Global stock markets have taken a dive and oil process have soared to levels not seen in eight years after Russian troops moved into Ukraine overnight.
Explosions were reported in different parts of the country with Russia’s military saying it had targeted Ukrainian air bases and other military assets and not targeted populated areas.
Accusing the West of ignoring Russian demands to prevent Ukraine from joining Nato, Vladimir Putin issued a warning to other countries that any attempt to interfere with his actions would lead to “consequences they have never seen”.
Prime Minister Boris Johnson said: “President Putin has chosen a path of bloodshed and destruction by launching this unprovoked attack on Ukraine. The UK and our allies will respond decisively."
TV images from Kyiv this morning showed long tailbacks as people fled the city and there were reports of queues at cashpoints and petrol stations.
TV reports said a number of people had died in the attacks.
Aircraft flying to or from UK airports are being ordered to avoid Ukraine airspace and Wizz Air has cancelled its flights between Luton Airport and the Ukrainian cities of Kyiv and Lviv.
The PA News agency reported that trading was suspended on the Moscow Stock Exchange this morning before reopening down nearly 30 per cent – and the rouble plummeted to a record low against the dollar.
In London, the FTSE 100 leading index of shares lost more than 200 points when opening at 8am. By 9.16am it was down 176 points, or 2.35 per cent. The FTSE 250 was down 2 per cent.
France and Germany saw even heavier falls, with the country’s leading stock markets dropping 3.7 per cent and 3.9 per cent respectively in early trading.
Russian-facing companies on the FTSE 100 took the brunt of the hits, with further sanctions looming.
Shares in mining firms Evraz and Polymetal International both fell by nearly 30 per cent. Only three of the 100 companies saw shares in positive territory during early trading.
Starting from around 3am UK time, attacks were reported across Ukraine, including in several western cities, close to the border with Poland.
That triggered the price of Brent crude oil to jump by 6.3 per cent by a little after 8am UK time to 102.90 dollars per barrel, hitting its highest point since 2014.
Around the same time the rouble tanked. The US dollar gained more than 10 per cent against the Russian currency at one point.
European currencies also fell against the dollar, with the euro down 0.6 per cent against the dollar and the pound down 0.6 per cent against the dollar.
Early in the morning the Moscow Stock Exchange said it had “suspended trading on all of its markets until further notice”.
But it later restarted at 10am local time, 7am in the UK, at which point it dropped 30 per cent.
Ukraine President Volodymyr Zelensky said on Thursday morning that he had spoken to the leaders of the US, Germany, the EU, Poland and the UK.
He said he had “urged to stop Putin, war against (Ukraine) and the world immediately. Building an anti-Putin coalition. Immediate sanctions, defence and financial support to (Ukraine). Close the airspace. The world must force (Russia) into peace”.
