Germany warns of financial sanctions on Russia if it doesn't step back

BUDAPEST (Reuters) - Germany assumes that this weekend's referendum in Crimea will be followed by steps to absorb the region into Russia, German Foreign Minister Frank-Walter Steinmeier said on Thursday, and if there is no change in direction the European Union will be forced to consider a further, third stage of sanctions.

Speaking to reporters after meeting counterparts from central Europe, Steinmeier said Russia had so far rebuffed all European proposals to defuse the standoff in Crimea.