National Real Estate Propaganda Group (aka The National Association of Realtors) February report is beyond laughable. Let’s take a look…
U.S. home resales dropped slightly in February to a 19 month-low as cold weather and a shortage of homes for sale continued to sideline potential buyers.
Damn, I forgot about that snow storm in California. In terms of shortage….. call Citi, Blackstone, Wells, Chase, Freddie, Fannie, etc… they should have at least a Million units of your inventory sitting on their balance sheet.
Even though temperatures remained chilly in February, pinching sales, a modest improvement in inventory on the market indicates buyers are expected to jump in soon.
Sure, millions of buyers are sitting on the side line, waiting to jump in. Whatever makes you guys sleep better at night.
If you want the truth, stop reading this BS and read my comprehensive Real Estate Report showing you exactly when, how & why our real estate market is about to crash……again.
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Existing Home Sales Edge Down to 19-Month Low in February
U.S. home resales dropped slightly in February to a 19 month-low as cold weather and a shortage of homes for sale continued to sideline potential buyers.
The National Association of Realtors said on Thursday home sales dropped 0.4 percent to an annual rate of 4.60 million units, the lowest level since July 2012, and in line with economists’ expectations. January’s sales pace was unrevised at 4.62 million.
Even though temperatures remained chilly in February, pinching sales, a modest improvement in inventory on the market indicates buyers are expected to jump in soon.
“The weather surely cannot get any worse,” NAR economist Lawrence Yun told reporters. “The new supply will help tame price growth.”
The median existing home price rose 9.1 percent in February to $189,000 from the same month in 2013.
Mortgage rates have risen almost a full percentage point in the past year and the increase in house prices has far outpaced income growth, making home-buying less affordable.
In addition, there has been a shortage of homes for sale on the market. Home resales have declined in six of the last seven months, having peaked in July.
The number of previously-owned homes available for sale at the end of February represented a 5.1 months’ supply, still tepid but up from 4.9 months’ worth in January. A healthy market has about a six-to-seven month supply.
Gold and gold related assets sold off over the last couple of days. Coming down to close a fairly large gap that was opened up on March 12th. Just as it should have. Remember, all financial markets and individual stocks tend to close their gaps. Sometimes it takes just a few days and sometimes decades. Yet, rest assured, the market will close its gaps. Which indicates a short-term bounce for gold in the near future to re-test it’s March 14th top.
Long-term, gold is very well positioned for a multi year rally. I base this conclusion on my timing and mathematical work and its application to the equity markets. Our mathematical work indicates a fairly strong bear market in the US equity markets between 2014-2017. When the bear market kicks in and the US Economy slips back into a recession, the FED will open up the flood gates…..once again. They will have no other choice.
Since Gold does fairly well in such an environment, we anticipate Gold to break out above 2013 top and keep going for at least a few years as investors seek safety and an inflation hedge. Further, we believe the bull market in gold will resume itself as soon as the bear in equity markets starts. That should happen relatively soon. Today’s technical setup confirms this notion as highly probable. If you would like to know exactly when the bear market in equities will start (to the day), please Click Here
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A few days after Vladimir Putin wiped the floor with the warmongers in Washington, John Kerry wants to make sure everyone remembers “America Won The Cold War, Get Over It”. Unfortunately for us, “My co&# is bigger than your #9ck” tirade between Russian and US politicians is not yet over. Can’t we all get together and drink Coca Cola?
On a more serious note, this is the type of behavior that will lead to an eventual war with Russia. Over the last two weeks I published an incredibly important report, clearly outlining when, how & why the US will start a military conflict with a coalition of Russia/China. To see the report CLICK HERE. It is this type of stupidity and war drum beating that will lead to an eventual destruction of this beautiful country. Great job Obama and Kerry.
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John Kerry to Russia: You Lost the Cold War, Get Over it
Secretary of State John Kerry had harsh words today for Vladimir Putin, saying he is surprised and disappointed in a speech the Russian president gave about the country’s right to take over Crimea from Ukraine.
