The FINANCIAL — The Council of the European Union officially adopted the EU’s restrictive measures against Russia, in view of its actions destabilising the situation in eastern Ukraine. The decision gives legal value to an agreement reached on Tuesday and announced by European Council President Herman Van Rompuy and Commission President José Manuel Barroso, according to EU Neighbourhood Info.
In order to restrict Russia’s access to EU capital markets, EU nationals and companies may no more buy or sell new bonds, equity or similar financial instruments with a maturity exceeding 90 days, issued by major state-owned Russian banks, development banks, their subsidiaries and those acting on their behalf. Services related to the issuing of such financial instruments, e.g. brokering, are also prohibited, according to EU Neighbourhood Info.
In addition, an embargo on the import and export of arms and related material from/to Russia was imposed. It covers all items on the EU common military list. Exports of dual use goods and technology for military use in Russia or to Russian military end-users will also be prohibited, with all items in the EU list of dual use goods included.
Finally, exports of certain energy-related equipment and technology to Russia will be subject to prior authorisation by competent authorities of Member States. Export licences will be denied if products are destined for deep water oil exploration and production, arctic oil exploration or production and shale oil projects in Russia.
The measures will apply to new contracts. The legal texts will be published in the EU Official Journal later on today so that the above restrictions will enter into force tomorrow, according to EU Neighbourhood Info.
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