Ukraine and a New Cold War: Putin Runs the Gauntlet of Obama's Threats

The world is holding its collective breath as it watches a conflict comparable to the famous Cuban Missile Crisis, which came close to igniting World War III in October 1962. The tension between Moscow and Washington has increased following the occupation by some 6,000 Russian troops of Crimea, a strategically important region of Ukraine containing a large naval base. President Barack Obama was pushed to give a stern warning on Monday: “We are also indicating to the Russians that if in fact they continue on the current trajectory that they’re on, that we are examining a whole series of steps — economic, diplomatic — that will isolate Russia …”

Yet his counterpart Vladimir Putin does not appear to have taken this warning very seriously. The Russian president is blustering onward like a white bear, and yesterday his aide Sergei Glaziev made use of the public media outlet Ria Novosti to respond to the American threats with frank promises of a ‘financial apocalypse.’ “These attempts to announce sanctions against Russia will lead to the crash of the American financial system and the end of the USA’s domination of the global financial system,” he proclaimed defiantly.

Meanwhile, the Russian ambassador to the U.N., Vitaly Churkin, has maintained that with Ukraine “on the brink of civil war,” the deposed Ukrainian president Viktor Yanukovitch asked for Russian military aid from Vladimir Putin, in order to “defend the Ukrainian population.” A little earlier, Putin ended his silence on the matter and denied Russian involvement in Ukraine, denouncing a “coup d’état against the only legitimate president.” However, while denying any “occupation” by Russian forces, and insisting he is not tempted to launch an attack, President Putin has not ruled out these possibilities.

“It is not necessary to send Russian troops for the moment … but this possibility exists,” he stated, adding that Russia reserved the right “to resort to all possible means” in order to protect its citizens in the former Soviet Republic, especially in Crimea, where Russian citizens comprise 60 percent of the population. Putin, at least, cannot be accused of mincing his words.

Though he does not necessarily admire Yanukovitch, the Kremlin leader nonetheless considers him “Ukraine’s only legitimate president.” This belief colors the whole of Putin’s reading of the recent events in Ukraine: “There can be only one assessment of what has happened in Kiev and in Ukraine: There has been an unconstitutional coup d’état, a taking of power by force of arms.”

Moreover, the decidedly combative Russian president has accused the West of resorting to having “instructors” train “combat units,” alluding to the Ukrainian demonstrators. Such declarations tend to raise ire in the West, which has threatened further sanctions against Moscow. An American official travelling with Secretary of State John Kerry has let it be known that U.S. sanctions against Russia will “probably be enacted within the next week.”

While Moscow promises the apocalypse in Washington, Russian diplomatic chief Sergei Lavrov has declared that the threatened sanctions “will not alter Russia’s position on Ukraine.” This diplomatic standstill risks becoming more entrenched by John Kerry’s visit yesterday to Kiev to show his support for the new power in Ukraine. The Secretary of State’s luggage included “significant economic assistance” for Kiev and a plump envelope containing $1 billion dollars in the form of an international loan.

In support, an IMF team has also shown up in Ukraine for talks on an aid plan with the new authorities, who have requested financial help from the institution. This aid, however, may not be enough to rescue an economy on the brink of collapse after Moscow’s decision not to extend its agreement to sell low-price gas to Ukraine.

“Seeing that Ukraine is not fulfilling its obligations, not fulfilling the treaty on the supply of low-price gas as set out in the contract, Gazprom has decided not to extend the duration of this discount, effective as of next month,” declared Alexei Miller, CEO of the Russian gas giant. Emanating from this burgeoning war between Russian and the West in Ukraine, it is difficult to ignore a powerful smell of gas.