Russia faces EU funding cuts, more freezing of assets

Agreed-upon loans will be suspended and sanctions will widen.
By Ed Adamczyk Follow @adamczyk_ed Contact the Author   |   July 16, 2014 at 12:52 PM

BRUSSELS, July 16 (UPI) -- The European Union will increase sanctions and stop large-scale funding to Russia in response to support of Ukrainian separatists.

The EU's bank, the European Investment Bank, and the European Bank for Reconstruction and Development, will suspend financing of Russian public-sector projects. It will cut Russia off from a loan of one billion euros ($1.35 billion) promised by the EIB and additional funding from the EBRD, which loaned Russia 1.8 billion euros ($2.43 billion) in 2013.

Under consideration is the suspension of other EU programs designed to provide Russia with an additional 450 million euros ($608.8 million) between 2014 and 2020.

The plans were contained in a draft of a statement of an EU summit meeting Wednesday.

Wider asset freezes of organizations that "are supporting, materially or financially, actions undermining or threatening Ukraine's sovereignty, territorial integrity and independence" as the statement phrased the situation, are also expected. It added Russian measures to reduce the violence in Ukraine "have not been met."

European nations are being urged by the United States to take a stronger stand against Russia, and additional U.S. sanctions against Russia's defense and financial sectors are imminent, official sources said.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
North Korea: Airport terminal is 'new face' of country
Texas AG Ken Paxton facing first-degree felony fraud charges
Kurds plan to carve state out of Iraq after fighting stops, leaders say
Anonymous calls for #MillionPersonMarch on Independence Day
Paraguayan song pays tribute to Pope Francis, goes viral