Putin Announces Special Operation in Donbass, Ukrainian Airspace Closed To Civilian Flights, Global Markets In Turmoil

The special military operation will be aimed at “the defense of” the newly-recognized republics of Donetsk and Lugansk

Russian President Vladimir Putin has announced he ordered his country’s military to conduct a special operation in the Donbass region after the leaders of the breakaway republics asked Moscow for military assistance in response to what they claim is an increase in “Ukrainian aggression.”

“Circumstances require us to take decisive and immediate action,” the order reads. “The People’s Republics of Donbass turned to Russia with a request for help. In this regard, in accordance with Article 51, part 7 of the UN Charter, with the sanction of the Federation Council and in pursuance of the friendship treaties ratified by the Federal Assembly and mutual assistance with the Donetsk and Lugansk People’s Republics, I have decided to conduct a special military operation,” Putin concludes.

The decision comes days after Moscow recognized the independence of the Donetsk and Lugansk breakaway republics in the Donbass, alleging Kiev had not lived up to its obligations under the Minsk agreements struck in 2014 and 2015 to resolve conflict between separatists and the Ukrainian government.

Officials later authorized what they describe as a “peacekeeping operation” in the region. Western leaders for months had predicted a looming incursion, claiming Russia has amassed troops near its border with Ukraine and in neighboring Belarus, where Moscow has conducted joint drills in recent weeks.

Russia denied plans for an attack, however, and maintains its actions in the Donbass will be defensive in nature. The United States and its European partners have already imposed sanctions on a series of Russian financial institutions, officials and lawmakers following the recognition of the break-away states, vowing to bring more penalties should Moscow “further invade” Ukraine.

A newly-issued alert says flights are restricted “due to potential hazard for civil aviation’

Airspace all over Ukraine has been restricted for civil flights, according to a notice to airmen (NOTAM) distributed by government agencies and airport operators. The de-facto closure of the airspace went into effect at 01:56 local time on Thursday and is set to last till 23:59 the same day.

The notice cited “potential hazard for civil aviation” as the reason behind the alert.

As Russian President Putin announces a “special military operation” in Ukraine and warns of “consequences” for foreign interference, global markets are turmoiling Zerohedge reports.

US equity futures are rapidly extending losses from the day session, down around 2-3% since the close…

This pushes Nasdaq into a bear market.

VIX futures have spiked above 32…

Bitcoin is getting hammered…

Oil is soaring with WTI above $95…

…and Brent tops $100

US NatGas is spiking back near $5…

And gold topped $1930…

Wheat futures are up over 5%…

Bonds are also bid with 10Y yields down around 8bps from yesterday’s highs now…

Rate-hike odds are falling significantly. The odds of a 50bps hike in March has dropped to 25% (from 40% earlier) and the odds of 7 rate-hikes by Dec 2022 is now down to 20% from 55% earlier…

Stagflation here we come!!

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