Crimea Crisis Putting a Dent in Russia’s Economy

      Since the beginning of the Russian President Vladmir Putin’s encroachments on the Ukrainian region of Crimea, the international community has scolded Russia’s military and alleged unlawful actions. Russia’s overwhelming military presence surrounding Crimea by means of the Black Sea was a main source of tension. This tension rose substantially after Putin’s allegedly unlawful annexation of Crimea. 

      In response to Russia’s actions regarding the Crimea crisis, the European Union, Canada, and the U.S. have all imposed serious sanctions to deter Russia. Through the developments of the situation these sanctions have intensified, and as a result Russia may be heading toward a recession. 

http://thumbs.dreamstime.com/x/exchange-rubles-dollars-3726551.jpg

      As reported by the Russian bank VTB Capital, the country’s economy will shrink over the next two quarters. Russia’s Mice stock index has dropped 13.2 percent so far this year, and the ruble has dropped 8.9 percent so far this year in comparison to the U.S. dollar (making it the second-worst performing currency at this time, second only to the Argentine peso. 

      Facing these sanctions damages Russia’s international trade drastically, discourages most foreign investment, and has hurt domestic spending.

http://img.allvoices.com/thumbs/image/609/609/103887125-russian-sanctions.jpg

      On Friday the 21^st, Visa and Mastercard actually stopped processing transactions for customers of some Russian banks temporarily.

      While it seems the sanctions from the U.S., Canada, and European Union have been successful at crippling the Russian economy, it doesn’t appear to have deterred them from keeping their military presence in and around Crimea. Putin has actually retaliated by placing his own sanctions against 13 Canadian officials!

Original Source: http://www.cbc.ca/m/touch/business/story/1.2583988

Resource Battle in Crimea

      Russia’s possible annexation of Crimea poses some issues regarding the control of the Crimean resources in the Black and Azov Seas. These areas are prime areas of land that are extremely rich in natural resources. Crimea is a large oil and gas producer for many areas in and around Ukraine. 

http://www.marketwatch.com/story/oil-holds-steady-ahead-of-iea-

.

http://www.google.com/hostednews/getty/article/

Days before the Crimean referendum, Crimean officials publicized their plans to nationalize Chornomornaftogaz, a subsidiary of the Russian based company Naftogaz that exploits the oil resources of the area.

       Following this, it was revealed that the Russian army commandeered the oil and gas production just off the Crimean border. The fact that Russia possesses one of the strongest naval powers eliminates most possibility of military retaliation for the confiscation of the oil production. Russia is clearly coercing Crimea by controlling its assets and its only producer of natural gas. On top of that, Chornomornaftogaz is one of Ukraine’s largest assets and providesimportant tax revenues. 

      The seizing of Chornomornaftogaz will hit Ukraine’s budget hard, but it also acts as a threat to Crimean and Ukrainian security; Russia’s overwhelming military presence in the area is a stressor for the region, and tensions are definitely high and rising. 





Original Source:  
http://www.themoscowtimes.com/opinion/article/kievs-energy-security-threatened-by-moscow/496496.html

Reply from Russia

   Russia is preparing a bill to retaliate to U.S. against its sanctions of trade talks and military engagements. This bill is also to retaliate on the long rumored sanctions from Europe. This bill will allow Russia to confiscate any foreign property in Russia including private companies.  U.S. has commented earlier this week if Russia continues its current trajuctury, they are prepared to take " economic, diplomatic — that will isolate Russia and will have a negative impact on Russia’s economy and its standing in the world." 
Russia has responded to this comment. There response " economic, diplomatic — that will isolate Russia and will have a negative impact on Russia’s economy and its standing in the word." Russia is trying to be the bigger man by not using childish threats. According to Russian lawmaker, " We are only suggesting that instead of threatening each other with sanctions we should together with our partners calmly read the Ukrainian Constitution and understand what has happened in this sovereign country." This is more than what the West has suggested because they have not considered even working with Russia. Instead they comment on his actions and do not wish for Russia to be involved. Mr.Putin has shown the West he's not scared of them but also trying to show that he doesn't want war. There is only going to be war if the West continues to trying to push Russia out of the situation. 

Moscow Prostests

                                                    

   As the West condemns Putin's actions, Moscow hits the streets in support of Crimea and Ukraine of their actions. They also rally for no war in the area since Putin has put troops into the Ukraine. They concerned because the West are condemning his actions and are liable to put troops in themselves. The U.S., the most aggressive country from the West, has planned to cancel all trade talks, and all military to military operations. Military operations are things such as port visits,exercises. They also mentioned it will be continuing with everyone else. This means that the next time they go into Russian waters, they are not on friendly terms. These people have reason to fear war in the area. With another 2 months till elections are due who knows what is in store. While these people Hope for the Best! Their government prepares for the Worst!

Russia Allows Troops in Ukraine

 
 

                               Today, Russia approves putting troops in the Crimea region. This vote was unanimously voted by the Russian Federation Council. This decision was put in after wave of protests in Ukraine by  pro-Russian supporters. Also, after the Crimean leader ask for Putin to intervene. Lawmakers in Russia  accuse the West of the support of violent protest in the region. According to Russia Today, Friday, Obama made a statement saying " The United States will stand with the international community in affirming that there will be costs for any military intervention in Ukraine."  Due to all this Russia is also thinking about calling out their  in ambassador in the U.S.. Senator are asking for the removal due these "aggressive words" in the Ukraine. Now, that Russia has now put military troops into Ukraine. I believe the U.S. will follow suit to match the Russian force in the situation in the name of 'Democracy and Freedom.' This could lead for further crisis due to Russia and the U.S not seeing eye to eye on the situation.  

 http://www.themoscowtimes.com/news/article/federation-council-approves-putins-request-for-troop-deployment-in-ukraine/495427.html
http://rt.com/news/us-ambassador-russia-obama-374/