As the US and the European Union adopted tougher economic sanctions against Russia over the conflict in eastern Ukraine and downing of Malaysia Airlines flight MH17, Russian officials struck a defiant note, promising that Russia would localise production and emerge stronger than before. But analysts in sectors that could be affected by the sanctions - finance, defence and energy - predicted that they would suffer in isolation from the west.
Russia's War Against Ukraine
Guardian: Russia takes defiant stance in face of tough EU and US sanctions
Russia's President Vladimir Putin (L) speaks during his meeting with Russian ambassadors, envoys and diplomats at the Foreign Ministry headquarters in Moscow, on July 1, 2014, with Foreign Minister Sergei Lavrov (R) listening.
