(Adds more company reactions)
Aug 4 The European Union and the United States
are tightening sanctions against Russia, targeting its energy,
banking and defence sectors in the strongest international
action yet over Moscow's support for rebels in eastern Ukraine.
Below are recent comments and decisions showing the impact
on European companies:
* The European sanctions on Russia have no impact on
Austrian energy group OMV, which does not expect gas
prices to rise given its long-term contracts with supplier
Gazprom, OMV CEO Gerhard Roiss said.
* Germany's Economy Ministry has confirmed it has halted
Rheinmetall's export of combat simulation gear to
Russia, going beyond the recently imposed EU sanctions which
block future defence contracts.
* A low-cost airline run by Russian national carrier
Aeroflot, Dobrolyot (Good Flight), said it would suspend all
flights after its plane lease agreement was cancelled when the
EU slapped sanctions on Moscow.
* Daimler has seen booming growth in the Russian
auto market weaken due to the Ukraine crisis, Chief Executive
Dieter Zetsche told Germany's Bild am Sonntag newspaper.
* Part-nationalised British lender Royal Bank of Scotland
said it had placed restrictions on its lending in Russia
following developments in Ukraine.
* Russia's three largest banks sought to assure clients and
investors they had the resources necessary to fulfil obligations
despite their inclusion in the EU's latest round of sanctions.
* Adidas, the world's No.2 sportswear firm, cut
its revenue and profit targets for this year and scrapped them
for next year, blaming a plunge in sales at its golf business
and its exposure to a weak Russian market.
* The head of Russia's second-largest oil producer, Lukoil
, said Western sanctions would force the company to
reduce its investment programme due to limited access to funds.
* Russia's Megafon said it had converted
its foreign currency deposits into roubles and Hong Kong dollars
to protect the mobile phone operator against any further Western
* Italy's Enel is not considering the sale of its
Russian assets at the moment, the utility's CEO Francesco
Starace said. "It is not wise to sell assets in Russia at this
moment," Starace said in a conference call.
* German retailer Metro AG said conditions are
still not right to list a stake in its Russian cash-and-carry
business, that was postponed in March due to the Ukraine crisis.
* Safran expects some impact on its Sagem defence
electronics business because of the new EU and U.S. sanctions on
Russia, but this will not significantly affect the parent
company, the head of the French aerospace group said.
* Austrian Airlines, a unit of Lufthansa, is
seeing some impact from the crisis in Russia and Ukraine, but
there will not be a visible hit at the group level, the group's
chief financial officer said.
* French oil major Total said it had stopped
buying shares in Russia's Novatek when a Malaysian
airliner was shot down over Ukraine, but it was still too early
to gauge the impact of the sanctions.
* More than 25,000 jobs are at risk in Germany following the
fresh sanctions, the German Committee on Eastern European
Economic Relations said. "Further damage is looming for the
European and especially the German export industry. More than
25,000 jobs are in danger in Germany alone," it said.
* Swedish cosmetics firm Oriflame plans to sell
a lipstick factory in Russia as it moves to consolidate
production in one location in the country, a real estate
consultant and the company said on Tuesday. Oriflame scrapped
third-quarter dividends in May and said it was trying to cut
costs to help deal with "very tough conditions" in Russia and
Ukraine, its two biggest markets.
* Oil and gas producer BP reported a sharp rise in
second-quarter profits but warned further Western sanctions on
Russia could harm its business there and its relationship with
Russian state oil company Rosneft.
(Compiled by Tom Pfeiffer and Mark Potter)