EU funds & CEE, Turkey sanctions, Russian oil hedging

This week’s agreement on the EU budget is generally a positive outcome for Central and Eastern Europe, with fund allocations rising and Poland and Hungary rejoicing at the lack of a framework linking the disbursement of funds with the rule of law. Elsewhere, the Turkish lira’s de facto peg against the dollar is unlikely to be sustained for much longer, particularly if tensions with the EU rise further. Finally, Russia’s government is considering launching an oil price hedging programme which may form part of a near-term strategy to keep balance sheets strong amid concerns about another fall in oil prices and renewed sanctions.