Tuesday, September 23rd14.2°C
23284
23088

EU sanctions some of Russia's biggest banks, limits capital market access for 5 lenders

BRUSSELS - The European Union on Thursday revealed the details of its broad economic sanctions against Russia, including the names of five major banks which will see their access to the 28-nation bloc's capital market curtailed.

The banks, in which the Russian state holds a majority stake, include the country's largest lender, Sberbank. The others are Gazprombank, VEB, VTB bank and Rosselkhozbank, also known as the Russian Agricultural Bank.

The latest sanctions were announced Tuesday but the names of the targeted firms and other details were only released Thursday. The package of punitive measures also includes an arms embargo and the prohibition to export some oil exploration technology used for deep water drilling, Arctic oil exploration and production, or shale oil projects. Finally, the sanctions also forbid the export of so-called dual use goods, which can be used for military and civilian purposes, whenever they are destined to Russia's military.

The EU is Russia's biggest trading partner.

The sanctions with the most immediate effect are those targeting the banks because they make it harder for Russia's already ailing economy to get access to finance and further spook international investors who fear running afoul of the sanctions regime. The United States also imposed similar sanctions on Russian banks.

The EU beefed up its sanctions against Russia over what it decries as Moscow's meddling in Ukraine after the downing of a Malaysia Airline passenger jet earlier this month over eastern Ukraine, which killed all 298 people aboard. The U.S. and Ukraine say the Boeing 777 was shot down by a missile fired from areas controlled by pro-Russian separatists.

The regulation laying out the new sanctions, which will take effect Friday, said it will be prohibited for EU firms or citizens to "directly or indirectly purchase, sell, provide brokering or assistance in the issuance" of debt instruments by the Russian banks targeted.

The sanctions specifically aim at new debt issuances with a maturity of over 90 days. Russia's state-owned banks last year issued such debt worth 15.8 billion euros ($21 billion), according to EU officials. About half of that, or 7.5 billion euros, was placed on European markets.

___

Follow Juergen Baetz on Twitter at http://www.twitter.com/jbaetz

The Canadian Press


Read more Business News

23392


Recent Trending




Today's Market
S&P TSX15129.00-136.35
S&P CDNX928.09-26.97
DJIA17172.68-107.06
Nasdaq4527.689-52.10
S&P 5001994.29-16.11
CDN Dollar0.9102+0.0045
Gold1226.50+8.60
Oil91.50-0.91
Lumber332.20+5.60
Natural Gas3.945+0.037

 
Okanagan Companies
Pacific Safety0.17+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.27-0.10
Cantex0.04-0.01
Anavex Life Sciences0.2195-0.0035
Metalex Ventures0.05-0.01
Russel Metals35.37-0.38
Copper Mountain Mining2.40-0.26
Colorado Resources0.16-0.005
ReliaBrand Inc0.0206-0.0043
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.27-0.02

 



23475

FEATURED Property
1761161959 Regal Road
5 bedrooms 6 baths
$1,495,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Is this a fair offer from ICBC?

“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...


Disruptive innovation

Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...

_



23448




Member of BC Press Council


22707