Mediaboss Marketing

Ukrainian servicemen ride on an armoured vehicle in Mariupol following the ceasefire. Photo: Reuters

Newport, Wales: The European Union has slapped new economic sanctions on Russia, but said they could be suspended if Moscow withdrew its troops from Ukraine and observed a ceasefire.

Some provisions will make it harder for Russian state-owned firms to raise finance in the EU. Diplomats expect them to hit, among others, the oil company Rosneft and units of Gazprom, though not the gas firm itself, a main supplier to the EU.

A further 24 people were added to a list of those barred from entry to the bloc and whose assets in the EU are frozen.

A Ukrainian border guard sits in a military vehicle after the ceasefire is agreed. Photo: Reuters

"The ambassadors agreed on a package of sanctions against persons and sectors of the Russian economy," said one senior EU diplomat involved in the talks.

Advertisement

"The implementation is expected on Monday," the diplomat said. "A ceasefire must hold for sanctions to be lifted."

Earlier, diplomats spoke of possibly postponing the sanctions coming into force for up to a week to give President Vladimir Putin time to show he was resolving the conflict. But impatience with Russia's ambiguity in the Ukraine conflict won.

Confirming the deal should take effect on Monday, the presidents of the European Commission, the EU's executive, and of the European Council, which groups the 28 governments, said: "It will give the European Union an effective tool, which should allow us to provide a response within a short time span. It will increase the effectiveness of the measures already in place."

Read more:
European Union imposes new sanctions on Russia