EU Sanctions Target Russian Oil Industry

European governments have agreed new sanctions against Russia over the Ukraine crisis, targeting its oil and defence industries.

Moscow's sensitive technologies and dual-use goods are also being targeted as part of the fresh action which will be reviewed after three months, a diplomat said.

The capitals of all 28 nations will now look at and rubber-stamp what has been agreed.

The move is seen as an extension of existing US and EU sanctions and will focus on 11 individuals and other "entities" - the so-called 'cronies' of Russian President Vladimir Putin.

It also comes after the other leaders of the Group of Seven (G7) warned in a statement earlier this week that they were prepared to move to broader sanctions on Russia, including "sectoral measures".

Sky's Europe Correspondent Robert Nisbet said eight of the people to be added to the list by the EU were expected to be much closer to the inner-circle of Mr Putin to "hit right at the centre of the Russian government".

He added: "What you may notice is not in the list is the finance sector which is obviously something that people have been pushing for - trying to restrict state-owned Russian banks from seeking extra capital from within the EU."

Moments after the announcement, US Secretary John Kerry said the US "was in the process of preparing additional sanctions" on "key sections of the Russian economy".

He said Mr Putin still "had a choice going forward, with respect to his ability to be able to have an impact on the separatists".

But Mr Kerry said there was "no shred of evidence" Russia was willing to help end the violence and bloodshed between Moscow-backed rebels and Kiev.

"The Russians and their so-called volunteers are continuing to ship arms and funds and personnel across the border. There is clear evidence of it," he said.

"We now have clear evidence of artillery and rocket fire from Russia into Ukraine.

"And while the Russians say they want to de-escalate the conflict, their actions have not shown a shred of evidence that they really have a legitimate desire to end the violence and end the bloodshed."

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