EU Adopts New Sanctions Against Russia's Top Oil Companies

September 9, 2014

The European Union formally adopted the new package of sanctions against Russia over its involvement in Ukraine on Monday evening, EU President Herman Van Rompuy said. The EU sanctions would affect Russia's top oil producers and pipeline operators Rosneft, Transneft and Gazprom Neft, which would be put on the list of Russian state-owned firms that will not be allowed to raise capital or borrow on European markets, Reuters reported.

The sanctions, however, would not encompass the gas sector and in particular state-owned Gazprom, the world's biggest gas producer which is also the biggest gas supplier to Europe.

Van Rompuy added that the sanctions will enter into force in the next few days. "The entry into force (of the new sanctions) through the publication in the Official Journal will take place in the next few days. This will leave time for an assessment of the implementation of the ceasefire agreement and the peace plan," Rompuy said in a statement.

"Depending on the situation on the ground, the EU stands ready to review the agreed sanctions in whole or in part," he said.

Earlier, it was reported the EU governments delayed signing off on the sanctions, because some governments wanted to discuss how to suspend the sanctions if a Ukraine cease-fire holds.

Copyright, Reuters, 2014