East European Countries

Oil prices spiked due to the war in Iran, and for now this has halted any monetary easing efforts by emerging market central bankers from Poland to Turkey. This is because policymakers are coping with an increase in inflation expectations as well as a rise in risk aversion. After a series of shocks, from the COVID outbreak to Russia's invasion in?Ukraine, that have shook markets, slowed growth, and fueled inflation, central banks are finally becoming more optimistic about global economic resilience?and easing price pressures. The dollar gained ground, and U.S. Treasury Yields rose as a proxy of borrowing costs in...

Calculations showed that the price of Russian crude oil, used to tax the country, has exceeded the budget target?for the first time since Jan 2025?because?of?the rise in global prices due to the Iran War. Since the beginning of the war in Ukraine, in 2022, Russia has increased its military spending, increasing its deficit. In January-February, it was 3.45 trillion Russian roubles (43.70 billion dollars), or 1.5%. The Iran War, which involved U.S., Israeli and Iranian strikes on Iran, and Iranian strikes against Israel and U.S. military bases, as well as Gulf states has fueled a significant increase in demand for...

Investors are rethinking popular themes and trades of 2026 due to the escalating conflict in the Middle East. Global equities have plummeted, the dollar has risen and traders have reduced their bets on rate cuts by the Federal Reserve. Investors have been preparing for growth this year. "A stagflationary surprise was not part of the plan", said ING's head of global markets Chris Turner. Investors are cautious and still have more to unwind. Here are five popular topics that have been "upended" by the conflict in Middle East. 1/ DOLLAR SHORTS SQUEEZED According to data released by the U.S. regulator...

MOSCOW, February 26 - The Kremlin said on Thursday that a sharp drop in revenue from energy sales and a growing budget deficit were "routine problems" which could be resolved thanks to macroeconomic stability. Dmitry Peskov, Kremlin spokesperson, commented on the meeting that President Vladimir Putin had with top government officials to discuss budget this week. Peskov stated that Putin closely followed 'economic developments' during the meeting that Prime Minister Mikhail Mishustin claimed took place on Tuesday night late at night. "There is a real decline in oil and gas revenues. The growth of non-oil revenue partially offsets this decline....

Iraq's Oil Minister said that Chevron is in exclusive talks with Lukoil to take over the West Qurna 2 oilfield. Iraq is seeking to increase its oil and gas production. Oil majors are competing to expand their operations, after years of political insecurity. Hayan Abdel-Ghani, the Oil Minister of Iraq, told Kurdish TV Rudaw in an interview that production could increase to 750,000-800,000. bpd once Chevron took over operations. The U.S. The?U.S. Iraq, which is the second largest oil producer in the OPEC+ Group, comprising Organization?of Petroleum Exporting Countries (OPEC) and its allies, including Russia, has plans to increase the...

Orlen, a Polish energy group, reported adjusted core earnings higher than expected on Thursday. This was helped by a stronger downstream result which overshadowed the?net profit miss caused?by asset impairments as well as lower oil and natural gas prices. The shares rose 2.2% as of 0849 GMT. This boosted Poland's blue chip index WIG20 which rose by 0.5%. Analyst Tamas Pelser at?Erste Group said that the 4Q25 period was a positive one for the Polish energy giant, highlighting "the very strong contribution" of refining in a margin-friendly environment. Orlen's model refinement?margin increased in the fourth quarter, as sanctions and Ukrainian...

The Russian central bank announced on Thursday that the country's 'current account surplus' had fallen by '34%' to $41.4 billion in '2025, from $62.6 billion last year. This was due to the Western sanctions as well as the lower oil price, which is the main source of income for the country. Exports fell while imports were relatively stable. The current account of a country is the difference between all money that comes in from trade, investments and transfers and what goes out. As a cause of the decline, the central?bank cited a growing deficit in services caused by an?increased importation...

According to correspondence seen by, the management of a Russian owned oil refinery located in Germany privately warned Berlin that U.S. Sanctions were hurting their business and threatened fuel supplies for the capital and region. In a letter sent to Katherina Reiche in January, the management of Rosneft's PCK Schwedt refinery made an "urgent" appeal to her to resolve the standoff between the United States and the refinery. The letter details the escalating issues at the refinery which supplies fuel to Brandenburg, eastern Germany, and nine out of ten cars in Berlin. It also supplies key chemicals and ingredients for...

