Obama says Putin on doomed drive to recreate Soviet glories

KRUEN, Germany (Reuters) - U.S. President Barack Obama accused President Vladimir Putin of wrecking Russia's economy in a doomed drive to recreate the glories of the Soviet empire and G7 leaders said they could step up sanctions against Moscow if violence in Ukraine escalated.

At the conclusion of a Group of Seven summit in the Bavarian Alps, leaders expressed concern about an upsurge in fighting in eastern Ukraine, where Russian-backed separatists have clashed with Kiev's troops in violation of a ceasefire agreed in April.