Courtesy of Mish.
The tit-for-tat sanction madness in Europe took a huge leap forward today with new sanctions in the work on Russian energy companies.
Russia responded by threatening to restrict commercial flights over its airspace, by threatening to halt reverse flows of natural gas to Ukraine, and with a threat to reduce gas delivery to Europe.
EU Plans New Sanctions
The Wall Street Journal reports New EU Sanctions to Stop Fundraising by 3 Russian Oil Giants
New European Union sanctions on Russia will expand the number of Russian companies unable to raise money in the bloc’s capital markets to include three state-owned oil companies, according to documents seen by The Wall Street Journal.
The documents show the EU seeking to hit Russian oil companies, but leaving unscathed those involved in gas production and export, which are critical to many European countries’ energy supplies.
Under a modest expansion of sanctions introduced in late July, the three oil companies — Gazpromneft, the oil-production and refining subsidiary of OAO Gazprom, oil transportation company Transneft, and oil giant Rosneft — will be forbidden from raising funds of longer than 30 days’ maturity.
Three companies involved in military production — Oboronprom, United Aircraft Corp., and Uralvagonzavod — will be barred from future EU fundraising. The sanctions will also bar new contracts for services needed for oil exploration and production in deep water, the Arctic or shale-oil projects.
Unacceptable Behavior
EC president José Manuel Barroso commented on the Unacceptable Behavior of Russia.
“We are showing to the Russians this kind of behaviour is not acceptable,” José Manuel Barroso, the European Commission president, said on the sidelines of the Nato summit in Wales. “We believe it’s extremely important to have a firm position in terms of making clear to Russia it should respect international principles.”
Russia immediately responded to the threat of more sanctions with its own views on what is unacceptable behavior.
Airspace Restrictions…
