Russia’s economy is facing the worst crisis since the collapse of the Soviet Union in 1991, after the United States and its allies imposed deadly sanctions over Putin’s invasion of Ukraine on February 24. Russia on Sunday denied that its forces were responsible for the deaths of civilians in the city of Bukha, and said that Ukraine had made a statement to the Western media. Sign up now for FREE unlimited access to Reuters.com Register Reuters saw corpses scattered in the city. One appeared to have his hands tied by the white cloth and shot in the mouth. Ukrainian President Volodymyr Zelenskiy has accused Russia of “genocide.” read more The West has warned of more sanctions. “Putin and his supporters will feel the consequences” of their actions, German Chancellor Olaf Soltz told reporters at the chancellery. German Defense Minister Christine Lambrecht has said that the European Union should talk about ending Russian gas imports. read more Germany, Europe’s largest economy, has so far resisted calls for an embargo on energy imports from Russia, saying its economies and those of other European countries are heavily dependent on them. Russia supplies 40% of Europe’s gas needs. The United States has said those responsible for any war crimes should be held accountable, Britain has said it is stepping up sanctions and France has condemned “massive abuses” by Russian forces in Ukraine. Crashed civilian cars are seen on a street as Russia’s attack on Ukraine continues, in the city of Bucha, in the Kiev region, Ukraine, April 1, 2022. REUTERS / Oleksandr Ratushniak read more PENALTIES The Kremlin says Western sanctions – the heaviest in modern history – amount to a declaration of economic warfare and that Moscow will now look east to partners such as China and India. Largely cut off from Western economies, Russia is facing its biggest economic contraction in decades as prices rise. Putin said the West did not understand anything about Russia if it believed that the Russians would succumb to sanctions. However, a shutdown of Russian gas – or more of Russia’s natural resources – would stifle growth in Europe’s largest economies, send energy prices to record highs and trigger a shockwave in the global economy. Russia, which has supplied gas to Europe since the 1970s, would be deprived of hundreds of billions of dollars in foreign currency. He is likely to toughen his response to the West’s “economic war.” “The world is much bigger than Europe – and in fact Russia is much bigger than Europe – so sooner or later we will have a dialogue regardless of what people want across the ocean,” said Kremlin spokesman Dmitry. Peshkov on Channel One state television. Ukraine has demanded a full embargo on oil, gas and coal, a ban on Russian ships and cargo, and the disconnection of all Russian banks from SWIFT. Russia’s invasion of Ukraine on February 24 killed thousands and displaced millions. Putin says the “special military operation” in Ukraine is necessary because the United States was using Ukraine to threaten Russia and Moscow had to defend itself against the persecution of Russian-speakers by Ukraine. Ukraine says Moscow has launched an aggressive war and that Putin’s allegations of persecution are nonsense. Sign up now for FREE unlimited access to Reuters.com Register Written by Guy Faulconbridge Editing by Alexandra Hudson Our role models: The Thomson Reuters Trust Principles.
