As was reported over the weekend, in a surprising escalation of anti-Russian sentiment if not so much in Europe (especially following the friendly photo snapped between Merkel and Putin at the world cup final), then certainly in the UK, the bulk of the official Russian delegation set to attend the UK’s Farnborough Airshow this weekend were refused British visas based on Moscow's stance regarding the Ukraine crisis.
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The quote given by a British Foreign Office spokesman, as cited by Itar-Tass:
“Due to Russian actions in Ukraine, no representatives from the Russian government have been issued HMG (Her Majesty’s Government) invitations to FIA (Farnborough International Airshow) 2014,” a British Foreign Office spokesperson told Itar-Tass. The spokesperson also said that London has taken “clear action” to remove Russia from the list of countries eligible to buy British planes or equipment, “in order to discourage Russian attendance” at FIA 2014.
As RT further reported [8], seventeen members of the Rosoboronexport delegation, the state intermediary agency for Russia's exports and imports of defense-related goods, were scheduled to attend the event. However, only five were granted a British visa. Key Rosoboronexport negotiators, including Sergey Kornev, the head of the delegation, were denied visas.
Among the people denied a visa were mostly those representing Russia's state corporations – Roskosmos space agency, Rosaviatsia air transport agency, Rostech innovative technologies corporation, Irkut aircraft corporation, Sukhoi aircraft corporation, Rosoboronexport defense exporting, and others. Overall, 74 Russian corporations and firms applied to participate in the Farnborough Airshow.
Perhaps the move was a retaliation for Russia's successful sale of warplanes to Iraq even as the US was dithering in providing further support to Maliki's once-puppet government which has since turned against its western backers.
In any case, earlier, the Russian embassy in the UK filed a note with the Foreign Office demanding an official explanation.
“The Russian embassy in Great Britain regrets the disruption of the visit of the main part of the Russian delegation for the Farnborough-2014 international aerospace exhibition hosted by the UK,” the note reads. An unspecified source in the Russian delegation told RIA Novosti news agency that due to Russia’s absence at FIA, “important military-technical cooperation negotiations scheduled for Monday between Rosoboronexport and foreign partners have been virtually disrupted.”
Furthermore today, in a statement posted on the Russia foreign ministry website [9], Russia added that the U.K. denying visas was “unfriendly,” and expects an official explanation of situation. Russia reserves right to respond in kind under diplomatic practice, ministry says.
It wasn't just diplomacy that riled up the Kremlin this morning. As was reported overnight, Russia vowed to respond to what was alleged shelling of a Russian border post originating from Ukraine. In fact, as Russian Kommersant newspaper reported siting an "unidentified Kremlin person", Russia was considering “pinpoint retaliatory strikes” after shell from Ukraine killed 1 person in Rostov region.
That report however was promptly refuted: Media reports today that Russia is planning strikes on Ukrainian territory are “nonsense” and untrue, Dmitry Peskov, spokesman for Russian President Vladimir Putin, says by phone. He added that no mass-scale operation considered, only targeted strikes on positions that were shelling Russia.
Additionally, Vedomosti newspaper reported that Russia won’t send troops into Ukraine but it may may respond with fire if shelled again.
Bloomberg reported overnight [10]that Russia and Germany called for a resumption of Ukraine crisis talks as President Vladimir Putin’s government condemned the shelling of its territory that left one person dead.
Putin and German Chancellor Angela Merkel agreed during a meeting in Rio de Janeiro yesterday that international representatives should meet as soon as possible, probably via video link, said Dmitry Peskov, the Russian president’s spokesman. The so-called contact group on Ukraine should work to secure a cease-fire and a resumption of monitoring, he said.
Clashes between Ukraine’s government forces and pro-Russia rebels in the east of the country have intensified since President Petro Poroshenko called off a cease-fire July 1. Putin and Merkel met as Russia warned of “irreversible consequences” after the Foreign Ministry said a Ukrainian army shell killed one person in the southern region of Rostov. Ukraine said its military didn’t fire on Russian territory and is ready to help investigate the incident.
“Both leaders agreed that, unfortunately, the situation in Ukraine is degrading,” Peskov told reporters after Putin and Merkel met. The Russian leader expressed his “extreme concern” about Ukraine’s continuing offensive operations and today’s “tragedy,” Peskov said.
This culminated earlier today when Russia may well have carried it out its threat after Ukrainian Defense Minister Valeriy Geletey told Ukraine President Petro Poroshenko that an An-26 airplane was brought down today, hit by “powerful weapon which was likely used from the territory of the Russian Federation,” according to statement on presidential website. Plane shot down at height of 6,500 meters. The new defense minister said that it was impossible to target aircraft at that height with surface- to-air rocket launched from manpad, or man-portable air defense system, which is why “a more powerful anti-aircraft missile was likely used.”
Then it was Russia's turn to respond again, with the Foreign Ministry [9]once again taking the podium and saying EU should use its influence to stabilize Ukraine, prompt cease-fire, and halt expanded European sanctions, as reported by Bloomberg. Sanctions aren’t pushing the government in Kiev to start dialogue. By sanctioning representatives of southeast Ukraine, EU members are “de facto identifying themselves with supporters of a military resolution to the conflict in Ukraine.”
Wait, wasn't that clear from the beginning?
Regardless, by now all of the above is clearly bullish, and the market which has long since moved on from paying attention or caring about events in Ukraine, shrugged as events in Ukraine and everywhere else for that matter, are believed to be contained: if not, there is always even more central bank liquidity for that. Clearly, at this point "degrading" is merely yet another keyword for the algos to push equities to new all time highs.
