19 03 2014

Defiant Russia shrugs off sanctions

Russia has annexed the Ukrainian region of Crimea in defiance of symbolic Western sanctions, raising the prospect of more punishing measures to come. President Vladimir Putin signed laws Tuesday paving the way for Crimea to join Russia, just a day after the United States and European Union slapped travel bans and asset freezes on 28 officials accused of violating Ukraine's sovereignty.

The sanctions may inconvenience some senior Russian politicians, but as they stand won't hurt the country's powerful oligarchs, big companies or exports.

U.S. officials said they were ready to ramp up the pressure in response to Putin's moves to incorporate the Black Sea peninsula and its two million people.
President Obama has invited other leaders of the G7 -- from Canada, France, Germany, Italy, Japan and the U.K. -- to discuss the crisis next week while he is in Europe.
And EU leaders will have a chance to consider tougher sanctions when they meet on Thursday.
Related: Russians spend billions on Europe deals
But investors were unruffled by the escalating war of words, perhaps reckoning that 28 EU states will struggle to agree on how to increase the punishment given the pain some would take in return.