EU imposes punishing sanctions on Russia

The EU opened a new front — the toughest since the end of the cold war — against Russia with restrictions aimed at hurting its banks, oil industry, defence and a range of industries that depend on parts from the west.

The US is expected to follow through with similar sanctions, although they will not affect Moscow as much as trade is a fraction of what it is with EU countries.

However, while the latest round of punishing cuts are being hailed as the first round of “phase three” sanctions, they are also expected to adversely affect EU countries and companies also.