Russia Recognizes Donbas Pro-Russian Rebels' Independence... Orders Military Action (Comprehensive)

Global Stock Markets Wobble Again...Geopolitical Crisis Escalates
President Moon Chairs NSC...Discusses Economic Impact Including Supply Chains

[Image source=Reuters Yonhap News]

[Asia Economy Reporters Hyunwoo Lee and Jieun Lee] Russian President Vladimir Putin on the 21st (local time) approved the independence of pro-Russian rebel groups in the eastern Donbas region of Ukraine and ordered Russian troops to enter the area. As Russia begins direct military intervention in the Ukraine crisis, the United States and Western countries are taking a tough stance. Amid the peak of war fears and turmoil in the global financial markets, concerns about the Korean economy are also rising.

On the same day, President Putin stated in a national address broadcast on state TV, "It is necessary to make a decision to recognize the independence and sovereignty of the Donetsk People's Republic (DPR) and the Luhansk People's Republic (LPR)," and immediately signed a bill at the Kremlin recognizing the independence of the DPR and LPR.

He then signed treaties of friendship, cooperation, and mutual assistance with both sides and instructed the Russian Ministry of Defense to dispatch peacekeeping forces to the DPR and LPR regions. CNN reported, citing a senior U.S. official, that it is highly likely that the Russian troops will move to the area within the day.

In his address, President Putin emphasized Russia's historical ties to the Donbas region, underscoring sufficient justification for military intervention. He claimed, "The Donbas region has historically been Russian territory. The people here are our family and kin," and added, "Currently, the residents of the Donbas region are being shelled daily by the Ukrainian government forces."

The United States, the European Union (EU), and the North Atlantic Treaty Organization (NATO), among Western parties, simultaneously issued statements condemning Russia's actions. The U.S. government immediately announced an executive order imposing economic sanctions on the DPR and LPR. The EU and NATO also expressed their intention to announce sanctions soon, stating that the measures violate the Minsk agreements signed in 2015 between Russia, Ukraine, and pro-Russian rebels to maintain peace in the Donbas region.

As military tensions between the two sides escalated again, major stock markets fluctuated. The Russian RTS index plunged by a staggering 13.21%, while Germany's DAX index fell 2.07%, and France's CAC40 index dropped 2.04%. Asian markets on the 22nd also showed weakness. South Korea's KOSPI and KOSDAQ recorded declines of over 1% in the morning session. Japan's Nikkei 225 index also opened trading down 1.47% compared to the previous session.

The South Korean government is closely monitoring the situation and is alert to the potential economic impact. President Moon Jae-in simultaneously chaired the National Security Council (NSC) and the Foreign Economic Security Strategy Meeting on the same day to discuss related countermeasures. Officials from the foreign affairs, security, and economic departments also attended to exchange views on the security threats posed by the Ukraine crisis and its impact on the Korean economy and supply chains, as well as possible responses.

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