russia is now fully integrated into the global economy. $460,000,000,000 worth of commerce between the european unionnd russia. so once you start tightening a noose in terms of trade, everybody gets hurt, including the russians but, also, including the united states and the european union. >> of course, back to your earlier point, the european union is going to be less excited about this concept of trade sanctions, largely because russia has some leverage over the europeans with natural gas that it doesn't have over america, for instance. >> yes, which doesn't mean it won't happen. there are a lot of very wealthy russians with apartments in new york and apartments in london. they would not be happy if they found their assets frozen. so, i am not saying it's out of the range of possibility. but we are certainly not at that stage yet. >> and if any of these sanctions do work, whether it's tier 1 or 2 or 3, it's not necessarily likely to lead to somehow affecting vladimir putin or putting him out of. ? >> no. not putting him out of. but, you know, he has an entourage around him that's wealthytion, oliga

the european union and u.s. have warned russiao annex crimea. >> we propose to move to a further stage of the european response today, with travel bans and asset freezes on individuals. that is one of the things we will be discussing today. i'm confidence we will reach an agreement on that. at the same time, every diplomatic channel remains open to russia. itsalaysia is broadening appeal for international help in the search for the missing flight. authorities have asked 26 countries to support the mission that stretches from kazakhstan to the waters of australia. a news conference very shortly. >> the u.k. chancellor plans to boost construction and the budget. bbc he wouldthe extend the help to buy program. seals have stormed oilip attempting to export from libya. the ship was boarded close to cyprus. more details. what should we know? be asking, what is the story, morning glory? a statement from the u.s. department of defense says that around 10:00 eastern time this boat was boarded by u.s. navy seals because they said it was car

the struggle between the russians and the other half that wants to be integrated into the european union. russia offers a great deal money to pay off the debt and the european did not go to a bidding war to give the other side the tools that they need to make that decision. we have seen this play out. what do you see as that struggle amongst the old satellite to being pulled back into the russian sphere without us getting into a checkpoint charlie sort of confrontation? >> in ukraine is where the demonstrations are taking place. >> i meant ukraine. >> there is an obvious split. what happened, the president of the ukraine vetoed an effort to integrate with western europe. ukraine is very divided between those who would have the economic integration and political affiliation their and their culture tied to russia and those who want to turn to the west. it is playing out right now. 25 killed this morning. this is one of those things where you need two things. this is where you knew that national intelligence council. what is at play? what do we think will affect the outcome? what are the range of p

abe said the national security council will weigh japan's ties with the u.s., the european union, russia, and the international community before deciding its policy. >> translator: the national security council has a key role in monitoring the ukraine crisis, and is working with relevant government agencies. we are watching the situation closely, and will respond appropriately. >> foreign minister fumio kishida said japan should closely monitor how other countries in the eu coordinate their positions. he added the government's bilateral arrangements with russia remain unchanged for now. >>> market jitters over ukraine have settled for now in asia, but it was a mixed session overall. and ramin mellegard from the biz team is here with more on that. >> gene, there was a rebound of sorts that we saw in the equity markets. but again, a little bit of hesitancy, as well. stock trading in europe is sluggish on wednesday. the positive momentum from russian president's comment did not continue for longer than a day. the markets in the region rallied on the previous day after putin said there's no

to see whether russia is going to engage in any dialogue with the european union and more importantly, with the ukraine. that is one of the key things the eu set out. if russia does not do that, we will see european union leaders back here in brussels for another emergency summit to then decide if they are going to go on with the second step, which would be a decision to put into place asset freezes and travel bans. >> david tweed, joining us from brussels. thank you. in russia, president obama says the referendum vote in crimea is a violation of international law. he is also using his executive authority to take aim at russian officials taking aim at russian sovereignty. the president seems to be turning up the heat. >> he is certainly trying to turn up the heat while allowing somediplomatic room for sort of peaceful resolution of what is taking place. specifically, you touched on it, the president stepping into the briefing room and making comments, sending his own actions to turn up the heat, specifically the sub bans on individuals. possibility of sanctions on individuals and enti

