Minister: New Western Sanctions Could Hurt Russian Growth

Russian Minister for Economic Development Aleksei Ulyukayev says Moscow has prepared for three possible scenarios in the event of tougher economic sanctions.

The Russian economy minister says a new round of Western sanctions on Russia over the crisis in Ukraine could seriously impact growth, but that it would not be a "dramatic" situation.

Aleksei Ulyukayev told Russian TV on June 28 that Moscow had prepared for three possible scenarios in the event of tougher economic sanctions.

The less severe option presumes sanctions on luxury goods such as furs and caviar, the worst would include metals, fertilizers, oil, and gas.

Ulyukayev said that in this case, "economic growth rates go seriously into the negative" but that the economy can still withstand such a scenario.

To date, sanctions imposed by the European Union and the United States have targeted specific individuals and entities but not entire sectors of the Russian economy.

Based on reporting by AFP and ITAR-TASS