ECB's Weidmann says sanctions would put brake on Russian economy

BERLIN (Reuters) - Sanctions against Moscow over its annexation of Crimea would compound the impact on the Russian economy after already massive capital outflows, the president of the German central bank said on Tuesday. "The escalation of the conflict has resulted in massive capital outflows, to a significant fall in value of the ruble and to a rise in financing costs and therefore a negative impact on confidence," Jens Weidmann told an audience in Berlin. "All that should put a brake on Russia's economy that would naturally be reinforced by possible economic sanctions," said Weidman, who is also a member of the European Central Bank's governing council. He also cautioned about risks were the European Central Bank to embark on a program of quantitative easing, where a central bank buys assets, such as loans, from banks. "With all unconventional measures, we would be entering uncharted territory," he told an audience in Berlin. "In so doing, one poses the question as to the effectiveness of such measures and the risks and side effects that go with them," he said. He said that ECB policymakers must respect the mandate of the central bank. (Reporting by Annika Breidthardt; writing by John O'Donnell; editing by Eva Taylor)