EU agrees to additional sanctions on Russia

|By:, SA News Editor

The EU agrees to implement new sanctions on broad sectors of the Russian economy, in an escalation of Europe's response to allegations that Russia is fueling violent conflict in eastern Ukraine; the U.S. is expected to follow suit.

The measures target four economic sectors: finance, dual-use equipment that could have military applications, arms and oil production equipment.

Their intent is to restrict the ability of Russia's state-owned banks from raising financing on European markets; the measures also will place an embargo on the arms trade and set restrictions on exports of militarily sensitive goods as well as equipment to modernize oil drilling and exploration.

An indirect consequence of added sanctions is the potential legal risk presented by dealing with Russian companies while sanctions are in place, particularly for big companies and investors; though the sanctions are not supposed to affect existing contracts, European companies could be wary of delivering goods and services under their terms.