[Summary] Day After Biden-Putin Call... US Says Russia Could Invade Ukraine Immediately

U.S. President Joe Biden (left) and Russian President Vladimir Putin

[Asia Economy New York=Special Correspondent Joselgina, Reporters Sunmi Park, Junho Hwang] "A large-scale military action by Russia could begin at any moment."

The day after the phone negotiations between U.S. President Joe Biden and Russian President Vladimir Putin ended in failure, senior U.S. officials issued successive warnings of an "imminent Russian invasion of Ukraine." Amid significantly increased financial volatility originating from Ukraine, concerns about the global supply chain are also intensifying.

Jake Sullivan, U.S. National Security Advisor, said in an interview with CNN on the 13th (local time), "Considering Russia's troop buildup and operational methods, there is a possibility of large-scale military action soon."

Sullivan emphasized, "An invasion could be launched before the Beijing Winter Olympics end," adding, "The whole world must be prepared." He also predicted that Russia's military action would likely begin with missile and bomb attacks. President Biden also spoke with Ukrainian President Volodymyr Zelensky for about 50 minutes that day but failed to find any concrete solution.

John Kirby, Pentagon spokesperson, also appeared on Fox News that day and stated that Russia's large-scale military operation could occur at any time. These remarks from the U.S. came following President Biden's 62-minute phone negotiation with President Putin the previous day, indirectly indicating that the U.S.-Russia summit call yielded little result. Earlier, The New York Times (NYT) reported, citing multiple officials, that U.S. authorities had obtained intelligence suggesting Russia was considering February 16 as the start date for military operations.

As countries issued evacuation orders amid the possibility of a Ukrainian invasion, domestic companies are also progressively repatriating their expatriates. According to the industry on the 14th, Samsung Electronics and LG Electronics, which have sales subsidiaries in Ukraine, recently first repatriated expatriates' families and then completed the withdrawal of remaining local employees. Some companies like Hankook Tire and POSCO International are temporarily relocating employees to other overseas regions or moving them back to Korea.

If military conflict becomes a reality, global economies will inevitably plunge into chaos. As signals of an imminent invasion intensify, major countries' stock markets have plunged sharply, and international oil prices have soared, significantly increasing recent market volatility. Bill Adams, Chief Economist at Comerica Bank, predicted, "A Russian invasion will worsen inflation by driving energy prices higher." Currently, oil prices are in the $90-per-barrel range, but there are expectations they could exceed $100 and even reach $120 per barrel. Russia is a major crude oil producer and natural gas exporter.

Additionally, since Ukraine ranks as the world's fifth-largest wheat exporter, negative impacts on the international grain market are also anticipated. Peter Bukvar, Chief Investment Officer (CIO) at Bleakley Advisory Group, expressed concern, saying, "This situation will push up prices of oil, wheat, and other commodities," adding, "This could make central banks' efforts to combat inflation even more difficult." The Ukraine crisis could be a significant variable in the U.S. Federal Reserve's actions, which have taken strong measures to curb inflation at a 40-year high. If Western countries' sanctions on Russia, including in semiconductors and finance, intensify, the repercussions could be even greater.

On Monday the 14th, the domestic stock market could not avoid a sharp decline. As of 10:44 a.m., the KOSPI had dropped more than 2%, falling to the 2690 level. At the same time, the KOSDAQ index was down by over 3%.

This content was produced with the assistance of AI translation services.