Russian Markets Plunge as Putin Tightens Crimea Grip

Ukraine, deep in debt and geographically located between Poland and Russia, is divided over pursuing closer ties with Europe or Russia. After months of non-violent protests, the Ukrainian president accused of corruption and mismanagement unleashed a harsh response and then left for Russia. The parliament quickly installed a new government, and Russian forces moved into the Crimea, an area with longstanding Russian ties. Russia is the world’s second largest producer of oil and natural gas; its economy is interconnected with global markets, much more so than two decades ago. Financial markets fear conflict and default. “The Moscow stock market fell 10.8 percent, wiping nearly $60 billion off the value of Russian companies,” reports Reuters. The US stock market fell by 1 percent and the European markets by 2 to 3 percent. Wheat and corn futures rose. US President Barack Obama urged Putin to “let international monitors mediate a deal acceptable to all Ukrainians.” War over a divided Ukraine would mean a hard financial hit for Russia, Europe and the United States. – YaleGlobal