US imposes further sanctions on Putin allies

The United States froze assets and imposed visa bans on seven Russians close to President Vladimir Putin yesterday and also sanctioned 17 Russian companies in reprisal for Moscow’s actions in Ukraine.

President Barack Obama said the moves, which add to measures taken when Russia annexed Crimea last month, were to stop Putin fomenting rebellion in eastern Ukraine, an allegation Moscow denies. A Russian diplomat voiced “disgust” at the White House.

Among those sanctioned was Igor Sechin, head of state energy giant Rosneft. Its shares dropped nearly 2%, while the broader Moscow stock market rose almost 1% as investors decided the sanctions were softer than expected.

The European Union, with more to lose than Washington from sanctions against Russia, a major energy supplier and trading partner for the EU, is also expected to announce new penalties after member governments reached a deal, diplomats said.

“Russia’s involvement in the recent violence in eastern Ukraine is indisputable,” the White House said.

Moscow insists that a rebellion among Russian speakers in the east against the Kiev authorities that took power after the overthrow of a Kremlin-backed president in February is a home-grown response to a coup and denies having forces on the ground.

Meanwhile, Germany demanded Russia act to help secure the release of seven unarmed European military monitors, including four Germans, who have been held by the rebels since Friday. However, Moscow’s ambassador to the OSCE security body for whom the men are working condemned the organisation, of which Russia is a member, as “extremely irresponsible” for sending them into Ukraine. Nonetheless, he said they should be freed.

The rebels took another town yesterday, seizing the police headquarters and municipal administration building in Kostyantynivka.