Medvedev slams EU sanctions against Russian banks

Russian Prime Minister Dmitry Medvedev Saturday criticised the European Union (EU) over its ban on Russian banks, warning that the 28-member bloc will pay the price.

The latest EU sanctions banned the bloc's nationals and companies from providing loans to five Russian state-owned banks, and restricted Russia's three major oil companies and three defense companies from receiving capital in Europe.

"The decision made by our European partners is essentially subjective. I think it is pointless and just ugly to Russia," Xinhua quoted Medvedev telling reporters at an international investment forum in the Russian resort of Sochi.

He admitted the current situation in the international financial market was unfavourable to Russian banks, which were rejected by "practically all positions for receiving foreign liquidity", a media report quoted him as saying.

Russia and the EU shall come to agreements sooner or later, said Medvedev, warning that Europe will inevitably lose its share in the Russian market.

"European counterparts would not be able to come back to the niches in our economy ... This is the price Europe will have to pay," he said.

The Russian leader said investors from Asia and Latin America do not have to worry about their positions in Russia if Russia-EU relations get back to normal.

The prime minister also said the government will not withdraw its ban on imported goods, including the prepaid ones.