OPINION
Market Rating Before FOMC MeetingJan 31
Russo-Ukrainian Crisis: Next Level
Russo-Ukrainian Crisis, which has been on the agenda for months, escalates each day.
Ukraine is a country sharing borders both with Russia and the European Union. However, it has deep social and cultural ties with Russia than with the European Union and citizens who can speak Russian is high there. When Ukrainians deposed their pro-Russian president in early 2014, Russia annexed Ukraine's southern Crimean peninsula and backed separatists who captured large swathes of eastern Ukraine. The rebels have fought the Ukrainian military ever since in a conflict that has claimed more than 14,000 lives.
Recently, Russia has deployed an estimated 100,000 troops near its Ukraine borders despite still denying the planning of an invasion. News sources close to the issue report that there are 106,000 Russian troops and 21,000 naval and air force deployed for the hot region.
Regions where Russian soldiers are deployed
Sanctions and the 3 giants: the USA, Russia and the EU
The fact that Russia is increasing its military presence in Ukraine every day is also receiving a harsh reaction in the world's largest economies. Especially in case a possible invasion, the US and European Union (EU) sanctions are on the agenda.
President Biden has threatened Russia's leader with measures "like none he's ever seen" if Ukraine is attacked. So what would they involve? The President pointed out that in such circumstances, the Nord Stream 2 pipeline would not be able to operate and they could impose sanctions on Russian President Vladimir Putin.
Last week, President Biden acknowledged that a Russian invasion of Ukraine might be imminent and is considering additional macroeconomic assistance for Ukraine in the event of a possible invasion. Biden's statement that they will send troops to Eastern European countries soon fuels global geopolitical concerns.
Gen. Mark Milley, the chairman of the US Joint Chiefs of Staff, said Friday that if Russia decides to attack Ukraine, “it would be horrific,” and that such a move would result in “a significant amount of casualties,” particularly in Ukraine’s dense, urban areas. He also noted that military conflict between Russia and Ukraine “is not inevitable." US Secretary of State Antony Blinken also opened a new front by saying that they are working with Europe to create possible sanctions packages for Russia. As a matter of fact, European Commission President Ursula von der Leyen pointed out that if there is an attack against Ukraine, they will respond to Russia with massive economic and financial sanctions.
On the other side, President Vladimir Putin has not yet given a clear message. However, in his last meeting with US President Biden, he had demanded rolling back NATO’s presence in Eastern Europe and not deploying offensive weapons near Russia’s borders and returning NATO "military capabilities and infrastructure" to how they were before former Warsaw Pact states in Eastern Europe joined the alliance. In addition, Russian Foreign Minister Sergey Lavrov's statement that Russia does not want a war is also considered as a strategy.
Last but not least, the geopolitical tension between Russia and Ukraine, one of the 10 most oil-producing countries in the world, might cause supply shortages in oil.
Ukraine is a country sharing borders both with Russia and the European Union. However, it has deep social and cultural ties with Russia than with the European Union and citizens who can speak Russian is high there. When Ukrainians deposed their pro-Russian president in early 2014, Russia annexed Ukraine's southern Crimean peninsula and backed separatists who captured large swathes of eastern Ukraine. The rebels have fought the Ukrainian military ever since in a conflict that has claimed more than 14,000 lives.
Recently, Russia has deployed an estimated 100,000 troops near its Ukraine borders despite still denying the planning of an invasion. News sources close to the issue report that there are 106,000 Russian troops and 21,000 naval and air force deployed for the hot region.
Regions where Russian soldiers are deployed
Sanctions and the 3 giants: the USA, Russia and the EU
The fact that Russia is increasing its military presence in Ukraine every day is also receiving a harsh reaction in the world's largest economies. Especially in case a possible invasion, the US and European Union (EU) sanctions are on the agenda.
President Biden has threatened Russia's leader with measures "like none he's ever seen" if Ukraine is attacked. So what would they involve? The President pointed out that in such circumstances, the Nord Stream 2 pipeline would not be able to operate and they could impose sanctions on Russian President Vladimir Putin.
Last week, President Biden acknowledged that a Russian invasion of Ukraine might be imminent and is considering additional macroeconomic assistance for Ukraine in the event of a possible invasion. Biden's statement that they will send troops to Eastern European countries soon fuels global geopolitical concerns.
Gen. Mark Milley, the chairman of the US Joint Chiefs of Staff, said Friday that if Russia decides to attack Ukraine, “it would be horrific,” and that such a move would result in “a significant amount of casualties,” particularly in Ukraine’s dense, urban areas. He also noted that military conflict between Russia and Ukraine “is not inevitable." US Secretary of State Antony Blinken also opened a new front by saying that they are working with Europe to create possible sanctions packages for Russia. As a matter of fact, European Commission President Ursula von der Leyen pointed out that if there is an attack against Ukraine, they will respond to Russia with massive economic and financial sanctions.
On the other side, President Vladimir Putin has not yet given a clear message. However, in his last meeting with US President Biden, he had demanded rolling back NATO’s presence in Eastern Europe and not deploying offensive weapons near Russia’s borders and returning NATO "military capabilities and infrastructure" to how they were before former Warsaw Pact states in Eastern Europe joined the alliance. In addition, Russian Foreign Minister Sergey Lavrov's statement that Russia does not want a war is also considered as a strategy.
Last but not least, the geopolitical tension between Russia and Ukraine, one of the 10 most oil-producing countries in the world, might cause supply shortages in oil.
