(Transcript from SBS World News Radio)
The European Union is implementing new economic sanctions on Russia for its alleged involvement in eastern Ukraine.
The sanctions were agreed upon in principle last week, despite a fragile ceasefire that came into effect in Ukraine on the same day.
But, now, they have come into effect, and Russia is threatening to adopt counter measures that will equally damage the EU economy.
Marina Freri reports.
(Click on the audio tab above to hear the full report)
The European Union's new sanctions on Russia have come into effect with their publishing in the official EU journal.
The measures involve curbing Russian companies' access to European capital markets and limiting exports of high technology goods.
They also target more officials than previously with travel bans and asset freezes.
EU foreign policy chief Catherine Ashton's spokeswoman, Maja Kocijancic, says the sanctions are in response to what the EU believes is Russia's military involvement in Ukraine.
Russia has firmly rejected the allegation, but the EU is not yielding.
"We are talking about access to capital markets, defence, sensitive technologies and dual use goods. The leaders have also asked us to compile a list of individuals who are related to the work of separatist groups in eastern Ukraine, particularly in Donbass, and this has also been done."
European Council president Herman Van Rompuy says some or all sanctions could be lifted if Russia works to ease tensions in Ukraine.
But Russia has warned it will respond, as it puts it, "adequately".
Russian foreign ministry spokesman Alexander Lukashevich has sharply criticised the measures as an unfriendly act.
(Translated)"This is an absolutely unfriendly policy which, among others, contradicts the European Union's interests as well. The Russian political leadership has already made it clear to the politicians of various levels that we will take adequate measures and our response will be proportional to the damage which these sanctions cause to the economies of our state."
Mr Lukashevich maintains no Russian troops are fighting in south-eastern Ukraine.
But he concedes some volunteers cannot stay away from the events unfolding in the Donetsk and Luhansk regions.
He says he believes the EU sanctions are against the bloc's own interest.
However, the European Union is showing both a cautious and a firm approach with Russia.
Some of the new sanctions have targeted Russian oil-producing firms but have avoided hitting the gas-producing parts of companies.
Russia is an important gas supplier for many EU nations.
Speaking on behalf of the EU foreign policy chief, Ms Kocijancic has held out the prospect of cancelling some or all of the sanctions soon if a peace plan in Ukraine works.
"Member states will, in light of the developments on the ground, by the end of the month do a comprehensive overview of the implementation of the ceasefire agreement in Ukraine and the peace plan."
Share
