Ban on buying Russian bonds eyed as EU envoys meet (sources/REUTERS)

BRUSSELS - Europeans could be barred from buying new Russian government bonds under a package of extra sanctions over Moscow's military role in Ukraine that European Union ambassadors were to start discussing on Monday, three EU sources said.
EU leaders decided at a summit on Saturday that the direct engagement of Russian troops in the war in eastern and southern Ukraine - still denied by Moscow - called for a stepping up of sanctions imposed so far unless Russia pulled its soldiers back.

German Chancellor Angela Merkel, who led the drive for a tougher EU response, said on Monday that Moscow's behavior in Ukraine must not go unanswered, even if sanctions hurt the German economy, heavily dependent on imported Russian gas.

"I have said that (sanctions) can have an impact, also for German companies," Merkel told a news conference in Berlin.
"But I have to say there is also an impact when you are allowed to move borders in Europe and attack other countries with your troops," she said. "Accepting Russia's behavior is not an option. And therefore it was necessary to prepare further sanctions."
The leaders asked the executive European Commission to prepare further measures within a week, building on steps taken at the end of July, which targeted the energy, banking and defense sectors.
"I'm hearing that a ban on buying Russian government bonds could be in the next package," an EU official familiar with the preparations said.
Tighter restrictions on dual use technologies with military as well as civilian applications could also be included, along with curbs on advanced energy exploration equipment, the official said.
An EU diplomat said ambassadors of the 28 member states would hold a meeting on Monday at 1300 GMT (9 a.m. EDT) to start work on a "significant" package of steps, though no immediate decisions were expected. A further meeting is set for Wednesday.
The leaders said the Commission should include in the sanctions "every person and institution dealing with the separatist groups in the Donbass", potentially leaving a very broad area that could be targeted. The Donbass is the industrial region of eastern Ukraine where separatists are active.

• However several EU countries heavily dependent on Russian gas, including the Czech Republic, Slovakia and Austria, are opposed to new sanctions, which require unanimous agreement.

"I consider sanctions meaningless and counterproductive," Slovak Prime Minister Robert Fico said on Sunday.
"Until we know what is the impact of the already imposed sanctions, it makes no sense to impose new ones," Fico said. "I reserve a right to veto sanctions harming national interests of Slovakia.".......................http://www.todayonline.com/world/ban-buying-russian-bonds-eyed-eu-envoys-meet-sources?singlepage=true
1/9/14
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• Russia ready to respond if spiral of sanctions whips up

• Merkel says Russian behavior in Ukraine cannot go unanswered

• U.S. applauds European steps towards more Russia sanctions (Statement by NSC Spokesperson Caitlin Hayden)

• Slovakia says it may veto new EU sanctions against Russia...