primitive blackmail moscow lashes out of the u.s. for slapping its energy giants with more painful sanctions over ukraine. putin warns washington the penalties will backfire that the seed wraps up a tour of latin america with a pile of lucrative contracts and firm handshake from his brics partners also on the way for you this hour. to shell kills four palestinian children on a gaza beach israel agrees to a short term humanitarian truce.

welcome thanks once again for joining us smiling in the harvey you're watching r.t. international. united states has imposed a raft of new sanctions against major russian companies accusing moscow failing to take action to deescalate the crisis in ukraine russia's biggest oil producer us and yet along with gas problem bank are among those targeted just to give you an idea of the scale of these companies well the r.c.f. is a vital contributor to the state budget generating more than a hundred billion dollars in revenue annually and gazprom bank is the country's third largest bank it finances some of russia's most prominent energy projects well and in fact these two and other companies are now forbidding from borrowing money on the u.s. markets for periods longer than ninety days. in response russia's foreign ministry

has accused the us of damaging relations between the two countries moscow views the sanctions as blackmail and has warned of possible counter measures. possible well these sanctions are illegal says the russian prime minister they are unacceptable blackmail and even 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 people's own long term interests moscow says it will respond to this latest string of sanctions but its response will be made. unlike actions of washington. and we're now joined in the studio by editor of business new europe magazine ben naresh to discuss what these measures actually mean in practice ben thanks so much

it is a tricky issue i know that you guys in the financial world find this simple stuff it's not so simple for the mere mortals amongst us so in reality what will these sanctions me it's still not entirely clear the details are still coming out but they seem to be very targeted at a few companies and specifically this is a significant scaling up because these are financial sanctions until now it's been aimed mainly at individuals and their personal assets but now we've targeted corporates banks specifically those brands on boring abroad i mean as i understand it i mean the speculation has been that these are actually more harsh sanctions that have come previously but in reality as i understand companies can still be trading because they'll be doing business in the u.s. is are like there's a trying to find a tricky sort of path between on the one hand punishing russia and on the other hand maintaining the businesses that are here because you have a huge business lobby both in america and particularly in europe who are invested

in making most of the profits here and the european partners are putting a lot of pressure on the states you know to to keep it contained to back off so that they don't lose any money and consequently the financial sanctions have been put in a very very specific so for example the companies are out to borrow from american entities more than three months sorry yes three months three months. but at the same time you've got mastercard and visa or you know three trillion dollars worth of. their business it's going to continue from bank is one of their clients and so you don't want to destroy that business so if you've got someone you know like gazprom bank saying that actually they're not going to change the way they operate then is the sanction really affect it. it's not effective in so much as it doesn't really do much economic damage but it is effective because psychologically in all that all the sanctions have been posed who has very little economic damage directly but the psychological effect is enormous i mean the ruble is already

tanked today the stock market is sort of by five percent you know there's billions and billions of dollars destroyed and the threat that more sanctions will come has created this environment of uncertainty which means companies can't raise money they can't invest you have massive capital flight and this is causing russia she would have up would it be fair for me to say this is a bit like a shot across the bow in the sense that perhaps those companies directly named on affected so much but it'll scare a lot of the people i think the previous sanctions were definitely shots across the bow with this one you're starting to clip the ship right and it's not going to sink it but you know what is splintering what about brezhnev huge russian oil producer a lot of ties in europe and america will they be affected much by this this is the billion dollar multibillion dollar question because at the moment and last night in london trying to find finance money to pay off the deal at the same time they have an enormous investment projects in the arctic together with exxon and the

government here has already started suggesting that maybe that deal will be off which will have an american company very badly it's an enormous deal. but the sanctions as they are at the moment means that exxon can trade with ross and they can do business with rosneft so in theory the project can go ahead but this is i'm talking about the psychological problems because certainly there's a huge question mark over all of that deal which will cost america more than it's going to cost russia in terms of most business versus the cost of the sanctions it sounds like one of the biggest kind of results of the sanctions is the panic which we have seen very short term in the markets rubles not phone to well as a direct consequence do you think that's going to continue for all the time they've brought us the sanctions and. it's of sold off and then there's a day or two where everyone assesses it and goes through the details and then they sort of recover and if you if you look at the crimea crisis when russia annexed crimea market sort of heavily in the meantime it's made back all the losses from

that we're back you know where we were at the beginning despite an accession of crimea i think the same thing is going to happen again after this because when you drill into it there's very little actual economic damage that's been done and then people are going to reassess and then once the talks start again because eventually you'd hope it's a negotiated solution and as long as you know we don't have a full on military style invasion of ukraine in the meantime then you know eventually you are going to come out the other side much as i want to mention reunification with crummy just because russia doesn't see it as an annexation but that's another conversation altogether in terms of the financial impact upon russia . i mean obviously what u.s. would like to do here is they want to punish russia and they want to suffer a big financial loss if you think long term not actually help but what has happened already i mean the economy is performing very badly economic growth is very slow half percent one percent the capital flight the flipside of that is that there's no investment going into russia either domestic or foreign and that's really doing

