Mediaboss Marketing

Ukraine began an offensive against separatists in its eastern regions, recapturing an airport amid claims Russian special forces were supporting the anti-government groups.

Units from Ukraines Interior Ministry yesterday ousted pro-Russian activists whod seized the airfield in Kramatorsk, though there were conflicting accounts on casualties. While there were no reports of violence overnight, two Ukrainian soldiers were kidnapped, according to the Interfax news service. U.S. Representative Mike Rogers, chairman of the House Intelligence committee, accused Russia of sabotage.

There are Russian citizens who are, again, military and intelligence operatives in eastern Ukraine fomenting this trouble, Rogers said yesterday in an interview on CNN. They are recruiting, and theres some level of training.

The airport operation marked Ukraines first foray against armed activists holding government buildings in cities near the Russian border. Efforts to contain the insurgency risk escalating tensions with Russia, which warned of a potential civil war. NATO says Russia has 40,000 troops massed on Ukraines border after its annexation of Crimea last month.

With tensions running high, the U.S. and its European allies are threatening a new round of penalties against Russian interests if the crisis continues. Envoys from Ukraine, Russia, the U.S. and European Union are scheduled to hold talks tomorrow in Geneva on the situation.

Sanctions imposed by the U.S. and EU have already had an impact. Russias Micex Index of equities has lost 12.7 percent this year, while the ruble has weakened 8.9 percent against the dollar. After declines yesterday, the benchmark stock index gained 0.2 percent today. The ruble appreciated 0.3 percent.

The unrest has also hurt Ukrainian asset prices. The hryvnia, this years worlds worst performer against the dollar among more than 100 currencies tracked by Bloomberg with a 30 percent loss.

The clashes have prompted diverging views from Russia and the U.S. Speaking with United Nations Secretary-General Ban Ki-moon, President Vladimir Putin called the events unconstitutional and demanded international condemnation of the crackdown, according to a statement e-mailed by the Russian leaders press service.

The U.S. is admiring the restraint show by Ukraine, with Russia directly and indirectly supporting the provocations, White House press secretary Jay Carney said.

Polands Foreign Minister Radoslaw Sikorski said in an interview with Polish broadcaster TVN24 that Putin has a credibility problem in denying Russian troops are in Ukraine after similar denials in Crimea proved to be false.

Link:
Ukraine Starts Offensive, Says Russians Among Separatists