European shares rise as concerns grow over Ukraine

European shares opened higher on Thursday, supported by gains in low-risk sectors, on fears of a worsening crisis in Ukraine as Western countries plan more sanctions on Russia.

The pan-European Stoxx 600 index rose 0.2 percent, with utilities and consumer goods companies leading the way. Raw materials stocks fell 0.3 percent, limiting the index’s gains.

European gas prices jumped after Russian President Vladimir Putin said his country would seek to sell gas to “unfriendly countries” in rubles, a move that would exacerbate the region’s energy crisis and exacerbate inflation as well.

And fears of more sanctions against Russia have risen with the arrival of US President Joe Biden in Brussels to attend meetings of NATO, the Group of Seven and the European Union. Sanctions imposed so far on the resource-rich country have sent commodity prices soaring amid fears of supply shortages.

Renault, the western carmaker with the most exposure to the Russian market, fell 2.3 percent after it said it would suspend operations at its Moscow plant while evaluating options for its largest stake in AvtoVAZ, Russia’s number one automaker.

Shares of Daimler Trucks rose 4.4 percent after it said it expected little impact on its business in 2022 from the Covid-19 pandemic and Russia’s invasion of Ukraine, and forecast revenue growth of at least 14 percent.