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Russia invades Ukraine – Oil on the way over $100

Tanks a lot in Ukraine -ENB

Tanks move into the city, after Russian President Vladimir Putin authorized a military operation in eastern Ukraine, in Mariupol, February 24, 2022. REUTERS/Carlos Barria

Everything is starting to show that Putin is going to annex the southern part of Ukraine just over Crimea. This will get Russia access to year-round military and sub bases in the Black Sea. With the new energy alliance with China and the dependence of the EU on natural gas from Russia, sanctions will not hurt Russia, only the individual billionaires the west singles out. 

Russian forces invaded Ukraine by land, air and sea on Thursday, confirming the worst fears of the West with the biggest attack by one state against another in Europe since World War Two.

Russian missiles rained down on Ukrainian cities. Ukraine reported columns of troops pouring across its borders into the eastern Chernihiv, Kharkiv and Luhansk regions, and landing by sea at the port cities of Odessa and Mariupol in the south.

Explosions could be heard before dawn in the capital Kyiv. Gunfire rattled out near the main airport and sirens blared across the city.

Ukraine’s President Volodymur Zelenskiy said Kremlin leader Vladimir Putin’s aim was to destroy his state.

“Putin has just launched a full-scale invasion of Ukraine. Peaceful Ukrainian cities are under strikes,” Ukrainian Foreign Minister Dmytro Kuleba said on Twitter.

“This is a war of aggression. Ukraine will defend itself and will win. The world can and must stop Putin. The time to act is now.”

EU foreign affairs chief Josep Borrell said: “These are among the darkest hours of Europe since the Second World War.”

A resident of Ukraine’s second largest city Kharkiv, the closest big city to the Russian border, said windows in apartment blocks were shaking from constant blasts. Kharkiv was gripped by panic as people tried to flee, said the resident, who asked not to be identified.

Initial reports of casualties were sporadic and unconfirmed. Ukraine reported at least eight people killed by Russian shelling and three border guards killed in the southern Kherson region.

Ukraine’s military said it had destroyed four Russian tanks on a road near Kharkiv, killed 50 troops near a town in Luhansk region and downed six Russian warplanes in the east.

Russia denied reports that its aircraft or armoured vehicles had been destroyed. Russian-backed separatists claimed to have downed two Ukrainian planes.

In a televised declaration of war in the early hours, Putin said he had ordered “a special military operation” to protect people, including Russian citizens, subjected to “genocide” in Ukraine, an accusation the West calls absurd propaganda.

“And for this we will strive for the demilitarisation and denazification of Ukraine,” Putin said. “Russia cannot feel safe, develop, and exist with a constant threat emanating from the territory of modern Ukraine…All responsibility for bloodshed will be on the conscience of the ruling regime in Ukraine.”

U.S. President Joe Biden said his prayers were with the people of Ukraine “as they suffer an unprovoked and unjustified attack”. He promised tough sanctions in response, and said he would swiftly consult with other world leaders.

The prospect of war and sanctions disrupting energy and commodities markets posed an immediate threat to a global economy barely emerging from the pandemic. Stocks and bond yields plunged, while the dollar and gold rocketed higher. Brent oil surged past $100/barrel for the first time since 2014.

“There are no buyers here for risk, and there are a lot of sellers out there, so this market is getting hit very hard,” said Chris Weston, head of research at broker Pepperstone.

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