TODAY: Obama dismisses Russia; sanctions affecting economic sectors; oil price keeps Russia afloat; Germany pulls out of military deal; Russia bans Polish produce; Navalny trial begins; Marina Khodorkovsky dies.

In an interview with the Economist, U.S. President Barack Obama painted a grim picture of Russia, dismissing it as a nation that ‘doesn’t make anything’, and noting its dwindling population and lack of opportunities. Indeed, Russia’s economic sectors will be those hardest hit by Western sanctions, because they are largely dependent on foreign technology.  The strain is showing in the new Putin-approved sales tax, a 3% levy that will help regional governments to cover budget shortfalls; Bloomberg reports that no Russian companies received U.S. dollar, Swiss franc, or Euro loans last month, for the first time in five years.  But provided the price of oil stays above $104, Russia will not have to worry, says the Moscow Times, estimating that it has two years to survive on current reserves.  Germany is pulling out of a $134 million military deal to provide Russia’s military with a combat-training camp.  In retaliation for sanctions, Russia has introduced a ban on imports of fruit and vegetables from Poland – a $1.3 billion annual trade.  Rusal won support from all of its lenders in a $5 billion loan restructuring.