Back
27 Feb 2014
Separatist tensions in Ukraine's Crimea escalate
FXStreet (Łódź) - While the interim Kiev administration is preparing today for a formal approval of the new cabinet by parliament, tensions in Crimea have been escalating. On Wednesday armed men flying Russian flags took over government buildings in Simferopol chanting “Crimea is Russia!” and clashing with the ethnic Tatars who support the new Ukrainian authorities.
The gunmen rejected negotiations with Regional Prime Minister Anatoliy Mohylyov and refused to answer quaetions from journalists.
On Wednesday Russian president Vladimir Putin ordered a drill of 150,000 troops stationed in western Russia, putting Russia’s Black Sea Fleet on the Crimea peninsula in combat readiness.
Today the interim president Oleksandr Turchynov announced that any movements of the troops outside of the Black Sea fleet base would be considered as an act of agression.
Win Thin, Global Head of Emerging Market Currency Strategy at BBH commentes: "Ukraine itself is a relatively small economy but tends to punch above its weight on the geopolitical scale. It is seen as very important to Putin’s aspirations of expanding its sphere of influence again over the old USSR. As such, we find it hard to believe that Putin will accept this setback quietly. Western Europe receives much of its Russian natural gas supplies through pipelines in Russia, and saw its supplies disrupted during the 2009 Russia-Ukraine dispute."
The gunmen rejected negotiations with Regional Prime Minister Anatoliy Mohylyov and refused to answer quaetions from journalists.
On Wednesday Russian president Vladimir Putin ordered a drill of 150,000 troops stationed in western Russia, putting Russia’s Black Sea Fleet on the Crimea peninsula in combat readiness.
Today the interim president Oleksandr Turchynov announced that any movements of the troops outside of the Black Sea fleet base would be considered as an act of agression.
Win Thin, Global Head of Emerging Market Currency Strategy at BBH commentes: "Ukraine itself is a relatively small economy but tends to punch above its weight on the geopolitical scale. It is seen as very important to Putin’s aspirations of expanding its sphere of influence again over the old USSR. As such, we find it hard to believe that Putin will accept this setback quietly. Western Europe receives much of its Russian natural gas supplies through pipelines in Russia, and saw its supplies disrupted during the 2009 Russia-Ukraine dispute."