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Vladimir Putin has ordered Russian troops into Ukraine on a “peacekeeping mission” after recognizing two Moscow-backed breakaway territories. Putin’s recognition of the two Moscow-backed separatist regions in eastern Ukraine effectively hobbles the prospects of a diplomatic solution to the crisis as he put Russia on a war footing.
In an angry televised speech, Russia’s president cast doubts about Ukraine’s statehood and accused the west of using the country as a tool to destroy Russia.
Putin, who devoted long portions of his speech to his version of Ukraine’s modern history, vowed to “punish” those he accused of massacring Russians in Odesa in 2014. He also made clear that his grievances with Kyiv stretched to the country’s existence in its current shape.
“You want de-communisation?” he asked, in a reference to Ukraine’s efforts to move beyond its Soviet past and Russia’s influence. “That suits us fine. But don’t stop halfway. We’re ready to show Ukraine what real de-communisation means for it.”
The Donetsk and Luhansk people’s republics were then formally recognized at a signing ceremony in the Kremlin after Putin warned that Russia would hold Ukraine responsible for any “ensuing bloodshed” in the region. Read our explainer on why Putin has put these two regions in his sights.
The White House said President Joe Biden would soon issue an executive order that would ban new investment, trade and financing by US people and entities in the Luhansk and Donetsk regions.
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Go deeper: Russia’s threats to invade Ukraine are forcing China to strike a balance between President Xi Jinping’s growing support for Vladimir Putin and Beijing’s self-interest in the region’s stability, according to analysts.
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Markets: Russian stocks plummeted in turbulent trading as concerns mounted that Moscow could soon launch an invasion of Ukraine.
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Opinion: Mohamed El-Erian argues that while it is tempting to pin recent market volatility on the Russia-Ukraine situation, there are structural issues at play.
Thanks for reading FirstFT Asia. What questions do you have about the crisis in Ukraine? Share them with us at firstft@ft.com — Emily
Five more stories in the news
1. Virgin Hyperloop axes helped its staff in focus on freight The US company said that 111 people were laid off on Friday, as the group focuses on delivering a cargo version of the experimental transport, which propels pods through low-pressure tubes at speeds of up to 670mph.
Virgin Hyperloop’s experimental transport system propels pods through low-pressure tubes at speeds of up to 670mph
2. Trump launches Truth Social app Donald Trump’s social media app made its debut as the former US president tries to build a conservative rival to Twitter and Facebook ahead of a possible 2024 campaign to retake the White House.
3. Ownership of Lycra at stake Investors pursuing defaulted loans made to a subsidiary of Shandong Ruyi — the fashion empire sometimes referred to as the “LVMH of China” — have begun proceedings that could ultimately win them control of The Lycra Company.
4. China new house prices pick up in January The increase in prices follows several months of decline as a liquidity crisis in the country’s property sector and repeated flare-ups of the coronavirus depressed demand.
5. Lotus explores IPO options The sports car brand is exploring a stock market listing of its China-based luxury lifestyle business within two years to help fund an international expansion and investment in electric vehicles. Lotus is aiming to meet growth targets of a 100-fold rise in sales over the next six years, said one of its most senior executives.
Coronavirus digest
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Boris Johnson has announced the ending of all remaining coronavirus legal restrictions in England, but only after a fierce cabinet row.
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The amount of extra money to be distributed by advanced countries to developing nations Struggling under the financial impact of the coronavirus pandemic has fallen short of expectations.
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Thousands of residents have left Hong Kong through the airport since pandemic travel restrictions came into place in 2020 as Covid spread to hit another record.
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Bored with work from home? Try the “Third Space”. Not the office, not the home but somewhere in between: co-working spaces.
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The response of rich countries and multilateral institutions to the pandemic’s financial impact on poor countries was inadequate and ignored the concerns of governments and the private sector, said Ghana’s finance minister.
The day ahead
PyeongChang Global Peace Forum In its fourth year, the event which marks the anniversary of the 2018 PyeongChang Olympics, will take place online and in person at the PyeongChang Alpensia Convention Center as participants work to build inter-Korean peace and trust. (PR Newswire)
earnings HSBC Holdings and InterContinental Hotels Group will report results.
Scotland’s long-term Covid-19 strategy unveiled First minister Nicola Sturgeon is to publish Scotland’s longer-term Covid-19 strategy today. She previously indicated she was reluctant to match plans that would in effect scrap remaining restrictions this month.
To give school students the latest insights on climate change, the FT is hosting a free digital event on March 1. Sign up here and look out for our Climate Change for Schools report on March 19 packed with stories, graphics and tips on how young people can make an impact.
What else we’re reading
Learning to manage uncertainty in Hong Kong The European Chamber of Commerce predicts Hong Kong will not open up to the world until at least summer 2023. The Asian financial center has become a case study of managing in extreme uncertainty and offers lessons for companies with overseas outposts.
Erdogan’s gamble, in charts President Recep Tayyip Erdogan triggered a collapse in the Turkish lira last year when he ordered the central bank to aggressively cut borrowing costs despite soaring inflation. Emergency measures have since restored calm, but analysts are skeptical it will hold.
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Richard Nixon in China: 50 years later Half a century on, the Nixon-to-China moment has lost its sparkle and ability to inspire. This year, the summit that captivated the world was not between China and the US, but China and Russia, as Xi and Russian president Vladimir Putin met ahead of the opening of the Beijing Winter Olympics. (Nikkei Asia)
EU and Poland on the brink The European Court of Justice ruled last week that regulations to protect the EU budget from rule of law violations by member states were legally solid, throwing the European Commission further along a collision course with one of the bloc’s biggest members: Poland.
Metaverse vs employment law: the reality of the virtual workplace It is unclear how employee protections apply in the universal digital realm. What counts as harassment? And can an avatar be discriminated against?
Companies that want to occupy the metaverse will have to consider how to protect workers’ data while requiring them to participate in a virtual world
Books
An essay on carnivore confusion, a whimsical Neil Gaiman story is given a graphic twist, non-fiction on the family fortunes of the Sassoons and how creative writing was used as a cold war weapon, plus small-town stories from rural Ireland and more. Catch up on our best books of the week.
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