Ukraine CDS widens on worsening Russia relations

LONDON, August 14 (Reuters) - The cost of insuring Ukrainian government debt in the credit default swaps market sharply increased on Thursday, with investors increasingly worried about worsening relations with Russia.

Ukrainian credit default swaps widened roughly 20 basis points to 437 on Thursday, compared to 401 last Friday.

Investors are concerned both over ongoing domestic political worries and worsening relations with Russia over its conflict with Georgia.

"It's a perfect storm for Ukraine at the moment," said Commerzbank debt strategist Luis Costa. "The government has made it clear that it is on a collision course with Russia and there are other issues as well."

(reporting by Peter Apps)