it's technology innovation all the developments from around russia we've got the future of. the lone crusader america slaps russian energy johns with another more painful sanctions package but europe. if it wants to follow suit. but. washington and the penalties will backfire a c. wraps up a tour of latin america with a pile of lucrative contracts in his pocket and firm handshake from his brics partners also on the way. i. was really strike on a gaza beach kills four palestinian children as they played football the short humanitarian cease fire agreed by both sides after the tragedy will last for

another two hours. thanks for joining us this hour my name's neil harvey and you're watching international. now the united states has signed off on a punishing new sanctions package against russia for the first time blocking major russian companies from american markets slew of other firms were also hit from arms makers to radio manufacturers russia's biggest oil producer that are sniffed as well as the country's third largest bank gazprom bank are perhaps foremost in that list or both contributed enormously to the state budget both directly and in directly the united states however found it was alone in the idea of championing more sanctions washington's zeal is not being matched in europe which is going

ahead with much softer measures despite personal calls from barack obama brussels has decided only to suspend funding for future joint russian european projects that brings us moscow's reaction. to all these sanctions are illegal says the russian prime minister they are unacceptable blackmail and even a revenge for u.s. failings in ukraine says the russian foreign ministry the russian president now touring latin america says that these latest string of sanctions may have a boomerang effect on the u.s. economy. without a doubt these sanctions are not only damaging russian american relations but also driving them to a dead end i'm convinced that they go against the american governments and american peoples own long term interests moscow says it will respond to this latest string of sanctions but its response will be made in a car and sensible manner unlike actions of washington. my colleague. bill

being the host of auntie's venture capital program what impact the u.s. sanctions could have on russia the moment it's the russian companies are being impacted and that's exactly why these sanctions have been imposed and it's the big major blue chip companies now why they're being impacted is because they can access the u.s. financial markets at the moment in other words the u.s. dollar and that is crucial for international trade and that's what a lot of these russian companies rely upon if you would about the russian markets themselves and how are they reacting today have a look at least see how the my six has performed today in the early trade the initial impact was a slump as can be expected just here you can see we did have some resilience demonstrated immediately after that and they have come somewhat but they've managed to balance themselves at around two point five percent a loss and it is those blue chips that are losing the tech around five so we're doing some pretty significant movement here with the russian markets but. it's supposed to be the first system that is being talked in deede is the financials

that are suffering so say gas from for example is the gas problem bank it's the financial arm of that company particularly will be able to see that the russian financials have an international platform they're evident in europe in asia as well as that's exactly why it is a universal imbalance and we know that putin referred to that boomerang impact that could be injured what it has been on the issue of energy you know we all know how crucial energy is to russia india was because there are so many resources here exactly why a lot of international companies course russia for that and it's those contracts have been at the moment investors are certainly demonstrating their dissatisfaction with that because it's not necessarily the practicalities that will be impacted in all of that it's it's really the sentiment is the feeling is the confidence that can be lost in all of this and we are talking about international companies like stats all x. and mobile. he that all have huge contracts here until they are ten twenty fifty

years and they are these are the big players are referring to right there what about europe during all of this because obama dishes out a new set of the harsher sanctions to date europe is rather slow to move there seems to be but it has to not as enthusiastic or not are there and that's because they do have a larger trade partnership with russia two sides of that coin that's exactly why mr obama wants europe on board this sanction bus because he does want more of an impasse. ok for more on those sanctions potential impact on their aims let's speak now to dr richard wellings the need to tutor of economic affairs. joining us dr wedding's now when we talk about sanctions i'm not sure if everybody in the public fully understands exactly what we're talking about so let's try and make this the simplest possible first or how they supposed to work. well there are various kinds of sanctions but for example one of these things could be actually to make it illegal for american businesses to deal with russian businesses it could

involve freezing the assets of russian russian individuals and russian business is held in the united states in other countries so there are various methods that can be used but of course the long term evidence suggests that these terms be a counterproductive and actually harm the nation imposing the sanctions and if they do work it tends to be when they're imposed on very small isolated and weak countries and clearly russia is very far from that category ok so in theory they're supposed to cause problems for the russian economy how they're supposed to do this . well i mean one of the problem with this is that there will be a long term fear that there will be a righteous of facts so that every few months the sanctions will be tightened to this a bit further and this is going to deter long term deals between american businesses businesses and russian businesses because of course this huge uncertainty there would need to be a risk premium for example for investors who are going to invest in russia if they

