European Union: More sanctions against Russia

BRUSSELS, Sept. 11 (UPI) -- The European Union agreed to proceed Thursday on a new round of sanctions against Russia, to go into effect Friday.

The sanctions are designed to further slow Russian banks and businesses in European capital markets, as well as prevent the sale of certain high-technology products to Russia. Its energy sector, in particular its deepwater oil drilling capability, will be most affected, an EU diplomat said. Some Russian officials will be banned from travel in the West and will have their overseas assets frozen.

The new sanctions are expected to particularly impact the Russian oil companies Rosneft and Transneft and the petroleum sector of the state energy company Gazprom. Rosneft sought a $42 billion loan from the Russian government last week to compensate for its restriction in financial markets.

Russia quickly said it was organizing a response to the sanctions to "commensurate with the economic losses" it expects to sustain. It had previously threatened to prevent Western airlines from flying over Russian airspace, slowing and complicating air routes. Russian Prime Minister Dmitry Medvedev said the implementation could "drive many struggling airlines into bankruptcy."