TOGHER ON RUSSIA
European Union slaps more sanctions on Russia for its Ukraine role, focusing on oil and exports of high technology.
BRUSSELS — The European Union on Thursday slapped more sanctions on Russia for helping separatists destabilize Ukraine, limiting Russia’s access to its financial market, hitting the country’s vital oil industry, curbing hightech exports and targeting more officials with travel bans and asset freezes.
Many EU members had been loath to increase the sanctions for fear of jeopardizing their close trade relationships with Moscow. But a compromise struck in a video conference call among top EU leaders broke a deadlock that had paralyzed the 28-nation bloc from taking tougher action over the past 10 days.
Under the compromise hashed out by leaders including Britain’s Prime Minister David Cameron, Germany’s Angela Merkel and France’s Francois Hollande, the sanctions could be reversed within weeks if the cease-fire in eastern Ukraine holds.
In Washington, President Barack Obama announced the U. S. is also moving ahead with tougher economic sanctions on Russia that will affect the country’s financial, energy and defense sectors.
If Russia follows through with its commitments to help end the crisis in Ukraine, the sanctions can be rolled back, Obama said. Otherwise, the U. S. and the EU said the sanctions would be increased further.
The EU sanctions will take effect Friday following their publication in the EU’s official journal, the bloc said in a statement.
The Russian stock market sank at the news, with benchmark MICEX down 1.3 percent. The Russian ruble fell to an all-time low of 37.53 against the U.S. dollar.
In a sharp rebuke, Russia’s Foreign Ministry said by adopting further sanctions the EU “has effectively made a choice against a peaceful settlement of the crisis in Ukraine.”
“Such steps look particularly improper and short-sighted now when a fragile peace process in Ukraine has gotten under way, a prisoner exchange has started,” the ministry said, adding that Russia will respond to the new sanctions.