committee meeting others said the national security council no way japan's ties with the us the european union russia and the international community before deciding its policy the national security council has the key role in march the ukraine christ and is working with relevant government agents. we are watching the situation closely to respond appropriately. for minister for me and she has said japan should closely monitor how other countries and the eunuch ordinate their positions he added the government's bilateral arrangements with russia remained unchanged for now the turmoil in ukraine is obstructing a japanese a group b in pl supports people affected by the nineteen eighty six chernobyl nuclear accident. volunteers in central japan and then sending medical equipment and funds to the region for twenty four years. they have also been helping to grow grapes eat plants. the roots of the plants are thought to observe radioactive substances from the soil the seeds are used to produce biofuel. however recipients of the aid and that's the japanese to stop sending money. members of the ukrainian civi

an increasing dependence on russian resource, a two-way trade where $300 billion with the european union and russia. concerns that the european economy could suffer if sanctions were to go forward. sanctions, the president has extracted a promise from g-7, formerly known as the g-8 with russia, stricter sanctions on the russian economy. that's his first and foremost audience. yes, they're imposing sanctions on russia. first as an response to the invasion of crimea, and the sanctions on those who are close to vladimir putin. and impose sanctions if russia were to go forward as many believe they will do and invade eastern and southern ukraine. >> mike viqueira, thank you very much. as for the situation on the ground in crimea the takeover now almost complete. forces at the borders but there is till work to be done. jennifer glasse from sevastopol. >> igor spent eight months renovating his apartment. how much will it be? sadly right now i can't really put a price on it, he says, because of the change between russia and ukraine, he says, the rules just aren't clear yet. and that could mean a difference

european union. european union has rejected russia's participation in this process.ned next after the agreement was suspended by the ukrainian president. you know these events in kiev started. and i think the west have some sort of responsibility how these develop. >> what is the way out of this, do you think? what does russians want? >> negotiations of course and political dialogue. today you were witness of a political debate here, which reflected the sentiment and the feelings of the russian society in general on ukraine. a country which this is not some kind of a strange price for us. it is a country that holds millions of ties with russia. personal, economic, political. we cannot stand idle and -- we cannot ignore. but this is a political debate. my profession is diplomacy which is something that works behind the scenes. behind the scenes we will work with the crisis. lavrov has been doing this the whole past week and continues to do that. >> the ukrainian prime minister is meeting the nato secretary-general in brussels. are you not concerned that moscow's actio

not only to take well judged measures and responsiveness, but across the european union for there to be a recognition that russia needs the european union economically just as much or more than the european union needs russia. we need to have the common political will and to organize way toes in a cohesive have the political will and economic leverage in the future to be much clear than it is today. doing that may be one of the longer-term consequences of what russia has done in the crimea. >> sir peter. >> may i put it to the foreign secretary that brussels is probably -- is partly to blame. if the already over and largest european union is going to continue to try to extend its borders towards mongolia, we will indeed finish up with a third world war. every russian knows that the was theof the crimea greatest achievement of catherine the great. ofrussian government whatever political complexion could ever give up the crimea and you could be absolutely certain that the russian people are passionately in support of president putin over this issue. >> i differ a little bit on this. crimea to give the ukraine in 1

prime minister david cameron talks about the situation in the ukraine, and relations with russia and the european union. he says the u.k. will withdraw from preparations for the g-8 summit and reschedule for june in sochi, russia. the u.k. national interest is that the rule of law is upheld. this is about 35 minutes. >> order. questions for the prime minister. prime minister. >> mr. speaker, this morning i have meetings with colleagues and others. in addition to my duties in this house, i shall a further such meetings later today. >> local conservative councils from north hampton to telegraph are minding this campaign. they have also ported this proposal. , inine years in parliament have never heard of a development that had so much public support. for the prime minister use his best efforts to make sure that the outcome is announced as soon as possible? >> i know my honorable friend campaigns vigorously for his constituents and for job creating developments like this one, as i'm sure he is aware, i am not able to get involved in specific learning decisions, but i understand a decision will be made as

where the united states and european union threaten russia with fresh sanctions, activists have social networks calling for a boycott of russian products. heavily targeted with people being urged to switch to finished brands, ukrainian women have responded to crimea with a campaign to deny sex to russian men. >> as part of its eighth birthday celebration last friday, twitter produced the first tool to let users see the other users first ever tweet. you just have to type in the name of the account and hit enter. barack obama made his twitter debut in april of 2007. tom fletcher, from the bid it -- british band, mcfly, took a photo of his wife every day throughout their pregnancy. was toe that it celebrate the arrival of their son's birth. ♪ viewchange is about people making no changes and tackling the world's biggest issues. can a story change the world? see for yourself with "viewchange," a new documentary series. ♪

