* EU governments preparing to widen financial sanctions
* EU executive has finalised its proposals
* Package of measures to be ready by the end of the week
By Robin Emmott and Jan Strupczewski
BRUSSELS, Sept 3 Envoys of European Union
governments held further discussions on Wednesday on widening a
ban on Russian state-owned firms raising capital in the bloc
among a range of other sanctions, diplomats and officials said.
Following a decision by EU leaders at a weekend summit to
prepare heavier penalties unless Moscow pulls forces from
Ukraine, the European Commission, the EU executive, said it had
completed proposals for what measures should be taken.
Ambassadors from the 28 member states discussed those on
Wednesday and would review detailed, written versions of the
legal proposals on Thursday, diplomats said. The EU leaders set
a deadline of the end of the week to agree on a new set of
sanctions, which could be implemented when leaders see fit.
There has been disagreement among EU states about whether
and how far to increase sanctions, and so a final accord among
the governments may not include all the Commission proposals. It
could also include some measures not proposed by the executive.
The sanctions proposed by the Commission were in line with
those outlined by diplomats earlier in the week, including
adding all remaining state-owned Russian firms to the
state-owned banks already barred from the EU capital markets.
That could affect, notably, the Russian energy giants
Gazprom and Rosneft.
Other measures include: banning syndicated EU loans to
Russian government-owned banks and institutions; shortening to
30 days from 90 the minimum maturity of Russian state-owned
banks' debt instruments that cannot be sold in the EU; and
banning Russian derivative instruments being sold in the bloc.
Outside the financial sector, the proposals include an
expansion of a export ban on goods that can have both military
and civilian use to all potential Russian importers, not just
companies in the defence sector.
And a ban on selling advanced technologies in the energy
sector to Russia could be extended to include servicing
Aside from those penalties prepared by the Commission, some
member states have suggested barring Russian Defence Minister
Sergei Shoigu from entering the EU, diplomats said.
And Russia might be subjected to an EU cultural and sports
boycott - something that might, were it to continue long-term,
threaten even its hosting of the 2018 World Cup soccer finals.
The new EU sanctions package against Russia could be
coordinated with the three other members of the Group of Seven -
the United States, Canada and Japan.
The United States is considering limiting hi-tech exports to
Russia's Arctic oil and gas industry as part of plans to
strengthen sanctions against Moscow over the crisis in Ukraine,
the U.S. ambassador to the European Union said on Wednesday.
Russia's retaliatory ban on imports of food from the Europe
Union could cost the European Union 5 billion euros ($6.6
billion) a year, according to an internal EU document seen by
Reuters on Wednesday.
In a mark of deepening resolve to accept pain for their own
faltering economies in order to pressure Moscow to pull back in
Ukraine, France said on Wednesday it would not deliver a
helicopter-carrying warship to Russia as planned in October.
Paris had hitherto resisted calls from EU allies to halt the
handover, in line with an EU embargo on future arms sales.
(Writing by Alastair Macdonald; Editing by Andrew Heavens)