“It really just didn’t jibe with reality or with what’s happening on the ground,” Kerry said, speaking to a group of university students at the State Department. “The president may have his version of history, but I believe that he and Russia, for what they have done, are on the wrong side of history.”
Kerry refused to give any details about what the United States will do if Russia goes further toward annexing the Crimean peninsula but said such an act would be as “egregious as any step that I can think of that could be taken by a country in today’s world, particularly by a country like Russia where so much is at stake.”
He suggested that the United States didn’t believe the Kremlin would move beyond Crimea given Putin’s speech today, which focused on the historical ties Russia and the Ukraine have. Kerry acknowledged those ties but said they were no excuse for the invasion.
“Russia has an enormous historical connection to Ukraine,” Kerry said. “We know this, but that doesn’t legitimize just taking what you want because you want it or because you’re angry about the end of the Cold War or the end of the Soviet Union.”
Russian stock market has been body slammed over the last few weeks due to Russia’s conflict with Ukraine/West. Losing 25% of its value in just 20 trading days. Yet, over the last 4 trading days the market is up 12%. Russian billionaires are buying hand over fist (see the article below), the valuations are very low and the conflict is likely to be over. Is it time to buy?
Not yet. I will admit that the Russia stock market is substantially undervalued (unlike it’s American counterpart). The conflict in Ukraine is likely to be over and no real economic sanctions will fly against Russia. Yet, here is what’s stopping me.
The RTS Index has been in a technical downtrend since 2011. While we might get a technical bounce from today’s lows it will take a lot more for the bear market to reverse itself.
The RTS collapsed 75% during the financial crisis and the bear market of 2007-09. Our mathematical and timing work indicates that the US will have a severe bear market between 2014-2017. If so, Russian market is likely to continue with its downtrend.
As such, it is a little too early to invest in the Russian market at this stage. Further downside is highly probable. However, if the market is able to reverse it’s bearing trend, it might make sense to reconsider. Fun fact, the Russian market is still up 2,600% from 1998 crisis bottom.
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Russia Billionaires Buying Stock as BofA Says Bottom Near
Two of Russia’s top billionaires are taking advantage of the bear-market collapse to buy back shares on the cheap.
Vagit Alekperov, chief executive officer at oil producer OAO Lukoil and Russia’s 11th-wealthiest man, has stepped up his purchases of the stock, buying $147 million in the first quarter, according to data compiled by Bloomberg. Mail.ru Group Ltd. (MAIL), the Internet company controlled by Alisher Usmanov, Russia’s richest man, said yesterday it plans to buy $45 million of its own stock.
Lukoil and Mail.ru have each fallen more than 14 percent this year inLondon share trading as President Vladimir Putin’s bid to prise the Crimea peninsula from Ukraine spurred concern Russia’s economic slump will deepen. TheMicex (INDEXCF) Index, the benchmark in Moscow, rebounded 8 percent in the last two days after sliding into a bear market last week. Bank of America Corp. said yesterday that stocks “could be nearing the trough” of the rout.
“Buybacks by Russian companies will be substantial because valuations are extremely attractive and the companies generate a lot of cash,” Mattias Westman, the chief executive officer of London-based Prosperity Capital Management Ltd., which manages about $4 billion in Russia and other former Soviet countries, said by phone. “The market is rallying as it seems Russia has no plans to split up Ukraine. There are still some risks, although further sanctions against Russia will most likely be cosmetic.”
Mounting concern that the U.S. and Europe will impose economic sanctions on Russia following its annexation of Ukraine’s Crimea peninsula has sent valuations for the Micex to the lowest since May 2012. Mail.ru plunged 18 percent this year while Lukoil declined 15 percent. Bank of America Corp. said yesterday that “the market could be nearing the trough of the selloff.”
OAO Novatek bought 2.5 million shares between March 11 and March 14, according to a March 17 statement. The company resumed its share buyback program as the “current share price significantly diverges from the intrinsic value,” Chief Executive Officer Leonid Mikhelson said.