russia, what it means much more to kamora to france or great britain. thank you. >>> you have been listening to sergey lavrov addressing reporters in london. the two sides, the united states, the european unionand russia seem to be recalcitrance in their position. you hear him saying he recognizes the vote that will take place this weekend as being the will of the people in crimea. dana, your take on what the russian prime minister just said. >> reporter: well, i think -- you know, this conflict has been interpreted and torqued in so many different ways, but clearly i think if you are american or ukrainian or russian you couldn't hear this news conference and think there was any good news that came out of these talks. sergei lavrov was behind me here for just about five hours meeting with u.s. secretary of state kerry and he comes out with saying we do not have a common vision of the problem. so there was not a meeting of the minds. he did say it was technically useful, because i think maybe secretary of state kerry brought some proposals to the table such as protecting ethnic russians, and that has been president putin's position all along that that is why he got involved in the crimea to b

and actually addresses the entire strategic problem is that exists today between russia and ukraine and the european union. man did that too. it could be good be wise to use it. the gemini is pushing for russia to accept an osce observer mission on the ground in ukraine what could a team do that. when the ulysses none of that in this film. organization but it can actually if the permit it. that connection the game impact on the ground and report handed to them and actually also help to calm down when emotions as they existed and the crimean the area and i hope for the last open up the hay. hm that has to wait a moment to switch to a new form of communication can stop because not only on the situation. and this all over the nothing that shopping at the top. some analysts are talking about the collapse of two decades of international security architecture. i think that's going too far. the program he and i think that the activities of the synod of the probe ingredients that russia buy a wood is what russia can consider this as a mechanic an auction and open a two and is in east. much against s and the russi

european international companies, what would the financial impact, especially in europe, be? >> reporter: well, in europe, it could be quite significant, wolf. europe is russia's european union, russia's biggest trading partner. so a lot of business going both ways. these two economies are heavily interconnected. there is a lot of russian money in european financial centers. so in the event that russia were to do this, it could in effect have quite a significant impact. and there's this other russian potential leverage that hangs over europe, as well, which, of course, is russian oil and gas, which europe is still heavily dependent on. all of these factors together could be why europe in particular seems a little less willing, a little less gung ho when it comes to the idea of hitting russian quickly with heavy economic sanctions, wolf. >> so the tension in moscow clearly a palpable, as well. let's see what happens. phil, we'll check back with you. we're waiting for the secretary of state, john kerry, to emerge from his meeting with the russian foreign, sergey lavrov. we expect kerry to make a statement. will it be positive? will it be negative? we're also waiting for more i

. >> as crimea's parliament votes to hold a referendum on leaving russia in 10 days, president obama and his european union allies announce sanctions to punish russia for occupying crimea. some are calling it the worst east-west crisis since the cold war. we'll host a roundtable discussion. venezuelan president nicolas maduro cuts off ties with panama. >> be quiet, sir, and do not meddle with someone who did not call you. venezuela is not going to have a debate about its internal situation. >> debate on the unrest in venezuela, who is protesting. all of that and more. to democracy now, democracynow.org, the war and peace report. i'm amy goodman. russian president vladimir putin is rebuffing warnings from the u.s. and european union as the crisis in ukraine threatens one of the worst east-west standoffs since the cold war. putin held a one-hour phone call with president obama on thursday but continued to reject calls to withdraw his forces from crimea. on thursday, the pro-russian crimean parliament voted to hold a referendum on splitting off from ukraine and joining russia. but the vote's legitimacy has be

then. >> in the absence of deescalating sets by russia, the eu will decide what the consequences will be for bilateral relations between the european union and russia. we talked about the potential of suspending bilateral tawsms, these-- talks, these are part of the agenda. >> the u.s. is in fact saying, it will put sanctions against russia in place and is preparing that right now. the u.s. has a broad range of options available. that according to the u.s. state department coming to us in the last few minutes that the u.s. is preparing sanctions against russia right now. simon in brussels, covering it from the european direction, europe has a lot of business to do with russia. >> i think it is, i think it is easier because the feeling in europe is that it's okay for john kerry to talk tough on the talk shows, over the weekend, no disrespect meant, but russia is closer to us. on the psychological level. it's worth $400 billion a year in trade for the eu. you have the ongoing basis of energy supplies from russia, gas in particular. the germans take a third of their total gas supply from the russians. it's a very much more involved relation

