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EU to expand sanctions against Russia, seek to stop EBRD funding - draft statement

16-07-2014 16:01

European Union leaders intend to expand sanctions against Russia, according to a draft document of conclusions obtained by Bloomberg.

The EU will seek to stop the funding of new Russian projects through the European Bank for Reconstruction and Development (EBRD). The EU can also order the European Investment Bank (EIB) to stop funding new projects in Russia's public sector. Sanctions could also be imposed on Russian companies that Brussels considers to be participating in destabilizing the situation in Ukraine, reads the draft document. The EU "condemns the continuation of illegal activities by armed militants in eastern Ukraine," the draft says. In addition, the EU intends to suspend bilateral and regional cooperation programs with Russia. EU leaders plan to consider further measures, in particular, the restriction of investment in Crimea and Sevastopol. The draft conclusions may be altered during the summit, and objections by countries such as Italy, Austria, Slovakia, France and Greece have so far prevented the unanimity required to impose broader EU sanctions.