Ukraine-Russia Crisis (2)

8/9/2019 Ukraine-Russia Crisis (2)

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BUSI 3704 A : THE ENVIRONMENT OFINTERNATIONAL BUSINESS

TOPIC REVIEW

What are the Internatina! B"#ine##I$%!i&atin# ' the U(raine)R"##ia

Cri#i#

*r+ A,-"!.han/ Mha$e-

*e&e$,er 014


2/13

What are the internatina! ,"#ine## i$%!i&atin# ' the

U(raine)R"##ia Cri#i#2

1Mani'e#tatin# ' the U(raine)R"##ia Cri#i#(a) What is the Ukraine-Russia Crisis?(b) What is the nature of the crisis?(c) What areas/countries are encompassed in the Ukraine-Russia crisis?(d) Where and when did the Ukraine-Russia Crisis begin/start?(e) What are the issues and demands of the Ukraine-Russia Crisis?(f) How has the Ukraine-Russia Crisis echoed in other countries around the

world?

*/na$i ' the U(raine)R"##ia Cri#i#(a) How has the Ukraine-Russia Crisis eoled since it began?(b) What sparked the Ukraine-Russia Crisis?(c) Who are the ke! actors of the Ukraine-Russia Crisis?(d) What is the pro"le of the Ukraine-Russia Crisis actors?(e) What actiities hae been undertaken b! the protagonists of Ukraine-Russia

Crisis?(f) What hae been the responses of protagonists?

(g) What are the ob#ecties/goals of the ke! actors in the Ukraine-Russia Crisis?(h) What hae been the roles of foreign goernments$ regional organi%ations

and the United &ations?(i) What are the ke! factors that hae gien rise to the Ukraine-Russia Crisis?(#) What is the role of technolog! in the Ukraine-Russia crisis?(k) What is or has been the role of the mass media in the Ukraine-Russia crisis?(l) How do !ou foresee the Ukraine-Russia Crisis unfold from now onwards?(m) Wh! has the Ukraine-Russia Crisis not spread to other countries in the

region?

3I$%a&t# ' the U(raine)R"##ia Cri#i#(a) What are the short-term impacts/outcomes of the Ukraine-Russia Crisis?

(b) What are the medium-term impacts/outcomes of the Ukraine-Russia Crisis?(c) What are the long-term impacts/outcomes of the Ukraine-Russia Crisis?

4I$%!i&atin# ' the U(raine)R"##ia Cri#i# 'r Internatina! ,"#ine##a' What are implications of the Ukraine-Russia Crisis for the macro-

enironment(s) of nternational usiness?b' What are implications of the Ukraine-Russia Crisis for the industr!

enironment(s) of nternational usiness?c' What are implications of the Ukraine-Russia Crisis for the organi%ational

enironment(s) of nternational usiness?

5Cn&!"#in# 6 Re&$$en-atin#

The "e#tin# a,8e are re%r-"&e- an- re#%n-e- t in %int 'r$ in the

ta,!e# ,e!9+ The re#%n#e# are nt eha"#ti8e+ The/ are ;ere- t

a##i#t


3/13

Ta,!e 1: Mani'e#tatin# ' the U(raine)R"##ia Cri#i#

>"e#tin An#9erWhat i# the U(raine)

R"##ia Cri#i#2

What i# the nat"re '

the &ri#i#2

+eopolitical crisis , armed conict (ciil war)

What area#


4/13

Ta,!e : */na$i ' the U?RAINE)RUSSIA CRISIS

>"e#tin An#9er

H9 ha# the

U(raine)R"##ia

Cri#i#

"n'!-e-


5/13

67*F b! Russia$ Ukraine and rebels from the

Ukrainian separatist regions of 2onetsk and

3uhansk'

9he peace deal has been breached seeral timesG in

fact it is reported that *777 people hae alread!

been killed since the @insk 0ccord was signed'

What #%ar(e- the

U(raine)R"##ia

Cri#i#2

Biktor anuko!chDs reersal on a pro-.U trade deal in

faour of strengthening ties/relations with Russia'

Wh are the (e/

a&tr# ' the

U(raine)R"##ia

Cri#i#2

What i# the %r@!e' the U(raine)

R"##ia Cri#i# a&tr#2

>rdinar! citi%ensN !oung$ old$ men and women

tates/goernmentsN Ukrainian$ Russian , Western$

etc' +lobal$ Regional , @ultilateral organi%ationsN U&$

.U$ >C.

