BRUSSELS--The European Union extended its sanctions on Russia
and rebels in eastern Ukraine on Friday, adding 15 companies and 24
individuals to its blacklist and imposing new measures against the
country's oil and defense sectors, in an effort to target those
dealing with the separatists.
The measures, initially approved on Monday, reinforced steps
taken in July restricting trade, commerce and financial links with
Russia. They will indirectly affect companies including Exxon Mobil
Corp., which works with state-controlled oil companies in
Russia.
Under the widened sanctions list, it is "prohibited to directly
or indirectly purchase, sell, provide investment services for or
assistance in the issuance of, or otherwise deal with transferable
securities and money-market instruments with a maturity exceeding
30 days."
As previously reported in The Wall Street Journal, three
state-controlled oil companies--OAO Gazpromneft, the oil unit of
OAO Gazprom; oil pipeline operator company OAO Transneft; and oil
giant OAO Rosneft--are effectively forbidden from raising funds of
longer than 30 days" maturity in European capital markets. Three
defense companies are also targeted by the financial sanctions.
They include United Aircraft Corporation--the parent company of the
manufacturer of MiG and Sukhoi fighter jets--and Uralvagonzavod,
which makes tanks.
Companies and individuals are also prohibited "to sell, supply,
transfer or export, directly or indirectly, dual-use goods and
technology" from nine Russian companies, including small-arms
manufacturer JSC Kalashnikov, ammunition manufacturer NPK
Technologii Maschinostrojenija, and state-owned companies OAO Almaz
Antey and OAO NPO Bazalt.
U.S. President Barack Obama said the U.S. would join in a
coordinated action, raising pressure on Moscow even as a cease-fire
appears to be taking hold in eastern Ukraine. The EU and the U.S.
also indicated the sanctions could be rolled back later if Russian
President Vladimir Putin abides by commitments to seek a negotiated
settlement to the conflict between the Ukrainian government and
pro-Russia separatists.
The EU is also imposing a travel ban and asset freeze on another
24 individuals, including people linked to the rebels and Russian
officials and oligarchs, and Russian lawmakers. The list includes
Sergei Chemezov, one of Mr. Putin's known close associates and the
chair of the Rostec conglomerate, the leading Russian
state-controlled defense and industrial manufacturing
corporation.
Russian lawmaker, former presidential candidate and firebrand
ultranationalist lawmaker Vladimir Zhirinovsky was also on the
list.
Write to Frances Robinson at frances.robinson@wsj.com and
Laurence Norman at laurence.norman@wsj.com
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