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U.S. troops to Poland as truce falters

Wednesday, April 23, 2014 - 02:08

April 23 - U.S. troops arrive in Poland as the interim government in Ukraine resumes an offensive against pro-Russia separatists in the east of the country. Ivor Bennett reports on the breakdown of an Easter truce agreement, and how the threat of more sanctions from the U.S. could hit markets.

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It's the show of support Ukraine's been waiting for. The first of 600 US troops arriving in neighbouring Poland. Washington's insists they aren't there to intervene. But the deployment alone was enough to embolden Kiev's fragile administration. First Deputy Prime Minister Vitaly Yarema. (SOUNDBITE) (Ukrainian) FIRST DEPUTY PRIME MINISTER, VITALY YAREMA, SAYING: "We hope that if there is aggression from the Russian Federation that this assistance will be more substantial. At least we have the support of the United States, they will not leave us alone with the aggressor." Pro-Russian separatists have been holding government buildings in Eastern Ukraine for two weeks now. Although Moscow denies involvement, Kiev has had enough - relaunching a security operation to take them back. The decision was prompted in part by this. MP Volodymyr Rybak seen here apparently being detained by protesters. He's now feared dead, after his body reportedly resurfaced, showing signs of torture. An American journalist is also allegedly being held. Separatists in Slaviansk deny any knowledge. (SOUNDBITE) (Russian) SLAVIANSK SEPARATIST REPRESENTATIVE, YEVGENY GORBIK, SAYINGS "Maybe he was detained and released. But I'm sure he won't be detained. Maybe they just checked his papers and let him go." Russia too is flexing its muscles. Showcasing its latest military hardware within touching distance of the Ukrainian border. It's the latest move in a dangerous game of sabre-rattling - the Easter truce now all but dismantled. But according to IG's Brenda Kelly, markets are not pricing in any further deterioration. SOUNDBITE (English) BRENDA KELLY, CHIEF MARKET STRATEGIST, IG, SAYING: "I'm not so sure that markets have priced it in just yet. I think the markets seem to forget about it every so often, and then it comes back up to the top of the headline on the newspaper or on the internet and that's when the market starts to sell-off again. But I don't believe that the markets are taking seriously the sanctions that could be put in place by the US." The US has said it will impose new sanctions on Russia if tensions aren't de-escalated. Although Russia seems ready to absorb them, investors don't. Shares in Moscow down for a third straight day.

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U.S. troops to Poland as truce falters

Wednesday, April 23, 2014 - 02:08