thought that this investment could be deemed illegal down the track so it does have a chilling effect on long term investments and long term deals between businesses in the respective countries ok two big russian companies gas from bank and russian f. the country's leading oil producer they're the ones who've been specifically targeted how do you see them being affected. raise the cost of the doing business in the united states but having said that the in those kind of markets it's quite easy to bypass those kinds of sanctions and we even saw it with countries like iran who find found it relatively easy to bypass u.s. sanctions which are obviously a lot of a different kind of magnitude or very extreme sanctions imposed on iran so you can sense you can generally trade via third parties and countries or i mean basically you can send your oil is different countries and then there are all that previously well went to other countries they go to the u.s. i mean are there ways around this because there is a global market i mean you mentioned some of the ways that sanctions could be kind

of minimized and yet we're hearing at the same time these are the sort of the hardest hitting about if sanctions i mean all in or do you think they're going to actually be effective. no i don't really looking at the evidence in the town to protect if i mean what what it is going to do is it's going to encourage russia in the longer term some move it straight east and we saw earlier this year this huge russian chinese gas deal of course the more stringent sanctions become from the worse the more likely these kind of a shift in world trade are going to going to happen and it's just going to increase the incentives further of course that's going to be particularly damaging for for the e.u. potentially which is so heavily reliant on the russian trait now what we're hearing is that the sanctions from the u.s. and the ones from europe a very different a huge contract just explain how big the difference is and do you feel like brussels is left washington hanging on this one where we clearly there's a big difference in emphasis and that reflects the magnitude of the trade flows

between the u.n. russia in the u.s. and russia so e.u. russian trade is about ten times the size of u.s. russian trades that clearly there potentially massive losses from the you imposing too stringent sanctions on russia particularly given the huge dependence on russian energy importing countries towards the sort of eastern side of the european union so there's a big difference in emphasis and i think so extent the e.u. at this stage of gesture politics where it's trying to if you like to please the americans do as little as possible in reality so i think i think we're not going to see. your much action from the they'll try and get away with as little as possible without really upsetting the white house of course the reason we've been talking about sanctions because of all the problems we're seeing on the ground in ukraine i mean will any of this any of these sanctions actually change the situation in ukraine do you think. no and i mean. the question

is you know what are the underlying geopolitical mostly behind the sanctions and also some of the events in ukraine. i mean is there a strong incentive to try and stabilize the situation or is it in some interest to try and keep it stable if for example some powers are trying to damage russia in the longer term so i mean there has been in the u.s. about this year asia knock trade access between the e.u. russia and china of course the u.s. wants to keep the you very much for firmly in the if you like the u.s. or because of influence so whereas world trade patterns of course having the opposite direction so there are there are these sort of why the considerations where we look at what's happening in ukraine and when we look at the sanctions which though if they don't make sense from an economic perspective maybe you know there are other motives behind them thanks so much for explaining the situation for very interesting stuff dr richard wellings deputy editorial director at the

institute of economic affairs thanks so much. ok to stay with us here on r.t. at the root of sanctions is the civil war of course in eastern ukraine later this hour we meet one refugee family that got away they tell us the ordeal that they had to suffer to get free of the war zone. and the. next four young palestinian boys playing football on a beach in gaza have been killed by israeli shells we must warn you that the upcoming pictures from the scene are disturbing. now they died right before the eyes of international journalists many of whom are stationed in an area regarded as one of the safest in gaza and israeli ship apparently fired on the beach where the children were playing some of the kids who were injured monies to reach shelter at a nearby hotel for boys who didn't make it to safety or relatives. these are grieving family members of the children. there is the mother of one of

the boys their funerals were held in gaza just several hours after they died both israel and hamas agreed to a humanitarian cease fire given the u.n. time to get aid in it is now in effect and is due to last round two more hours harry fear is in garza for isn't he met some of the victims' family members. i caught up last night with the four families affected these four families all from the extended back of family we spoke to they were of course absolutely destroyed by the events it was a devastating exercise to speak to they of course invoked the fact that these were innocent children simply playing on the beach but of course they were not responsible for any belligerent activities we saw tens or even hundreds of family members congregated in sympathy and solidarity morning with the parents of the of the of the lost children and we caught up with is male backers.

