Ukraine imposes sanctions against Federal Freight, prolongs them against Freight One, other rail cos
MOSCOW. May 16 (Interfax) - Ukraine has imposed sanctions for a period of one year on Russian Railways (RZD) subsidiary Federal Freight.
The sanctions against these and a host of other Russian companies were imposed in line with a decree signed by President Petro Poroshenko, which enacted a resolution of the National Security and Defense Council of Ukraine (NSDC) dated April 28, 2017 on the application of personal special economic and other restrictive measures (sanctions). The decree was signed on May 15 and published on the presidential website on May 16. It comes into effect on the date of its publication.
Federal Freight is Russia's second biggest rail freight operator and has representative offices in Ukraine and Kazakhstan.
Federal Freight's assets were blocked - with the right to use and dispose of them restricted. Commercial operations in Ukraine are also restricted, transit of resources and shipments via Ukraine comes to a complete halt and economic and financial obligations are suspended.
The same three restrictions were imposed on SG Trans, NefteTransService and its PromTransInvest subsidiary, Sberbank Leasing and United Wagon Company's Rail1520.
The decree effectively extends by one year sanctions against Freight One and Freight One Ukraine, with transit of resources and shipments via Ukraine discontinued.
Sanctions imposed in October against TransMashHolding (TMH) were also extended by one year. TMH's Ukrainian subsidiary Luhanskteplovoz had its assets blocked, with the right to use and dispose of them restricted. Commercial operations in Ukraine are also restricted and the company cannot move funds out of Ukraine.