TODAY: Media giant linked to Putin allies; West provoking a Cold War, Putin says, threatens Kiev; HRW accuses Crimea of human rights violations; Merkel says Russia not likely to stop at Ukraine; Shoigu discussing military cooperation with China; inflation to reach 9% by end of year; German and Polish diplomatic tit-for-tat; Deripaska given head role at Rusal.

News agency R.B.C.’s efforts to construct the ownership of private media company National Media Group uncovered ‘a litany of President Vladimir Putin’s friends and allies, many of whom are under sanctions from the U.S. and EU over Russia’s role in the Ukraine crisis.’  Speaking to German television channel A.R.D., Putin suggested that Russia is being provoked into a Cold War by the West; that the Western response to the annexation of Crimea was ‘totally disproportionate to what had happened’; and warned that ‘a catastrophe’ would happen if Kiev continues to ‘surreptitiously support Russophobia in Ukraine’.  Human Rights Watch accused Crimean authorities of serious human rights abuses against residents who opposed Crimea’s ‘belligerent occupation’ by Russia.  The European Union decided not to impose further sanctions on Russia yesterday, but increased existing restrictions on individual separatists in Ukraine.  This piece says Putin’s comments about the positive effects of European sanctions on aspects of the Russian economy indicate a belief that sanctions ‘will force the Russian economy to evolve past its dependence on the oil and gas industries’.  German and Georgian leaders both say Russia is seeking to interfere in countries other than Ukraine across southeastern Europe.  Giving a speech in Sydney, German Chancellor Angela Merkel spoke out against Russia’s involvement in Ukraine, warning that consequences would likely not remain regional.  The Foreign Ministry says the U.N. Human Rights Council’s actions show ‘a tilt towards the settling of political accounts’ and ‘groundless sermonising’.  John Kampfner says the pugilist reception of Vladimir Putin by Western leaders at the G20 should have happened much earlier.