Russia hits back over EU sanctions

MOSCOW: Russia fought back yesterday over new US and EU sanctions imposed over Ukraine, even as G7 leaders warned of further steps, while Ukraine’s government accused pro-Russian rebels of placing landmines near the site of a crashed Malaysian airliner to prevent a proper investigation.

Russia announced a ban on fruit and vegetable imports from Poland and said it could extend it to the entire EU, a move Warsaw called Kremlin retaliation for new Western sanctions over Ukraine imposed on Russia on Tuesday.

Moscow called the new EU and US sanctions “destructive and short-sighted” and said they would lead to higher energy prices in Europe and damage co-operation with the US on international affairs.

The confrontation between Russia and the West entered a new phase this week, with the US and EU taking by far the strongest international steps yet against Moscow over its support for Ukraine’s rebels.

The new EU and US sanctions restrict sales of arms and equipment for the oil industry, while Russian state banks are barred from raising money in Western capital markets.

G7 leaders issued a joint statement yesterday warning Russia it would face added economic sanctions if Moscow does not change on Ukraine.

The statement from the leaders of the G7 countries – the US, Canada, France, Germany, Italy, Japan and Britain – was a show of solidarity among allies. They expressed grave concern about Russian actions that have “undermined Ukraine’s sovereignty, territorial integrity and independence”.

“Russia still has the opportunity to choose the path of deescalation,” the statement said.

“If it does not, we remain ready to further intensify the costs of its adverse actions.”

The European Commission also published the names of eight Russians, including some of President Vladimir Putin’s associates, and three companies that will have their assets frozen. The people on the list include Arkady Rotenberg, Putin’s long-time judo partner, who has been on a US sanctions list since March.

Yury Kovalchuk and Nikolai Shamalov – the two largest shareholders in Bank Rossiya, a St Petersburg company that expanded rapidly after Putin moved to Moscow and became president in 2000 – were also blacklisted.

The companies named include Russian National Commercial Bank, which was the first Russian bank to go into Crimea after the region’s annexation by Russia. The other two firms are anti-aircraft weapons maker Almaz-Antey and airline Dobrolyot.

On the ground in Ukraine, heavy fighting between government forces and separatists has been taking place near the site where Malaysian flight MH17 crashed on July 17, shot down by what Washington and Brussels say was a missile supplied by Russia. – Reuters