and that appears to be the situation with the united states, the european union, and russia on the issuef crimea. and we should note that u.s. secretary of state kerry acknowledged the buildup of russian forces along the border of ukraine and they want to see those troops go back to base, but they didn't see that as a promise either. >> dana lewis for us in london. thank you very much. and the president obama also weighing in on the crisis in ukraine, leaving no doubt about where the u.s. stands. >> we continue to hope that there is a diplomatic solution to be found, but the united states and europe stand united, not only in its message about ukrainian sovereignty, but also that there will be consequences if that sovereignty continues to be violated. >> the situation on the ground in ukraine worsens. violence breaking out in eastern ukraine. jennifer glasse is is there. we heard secretary kerry raise concern about the safety of minorities. what is the mood there? >> the minorities are very worri worried. the crimean tatars have already said they are going to boycott the vote. together th

russia exports. now to breaking that down with the european union, if you look at the european union you are seeing the uk, france, italy, germany, all defend, especially germany on russia as a trading partner. then we factor in china, we see that in the bottom half of the graph and that is showing how much money china exports and inports regarding russia. look at ukraine $39 billion and factor in the exports from russian oil to the united states, and japan, ukraine is responsible for more of the russian economy than the united states and japan are singularly and the united states receiving $27 billion in russian oil exports. dana is in london and clearly the european union is tied to russia but wants to sever the ties. >> they want to sever the ties if it is a chain around their neck. if russia is going to continue to try and bully the near and afar and threaten europe with foreign policy by cutting the gas and threatening to do so a. well, enough is enough. we have to have as a europe the independence to be able to stand up for what we believe in and including territorial integrity of ukraine without

and european union, russia's president putin stands defiant today. >>> joe biden arrived in poland telling the newest nato members, we've got your back. >> we joined poland in international community in condemning the continuing assault on ukraine's sovereignty and territorial integrity and the blatant, blatant violation of international law by mr. putin in russia. >>> honors delayed, two dozen battlefield heroes will receive the medal of honor today. a past due recognition decades late. >> to be honored in such a fashion, i just still can't comprehend it. i can't. not yet, anyhow. good day, i'm andrea mitchell in washington. the mystery continues into the missing malaysian jetliners and officials tell nbc the plane's diverted path was programmed by computers in the cockpit. there's more confusion today. as officials say the communications system didn't shut down before the co-pilot's last radio call. tom costello has an updated overview of the time line. >> flight 370 leaves kuala lumpur at 12:31 a.m. at 1:07 the last ought mated acars data transmission. next transmission never comes. at

prime minister david cameron talked about the situation in ukraine and relations with russia and the european union. he said the u.k. will withdraw from preparations for the g8 summit scheduled for june in sochi russia. the prime minister told members that russia should be condemned by the whole world adding that the uk's national interest is that the rule of law is upheld. this is about 35 minutes. >> order. questions for the prime minister. sir peter bone. >> thank you, mr. speaker. >> thank you, mr. speaker. this morning i had meetings with ministerial colleagues -- mr. speaker, this morning i had meetings with ministerial colleagues and others, and in addition to my duties in this house, i shall have further such meetings later today. >> peter bone. >> mr. speaker, -- [inaudible] 2000 new jobs. local conservative councils, north telegraph, the listening campaign and my listening campaign have all supported this proposal. in nine years in parliament i have never known of the development that has so much public support. could be prime minister is his best effort to ensure that the outcome of the

merkel said if russia refuses to change force, european union leaders were ready to take measures with serious economic impact. they are working on a solution to the crisis, including setting up direct talks kiev and moscow. >> translator: if russia continues on the course of pursuit the past couple weeks, it wouldn't just be a catastrophe for ukraine. as neighbors of russia, we would also see it as a threat. this wouldn't just change the entire relationship between the european union and russia, but i'm convinced this will harm russia massively, economically we also politically. >> angela merkel speaking in berlin. let's go to bbc's steve evans in berlin. those words, catastrophic consequence, a threat, this is a bleak warning from the chancellor. >> it is. what was significant they didn't use the word sanctions. she did talk about insurance somewhere down the road if russia doesn't de-escalate the situation. she didn't bluntly say we will impose sanctions if nothing is done. the address the was very somber. she wore black. it was full parliament. it had authority, if you like. it was

