in #forex3 years ago

In recent weeks, the world's eyes - especially from the financial sector - have been directed to the tiny nation. The political crisis that occurred until the end of the impeachment (former) president Viktor Yanukovych turned out to have an impact on global economic markets.
Ukraine is one of the small countries in the Southeast Europe region which is a "splinter" of the former Soviet Union. Orange Revolution that occurred in the period November 2004-January 2005 caused Russia to really lose its influence in Ukraine. But since the reign of Victor Yanukovych is pro-Russian, then the Red Bear was again getting his influence. One proof that the pro-Russian Yanukovych is his decision to cancel cooperation with the EU and turn to Russia who lent $ 15 billion.

Ukraine actually has long been a "seizure" between Russia and the European Union. Later, the super-power of the United States was later intervened, especially when political tensions and security increased.

For Russia itself, Ukraine is very important from an economic point of view. The pipeline of oil and gas supply from Russia to meet Western demand turns through Ukraine. The line is also utilized by Ukraine to meet the fuel needs of their factories. In addition, Russian investment is also quite a lot in Ukraine. Starting from the metal casting, oil and gas, telecommunications to investment services.

Hence, politically and economically, it is quite reasonable why Russia does not want Ukraine to be ruled by an anti-Russian leader. The fall of Yanukovych will certainly threaten the Russian influence in Ukraine. That is why this is why Vladimir Putin, the Russian president, feels the need to intervene by sending his troops to the Crimea, an area bordering Russia, and even possessing some vital objects there. Nonetheless, Russia through its representatives at the UN said that troop deliveries are based on the request of the Ukrainian government itself.

The EU has actually been trying to "take heart" of Ukraine so as not to be too dependent on Russian gas. Among other things is to offer assistance to Ukraine to improve infrastructure and to improve gas processing technology so as not to depend on Russia. As is known, Europe is actually more dependent on Russia than the United States. Most of Europe's oil and gas supplies are supplied by Russia.

Well, if the Ukrainian conflict affected the oil supply, it is likely that world oil prices will rise significantly. Yet we know that the issue of rising oil prices will certainly affect everywhere, especially manufacturing, especially, of course, the EU region. And we know, too, that the European economy, especially the eurozone, is being unwell in recent years.

Besides Europe, it turns out China also considers Ukraine as a "safe source" to meet their needs for energy and foodstuffs. China has lent billions of dollars to Ukraine to upgrade agricultural irrigation and coal gas production. The prolonged conflict is feared to affect China's economy, and in turn is certainly a global economy. Still remember, how China's manufacturing data caused a churn in the emerging market?

So, at least some of the above points could be the reason why the conflict in Ukraine is able to affect the global market. Therefore, if you are involved in the world of financial markets, there is nothing wrong with the developments in Ukraine.