Putin declares Ukrainian breakaway regions as independent

Russian president Vladimir Putin on February 22 declared Ukraine's breakaway regions of Donetsk and Lugansk as independent, marking a further escalation of the security crisis.

Putin has signed executive orders recognising the independence of the regions, which are under the control of Moscow-backed rebels that have been at war with the Ukrainian military since 2014.

"I deem it necessary to make a decision that should have been made a long time ago – to immediately recognise the independence and sovereignty of the Donetsk people's republic and the Lugansk people's republic," the Russian leader said in a speech. He reiterated that Ukraine's joining of NATO "would serve as a direct threat to the security of Russia."

Russia has since moved its military into the breakaway regions, describing this as a "peacekeeping" effort.

In response to Putin's announcement, the White House said it would "prohibit new investment, trade and financing by US persons to, from, or in" the rebel-held regions." Further details will come, it said, adding that Washington would "soon announce additional measures related to today's blatant violation of Russia's international commitments."

"To be clear: these measures are separate from and would be in addition to the swift and severe economic measures we have been preparing in coordination with allies and partners should Russia further invade Ukraine," the White House said. "We are continuing to closely consult with allies and partners, including Ukraine, on next steps and on Russia's ongoing escalation along the border with Ukraine."

Gas prices rose after Putin's announcement, with the March contract at the TTF gas hub trading at €78.20 ($88.60)/MWh as of 09:00 GMT on February 22, or 7.8% higher than during the previous session.