Package sharper than expected
EU imposes sanctions on Russia
2/22/2022, 6:58 p.m
Less than 24 hours have passed since the Kremlin recognized the areas in eastern Ukraine controlled by pro-Russian rebels as independent states. Now the EU’s answer follows: its punitive measures are primarily aimed at financing issues.
In view of the escalation in the Ukraine conflict, the EU imposes new sanctions on Russia. At a special meeting in Paris, the 27 foreign ministers of the member states approved a corresponding proposal by the EU Commission and the Foreign Service, as confirmed by French Foreign Minister Jean-Yves Le Drian. The punitive measures are expected to come into force later this week after the technical preparations have been completed.
According to information from Brussels, the EU sanctions package includes a trading ban on Russian government bonds in order to make it more difficult for the Russian state to refinance. In addition, several hundred people and companies are said to be on the EU sanctions list. According to diplomats, this includes around 350 members of the Russian parliament who voted for Russian recognition of the self-proclaimed People’s Republics of Luhansk and Donetsk in eastern Ukraine, but also banks that do business in eastern Ukraine.
Also, the EU’s free trade regulations with Ukraine should no longer apply to the areas in eastern Ukraine. Any person, organization or company that is placed on the EU sanctions list will have all of their assets in the EU frozen. In addition, listed persons are no longer allowed to enter the EU and no more business can be done with those affected.
Those responsible should “clearly feel” the consequences
Ursula von der Leyen’s EU Commission and the Foreign Service presented the proposal for the sanctions package on Tuesday morning. Accordingly, the aim of the financial sanctions is to target Russia’s access to the capital and financial markets and financial services of the EU in order to “limit the financing of escalating and aggressive measures”. Among the Russian banks, those involved in financing Russian military operations and other measures in the separatist areas are to be punished.
The proposed restrictions on trade between the EU and the separatist areas would ensure “that those responsible clearly feel the economic consequences of their illegal and aggressive actions”. The sanctions package is tougher than initially thought on Monday evening. The background is Putin’s decision to also send troops to the separatist areas.