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West's sanctions battle against Russia escalates

FXStreet (Łódź) - Russia and the West continue sanction-swapping today with Moscow announcing a food import ban in response to EU's measures against Russian airlines and the European Commission suggesting further action.

Russian PM Dmitry Medvedev said on Thursday that Russia would halt the import of food and agricultural products from the US, EU, Australia, Canada and Norway and would consider blocking flights from Europe to Asia over its territory.

The European Commission swiftly replied by signaling that it could broaden sanctions against Russia further.

According to Bloomberg Laura Lucas Magnuson, a White House spokeswoman stressed today that “retaliating against Western companies or countries will deepen Russia’s international isolation, causing further damage to its own economy.”

European stocks were little changed on Thursday amid the growing Russian tensions and ahead of the ECB monetary policy announcement. Russia’s Micex Index fell for the third consecutive day, while the RUB weakened 0.2% to 36.2262 against the greenback.

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