Russia says EU sanctions will have ‘boomerang’ effect

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Russia says EU sanctions will have boomerang effect

There are two new developments involving Russia and the Ukraine crisis. The U.S. accused Russia of firing artillery from its territory into Ukraine to hit military sites. It also asserted that Moscow is boosting its supply of weapons to pro-Russian separatists.

Meanwhile, Russia brushed off the impact of new economic sanctions imposed by the European Union. CCTV-America’s Tom Barton reports from Moscow.

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Russia says EU sanctions will have boomerang effect

Two new developments involving Russia and the Ukraine crisis.The U.S. is accusing Russia of firing artillery from its territory into Ukraine to hit military sites. It also asserts that Moscow is boosting its supply of weapons to pro-Russian separatists. Meanwhile, Russia is brushing off the impact of new economic sanctions imposed by the European Union. CCTV's Tom Barton reports from Moscow.

Russian officials say the sanctions are “peanuts” compared to what the Soviet Union faced. Top Kremlin economic adviser Andrei Belousov said Russia’s economy would keep a growth rate of one percent. Any sanctions will have a “boomerang effect”‘ said President Putin, with officials and analysts repeating his claim.

However, former finance Minister Alexei Kudrin has publicly warned that the Russian government’s anti-western rhetoric could derail the economy, predicting deterioration in GDP growth by a few points for a few years, a decline in real income and lower wages as a result. Despite the warnings, the Russian government’s official message is one of defiance.

For more on the impact of a possible escalation of EU sanctions, we spoke to Kent Moors, the Executive Chair of the Global Energy Symposium.

Kent Moors on possible EU sanctions on Russia

For more on the impact of a possible escalation of EU sanctions, we spoke to Kent Moors, the Executive Chair of the Global Energy Symposium.