Monday, September 08, 2014

New EU Sanctions to Stop Fundraising by 3 Russian Oil Giants

Rosneft, Transneft and OAO Gazprom Among Russian Firms Affected

By Stephen Fidler and Laurence Norman, WSJ
Updated Sept. 7, 2014

BRUSSELS—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 major state-owned oil companies, according to documents seen by The Wall Street Journal.

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.

Five state-controlled banks, including Sberbank and VTB Bank, VTBR.MZ -0.67% already barred from raising funds for longer than 90 days under the July sanctions, will also have the maximum maturity cut to 30 days.

The new sanctions are expected to be implemented Tuesday.

They include for the first time a measure preventing the named companies from raising new bank loans in the EU of longer than 30 days' maturity.

(More here.)

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