MOSCOW - The Kremlin on Wednesday played down the impact of sanctions imposed by the United States and the European Union over Moscow's treatment of opposition politician Alexei Navalny, but said it would retaliate with reciprocal measures.

In President Joe Biden's most direct challenge yet to the Kremlin, the United States on Tuesday imposed sanctions to punish Russia for what it described as Moscow's attempt to poison Navalny with a nerve agent last year.