EU Approves Sectoral Sanctions Against Russia

Itar-Tass reports that the European Union has approved new sanctions against Russia which will affect some sectors of the country’s economy. The sanctions are expected to become effective July 31.

According to an EU official, the EU is imposing a temporary ban on striking new defense contracts with Russia. The EU will also ban deliveries to Russia of military and dual use products.

The EU’s permanent representatives approved the European Commission’s proposal to close access for Russia’s state banks to financial markets in the EU member states. Additionally, the EU will also ban Russian state credit institutions from selling euro-denominated securities and issuing shares for shareholders in the EU

The new sanctions also envision restrictions for oil industry equipment exports to Russia. The EU’s sectoral sanctions may be revised in three months.

President of the European Commission Herman Van Rompuy said in a statement “the package of new restrictive measures agreed today by the European Union constitutes a powerful signal to the leaders of the Russian Federation: destabilising Ukraine, or any other Eastern European neighbouring State, will bring heavy costs to its economy”.

Earlier, the U.S. and EU imposed additional sanctions on Russia. The list included several Russian officials and representatives of the self-proclaimed People’s Republic of Donetsk. The sanctions mainly affected companies,  particularly industrial and petroleum ones. The list of sanctioned companies and organizations was expanded with Vnesheconombank, Gazprombank, Rosneft, Basalt, Feodosia Oil Company, Concern of Electronic Technologies KRET, company Constellation, NPO Engineering, Concern Almaz-Antey, Kalashnikov, Instrument Design Bureau, Uralvagonzavod, JSC Novatek, Donetsk and Luhansk People’s Republics.

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