a lot of damage because russia needs that investment to recover to grow and with this uncertainty this atmosphere uncertainty that's been created that's stopping the investment and until that past is russia will be suffering badly because of lack of investment and can't get by me and you know like you said effectiveness of these current sanctions because people are afraid there might be more coming do you think we'll see them if so when. i don't know when but. yes i mean this certainly on the cards and as i say the significance of these sanctions is you've gone from punishing individuals friends to corporate entities and you've used a financial mechanism and that's very scary for investors and the next round. we're talking about sectoral sanctions were go after it was interesting russell it was on the way it was on the list progress problem wasn't. if you start naming companies like you know you're cutting to the heart of the russian economy and that's certainly possible. really interesting if we were covering something definitely

from this conversation editor of business new europe ben iris thanks so much thank you. ok well all in all russia did feel the pinch of the sanctions almost immediately venture capital host kate if you will be told us about the reaction has come from the markets the main rush limbaugh's the my stock slumped around two to three percent for the day which would mean around four percent for the week the biggest fall in nearly a month you can see the investor reaction it just hit the slump as the day kicked off here in moscow. the russian ruble well also losing value around one percent against both the dollar and the year and this is demonstrated here in this graph showing that the dollar's actually getting stronger against the domestic currency the european stocks interestingly enough they too came under pressure that says the trading day began and they remained in the red for the duration of the day this really just shows clearly the close relationship between europe and the

russian economy now the the practical impact on these businesses will be limited although felt but it's the sentiment it's the confidence that can be damaged with such sanctions what she did zero is not being marched in europe which is going ahead with much softer measures despite personal calls from barack obama brussels is decided only to suspend funding for future joint russian european projects dr richard wellings from the institute of economic affairs says it's because the has a lot to loose. e.u. russian trades about ten times the size of u.s. russian trades they clearly are potentially massive losses from the u. 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. the e.u.

at this stage of gesture politics where it's trying to if you like to please the americans but do as little as possible in reality so 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 or the route of sanctions is the fighting in eastern ukraine and later this hour we'll report on the fresh accusations being made by kiev's or thirty and our correspondent means one family which managed to escape from the bloodshed. next families in garza mourning for palestinian boys killed in an israeli shell attack they were playing football on a beach at the time we should warn you that we're about to show you pictures of the aftermath of that attack. and israeli ship apparently fired on the beach where the children were playing some other youngsters were injured managed to reach safety

though at a nearby hotel both israel and hamas agreed to a short term humanitarian cease fire are given when we were trying to get a deal with that was now expired and ash strikes between the sides have since resumed. you can see here grieving family members of the children that woman in particular a mother of one of the boys before children killed all related funerals were held just several hours after they died very fear is in garza for us and he met some of the victim's family members. i caught up last night with the four families affected these four families all from the extended back family we spoke to they were of course absolutely destroyed by the events it was a devastating exercise to speak to me but i love the old you know what i did you. already know i know i was just there was over all of the love that i needed that of

that if. i had not that. was if 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 this story has even really hit a nerve with the international journalists here who directly witnessed the incident some of them actually tried to give first aid they were having their lunch at the time many of them in these hotels overlooking the beach the marina on the mediterranean coastline i reported the sudden emergence of a light on the on the on the horizon followed by shelling. which targeted a small structure on gaza's marina this was then followed by another shelling tens

of meters away absolutely close to where the palestinian boys were running away from the site of the first shelling they also caught up with one of the eyewitness says the manager and receptionist of one of those hotels overlooking gaza's seaport they was running you know skaven from all of them was. injured and one of them in his face was. his leg and his arm you know so then i called the ambulance to pick up then it's not clear why israel may have targeted this area during the day it is understood to be at night used by palestinian militants but not during the day and we'll keep you updated. earlier we spoke to an israeli defense force spokes person who insisted that israel has no choice but to go on with its offensive and we do not shoot targets in the new or any way or form or civilians we talk it must terrorists and the idea for peroration is ongoing in order to restore safety and

security for the state of israel hamas decided to have an onslaught against against the state of israel i mean the 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 harass militants in order to protect its land but garza's territory is much smaller than israel's and the population density is about ten times higher so if serve any people packed into such a tight space the larger casualties well they are inevitable so far more than two hundred twenty of diving guards are compared to just warm in israel another factor is that the rockets used by hamas are much less destructive than its rivals weapons and also adding to the tragedy of the situation the fact that almost half of the population in gaza are under fourteen years old or there's been an international outcry over the killing of civilians across the americas in europe and beyond tens

of thousands of people are taking to the streets to demand and to the offensive these latest pictures here are from benazir it's but 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. do stay with us here on r.t. still to come this hour the n.s.a. spy scandal forces germany to return to basic forms of writing more about that a little later in the program. people with autism. great contributions. to society would beginning to see organizations schools. businesses and otherwise seeking go and hiring people with autism.

