US, European Union target Russian energy sector with new sanctions

WASHINGTON — In a marked escalation of their sanctions campaign against Russia, the United States and the European Union hit the Kremlin on Friday with new penalties for its actions in Ukraine, targeting favored financial, energy and defense businesses.

The Western governments took steps to cut the flow of capital to these enterprises and to deprive the Russian energy sector, the foundation of the country’s economy, of Western know-how and technology it needs to develop new energy fields. The measures will also sting for U.S. energy companies who have been dealing with Russian firms.