August 6, 2014 By Citizen M

RA’s Daily Russia News Blast – August 6, 2014

TODAY: Putin calls for retaliatory measures against sanctions; Aeroflot tumbles over airspace concerns; Russia to sue Germany’s Rheinmetall; Kremlin blocked BBC interview about Siberian independence; Poland warns of imminent invasion of Ukraine; Khodorkovsky to miss mother’s funeral.

President Vladimir Putin made a public call for Russia to retaliate against the economic sanctions imposed by the West over the Ukraine crisis, suggesting measures such as banning Western firms and banning European airline flights over Russian airspace.  His comments immediately caused Aeroflot’s share price to drop 6%, amid concerns that such a measure could cost the firm $300 million in annual flyover fees.  But it also has the potential to negatively impact numerous European firms by forcing them to fly longer routes.  According to a Vedomosti report, the foreign and transportation ministries are already discussing taking action on Putin’s proposal.  Norwegian investment firm Kon-Tiki says this is not the time to abandon Russian stocks.  The New York Times discusses Japan’s latest somewhat half-hearted anti-Russia sanctions.  Russia is planning to sue Germany’s Rheinmetall for pulling out of a contract to supply combat simulation and training equipment to its military.  Russia is on the verge of finalising a five-year, $20 billion trade deal with Iran.

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