysis. And right now, with the promo code CAPITAL30J, take advantage of a free trial month.
–
