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Sept. 8, 2014, 7:04 a.m. EDT

New EU sanctions to stop fundraising by 3 Russian oil giants

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By Stephen Fidler and Laurence Norman

BRUSSELS — New European Union sanctions on Russia will expand the number of Russian companies unable to raise money in the bloc’s capital markets to include three state-owned oil companies, according to documents seen by The Wall Street Journal.

The documents show the EU seeking to hit Russian oil companies, but leaving unscathed those involved in gas production and export, which are critical to many European countries’ energy supplies.

Under a modest expansion of sanctions introduced in late July, the three oil companies —- Gazpromneft , the oil-production and refining subsidiary of OAO Gazprom  , oil transportation company Transneft, and oil giant Rosneft    — will be forbidden from raising funds of longer than 30 days’ maturity.

Five state-controlled banks, including Sberbank    and VTB Bank  , already barred from raising funds for longer than 90 days under the July sanctions, will also have the maximum maturity cut to 30 days. The new sanctions are expected to be implemented on Tuesday.

Three companies involved in military production — Oboronprom, United Aircraft Corp.  and Uralvagonzavod — will be barred from future EU fundraising.

An expanded version of this report appears on WSJ.com

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