On the news of a cease-fire agreement in Ukraine, the ruble flexes up on the dollar and euro.
Talks ended successfully Thursday morning as the leaders of Germany, France, Ukraine and Russia finish 16 hours of discussions in Minsk, Belarus.
Announced on Thursday by Russian president Vladimir Putin, the cease-fire agreement is based on measures that were first promoted last September between representatives of Ukraine and separatist rebels.
Saturday 14 February at midnight is implementation hour, as Angela Merkel, chancellor of Germany and instigator of the talks, tweeted, ‘“Ceasefire from 00.00 hours 15th February, then withdrawal of heavy weapons. In this lies hope.”
After the annexation of Crimea to Russia came the surge last year from separatists in Ukraine to gain Russian patronization. 5,300 have died in the ensuing fight and sanctions on Russia from the U.S and Europe have crippled the ruble, though the crash of oil prices has also taken its toll on the oil-dependent state.
In the last few weeks, as the violence escalated in Ukraine, the U.S started to speak more about arming Ukraine in their fight to regain the region. The European Union was also looking to extend and add to existing sanctions. In the light of these political pressures, it became clear that a solution was needed fast.
More regional governance, the creation of a buffer zone, and reintegration of 400km of Ukraine’s border was agreed within the border and humanitarian resolutions.
The markets reacted by giving confidence to the ruble on the announcement, but this was after initial declines before the peace talks concluded.
Trade forex CFDs on STOCK.com with full training given to all clients