The crisis in Ukraine is at risk of spinning out of control, a top U.S. diplomat said, as European leaders remained split over imposing deeper sanctions on Russia for backing a rebellion that’s killed thousands of people.

Russia must stop violating a Sept. 5 cease-fire agreement signed in Minsk, Belarus, Samantha Power, U.S. Ambassador to the United Nations, told journalists today, citing a growing number of military convoys in Ukraine’s rebel-held regions and increased shelling of the Donetsk airport. Ukraine’s foreign minister said his country is prepared to defend itself after NATO warned Russia was sending combat troops across its border. Russian President Vladimir Putin denies military involvement.

“Is there a risk that the situation is getting out of control? Yes, there is that risk,” Power said. It’s “an extremely worrying period.”

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Ukraine’s east lurched back toward open war as the government in Kiev and pro-Russian rebels accused each other of starting major offensives in the region.

The Ukrainian government said there were 26 outbreaks of fighting yesterday between its forces and separatists in the east, while the rebels said the Kiev government’s troops had gone on a large-scale military push there.

The standoff is coming to a head after Ukraine and its allies accused separatists of undermining peace efforts with Nov. 2 elections in Donetsk and Luhansk. Russian President Vladimir Putin said Nov. 5 that Ukraine’s “civil war” isn’t subsiding as cities continue to come under shelling and the civilian death toll rises.

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…this is a classic case of predatory pricing: set your price low enough long enough to do real damage to competitors, and reduce their market share, not just immediately, but in the middle to long term.

Now admittedly some pet targets may not be hurt as badly as hoped. Russia will suffer more of an opportunity loss than an actual cost from the price reduction, since the ruble has fallen significantly against the dollar. The Saudis may hope to partially displace Russia as a supplier of oil to Europe (now roughly 1/3 of the total) but refineries would need to be retooled to refine the Saudi’s light crude, so it isn’t clear whether even what amounts to bargain prices will offset this cost (and readers point out that Russian crude may also produced a better mix of distillates for European use, since they are much heavier users of diesel fuel than the US).

But aside from the not-inconsiderable economic impact, the surprise Saudi step looks to be an even bigger geopolitical winner. The US and Riyadh have been at odds for over a year; the Saudis were particularly unhappy over the US failure to try to topple Assad last summer (you may recall the intensity of the Administration warmongering versus the dubious US interest; even Congress showed an unexpected amount of backbone and made its lack of support for Syrian adventurism clear). The Saudis have also long been less than happy with the US refusal to attack Iran (which is a rare case of the US acting as a responsible hegemon and curbing a putative ally with a bad case of blood lust). That unhappiness has ben compounded by the US now effectively helping the Assad regime and working in as distanced a manner as possible with Iran in targeting ISIS.

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The Baltic countries are registering a dramatic increase in Russian military provocations, rattling nerves in a region which fears it could be the next frontier after Ukraine in Moscow’s quest at asserting its regional power.

Nato fighters policing Baltic airspace were scrambled 68 times along Lithuania’s borders this year, by far the highest count in more than 10 years. Latvia registered 150 “close incidents”, cases where Russian aircraft were found approaching and observed for risky behaviour. Estonia said its sovereign airspace had been violated by Russian aircraft five times this year, nearing the total count of seven over the previous eight years.

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Vladimir V. Putin, the Russian leader, they say, got everything he wanted by attacking Ukraine overtly in Crimea and covertly in the southeast.

The vague cease-fire terms in the southeast are likely to only freeze the conflict. It could leave Russia’s thuggish proxies running the area and create a permanent geographic Taser that Moscow could use to zap Ukraine at will, leaving it unstable and less than sovereign.

The association agreement with the European Union ”” described by its advocates as the catalyst for broad reform ”” has been delayed until the beginning of 2016 because of Russian objections, leaving its fate uncertain.

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It was the time of unraveling. Long afterward, in the ruins, people asked: How could it happen?

It was a time of beheadings. With a left-handed sawing motion, against a desert backdrop, in bright sunlight, a Muslim with a British accent cut off the heads of two American journalists and a British aid worker. The jihadi seemed comfortable in his work, unhurried. His victims were broken. Terror is theater. Burning skyscrapers, severed heads: The terrorist takes movie images of unbearable lightness and gives them weight enough to embed themselves in the psyche.

It was a time of aggression. The leader of the largest nation on earth pronounced his country encircled, even humiliated. He annexed part of a neighboring country, the first such act in Europe since 1945, and stirred up a war on further land he coveted. His surrogates shot down a civilian passenger plane. The victims, many of them Europeans, were left to rot in the sun for days. He denied any part in the violence, like a puppeteer denying that his puppets’ movements have any connection to his. He invoked the law the better to trample on it. He invoked history the better to turn it into farce. He reminded humankind that the idiom fascism knows best is untruth so grotesque it begets unreason.

