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from The Great Debate:

Five smart takes explain the Russia-Ukraine conflict from square one

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Ever since the Ukrainian revolution in February this year, the Eastern European country has witnessed spiraling political instability and bloodshed.

Former President Viktor Yanukovich, a Kremlin ally, was driven out by demonstrators in the city’s Independence Square after he refused to sign a political and trade accord with the European Union, which would have brought Ukraine closer to the West.

So far, the conflict has led to the annexation of Crimea by Russia2,593 civilian deaths — not including the 298 victims onboard when Malaysia Airlines flight 17 was shot down by an antiaircraft missile -- and more than 730,000 kicked out of their homes, according to the United Nations High Commissioner for Refugees. Many cities eastern cities, such as Donetsk and Luhansk, where the majority of fighting is taking place, are heavily damaged.

The conflict has also led to the most wide-sweeping Western economic sanctions against Russia since the fall of the Soviet Union.

from MacroScope:

Jaw jaw and war war

An Ukrainian serviceman is seen next to a sight for a gun near the eastern Ukrainian town of Luhansk

Pro-Russia separatists at talks with representatives from Moscow and the OSCE in Minsk said they would be prepared to stay part of Ukraine if they were granted "special status", which is unlikely to be acceptable to Kiev.

The talks will continue later in the week and come as the Ukrainian military faced a run of reverses on the battlefield which Kiev says have been engineered by the intervention of at least 1,600 Russian combat troops.

from MacroScope:

Nearer the brink

A man walks past cutting boards, that have been painted with images of Russia's President Vladimir Putin, at a street store in the center of St. Petersburg

Ukraine is nearer the brink with Russian forces now pretty clearly operating over the border. The past week has seen Ukrainian forces flee in the path of a new rebel advance which Kiev and its western allies says has been directly aided by Moscow's forces.

Russian President Vladimir Putin called on Sunday for immediate talks on "statehood" for southern and eastern Ukraine, though his spokesman tried to temper those remarks, that following an aggressive public showing in which Putin compared the Kiev government to Nazis and warned the West not to "mess with us".

from John Lloyd:

Russian ‘realism’ is winning now, but will fail in the end

Russian President Putin speaks to the media after talks with Ukrainian President Poroshenko in Minsk, Belarus

The world is no longer divided by communism vs. capitalism. But it’s still divided by ideologies that have their clearest expression in the policies of Russia and the United States. That division contrasts liberal and realist views of the world.

Russian President Vladimir Putin’s realist stance has won ground. No country will help Ukraine get Crimea back, which Russia annexed in March. There’s no invitation pending for Ukraine to join the European Union – the more so since the new president of the European Commission, Jean Claude Juncker, has ruled out any applications for membership for at least five years. And NATO will not rush to admit a nation that it would be pledged to defend from armed incursion.

from Full Focus:

The Ukraine front

Ukraine continues its offensive against pro-Russian separatists as NATO accuses Russia of launching a new military incursion across its eastern border.

from The Great Debate:

As if things weren’t Badenov: Even in good times, Russians are villains in Hollywood

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The fact that Moscow is behaving badly -- with President Vladimir Putin meddling in Ukraine’s presidential affairs last December, annexing Crimea in March and now, despite denials, likely supporting pro-Russian separatists in eastern Ukraine -- has validated Americans’ view of “evil” Soviets lurking in the new Russian empire. Even before Putin took back Crimea, more than 60 percent of Americans regarded Russia as a bad guy on the world stage.

Politics is largely to blame, but Hollywood may be the true villain in this drama. American culture never adapted to Moscow’s friendlier face. Though the Cold War was over, movie executives decided to ignore that memo. Russia may have been trying to leave behind its bad old days, but in the movies, Russians were still the bad guys.

from The Great Debate:

Ukraine fight shows how far Russia’s star has fallen from Soviet ‘glory’


How far the Soviet star has fallen A statue of Yuri Gagarin, the first man in space, stands near Sputnik in the first gallery of the Memorial Museum of Cosmonautics in Moscow. REUTERS/Jason Fields Russia's just not the same under President Vladimir Putin. It wasn't long ago that Russia didn’t need to paint its military convoys a pale white to cross international boundaries. The trucks and tanks were green and boldly emblazoned with red stars -- not crosses -- on their sides and turrets. And when they ...

View "How far the Soviet star has fallen" on Spundge

from The Great Debate:

Pity Moscow’s foodies as Putin’s sanctions bite deep

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I find Vladimir Putin annoying at the best of times, but this month my distaste has blossomed into unbridled loathing. By imposing sanctions on food imports from the United States, European Union, Canada and Japan, Russia’s kefir-drinking head of state scuppered my chances of making a decent plate of cacio i pepe or a batch of brownies for the next calendar year. The specter of Soviet-era scarcity is already making itself felt in eerie ways in supermarkets all over Moscow.

An entire section of the once expansive dairy aisle at one market is empty and shuttered with a sign citing “technical difficulties” where once Irish butter, French creme fraiche and Finnish skim milk stood proudly alongside Russian sour cream, kefir and milk. The Indian host of a sushi restaurant in my neighborhood, hugely popular with Japanese businessmen and diplomats, shook his head in despair, as he relies heavily on fish imports from Norway for his delectable sashimi and sushi. Heading back to Moscow from Italy yesterday, I loaded up my suitcase with 10 pounds of parmesan, vacuum-packed smoked ham and elegant jars of sage, rosemary, basil and mushroom pesto. Less than a week ago, they were all available at select grocery stores and wholesalers. Now, everyone is scrambling.

from The Great Debate:

In Iraq, U.S. is spending millions to blow up captured American war machines

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Last week was a weird one for American military hardware.

In the United States, Mine-Resistant Ambush Protected vehicles (MRAPs), AR-15s and camouflage body armor all made an appearance on the streets of a suburb in the heartland, helping to give a tense situation the push needed to turn into a week of riots. American citizens in Ferguson, Missouri, feeling they were being occupied by a foreign army, rather than their friendly neighborhood cop on the beat.

Riot police stand guard as demonstrators protest the shooting death of teenager Michael Brown in Ferguson, Missouri

MRAPs didn’t get a better rap overseas, either. In what’s still being called Iraq — at least for the sake of convenience -- the U.S. Air Force has resumed bombing missions in the northern part of the “country.” The aim of the missions is stated as being the defense of a minority group known as the Yazidis, who practice a religion unique to themselves and are under threat by the Islamic State, a jihadi group that controls a large chunk of territory in Syria and Iraq.

from Global Investing:

Sanctions bite Russia but some investors are fishing

By Andrew Winterbottom

Russian stocks are up today, for the fifth day in a row and at the highest level in two weeks. What's going on? As we wrote  here earlier in the week, foreign investors have been fleeing this market.  However it could be that some of them are starting to put aside concerns about the potential for further sanctions on Moscow and are scouring Russia's stock markets for contrarian buying opportunities.

Russian stocks, chronically undervalued, are trading now at a discount of more than 60 percent to broader emerging markets, and to China which by all accounts is the standout beneficiary of the Russian woes. Just how cheap Russian shares are can be gauged from the fact they trade at a discount event to turbulent Pakistan. Here is a link that compares Russian equity valuations with other emerging and developed markets:  http://link.reuters.com/guv77v

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