OAO Rosneft’s CEO Igor Sechin and top managers bought the oil producer’s shares after the drop, the company’s press service said by phone. Rosneft slumped 3.9 percent last week.
Cheapest Valuations
The Bloomberg Russia-U.S. Equity index of the most-traded Russian shares in the U.S. rallied the most in two weeks, increasing 4.1 percent to 83.44 in New York yesterday. Yandex NV (YNDX), Russia’s biggest Internet company, jumped 6.7 percent to $32.03 and trimmed this year’s decline to 26 percent. The Market Vectors Russia ETF (RSX), the biggest U.S. exchange-traded fund that holds Russian shares, surged 4.7 percent to $23.51, the biggest gain since July.
Photographer: Simon Dawson/Bloomberg
USM Holdings Ltd. Owner Alisher Usmanov.
The Micex decreased 0.7 percent to 1,326.32 by 5:42 p.m. in Moscow, taking its drop this year to 12 percent. The gauge is the cheapest among 21 developing countries monitored by Bloomberg, trading at 4.8 times estimated earnings. That compares with a valuation of 14 for India’s S&P BSE Sensex Index and of 9.1 for Brazil’s Ibovespa.
Mail.ru rallied 11 percent to $36.70 in London yesterday, gaining the most since August 2011, while Lukoil added 3.5 percent to $53.30. Mail.ru traded at 19.7 times estimated earningsyesterday, rebounding from an eight-month low of 17.5 on March 14. Lukoil traded at a multiple of 4.1, up from a 20-month low of 3.8 reached on March 3.
Military Phase
Usmanov, with a net worth of $17.5 billion, ranks 42nd worldwide on the Bloomberg Billionaires Index. Alekperov, with $10.3 billion, ranks 113th globally, according to the gauge.
Oleg Tinkov, founder of consumer bank TCS Group Holding Plc., criticized fund managers in January for acting as “speculators” after his company’s stock plunged 28 percent in the month.
Ukraine’s government said its conflict with Russia has entered a military phase as clashes in the breakaway Crimea region intensified, killing at least one Ukrainian serviceman. Western leaders condemned Putin’s push to annex Crimea and promised further sanctions as early as this week.
“We don’t know what the responses are going to be on the political side, and that creates a lot of uncertainty,” Bryan Carter, portfolio manager at Acadian Asset Management, said in an interview at Bloomberg headquarters in New York yesterday.
Tensions are increasing after Putin signed a treaty annexing Crimea into the Russian Federation yesterday. The Black Sea peninsula in a disputed March 16 referendum voted to leave Ukraine and join Russia.
‘Bottom Fishing’
“There is bottom-fishing going on,” Vladimir Osakovskiy, chief economist for Russia and theCommonwealth of Independent States at Bank of America Corp. in Moscow, said by phone yesterday. “The outlook for the market will depend on the type and intensity of further sanctions. If we are talking real economic sanctions, those that would restrict trade and cut access for Russian companies to international capital markets, then we would see a new bottom. The risk is still there.”
Mail.ru agreed to buy 12 percent of Russia’s biggest social network VKontakte, raising its stake to 52 percent, and started to buy $45 million of its own stock in an employee incentive program, the company said in statements yesterday.
“The volatility in the markets caused by political events allowed the employee benefit trust an opportunity to buy stock at what we consider a good valuation,” Mail.ru’s Chief Financial Officer Matthew Hammond wrote in an e-mail yesterday from Dubai. The program “looks to buy GDRs in the market when we consider it a good price,” he said.
Lukoil Purchases
Alekperov’s purchases of Lukoil stocks in the current quarter compares with a total of $93 million in the same period last year, data compiled by Bloomberg show.
Lukoil’s press service and investment relations department were unable to comment on whether Alekperov plans to further increase his stake in the company when contacted by Bloomberg News by phone and e-mail after normal business hours in Moscow.
