Russias’s largest oil producers added to EU sanction list

Global Business

A shaky cease-fire in eastern Ukraine is causing uncertainty among European Union leaders. On Monday the E.U. agreed to adopt sanctions against Russia, but implementing them is proving challenging. CCTV America’s Rachelle Akuffo reports.

European leaders differed on how far the sanctions should go if the fragile cease-fire in eastern Ukraine holds.

Russian Prime Minister Dmitry Medvedev cautioned that Russian airspace could be closed to Western airlines if the sanctions affected the country’s energy and financial sectors, potentially bankrupting struggling airlines.

The companies affected by the E.U. sanctions include Russia’s biggest oil producers and pipeline operators. This would add pressure on Russian banks and the country’s struggling economy as lenders and investors continue move assets to more stable regions.

The ramping up of sanctions has prompted Russia to build strategic partnerships with countries like China in order to become less dependent on the West.

Russian President Vladimir Putin recently announced an energy deal with China worth an estimated $400 billion.  Starting in 2018, the new pipeline would allow Moscow to supply China with natural gas over 30 years.

As E.U. sanctions mount, so do Russian hopes of cushioning further blows to its $2 trillion economy.