EU takes aim at Russia financing, advanced tech

[BRUSSELLS] The European Union has curbed Russia's access to bank financing and advanced technology in its widest-ranging sanctions yet over President Vladimir Putin's backing of the rebellion in eastern Ukraine.

EU governments agreed yesterday in Brussels to bar Russian state-owned banks from selling shares or bonds in Europe and restricted the export of equipment to modernise the oil industry, a key prop for Russia's economy, two EU officials told reporters.

New contracts to sell arms to Russia and the export of machinery, electronics and other civilian products with military uses will also be banned.

"The political implications of the escalation in tensions are likely to cast a further chill over relations between Russia and the West," Citigroup Inc analysts including Eric Lee and Tina Fordham said in a note to clients before the EU decision. "Economic costs are starting to bite, but it …