(Adds details, background, gas market reaction)
* Kiev hits back at Russia over alleged support for rebels
* Proposed sanctions would hit 172 individuals, 65 Russian
* PM's comments pushes up gas prices on London market
By Pavel Polityuk
KIEV, Aug 8 Ukraine, hitting back at Russia
which it accuses of supporting separatist rebels, proposed
sanctions on Friday against 172 citizens from Russia and other
countries as well as 65 Russian companies "for financing
Prime Minister Arseny Yatseniuk said Ukraine, which has been
battling the separatists in the east of the country since April,
aimed to bring in a broad range of sanctions covering all
aspects of relations with its giant neighbour, from trade and
business to culture and tourism.
The proposed legislation would also allow Ukraine to impose
a "partial or full ban on the transit" of resources from Russia,
air flights and road traffic via Ukrainian territory.
Asked whether the proposed moves could ban Russian gas
transiting Ukraine to Europe, Yatseniuk said: "I spoke about all
the measures which could be included in the (proposed) law. This
includes the possible halting of all types of transit, from air
flights to transit of resources."
That news pushed up gas prices on the London market on
Russia halted gas supplies to Ukraine in June because of a
disagreement over pricing but it still pumps half of its gas
supplies to Europe via its neighbour.
Ukraine's planned action against Russian companies would
include freezing assets, limiting trade operations and banning
capital withdrawal from Ukraine, he said.
Individuals listed could face visa restrictions affecting
their entry in and out of Ukraine and around the country, he
said. The list of sanctioned companies and individuals would be
made public later, Yatseniuk said.
The proposals would be passed on to the national defence and
security council and Yatseniuk expected parliament to bring in
laws next Tuesday to enforce them.
The measures, if approved by parliament, could hit Russia's
deep penetration of Ukraine's telecommunications, banking,
property, energy and services markets.
Yatseniuk said the sanctions package could include court
action against people in hiding and their companies - a clear
allusion to former Ukraine President Viktor Yanukovich, who was
toppled by street protests in February and is now in Russia, and
"The Ukrainian state will find the property of banks,
finance companies, businesses, personal property around the
world of all those who supported the annexation of Crimea and
who now support and fund Russian terrorists on Ukrainian
territory," he said.
The sanctions could also hit TV and radio broadcasting, and
Internet services provided by Russian networks, as well as
Russian-affiliated mobile phone operators. Two of Ukraine's
three-largest mobile operators are affiliated with Russian
Asked what the financial loss to Ukraine could be, Yatseniuk
said: "In the worst-case scenario, the losses to Ukraine in the
first year not only from sanctions but also from the aggressive
policy of the Kremlin would be around 7 billion dollars."
(Additional reporting by Natalia Zinets; Writing by Richard
Balmforth; Editing by Susan Fenton)