Gazprom Neft, Transneft and Rosneft will fall under EU sanctions

The three largest Russian companies will go on EU’s “black list”.

They will not be able to borrow assets in the capital market. According to the data in possession of the American Wall Street Journal, three main state-run oil companies will go on the sanctions list: Gazprom Neft, Transneft and Rosneft. They will be banned from taking loans in the EU for longer than 30 days, Lenta.ru reports.

Apart from that, the borrowing term will be shortened down to 30 days for five state-run banks, which are currently banned from working with European loan instruments with the payback period of over 90 days. This refers to the credit institutions, against which the EU introduced sanctions in late July. These are Sberbank, Rosselkhozbank, Gazprombank, Vnesheconombank and VTB.

Apart from that such defense sector companies will be banned from borrowing assets from EU financial markets as Oboronprom, United Aviation Construction Corporation and Uralvagonzavod.

The sanctions also foresee prohibition of concluding new contracts in the sphere of services for deep-sea prospecting and oil production, Arctic projects as well as projects in shale oil production.

Additionally, the restrictions being introduced foresee a ban on selling double-purpose technologies to nine Russian companies, providing services to Russian military. The respective list includes the producer of electronic optical equipment Sirius JSC, machine building company Stankoinstrument JSC as well as small arms producer Kalashnikov JSC.

The newspaper points out that Russian oil companies fall under sanctions, however the producers and exporters of natural gas, which supply energy resources to many European countries, remain left out. Also certain easing of restrictions remains in regards to the exports for the purposes of Russian space industry and civic nuclear energy.

Earlier the European Union agreed on new sanctions against Russia, but postponed their adoption until Monday 8 September. It is assumed that the decision on the sanctions will be adopted with the consideration of how the cease-fire agreement is observed, as well as Russia’s policy toward Ukraine. The chairman of the European Council Herman van Rompuy stated on Sunday, 7 September, that the European Union was “ready to reconsider” the decision on introducing new sanctions against Russia, in case the cease-fire was observed in Ukraine between the separatists and authorities in Kyiv.

Apart from that, it came out that Russian officials, oligarchs as well as representatives of Crimea leadership and self-proclaimed Donetsk and Luhansk people’s republics will be included into the expanded “black list” of the European Union.