More from Russia and the Ukraine

US Senate postpones vote on financial aid to Ukraine

The US Senate is postponing the vote on a bill aimed to provide financial aid to Ukraine and impose sanctions against Russia, until the end of March at the earliest.

The legislature, drafted and approved by the Foreign Relations Committee, failed to advance in the Senate on Thursday, after Republicans objected to the inclusion of the IMF measure.

The next time, US legislature can take up the vote is after Congress returns from a break on March 24.

Canada has promised to provide Ukraine with $220 million aid in an international effort to restore the economic situation in the country.

"Prime Minister Stephen Harper is announcing $220 million in additional measures to promote sustainable economic growth, democratic development, and good governance," Foreign Affairs Minister John Baird told a news conference in Ottawa.

Some $200 million are conditional on the creation of a wider financial aid package by the International Monetary Fund (IMF). The other $20 million will be transferred to pay for expert guidance under the IMF supervision.

Clashes in Donetsk

Clashes erupted in the eastern Ukrainian city of Donetsk after participants of a pro-Russian rally broke through a police cordon surrounding the rally of Ukraine’s integrity supporters. According to Interfax-Ukraine, law enforcers attempted to take those rallying for Ukrainian unity in police buses but some of the buses were blocked and had their windows broken. Fireworks and smoke grenades were also reportedly used in the clashes.

"One way Russia plans on shielding itself from pending sanctions is by boosting trade in other currencies, not the US dollar."

Moscow won't exclude sanctions to counter US and EU – Ministry

Russia is ready to retaliate with counter sanctions against the EU and US if they go ahead with economic measures against Russia over tension in Crimea, the Russian Economic Ministry has said.

RT,

13 March, 2013

"We hope that there will only be targeted political sanctions, and not a broad package affecting economic trade,” Deputy Economic Development Minister Aleksey Likhachev said.

“Our sanctions will be, of course, similar,” he added.

One way Russia plans on shielding itself from pending sanctions is by boosting trade in other currencies, not the US dollar.

“We need to increase trade volume conducted in national currencies. Why, in relation to China, India, Turkey and other countries, should we be negotiating in dollars? Why should we do that? We should sign deals in national currencies- this applies to energy, oil, gas, and everything else,” Aleksey Ulyukaev, the Minister of Economic Development said in an interview with the Vesti 24 TV channel.

The Duma, Russia’s parliament, is drafting legislation to allow Moscow to freeze assets of Western companies and individuals in the event sanctions are imposed following the Crimea referendum vote on March 16.

The bill would give “the president and government opportunities to defend our sovereignty from threats,” according to its author, Andrey Klishas, as quoted by RIA Novosti on March 5.

The US Congress has already denounced Russia’s actions in Ukraine. On Tuesday, lawmakers passed a resolution that urges the US to “to work with our European allies and other countries to impose visa, financial, trade and other sanctions on senior Russian Federation officials, majority state-owned banks and commercial organizations, and other state agencies, as appropriate.”

Earlier this week the European Union threatened to impose further sanctions on Russia starting on March 17, after the referendum in Crimea takes place on Sunday. Speaking to the German parliament, Chancellor Angela Merkel hinted sanctions would be needed if Russia "continues its course of the past weeks" in Ukraine.

"It would not only change the European Union's relationship with Russia. No, this would also cause massive damage to Russia, economically and politically," Merkel said Thursday.

The decision on sanctions was made, “especially on the procedure of introducing sanctions,” Poland's Prime Minister Donald Tusk said. “The consequence of this will be the start of sanctions on Monday,” he added.

However, China’s ambassador to Germany Shi Mingde, warns of the global economic affect sanctions against Russia could hold. Mingde said the geo-political tiff between Russia and the West could “spiral” into chaos.

President Putin and the foreign ministry have both said sanctions against Russia could backfire, and spill over into the global economy.

Foreign Minister Sergey Lavrov denounced any Western-led sanctions as “hasty and ill-considered”, and President Putin said squeezing economically would cause “mutual damage”.

If extreme Iran-style sanctions are imposed on Russian exports, the EU would be much more exposed than the US.

Europe imports nearly one third of its gas from resource-rich Russia, and some countries are completely dependent on Russian gas.

While the US and Russia trade very little, Russia is Europe’s biggest customer, and the $13 trillion economy would suffer if trade with Russia was halted overnight.

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Gazprom's pipeline pledge: We don't want Ukraine economy to collapse

Russia's biggest gas producer Gazprom said Thursday it doesn't want a 'gas crisis', and hopes Ukraine can pay its outstanding $1.8 billion debt - READ MORE http://on.rt.com/odgllg
"Yes, in Ukraine there is a deep political crisis, but they have to pay for gas. We find our actions towards Ukraine are completely loyal," CEO Aleksey Miller, told reporters in Berlin, Germany.