Russia’s largest carrier Aeroflot – Russian Airlines established a new subsidiary - Byudzetniy Perevozchik (stands for Budget Air Carrier), RIA Novosti reports with reference to the company.

Subsidiary of Aeroflot – Dobrolet low-cost carrier suspended flights in August 2014 due to sanctions against the carrier imposed by EU. In late August CEO of Aeroflot, Vitaly Savelyev, said that the company is going to establish a new low-cost airline to replace Dobrolet; the carrier may start performing flights in late October.

USA and EU reject the results of Crimea referendum and accuse Russia of interference in internal affairs of Ukraine. Russia stated that these accusations are unacceptable. The Western countries have imposed several tiers of sanctions against a number of Russian politicians, businessmen and companies. USA and EU threaten to expand the sanctions in future. The last tier of sanctions was imposed in July.

On July 30th EU announced the sanctions list for Ukraine; it comprised 8 persons and three legal entities. Among them are: Deputy Head of Russian Presidential Administration, Alexey Gromov, four Russian businessmen, head of Crimean Ministry of Internal Affairs as well as two representatives of self-proclaimed people’s republics established in the Eastern part of Ukraine.

EU authorities banned sales, deliveries and transportation of equipment and technologies designed for implementation of infrastructure projects in Crimea and Sevastopol. It is also prohibited to use ships or aircraft registered in EU for these purposes. The restrictions apply to transport, telecommunications and energy industries, oil, gas and minerals prospecting.

On July 29th U.S. Department of the Treasury imposed sanctions against Bank of Moscow, VTB and Rosselkhozbank as well as United Shipbuilding Corporation (USC).