Russian President Vladimir Putin yesterday signed a treaty making Crimea part of Russia, igniting cheers and dancing in the streets of its Black Sea port city of Sevastopol but protests in Ukraine and warnings from the West.
In a speech to the Russian Parliament yesterday interrupted by tears and cheers, he said: "In the hearts and minds of people, Crimea has always been and remains an inseparable part of Russia."
But he also said the Kremlin had no plans to seize any other parts of Ukraine. "Don't believe those who say Russia will take other regions after Crimea," he said. "We don't need that."
Those words helped reassure global investors, if not the world's politicians. Russian stocks rose 2 per cent, its rouble currency firmed and European equities and the US stock market saw gains.
The treaty signed by Mr Putin and Crimean leaders - as the Russian national anthem played - makes the southern peninsula another corner of Russia.
The move came just two days after a referendum on the issue was held in Crimea, where most of the two million residents are ethnic Russians. The head of the referendum election commission said on Monday that final results showed nearly 97per cent of voters favoured a split from Ukraine.
Mr Putin said the referendum revealed the wishes of the people to be reunited with Russia after 60 years as part of the Ukrainian republic. But Ukraine's new government in Kiev called the vote a "circus" that Moscow had directed at gunpoint.
The treaty to ratify the annexation of Crimea must still be approved by the Russian Parliament, but that is expected to happen within days.