The European Union has forbidden the European banks to provide analysis of the Russian companies under sanctions. In fact, it is not a recommendation; the EU authorities have issued an official document banning the analysis of the Russian companies.
“In sum, the provision of financial research should be seen as a form of investment service and is thus prohibited under the Regulation,” the EU commission’s statement reads.
Moreover, the ban also covers investment consulting. The EU explains the introduction of restrictions by the fact that analytical data can help potential investors make decisions whether to hold, buy, or sell a particular security of a company from a sanctioned list.
The sanctions were imposed in July and September 2014 against such companies as Sberbank, VTB, Vnesheconombank, Gazprombank and Rosselkhozbank, Rosneft, Lukoil, Gazprom Neft, Transneft etc. In its turn, the Russian government prohibited import of food from the US and EU. After that, the Russian ruble hit the record low and consumer inflation showed the fastest growth in six years. Besides, food prices are still rising with meat coming mostly from Brazil and China.
