EU and US Russian sanctions
The US introduced sanctions targeted specifically at dozens of companies, including Rosneft (the major oil producer), Gazprombank (Russia’s third-largest bank) and Kalashnikov, the gun maker. “If Russia continues on this current path, the costs on Russia will continue to grow,” President Obama stated.
Three large banks – VTB Bank OAO, Bank of Moscow and the Russian Agricultural Bank – were cut off from the US economy.
New sanctions, will be officially published by Thursday night when they go into effect. Key sectors targeted are: finance, defense and energy. Russia’s state-owned banks would be prevented from issuing stock or bonds in Europe, and arms deals (except the first of two €1.2bn French-built Mistral helicopter carrier ships, which has already been half-built and will be exempt).
Certain technologies related to the energy industry will require specific prior authorization.
Export permits will not be given for exploration or production equipment for deep-water or Arctic drilling or for shale oil projects in Russia.
According to news reports the EU agreed to deny Russian state-owned banks access to European capital markets. Under the agreed sanctions, Europeans will not be permitted to buy debt, equity or other financial instruments with a maturity higher than 90 days in Russian state-owned banks or their subsidiaries. Brokering or other services linked to any such transactions will also banned.
BP warned that sanctions might hit its profits (It owns a fifth of Rosneft,). Share prices of other London-listed companies operating in Russia have fallen.