and european union, russia's president putin stands defiant today. >>> joe biden arrived in poland telling members, we've got your back. >> we joined poland in international community in condemning the continuing assault on ukraine's sovereignty and territorial integrity and the blatant, blatant violation of international law by mr. putin in russia. >>> honors delayed, two dozen battlefield heroes will receive the medal of honor today. a past due recognition decades late. >> to be honored in such a fashion, i just still can't comprehend it. i can't. not yet,

european union taking a strong stance against russia and what they have done in crimea. all along the europeans have been highly criticized where they have this relationship with russia where they're dependent on it. they are reluctant to go into conflict with moscow. it appears this time del it is one step too far. the peurns are start -- europeans are starting to look at ways they can get away from those points. europe has to find a way to divest itself from those pressure points. let's see what he has to say. >> we have started on the longer term, the way to reduce european dependence on russian energy over many years to come some of these sorts of things that will be the biggest costs in the long term if we make known to russia, the diplomatic progress, i am pleased that we made these decisions, that there have been ready agreements on these things and we'll build on these relationships if it is necessary to do so. >> reporter: what we are hear from moscow del is they do intend to reciprocate and they will put sanctions and trade restrictions and the eu which is only

remember, when you look at the trade between the european union and russia, over the past 20 some years these two economies or areas have become much more integrated. you have european, french, italian banks, citi bank, a big multinational operates there. big car companies, gm has a plant in st. petersburg. when you have the russian president stepping in his press conference yesterday, he said, very clearly, look, anyone on your side who is talking about sanctions, remember, these things cut two ways. we would be hurting each other. people would both be losing. that's really serious and true. if you have the russians turning around and seizing properties of companies, that could be devastating for market sentiment. that's a real issue here. for years, corporate ceos have been wooed into doing business in russia. here, you have these sorts of politics which are telling them, wait a minute. we should have been more careful. >> monica, what's your advice to your client under these roller coaster circumstances, shall we call them? >> it is to understand there is a difference between a stand

if you look at our foreign trade, almost 50% goes to the european union. russiaortant partner. the first russian embargo on wind came in 2006 -- wine came in 2006. we want to have civilized relations, we went to have trade relations that are not mixed with political relations. i'm sure we will overcome the immediate impact. >> put yourself in the shoes of western ukrainians right now. what is the most effective thing the united states or the eu could do to support them? is it economic sanctions? will putin respond to economic sanctions? dramatic junction in time, to try to engage russian colleagues in moscow and find a to get back to the situation that exists a few days ago. if you want to get a problem , we need a very good cooperation between east and just -- west. the first strong appeal goes to our friends and colleagues to try to find a solution. what happens today is not a win-win situation. mr. prime minister, thank you. ♪ ♪ >> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. is a successful com

crimea. >> translator: we're all standing here for russia, he told me through the slit in his mask. none of us wants to be part of the european union. >> there have been a lot of voices this week framing this crisis as vladimir putin wanting to restore russia to its former imperial glory. steven coen does not agree. he's a professor emeritus at -- he says putin did not create the ukranian crisis it was imposed on him. he is joined by jill dougherty. why do you believe this was imposed on vladimir putin? >> he looked at what was happening in ukraine beginning in november, he looked at what was happening in kiev and saw nato coming at him again. why he saw that we need to roll back to the 1990s. it's been american policy, the policy of the democratic and republican party, to move western power, spearheaded by nato, from berlin to russia's borders. it is on russia's borders in the baltic, it's at poland. so stop and think for a minute what we have now. we have moved. we, all of us have moved the old cold war divide which was in berlin, which we survived for 45 years, right to russia's borders. imagine what that means. and based on wha

sanctions against russia have been imposed by the united states and european union. there is already criticism they do not go far enough. are the sanctions enough to isolate russia and reduce military tensions? >> i do not think so. i think they will need to be increased if we want to have real effect. conversations are on european capitals today, connecting with washington and other nations around the world, will be along these lines precisely. how far and how quickly do we need to raise these to get the attention of vladimir putin? >> the former nato supreme allied commander, currently dean of the fletcher school at tufts university, joining us on the phone. thanks for your time and expertise. we appreciate it. >> my pleasure. >> ukraine's crisis filters through talks on iran's nuclear program. we will have those details in a moment. ♪ >> the u.s. federal reserve's today meeting to set interest rates is underway. the sure to join us for special coverage of the fed's rate decision, and janet yellen's first news conference as fed chair. that is wednesday, starting jus