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Mr Putin’s first choice was to suborn Ukraine without invading it, but by demonstrating his willingness to use force, he has sown fear””and, for Mr Putin, fear is the basic currency of politics. A puny, divided response has emasculated the West, which he thinks is bent on weakening and encircling Russia. For him, Russia’s post-Soviet history has been a catalogue of American-inflicted humiliation, which it is his mission to reverse. He wants his neighbours to be weak more than he wants Russians to be prosperous; he prefers vassals to allies.

This world view””a noxious compound of KGB cynicism and increasingly messianic Russian nationalism””propelled him into Ukraine. The idea that his adventurism will end in the Donbas is as naive as the theory that he would be satisfied when his troops wrenched Abkhazia and South Ossetia from Georgia in 2008. This week Mr Putin rattled his sabre at Kazakhstan, still ruled by the elderly Nursultan Nazarbayev: any succession squabble would be an opportunity. Estonia, Latvia and Lithuania, small, ex-Soviet countries, have Russian-speaking minorities of the kind Mr Putin has undertaken to “protect”. These Baltic states joined NATO in 2004. But what if a Russian-financed separatist movement sprang up, a Baltic government claimed this amounted to an invasion and its NATO allies refused to help? The alliance’s bedrock””its commitment to mutual self-defence””would be shattered.

Mr Putin’s revanchism must therefore be stopped in Ukraine.

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Ukrainian President Petro Poroshenko on Wednesday announced a cease-fire in eastern Ukraine, although major questions remained about whether it would be implemented.

The surprise decision comes as Russian-backed rebels in eastern Ukraine have made rapid strides to retake territory in the last week, after apparently receiving an infusion of support from Russia, which the Kremlin denies.

Poroshenko’s office announced the cease-fire in the eastern Donets Basin region, also known as Donbas, after a telephone conversation with Russian President Vladimir Putin.

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Holy God, we bless thy Name for Herman, joyful north star of Christ’s Church, who came from Russia to bring the Good News of Christ’s love to thy native people in Alaska, to defend them from oppressors and to proclaim the Gospel of peace; and we pray that we may follow his example in proclaiming the Gospel; through the same Jesus Christ, who with thee and the Holy Spirit livest and reignest, one God, throughout all ages. Amen.

A Russian crime ring has amassed the largest known collection of stolen Internet credentials, including 1.2 billion username and password combinations and more than 500 million email addresses, security researchers say.

The records, discovered by Hold Security, a firm in Milwaukee, include confidential material gathered from 420,000 websites, ranging from household names to small Internet sites. Hold Security has a history of uncovering significant hacks, including the theft last year of tens of millions of records from Adobe Systems.

Hold Security would not name the victims, citing nondisclosure agreements and a reluctance to name companies whose sites remained vulnerable. At the request of The New York Times, a security expert not affiliated with Hold Security analyzed the database of stolen credentials and confirmed it was authentic. Another computer crime expert who had reviewed the data, but was not allowed to discuss it publicly, said some big companies were aware that their records were among the stolen information.

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It has become a commonplace idea that today’s frothy financial markets are oblivious to the stream of bad news from eastern Europe, not to mention the Middle East. But that does not mean the news is not really bad at all. New York and London were equally blasé about the origins of the first world war. It was not until three weeks after the Sarajevo assassination that the London Times even mentioned the possibility that a European political crisis might lead to financial instability. Nine days later the stock exchange closed its doors, overwhelmed by panic selling as investors suddenly woke up to the reality of world war. Let no one reassure you that this crisis has somehow been “priced in”. No one priced in the guns of August 1914.

This should give not only historians pause. If great historical events can sometimes have causes that are too small for contemporaries to notice, might not a comparable crisis be in the making today? What exactly makes our July crisis different? Is it because we now have the UN and other international institutions? Hardly: with Russia a permanent member of the UN Security Council, that institution has been gridlocked over Ukraine. Is it because we now have the EU? Certainly, that eliminates the risk that any west European state might overtly take Russia’s side, as France and Britain did in 1914, but it has not stopped EU members with significant energy imports from Russia fighting tooth and nail against tougher sanctions.

What about the role of globalisation in diffusing international conflict? Sorry, you could have made the same argument 100 years ago (indeed, Norman Angell did, in his book The Great Illusion). Very high levels of economic interdependence do not always inoculate countries against going to war with each other.

