Russia reacted furiously on Friday to the removal of a Soviet war monument from Estonia's capital and analysts predicted a long-running "cold war" between the neighbours.
Russian Foreign Minister Sergei Lavrov voiced disgust at the removal of the Bronze Soldier memorial from central Tallinn, which followed the death of one person in rioting.
The lower house of parliament urged a ban on entry to Russia of the politicians involved in the removal.
"We think this is a terrible situation," Lavrov said in Oslo, describing the monument to Soviet Red Army soldiers as "sacred".
The Estonian government "spat on those things," he said, adding that it was the Estonian side that "chose to make relations abnormal".
The Duma, Russia's lower house of parliament, unanimously passed a resolution calling for the withdrawal of Russia's ambassador from Tallinn and the imposition of transport, energy and financial sanctions against Estonia.
Dozens of members of two pro-Kremlin youth groups held a rally outside the Estonian embassy and waved placards reading: "Hitler is Estonia's Idol," "Shame!" and "Fascists!"
On Thursday, demonstrations in Tallinn against the removal of the 2.5-metre (eight-foot) high statue turned into a riot in which one person was stabbed to death.
Afterwards, the statue was removed "to prevent further similar gross violations of public order," Estonia's government said.
The removal looked likely to inflame tensions between Russia and its small Baltic neighbour, which broke from Soviet rule in 1991 and is now part of the NATO military alliance and the European Union.
Russia considers the statue a symbol of the fight against Nazism in World War II and the huge losses this country suffered.
Veterans groups believe the remains of Soviet soldiers may lie under the spot where the statue stood.
But ethnic Estonians see the statue as a painful reminder of their country's occupation by the Soviet Union for nearly 50 years after the war.
Estonian politicians behind the removal have argued that any soldiers remains should be reburied in a dedicated cemetery.
Earlier Russia's First Deputy Prime Minister Sergei Ivanov urged Russians to avoid holidaying in Estonia and purchasing Estonian goods.
And in a state of the nation speech on Thursday President Vladimir Putin called for speedier development of Russian ports so as to reduce dependence on neighbours such as Estonia.
Putin also alluded to long-standing Russian discontent at the failure of new NATO members Estonia, Latvia and Lithuania, to sign up to Cold War-era treaty on limiting conventional arms in Europe, the Conventional Forces in Europe (CFE) treaty.
The statue's removal together with the unrest that preceded it bode ill for future relations, said Fyodor Lukyanov, editor of the journal Russia in Global Affairs.
He predicted "a long period of cold war" with Estonia and criticized Estonian politicians for making the statue an issue at elections.
But any Russian effort to pressure Tallinn with economic sanctions was likely to be ineffective due to the protection Estonia had gained from its European Union membership, he added.
"It will be a very bad period between Russia and Estonia but I don't see any bigger way for Russia to punish Tallinn," Lukyanov said.
Another analyst, Viktor Kremenyuk of the Moscow-based USA-Canada Institute, said problems with Estonia were part of wider tensions around the Baltic Sea, mainly over Russia's increasing energy exports through the region.
Several of the formerly Communist-ruled central European countries are worried about Russian plans to build a gas pipeline under the sea directly to Germany. That could leave them vulnerable to shut-downs of traditional supply routes from energy-rich Russia.
"The Baltic area is terribly sensitive to any increase in navigation and transportation," said Kremenyuk.
"There is an increase in tensions in relations with Estonia, already spelt out by the president in his message that we should increase our own channels for trade," said Kremenyuk.