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Ukraine PM on Russia invading Crimea: This is the declaration of war

FXStreet (Łódź) - The political tensions between the pro- and anti-Russian groups in Ukraine's Crimea have moved dangerously close to a full-blown military conflict, after Russian President Vladimir Putin ordered troops to seize the peninsula, in order to “protect Russian interests”. No blood had been split but Ukrainian PM Arseny Yatseniuk called the move a declaration of war on Ukraine.

"This is a red alert. This is not a threat,” the PM added urging Putin to "pull back his military and stick to the international obligations."

US Secretary of State John Kerry said that Russia's invading Crimea was an "incredible act of aggression" and threatened economic sanctions if the forces were not withdrawn. He announced that also other countries were "prepared to put sanctions in place” and “isolate Russia economically." Kerry is supposed to visit Kiev on Tuesday in order to show support for the Ukrainian people.

Nevertheless, there was no talk of the US using military forces to stop Putin. US President Barack Obama discussed the situation with Chancellor Angela Merkel and both agreed that the only solution to the crisis could be a political one.

Meanwhile, talks on financial aid for Ukraine are progressing with the International Monetary Fund andG7 finance ministers declaring their willingness to provide a bailout for the country, in exchange for reforms.

USD/JPY had several reasons to fall

USD/JPY Is again under pressure from the early morning starting Monday at 101.53 and reaching 101.25 session low soon; it trades around 101.30 at the moment.
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