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Russians largely back their country’s tough stance on Ukraine, which earned Russia more economic sanctions from the U.S. and Europe this week. Nearly two-thirds of Russians surveyed before the latest round of sanctions believe Russia needs to have a “very strong position” in relations with its neighbor. One in five Russians still believe their country needs to have good relations with Ukraine by all means.

Russians’ attitudes could reflect the stronger position they may feel their country is already in after Russia’s seizure and annexation of Ukraine’s Crimea region in March. Although the U.S. and other Western powers largely condemned the action, imposing sanctions and other penalties against specific individuals and businesses in Russia, nearly all Russians (95%) who are following the news about Crimea say they support Crimea joining Russia.

The earlier sanctions did little to dampen the average Russian’s enthusiasm for the country’s leadership, with President Vladimir Putin’s popularity in Russia vaulting to its highest level in years, and record-level confidence in the country’s military, the national government, and the honesty of elections. The previous sanctions also did not appear to affect Russians’ views of their country’s economy, with more Russians seeing their economy as getting better now than has been the case since 2008.

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U.S. and European Union sanctions against Russia’s Vladimir Putin threaten to shut off some of the world’s largest energy companies from one of the biggest untapped energy troves on the planet.

As violence escalates in eastern Ukraine between government and separatist forces, the EU yesterday sought to punish Russia for its involvement by restricting exports of deep-sea drilling and shale-fracturing technologies. The U.S. followed suit, with President Barack Obama announcing a block on specific goods and technologies exported to the Russian energy sector.

“Because we’re closely coordinating our actions with Europe, the sanctions we’re announcing today will have an even bigger bite,” Obama told reporters yesterday at the White House. “Russia’s energy, financial and defense sectors are feeling the pain.”

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The downing of Malaysia Airlines jet MH17 in eastern Ukraine may constitute a “war crime”, the UN human rights chief Navi Pillay says.

Ukraine and Western governments believe pro-Russian rebels shot down MH17, using a missile system supplied by Russia. All 298 people on board – most of them Dutch – died on 17 July.

Moscow and the rebels have blamed Ukrainian forces for the plane crash.

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Although we may refer to militants in eastern Ukraine as “pro-Russian separatists,” we are not confused by who, and what, they really are: an extension of the Russian state. They derive their material, political and logistical support from the Putin regime, and their criminal aggression and recklessness reflect the values of their Russian benefactors. Some have suggested that these agents of the Putin regime may have shot the plane down by accident. We do not, and may never, know. But accident or no accident, the blood is on the hands of the men who took such a risk and of the government that encouraged them to do so. Even if they did not intend to kill hundreds of innocent civilians, there is no denying their intent to continue waging a war on behalf of a regime that remains in violation of international law for its illegal occupation of Crimea.

Russia’s aggressive militarism and expansionism are a threat to more than just Ukraine; they are a threat to Europe, to the rule of law and to the values that bind Western nations. Canada will not stand idly by in the face of this threat.

That is why we have taken a strong stand, imposing a broad range of sanctions against those entities and individuals responsible for the ongoing crisis in Ukraine. Since the start of the crisis in Ukraine, Canada has imposed sanctions on nearly 150 individuals and entities. Earlier this week we broadened our approach, announcing economic sanctions against key sectors of the Russian economy.

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Two of the EU’s most senior figures have urged the bloc’s prime ministers to approve a sweeping set of new sanctions against Russia next week.

The move marks the clearest signal to date that Europe is prepared to change its cautious approach towards the Kremlin over the Ukraine crisis.

In a letter sent late on Friday to Europe’s prime ministers, Herman Van Rompuy, the European Council president, said the sanctions package ”“ which is directed at Russia’s financial, energy and defence industries ”“ “strikes the right balance”.

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President Vladimir Putin will resist mounting pressure to abandon pro-Russian rebels immediately while seeking to convince the world that Ukraine, not the insurgents, shot down Malaysian Air Flight MH17, according to three people familiar with Kremlin discussions.

Putin and his inner circle are nervous that the intensifying standoff with the U.S. and its allies over the insurgency in Ukraine may cripple Russia’s economy, the people said. Still, Putin won’t back down because he refuses to be seen as weak, one of the people said.

The international outrage over the attack on the Boeing Co. 777, which killed 298 people, and the sanctions imposed and threatened by the U.S. and the European Union over Russia’s policies in Ukraine have created a new reality that the leadership is struggling to adapt to, one Putin adviser said. The U.S. says the jet was probably downed by separatists using a Russian-supplied missile and launcher, which they deny.

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Two Ukrainian fighter jets were shot down Wednesday over separatist-held territory not far from the site of the Malaysia Airlines crash as international outrage over the tragedy has done little to slow the fierce fighting in eastern Ukraine.

