Moscow says it's drafting retaliatory measures against those US sanctions. But Washington's latest action is already impacting Russia's economy. CGTN's Lucy Taylor reports.

It's been more than five months since a nerve agent attack against a former Russian spy and his daughter in the English city of Salisbury and this was the moment the UK had been waiting for. The United States' decision to impose new sanctions against Russia for the poisoning. Russia denies involvement and calls the new U.S. sanctions illegal and said it will work on retaliatory measures of its own.

LUCY TAYLOR MOSCOW "As soon as the news was announced, the ruble tumbled and the stock markets also took a hit. These new sanctions will have two stages, the first coming into force August 22, with another, possibly more draconian round following three months later - unless Russia can meet a series of U.S. demands.

But instead, Russia looks likely to respond with its own sanctions.

MARIA ZAKHAROVA SPOKESPERSON, RUSSIAN FOREIGN MINISTRY "U.S. statements that they are ready to continue improving relations look grotesque. That is bare-faced hypocrisy. Sadly, what Washington does proves the opposite. It seems that the United States of America and allies of the forces that take these decisions and lobby them in Washington have the new behavior standard. They bring odious accusations against Russia without any basis of proof."

In Helsinki last month, President Donald Trump said strained U.S.-Russia relations changed for the better thanks to his intervention. Just a few weeks later, we now know - he may have spoken too soon. Lucy Taylor, CGTN, Moscow.