Russian President Vladimir Putin has warned Europe about the potential for direct conflict with Russia if troops are deployed to Ukraine. Despite the warning, Putin stated that Moscow does not pose a threat to the European continent. Hostilities between Russia and Ukraine continue, with Russia maintaining its military operations in Ukrainian territory that it partially occupies. This warning raises the possibility of escalating the conflict from a bilateral war to a confrontation involving NATO. Markets appear to be pricing in a significant impact on scenarios involving Russian military activity in Ukrainian cities such as Sloviansk and Kramatorsk.
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