The RTS Volatility Index, which measures expected swings in the index futures, decreased 3.1 percent to 45.62 today and RTS index futures rose 0.3 percent to 113,390 in U.S. hours.
Janet Yellen spooked the markets on Wednesday by indicating that the FED might start tightening sooner and faster than previously anticipated. Sending the DOW down 200 points in a matter of minutes. Yet, let me ask you this. Will the FED be tightening if the market finds itself below 14K on the DOW and with economic data showing the country is in a recession (or quickly approaching one)?
I don’t think so. And that is exactly what our timing and mathematical work indicates. If anything, the FED will be trying to figure out a way to pump even more money into out economic system in order to try and re-inflate the markets. Will her comments this week be enough to set the market on a bearish path? Perhaps. If you would like to know exactly when the Bear Market of 2014-2017 starts and its exact internal structure, please CLICK HERE.
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Fed may raise rates as soon as next spring, Yellen suggests
WASHINGTON (Reuters) – The U.S. Federal Reserve will probably end its massive bond-buying program this fall, and could start raising interest rates around six months later, Fed Chair Janet Yellen said on Wednesday, in a comment which sent stocks and bonds tumbling.
Yellen’s remarks at her first news conference as the head of the central bank pointed to a more aggressive path toward higher interest rates than many had anticipated, and bets in financial markets shifted accordingly.
The comments came after a two-day meeting in which Fed officials made another reduction in their bond-buying stimulus and decided to jettison a set of guideposts they were using to help the public anticipate when they would finally raise rates.
The Fed said the change in its rate hike guidance did not mark a shift in its intentions and that it would wait a “considerable time” after shuttering its asset purchase program before pushing borrowing costs higher.
Yellen, who had fielded numerous questions without a hitch, hesitated when asked what the Fed meant by “considerable.”
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Federal Reserve Chair Janet Yellen answers a question at a news conference following the March 2014 …
“I — I, you know, this is the kind of term it’s hard to define, but, you know, it probably means something on the order of around six months or that type of thing. But, you know, it depends — what the statement is saying is it depends what conditions are like.”
Several analysts wondered whether her answer was an unintended slip, given the deliberately vague language of the Fed’s statement.
Either way, the reaction in financial markets was swift and sharp. Prices for U.S. stocks and government bonds added to earlier losses triggered by fresh Fed forecasts that showed policymakers are inclined to raise rates a bit more aggressively than they had been just a few months ago. The U.S. dollar rose.
“The forecast change could be interpreted as a relatively hawkish shift … and as such the general market reaction seems well-founded,” said JPMorgan economist Michael Feroli.
Futures traders moved to price in a first interest rate hike as soon as April 2015. Previously, it was July.
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Federal Reserve Chair Janet Yellen talks at a news conference following the March 2014 Federal Open …
Most top Wall Street economists, however, continued to see the first rate hike in the second half of 2016, according to a Reuters poll.
MIXED MESSAGES
Yellen sought to use her news conference to emphasize that rates would stay low for awhile and rise only gradually. She also said they could end up staying lower than normal “for some time” even after the jobless rate drops to a healthy level.
The Fed would look not only at how close inflation and unemployment are to its goals, but how fast, or slowly, those measures are approaching those goals, she said.
At 6.7 percent, the unemployment is well above the 5.2 percent to 5.6 percent range Fed officials see as in keeping with full employment. The central bank’s favored inflation gauge is barely more than half of its 2.0 percent target.
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Federal Reserve Chair Janet Yellen sits down before she holds a news conference following the March …
The Fed has held interest rates near zero since late 2008 and has pumped more than $3 trillion into the economy with its bond purchases to try to foster a stronger recovery.
Of the Fed’s 16 policymakers, only one believes it will be appropriate to raise rates this year; 13 expect a first rate hike next year, and two others see the first rate hike coming in 2016, according to the new forecasts.
