Financial markets were worried about the invasion of Ukraine for about a day before all was forgotten, regardless of the vague uncertainty surrounding Russian President Vladimir Putin’s true intentions. Numerous former Soviet Union nations, such as Moldova, Poland and the Czech Republic, are worried about Putin as reports of Russia testing inter-continental ballistic (IBM) missiles and whether a move beyond Crimea is in the future. It is worrisome that Putin believes that the fall of the USSR was the greatest catastrophe of the twenty-first century, and some worry that he is in the works of recreating the former Communist powerhouse.
Aside from the uncertain, the European Union (EU) is deciding possible consequences for Russia’s aggression and emergency aid for Ukraine. The EU offered Ukraine €1.6 billion in aid to help avoid government default, but many countries, including Germany, are straying from harsh action against Russia, which may block Russian energy into these countries.
Incentives for Ukraine are being panned out in order to strengthen the newly formed government after the ousting of Viktor Yushchenko. John Kerry, US Sec. of State, promised Ukraine $1 billion in loans, while the Ukrainian government said it would take over $15 billion over the next 2.5 years to stay above water.
The United States has threatened economic sanctions against the Russian Federation, but Putin has called President Obama’s bluff. The Kremlin’s economic aide warned that Russia would establish new trading partners and avoid the use of the US dollar if such sanctions were to happen. US Sec. of State John Kerry said “we cannot and will not allow the integrity of the sovereignty of the country of Ukraine to be violated and for those violations to go unanswered.” Unfortunately, rhetoric like this only brings up the embarrassment of the multiple red lines that were crossed during the continuing Syrian conflict to which no real action was taken by President Obama.
Vitaly Churkin, Russian ambassador to the UN, said there were 16,000 Russian troops in Crimea with Putin reserving his “right” to use military force if needed. The Crimea peninsula has heavily populated with Russian natives and pro-Kremlin protesters, yet the Ukrainian acting President Oleksandr Turchynov said no Russians were at risk. However, he said military invasion would be an act of war.