Further sanctions would have 'chilling effect' on Russia - IIF

WASHINGTON (Reuters) - Further sanctions on Russia would have a "broader chilling effect" on the country and its companies that are already largely excluded from raising foreign capital, a lobbying group representing 500 world financial institutions and major banks warned on Friday.

Indeed, further sanctions are likely if an investigation establishes Russian links to the downing of a Malaysian airliner on Thursday, the Washington-based Institute of International Finance said. Of the four companies sanctioned by the United States on Wednesday, Rosneft Oil Co was most vulnerable due to its hefty financing requirements for the remainder of this year.