What a&ti8itie# ha8e

,een "n-erta(en ,/

the %rta.ni#t# '

U(raine)R"##ia

Cri#i#2

What ha8e ,een the

re#%n#e# '

%rta.ni#t#2

U(rainian 8ern$ent

earching for alternatie energ! suppliers (to

Russia) end in the arm! to "ght the separatists in

.astern Ukraine

EU 6 We#tern 8ern$ent#:

mposed seeral rounds of sanctions against

Russian indiiduals$ companies and banks b! the

West and its allies.U signed a comprehensie economic deal with

Ukraine Eoreign aid to Ukraine ("nancial$ e;perts$ etc')

&on-lethal militar! support

R"##ian .8ern$ent:

0nne;ation of Crimea

Humanitarian aid (food , necessities$ etc')

cono!s to .astern Ukraine Russian counter-sanctions against countries that

hae imposed sanctions against it (0ustralia$

Canada$ .U$ &orwa!$ U0)' 0ssistance to Crimean bank depositors

F


6/13

Internatina! r.aniatin#:

>rgani%ation for ecurit! and Cooperation in

.urope (>C.) United &ations

&09>

What are the,e&ti8e#


7/13

What i# r ha# ,een

the r!e ' the $a##

$e-iain the

U(raine)R"##ia

&ri#i#2

@ainstream media reported about public protests$

oerthrow of the Ukrainian regime$ anne;ation of

Crimea$ moement Russian humanitarian aid

cono!s$ downing of the @ala!sian airliner$ armed

conict in .astern Ukraine'

@ass media in the West and in Russia has

endeaoured to shape the discourse about the crisis

and in the process reealed/unmasked its ownbiases'

@assie propaganda campaignsG e'g'$ 5remlin-

funded broadcaster R9 -- formerl! known as

Russia 9oda! -- launched a +erman language

station in &oember 67*F to put across

@oscowPs iew of the crisis' @oreoer$ +erman media hae been

complaining for months about their news sites

being bombarded with pro-Russian comments'

H9 - /" 're#ee

the U(raine)R"##ia

Cri#i# "n'!- 'r$

n9 n9ar-#2

+erman Chancellor 0ngela @erkel beliees that the

showdown between Russia and the West seems to be

eoling from a fast-moing tit-for-tat aQair into a

longer game in which the West slowl! sAuee%es

RussiaPs struggling econom! in the hope that 4utin

eentuall! blinks'

4utin asserts that the West (and the U in particular)

can/will neer subdue Russia'Wi!! the U(raine)

R"##ia Cri#i# #%rea-

t ther &"ntrie# in

the re.in2

Ta,!e 3: I$%a&t#


8/13

E&n$i& I$%a&t#:

I$%a&t# n U(raine:

9 sector in Ukraine (worth J billion in 67*8) is in

#eopard!' nternational clients hae hitherto tapped into

Ukrainian technical e;pertise and low labor costs'

>utsourcing in Ukraine brought in about 6 billion inreenue$ with more than J7$777 people working in

the "eld' High tech companies hae moed out of rebel-held

areas to aoid armed conict (brain drain)

I$%a&t# n R"##ia:

Russia econom! is under seere strain due to

sanctionsG could go into recession Rising ination

Russia is diersif!ing its sources to

replace/substitute imports from the West , allies(e'g'$ 0rgentina$ ra%il$ .cuador$ ran and @e;ico

hae e;pressed their willingness to boost food

e;ports to Russia) ra%il meat e;ports hae increased : Russia now

bu!s 8L'S of ra%ilian meat e;ports and

increase from 8J'MS oer the past few months ndonesia to e;port to Russia fresh and

presered fruit$ "sh and seafood products ran interested in suppl!ing Russia with dair!

and meat products

Russia proiding incenties for domestic/localproduction (import substitution) especiall! in

munitions and militar! eAuipment 0didas would remain in Russia (not aQected b! the

sanctions) Erance will delier to Russia 6 @istral-class

helicopter carriers (Bladiostok , eastopol)

alued at *'J billion'

I$%a&t# n We#tern C"ntrie#

3ost markets in Russia &umerous .uropean countries hae alread! argued

that the Western countriesP sanctions and the food

import ban imposed b! Russia on 0ugust I are

damaging the econom!' talian agricultural producers estimate that the! will

6J8 million in one !ear periodG talian goods e;ports

hae fallen too e'g'$ automobiles (fell b! J7S)$

I


9/13

pharmac! products (fell b! 86S)$ te;tile (fell about

6JS)' 3atia lost 7'6JS of +24 (J' million) due to food

embargo imposed b! Russia : dair! industr!$ dair!

farmers$ pig industr! and haulage "rms were the

most aQected' 4rice of pigs in 3atia has dropped b!

*IS' .uro-%one recoer! at risk

I$%a&t# n Thir- Partie# ther &"ntrie# 6 .!,a!

e&n$/ &ew e;port market to Russia replacing western

e;porters Could impair global economic recoer!

