Russia Sanctions Hundreds of Ukraine Individuals, Companies

(Bloomberg) -- Russia announced sanctions on hundreds of Ukrainian companies and individuals, including top officials and business leaders, stepping up the conflict between the two former Soviet neighbors.

Economic ties between the two have withered since the tensions began with Russia’s annexation of Crimea and support for separatists in eastern Ukraine in 2014, limiting the impact of the move, according to analysts.

The list released by the government Thursday covers 322 individuals and 68 companies, including iron-ore producer Ferrexpo Plc and biggest poultry producer Mironovskiy Hleboproduct SE, as well as top officials -- presidential candidate Yulia Tymoshenko -- and some of their relatives -- the son of President Petro Poroshenko. Tycoon Viktor Pinchuk was also hit with the limits, as were many top government officials and the head of the state energy company.

Key Takeaways

  • Russia had long threatened retaliation and with the conflict with Kiev showing no signs of progress toward resolution, imposed the sanctions. They are a tit-for-tat response to Ukraine’s restrictions, Kremlin spokesman Dmitry Peskov said.
  • “Russian sanctions were expected,” President Petro Poroshenko told reporters in Kiev. “Apart from small exceptions, it is a list of a very decent people. In Ukraine, to be on the list is an honor.”
  • “The impact on the Ukrainian economy will be negligible, while giving those on the list an unearned badge of honor as they head to elections,” said Mark McNamee, head of Europe practice at Frontier Strategy Group in London. “Economically speaking, Ukraine has re-oriented towards the West and exports to Russia have collapsed.”
  • MHP, traded in London, stopped exporting to Russia in February 2014 when the conflict started, said spokeswoman Anastasiya Sobotyuk. They also sold their assets in Crimea.
  • Ferrexpo shares were up almost 6 percent in London Thursday
  • Tymoshenko said she’s not worried about the sanctions. “Ukraine’s success is the best sanction on the Russian invader,” she said.

Read More

  • Russian government order on sanctions

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