BREAKING: Russia recognizes expanded borders of separatist republics

President Putin confirmed that Russia recognizes expanded borders of the breakaway republics in the Donbas. Head of Russia did not indicate what the 'expanded' borders are and if, indeed, they are the entire regions. He also hopes that Ukraine and separatists will be able to reach agreement regarding this matter.

The map below shows which areas could potentially be occupied by separatists.

Source: Ukraine National Security and Defence Council/ BBC via Forexlive

Putin reiterated that Ukraine needs to revise its approach to NATO membership. Russia's decision raises the risk of an escalation of the armed conflict, as the separatist forces have to force the Ukrainian army to retreat in order to seize additional territories.

RUS50 rebounds despite intensifying geopolitical tensions, however this may be related to profit-taking after recent sharp declines. Index is approaching major resistance around 1210 pts. Source: xStation5

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