UPDATE: Putin: No plans to cancel retaliation against Western sanctions

(Provides new headline, lede, adds paragraphs 2, 3)

SOCHI, Oct 18 (PRIME) -- Russia is not going to cancel its retaliatory measures against Western sanctions yet, but the longer the sanctions are effective, the fewer chances for return have companies forced to leave the domestic market, President Vladimir Putin told reporters on Thursday.

“The least we can do is to create competition among domestic producers. We will strive to do it using every method. The volume of support of the agricultural sector will not decrease as well,” he said.

Russia will gradually move away from settlements in U.S. dollars to ensure economic security, he added.

Both the U.S. and China have already suffered U.S. $500 million losses from their trade disputes, and escalation may harm the global economy, Putin also said.

“Now mutual retaliation between the U.S. and China costs around $500 million. If it continues, there will be a trillion or 1.5 trillion which is a considerable size, around 0.4% of the global economy. This may become a reason for a further decline of the economy which will hit everyone, no one is interested in it,” he said.

Each state has the right to react to unfriendly policy despite some negative consequences, Putin also said.

“I think that an instant reply may worsen the situation but, of course, it is necessary to react and to protect own interests. We, Russia and China, act this way.”

Those who initiate trade wars and sanctions suffer from them themselves, he added.

“Such actions may cause a positive effect in the medium term, but negative consequences are inevitable in the long term.”

End