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Ukraine crisis: EU to slap new sanctions on Russia 'on Friday' Ukraine crisis: New EU sanctions hit Russia on Friday
(about 4 hours later)
The European Union has agreed to impose further sanctions on Russia on Friday over its role in the Ukraine crisis, diplomats say. New EU sanctions against Russia will take effect on Friday, blocking loans for five big state banks and curbing EU business with oil and defence firms.
The move is aimed at maintaining pressure on Russia, the sources said. The aim is to keep pressure on Russia over its role in the Ukraine crisis. But the measures could be eased or lifted if a ceasefire in Ukraine holds.
Russia says it is preparing a response "commensurate with the economic losses" caused by the EU sanctions. Russia says it is preparing a response. One top Russian official said cars imported from the EU could be targeted.
Nato says Russia still has about 1,000 heavily armed troops in eastern Ukraine - where pro-Russian rebels are fighting - and about 20,000 near the border. Nato says Russia still has about 1,000 heavily armed troops in east Ukraine.
The new sanctions are expected to tighten access to Western loans, especially for big Russian state oil companies, and expand a blacklist of Russian officials subject to visa bans and asset freezes. More rebel leaders will also go on that list. The EU and US accuse the Kremlin of directly helping pro-Russian separatists in Ukraine's Donetsk and Luhansk regions by sending regular soldiers across the border, along with sophisticated weapons including tanks. Moscow denies the allegations.
Nato says Russia is still keeping about 20,000 troops near the Ukrainian border, besides those it says are inside Ukraine.
The separatists have recently made big gains in eastern Ukraine. The fighting has killed at least 3,000 people since April.
Blacklisted officials
The new EU sanctions will also add 24 more Russian officials and rebel leaders to a blacklist, subjecting them to visa bans and asset freezes.
"They comprise persons involved in actions against Ukraine's territorial integrity, including the new leadership in Donbass, the government of Crimea as well as Russian decision-makers and oligarchs," said a statement from the EU Council, the grouping of 28 member states' governments.
"This brings the total of persons subject to sanctions to 119 while 23 [Russian] entities remain under asset freeze in the EU," it said.
Russian Foreign Ministry spokesman Alexander Lukashevich called the new sanctions "an absolutely unfriendly step".Russian Foreign Ministry spokesman Alexander Lukashevich called the new sanctions "an absolutely unfriendly step".
The EU decision followed a conference call involving a number of European leaders, including UK Prime Minister David Cameron. Andrei Belousov, an aide to President Vladimir Putin, told Russia's Ria Novosti news agency that Russia might limit imports of cars and light industrial goods from the EU.
The member states struggled to agree on how to factor in the fragile truce between Ukrainian troops and pro-Russian rebels. It took effect on 5 September and appears to be holding despite some sporadic shooting. Russia already has a wide-ranging embargo on food imports from the EU, banning fruit, vegetables, meat, dairy produce and other important foods.
That year-long ban also applies to food from the US, Canada, Australia and Norway, which have imposed sanctions similar to the EU's.
The rouble fell to a new low of 37.57 to the dollar on Thursday, after news about the EU sanctions broke. It also fell against the euro.The rouble fell to a new low of 37.57 to the dollar on Thursday, after news about the EU sanctions broke. It also fell against the euro.
Shaky ceasefire Dual-use goods targeted
Western leaders and Kiev accuse Russia of helping the separatists in eastern Ukraine with regular troops and sophisticated weapons including tanks. Moscow denies the allegations. The latest EU decision followed a conference call involving a number of European leaders, including UK Prime Minister David Cameron.
The separatists have recently made big gains in the eastern Donetsk and Luhansk regions. The fighting has killed at least 3,000 people since April. The member states struggled to agree on how to factor in the fragile truce between Ukrainian troops and pro-Russian rebels.
At urgent talks among 28 member states in Brussels on Wednesday, Germany pressed for the sanctions to put be into effect.At urgent talks among 28 member states in Brussels on Wednesday, Germany pressed for the sanctions to put be into effect.
But other countries said they wanted to wait while the ceasefire continued to hold.But other countries said they wanted to wait while the ceasefire continued to hold.
A spokesman for Mr Cameron said several EU leaders agreed on Thursday that the sanctions should take effect "by the end of the week", according to Reuters. The measures will target Russian oil companies Rosneft and Transneft and the petroleum unit of state gas monopoly Gazprom.
They will be published in the official journal of the EU, which puts them into effect.
The package was finalised last Friday, but its implementation was delayed because of the ceasefire agreed on the same day.
The new sanctions will target Russian oil companies Rosneft and Transneft and the petroleum unit of state gas monopoly Gazprom.
Their access to financial markets will be restricted - a serious matter for Rosneft, which last month asked the Russian government for a $42bn (£25.2bn) loan.Their access to financial markets will be restricted - a serious matter for Rosneft, which last month asked the Russian government for a $42bn (£25.2bn) loan.
The measures also cover dual-use goods which can be used for military purposes, defence equipment and some other sensitive technologies.The measures also cover dual-use goods which can be used for military purposes, defence equipment and some other sensitive technologies.
Russian Prime Minister Dmitry Medvedev has warned that Russia might shut its airspace to European passenger planes, a move that "could drive many struggling airlines into bankruptcy".Russian Prime Minister Dmitry Medvedev has warned that Russia might shut its airspace to European passenger planes, a move that "could drive many struggling airlines into bankruptcy".