According to President Obama, Russia's actions are a clear violation of Ukraine's sovereignty as many would agree. The President has attempted diplomatic solutions with Mr. Putin, however he only responded saying that he doesn't believe the actions he is taking should hurt the US and the Russian Federation's relationship. So essentially Mr. Putin honestly doesn't care what Obama or the rest of the international community thinks, he is only worried about the power and wellbeing of his own nation and he is willing to do whatever it takes to ensure his country comes out on top.
This is indeed a crisis, and could potentially reach disaster levels at quite literally the press of a button. If one looks closely at the techniques of Putin in obtaining territory as well as his diplomatic strategies, it closely resembles that of Adolf Hitler before the second world war and his rise to power. It is a bit extreme currently to consider the possibility of another world war over this crisis, although if the infringement of sovereignty continues it may warrant international military intervention based on treaties created in the 1980's between the US and Ukraine.
Vladimir Putin as well as the rest of Russia is well aware of these treaties and agreements, which is why they are currently treading very carefully and strategically in order to satisfy their interest without pushing the international community to direct involvement. The ball really is in Putin's court now though, and that was one of the main objective of the EU and US's sanctions. Putin can now either obey the demands, or deal with the sanctions and risk further involvement. This will cause a severe escalation in the loss of life and may even cause the use of nuclear weaponry which would then cause this contained crisis become a disaster on a global scale.
Ukrainian Military standing guard in front of Pro-Russian Protestors:
Before and after the current crisis in the Ukrainian capital of Kiev:
Obama (left) Putin (right):
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