Kiev Starts to Descend into Chaos

The situation in the Ukraine has not improved one iota. The first deaths in Kiev-based protests, which began after Ukraine officials shunned a partnership with the European Union perceivable at the behest of Putin Russia, have been reported. Security forces have attacked demonstrators with lethal intent, and the western states have stepped up their attacks on the government of Victor Yanukovich. He is now starting to run out of options, as the Russian president is starting to try to distance himself from the crisis as long as the Winter Olympics in Sochi are just about underway.

The isolation of the country is becoming more apparent, and the economy is really feeling the pinch. That only inflames the situation more as many are blaming his regime for every manner of ill. The Russians want Ukraine to be close, but not a dependency. The currency is collapsing, and many companies are pulling out all their investments.

The European Union is now looking at sanctions and that leaves Putin as Yanukovich’s only ally, but it is at a time when Russia is more concerned with other issues. The terrorist threat to the Winter Games is intense, and Russia can’t spare much to look after events in Ukraine. There are even concerns that Ukrainian nationalists would stage an attack on Russia just to bring attention to what is happening in Ukraine. This is a mess that is spinning out of control far faster than any had anticipated, but the government has refused to talk to the protestors and has only met their demands with escalating violence.

- Chris Kuehl, PhD, Armada Corporate Intelligence

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