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FX.co ★ EU extends sanctions against Russia until mid-2017

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Forex Humor:::2016-12-21T08:27:00

EU extends sanctions against Russia until mid-2017

Last week, leaders of the European Union’s member countries decided to extend sanctions against Russia over the turmoil in Ukraine. The sanctions package was extended until mid-2017, although some nations called for a longer term because of a potential easing of pressure from US President-elect Donald Trump.

However, the decision was widely expected. The formal process to extend sanctions against Russia’s defense, energy and financial sectors will come into effect next week.

The EU first introduced sanctions against Moscow after Crimea became part of the Russian Federation in 2014. Later, sanctions were expanded because of the Kremlin’s support of pro-Russian separatists in the Donbas region.

Ukraine's President Petro Poroshenko welcomed the decision.

Poland was among the EU countries that demanded a longer extension of the sanctions, but Italy was calling for re-establishment of business ties with Moscow.

According to some media, the decision was a kind of signal to Trump who had pledged to restore relations with Russia.

However, German Chancellor Angela Merkel said the extension was agreed "based on the current situation" rather than attempts to "anticipate what the new American president might do."

Some EU states urged that new sanctions on Russia over the conflict in Syria should be implemented, but the bloc rejected the proposal.

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