who of course exclaimed that this was an unjust act on the part of the israeli army a living i love it oh i know what i did you. know what you know now why don't they go out. of the words that i did that are the. head nor the glass just. as if the courts are also national journalists who directly witnessed the incident some of them i. actually tried to give first aid to the palestinian children who had been injured one of the injuries was in the boy's abdomen it's not clear why israel may have struck this target the international jon this report but they were having bad lunch at the time many of them in these hotels overlooking the beach marina on the mediterranean coastline they reported the sudden emergence of a light. on the horizon followed by a shelling which targeted

a small structure on gaza's marine base was then followed by another shelling tens of meters away absolutely close the video proves that to where the palestinian boys were running away from the site of the first shelling well i spoke last night with the manager of one of the hotels he was an eyewitness to this incident. to see what happened. and they came to us they was running you know skaven from. one of them was all of them was. injured then i called the ambulance to pick up them because it. was very bad so when i hear that one of them. on their way to that was put down well this incident unfortunately is of course not the only case of palestinian children being caught up in this ongoing violence here in this recent bout of

violence between israel and hamas this comes obviously in the context today all of this new. initiative coming in into effect to allow humanitarian aid to enter the gaza strip and that is being welcomed here by palestinians on the ground we will keep you updated. daily we spoke to an israeli defense force spokes person who says that israel has no choice but to go on with its offensive. we do not show targets in underwear any way or form or civilians we target hamas terrorists in the i.d.f. operation is ongoing in order to restore safety and security for the state of israel hamas decided to have an onslaught against got against the state of israel and indeed even when we held our stations yesterday for six hours they continued to bombard israel. indiscriminately and we were left basically with no alternative.

well as we just heard israel insists it targets only hamas militants in order to protect its land but gaza's territory is much smaller than israel's and the population density is about ten times higher so many packed into such a tight space that's why many more palestinians die compared to israelis so far more than two hundred twenty have died in gaza compared to one in israel another factor is that the kasam rockets used by hamas are much less destructive than its rivals weapons also making the palestinian death toll so much more tragic is that almost half of the population in gaza are under fourteen years of age. but there's been an international outcry over the killing of civilians across the americas in europe and beyond tens of thousands of people have taken to the streets to demand an end to the offensive every day a new demonstration appears on the map in protest that israel's actions people have been waving flags chanting slogans and holding up posters urging for an end to the killing most protests have been peaceful but some of seeing clashes with police.

the technology downgrade for german politicians coming up for you the n.s.a. spy scandal forces them to return to more basic forms of right to find out more about that a little later in the program. the stories we cover here not going. back story. there's a reason they don't want you to know. now let's break the set. with the economic downturn the final. day. and the rest

of it will be everything we. are watching on t.v. international now next this hour a hefty pile of deals wrapped up the six summits of top developing countries namely brics the most significant is the establishment of a new global bank that's set up to rival the i.m.f. and the world bank artie's paul scholes explains. the brics nations really good to

strengthen ties in court countries across the continent here in latin america as they look to develop and build what's being described as this new multi-polar world in an attempt to try and wrestle influence our global influence away from washington on his tour over the last six days putin has visited cuba nicaragua argentina and then finally here in brazil for the two thousand and fourteen brics summit the highlight of which was the announcement of the new one hundred billion dollar development bank and also the sustainability fund is well worth the same amount of money one hundred billion u.s. dollars is going to be seen as a long term rival to the international monetary fund and the world bank but in a putin's visit to the region also gave some of the latin american nations the chance to sign some lucrative agreements with moscow russia will help cuba explore its offshore oil reserves up to moscow rows of ninety percent of

a funds that atomic energy corporation are sansom is likely the both of its presence in argentina as part of a nuclear corp deal and russia is trading security ties with fellow brics member brazil they should also now increase significantly. we have got plenty more waiting for you on our web site head to r.t. dot com for the removal of radioactive elements from japan's stricken fukushima plant proving even more hazardous than was expected. nearby rice paddies have been seriously contaminated but the owners are still moving radioactive material from the nuclear stations broken reactors and also there for you again to another diet mention or perhaps a u.f.o. landing point will speculation is running wild after a mysterious giant black hole in the ground was discovered in siberia get more details on russia's own x. files online. german

politicians are going old school in order to stop their american allies from spying on what they're up to sensitive documents could now be written on the humble typewriter in order to keep them safe or to speak to all of us more. the ultra modern buildings of the german parliament could be set to echo with a sound from a very different era if the man in charge of the parliamentary inquiry into n.s.a. spying here in germany gets his way. said that if politicians want to avoid digital snooping then the only choice for them is to ditch the smartphones in the laptops and go back to the typewriter and if i'm going to machine enough to thank statens computers tacitly however doesn't need a little machine. and that's the suggestions that were made on a breakfast t.v. show here in germany haven't gone down well with some of the other committee members one member from the left party said that well before she would go to a typewriter she thinks that they should get rid of the secret service is entirely

