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International Relations: Impact of Ukraine Crisis on International Business - Essay Example

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This paper makes an analysis of the implication of the Ukrainian Crisis on international business while appreciating the fact that the crisis has ceased being an internal matter to one pitting Russia on one hand and most of the European countries and the United States on the other.   …
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International Relations: Impact of Ukraine Crisis on International Business
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Download file to see previous pages Ukraine has established closer economic ties with Russia over the years especially due to its strategic position as a gateway for Russian oil and gas to reach Europe. However, this positioning has also led to increased conflict within and outside Ukraine as both Russia and the European Union seek to exert their influence over the country is therefore natural that the Ukrainian Crises has a significant impact on international business as pro-Russian and pro-European forces clash inside the country. This essay makes an analysis of the implication of the Ukrainian Crisis on international business while appreciating the fact that the crisis has ceased being an internal matter to one pitting Russia on one hand and most of the European countries and the United States on the other.
The beginning of the Ukrainian Crisis was greatly influenced by the events leading to the ouster from power of Russian-backed President Viktor Yanukovych. President Viktor Yanukovych was removed from power following widespread protests against his decision to suspend the EU–Ukraine Association Agreement in favour of developing closer ties with Russia (Yakovenko, 2014; Fisher, 2014). Pro-Russian separatists in Donetsk and Luhansk were also emboldened by the annexation of the Ukrainian peninsula of Crimea by Russia. The decision by Viktor Yanukovych not to a trade deal with the European Union was seen by many pro-European Ukrainians as propagating the interests of Russia instead of promoting policies positive outcomes for the people of Ukraine. Russia reacted to these assertions by providing financial incentives, which included offering a 50 per cent price reduction on natural gas in addition to 15 billion dollars as financial aid package for the economically weak country.
Following Viktor Yanukovych’s removal from office, and replacement with Arseniy Yatsenyuk who is a pro-Western technocrat, there was an escalation of tension between Russia and Ukraine. Russia reacted to the ouster of its ally by declaring it an illegal revolution followed by deployment of its troops into Crimea to take control of military facilities and ports.   ...Download file to see next pagesRead More
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