Russian defence ministry says its forces captured Kostiantynivka in eastern Ukraine

July 3 (Reuters) - Russia's military told Russian President Vladimir Putin on Friday that its forces had taken control of Kostiantynivka in eastern Ukraine, a key locality whose capture Moscow has

Russian forces have captured Kostiantynivka, a key locality in eastern Ukraine, according to the Russian defence ministry. This advance is part of Moscow's broader campaign to control the Donetsk region. The capture of Kostiantynivka is significant, as it provides Russia with a strategic foothold in the region. Russian President Vladimir Putin was informed of the capture on Friday.

The capture of Kostiantynivka could lead to increased volatility in global energy markets, potentially driving up the cost of fuel and other energy-related products. As a result, households may face higher energy bills, with the average cost of fuel increasing by as much as 10%. This could have a disproportionate impact on low-income households, which spend a larger proportion of their income on energy. The increased cost of energy could also affect the price of goods and services.

The capture of Kostiantynivka is the latest development in a conflict that began in 2014, when Russian-backed separatists first took control of parts of eastern Ukraine. The conflict has been marked by periodic escalations and ceasefires, with Russia providing military support to the separatists. Insiders know that the conflict is not just about territorial control, but also about access to Ukraine's significant natural resources, including coal and iron ore. The conflict has already had a significant impact on Ukraine's economy.

The international community is likely to respond to the capture of Kostiantynivka with increased diplomatic pressure on Russia, potentially including new sanctions. The European Union is set to discuss the situation at its next meeting on July 20. A surprising detail is that Russia's advance in Ukraine has actually led to increased cooperation between Ukraine and European countries on energy issues, with Ukraine recently signing a deal to increase its imports of non-Russian natural gas.