Russia slams EU and Ukraine over sanctions and trade pact

Russia has lambasted the European Union for extending economic sanctions against it for another six months, and will ban food imports from neighbouring Ukraine when Ukraine launches a historic free trade pact with the EU on January 1st.

Moscow’s dispute with Ukraine and its allies continues to poison economic and financial relations. Russia is set to sue Kiev over its refusal to repay $3 billion (€2.7 billion) loaned to Ukraine’s pro-Kremlin regime before it was ousted in February 2014.

Ukraine’s pro-western government now relies on western financing to keep the country afloat, while US and EU sanctions compound the problems that Russia faces due to plunging oil prices and a drop in the value of the rouble.

“Instead of arranging constructive co-operation against key challenges of the current time, such as international terrorism, the EU in Brussels prefers to continue shortsighted sanctions games,” Russia’s foreign ministry said on Monday.

Minsk deal

Moscow claimed the push for closer ties between the EU and Ukraine was the root of the country’s conflict. It urged Brussels to press Kiev to fulfil the so-called Minsk deal to end fighting in the country’s east, which has killed more than 9,000 people.

The EU and US imposed sanctions on Russia for its role in fomenting and perpetuating the conflict, and for annexing Crimea from Ukraine in March 2014. The sanctions were extended them due to Russia’s failure to meet the conditions of the Minsk pact.

“The continuation of anti-Russian sanctions in this context is totally hypocritical,“ Moscow’s foreign ministry said in its statement.

“And to think that sanctions could force Russia to change its principled positions was mistaken and shortsighted from the very start. Their continuation shows that the European Union remains a prisoner of its own mistakes.”

Russian prime minister Dmitry Medvedev has signed a decree to ban food imports from Ukraine from January 1st, due to a dispute over the landmark free trade deal due to come into force between Ukraine and the EU on that day.

“We were quite close to finding some solutions, but today there was not enough flexibility from the Russian side,” EU trade commissioner Cecilia Malmstroem said after talks with senior Russian and Ukrainian officials.

“This exercise is now over,” Ms Malmstroem added.

Mr Medvedev also confirmed that Moscow will take legal action over Kiev’s failure to repay the $3 billion bond.