But once rate hikes start, Fed officials see slightly sharper increases than they did in December, when they last issued forecasts. They now see rates ending 2016 at 2.25 percent, a half percentage point above their December projections. ID:nL2N0MG1AP]
The unease in markets “might be a sign that people think Yellen will tighten sooner rather than later,” said Wayne Kaufman, chief market analyst at Rockwell Securities in New York.
MEASURED WIND DOWN
The central bank proceeded with its well-telegraphed reductions to its massive bond-buying stimulus, announcing it would cut its monthly purchases of U.S. Treasuries and mortgage-backed securities to $55 billion from $65 billion.
The decision to further scale back its stimulus keeps the Fed on track for the measured wind down laid out by Yellen’s predecessor, Ben Bernanke. The Fed repeated that it plans to continue trimming the purchases in “measured steps” as long as labor conditions continue to improve and inflation shows signs of rising back toward the Fed’s 2.0 percent goal.
The Fed’s assessment of the U.S. economy chalked up recent weakness partly to adverse weather.
It had said since December 2012 that it would not consider raising short-term rates until the jobless rate fell to at least 6.5 percent, as long as inflation looked set to remain contained.
But the unemployment rate has fallen faster than anticipated, and officials dropped the guidance, saying they would look at a range of economic indicators to judge the economy’s readiness for higher rates.
Minneapolis Fed President Narayana Kocherlakota dissented, saying that getting rid of the numerical guidance could hurt the credibility of the Fed’s commitment to return inflation to 2.0 percent.
That’s right, your acceptance. At least according to Josh Brown from Ritholtz Wealth Management. Just accept that this Bull Market is getting started, the CapEx cycle is about to kick in and we will surely see this market take off to the moon. Screw China, credit bubble, the FED, speculation, overvaluation, unemployment, cycles, timing, technicals and everything else I talk about on this blog. Just accept and welcome this bull market into your soul. That’s all you need brother. Praise the Lord.
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Bull market needs one thing to keep going: Josh Brown
After reaching a major milestone last week, stocks have been a mixed bag; U.S. markets have largely shrugged off escalating tensions between Western nations and Russia this week over a possible annexation of Ukraine’s Crimea region. Early Wednesday afternoon major indexes were flat as investors awaited comments from Fed Chair Janet Yellen.
Many investors are beginning to wonder if the five-year-old bull market has hit its peak.
Josh Brown, CEO of Ritholtz Wealth Management and author of “The Reformed Broker” blog, says we’re in the “acceptance phase” of this bull market — a stage nestled between enthusiasm and greed. If the good times are to continue for investors, then capital spending has to increase.
While the capEx cycle remains elusive — “there’s no evidence of it yet” Brown says — a new survey of CEOs by the Business Roundtable shows that almost 50% of the CEOs surveyed expect higher capital spending in the next six months, up from 39% three months ago.
“If you’re bullish now the bull case can’t be more multiple expansion as was the case last year,” Brown argues in the video above. “The cap ex cycle is long overdue…it’s been restrained for five years.”
If Brown is right, you may want to follow his investing lead: he’s overweight industrials, financials, tech and energy — all sectors that benefit from additional cap ex spending. Banks especially are ripe for a comeback.
“They’re the cheapest sector in the market…historically very low priced to earnings,” he notes. “If rates go higher then banks should do well. A lot of people still have distrust in the financial system which works in your favor if you’re a long-term investor.”
An interesting day with the Dow Jones down -114 points (-0.7%) and the Nasdaq down -26 points (-0.6%).
Today was a perfect illustration why it’s good for your health not to pay attention to the market action on an hourly basis. What’s all the fuss about? Who cares and it doesn’t matter should be an appropriate answer……but since you asked. Apparently, the combination of words coming out of Janet Yellen’s mouth set off “algos” that went ahead and slammed the market.
