EU set to impose new sanctions on Russia

The European Union have imposed new economic sanctions on Russia over the situation in eastern Ukraine. These sanctions will target large Russian state-owned oil companies and are set to come into effect “in the next few days”.

“The sanctions are aimed at promoting a change of course in Russia’s actions destabilising eastern Ukraine,” EU Council President Herman van Rompuy said.

“Depending on the situation on the ground, the EU stands ready to review the agreed sanctions in whole or in part.”

The ceasefire between Kiev and pro-Russian rebels appears to be holding. On Monday, Ukrainian President Petro Poroshenko said that the eastern rebels have released 1,200 prisoners of war. However, the head of the Organisation for Security and Cooperation in Europe described the truce as ‘shaky’.

Diplomts said that the latest round of EU sanctions will target Russian oil companies Transneft and Rosneft. The sanctions will restrict the companies’ access to European financial markets. Last month, Rosneft asked the Russian government for a $42bn loan.

Russia has warned that it could retaliate to these sanctions by blocking international flights through its airspace.

Before the ceasefire was announced, pro-Russian rebels had made major advances in eastern Ukraine and managed to seize territory outside the south-eastern city of Mariupol. Mariupol is the last city in the Donetsk region that is still held by the Ukrainian government and is a strategic port on the route to Crimea, the peninsula that Russia annexed in March. On Monday, Poroshenko said that Ukraine will reinforce Mariupol’s defences and that rebels would suffer a ‘crushing defeat’ if they advanced on the city.

Around 2,600 people have died since fighting broke out in Ukraine last April.