New EU sanctions for Russian oil firms. We will respond ‘asymmetrically’, Russian PM says

The European Union is preparing another package of sanctions against Russia. According to reports, the EU will target Russia’s oil companies Rosneft, Gazpromneft and Transneft.

According to the Wall Street Journal, the new measures to be brought due to Russia’s role in the Ukraine crisis, will prevent the three companies from raising money in the Western markets. The sanctions are expected to come into force on Tuesday.

Gazprom Neft, a subsidiary of Gazprom, is an oil company engaged primarily in oil & gas exploration and production, the sale and distribution of crude oil, and the production and sale of petroleum products.

Transneft is a Russian state-owned transport monopoly, considered as one of the largest oil pipeline companies in the world.

The Wall Street Journal highlights the fact that the sanctions only apply to oil companies and not the ones dealing with gas, as the EU is heavily reliant on Russian natural gas.

Russia will retaliate, PM says

In an interview given to Vedomosti newspaper, Russian Prime Minister Dmitry Medvedev said that any further sanctions on the Russian energy or financial sector would be responded to “asymmetrically”

“I brought up some options during a meeting of the Government. For example, we could impose transport restrictions. We believe we have friendly relations with our partners, and foreign airlines of friendly countries are permitted to fly over Russia. However, we’ll have to respond to any restrictions imposed on us. If Western carriers have to bypass our airspace, this could drive many struggling airlines into bankruptcy. This is not the way to go. We just hope our partners realise this at some point,” Medvedev said in the Vedomosti interview.

To remind, the EU in July said that exports of certain energy-related equipment and technology to Russia would be subject to prior authorisation by competent authorities of Member States.

The sanctions package from July also included a ban for export licenses for products destined for deep water oil exploration and production, arctic oil exploration or production and shale oil projects in Russia.

Russia then, in response, imposed a ban on imports of fruit, vegetables, meat, fish and dairy products from the EU countries, the US, Canada, Australia and Norway. The ban will be in place for a year.