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2014-07-21 18:25:00

UKRAINE IN THE WAR

UKRAINE IN THE WAR

Ukraine reacted to the Malaysian Airlines Boeing 777 crash in the Donetsk Region saying that the country is getting ready for any eventualities.

"We are in war. And I will give appropriate instructions to prepare the national economy for the work in conditions of mobilization, protection of people," Prime Minister Arseniy Yatsenyuk commented on Friday, addressing the rebels as criminals "supported and financed by Russia."

After obtaining some support from the United States and Europe, Kiev is now asking for more support and it is also preparing its own crusade.

"We know about the plans of bandits led by Russia, on the further destabilization of the situation and sabotage on the territory of Ukraine. So it will be given appropriate instructions so that the whole country will be in a superlative degree of readiness," Yatsenyuk added.

On the other hand, Germany's Angela Merkel is waiting on more evidence before imposing new sanctions. Russia's Vladimir Putin stood against fast conclusions, opening investigation on the crush.

'I gave corresponding instructions to military departments to provide all necessary assistance in investigating this crime. And I am also asking the Government of the Russian Federation to use our civilian departments as much as it can to do everything to thoroughly investigate this event. We will do everything – everything that we can, at least – to ensure that an objective understanding of what happened becomes available to the Russian public, to the public in Ukraine and throughout the world. These are absolutely unacceptable things and nobody has the right to pass them by without making corresponding conclusions and ensuring that we all have objective information about what happened,' Putin said on Friday.

IMPLICATIONS FOR THE GAS INDUSTRY

Given the current instability, operations in Eastern Ukraine are likely to be mothballed for some time. UK-based JKX and Canada-headquartered Serinus Energy hold licences in Eastern Ukraine. Major companies have already been progressively stepping out of the area. The crash will have consequences for investments in the area.

At the same time, the sanctions on Rosneft, Gazprombank and Novatek are likely to have marginal effects. Both Novatek and Rosneft said that they will continue their current projects.

'The company will continue to work on the existing projects and agreements. Rosneft financial position is robust. Rosneft's operating cash flows allow us to carry on with our current projects. The company's financial position also allows us to deliver on the key indicators of our strategy and dividend policy,' reads a note released by Rosneft on Friday, following a similar statement by Novatek on Thursday.

naturalgaseurope.com

Tags: BOEING, UKRAINE, EUROPE, RUSSIA, GERMANY, ROSNEFT, NOVATEK

Chronicle:

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