EU Sanctions Against Russia Go Into Effect

New EU sanctions against Russia have gone into force, blocking loans for five big state banks and curbing EU business with oil and defence firms.

The aim is to keep pressure on Russia over its role in the Ukraine crisis. But the measures could be eased or lifted if a ceasefire in Ukraine holds.

Russian Foreign Minister Sergei Lavrov accused the EU of “taking a path towards undermining the peace process”.

Nato says Russia still has about 1,000 heavily armed troops in east Ukraine.

The EU sanctions will block the export of services and deep-water technology for Russia’s oil industry.

Three major Russian state oil firms are targeted: Rosneft, Transneft and Gazprom Neft, the oil unit of gas giant Gazprom.

Their access to financial markets will be restricted – a serious matter for Rosneft, which last month asked the Russian government for a $42bn (£25.2bn) loan.

Big Russian state-owned banks will be barred from getting loans with a maturity longer than one month, and from getting other financial services in the EU.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza