U.S. gives Ukraine two patrol boats to defend Azov Sea coastline

The U.S. government
gave possession to Ukraine on Sept. 27 two Island patrol boats to defend the
Azov Sea coastline amid intensifying Russian aggression. The 40-year-old boats
were transferred in a ceremony attended by Ukrainian President Poroshenko, who
concluded a four-day visit to the U.S. on a positive note. “Currently we have
received more than USD 1 bln from the U.S. in support for our defenses,” he
said at the ceremony, as reported by his press service. “Support for reforms in
the national security sector and defense of Ukraine, and support for the law on
national security its implementation, which makes our army compatible with
American and NATO forces.”

The day before,
Poroshenko called upon U.N. members to help in efforts to protect free maritime
travel in the Azov Sea, where the Russian government has intensified
inspections of ships recent months. “The Kremlin has no intention to stop,” he
told the U.N. General Assembly. “After the occupation of Crimea, its target
today is the occupation of the Azov Sea. Such gross violations must receive a
decisive response, including strengthened sanctions and other targeted
measures.”

Zenon Zawada: What was a well-orchestrated PR
event on the surface level is actually the latest phase in a gradual military escalation
between Russia and the U.S. in and around Ukrainian territory. We fully
expected that the Trump administration’s decision to offer Javelin anti-tank
missile launchers would merely escalate a military standoff in Ukraine. Special
envoy Kurt Volker admitted as much, stating clearly that the U.S. strategy is
to exhaust Russia financially as it continues to illegally occupy Ukraine.

However, so far Russia has demonstrated that it is willing to pay the
expensive price of trying to bring the Ukrainian territory back under its
control. The military standoff will escalate further, as we are confident the
Russians are looking at the presidential elections scheduled for March as a
potential opportunity for expanded aggression. For investors, that means Ukraine
will continue to remain off limits as a hot conflict zone for at least the next
two years.