Russian Prime Minister calls for "level-headed" response to sanctions

Russian Prime Minister Dmitry Medvedev said the country is being put under pressure by the sanctions imposed by the US and the European Union (EU).

Speaking to members of United Russia, the country’s ruling party, Medvedev said Russia must remain level-headed in its response to the West.

"When a series of our partners, if they can be called that, test Russia's strength through sanctions and all kinds of threats, it is important not to succumb to the temptation of so-called easy solutions and to preserve and continue the development of democratic processes in our society, our state," Medvedev said.

The US and the EU imposed a new round of economic sanctions last Friday aimed to limiting access to foreign capital markets for some of Russia’s main oil companies, including Gazprom, Gazprom Neft, Lukoil, Surgutneftegas and Rosneft.

Moscow has warned the EU that it will retaliate with counter sanctions targeting the automotive and clothing industries in particular and the Kremlin claimed that EU taxpayers will have “to foot up the bill” of Russia’s bans on imports.

Sanctions looked to have an immediate effect with the Russian ruble posting new lows on Monday, trading at $0.02.

Ukraine and the West accuse Russia of fuelling the conflict in Ukraine by supplying weapons and troops to the separatists, a charge Moscow has repeatedly denied.

Meanwhile, the ceasefire between the neighbouring countries which began on 5 September came under threat on Sunday, as a six-person international monitoring team was shelled in the eastern Ukrainian city of Donetsk.

Two vehicles of the Organization for Security and Cooperation in Europe, the diplomatic body that brokered the truce, were severely damaged after four shells exploded about 200m away from their location.

"All six colleagues were able to get back to base, but both vehicles were badly damaged," Michael Bociurkiw, a spokesman for the organisation was quoted as saying by Reuters.

"We regard this as a very serious incident. It's the first time our vehicles have taken fire."