West-Russia row rearing head at G20

Friction between Russia and the West over the crisis in Ukraine is becoming more salient as the world’s strongest economies gather in Australia to talk international economic development.

German Chancellor Angela Merkel has told reporters in Brisbane, where the G20 summit is underway, that the tensions over Ukraine were hindering efforts to boost economic growth.

“It’s clear that these geopolitical tensions, including relations with Russia, are not really conducive to promoting growth,” she said. “We are all striving to do everything diplomatically possible to see improvements.”

US President Barack Obama has said “Russian aggression” in Ukraine is a “threat to the world.”

“Russian action in Ukraine is unacceptable,” UK Prime Minister David Cameron told reporters in Canberra before heading to Brisbane.

Washington and the European Union slapped several rounds of economic sanctions on Russia after accusing Moscow of being involved in the conflict that broke out in Ukraine earlier this year. Russia has repeatedly denied the accusation.

Ukraine and its Western allies have accused Moscow of sending troops into eastern Ukraine in support of the pro-Russia forces.

In response to the sanctions, Moscow has banned most food imports from the United States and the EU. Moscow is also reportedly considering a ban on car imports and clothes from Western countries.

“If Russia takes a positive approach towards Ukraine’s freedom and responsibility, we could see those sanctions removed. If Russia continues to make matters worse, we could see those sanctions increase. It’s as simple as that,” Cameron said.

Russian President Vladimir Putin has warned that the Western sanctions imposed on his country over the crisis in Ukraine could backfire.

Speaking in Brisbane on Saturday, the Russian president added that curbing Russian access to capital markets would damage Western exports.

“If the resources of our financial institutions are cut off, they can extend fewer loans to the Russian companies that work with German partners,” said Putin, adding, “Sooner or later, it will begin to affect you as much as us.”

In addition, Putin said, the sanctions could force some Russian banks to demand the repayment of the loans they have granted to Ukraine, damaging its economy.

HN/NN/AS

 

Source Article from http://www.presstv.ir/detail/2014/11/15/386187/westrussia-row-rearing-head-at-g20/

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