In a televised address in front of both houses of parliament and Crimea's new leaders Russian President Vladimir Putinmade history by signing a bill to absorb the peninsula into Russia.
Formally part of Ukraine Crimea has now formally applied to join Russian. Russia has alway claimed Crimea as being part of them although this is strongly opposed by Ukraine.
From The BBC
Mr Putin told parliament Crimea had "always been part of Russia" and he had corrected a "historical injustice".
Crimea was taken over by pro-Russian forces in late February after Ukraine's president was ousted, and declared independence from Ukraine on Monday.
Kiev said it would never accept the treaty and the US has called a G7-EU crisis meeting next week in The Hague.
US Vice-President Joe Biden, speaking in Poland, said Russia's involvement in Crimea was "a brazen military incursion" and its annexation of the territory was "nothing more than a land grab" by Moscow.
The Ukrainian foreign ministry said: "We do not recognise and never will recognise the so-called independence or the so-called agreement on Crimea joining the Russian Federation."
Ukraine's interim PM Arseniy Yatsenyuk said the Crimea crisis had moved from the political to the military stage.
UK Prime Minister David Cameron said: "It is completely unacceptable for Russia to use force to change borders on the basis of a sham referendum held at the barrel of a Russian gun."
Mr Putin later appeared before crowds in Moscow's Red Square, telling them: "Crimea and Sevastopol are returning to... their home shores, to their home port, to Russia!"
He shouted "Glory to Russia" as the crowds chanted "Putin!"
The Ukrainian navy has also reported that a Ukrainian officer was wounded in the storming of a military base in Crimea's main city, Simferopol, on Tuesday.
Crimean officials say that, in a referendum held in the predominantly ethnic-Russian region on Sunday, 97% of voters backed splitting from Ukraine.
The EU and US have declared the vote illegal. Travel bans and asset freezes have been imposed on government officials and other figures in Russia, Crimea and Ukraine, but these have been largely dismissed as ineffectual in Russia.
In a televised address in front of both houses of parliament and Crimea's new leaders, Mr Putin said: "In the hearts and minds of people, Crimea has always been and remains an inseparable part of Russia."
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