Market Commentary | The week that was

Sanctions against Russia are increasing. This includes not only oil and technology, but also sanctions against the Russian Central Bank, and the freezing of assets of President Vladimir Putin and his foreign minister, Sergei Lavrov. Among the allies joining the sanctions against Russia are Japan, Canada, Australia and South Korea.

The price of oil surges to its highest level since 2008 as the United States and European allies consider banning imports of Russian oil amid increasing attacks on Ukraine. At the time of writing this bulletin (Monday morning 9am CAT) the price of Brent Crude is trading at $128.4 per barrel. Russia supplies around 7% of the world’s oil, immediate banning of Russian oil imports would create serious short-term supply bottlenecks along with soaring prices.

While the Ukrainian President, Volodymyr Zelensky, has repeatedly requested that a no-fly zone over Ukraine should be imposed, President Putin keeps on warning that more Western sanctions on Russia will be similar to a declaration of war that may lead to disastrous consequences for the world.