Energy prices surge on Ukraine with oil closing in on $100

Russia is the biggest provider of gas to Europe, about a third of which typically travel through pipelines crossing Ukraine

People from the Donetsk and Luhansk regions watch Russian President Vladimir Putin's address. Picture: AP/Denis Kaminev

Energy prices have surged after Russian President Vladimir Putin signed an order to send what he called “peacekeeping forces” to the two breakaway areas of Ukraine that he officially recognised.

European natural gas led gains in commodities, jumping as much as 13%. Brent oil was closing in on $100 (€88.42) a barrel, and German power and coal prices rose. Russia’s move is a dramatic escalation in its standoff with the West over Ukraine, with the US and the UK saying they plan to announce new sanctions as soon as Tuesday.