22:41 GMT +3 hours29 July 2016
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EU Confirms New Economic Sanctions Against Moscow

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The European Union agreed on Tuesday a new set of economic sanctions against Russia over the Ukrainian crisis, a joint communique by EU leaders said.

BRUSSELS, July 29 (RIA Novosti) - The European Union agreed on Tuesday a new set of economic sanctions against Russia over the Ukrainian crisis, a joint communique by EU leaders said.

“Today the European Union has agreed a package of significant additional restrictive measures targeting sectoral cooperation and exchanges with the Russian Federation,” a statement by the President of the European Council Herman Van Rompuy and the President of the European Commission Jose Manuel Barroso said.

“These decisions will limit access to EU capital markets for Russian State-owned financial institutions, impose an embargo on trade in arms, establish an export ban for dual use goods for military end users, and curtail Russian access to sensitive technologies particularly in the field of the oil sector,” the document said.

The Council's Committee of Permanent Representatives (Coreper) reached Tuesday an agreement on EU restrictive measures “ in view of Russia's actions destabilizing the situation in eastern Ukraine.”

In a move to restrict Russia's access to EU capital markets, new sanctions ban EU nationals and companies to buy or sell new bonds, equity or similar financial instruments with a maturity exceeding 90 days, issued by state-owned Russian banks, development banks, their subsidiaries and those acting on their behalf.

Services related to issuing such financial tools, including brokering, are also prohibited. In addition, the EU ambassadors have agreed on an embargo on the import and export of arms and related material from/to Russia. It covers all items on the EU common military list.

Coreper also reached agreement on "banning exports of dual use goods and technology for military use in Russia or to Russian military end-users."

Exports of “certain energy-related equipment and technology to Russia” are to become subject to prior authorization by competent authorities of member states.

“Export licenses will be denied if products are destined for deep water oil exploration and production, arctic oil exploration or production and shale oil projects in Russia,” the document says.

In the joint communique, the EU leaders said Moscow will find itself increasingly isolated by its actions. However, the EU could reverse its decision if Russia “starts contributing actively and without ambiguities to finding a solution to the Ukrainian crisis.”

New economic sanctions on Russia will be enforced for one year, a high-ranking EU official told reporters on condition of anonymity.

“The sanctions will be in effect for 12 months, their effectiveness and consequences will be monitored and are subject to change in light of changes in the political situation or for procedural reasons,” the source said.

These restrictions will due to be formally adopted by the Council through a written procedure. They will apply from the day after their publication in the EU Official Journal, which is scheduled for late on July 31, the communique said.

The new package reinforces the recently expanded listing of persons and entities already subject to EU sanctions.

The United States and the European Union earlier imposed targeted sanctions against a number of Russian officials and companies as a response to Crimea’s reunification with Russia. After the Malaysia Airlines flight MH17 crash in eastern Ukraine, Washington has been pushing the EU to implement further sanctions against Moscow.

Russia’s envoy to the European Union Vladimir Chizhov said last week that the sanctions were «a road to nowhere» and Prime Minister Dmitry Medvedev said such actions toward Russia were a way to conceal protectionist measures in the interests of certain companies.

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sanctions, European Union, Herman Van Rompuy, Jose Manuel Barroso
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