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Significance

Putin's initial decision last week to simplify citizenship procedures for residents of rebel-controlled eastern Ukraine is a challenge to that country's new president. It implies that annexation of these areas is possible, if not the primary option. Coupled with Putin's subsequent suggestion that Russian passports might eventually become available to all Ukrainians, it also reflects a view that Ukrainian state sovereignty is of little account.

Impacts

Kiev is pushing for a new wave of Western sanctions against Russia in retaliation for the passport move.

Ukrainian passport-holders retain the great advantage of visa-free travel to the EU for short visits.

Russian passports will be a morale-booster for rebel forces struggling to hold the line against the Ukraine army's 'creeping advances'.

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