What did she say? Nothing new. Just the fact that the FED MIGHT have been a little “over-optimistic”, that they MIGHT shorten the time frame on taper and that they MIGHT tighten sooner. A lot of irrelevant “MIGHT”, but the market thought otherwise. Market action over the next few days is critical to see if her comments had any lasting impact. One thing is certain, you won’t see Janet Yellen speaking her mind again. She is surely to be coached on how to say “a lot” without saying “anything”.
Yet, as I have warned you here many times before, most market participants shouldn’t worry about the FED tightening too much. The Bear Market of 2014-2017 is nearly here. When it starts and the US Economy slips back into a recessionary mode, all talk of “tightening” by the FED will go out the window. Whether that’s good or bad is for you to decide. If you would be interested in knowing exactly when the bear market of 2014-2017 will start (to the day) and its internal composition, please Click Here.
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A trader bought 150,000 bullish contracts on the VIX expiring in May with a strike price of 22, ($7.95 Million) while selling the same number of May 30 calls in a strategy known as a call spread, according to New York-based Miller Tabak & Co.
Perhaps this is one of my subscribers. When you can predict and time the market with great precision (as we can), this trade makes a lot of sense. While I will not comment on the trade directly, it does make a lot of sense if the Bear Market is about to start with a vengeance. As per my work on this blog, the bear market of 2014-2017 is, indeed, about to start. If you would be interested in learning exactly when it starts and it’s exact composition (exact up/down moves during the duration of the bear market) please CLICK HERE.
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VIX Trader Pays $8 Million on Bet Gauge to Rally 60% by May
An investor paid about $7.95 million for a trade that will pay off if the Chicago Board Options Exchange Volatility Index rallies at least 60 percent by May.
The trader bought 150,000 bullish contracts on the VIX expiring in May with a strike price of 22, while selling the same number of May 30 calls in a strategy known as a call spread, according to New York-based Miller Tabak & Co. The trade cost 53 cents to put on for each contract and it will profit if the volatility gauge rises above 22.53 from the current level around 14, data compiled by Bloomberg show. It has a maximum payoff if the VIX more than doubles to 30.
“It was one of the largest VIX trades we’ve seen in a while and an interesting way to put on a tail-risk hedge,” Lillian Seidman, an options strategist at Miller Tabak, said in an interview. “This is a play on the VIX shooting through its high not seen for the last couple of years.”
The VIX, an options-based measure of the price to protect against losses in the Standard & Poor’s 500 Index (SPX), soared 26 percent to 17.82 last week, while the benchmark equity gauge fell 2 percent for the biggest drop in seven weeks on concern that the standoff in the Crimea region between Ukraine and Russia could worsen. Almost $1.7 trillion was erased from global equities between March 6 and the end of last week, data compiled by Bloomberg show.
Share Rebound
Stocks rallied today after President Vladimir Putin said Russia wishes no harm to Ukraine. U.S. and European leaders condemned Russia’s push to annex Crimea and promised further sanctions as early as this week in the worst dispute since the Cold War.
The VIX, which hasn’t closed above 22 since the end of 2012, slumped 7.2 percent to 14.52 today. The gauge has fallen about 19 percent in the past two days for the biggest slide in more than a month. The May 22 and 30 VIX calls were the most-traded options contracts across U.S. exchanges today.
“Someone’s opening a new position in these VIX options,” Fred Ruffy, a Chicago-based senior options strategist at Trade Alert LLC, said in a phone interview. “It’s a view that volatility may spike over the next couple of months.”
Apparently, according to the Western media, former Soviet states and ethnic Russian populations within those states are now begging Russia to annex them as they did with Crimea.This was further confirmed when a number of drunk Russians now residing in Alaska have asked to join Russian Federation. According to them, the Alaska Purchase by the US in 1867 was inappropriately ratified and therefore illegal. The above mentioned Russians then sent a letter to Vladimir Putin and asked to be protected from the IRS and the NSA.