Even though oil prices rose 15% in January on the back of fears that a new U.S. attack on Iran was imminent, they remain in a narrow range. A well-supplied oil market makes it unlikely that either side will be able to push prices higher. It would take a massive, sustained action to make a significant impact on the global supply-demand imbalance. Brent crude futures are at their highest level since July?last year. This puts the global benchmark in line for its largest monthly gain since January 20,22, when Russian troops were preparing to enter Ukraine. A series of major...

The Finance Ministry announced on Monday that Russia had a budgetary deficit of 5.6 trillion roubles, or 2.6% of GDP, by 2025. This is the largest deficit in terms of percentage of GDP since 2020 and in roubles since 2006. In 2024, Russia's fiscal deficit was equal to 1.7% of its GDP. The?government increased the deficit target in 2025 from the initial?1.2 trillion Rubbles or 0.5% GDP due to the shrinking energy revenue and a strong Rouble. Budget revenues were 37.28 trillion rubles, down 7.5% on the original target. This was due to the 24% drop in oil and gas...

Italy announced on Monday that Venezuela had released Italian citizens Alberto Trentini?and Mario Burlo?from prison. It also pledged to "upgrade its relations with Caracas" in response. After Venezuela released two Italian citizens, Biagio Piieri, a journalist, and Luigi Gasperin a businessman, last week, Foreign Minister Antonio Tajani confirmed that no other citizens with only Italian nationality were still in prison. Hundreds of dual nationals, both Italian and Venezuelans, are still being held. Venezuelan leadership announced on January 8, that it would release a large number of prisoners including foreigners, as a gesture. After the U.S. captured Venezuela's president, Nicolas Maduro,...

Dmitry Medvedev, the deputy chairman of Russia's Security Council and a senior legislator said at the weekend that "U.S. The actions of President Donald Trump in Venezuela are illegal and destabilising. However, they can be portrayed as an assertion of U.S. interest. Comments follow Trump's ?statement The United States has struck Venezuela, and Maduro and Maduro's wife have been captured and removed from the country. This prompted international reactions and calls for urgent UN discussion. Medvedev said to TASS that Trump's behavior was not only illegal, but also internally coherent as it served U.S. interest. "It is important to acknowledge...

The government of Poland announced on Thursday that it had foiled a cyberattack against its nuclear research centre. It is now examining possible signs that Iran may be responsible. Poland claims it has been the victim of many cyberattacks ever since Russia invaded Ukraine on a large scale in 2022. Moscow has denied any involvement. Krzysztof GAWKOWSKI, Minister of Digital Affairs at TVN24+, said that the attack against Poland's National Center for Nuclear Research had taken place "in recent days". "The attack was not on a large scale, but it was an attempt at breaking through security that was stopped....

Ursula Von der Leyen,?EU?chief, said that reducing?Europe's nuclear sector was a'strategic error'. This came as the governments struggled to cope with a severe energy shortage caused by the Iran War. The EU Commission President told a Paris event that Europe used nuclear energy to produce around a third in 1990. That number has now dropped to 15%. This leaves Europe reliant upon oil and gas imports, whose prices have risen in recent weeks. Von der Leyen said that Europe was at a disadvantage compared to other regions because it is "completely dependent on expensive and volatile fossil fuel imports". "This...

In a report published?Friday by the central bank of Poland, the inflation rate is expected to stay within the target range until the end of 2028. However, the data used in the report predated the beginning of the Middle East conflict. In 'its 'March forecasts, the National?Bank Polska projected that inflation would reach 2.3% this yeaar, 2.4% in the year 2027, and 2.3% in the year 2028. This is around the middle of central bank target of 1.5%-3.5%. The report stated that growth will be slightly slower this year at 3.9%, down from 4.0% by 2025. Since the weekend, the...

Alexei Likhachev, the chief of Rosatom, said that the U.S. and Israeli air attack on Iran has halted the construction of new 'units' of Iran's nuclear 'power plant' in the 'port city' of Bushehr. Likhachev warned earlier of the danger posed by'strikes near Iranian nucleus facilities. He said that explosions were heard 'just a few kilometres from the facility, even though the facility was not being targeted. He told journalists that the work has stopped on the sites of the second &?third units. He said that it was difficult to predict what would happen next, due to the military operations...

