Opposing Reports Highlight Confusion About Situation in Ukraine

Industry participants, investors and analysts expressed opposing views on future relations between Moscow and Brussels. Over the weekend and early on Monday, several analysts released research notes, but their take on the escalation in eastern Ukraine was significantly different.

“The escalation sharply increases risks of an all-out civil war in Ukraine," said Bank of America Merrill Lynch, sounding more alarmed about the current situation than its peers. 

Russian stocks and the rouble plunged during the first day of the week. According to Reuters, the fall heightens ‘fears of Russian military intervention and more western sanctions against Moscow.’ 

On the opposite side of the spectrum, Goldman Sachs Group and Citigroup dismissed the possibility of further worsening of diplomatic ties.

The two financial services firms suggested that the interdependence between Russia and Europe would stop any further tension.

What is certain, though, is that those different views shed light on the existing confusion and uncertainties.