While Kiev made significant advances against rebels in the country’s east in recent days, Ukrainian and U.S. officials say Russian weapons are continuing to pour over the border. The escalation in fighting suggests Russian President Vladimir Putin has no intention of dialing back his support for the separatists, denting Western hopes that international attention from the airliner crash would force him to change course.

“The fact that you have two additional planes shot down speaks to the pattern we’ve seen over the last several weeks””which is Russian-backed separatists, armed with Russian anti-aircraft [weapons], posing risks to aircraft in Ukraine,” said Ben Rhodes, a deputy White House national security adviser.

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The U.S. leveled its most-explicit allegations yet of Russia’s involvement in the downing of Malaysia Airlines Flight 17 and subsequent efforts to conceal evidence, and European leaders threatened broad new sanctions against Moscow, marking a turning point in the standoff between the West and the Kremlin.

Secretary of State John Kerry on Sunday warned Russian President Vladimir Putin “for the last time” to accede to Western demands to disarm pro-Russian separatists and stabilize Ukraine.

Officials in Europe, meanwhile, departed from their initially muted reaction as anger grew across the continent over the attack that left 298 people dead and the chaos at the crash area in eastern Ukraine. Reports that bodies were being handled haphazardly and that separatist guards on the scene were drunk have caused fury in European countries where victims came from, including the Netherlands.

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…in the past 48 hours, open-source intelligence ”“ and information gathered by national intelligence agencies ”“ has built up a compelling body of evidence that seems to point to what ”“ and who ”“ shot down the Malaysia Airlines jet and its 298 innocent passengers over eastern Ukraine.

It suggests pro-Russian separatists and Russian military personnel shot down MH17, by mistake, with a Buk-M1 surface-to-air missile launcher from near the towns of Snizhne and Torez, according to briefings given by Ukrainian and US intelligence officials at the weekend.

The officials say the missile system was probably supplied by Russia and smuggled across the border into eastern Ukraine in recent weeks.

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Pro-Russia separatists who are believed to have used the “Buk” antiaircraft missile system to shoot down a Malaysian airliner in eastern Ukraine probably needed Russian assistance to operate it, senior U.S. officials said Friday.

The Russian-designed missile system, also known as an SA-11, “is a sophisticated piece of technology, and it strains credulity to think that it could be used by separatists without at least some measure of Russian support and technical assistance,“ Rear Adm. John Kirby told reporters at the Pentagon.Read it all.

Pro-Russian rebels shot down a Malaysian airliner over Ukraine after mistaking it for a military transport plane, according to phone-tapped recordings released by authorities in Kiev.

The recordings suggest that Malaysia Airlines Flight MH17, which had 283 passengers and 15 crew aboard, was targeted by a Cossack unit supporting the separatist forces in the Donetsk region.

It took the rebels about an hour to get to the scene of the crash and work out that the plane was not, as they had thought, a Ukrainian air force Antonov-26 but a passing passenger plane – prompting a Cossack commander to suggest that the aircraft must have been carrying spies.

”They shouldn’t be ****ing flying. There is a war going on,” he says.

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President Vladimir Putin’s intransigence over Ukraine risks turning him into a global pariah should the blame for downing a Malaysian Air jet fall on pro-Russia rebels.

The crash of the Boeing Co. (BA) 777, which had 298 passengers on board, follows by less than 24 hours the imposition of new sanctions against Russia that targeted major energy companies and banks. While the rebels denied accusations by the Ukraine government that they shot down the flight, the U.S. said this week that the separatists were being supplied with more heavy weaponry from Russia.

“If there is solid evidence that it is the militants who did it and the weapon originated in Russia, there will be really strong pressure on Putin to really contribute to de-escalation,” Masha Lipman, an analyst at the Carnegie Moscow Center, said by phone. “This should change the way all nations, and not just the West, regard this conflict in Ukraine, and Russia’s role in it.”

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Shorty after the sanctions were unveiled, US President Barack Obama made a statement where he said these measures were designed to bring no inconveniences to US companies and its allies.

“These sanctions are significant, but they are also targeted – designed to have the maximum impact on Russia while limiting any spillover effects on American companies or those of our allies,” Obama vowed.

But Putin reminded about the existing agreement between Russia’s oil giant Rosneft and ExxonMobil that has granted the US-based energy corporation access to the Russian hydrocarbon reserves in the Arctic.

“So, don’t they want it [ExxonMobil] to work there? They are dealing damage to their biggest energy companies – and to what purpose?” Putin wondered speaking at a press conference on Thursday.

