Pavel Polityuk, Dmitry Antonov

MOSCOW/KYIV – The Ukrainian Ambassador to Britain Monday retracted remarks suggesting Kyiv may reconsider trying to join NATO because Russia has a massive force that is within striking distance. But he indicated that other concessions might be possible.

According to the Kremlin, if Ukraine renounces its desire to be part of the U.S.–European military alliance it would greatly help Russia’s concerns. President Vladimir Putin will meet with his defense and foreign ministers Monday.

The Group of Seven major Western economies (G7) warned Russia of the “massive economic consequences” if it invaded Ukraine on surprise pretexts a day later. They also promised Ukraine support.

German Chancellor Olaf Scholz, a German national, flew to Kyiv to discuss the matter. A meeting in Moscow with Putin on Tuesday was to follow. However, a German official stated that Berlin didn’t expect any concrete results.

Interfax quoted a senior Russian military officer as saying that Russia is ready to fire upon foreign vessels entering its waters illegally. However, such a decision must be approved by the “highest levels”.

Moscow has denied plans to invade Ukraine, and the West has been accused of hyperventila. However, it has stated that Kyiv’s desire for close ties with Western countries, especially NATO, is a threat.

BBC quoted Vadym Prystaiko, the Ukrainian Ambassador, as saying that Ukraine may be flexible over this goal, especially after being “threatened like that” and blackmailed.

Later, he stated that he misunderstood NATO. However, Ukraine was open to making other concessions.

“READY FOR CONCESSIONS”

Prystaiko stated to the BBC that “We aren’t a NATO member right now” and said they were ready for concessions in order to avoid war.

“It doesn’t have anything to do NATO. (Membership application is enshrined within the constitution.

According to the G7 finance ministers, Russia’s military aggression against Ukraine will trigger economic and financial sanctions that have “immediate and severe consequences for Russia’s economy.”

Concerns that Russia sanctions might disrupt oil exports to a country with a large oil production, led to new seven-year highs in oil prices. [O/R]

Russia’s stock-index plunged to their lowest levels in three weeks. The tension rippled around the major European markets, where indexes declined by between 1.6% & 3%. [MKTS/GLOB]

[EMRG/FRX] [RU/RUB]

Investors sought safety and the dollar hit its highest level in two weeks. Russian and Ukrainian bond shares fell sharply.

Western countries, who rely on Russia heavily for their energy supply, including gas and other raw materials, could see sanctions increase.

European banks fear Russia might be expelled from SWIFT, a global payment network that would prohibit the repayment of Russian loans.

Boeing, the U.S. plane maker (NYSE:) Co purchases a large amount of titanium for its airframes from Russia’s VSMPO–AVISMA – however it stated that it is confident that it will be able to use other suppliers in order to overcome any disruptions in supply chains.

Scholz could get a cool reception from Kyiv. This city has long resented Russia’s Nord Stream 2 project, which allows Russia to bypass Ukraine to obtain its gas exports to Germany. Germany has also blasted Germany for refusing to sell weapons to other NATO countries.

“ANY DAY NOW”

Moscow said that it was expecting Putin to meet Scholz Tuesday in talks about Ukraine, Russia’s security guarantees and Nord Stream 2, currently awaiting European Union approval.

Jake Sullivan, the National Security Adviser to President Joe Biden, stated on Sunday that an invasion could start “anyday now”. However, officials from the United States said that they couldn’t confirm that reports by U.S. intelligence indicating it would begin on Wednesday.

Sullivan claimed that the United States would defend all of NATO’s territories and Russia understood this. Biden spoke to Putin on Saturday by phone, saying that any attack could harm or isolate Moscow.

Putin claimed that Washington did not take Russia’s concerns into consideration and had given Biden no substantive response on critical elements of his security requirements.

Washington views many of these ideas as non-starters. However, he has asked the Kremlin for them to be discussed with Washington and European allies.

Washington, along with other European countries have begun to reduce or evacuate embassy staff. They are also urging Ukrainian citizens to flee Ukraine. KLM of the Netherlands has stopped flying to Ukraine.

Ukraine invoked Sunday a treaty in order to request talks with Russia and other members of OSCE (Organisation for Security and Cooperation in Europe OSCE) within 48 hours in order to address Russia’s militarization.