E.U. tightens sanctions against Russian banks, defense companies and individuals
E.U. tightens sanctions against Russian banks, defense companies and individuals
(about 4 hours later)
MOSCOW — The European Union announced stricter sanctions against Russia on Thursday in response to that country’s recent involvement in the Ukraine crisis, taking aim at Russia’s energy sector, as well as its vital financial and defense industries.
MOSCOW — The United States and the European Union announced stricter sanctions against Russia on Thursday, ratcheting up pressure against the country for its involvement in the Ukraine crisis as government and separatist forces on the ground struggle to maintain a tenuous, Kremlin-endorsed cease-fire.
The sanctions, which will take effect Friday after being published in the European Union’s official journal, also expand a growing blacklist of Russian individuals and companies.
The sanctions, which go into effect Friday, take aim at Russia’s energy sector and further constrict the country’s vital financial and defense industries’ access to global markets and resources. They strengthen measures that the United States and the E.U. instituted in late July to target key engines of the Russian economy after the downing of Malaysia Airlines Flight 17 over eastern Ukraine.
The measures come as Ukraine is struggling to sustain a tenuous cease-fire, struck between government troops and rebels and endorsed by the Kremlin last week. European Council President Herman Van Rompuy stressed Thursday that the E.U. sanctions could be reversed “if the situation on the ground so warrants,” after a review of the peace plan’s progress, and Russia’s compliance with it, that is expected in late September.
Western leaders threatened to step up sanctions in recent weeks after Russia was accused of sending military vehicles, weapons and troops into Ukraine to bolster separatist forces fighting the Ukrainian army in the eastern regions. Russian leaders have denied the accusation.
In the meantime, on the list of sanctions that will take effect Friday is a blanket ban on services for deepwater and Arctic oil exploration and production, and all shale oil projects in the Russian Federation. That includes a moratorium on drilling, well testing and logging.
But the United States and the E.U. stressed that they stand ready to reduce or even undo the sanctions if Russia shows it is committed to the peace process in Ukraine and the continued implementation of a cease-fire agreement, struck last week in Belarus.
The sanctions also make it more difficult for Russia to access European capital markets, by reducing the maximum maturity of new loans and credits to Russian banks and businesses from 90 days to 30 days.
“We have yet to see conclusive evidence that Russia has ceased its efforts to destabilize Ukraine,” President Obama said in a statement announcing the new sanctions. “As I said last week, if Russia fully implements its commitments, these sanctions can be rolled back. If, instead, Russia continues its aggressive actions and violations of international law, the costs will continue to rise.”
In addition, the European Union will add five major Russian state-owned banks, three Russian defense companies and three Russian energy companies to the list of entities banned from financing. Nine other companies utilizing or specializing in mixed-use defense technologies will be barred from receiving dual-use goods from the bloc.
The U.S. sanctions, which will be detailed Friday, are expected to reinforce Europe’s measures.
The European Union also plans to publish a list of 24 people involved in actions “against Ukraine’s territorial integrity,” including members of the new leadership in eastern Ukraine, who will be subject to travel bans and the freezing of assets. As of Friday, the bloc will have sanctioned 119 people and frozen the assets of 23 entities.
The E.U.’s list of actions includes a blanket ban on services for deep-water and Arctic oil exploration and production, as well as for all shale oil projects in the Russian Federation. The sanctions also reduce Russian access to European capital markets by cutting from 90 days to 30 days the maximum maturity period of new loans and credits that Russian banks and businesses can obtain.
A spokesman for Russia’s Foreign Ministry told Russian journalists Thursday that early reports of the sanctions were an “unfriendly” step, and warned that Russia will respond to sanctions in a manner “commensurate with the damage” they cause to the Russian economy.
The E.U. also is adding five major state-owned banks, three defense companies and three energy companies to the list of Russian entities banned from obtaining financing in the European Union. The E.U. also plans to publish a list of 24 people involved in actions “against Ukraine’s territorial integrity,” bringing to 119 the number of individuals subject to travel bans and asset freezes.
The European Union threatened to raise sanctions against Russia in recent weeks, after European leaders accused Russia of sending military vehicles, weapons and troops to eastern Ukraine to bolster the pro-Russian separatists fighting the Ukrainian army. Last week, Ukraine and the separatists agreed to a cease-fire endorsed by the Kremlin that is still officially in force, but which many doubt will last.
Russia’s Foreign Ministry responded to the sanctions announcement by saying the E.U. “actually made a choice against the peaceful settlement of the Ukrainian domestic crisis.” Russian officials also warned that they would respond to the “new anti-Russian sanctions” in equal measure.
European leaders, however, did not scrap plans to discuss sanctions in light of the cease-fire.
A report Thursday by the Russian state news service RIA Novosti cited an aide to President Vladimir Putin as suggesting that Russia’s response would include measures against nonagricultural commercial imports including cars — especially used cars — and textile products.
The measures are in large part a continuation of sanctions that the European Union passed in late July. Russia responded to that round of sanctions with a moratorium on imports of produce, meat, dairy and fish from the European Union, as well as the United States, Norway, Canada and Australia, countries that also had passed sanctions against Russia because of its involvement in the Ukraine crisis.
A report Thursday in the Russian state news service RIA Novosti cited an aide to President Vladimir Putin suggesting that Russia’s response to sanctions would include measures against non-agricultural commercial imports, including cars — especially used cars — and textile products.
On Wednesday, Ukrainian President Petro Poroshenko said that Russia had pulled back about 70 percent of its troops from Ukrainian territory. On Thursday, NATO officials told various news outlets that Russia still had about 1,000 troops in Ukraine. Russian officials have denied reports that their military was ever operating in Ukraine.
Col. Andriy Lysenko, a Ukrainian military spokesman, presented a map Thursday showing that a larger portion of Ukraine’s territory had come under the influence of the rebels than Kiev had suggested, including an area near the Sea of Azov, an extension of the Black Sea. Lysenko said that the new demarcation was a reflection of how far the rebels could fire into Ukraine, and not necessarily a signal that they were in full control of the territory.
