US President Biden: Russian attack on Ukraine still very much a possibility

US President Joe Biden said on Tuesday in an address to the nation that a Russian attack on Ukraine still very much remained a possibility, cautioning that the US hasn't yet verified Russian units returning home and an invasion remains possible. However, Biden continued, diplomacy should have every chance to succeed and there are real ways to address Russian security concerns.

The US is proposing new arms control and other measures to Russia, Biden said, adding that the US and NATO do not have plans to put missiles in Ukraine. The US and NATO are not a threat to Russia, Biden emphasised, saying directly to Russian citizens that "we are not your enemy". The US is not targeting Russian people or stability, Biden added. 

If Russia attacks Ukraine, it would be without cause or reason and the human cost would be immense, Biden said. The US and its allies are ready to impose powerful sanctions and export controls on Russia if it invades, he continued, saying that the Nord Stream 2 pipeline would not go ahead. Biden reiterated that the US will defend every inch of NATO territory with the full force of American power, and the US will soon conduct military exercises with allies and partners. 

A Russian invasion would have consequences for US citizens at home, Biden warned, saying there could be an impact on energy prices. If Russia attacks through cyber or other asymmetrical means, the US and its allies will respond, he noted. Biden closed his remarks by saying that if the US does not stand for freedom where it is at risk, we will pay the price tomorrow.  

Market Reaction

FX markets did not react to Biden's latest comments, which served more as a reiteration of what US and NATO officials have been repeatedly saying in recent days.