Russian Ruble Tumbles To 2-Month Lows, Stocks Drop Following "Large-Scale" Rebel Offensive In Ukraine

The Ruble just hit 54/USD - its weakest since early April - as IFX reports a "large-scale" rebel offensive in eastern Ukraine involving 10 tanks and around 1000 troops. Ukraine's military has redeployed troops to halt this rebel offensive and has informed its international partners on the re-deployment which leaves The Minsk Accord hanging by a thread. Ironically Ukraine bonds had earlier jumped to 3-month highs on optimism surrounding restructuring that haircuts would not be as severe, but the reignition of tensions in the country have taken the shine of that exuberance.

  • *MICEX EXTENDS LOSSES, DROPS 1.2% AFTER IFX REPORT ON UKRAINE
  • *RUBLE SINKS 2.2% AFTER IFX REPORT OF REBEL OFFENSIVE IN UKRAINE

The Ruble is tumbling...

 

And MICEX is being sold...

 

As Bloomberg notes,

  • *INTERFAX CITES GENERAL STAFF OF UKRAINE ARMED FORCES ON ATTACK
  • *UKRAINE SAYS REBELS STARTED LARGE-SCALE OFFENSIVE IN EAST: IFX
  • *UKRAINE SAYS REBEL OFFENSIVE INVOLVES 1,000 TROOPS, TANKS: IFX
  • *UKRAINE SAYS ARTILLERY RE-DEPLOYED TO HALT REBEL OFFENSIVE: IFX
  • *UKRAINE SAYS REBEL OFFENSIVE STARTED NEAR MARYINKA IN EAST: IFX

Offensive by pro-Russian insurgents near Donetsk-region town of Maryinka involves up to 1,000 troops, more than 10 tanks and howitzers, General Staff of Ukraine’s armed forces says in statement on Facebook.

To counter attack, Ukraine re-deployed and used artillery that was previously pulled back

Ukraine says it informed international partners on artillery re-deployment

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