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Sanctions, Russia deepens trade restrictions

Russia has extended ban on food imports, this time with Romania, escalating its response to sanctions "chilling" of the West, because of Moscow's support of pro-Russian separatists in Ukraine.

President Putin has signed a decree prohibiting or restricting imports of agricultural products from countries that have sanctioned Russia, a decree having force 1-year, which also affects imports into Russia of pharmaceutical products, raw materials and foodstuffs, the countries that joined the Western sanctions, reports news agency Interfax.

The move comes despite Moscow's measures may also affect its own economy.

Russian veterinary watchdog "Rosselkhoznadzor" announced during Wednesday it has suspended imports of beef and small livestock from Romania, citing an outbreak of mad cow disease.

Moscow has decided to ban the import and fluid milk products from Ukraine, Poland vegetables and beef from Australia, and has announced that it can to target the Greek fruits and poultry from the USA.

However, Russia's Central Bank warned on Tuesday that the ban on imports of these products so inexpensive situation may deteriorate to control inflation.

"We are particularly concerned that the slowdown in inflation was lower than expected during July," the Central Bank was quoted by Interfax news agency. Inflationary pressures usually fall during the summer, thanks to the arrival of cheap fruit and vegetables.

The annual inflation rate dropped to 7.5 in July, but still remains above the 2013 rate of 6.5.

Moscow trading prohibitions come after new sanctions against banking and energy sectors to Russia from the West, while the latter accuse the Kremlin that is funding and supplying weapons to rebels in east Ukraine, who are fighting for independence from the government of Kiev.

Moscow, never previously had prohibitions related to trade sanctions of the West, but there is little doubt now that these measures are retaliation because of greater crisis in relations between the West and Russia since the Soviet period.

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