Russia moves to retaliate over sanctions by cancelling flights
RUSSIA is preparing plans to retaliate against the EU after the 28 nations and America imposed heavy sanctions on the country in the wake of the downing of Malaysian Airline MH17 last month.
Russian Prime Minister Dmitry Medvedev threatened to take action against the EU yesterday, after the sanctions caused low-cost airline Dobrolyot to ground its planes, hitting parent firm Aeroflot dear.
Shares in the national carrier fell 5.9 per cent, making it the worst performing Russian stock yesterday. Dobrolyot had to cancel all flights after its airline leasing agreement was canned by the EU.
Russia is understood to be considering plans to ban EU carriers from flying to Asia via Siberia, which could cost carriers using the route €1bn in three months, according to Russian business newspaper Vedomosti.
Russia called an emergency meeting of the UN security council yesterday, in a bid to address the situation in east Ukraine. President Putin is preparing to start extensive military exercise on the Ukraine border. It is viewed as a show of force towards Ukraine.
Lufthansa and British Airways declined to comment on how they would be affected if Russia imposed retaliatory measures.