another member from the social democrats that comments like this were just plain silly and made the whole inquiry look rather stupid suggesting that it was not the right answer to go back to a nineteenth or twentieth century technology in the modern age but what it does show though is that politicians here in germany are starting to appear desperate to try and show that they are doing something about spying scandals that have rocked the country recently and have drawn outrage among german people who've said that well their politicians just haven't been doing enough we have seen this start to change the following two spy scandals involving one member of the security service and one member of the for the. defense ministry that may have been spying for the united states we saw the chief of the cia here in berlin being told that he should get out of the country that still hasn't happened as of yet but it was a strong comment that was made so the politicians here trying to show that they are

doing something about the ongoing in escalating spy scandal is that we've seen come out following the leaks of edward snowden. the former and i five intelligence officer andy mush thinks that protecting privacy is a tough task even for the most influential people in the world. however lightheartedly the german politician mentions using typewriters he's probably when it comes to a proper security issues within government he's probably absolutely right we have a situation where even our democratically elected representatives have to think it's deeply and seriously about how to protect the privacy of their communications particularly when they're investigating the very subject of the invasion of the previously all of their systems which is what the going to target at the moment doing in germany trying to hold hearings to work out exactly what the n.s.a. has been doing which might be contravening the constitution of germany we have this . situation now where everything can conceivably be hoovered up by the n.s.a.

and it's facile states in the in europe everything can conceivably be stored forever and used against citizens in the future if the laws change and everything can conceivably be knowing amongst the private deliberations for parliaments not democratically elected representatives so it's. it's worse than orwellian i think is the best way of putting it there are now more than twenty thousand ukrainian refugees living in turn towns in russia and that number is expected to grow as more six a from the fighting in their homeland and the shelling of their towns and villages or to visited one such camp it's in russia's rough stuff region. the motions the russians we became scared for our children we didn't want them to see all the air raids that were taking place it took them five days to get from the gun through this refugee camp in the russian side of the border distance normally covered in a car in several hours moscow our front stoop is to the border and the national guard nearly took us off the bus but another woman on the bus told them that we

were relatives the ukrainian national guard stopped us that every single checkpoint and they went through all of our belongings saying they're searching for weapons and drugs. they follow in the footsteps of you give me a sister who fled to russia just several weeks earlier. my sister is from sloviansk she had a baby several months ago she spent two months running back and forth from the bomb shelter with a new born like thousands of other refugees alexander and you've stayed at home on the grounds going to war was just too close to their doorstep like many others they want to keep their last name unknown to protect the rest of the family feel left behind and that's just how our parents are we were screaming for them to join us but they said it's hard for them to leave their homes they already have a plan to get to another town where alexander can find a job to provide for his family but the same can't be said about many others in

this tent city this family's story is just one of the estimated thirty or so thousand of refugees living in the rostov on don region at the moment just days ago these people couldn't have imagined not having a house or a country to call their own right now they're living in tents and have no idea what this year will bring in southern russia. r.t. . ok let's run the world stories for you now the afghan army says it has killed all the taliban fighters who attacked the main airport in kabul overnight militants occupied a building still under construction and fired rockets at the airport all civil flights were canceled as a result the clash came during a tense time in afghanistan as a recount is underway for the second round of the presidential election. libya now another port hit by fighting this time in tripoli at least twenty planes have been destroyed it's led to traffic controllers going on strike grounding many flights in the process clashes with radical groups seeking control of being common sense two

thousand and eleven where moammar gadhafi was ousted. ok don't forget you can join with the very latest headlines at the top of the hour next week as breaking the set is of a mountain focuses on. britain's intelligence services and g.m. a giant monsanto which gets the ride its ogles on capitol hill. two u.s. agents who are working deep inside the german government have been caught which has heightened tensions between the two countries even more the german reaction to this was to expel the cia chief in berlin from his post this is the kind of story that makes people who hate u.s. foreign policy to share button on facebook and get all excited it makes many feel that merkel or at least some elements of the german government are actually fighting against foreign meddling but i would say that you should take this story

with a huge grain of salt yeah they just had one cia asset out of the country and this could be a sign of change but there are still twenty plus u.s. military bases currently operating in germany and in fact the bow holder base is one of the largest ones outside of america territory with thirteen thousand troops permanently stationed there so basically if merkel really wants to reduce foreign meddling in germany she's going to have to somehow get a massive foreign military presence out of a country and since this has been there for almost seventy years already i don't think that they're just going to pack up and leave on their own one day but that's just my opinion.

the. rules in effect that means you can jump in anytime you want to. welcome to breaking the set i'm not the mind so a couple months ago i knew.