Aeroflot grounds low-cost carrier on EU sanctions

[MOSCOW] OAO Aeroflot, Russia's state-run flag carrier, suspended flights of its low-cost unit due to European Union sanctions imposed in response to the Ukraine crisis.

European companies annulled leasing, servicing and insurance contracts with the unit, OOO Dobrolet, Aeroflot said ON Sunday. Its destinations had included Simferopol, the regional capital of the Crimean region, which was annexed by Russia in March.

Dobrolet's grounding is among the most visible results so far of sanctions the EU extended at the end of last month to punish Russian President Vladimir Putin for his support of anti-government separatists in Ukraine. European leaders and US President Barack Obama have urged Mr Putin to use his influence on rebels in eastern Ukraine after the downing of Malaysia Air Flight MH17.