i walked away from the association agreement with the european union russia said why don't we all three sit down russia ukraine and brussels but the the europeans dismissed it out of hand it's like how dare you we don't do it this way but they actually do it with other countries like with canada but they said no to russia why. i think the e.u. was well aware that there is a double track approach needed but i have to admit of course that this trick on the russian. negotiations with the russians went too slow and the other. track maybe too fast ahead and maybe that your commission was not aware of the fact that there are also geopolitical stakes. in this negotiation and it could be that. russia and i have the feeling that russia had the perception that after that you association it would be nato would maybe follow and some strategic as the crown jewels of russia i think this perception is. such a russian it was probably not the case and probably the earlier experience since two thousand and the russian leadership make this this assessment. i would say given the situation in there were in

let us have discussions with the european union, ukraine and russia to see how we can move on economically. they said no way, no way. we don't want to have russia in those discussions. instead of demanding and forcing yanukovych and his government to sign that association agreement. when they say they understand what the role of russia is, they should act the way they disclaim it. >> rose: that's what the united states thinks. i don't want to speak for them in the west. as you know, chancellor merkel has been a very friend of russia and she's very angry at russia. even on the stand doesn't believe that putin's really, you know what she said about the phone conversation. it seems irrational about this which raises onemportant question that many people sitting at this table has expressed. it is that vladmir putin thought the split up ofhe soviet union was one of the worst things at hand if not the worst. this is the beginning of his long time ago to exert russian influence in what was formally the soviet union. >> do you believe or does the unites believe in world domination. it's like sayin

russia but for golf world just practical lessons. ok we need to stop the polls this week said she too is a pretty good cheese bacon european union and russia. ah but actually has some. gemini the edge of the gold says that to be introduced to jimmy the us steel. steel being the export it to russia and steel developed so far because it is difficult is it to import gas from there. so what actually does the wells age and the fun i'll need is some talk of sanctions. thus in all essentials cds put his recordings the band so forgive me. maybe some kind of fuzzy assumes or a witch which tells the action would be. a group of college. yes there are two ways to section russia business. first the economic sanctions on the posting on sanctions the economic sanctions will not be so much of our shed and the eu was selling something true to russia because of the new stop selling things to rush and approachable bites of what's going on in china asia asia summit in from japan open other than double the sum which by the degree but to me but that will be at him there isn't an option to move to pressure russia by malts importing francis guess anymore wo

the european union has announced that it won't issue visas for residents of crimea at embassies and consulates in russia it said that if those people want to get visas to travel to to the european union travel within the european union that they going to have to go to ukraine in order to get visas now this comes after the e.u. refused to accept the legitimacy of a referendum that saw crimea become independent and then be ultimately absorbed into russia to find out a little bit more about what europeans think about this i'm joined by moderates and is from the free voters party here in germany thanks very much for talking to me who suffers because of this decision i think the normal people of the crimea are punished for a diplomatic and political mess which has been created pretty cool the timing here . i mean isn't this going against one of the key principles of the e.u. freedom of movement to telling people now that they have to go to a different country in order to obtain visas. yes you see we're short term or two or all on one of yours which we don't right in our own dorning all do seems like democrac

crossroads moment for the european union european union in which they have to calibrate their economy against their security. the european union has the greatest bite against russia because it has a $400-plus billion market. so the rub shans would feel the greatest consequences by european sanctions that the united states is already beginning to lead on. so i believe that at some point we'll get there because what's being taken here is a territory that was leaning to the west. it's not american territory, so at some point, i think the europeans will understand that this is a decisive moment. >> at some point, but what, in the conversations that you are having today with europeans, what kind of a reaction are you getting from them? >> increasingly i believe that the europeans will come to the conclusion that it is in their collective security to be resolute and firm in their response to russia. president putin calculates and right now he calculates that he could get away with crimea. he is looking at eastern and southern ukraine. he may be looking at elements of moldova. the reality is that the european union needs to send a very clear message, along with the unit

russia. subordinate to russian interests. it would forget about economic prosperity based upon integration with the european union. it would join with russia in the eurasian union. it is important because it has more pipelines for natural gas than any other in the world. approximately 50% goes to ukraine. there may well be hydrocarbons in the waters of the black state. they were drawn off the coast of crimea. the russians would hope to gain access to these resources. putin's interest ukraine is both political and economic. >> let's talk about the economic interest in ukraine. is it likely that without the disturbance and final situation right now that ukraine would deny russia access to the pipelines? why is he concerned? >> i do not think that is really a problem for russia. russia has twice shut off the gas to ukraine using natural gas supplies as a point of leverage. ukraine conceivably might the willing to shut off the supply it russia uses gas cut off to pressure ukraine. otherwise, i do not see ukraine is doing that. the major gas exporter in russia has been trying to buy the pipeline for years. ukraine intel

