US slaps new sanctions on Russian companies over Ukraine

The US has expanded sanctions against Russia to include the country's largest bank, OAO Sberbank and energy companies as well as five state-owned defence and technology companies.

"Russia's economic and diplomatic isolation will continue to grow as long as its actions do not live up to its words," US Treasury Secretary Jacob Lew said. "Russia's economy is already paying a heavy price for its unlawful behaviour."

The US Treasury Department imposed sanctions that prohibit transactions in, provision of financing for, or other dealings in new debt of greater than 90 days maturity issued by OAO Gazprom Neft and OAO Transneft. For banks, the debt financing restriction now covers maturities greater than 30 days, instead of 90 days previously.

The US actions followed new sanctions announced by the European Union, which added 15 companies, including Gazprom Neft, Rosneft and Transneft, and 24 people to the list of those affected by its sanctions against Russia. The individuals - including rebel leaders in eastern Ukraine and "Russian decision-makers and oligarchs" - will now face EU travel bans and asset freezes.

"We are implementing these new measures in light of Russia's actions to further destabilise Ukraine over the last month," US President Barack Obama said yesterday, "including through the presence of heavily-armed Russian forces in eastern Ukraine."

The announcements came after Kiev and Nato said around 1,000 Russian troops remained in Ukraine.