Kremlin: Russia is still open to diplomacy and has an interest in that

A Kremlin spokesperson said on Tuesday that Russia recognizes the breakaway east Ukraine regions with the borders that they have claimed, as reported by Reuters.

Additional takeaways

"We have no information whether Russian forces have already entered Donbass."

"We hope decisions on recognising Donbass will help restore calm."

"Decision on sending forces into Donbass will depend on how the situation develops."

"Main thing is to save lives and ensure the safety of population under constant provocation from Ukraine armed forces."

"Eussia is still open to diplomacy and has an interest in that."

Market reaction

These comments don't seem to be having a noticeable impact on risk perception. The US Dollar Index was last seen posting small daily losses at 95.98.