russias gas. but conversely the european union is russia's biggest investor.ia may have its hand on the gas tap, it may prove too costly to turn off. >> the latest data we have seen so far has shown that the russian economy is actually slipping into recession, so they need the gas and oil revenues to keep their economy going. >> reporter: the uk's willingness to impose sanctions has been further questioned after a document was discovered saying that it should look to joining other eu members in imposing travel bans and other restrictions. the un insists all options for its response to russia remain on the table. but those could be driven by purse strings rather than politicians with the markets ultimately in control. >>> the construction of illegal israeli settlement homes doubled last year. now that's according to israel's central bureau of statistics. work began on more than 2,500 homes in 2013. palestinians say the construction is jeopardizing any peace deal. >>> president obama says . . . and obama has warned benjamin netenyahu that time is running out to

in the region to russia needed could be thinking of taking more areas to ukraine will even have another extended the in these sites often mixing cry man. ukraine's new pro european union cabinet which refuses to recognize russia's take care of all crime and his consent of the state of the region's national security committee has warned of pro russian elements trying to use the ratio of manpower. well nice isn't it a few bases in crime and i like the russian who at the fantasy of days the ukrainians had been helping out. but on monday russian troops seized in a bowl place forcing themselves in using helicopters and ahmed personnel carriers kiev hasn't officially ordered to restore all things to come the region that is said to be organizing and re dedication. i'm not calling and verified amateur video shows smokes hearing from what appears to be a syrian war jets on the border with turkey. the fine to play michelle than ankara said after a while a ticket and space. condemning turkey's actions damascus described it as a blatant aggression insisting that it had been queuing rebel point is in caps of inside syria. but it was brought down the syrian border town has recently

individuals, really could set off a firestorm of reprisal that is between germany, europe yoon european union and russia devastating a trade relationship, russia would pay a price, but, my gosh, the cost to the european union in particular would be very high indeed. >> well i think depends on what happens, but it is important to remember, any negotiation who has more to lose by failure, we act as though we have more to lose over and over again, which, when i believe it is putin is more dependent on continues huge oil revenues that exam from exports that is pillar of his regime. you know ronald reagan took on soviet gas pipeline against similar concerns, putin is not as strong as old soviet union. union. lou: and relationship, here, one thing that has been drawn into perfect view, it seems, a very, very distant historically distance relationship with our allies in europe, there seems to be no poll among the allies in european union, whether it is nato or the eu . with which the united states, is bound, or which provides an anchor for the relationship which tkhra has been traditionar the course of 60 year

hawkish rhetoric from politicians european businesses are taking a more cautious approach warning that the eu itself has plenty to lose from sanctions russia is the european union's third largest trade partner. nearly half of the cars made in as the eu and russia as this eighteen percent of chemical production plus european consumers get one third of your natural gas supplies from gas from and then there's a huge profits from philly and sports to moscow bought. that's only half the story precious contribution to the global economy's ills and not to be underestimated. the adults for example twenty first and of the worlds team comes from russia. i'm an old that is in industries from aviation to jewelry. nearly half the world's palladium which makes your card reader is mined in russia as well. then there's russia's massive contribution in platinum diamonds and many other minerals. so any disruption in supply of those commodities is bound to reverberate across the global economy. former spokesman for india's prime minister explain why eu and us sanctions are unlikely to last. united states has followed a policy of strategic engagement session do they. he's among the

russia hoed. >> the european union does more than $4 billion worth of business with russia. a third of the european union's gas supplies is in russia. half is piped from the ukraine. some are wary of losing russia as a marketplace, like pepsi coe, coca-cola. exxonmobile. business is growing. let's go to andy. a director of the ukraine institution. the ukrainian economy is in a mess. i think it owes something like 150 billion. what happens if it can't pay its gas bill? >> the ukraine economy - ukraine is a big country. to give you perspective, it's bigger than the size of france. what we have seen over the last number of years is that the treasury is pretty much bear. the reason is that the former president, we have seen the photos of op u lents. corruption has been eating at the economy. that's why we are seeing the massive... >> that's why they are in debt to $150 billion. the point is what happens if they can't pay their bills now. >> what we are hearing from the new government, the minister for economy and the minister for finance. the first drive is to push the anticorrup

