Donbas war escalates

Макроэкономика 21.01.2015 Military fighting between the Ukrainian army and the combined pro-Russia militants and Russian army forces escalated in the city of Donetsk city over the past few days. Clashes reportedly rose visibly in a battle for control of the Donetsk airport over which both groups claim possession. Peace talk initiatives have collapsed as the Astana meeting failed to make a breakthrough on January 15: participants were forced to acknowledge that pro-Russian forces have completely violated the Minsk peace agreement as they have escalated attacks on Ukrainian forces. Yesterday, the Ukrainian military reported that the Russian military opened fire on Ukrainian army servicemen. This is the first official announcement of a direct invasion and attack on Ukraine by Russia.