Russian Parliament Speaker: U.S. Sanctions are 'Disconnected from Reality'

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Russia on Friday slammed the European Union for adopting new sanctions against Moscow during a week-old ceasefire agreed for conflict-riven eastern Ukraine.

"We believe that adopting such decisions at the very moment when the peace process in Ukraine is gaining strength -- we are hoping -- ... this means choosing a path towards undermining the peace process," Russian Foreign Minister Sergei Lavrov said in televised remarks on the sidelines of a security summit in the Tajik capital Dushanbe.

Earlier, Russia's parliamentary speaker denounced new U.S. sanctions against Moscow as "disconnected from reality", and charged the Ukraine crisis was an excuse for Washington to drum up tensions with its Cold War-era foe.

"The sanctions announced by President (Barack) Obama are already disconnected from reality," State Duma Sergei Naryshkin was quoted as saying by Russian news agencies.

Obama said the sanctions would hit the defense, finance and energy sectors in response to Russia's "illegal actions" in Ukraine.

Fresh EU sanctions against Moscow also took effect on Friday.

"For them, the most difficult internal Ukrainian conflict, crisis, confrontation is just a pretext -- this is obvious," Naryshkin said.

"If it did not happen they would find another (excuse). This is sad but true."

The parliamentary speaker also warned the sanctions could hamper a fragile week-long ceasefire between Ukraine and Kremlin-backed separatists. "What are they thinking?" he said, referring to U.S. officials.

Meanwhile, European Commission head Jose Manuel Barroso warned on Friday that the Ukrainian ceasefire was not enough to achieve long-term peace and chided Russia over its "unacceptable behavior" in its western neighbor.

Barroso said after talks in Kiev with President Petro Poroshenko that the week-old truce the government signed with rebel leaders and Russia in the Belarussian capital Minsk "is certainly a positive step which needs to be upheld and respected".

"However, it is still insufficient to guarantee sustainable peace," he told reporters.

Barroso spoke shortly after the European Union applied its toughest sanctions to date against Russia over its alleged involvement in the pro-Kremlin uprising that has been convulsing Ukraine's industrial east for the past five months.

"While we are committed to reaching out and seeking a negotiated solution, we also do not hesitate in responding decisively to Russia's unacceptable behavior," he said.

He said the sanctions against huge state-run banks, oil companies and weapons manufacturers were aimed at "bringing Russia to the conclusion that it is better to have positive, constructive relations with both Ukraine and the European Union.

"They also mean that the European Union and its member states stand by Ukraine."

Barroso said the 28-nation bloc was willing to help the warring sides achieve a negotiated political solution that preserved Ukraine's territorial integrity and ensured "the withdrawal of any foreign troops".

Poroshenko earlier Friday announced that the European and Ukrainian parliaments on September 16 would both ratify an historic trade and political association agreement that Russia has long opposed.

He said after his talks with Barroso that the pact would enter into force on November 1, the same day that Moscow warned it may impose trade restrictions against Ukraine.

The United States hit Russia's top bank and leading energy and technology companies with sanctions Friday, to punish Moscow for supporting separatist rebels in Ukraine.

In the latest sanctions, Washington slapped tight controls on financing for Sberbank, pipeline giant Transneft, energy firms Lukoil, Gazprom, Gazpromneft and Surgutneftgas and state technology group Rostec.

The White House actions followed similar sanctions imposed by Europe aimed at placing pressure on the Russian economy over the country's interference in neighboring Ukraine.

"Given Russia’s direct military intervention and blatant efforts to destabilize Ukraine, we have deepened our sanctions against Russia today, in concert with our European allies," said U.S. Treasury Secretary Jacob Lew.

"These steps underscore the continued resolve of the international community against Russia’s aggression."

The U.S. sanctions ban American entities from offering anything but short-term financing to the Russian companies listed, a move that could restrict their business activities and long-term planning.

For example, and U.S. citizen or group is not allowed to lend money to Sberbank for more 30 days maturity of the debt.

A similar 30-day financing restriction was put in place for dealings with Rostec.

For Lukoil, Gazprom, and Surgutneftgas, U.S. entities are blocked from providing any support, materials or technology for any oil and gas exploration projects involving the Arctic region, offshore anywhere or shale-based resources.

The same restrictions were also applied to oil giant Rosneft, which was already listed under a previous round of sanctions.

“Russia's economic and diplomatic isolation will continue to grow as long as its actions do not live up to its words," said Lew.

"Russia’s economy is already paying a heavy price for its unlawful behavior. Growth has fallen to near zero, inflation is well above target, and Russian financial markets continue to deteriorate."

The Russian ruble hit a new low against the dollar on Friday, as the new EU sanctions on Moscow entered force.

The Moscow stock markets fell, with the ruble-denominated Micex down 0.10 percent and the dollar-denominated RTS down 0.51 percent.

A ceasefire signed last Friday between Kiev and separatist rebels in Ukraine's industrial heartland has so far held, despite accusations of violations on both sides.

The conflict has killed more than 2,700 people since April, forced at least half a million from their homes and sent tensions between Russia and the West soaring to post-Cold War highs.

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