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Violence in Ukraine escalated sharply Tuesday, as artillery shells and airstrikes pierced the relative calm of a 10-day cease-fire hours after President Petro Poroshenko allowed it to expire.

Both sides appeared to be readying for a protracted battle after days in which the fighting diminished but did not disappear. It remained unclear whether the Ukrainian military, which has battled pro-Russian separatists since mid-April, would be able strike a decisive blow against the rebels, who have seized territory in eastern Ukraine.

The longer a conflict drags on, the greater the risk of further civilian casualties and the harder it will be for Ukraine’s new government to stitch the society back together. Ukraine’s economy presented a formidable challenge even without a growing insurgency in the country’s industrial heartland. The foreign ministers of Ukraine, Russia, Germany and France planned to meet Wednesday in Berlin in a last-ditch effort to restart negotiations, the Russian Foreign Ministry said late Tuesday.

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The lands lying between the Baltic and the Black Sea have had many names: the “bloodlands” of the second world war, the “captive nations” of the cold war, the “ex-communist” countries of the post-Soviet era and, for many, the “new members” of the European Union. Before the 2003 Iraq war, Donald Rumsfeld, America’s defence secretary, praised “new Europe” as pro-American, unlike “old Europe” (ie, France and Germany). The French president, Jacques Chirac, then chided the easterners as having “missed a great opportunity to keep quiet”.

The nomenclature must now change again, because of Ukraine. In its response to Vladimir Putin’s revanchism, Mr Rumsfeld’s new Europe is remarkably similar to the old one: divided roughly between north and south. Poland and the Baltic three are hawkish, believing that Russia has irrevocably changed the post-war order; Bulgaria and Hungary are among those opposed to tough sanctions who hope that business with Russia will somehow return to normal.

This spectrum might be a welcome sign of normality, if only the stakes were not so high. The divisions of eastern Europe aggravate those of the EU as a whole. Nobody tells easterners to shut up any more; even France is wooing them. But if the countries closest to Russia, with direct experience of Soviet occupation, cannot agree on sanctions, why should others endanger their still-fragile economies?

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State Infrastructure Minister Christian Pegel has traveled to Russia twice since the Ukraine crisis broke out, in part to drum up business for the Sassnitz ferry. “We are especially closely connected” to Russia, Mr. Pegel says of his region. “Perhaps also especially dependent.”

U.S. politicians have voiced frustrations in recent weeks about Germany’s reluctance to take a more confrontational stand against Russia. But for Germans, the risk in pursuing a hard line is unmistakable. Places like Mecklenburg-Western Pomerania””a region of 1.6 million with the country’s lowest average income””have much to lose.

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The G7 group of nations agreed on Saturday to impose sanctions on Russia over its meddling in Ukraine, adding to international pressure on Moscow.

The move effectively adds the voices of Canada and Japan to Friday’s announcement by America, Germany, France, Italy and the UK that further sanctions were imminent.

The G7 group, which represents seven of the world’s major economies, said it hoped the measures would have a “significant impact” in persuading the Kremlin to stop stirring separatist violence in eastern Ukraine.

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Given what we’ve seen in Ukraine, the US and the EU need to work much more closely together on policy vis a vis the non-Russian former Soviet states. This policy can’t be seen as simply legalistic or commercial, expanding free trade zones or supporting the rule of law and the development of institutions; security issues are also involved.

More, Europe’s failure to develop coherent energy policy is clearly a contributing factor to Putin’s transparent contempt for the bloc as well as to Europe’s continuing vulnerability to Russian pressure. Europe’s countries have many voices when it comes to energy policy; the United States needs to play a larger and more constructive role in the continent’s musings over energy policy, and the new American reserves now coming on line could be part of a long term strategy to reduce Europe’s vulnerability to energy blackmail.

The US may also need to consider how it can play a more useful role in Europe’s internal debates over economic policy. Europe’s weakness before Russian pressure is both directly and indirectly attributable in part to the fallout from the euro disaster. Economic pain has divided the union, alienated many voters both from Brussels and their national authorities, reduced Europe’s energy and resources for external policy ventures, contributed to the bitterness over immigration and fueled the rise of the extreme right wing parties Putin now seeks to mobilize. Important American interests have been seriously harmed by the monetary muddle in Europe, and Washington needs to think more carefully about how it can play a more consequential and constructive role.

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U.S. Air Force General Philip Breedlove, NATO’s supreme allied commander in Europe, has been given until Tuesday to propose measures in response to the ongoing presence of Russian troops along the border with eastern Ukraine

NATO troops, including Americans, could be deployed to Eastern Europe in an effort to shore up defenses in allied countries that share a border with Russia, a top U.S. military official said Wednesday.

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