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Sanctions are. and russia is plunges in recession. matthew chance is out front. >> reporter: in russia, they're calling it a sugar pack. western sanctions on the country bite, ordinary people have been snacking. they are jostling with each other in the russian city to buy sugar off the back of a truck. good bless you, the voice says, as they push a trolley of sugar to shoppers. they scramble to grab as much as they can before supplies run out. the pub lic not to panic. and a prominent russian economist says not to panic. >> what you are seeing is that soon, we could see a much

So, therefore, the question you were raising about fossil fuels, oil, and energy, europe is connected with russia, and therefore we are working every day to phase out also with regard to our fossil dependency on russia. >> when it comes to that fossil dependency on russia, many european countries simply ignored what she called putin's blackmail when he demanded that russian natural gas should be paid in rubles. it seems those international sanctions are now starting to bite across russia. in many stores, there have been scenes of people and customers scrambling for basic goods like sugar. here...

>> it does seem to be a decisive moment. thank you. >> thank you very much. well, it appears those international sanctions might be across russia. video surfaced showing people scrambling to try and get access to essential foods like sugar. echoing bread lines of the soviet past. >> reporter: in russia they're calling it the sugar panic. western sanctions on the country bite, ordinary people have been snatching up essentials. jostling with each other to buy sugar off the back of the truck. god bless you the voice says. a worker pushes a trolley of sugar towards shoppers.

Civilians or military which is another town retain by russian forces. across the border in russia, sanctions posed by the west are taking a toll on the population. it's not easy now for people to find the essential items they need nor everyday lives from food to medicine. matthew chance takes a look. >> reporter: in russia, they're calling it the sugar panic as western sanctions on the country bite, ordinary people have been snatching up essentials. here jostling with each other in the russian city to buy sugar off the back of a truck. god bless you, the voice said, as a supermarket worker p...

Treasury department just announced a new round of sanctions on russia, targeting russian tech companies, high profile hackers, and networks that enable russia to avoid sanctions. but as cnn's matthew chance reports, vladimir putin continues to shield himself from the sanctions and the russian people are taking the hit. and now most western goods from mcdonald's to life-saving medicine are out of reach in russia. >> reporter: in russia they're calling it the sugar panic as western sanctions on the country bite. ordinary people have been snapping up essentials. they're jostling with each other t...