Russian President Vladimir Putin has signed into law legislation to counter sanctions from the US and its allies. It gives the president the power to sever ties with unfriendly countries and ban trade with them. The bill was in response to Washington's latest economic penalties against Moscow two months ago. Russia has promised to retaliate immediately. Lucy Taylor has the details.

This new law doesn't mean that Russia will impose new counter-sanctions against the US immediately. But it does give President Vladimir Putin the power to block imports and exports or sever ties with unfriendly countries in the future.

It was first discussed in parliament shortly after the US imposed sanctions against Russian businessmen, their companies, and government officials, back in April.

The law has been somewhat watered down since it was first debated - it originally listed specific categories of goods and services that could be restricted, ranging from food and alcohol to consulting services. And there was a second part suggesting that it should be made a crime for Russian citizens to comply with US sanctions against Russia. But there were protests from businesses here that argued such measures would hurt them.

And President Putin had promised that any retaliation against sanctions would not damage the Russian economy or partners that wish to do business in Russia.

Lucy Taylor, CGTN in Moscow.