Russian-backed Crimean government to nationalize Ukrainian state assets

The Russian-backed government of the Autonomous Republic of Crimea plans to nationalize several state assets, including the Ukrainian Navy based in Sevastopol, the onshore and offshore natural gas production firm Chornomornaftogaz and the peninsula’s solar power stations, Crimean Prime Minister Sergei Aksionov told the ITAR-TASS news agency on March 10. Private property won’t be nationalized, he said.

Volodymyr Sadovnyk, the kidnapped commander of a Ukrainian vehicle battalion, surrendered his military unit to Russian soldiers on March 10. The battalion’s territory in Bakhchysarai had already been taken over by Russian soldiers. About 200 Russian soldiers took control of a Ukrainian rocket technical unit in the city of Chornomorsk on March 10, reported Vladyslav Selezniov, the head of the Crimean Defense Ministry’s media center. They forced the unit ‘s personnel to surrender their arms and lock them away, as well as depart the territory.

About 30,000 Russian soldiers are currently in Crimea, reported on March 7 Mykhaylo Koval, the director of the personnel department of the State Border Service. They are entering Crimea undeterred and are involved in the blockade of 11 border posts, the Service said. Each border post is being blocked by about 150 armed Russian soldiers, compared to 15 Ukrainian border officials, many of whom are women.

Military observers with the Organization for Security and Cooperation in Europe (OSCE) for the third time were denied access to the Autonomous Republic of Crimea on March 8 by unidentified armed men. Three warning shots were fired in their direction, reported the AFP news agency. The delegation of 47 observers was supposed to visit the sites of the Armed Forces of Ukraine and the Russian Black Sea Fleet. Armed pro-Russian forces prevented OSCE observers from entering on March 6 and March 7. The mission is supposed to conclude today.

Russian soldiers and paramilitary forces stormed a Ukrainian military base in Sevastopol on March 8, where they hurled stun grenades and attacked several journalists, including two television crews. The only Crimean Tatar Internet television site was cut off by Russian authorities on March 7. In the prior days, all Ukrainian television networks were replaced by Russian television networks.

The Russian State Duma will consider on March 21 a law to simplify the procedure for incorporating new subjects into the Russian Federation, First Vice Speaker Ivan Melnikov told the ITAR-TASS news agency on March 11.

Zenon Zawada: Beyond Chornomornaftogaz, the loss of Crimea will cost the Ukrainian government some of its offshore natural gas resources in the Black Sea. Just two potential gas-bearing territories off the Crimean coast hold about 3,000 bcm of resources and can potentially provide up to 14 bcm of gas p.a., according to the preliminary estimates of the Ukrainian government and potential investors.

The seizure of the property of the Ukrainian Navy would be a devastating loss for the Ukrainian military. So far, Ukrainian forces haven’t engaged in any counter offenses, despite urgings by former Defense Minister Anatoliy Hrytsenko. We expect both the Western and Ukrainian militaries will refrain from any action in Crimea, which will very likely lead to the peninsula’s surrender to the Russians. However, we expect action will be taken should the Russians expand their military offensive beyond Crimea into Ukraine’s mainland territory.