A local ceasefire was declared near the Zaporizhzhia Nuclear Power Plant in southeast Ukraine on Friday, to allow repairs of an external power line. The plant is the largest in Europe. Under Russian Control Since shortly after the beginning of the war, in 2022. The plant does not produce electricity and relies on outside power to maintain its nuclear material cool in order to avoid a catastrophic incident. Russia and Ukraine accuse each other frequently of putting the safety of the plant at risk by staging attacks near it. Last year, a similar 'local truce' was established when the power...

The central bank of Romania held its benchmark interest rate steady at 6.50% on Tuesday as expected, despite the temporary impact from higher taxes and electricity prices. Inflation is expected to reach the target level in the first half 2027. All the analysts surveyed by expected that rates would remain unchanged. Wednesday, the bank will announce its new inflation forecasts. The bank targets an inflation rate of 1.5%-3.5%. Last August, the broad coalition government increased value-added taxes and excise duty to reduce the largest budget deficit in Europe. Inflation reached double digits in July due to the hikes and the...

The companies confirmed that Rosatom, the Russian state nuclear power company, has released Siemens Energy from its contract to?help build Paks II in Hungary. This confirms an earlier report on the news website Politico. Rosatom informed?that it had terminated the contract with the firm?at the?end of 2025 because its?inability? to meet its contractual obligations. Siemens Energy stated that there were no sanctions in place at the time of termination, and that it fulfilled its contractual obligations in compliance with all national and international laws. It said that "at the time when the fulfillment would have made sense, the customer had...

Romania's 460 MW modular small nuclear reactor plant is expected to?cost $7 billion, and it will be difficult to devise a financing plan for such an investment? said Romanian Prime Minister Ilie Bolojan on Friday. Nuclearelectrica, a state-owned producer of nuclear power in Romania, announced on Thursday that it had made a decision to invest in a small modular reactor plant (SMR) in Doicesti. This could be the first project in Europe using this technology. The project would build six reactors in a staggered manner beyond 2030, using technology from the U.S. company NuScale Power. Nuclearelectrica holds a 50% share...

Nuclearelectrica, a state-owned Romanian nuclear power company, announced on Thursday that it had made a decision to invest in a small modular plant. This could be the first project in Europe using this technology. The project in central Romania, Doicesti, is to have six reactors with a capacity total of 460MW. It will be using technology from the U.S. NuScale Power. Romanian Nuclearelectrica holds a 50% stake in the joint-venture. The first reactor is the final investment decision, and the other five are dependent on the success of the technology. The original deadline of 2029 for the finalization of the...

Denys Shmyhal, Minister of Energy in Ukraine, said that senior Ukrainian officials agreed on Wednesday to increase air defence capabilities around the capital Kyiv. This is to counter any possible future Russian air attacks against energy infrastructure. The 'fresh' preparations follow the attacks in Kyiv, where officials are scrambling to repair damages to heating and electricity networks that has left thousands of people in darkness and cold. "Most information will not be made public." In the context of?potential further Russian attacks?, we discussed strengthening Kyiv?s active air defense, especially for?energy facilities?, Shmyhal wrote after a military staff meeting on Telegram....

Hungarian Foreign Ministry Peter 'Szijjarto' said that the first concrete pour at Hungary’s Russian-built nuclear plant Paks 2 was on Thursday. This officially made it a.nuclear facility under construction. Rosatom, the Russian state-owned nuclear energy company, will build two new reactors under an agreement signed in 2014 between Budapest and Moscow. Hungary wants to expand Paks by adding two Russian VVER reactors. Each VVER has a capacity of 1.2 gigawatts. The 12.5 billion Euro project, which was awarded to Rosatom without a tender, is often cited as proof of the warm relationship between Russian President Vladimir Putin and?Hungarian Premier Viktor...

In a letter sent to EU institutions and peers on Monday, Czech PM Andrej Babis urged them to support the European Union's carbon emission trading scheme in order to reduce energy prices. Babis wrote in a letter to the European Commission, the European Council and the other 26 members states that the EU should limit the price of?emissions?allowances and delay its second phase. Babis told a press conference that he would seek support from other EU leaders including France and Italy ahead of the bloc’s informal summit on February 12th. He said that allowance prices were forecast to be much...