Russia Annexes Crimea Officially, While EU SIgns Deal With Ukraine

President Vladimir Putin signed bills at the Kremlin Friday completing the process that began with the parliamentary vote to take over the Crimea region. As Russia annexes Crimea officially from Ukraine, the U.S. and the European Union have responded by placing targeted economic sanctions on Russia.

Putin hailed the incorporation of Crimea into Russia as a “remarkable event” before he signed the bills into law. Ukraine and the West have rejected the earlier vote by Russian parliament held two weeks after Russian troops had taken over Crimea.

President Obama signed a second executive order Thursday targeting members of Putin’s inner circle and one major bank supporting them.

Russian stock plummeted Friday following the S&P downgrading Russia’s outlook to “negative,” specifically citing the potential for further sanctions and Russia’s lack of economic diversity.

Putin said in televised remarks at Friday’s session of the presidential Security Council that he sees no immediate need for further Russian retaliation. Mocking President Obama, Putin said he planned to open an account in the one targeted bank named in the president’s executive order.

Putin’s statement suggests the Russian president wants to continue relations with the West despite the tensions over Ukraine. He said that Russia will keep funding a program to service Afghan helicopters and train their crews that has been conducted jointly with NATO.

Whether or not the economic ramifications cited by the rating agency had any bearing on his decision, cannot be known for sure.

Meanwhile in Brussels, Ukrainian Prime Minister Arseniy Yatsenyuk and EU leaders signed an association agreement that was part of the pact that former President Viktor Yanukovych backed out of last November in favor of a $15 billion bailout from Russia.

That decision sparked the protests that ultimately led to his downfall and flight last month, setting off one of Europe’s worst political crises since the Cold War.

Meanwhile, Ukraine’s prime minister has pulled his nation closer into Europe’s orbit by signing a political association agreement with the EU at a summit of the bloc’s leaders.

Ironically, the agreement signed Friday between Prime Minister Arseniy Yatsenyuk and EU leaders was part of the pact that former President Viktor Yanukovych rejected last November in favor of a $15 billion bailout from Russia. It was that very decision that set off the Ukraine protests and ultimately led to Yanukovych fleeing the presidential palace last month, sparking one of Europe’s worst political crises since the Cold War.