The Ukrainian situation appears to be deteriorating rapidly hour by hour. But the prospect of peace is nowhere to be seen. What can the US and the European Union do in this debacle?

At every turn Vladimir Putin, the Russian president, and Sergei Lavrov, his foreign minister, are playing for time while making fools of the US and the EU.

Putin and Lavrov are playing down the threat of sanctions which so far have proved to be non-effective.

And even if these sanctions have prevented oligarchs’ mistresses from shopping in London or Paris, they are unlikely to cripple Russia’s economy.

Russia is strong and self-confident, and its government strives like any other to promote economic growth and higher living standards. Russia’s immense natural resources generate a lot of wealth which can be used to develop a modern and diversified economy.

Russia has nothing to fear from the US or the EU. On the contrary, in a world of falling energy prices, it is the EU that has to focus, instead, on finding and ensuring alternative solutions to prevent serious consequences. Russian energy has other ways and means to find other markets around the globe.

So what proper response is the US and the West going to take to secure peace with Russia and stabilise Ukrainian conflicts once and for all?

Early next month Mr Putin is due to travel to Beijing to sign a big deal for Russia to supply gas to China, which wants to diversify its energy mix away from coal and cut air pollution.

If the US and the EU tighten their grip through more sanctions on Russia, Putin might look to China as an economic partner! And if that would be the case, then Mr Xi could push for a lower gas price and enlarge investment opportunities across the Siberian border.

And what if there is a bigger Chinese role in Russia’s oil and gas sector? What if the Sino-Russian relationship becomes too close?

This would surely raise eyebrows both at the EU and in Washington.