Russia Fights Back after US, EU Sanctions

Russia announced a ban on most fruit and vegetable imports from Poland and said it could extend it to the entire European Union, 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 cooperation with the United States on international affairs, Reuters reported.

The confrontation between Russia and the West entered a new phase this week, with the United States and European Union 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 of equipment for the oil industry, while Russian state banks are barred from raising money in Western capital markets.

G7 leaders issued a joint statement on Wednesday warning Russia that it would face added economic sanctions if Moscow does not change course on its Ukraine policy.

The statement from the leaders of the G7 countries - the United States, 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 de-escalation," the statement said. "If it does not do so, however, we remain ready to further intensify the costs of its adverse actions."

In addition, the European Commission published the names of eight Russians, including some of President Vladimir Putin's associates, and three companies that will have their assets frozen as part of the sanctions.

he people on the list include Arkady Rotenberg, who is Putin's long-time judo partner and 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 this year. The other two firms are anti-aircraft weapons maker Almaz-Antey and airline Dobrolyot, which operates flights between Moscow and Simferopol in the Crimea.