The stand-off between Russia and the G7 over Moscow’s intervention in the Ukrainian region of Crimea continued on Monday. Financial markets reacted sharply to developments: fears of a war wiped a tenth off the value of Moscow’s stock exchange, sent the rouble tumbling to an all-time low and pushed up the price of commodities. At the UN in New York, the security council meeting turned into a showdown between Russia and several other nations, including the US and UK, which strongly condemned its incursion on Ukraine’s territorial integrity. And tensions were high in Crimea where it was reported Russia had given Ukrainian military forces an ultimatum to surrender.
By John Aglionby and Leyla Boulton in London, Shannon Bond in New York and FT correspondents around the world
By Gideon Rachman
When the Soviet Union invaded Czechoslovakia in 1968, the Moscow stock market did not crash. That is because there was no Moscow stock market. By contrast, the news that Russian troops have taken effective control of Crimea was greeted, on Monday, by a 10 per cent collapse in shares on the Russian market.
Vladimir’s Putin’s decision to send Russian troops into Ukraine and seize control of Crimea has thrown the spotlight onto the peninsula.
Located on the northern coast of the Black Sea, Crimea has strong historical and cultural ties with Russia. It was Russian territory until 60 years ago, and one of the pretexts for Russia’s military invasion has been to defend its citizens and interests in Ukraine, especially in Crimea.
Yet Crimea’s strategic importance to Russia goes much further. The Crimean port of Sevastopol, home of the Black Sea fleet, is vital to Russia’s naval power in the Mediterranean and beyond. Read more
♦ As the Ukraine crisis escalates with Russian troops taking hold of Crimea, Barack Obama faces his sternest challenge – or as Edward Luce puts it, his chicken Kiev moment.
♦ Western military experts suspect Russia of plotting its action in Crimea for weeks.
♦ Politico suggests that Russia no longer fears the west , and outlines why.
♦ The New Yorker reports on the strange world of the Muslim Brotherhood court cases in Egypt. Read more