EU leaders failed to get anywhere on sharing out the top jobs in Brussels last night but did manage another round of sanctions against Russia.
This time they will target Russian companies that help destabilize Ukraine and will ask the EU’s bank, the European Investment Bank, to suspend new lending for Russia and seek a halt to new lending to Russia by the European Bank for Reconstruction and Development.
That represents a significant stiffening of its measures though still some way short of the United States which yesterday imposed its most wide-ranging sanctions yet on Russia’s economy, including Gazprombank and Rosneft as well as other major banks and energy and defence companies.
Moscow shares have fallen in response, with Russia’s largest oil producer Rosneft tumbling 6 percent and dragging other energy, financial and defence firms with it. Vladimir Putin said the U.S. sanctions will take relations with Russia to a “dead end” and damage U.S. business interests in his country.
The EU leaders will reconvene at the end of August to sort out the new faces who will run the European Commission but the difficulty in agreeing names for the top economic jobs and even the European Council president suggests that views of how to put the bloc’s economy right continue to differ.