russia. that is according to early results of yesterday's referendum. western governments announce the vote as a legal. european union foreign ministers gather in two hours to discuss sanctions against russia. brian is in brussels. -- ryan is in brussels. >> they will be whittling down the list of dozens of members of russia's elite that it intends to subject to put these restrictions -- visa restrictions. punish kremlin officials and members of russia's elite who politically played a role in the russian incursion in crimea. dissuadeis to president putin from annexing crimea. goal is to discourage president putin from going further into the ukrainian mainland. include theuld also heads of two state-controlled companies. producer's largest gas and the ceo of the world's largest oil producer by output. we do not know if that will be the case. we have heard from a lot of the eu officials saying there is a desire to do this step-by-step to introduce sanctions and punish russia in ways that are commensurate with what russia is doing on the ground. leaving russia some diplomatic wiggle room to back down and to shoulde eu's

hope his rhetoric from politicians european businesses to heal all courses approach warning that the eu itself has plenty to use sanctions. russia is the european union pay deal i just read on not me hobble the cars made in the eu and us and russia as an eighteen percent off chemical production cuts. the european commission asic and one third of a natural gas supplies from gas from him and as a huge profits from fedex close to moscow. that's not the only part of the story russia's contribution to the table economy as a whole it is not to. to be on the statements not take the axles for instance twenty percent of the world continued come from russia i'm actually using industries from aviation to jewelry. maybe cause the worlds of palladium which makes me look on the net is a mind in russia. then there's the russia's massive contribution in terms of platinum and diamonds and many other minerals soak any disruption in the supply of those commodities is bound to be baffling across the table economy financial markets expedition down and then told us that by imposing sanctions on russia and pledging generous financial aid to claim the eu is taking on more t

russia. if you look at the situation in , oneo -- european union third come from russia.here are strong economic ties. they do not want to risk that russia will not stop at the crimea. nobody wants that. russell's is overwhelmed with what is happening. there are emergency meetings after emergency meetings. i thank you for joining us from brussels. russian military action won the unanimous backing of the parliament. what do ordinary russians think? we have a report. people couple hundred gathered outside the defense ministry in moscow. this woman demands, don't send our children to fight our brothers. >> i do not think we need to send in troops to protect our own interests. crimean have to decide their own fate. they have to decide what side they want to join. there will be elections. >> 40 of the peaceful protesters were arrested. russians are divided over how to respond to the conflict. really hope there will not be a war between ukraine and russia. everyone will take the time to think this through and decide. >> others back president vladimir putin. he says he has a dut

but there was support, a majority support for joining the european union. if russia keeps moving the goalpost and suggesting that somehow an economic free trade agreement with the european union is a sign of a threatening security issue for russia, then i think the problem is with the brungs side not with the ukrainian or the west. >> sreenivasan: let's talk about the economic sanctions and possibilities here, do we have enough leverage over russia where economic sanctions would act as a deterrent for what they're doing in crimea now? >> i think we probably don't. remember, the united states has various sanctions we could impose, but russia has various ways to retaliate against that. for example, they can start cutting off energy supplies to ukraine and also to other states in europe, which gets about 30% of its energy, now, from russia. so, in a sense, as we start down that particular road, we have to recognize it's going to impose significant costs on us and significant coasts on our allies. most important of all, this is an issue that matters far more to russia th

russia. they have called on the european union and the united states to recognize crimea's right to decide itsel sanford reports. >> reporter: wild scenes in simferopol last night as people who have longed to rejoin russia for almost a quarter century took a huge steps towards their dream. >> we come back to russia. we happy. we all happy. >> reporter: the people here in the center of simferopol have got what they wanted. but how it came back b is going to have a lasting impact on international relations. the referendum produced an overwhelming vote in favor of leaving ukraine and joining russia. although the russian president vladimir putin consists it was consistent with international law, it remains hugely controversial. it was organized in less than a fortnight, while russian troops were already in effective military control of crimea. and it's not recognized by the fledgling government. if they choose to join crimea onto russia they will get sanctions from the european union. the fallout could escalate over the weeks ahead. with pro-russian protesters in mainland ukraine agitating for the