Decades ago, the Ukraine was part of the old Soviet empire, over time however it has been given independence from Russia. The government of Ukraine has remained with close ties to Russia over these years. The protests that we have been seeing over months was sparked by when the former president of the Ukraine refused to sign a deal between Ukraine and the European Union which would have created closer ties with the EU and ultimately breaking down of ties with Russia.
After this decision was made, protests rose up around Ukraine but mostly in the capital city of Kiev. In an attempt to disperse these protests the Ukrainian government passed laws which effectively outlawed protests. This created an even stronger opposition and increased the amount of people protesting. The Ukraine’s police force attempted to disperse these protests with force, initially with non-lethal force (i.e. water cannons & rubber bullets.) As a result of this, protesting turned into riots. The government escalated allowing lethal force, in response the rioters did the same, beginning to use fire grenades and marksmen of their own. The resultant clashes of security forces and protesters resulted in loss of life on both sides.
On the 22nd of February 2014 the former president of Ukraine flee’d from his luxurious home with the intent of seeking refuge in Russia. It is known he passed through the town of Kharkiv before moving on to Russia. With the former president now disposed the Ukrainian parliament voted in a new, temporary, president (who is pro-EU relations.)
A portion of the Ukraine still feels ties to Russia, in interviews some of them have described themselves as “Russian without a Russian passport”. This portion of Ukraine feels the forced removal of their elected leader and in-statement of a new one is illegitimate. Indeed they themselves feel the move to bring closer ties with Russia was the correct move for Ukraine.
Brief back story on Crimea: In 2010 the former president renewed a deal with Russia to allow a Russian naval base (the HQ of the Russian Black Sea fleet) to remain on the Crimean peninsula in return for (very) cheap natural gas supplied by Russia.
Protests and clashes between Pro-Russian and Pro-EU supporters begin in the eastern regions of Ukraine, in particular the Crimean peninsula has become the focus of the news. Russia announced that (in its own words), in order to protect its national interests in the Crimean area and to protect the large number of Russian citizens living in the Crimean area it was moving troops in to Ukraine in order to to reinforce and secure it’s bases and reassure the large Russian and Pro-Russian population there. Initially this was done with no such announcement from Russia, several airports were secured and airspace was closed. Several Russian heavy transports landed at these airports carrying what is thought to be several thousand troops.
The western world has been quick to denounce the actions of the Russian military calling their movement of troops an invasion. The US & European countries have announced severe political and economic penalties for Russia should they continue with an advance into Ukraine or start a war. In response to the Russian parliament authorizing military engagement in Ukraine the temporary Ukrainian government has put it’s military on “full combat readiness” recalling reservist forces to active duty and preparing for war.
With the current events that are unfolding in Ukraine, we can expect an upward trend in gold and other precious metals. For the other markets, the Dow is as of today. The Nasdaq is down 30 points and the S&P is down 14. The time to invest in gold is now. Don’t let your investments take a hit from this terrible international event. If you are still unsure of if you should or not, you can order a free gold kit.