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President Vladimir Putin

BRUSSELS. — The European Parliament yesterday backed tough new sanctions against Russia, including an arms embargo and asset freezes, unless Moscow reverses its military intervention Crimea.Lawmakers passed a non-binding resolution calling for the European Union to consider “appropriate measures,” such as an embargo on arms and technologies that could be used for military operations.

The resolution was adopted by a large majority of MEPs as EU foreign ministers prepare to meet in Brussels on Monday to discuss their next steps over Russia’s intervention in the Crimean peninsula.

The resolution called for the bloc to freeze the assets of Russians who are “implicated in the decision-making process linked to the invasion of Ukraine,” along with Russian companies with links to the energy sector.

German Chancellor Angela Merkel warned Russia yesterday of “massive” long-term damage to its economic and political interests if it continued to violate international law with its seizure of Ukraine’s Crimean peninsula.

In a speech to parliament, Merkel said Russia was using the “failed” expansionist tactics of the 19th and 20th centuries.

“If Russia continues its course of the last weeks, it would not only be a catastrophe for Ukraine,” she told the chamber, where the Ukrainian ambassador to Germany was also a guest.

“It would not only change the relationship of the European Union as a whole to Russia. No, it would also, and I am firmly convinced of this, massively damage Russia both economically and politically.”

Merkel said that in a year in which Europe is marking both the 100th anniversary of the start of World War I and 25 years since the fall of the Berlin Wall, Russia must learn from the mistakes of the past.

Meanwhile, Russia has said it is ready to retaliate with counter sanctions against the EU and US if they go ahead with economic measures against Russia over tension in Crimea, the Russian Economic Ministry has said.

“We hope that there will only be targeted political sanctions, and not a broad package affecting economic trade,” Deputy Economic Development Minister Aleksey Likhachev said.

“Our sanctions will be, of course, similar,” he added.

One way Russia plans on shielding itself from pending sanctions is by boosting trade in other currencies, not the US dollar.

“We need to increase trade volume conducted in national currencies. Why, in relation to China, India, Turkey and other countries, should we be negotiating in dollars? Why should we do that? We should sign deals in national currencies — this applies to energy, oil, gas, and everything else,” Aleksey Ulyukaev, the Minister of Economic Development said in an interview with the Vesti 24 TV channel.

Russia’s parliament, is drafting legislation to allow Moscow to freeze assets of Western companies and individuals in the event sanctions are imposed following the Crimea referendum vote on March 16.

The bill would give “the president and government opportunities to defend our sovereignty from threats,” according to its author, Andrey Klishas, as quoted by RIA Novosti on March 5.

The US Congress has already denounced Russia’s actions in Ukraine. On Tuesday, lawmakers passed a resolution that urges the US “to work with our European allies and other countries to impose visa, financial, trade and other sanctions on senior Russian Federation officials, majority state-owned banks and commercial organizations, and other state agencies, as appropriate.”

However, China’s ambassador to Germany Shi Mingde, warns of the global economic effect sanctions against Russia could hold. Mingde said the geo-political tiff between Russia and the West could “spiral” into chaos.

President Putin and the foreign ministry have both said sanctions against Russia could backfire, and spill over into the global economy.
Foreign Minister Sergey Lavrov denounced any Western-led sanctions as “hasty and ill-considered”, and President Putin said squeezing economically would cause “mutual damage”.

While the US and Russia trade very little, Russia is Europe’s biggest customer, and the US$13 trillion economy would suffer if trade with Russia was halted overnight. — AFP/RT.