- Associated Press - Monday, March 17, 2014

LONDON (AP) - NATO planes monitor Ukraine’s border. East and West fight for influence and trade angry warnings. Russian troops conduct massive war games as tensions rise.

With its brinksmanship, bellicose rhetoric, threats and counter-threats, the crisis over Moscow’s takeover of Ukraine’s Crimean Peninsula seems to have whisked the world back to the Cold War, when the United States and the Soviet Union squared off in a high-stakes standoff that divided the world into two opposing camps.

But this is not Cold War 2.0.

Communism has long ceased to be the feared enemy. The ideological certainties of that era are gone. And Russia and the West are locked in economic interdependency.

Here is a look at how the Ukraine crisis may have turned into an East-West standoff - but not a Cold War.


The West’s economic and diplomatic pressure may harken back to an age of isolated blocs. And measures such as visa bans, financial sanctions and threats to boycott the G-8 summit that Russia is slated to host all certainly seem intended to isolate Moscow.

But the economies of Russia and the West have become entwined since the Berlin Wall fell 25 years ago - meaning it would be hard to go back to the hermetic “us-versus-them” world of the Cold War.

U.S. brands including McDonald’s and Pepsi have a big presence in Russia, and the European Union does far more trade with the country than the U.S. The Europeans are less eager than Washington to take punitive economic measures, in part because European companies from German engineering firm Siemens to British oil giant BP have major Russian investments. And Russia supplies almost a third of Europe’s natural gas.

But economic rupture could hurt Russia even more. Russia relies heavily on income from oil and gas, which make up more than two-thirds of the country’s exports. Around half of Russia’s exports, mainly natural gas, oil and other raw materials, heads to the EU.

And rich Russians rely on places like London for a place to stash their cash in homes, businesses and discreet, stable banks - so much so that some British people refer to their capital as “Londongrad.”

“London is more important to Russians than Russians are to London,” said Yolande Barnes, head of global research at real estate agent Savills. She says Russians buy about 2.5 percent of prime London properties. “If Russians disappeared, I think London would barely blink.”


Rhetoric such as “dangerous escalation” and “brink of disaster” - as well as talk of boosting military defenses in Europe - echo Cold War tensions.

But Western leaders show little appetite for a military response.

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