Sanctions loom as Russia, Ukraine face off over Crimea
Mar 4, 2014 0:26:39 GMT -5
Post by schwartzie on Mar 4, 2014 0:26:39 GMT -5
Sanctions loom as Russia, Ukraine face off over Crimea
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Published: Monday, 3 Mar 2014 | 2:12 PM ET
By: The Associated Press with Reuters
Ukraine says Russian forces controlling the strategic region of Crimea are demanding that the crew of two Ukrainian warships must surrender, though the Russian Black Sea Fleet said it had no plans to attack Crimean military installations.
As the crisis deepened top U.S. legislators called for sanctions on Russia, including measures targeting banks and officials. The State Department said it was already preparing to put unspecified sanctions in place, and the Polish foreign minister said European Union ministers had agreed to consider the same.
Ukrainian Defense Ministry spokesman Maksim Prauta said four Russian navy ships were blocking Ukraine's anti-submarine warship Ternopil and the command ship Slavutych in Sevastopol's harbor.
He said the Russians ordered the crew to surrender within the hour or face Russians storming and seizing the ships and crew.
Interfax also quoted an unnamed source in the Ukrainian Defense Ministry earlier on Monday as saying a deadline to surrender at 0300 GMT had been set by the Black Sea Fleet's commander.
The same news agency later quoted an unnamed representative at the fleet's headquarters as saying no assault was planned, adding: "This is complete nonsense.''
The State Department said the reports, if true, would be "dangerous escalation" for which it would hold Russia responsible.
(For more coverage of the crisis in Ukraine, follow CNBC's live blog here.)
This story is developing. Please check back for further updates.
Play Video
European markets: Ukraine tensions hit European stocks
CNBC's Simon Hobbs shows how Europe is reacting to tensions in Ukraine.
Fears of a tit-for-tat campaign of economic sanctions between Russia and Western powers over Ukraine ratcheted up as the tensions rose, with concerns largely centering on Russia's supplies of natural gas to Europe.
But with the situation in Ukraine still fluid, it's not clear how far either side is willing to go. While the European Union is by far the biggest consumer of Russian gas, any disruption would come at huge financial cost to Moscow.
"The world now faces a new round of geopolitical tension with potentially very high stakes," said Jane Foley, an analyst at Rabobank International.
Sen. Chris Murphy (D-Conn.), chairman of the Senate's Europe subcommittee, told Reuters the U.S. Senate is considering sanctions, among them travel bans and asset freezes, though he also noted that the US had to work with Europe for the sanctions to be effective.
House Speaker John Boehner (R-Ohio) also told the Cincinnati Enquirer it was time for sanctions, though he did not elaborate on the form they should take.
Diplomatic efforts continued, as the European Union called on Russia to withdraw its troops to bases and hold consultations with Kiev, while extending the possibility of holding a summit of EU leaders to discuss the crisis in Ukraine.
The EU's foreign policy chief Catherine Ashton told reporters after emergency talks among EU foreign ministers on the crisis that she "anticipated'' the EU to convene a summit on the issue this week. That summit was later scheduled for Thursday.
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Text Size
Published: Monday, 3 Mar 2014 | 2:12 PM ET
By: The Associated Press with Reuters
Ukraine says Russian forces controlling the strategic region of Crimea are demanding that the crew of two Ukrainian warships must surrender, though the Russian Black Sea Fleet said it had no plans to attack Crimean military installations.
As the crisis deepened top U.S. legislators called for sanctions on Russia, including measures targeting banks and officials. The State Department said it was already preparing to put unspecified sanctions in place, and the Polish foreign minister said European Union ministers had agreed to consider the same.
Ukrainian Defense Ministry spokesman Maksim Prauta said four Russian navy ships were blocking Ukraine's anti-submarine warship Ternopil and the command ship Slavutych in Sevastopol's harbor.
He said the Russians ordered the crew to surrender within the hour or face Russians storming and seizing the ships and crew.
Interfax also quoted an unnamed source in the Ukrainian Defense Ministry earlier on Monday as saying a deadline to surrender at 0300 GMT had been set by the Black Sea Fleet's commander.
The same news agency later quoted an unnamed representative at the fleet's headquarters as saying no assault was planned, adding: "This is complete nonsense.''
The State Department said the reports, if true, would be "dangerous escalation" for which it would hold Russia responsible.
(For more coverage of the crisis in Ukraine, follow CNBC's live blog here.)
This story is developing. Please check back for further updates.
Play Video
European markets: Ukraine tensions hit European stocks
CNBC's Simon Hobbs shows how Europe is reacting to tensions in Ukraine.
Fears of a tit-for-tat campaign of economic sanctions between Russia and Western powers over Ukraine ratcheted up as the tensions rose, with concerns largely centering on Russia's supplies of natural gas to Europe.
But with the situation in Ukraine still fluid, it's not clear how far either side is willing to go. While the European Union is by far the biggest consumer of Russian gas, any disruption would come at huge financial cost to Moscow.
"The world now faces a new round of geopolitical tension with potentially very high stakes," said Jane Foley, an analyst at Rabobank International.
Sen. Chris Murphy (D-Conn.), chairman of the Senate's Europe subcommittee, told Reuters the U.S. Senate is considering sanctions, among them travel bans and asset freezes, though he also noted that the US had to work with Europe for the sanctions to be effective.
House Speaker John Boehner (R-Ohio) also told the Cincinnati Enquirer it was time for sanctions, though he did not elaborate on the form they should take.
Diplomatic efforts continued, as the European Union called on Russia to withdraw its troops to bases and hold consultations with Kiev, while extending the possibility of holding a summit of EU leaders to discuss the crisis in Ukraine.
The EU's foreign policy chief Catherine Ashton told reporters after emergency talks among EU foreign ministers on the crisis that she "anticipated'' the EU to convene a summit on the issue this week. That summit was later scheduled for Thursday.
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