​EU considering banning Russian state firms borrowing - report

2 Sep, 2014 15:55 / Updated 10 years ago

The EU is considering forbidding all Russian state-owned firms from borrowing or raising money on European capital markets in the possible next round of sanctions against Russia being prepared by the European Commission.

This and other proposals were discussed at a meeting of European ambassadors in Brussels on Monday, Reuters reports citing diplomatic sources. The EU governing body is due to prepare a final draft by Wednesday and members will make a decision on the final shape of the latest round of sanctions by Friday.

At the end of July, the EU stopped five Russian banks, including the country’s largest lender Sberbank, from raising funds on its capital markets.

Among other options discussed in Brussels on Monday was halting syndicated EU loans to Russian government-owned banks and institutions.

The next package of sanctions may also stop Europeans from buying new Russian government bonds, three EU sources told Reuters.

The European Commission proposed a shortening the minimum maturity of debt instruments issued by Russian state-owned banks that cannot be sold in the EU to 30 days from the 90 days agreed in July.

The diplomats also discussed widening the export ban on goods that can have dual military and civilian use to cover all potential Russian importers. The previous round of sanctions only hit exports to the defense sector.

The prohibition on selling advanced energy technology to Russia could be extended to include servicing agreements, the sources told Reuters.

The next round of sanctions may also bar Russian Defense Minister Sergey Shoigu from entering the EU.

Other ideas under consideration in Brussels included not inviting Russia to attend cultural, economic and sporting events.