BRUSSELS--New European Union sanctions on Russia to be
implemented this week will expand the number of Russian companies
unable to raise new money in the bloc's capital markets to include
three major state-owned oil companies, according to documents seen
by The Wall Street Journal.
Under a modest expansion of sanctions introduced in late July,
the three oil companies-- Gazpromneft, the oil-production and
refining subsidiary of OAO Gazprom, oil transportation company
Transneft, and oil giant Rosneft--will be forbidden from raising
funds of longer than 30 days" maturity.
Five state-controlled banks, including Sberbank and VTB Bank,
already barred from raising funds for longer than 90 days under the
July sanctions, will also have the maximum maturity cut to 30
days.
The new sanctions were agreed on Friday, and are expected to
implemented Tuesday.
They include for the first time a ban preventing the named
companies from raising new bank loans in the EU of longer than 30
days" maturity.
Three companies involved in military production--Oboronprom,
United Aircraft Corp. and Uralvagonzavod--will also be barred from
future EU fundraising.
The new sanctions will also bar new contracts for services
needed for oil exploration and production in deep water, the Arctic
or shale-oil projects.
The restrictions will bar sales from the EU of so-called
dual-use technologies--meaning they have both civil and military
applications--to nine Russian companies providing services to the
Russian military. The list includes electronic-optics company JSC
Sirius, mechanical engineering company OJSC Stankoinstrument, and
the small-arms manufacturer JSC Kalashnikov.
European leaders said late last week the new measures could be
lifted if there was clear evidence that Moscow was helping forge a
genuine political solution in Ukraine.
According to an EU spokeswoman, that evidence would need to
include permanent monitoring of the Russia-Ukrainian border, the
withdrawal of illegal armed groups from Ukraine and of Russian
forces illegally operating on Ukrainian territory.
On Sunday, fighting in two Ukrainian cities called into question
a cease-fire agreed to on Friday.
The documents show the EU seeking to hit Russian oil companies,
but leaving unscathed those involved in gas production and export,
which are critical to many European countries" energy supplies.
They also make some exceptions for exports destined for the
Russian space and civilian nuclear industries.
Write to Laurence Norman at laurence.norman@wsj.com and Stephen
Fidler at stephen.fidler@wsj.com
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