Finan&ia! I$%a&t#:

9en months after Russia inaded Crimea the "nancial

fallout is still being felt' 9housands of ordinar! citi%ens

hae little or no access to their funds' 3osses for

Ukrainian banks continue to mount as billions of dollars

worth of loans the! issued in Crimea go unpaid' 3aw!ers

for the banks are preparing legal actions against Russia$

which con"scated man! of the banksP buildings$

eAuipment and cash' 9o help Crimeans$ Russia has been compensating

depositors with accounts at Ukrainian banks through afund that insures Russian bank deposits' 0ccording to

the Eund for the 4rotection of 2epositors in Crimea$

which is part of RussiaPs 2eposit nsurance 0genc!$ as of

&o' it had paid out more than J77 million to *L$F77

depositors' Capital ight from Russia

Te&hn!.i&a! I$%a&t

Crimea has been thrust into a kind of technological time

warpN @ost 09@s no longer accept non-Russian bank

cardsG foreign credit cards canPt be used to bu! things'

@ost non-local mobile phones canPt receie a signal' 0nd

een if the! could$ calling other Crimeans is

complicatedN @ost of the peninsulaPs residents recentl!

had to get new mobile phone numbers because

Ukrainian serices were cut oQ'

P!iti&a! I$%a&t#:

M


10/13

4olitical changes in Ukraine : new pro-West

goernment is currentl! in power Ukraine lost Crimea to Russia

9ense political relations between the West and Russia

Re."!atr/ I$%a&t#:

llegal ows of goods into Russia (e'g'$ 77 tons of illegal

meat and lard (disguised as marmalade) produced in

+erman!$ the &etherlands$ elgium and 4oland were

intercepted at the Russia-.stonia border in >ctober

67*F)

C"!t"ra! I$%a&t#:

En8irn$enta! i$%a&t#:

What are the

$e-i"$)ter$

i$%a&t#


11/13

Ta,!e 4: I$%!i&atin# ' the U?RAINE)RUSSIA CRISIS 'r Internatina!B"#ine##

>"e#tin An#9er

I$%!i&atin

# 'r the

$a&r)

en8irn$e

nt#

4olitical hort term political uncertaint! due to domestic

conict as well as due to geopolitical strain between

the West and Russia is alread! haing signi"cant

repercussions for international business'

.conomic &ew measures will hae to be taken toresuscitate/restructure the Ukrainian econom!

(including those of the .astern regions of Ukraine)

that will hae been stalled or destro!ed during the

crisis'

Companies in the West and well as those in Russia

will hae to ad#ust their strategies in light of the

Western sanctions on Russia and Russian counter-

sanctions'

U oil compan! .;;on@obil has suspended its

operations with RussiaDs state-owned oil giantRosneft on nine out of *7 #oint entures following a

new round of Western sanctions imposed on

@oscow'

9his deelopment will negatiel! aQect both

companiesN

Rosneft will now hae to "nance the initial

stages of e;ploration in the 5ara and lack eas$

+rigori! irg$ gas and oil anal!st at nestcafe$

Russia$ pointed out in an interiew with Radio

BR' .;;on@obil was going to proide funding

estimated to be worth 8'6 billion for the pro#ect

before the U 9reasur! imposed the sanctions$

according to an agreement concluded in 67**' 9he 0merican compan! is heail! inoled in oil

and gas pro#ects in Russia and Tis clearl!

interested in growing its resource base and

production in the future' Russian pro#ects were

ke! to these long-term goals$= irg maintains' Howeer$


12/13

3egal 3aws and regulations ma! change (some ma! foster

a conducie business climate while others ma!

institute new constraints)Russia has threatened to take .U countries to the

W9>ocial ocietal cleaages will become more pronounced in

the short term but in the long-term there is

potential that chasms in societ! ma! be mended

(and/or accentuated)

Cultural Balue changes?&ew reolutionar! songs , art?

9echnological .;pose the limits of technolog! in the conte;t of

digital diide within and across nations

.cological &ew wa!s of protecting/presering the enironment

ma! be introduced?

I$%!i&atin

# 'r the

In-"#tr/

en8irn$e

nt#

u!ersD bargaining

power

4rotesters$ rebels and ciilians are part of the

consumersG the! ma! remember who supported

them during the protests/rebellionsuppliersD

bargaining 4ower

4rotesters$ rebels and ciilians form part of the

labour suppliers

9hreat ofubstitutes

Ukraine-Russia Crisis ma! bring closer societiesacross the planet and ma! reeal substitutes that

ma! hae been ignored

4otential .ntrants &ew entrants that were blocked b! former/replaced

rulers ma! be gien a chance to enter

ndustr!

Competitors

Competition ma! increase graduall! as new

entrants oercome their hesitation to (re)enter the

region'I$%!i&atin

# 'r the

r.aniati

na!en8irn$e

nt#

>rgani%ational

tructure

>rgani%ationtrateg!

>rgani%ational

4ractices

>rgani%ational

Reputation

>rgani%ational

4erformance

**


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Ta,!e 5: Cn&!"#in# an- Re&$$en-atin#

>"e#tin An#9er

What %re!i$inar/ &n&!"#in# &an

,e -ra9n 'r$ the U?RAINE)

RUSSIA CRISIS2

Within a short period the protesters/rebels hae

been successful in (a) giing oice to a number of

societal issuesG (b) bringing down some regimesG (c)

emergence of new political parties/forces'

Corrupt leadership eentuall! leads to regimechange and social turmoil

ociet!Ds alues are under scrutin! as ruthless ,

corrupt dictators are brought down or cut to si%e'

What

re&$$en-at

in# &an ,e

$a-e 'r:

Prte#ter#

Ukraine-Russia Crisis (2)

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