the. economic downturn in the final. days of the old saying i and the rest because i think he makes you believe it's really. on merit in the financial world. to see these developments happening not stop exuberance only take it know to be true not going to get it in life there are. welcome back you're watching r t international now

a some most of the world's five largest emerging economies known as brics was rounded off with some major deals the most significant was the establishment of a new financial institution which could rival the i.m.f. and the will bank pool scott explains. the brics nations really good to strengthen ties and caught 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 as 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 well

vladimir putin visit to the region also gave some other latin american nations the chance to sign some lucrative agreements with moscow russia will help cuba for example explore its offshore oil reserves that's after moscow wrote off ninety percent of revenues that atomic energy corporation or lausanne some is likely to bolster its presence in argentina as part of a nuclear cooperation deal and russia's trade and security times with fellow brics member brazil should also now increase significantly. well for more on the deal signed during the bric summit she can visit our website dot com amalia that cutting edge technology or a potential threats on a website learn why the f.b.i. fears self driving cars may become yet another tool in the office of terror groups . and also that a gate to another universe or a u.f.o. landing point perhaps all speculation is running wild after

a huge unexplained crater is discovered in siberia you get the full story online. right. search for you and i think that your. reporters. the government in germany is looking for ways to protect itself from foreign spies that's following revelations of mass snooping by u.s. intelligence and some politicians say that the best defense is to abandon digital technology altogether peter oliver has 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 patrick zen's purpose 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. are you considering typewriters a matter of fact we are not a little higher. no joke 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 to among german people who've said well their politicians just haven't been doing enough we have seen this start to change though 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. it was made so the politicians see it trying to show they're doing something about the ongoing escalating spice gun battles that we've seen come out following the leaks of snowden. earlier we heard from former my five officer sean she thinks that the drastic measures being proposed in germany show just how

difficult it is to keep communication secure 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 their investigation the very subject of the invasion of the privacy 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 and 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 known amongst the private deliberations of our parliaments not democratically elected representatives so it's. it's worse than orwellian i think

is the best way of putting it but ukraine's government has launched new accusations against russia over the ongoing conflict in eastern ukraine this time it says russian troops were behind the downing of a military jet. look to what is behind those claims. moscow is responsible for bringing. twenty five fighter jets near the area of the border between russia and ukraine on wednesday evening at the same time we're also hearing from. fighters from the people's republic for alleging that they helped brought down successfully not one but two ukrainian fighter jets on the same day so disparaging information that's only adding to the chaos that's already reigning in the south east of ukraine where the continuing fighting is forcing people to abandon their homes and start lives in neighboring russia as refugees.

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 through this refugee camp in the russian side of the border a distance normally covered in a car in several hours. our friends took us 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 at every single checkpoint and they went through all of our belongings. and drugs they follow in the footsteps of you give me a sister who fled to russia just several weeks earlier. my sister. she had a baby several months ago 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 in the country more. at their doorstep like many others they want to keep their last name unknown to protect the rest of the family left behind. 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 those families story. he 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 the future will bring in southern russia it in and out of. this round of some of their international headlines for you now starting with afghanistan where the army there has repelled a taliban attack on the country's main airport overnight militants stormed much passivity armed with assault rifles and grenades officials say all of the insurgents were killed in one five hour shootout the followed just days ago

a taliban suicide bomber killed eighty nine people at a market in afghanistan southeast. elsewhere heavy rains have triggered floods and a landslide in southern china killing at least eight people who are officials say six residents are still unaccounted for the region is also bracing for the arrival of typhoon ramesses which is battered central parts of the philippines leaving dozens dead. career a fire fighting helicopter has crashed near an apartment complex in the school all five on board were killed and a female student on the ground sustained minor injuries craft was returning from a search operation at the site of a some can ferry which capsized off south korea's coast in april killing more than two hundred ninety people. so what is it like to work on live international t.v. it's great fun i can tell you next we take you backstage you can find out for yourself with artie's.

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 baume 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 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. despite all the democracy slogans that we heard from the white house thank you seem to believe that deep down the u.s. administration has a sort of a cultural bias towards a correct believing that arabs or your rock is on simply not capable of democracy in the middle east is that it's been the site for multiple competitions by great powers empires no real ability to consolidate legitimate nation states except under military dictatorships i think.