Ukraine

Crisis

By Apoorva Yadav
MBA Trainee
Institute of Business Management & Research
University of Mysore

The Origin & Conquest of Crimea

History of theCrimean Peninsula starts from 5th

century BC
SeveralGreek colonieswere established along its
coast
Since then Crimea has endured series of conquests
and invasions by:
Greeks
Romans
Huns
Kievan Rus
Byzantium
Mongols
Crimean Khanate &
theOttoman Empire

1783

Crimea Annexed by the Russian

Empire

Crimean Autonomous Soviet Socialist

1921
Republic was created
194554

This Republic of Crimea became a

province of Russia

1991

Crimea had status of Autonomous

Republicwithin Ukraine

2014

Crimea Annexed by the Russian

Federation

And. . .
Russia pledged to uphold the territorial integrity of

Ukraine in
amemorandum, also signed by the US &
UK
Russian PresidentBoris Yeltsin& Ukraine'sLeonid
Kravchuk split theSoviet Black Sea Fleetbetween:
Russia &
The NewUkrainian Navy

On 14 October 1993:
the Crimean parliament established the post ofPresident
of Crimea&
Agreed the quota of Crimean Tatars (who were deported out as a
punishment of supporting Nazis) representation in the Council to
14
The chairman of the TatarMejlis,Mustafa Abdlcemil

 Next, the Crimean Tatar leader,Yuriy Osmanovwas

murdered
Series of assassinations & attacks on Tatar
community & Ukrainian officials took place
On 30 January 94, the pro-RussianYuriy
Meshkovwaselected President but he faced
conflicts with parliament
On 8th Sept. Crimean parliament degraded the
President's powers to the head of executive only
On 17 March 95, Ukraineintervened, scrapping the
Crimean Constitution and removing Meshkov for:

his actions against the state &

promoting integration withRussia

Post Ukraines Annexation Over

Crimea
After the Treaty of Friendship, Cooperation, &

Partnership in 1997, Moscowrecognized

Ukraine's borders & territorial integrity
Russia also accepted Ukraine's sovereignty on
Crimea & Sevastopol
Russia was to receive
80% of the Black Sea Fleet &
Use of military facilities in Sevastopol on

20yrlease

Controversy of the ownership of

alighthouseonCape Sarych between Ukraine &

Russia still remain

What Actually

Rising Tension
September 2008- Ukrains Foreign

MinisterVolodymyr accused Russia of giving

outRussian passports in Crimea
January 2009- Nalyvaychenko, acting head
ofSecurity Service Ukraine started criminal
proceedings against pro-Russian association
24 August 2009- anti-Ukrainian demonstrations
held in Crimea by ethnic Russian residents
Crisis unfolded in Feb 2014 afterUkrainian
revolution& theinterim appointmentof
Yatsenyuk Government
Russia opposed the new Acting President of

 23 Feb- Thelaw on languagesof minorities is

abolished, including Russian

26 Feb- Thousands of pro-Russian & pro-Ukraine
protesters clashed inSimferopol in front of
parliament
March 11: After disagreements with Ukraine,
the Crimean Parliament& City Council of
Sevastopoladopted a resolution:
To show intention to declare themselves
independentas united nation
Possibility of joining theRussian Federationas
a federal subject - if voters approve to do so

Crimea Under

Crimea Under Russia

March 16- Officials said that 96% votes in

Crimeasupported to join Russia

However, the referendum had no international recognition
& no other country had sent its official observers
March 17- Crimean parliament declared independence
fromUkraine& requested to joinRussian Federation
March 18- President Putin declared Crimea a part of Russia
All actions of Crimean parliament disregarded by
Ukrainian constitutional court
TheUnited States& theEuropean Unionconsider the vote
illegal
March 27- U.N. General Assembly passed non-binding
resolution declaring Crimea's Moscow-backed referendum
invalid

Impact On Global

Impact On Global Economy

The Ukrainian economy is going through a

balance of payments adjustment & will witness

heavy loss due to the Crimea Crisis
IMF bailed out $17 billion to Ukraine but govt. is
looking at tight spending this year
Russian stock market is down 20% this year &
IMF forecasted GDP fall from 1.3%-0.2% in 2014
A third of Europes gas comes from Russia, thus
the European Union can be at risk
Russia & Ukraine are suppliers of energy,
palladium, nickel, titanium & grain risking
supply chains of companies using these

 Troubles in Ukraine will hurt Russian banks, which have

leant heavily to Ukraine

Automakers in Germany will be heavily affected, since
their manufacturing takes place in Russia
More sanctions from US will put Russia into deep
recession hitting consumers goods, technology & the
financial sector
Russia depends on European imports to keep its stores
filled
On the other hand uncertainty in global markets could
boost demand for:
U.S. government bonds
German bonds
Japanese bonds &
U.K. bonds

Thank You