EU prolongs Russian sanctions for six months

By bne IntelliNews December 22, 2015

The European Council has formally prolonged the sanctions against Russian companies, banks, and nationals for another six months until July 31, 2016, the Brussels-based body said on December 21, three days after the EU members state ambassadors agreed on the move.

The decision is conditioned by the implementation of the Minsk II agreements between Russia and Ukraine and the view that the agreements will not be complied with by the end of 2015.

The prolongation of the sanctions in place since July 2015 and most notably limiting access to capital markets and restricting access to hydrocarbon extraction technologies was expected by analysts and Russian officials.

The press secretary of Russian Prime Minister Dmitry Medvedev, Natalia Timakova, said Russia was not intending to expand the retaliatory food imports embargo against EU in response to the prolongation. The embargo was introduced in August 2014 and will remain in effect until August 2016.

Meanwhile, the Ministry of Foreign Affairs in Moscow issued a statement saying that it sees no grounds for tying the sanctions to the implementation of the internationally-brokered Minsk II agreements to settle the conflict in Ukraine.

On December 4, Moody's Investors Service said that although the situation in Ukraine has improved, it does not expect the existing sanctions to be eased or lifted until the parties involved in the conflict "demonstrate their willingness to abide by the terms of Minsk II [peace treaty] for a sustained period of time".

At the same time, the status of the annexed Crimea peninsula is seen as a "potentially insoluble impediment to any final resolution of the impasse between Ukraine and Russia", Moody's added.

Related Articles

Erdogan, Putin discuss deepening strategic relationship

Turkish President Recep Tayyip Erdogan and Russian leader Vladimir Putin on May 27 confirmed in a telephone call “the aspiration for further development of the strategic partnership,” the Kremlin ... more

EU to fund feasibility study on Slovakia’s proposed Eastring gas link to Balkans

The EU has agreed to help fund a feasibility study on the Eastring pipeline project, which would link Slovakia to the Balkan markets, Slovak transmission system operator Eustream announced on May 26. ... more

Opec prolong output cuts by nine months

Opec member countries reached an agreement to cap oil output for another nine months until March 2018, Bloomberg and the Financial Times reported on May 25, citing unnamed sources close to the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Dismiss