Ukrainian Prime Minister Arseniy Yatsenyuk said Russian President Vladimir Putin is seeking to restore the Soviet Union, while Kiev’s central bank chief predicted her country’s battle-ravaged economy may shrink as much as 10 percent this year.

The U.S. yesterday expanded sanctions against Russia to include the country’s largest bank, OAO Sberbank, because of the fighting in eastern Ukraine. The European Union added 15 companies, including Gazprom Neft, OAO Rosneft and Transneft, and 24 people to its own list of those affected by its restrictions.

Russia is locked in a standoff with its former Cold War adversaries over the armed conflict that has claimed more than 3,000 lives. Putin has denied supporting pro-Russian rebels in war-torn eastern Ukraine, where a fragile cease-fire has been largely holding with continued fighting in some areas.

“Putin cannot cope with the idea that Ukraine will be part of the European family,” Yatsenyuk said at a conference in Kiev today. “He wants to restore the Soviet Union.”

Putin’s goal is to “take the entire Ukraine” while Russia poses a threat to the global order, Yatsenyuk told the Yalta European Strategy Annual Meeting.

‘Drastic Deterioration’

Central bank chief Valeriya Gontareva said the official support program from the International Monetary Fund envisages a 6.5 percent shrinkage in Ukraine’s gross domestic product this year. She said the “really drastic deterioration of economic conditions” will cause a revision showing an even larger economic contraction.

“I suppose that it will be minus 9 percent, or even 10 percent,” she told reporters on the sidelines of the conference. The Washington-based IMF has approved a $17 billion bailout loan to help Ukraine stay afloat.

She predicted that trade with Russia will drop 35 percent this year.

A second Russian convoy of 220 vehicles entered Ukraine, the Organization for Security and Cooperation in Europe said in an e-mailed statement today. All vehicles crossed into Ukraine without being inspected by Ukrainian border guards, customs officers or the International Committee of the Red Cross, according to the OSCE. The OSCE cited Russian officials as saying the convoy is carrying only food products.

Airport Shelled

The Donetsk airport was shelled in the past 24 hours from east and south, in violation of the truce that took effect on Sept. 5, Ukraine military spokesman Andriy Lysenko told reporters in Kiev today. In addition, militants of the self- proclaimed Donetsk People’s Republic were using guns and mortar to try to break through Ukrainian troop lines near Panteleymonivka north of Donetsk, the Ukrainian military press center said in a statement on its Facebook page.

Russian Foreign Minister Sergei Lavrov said his country wants Ukraine to be a “neutral, friendly” neighbor, according to the transcript of a television interview released by the ministry in Moscow.

“We are ready to listen to Russian concerns but we will not abdicate our principles and values,” European Commission President Jose Barroso said in Kiev yesterday. “We need to send a clear signal to Russia that its behavior has costs.”

President Barack Obama said the U.S. sanctions can be rolled back if Russia “fully implements its commitments” to seek peace in eastern Ukraine.

‘Heavy Price’

Putin, talking to reporters in the Tajik capital of Dushanbe, said Russia will hold off on retaliation for now and has no plans to “close itself off.”

The expanded U.S. sanctions also include Russian energy companies as well as five state-owned defense and technology companies.

“Russia’s economic and diplomatic isolation will continue to grow as long as its actions do not live up to its words,” U.S. Treasury Secretary Jacob J. Lew said in a statement yesterday. “Russia’s economy is already paying a heavy price for its unlawful behavior.”

The Treasury Department imposed sanctions that prohibit transactions in, provision of financing for, or other dealings in new debt of greater than 90 days maturity issued by OAO Gazprom Neft and OAO Transneft. For banks, the debt financing restriction now covers maturities greater than 30 days, instead of 90 days previously.