March 3, 2014

WORLD LEADERS WARN KREMLIN AS UKRAINE STANDOFF CONTINUES

[There were reports Sunday evening that the newly appointed Ukrainian Navy chief, Rear Adm. Denis Berezovsky, had sworn allegiance to “the people of Crimea” and its new government. A YouTube video showed an anxious, sweating Admiral Berezovsky, eyes downcast, quickly pledging to protect the region and its people — ostensibly against the Kiev government. Embarrassed officials in Kiev immediately removed him and said they would investigate him for treason.]
By Steven Erlanger
KIEV, Ukraine — With small military standoffs around Ukrainian bases continuing in Russian-controlled Crimea and deepening anxiety about Russian intentions in eastern Ukraine, British Foreign Secretary William Hague on Monday called Ukraine “the biggest crisis in Europe in the 21st century.”
Visiting the new government in Kiev, Mr. Hague urged Russia to pull back its forces in Crimea or face “significant costs,” echoing comments made by President Obama and Secretary of State John Kerry, who is due here on Tuesday.
Mr. Hague, speaking to the BBC from here, emphasized diplomacy. “There are diplomatic measures which we have started on already,” he said. “There are a range of other significant costs. I don’t want to anticipate at the moment what those will be, those will be discussed among my fellow E.U. foreign ministers today. They are also for discussion with the United States, Japan, Canada, other nations. But be in no doubt that there would be such costs. The world cannot just allow this to happen. The world cannot say it’s O.K. in effect to violate the sovereignty of another nation in this way.”
European Union foreign ministers are to meet in another emergency session in Brussels later on Monday, while the Organization for Security and Cooperation in Europe is also meeting and has sent two observers to Crimea. Washington has proposed sending monitors to Ukraine under the flag of either the United Nations or the O.S.C.E.
The government in Kiev also faces significant economic problems, and a team of economists from the International Monetary Fund is reportedly due here on Monday to analyze the budget situation. Officials in Kiev have said that they need $15 billion in new loans this year alone and a total of $35 billion over two years. But the fund director, Christine Lagarde, has said that there is no cause for panic and that the agency will await the report of the economists.
The uncertainty hit the Russian stock market and the ruble hard on Monday morning. The Russian central bank raised its key lending rate 1.5 percentage points after the ruble fell 2.5 percent to an all-time low against the dollar at the opening of exchange trading on Monday, while the Micex benchmark index of Moscow stocks sank 10 percent to 1,294 points. Gazprom, the Russian gas monopoly that supplies Europe through Ukraine, was down more than 13 percent.
Mr. Kerry warned on Sunday that Russia risked losing its seat at the Group of 8 industrialized nations, but Germany disagreed and Mr. Hague demurred. Western countries, however, have suspended preparations for the scheduled meeting of the G-8 in Sochi, Russia, as part of their response to Russia’s move on Crimea.
The situation in Crimea remained one of a tense standoff. Russian troops, wearing no badges on their uniforms, and pro-Russian “self-defense” forces surrounded Ukrainian bases, neutralizing and essentially imprisoning the soldiers and sailors there. But there continued to be no real violence.
Ukraine said Russia was moving more armored vehicles to its side of a narrow stretch of water near Crimea, while Russian forces took over the headquarters of the Ukrainian border control in Simferopol. Trucks outside had no license plates but at least one car had Russian military plates.
Ukraine’s government worked to stem protests in the east, recruiting wealthy eastern businessmen to become provincial governors in an effort to dampen secessionist sentiment there.
In Kharkiv, the eastern city that is the country’s second largest, a sprawling pro-Russian protest camp occupied the central square, and Russian flags were on display. Many protesters said they would even prefer that Russian troops invade the city, just 20 miles from the border, rather than submit to Kiev’s rule.
“I would welcome them with flowers,” said Aleksandr Sorokin, 55, a pensioner walking by a phalanx of riot police officers guarding the administration building in Kharkiv. “We do not want to spill blood, but we are willing to do so.”
There were reports that two pro-government supporters died from injuries suffered on Saturday in Kharkiv, where there was a major pro-Russian demonstration and an attempt to take over government buildings.
Even as Kiev’s pro-Western government called up its army reserves and vowed to fight for its sovereignty, calling Russia’s invasion of Crimea a “declaration of war,” it mustered a mostly political response to demonstrations in the east.
The office of President Oleksandr V. Turchynov announced on Sunday the dispatch of two billionaires — Sergei Taruta in Donetsk and Ihor Kolomoysky in Dnipropetrovsk — and more were reportedly under consideration for positions in the eastern regions.
The strategy is recognition that the oligarchs represent the country’s industrial and business elite, and hold great influence over thousands of workers in the east. Officials said the hope was that they could dampen secessionist hopes in the east and keep violent outbreaks — like fighting between pro-Western and pro-Russian protesters in Kharkiv that put at least 100 people in the hospital on Saturday — from providing a rationale for a Russian invasion in the name of protecting ethnic Russians.
At the same time, Ukrainian officials sought international help after a rapid Russian invasion of Crimea over the weekend turned into a celebration of pro-Kremlin sentiment in the streets there.
Hundreds of troops acting in the name of the provisional pro-Russian government in Crimea fanned out to persuade the thin Ukrainian forces there to give up their arms or swear allegiance to the new authorities, while the new government in Kiev tried to keep their loyalty but ordered them not to shoot unless under fire.
There were reports Sunday evening that the newly appointed Ukrainian Navy chief, Rear Adm. Denis Berezovsky, had sworn allegiance to “the people of Crimea” and its new government. A YouTube video showed an anxious, sweating Admiral Berezovsky, eyes downcast, quickly pledging to protect the region and its people — ostensibly against the Kiev government. Embarrassed officials in Kiev immediately removed him and said they would investigate him for treason.
What began in Ukraine three months ago as a protest against the government of President Viktor F. Yanukovych has now turned into a big-power confrontation reminiscent of the Cold War and a significant challenge to international agreements on the sanctity of the borders of post-Soviet nations.
But even as Western leaders warned that Russia would face political and economic penalties, and reiterated their support for Ukraine’s sovereignty, it was difficult to see what immediate penalties could persuade the Kremlin to retreat from Crimea and stop exerting pressure through its supporters in eastern Ukraine.
Russia on Sunday kept up its propaganda campaign in defense of the Crimean takeover, citing undefined threats to Russian citizens and proclaiming large defections of Ukrainian forces in Crimea, which Western reporters said appeared to be unfounded.
Instead, the scenes were of Ukrainian troops in the peninsula being bottled up in their bases, surrounded by heavily armed soldiers without insignia.
Reporting was contributed by Andrew Roth from Kharkiv, Ukraine; Andrew Kramer from Kiev; Alison Smale, David M. Herszenhorn, Noah Sneider and Patrick Reevell from Simferopol, Ukraine; Andrew Higgins from Sevastopol; Stephen Castle from Brussels; and Somini Sengupta from the United Nations.