Russia reacts to EU sanctions with further western trade embargos

http://www.theguardian.com/world/2014/sep/11/russia-eu-sanctions-west-trade-embargos-cars-ukraine

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Russia is preparing to hit back at fresh EU sanctions with a new list placing embargos on imports of consumer goods and secondhand cars from western countries, deepening a tit-for-tat trade war sparked by the crisis in Ukraine.

Andrei Belousov, an aide to Russia's president, Vladimir Putin, said the measures would be directed at a number of products where Europeans "depend on Russia more than Russia does on them".

Belousov was quoted, by the state-run RIA news agency, as saying: "This concerns the import of cars, first and foremost secondhand ones, this concerns several types of consumer goods which we can already produce ourselves. Not all, but some types of clothing. But I hope common sense will prevail and we will not have to introduce those measures."

Russia has already imposed an embargo on imports of a broad range of European farm produce. It has also suggested it could ban western airlines from using Russian airspace if it were affected by further sanctions, a move that could close an important overland flight route to Asia for European airlines, leading to higher fuel costs and delays.

The Russian measures come as a new round of EU sanctions against Moscow were poised to come into force on Friday. The sanctions are likely to further restrict access to European capital markets for Russian banks and energy companies.

But the European council president, Herman van Rompuy, said the measures could be reversed if a fragile peace plan agreed a week ago for Ukraine were properly implemented.

He said: "If the situation on the ground so warrants, the commission and the EEAS [EU diplomatic service] are invited to put forward proposals to amend, suspend or repeal, the set of sanctions in force, in all or in part."

Western powers were also watching closely to see if Moscow was prepared to use its gas exports to Europe as a weapon in the trade war this winter. Poland complained that Russia's state-owned Gazprom energy company cut deliveries by about half this week.