Germany put a new gas pipeline on ice and Britain hit Russian banks with sanctions on Tuesday, as the West responded to Moscow’s recognition of two separatist regions in Ukraine and a speech by President Vladimir Putin suggesting more belligerent aims.
Putin said the territory Russia had recognised as independent covered the entire Donetsk and Luhansk regions, not merely the parts currently controlled by the separatists – a move that appeared to increase the likelihood of conflict.
Russia’s parliament approved treaties with the two regions in Ukraine’s east, a day after Putin said he was recognising the independence of the two enclaves, which adjoin Russia and have been controlled by Russian-backed fighters since 2014.
He also signed a decree on deploying Russian forces there, and on Tuesday Russia’s upper house of parliament formally granted his request to use troops abroad with immediate effect. A deputy defence minister asked the chamber to deploy troops in Donbass – an umbrella term for the two regions.
The prospect of a disruption to energy supplies and fears of war — stoked by reports of shelling in some areas and movements of unmarked tanks overnight in the rebel-controlled city of Donetsk — rattled international financial markets and sent oil prices surging to their highest level since 2014.
In Donetsk, some residents celebrated, with cars flying Russian flags and sounding their horns. But several blasts were heard in the city on Tuesday, and some people questioned whether Putin’s moves would bring peace.
Germany is Russia’s biggest customer for natural gas, and the decision by Chancellor Olaf Scholz to freeze the Nord Stream 2 pipeline — built but awaiting approval — was widely seen as one of the strongest measures Europe could take.
Scholz said he had asked his economy ministry to take steps to ensure that certification could not take place for now.
“This is a morally, politically and practically correct step in the current circumstances,” Ukrainian Foreign Minister Dmytro Kuleba tweeted. “True leadership means tough decisions in difficult times. Germany’s move proves just that.”
The Kremlin regretted Germany’s move and said it hoped the delay was temporary. Putin said Russia “aims to continue uninterrupted supplies” of energy to the world.
