New EU sanctions to block Russia's "access to capital markets",
dominated by Britain's banking sector, will target business worth up
£6billion a year in bonds issued by Russian state-owned banks and financial
institutions in European markets
"Restricting access to capital markets for Russian state-owned financial institutions would increase their cost of raising funds and constrain their ability to finance the Russian economy, unless the Russian public authorities provide them with substitute financing," said a proposal seen by the Telegraph. "It would also foster a climate of market uncertainty that is likely to affect the business environment in Russia and accelerate capital outflows."
The EU has threatened Russia with new sanctions unless it ensures a full international investigation of the shooting down of the Malaysian Airlines flight last week and stops an "increasing flow of weapons, equipment and militants across the border" into Eastern Ukraine, arms that include SA-11 missiles that downed MH17 with the loss of 298 lives.
The EU proposals also include an arms sales or export embargo despite a similar measure being blocked by France on Tuesday because of a euro 1.4 billion French contract, signed in 2011, to supply two warships to Russia.
Read more: City of London to bear the brunt of EU sanctions on Russia - Telegraph
"Restricting access to capital markets for Russian state-owned financial institutions would increase their cost of raising funds and constrain their ability to finance the Russian economy, unless the Russian public authorities provide them with substitute financing," said a proposal seen by the Telegraph. "It would also foster a climate of market uncertainty that is likely to affect the business environment in Russia and accelerate capital outflows."
The EU has threatened Russia with new sanctions unless it ensures a full international investigation of the shooting down of the Malaysian Airlines flight last week and stops an "increasing flow of weapons, equipment and militants across the border" into Eastern Ukraine, arms that include SA-11 missiles that downed MH17 with the loss of 298 lives.
The EU proposals also include an arms sales or export embargo despite a similar measure being blocked by France on Tuesday because of a euro 1.4 billion French contract, signed in 2011, to supply two warships to Russia.
Read more: City of London to bear the brunt of EU sanctions on Russia - Telegraph
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