Not to be outdone, Turkey issued it’s own claim in Crimea.“Under Ottoman Empire treaty with Catherine the Great if Crimea declares independence it returns to Turkey. One of the most important points is the clause that stipulates conditions that if the peninsula does not declare its independence then it cannot be transferred to a third party. Otherwise, Crimea must automatically be returned under the aegis of Turkey,” claims the author. When asked for a comment, John McCain simply responded “I declare war on everyone”.
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Another Crimea? Ukraine’s neighbor asks to join Russia
As Russian president Vladimir Putin signed a treaty on Tuesday making Crimea part of Russia, a little-known region in neighboring Moldova has also pleaded to join the country.
Russian loyalists in the breakaway region of Trans-Dniester, which shares a border with Ukraine, asked the parliament in Russia to write new laws that would allow them to join the country.
The Trans-Dniester region split from Moldova around 1990 and made a failed attempt at independence in 2006, when it held a referendum that was unrecognized internationally.
The region did not want to split from the Soviet Union at the time of its collapse and has now requested unity with Russia.
Otilia Dhand, vice president at advisory and intelligence firm Teneo Intelligence said Trans-Dniester has been asking to join the Russian Federation for two decades, so now is an opportune moment to ask again.
Dhand said up until now the Kremlin had shown little interest in absorbing the region as it offers little strategic and economic benefits.
“There are 550,000 citizens of citizens of Trans-Dniester who mostly also claim other citizenships. There are about 150,000 of them that claim dual citizenship with Russia and many others claim Ukrainian citizenship or Romanian so it is kind of a mixed picture,” Dhand told CNBC.
“Russia has roughly 1,000 soldiers based there and also some ammunition and equipment that comes with it. They are not such a substantial force as they are in Crimea and Russia does not have common borders with Trans-Dniester, so it would be difficult to service as a territory,” she said.
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Lonely Planet Images | Getty
“If they were interested in tactically taking it over – it would just really be for show. Should Russia choose to take Trans-Dniester over, it would be quite intimidating for Ukraine,” she added.
Speaker of the high council, Mikheil Burla sent a written address to a speaker in Russia’s Duma, the lower house, asking him to consider legislation that would allow the non-recognized republic to become part of Russia, according to media reports.
The President of Moldova Nicolae Timofti has warned that any move to enable the mainly Russian speaking region to join Russia would be a “mistake”.
“This is an illegal body which has taken no decision on inclusion into Russia,” Reuters cited Timofti as saying at a news conference.
“If Russia makes a move to satisfy such proposals, it will be making a mistake,” he said.
Russia’s decision to sign a treaty to annex the Black Sea peninsula of Crimea, after a referendum held under Russian military occupation showed overwhelming support for the move, has further damaged relations with the West.
The United States and the EU imposed travel bans and asset freezes against a number of officals from Russia and Ukraine following Sunday’s referendum and U.S. Vice President Joe Biden called Moscow’s action a “land grab”.
Russian Foreign Minister Sergei Lavrov told U.S. Secretary of State John Kerry in a telephone call that such sanctions were unacceptable and threatened “consequences”, without going into detail.
Trans-Dniestrian citizens: A ‘mixed picture’
Trans-Dniester is recognized as part of Moldova by the U.N. rather than as an independent state, but the region is self-governed and runs its own institutions.
Moldova has a population of approximately 3.56 million. Crimea has 2.3 million people compared to Trans-Dniester, the thin strip of land between the Dniester river and the Ukraine border, which is populated by approximately 550,000 people and has its own currency, the Trans-Dniester rouble.
At the time of the collapse of the USSR, Moldova as a constitutive republic of the USSR wanted independence but Trans-Dniester wanted to stay with Russia. There was a short, but bloody war in 1992, but the issue has never been fully resolved.
Teneo’s Dhand said many citizens living in the region have as many as three passports: a Trans-Dniesterian one which is not recognized, a Russian one and potentially one other from “whichever other country allows them to have one. So it is complicated to define each and every person, where they belong,”she said.
The referendum held in Trans-Dniester in 2006 resulted in about 97 percent of the population voting for independence and to join Russia.
