Ukraine Crisis

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Ukraine Crisis By – Apoorva Yadav MBA Trainee Institute of Business Management & Research University of Mysore

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The Origin & Conquest of Crimea History of the Crimean Peninsula starts from 5th century BC Several Greek colonies were established along its coast Since then Crimea has endured series of conquests and invasions by: Greeks Romans  Huns  Kievan Rus Byzantium  Mongols Crimean Khanate & the Ottoman Empire

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And. . . Russia pledged to uphold the territorial integrity of Ukraine in a memorandum, also signed by the US & UK Russian President Boris Yeltsin & Ukraine's Leonid Kravchuk split the Soviet Black Sea Fleet between: Russia & The New Ukrainian Navy On 14 October 1993: the Crimean parliament established the post of President of Crimea & Agreed the quota of Crimean Tatars (who were deported out as a punishment of supporting Nazis) representation in the Council to 14 The chairman of the Tatar Mejlis, Mustafa Abdulcemil was outraged

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Next, the Crimean Tatar leader, Yuriy Osmanov was murdered Series of assassinations & attacks on Tatar community & Ukrainian officials took place On 30 January 94, the pro-Russian Yuriy Meshkov was elected President but he faced conflicts with parliament On 8th Sept. Crimean parliament degraded the President's powers to the head of executive only On 17 March 95, Ukraine intervened, scrapping the Crimean Constitution and removing Meshkov for: his actions against the state & promoting integration with Russia

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Post Ukraine’s Annexation Over Crimea After the Treaty of Friendship, Cooperation, & Partnership in 1997, Moscow recognized Ukraine's borders & territorial integrity Russia also accepted Ukraine's sovereignty on Crimea & Sevastopol  Russia was to receive 80% of the Black Sea Fleet & Use of military facilities in Sevastopol on 20yr lease Controversy of the ownership of a lighthouse on Cape Sarych between Ukraine & Russia still remain There have been unsuccessful attempts to return Cape Sarych to Ukrainian territory

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What Actually Happened?

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Rising Tension September 2008- Ukrain’s Foreign Minister Volodymyr accused Russia of giving out Russian passports in Crimea January 2009- Nalyvaychenko, acting head of Security Service Ukraine started criminal proceedings against pro-Russian association 24 August 2009- anti-Ukrainian demonstrations held in Crimea by ethnic Russian residents Crisis unfolded in Feb 2014 after Ukrainian revolution & the interim appointment of  Yatsenyuk Government Russia opposed the new Acting President of Ukraine, Oleksandr Turchynov as "self-proclaimed“ in a "coup d'etat"  

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23 Feb- The law on languages of minorities is abolished, including Russian 26 Feb- Thousands of pro-Russian & pro-Ukraine protesters clashed in Simferopol in front of parliament  March 11: After disagreements with Ukraine, the Crimean Parliament & City Council of Sevastopol adopted a resolution:  To show intention to declare themselves independent as united nation Possibility of joining the Russian Federation as a federal subject - if voters approve to do so in upcoming referendum

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Crimea Under Russia

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Crimea Under Russia March 16- Officials said that 96% votes in Crimea supported to join Russia However, the referendum had no international recognition & no other country had sent its official observers March 17- Crimean parliament declared independence from Ukraine & requested to join Russian Federation March 18- President Putin declared Crimea a part of Russia All actions of Crimean parliament disregarded by Ukrainian constitutional court  The United States & the European Union consider the vote illegal  March 27- U.N. General Assembly passed non-binding resolution declaring Crimea's Moscow-backed referendum invalid

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Impact On Global Economy

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Impact On Global Economy The Ukrainian economy is going through a balance of payments adjustment & will witness heavy loss due to the Crimea Crisis IMF bailed out $17 billion to Ukraine but govt. is looking at tight spending this year Russian stock market is down 20% this year &  IMF forecasted GDP fall from 1.3%-0.2% in 2014 A third of Europe’s gas comes from Russia, thus the European Union can be at risk Russia & Ukraine are suppliers of energy, palladium, nickel, titanium & grain risking supply chains of companies using these materials

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Troubles in Ukraine will hurt Russian banks, which have leant heavily to Ukraine Automakers in Germany will be heavily affected, since their manufacturing takes place in Russia More sanctions from US will put Russia into deep recession hitting consumers goods, technology & the financial sector Russia depends on European imports to keep its stores filled On the other hand uncertainty in global markets could boost demand for: U.S. government bonds German bonds Japanese bonds & U.K. bonds

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Thank You