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BRUSSELS, Oct 4 (Reuters) - European Union sanctions against Russia are working well, a top European Commissioner said on Tuesday, dismissing as Russian propaganda criticism that EU measures were ineffective and had little impact.


Hungarian Prime Minister Viktor Orban criticised EU sanctions on Sept.

26, saying they had backfired. Some politicians from right-wing parties in France or Italy have expressed similar sentiment.

But EU Commissioner for Financial Stability Mairead McGuinness dismissed such views as influenced by well-prepared Russian propaganda.

"No country can survive economically, or from a development point of view, if it is cut off from the global financial system, if its foreign reserves are frozen, if it is not getting the technology, if it cannot import all it needs for its manufacturing industry and for its war machine," she said.


Russia "is losing brain power by the thousands," she told a briefing.

"So the impacts are severe, but we are aware that Russia is very good at propaganda, clearly, not only internally, but externally," she said.

The EU is working on its eighth package of sanctions against Russia over its invasion of Ukraine.
The latest measures are set to include steps to enforce a price cap on Russian crude oil sold worldwide. (Reporting by Jan Strupczewski, Editing by Rosalba O'Brien)





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By Anushka Trivedi

MUMBAI, Oct 3 (Reuters) - The Indian rupee tumbled towards record lows on Monday amid frail risk sentiment and as oil importers ramped up dollar demand expecting a jump in crude prices, with traders adding that the central bank tried to stem the local currency's losses.



The partially convertible rupee declined 0.65% to 81.8725, falling in line with its Asian peers.

It fell up to 81.9175 during the session, just shy of a record low of 81.95 hit last week.

Traders said the Reserve Bank of India sold dollars at 81.85-81.90 levels to curb the depreciation in the currency.

Stocks fell heavily as oil jumped 4% after reports said producer club OPEC+ was considering slashing output to support a recent downturn in prices.

"A signi***ant surge in crude oil prices is leading to a lot of dollar demand by oil importers (in India) and that is weighing on the domestic currency," said Sugandha Sachdeva, VP of commodity and currency research at Religare Broking.

Now, there are concerns around foreign portfolio flows into equities, which is further pressurising the rupee, she added, saying the OPEC+ meeting on Wednesday would be a key event.

The move in the crude market only added to investors' worries about aggressive interest rate hikes leading to a global recession, and sparked a beeline out of risk assets.

Indian stocks shed 1.2%, accelerating losses towards the end of the session, as European stock indexes plunged.

Overseas investors have turned net sellers of Indian stocks recently - having withdrawn about $2.5 billion over the last seven trading sessions - likely fuelled by mounting concerns over the economic outlook in the U.S.

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(Reporting by Anushka Trivedi & Nimesh Vora in Mumbai; Editing by Savio D'Souza)





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