Since Russia annexed the Black Sea peninsula of Crimea from Ukraine in 2014, the European Union imposed a ban on business dealings, including any investment there, cooperation in tourism services, as well as exports of some goods and services. As it was announced on Friday, the sanctions will now last at least until June 23, 2017.
 
The EU is due next week to extend until the end of 2016 its broader economic sanctions on Russia over its role in the crisis in Ukraine are prohibited to member states.
 
The crisis in Ukraine has pushed relations between Moscow and the West to new lows, though the EU is looking to review its broader policy toward Moscow in the second half of the year.
 
Reacting to EU’s announcement, President Vladimir Putin said on Friday Russia did not hold a grudge against the European Union and was ready to work to improve relations with the bloc, which he said was still a key trade partner.
 
“We do not hold a grudge and are ready to meet our European partners halfway” Mr. Putin told the forum. “But it certainly cannot be a one-way game.”
 
In fact, he played down the economic difficulties caused by western sanctions. Mr. Putin said Russia had weathered recent economic difficulties successfully, citing falling inflation and capital flight and the preservation of foreign exchange reserves.
 
“Russia has been able to solve the most acute problems and already in the near future we count on the renewal of (economic) growth” he noted.
 
Signs of a tentative thaw include a high-profile visit made by European Commission President Jean-Claude Juncker to Russia on Thursday.