Brussels, 12/09/2014 (Agence Europe) - The new sanctions against Russia entered into force on 12 September - including measures targeting oil groups Gazprom Neft, Rosneft and Transneft. The financing of these three energy companies' debt, and that of defence sector companies OPK Oboronprom, United Aircraft Corporation and Uralvagonzavod, by EU nationals and companies is now prohibited. This includes trade in their bonds and equity with a maturity exceeding 30 days. In addition, Europeans can no longer provide loans to five big Russian state-owned banks - Sberbank, VTB Bank, Gazprombank, Vnesheconombank (VEB) and Rosselkhozbank - which previously had sanctions taken out against them at the end of July. Trade in new bonds, equity or similar financial instruments with a maturity exceeding 30 days, issued by these five banks, is now prohibited. Providing services related to the issuing of the above financial instruments, such as brokering, is also included in the prohibition.
It is now forbidden to supply, directly or indirectly, certain services necessary for deep water oil exploration and production, Arctic oil exploration or production and shale oil projects in Russia for contracts concluded from 12 September. Drilling, well testing and logging services, and the supply of floating units are also concerned. The ban on exporting dual use goods and technology for military use in Russia has been extended also to include a list of nine mixed defence companies that must not receive dual use goods from the EU.
In addition, 24 people associated with actions conducted against the territorial integrity of Ukraine will be subject to an assets freeze and will be forbidden visas for the EU. Thus the so-called prime minister of the Donetsk People's Republic - Alexander Zakharchennko, his defence minister - Vladimir Kononov, his state security minister - Andrey Pinchuk, his internal affairs minister - Oleg Bereza, his deputy minister for social issues - Aleksandr Karaman, and the Moscow representative of the Donetsk People's Republic - Andrei Rodkin have now had sanctions taken out against them. The so-called prime minister of the Lugansk People's Republic - Gennadiy Tsypkalov, the commander of the Donbass People's Militia - Miroslav Rudenko, the so-called first deputy prime minister of Crimea - Mikhail Sheremet, and his deputy prime minister and plenipotentiary representative of Crimea to Russia's President Vladimir Putin - Georgiy Muradov are also subject to a visa ban and assets freeze.
The deputy speakers of the Russian Duma - Vladimir Vasilyev, Nikolai Levichev and Igor Lebdev, the first deputy speaker of the Duma - Ivan Melnikov, the chairman of the union of the Russian and foreign Cossack forces, and deputy of the Duma - Viktor Vodolatsky, the first deputy chairpersons of the committee on foreign affairs of the Duma - Leonid Kalashnikov and Svetlana Zhurova, the first deputy chairpersons of the committee on relations with the CIS countries, Eurasian integration and links with compatriots of the Duma - Vladimir Nikitin and Oleg Lebedev, and Duma deputy and businessman - Alexander Babakov are also subject to sanctions. Among other things, they voted in favour of the draft law “on the acceptance into the Russian Federation of the Republic of Crimea and the formation within the Russian Federation of new federal subjects - the Republic of Crimea, and the city of federal status of Sevastopol”.
Lastly, close associates of Putin - Sergey Chemezov (who chairs the Rostec conglomerate), Vladimir Zhirinovsky (leader of the LDPR party and member of the Council of the Duma), Yuri Vorobiov (deputy speaker of the Federation Council of Russia) and Aleksey Naumets (major-general of the Russian army) - are also subject to an assets freeze and visa ban.
The legal basis of the European regulation has also been extended to be able to impose sanctions (an assets freeze and visa ban) on “natural or legal persons, entities or bodies conducting transactions with the separatist groups in the Donbass region of Ukraine”.
“All measures will be reviewed by 31 October”, said a European source.
On 12 September, the USA also announced new sanctions against Russia. “We will deepen and broaden sanctions in Russia's financial, energy, and defence sectors. These measures will increase Russia's political isolation as well as the economic costs to Russia, especially in areas of importance to President Putin and those close to him”, US President Barack Obama stated.
Russia threatens retaliation. In the view of Russia's Minister for Foreign Affairs Sergei Lavrov, the new European sanctions damage the peace process in Ukraine. “We believe that taking such decisions at a time when the peace process in Ukraine is stabilising, as we want, is to choose to damage the peace process”, he said. “Russia will respond calmly and appropriately, but based especially on the need to protect [its] interests in the face of European sanctions”, he said (our translation). On Thursday, before the announcement on the publication of the sanctions, Moscow had stated that it was working on new retaliatory measures against the countries that take sanctions against it - in particular, restrictions to imports of some cars and light industry products. (CG)