The European Union has given a broad indication of its ‘fifth package’ of sanctions against Russia in response to the invasion of Ukraine – with full details yet to follow, as at 7 April.
In a 5 April press statement, EU president Ursula von der Leyen said that the new package has ‘six pillars’.
‘First, we will impose an import ban on coal from Russia, worth EUR 4 billion per year. This will cut another important revenue source for Russia.
‘Second: a full transaction ban on four key Russian banks, among them VTB, the second largest Russian bank. These four banks, which we now totally cut off from the markets, represent 23% of market share in the Russian banking sector. This will further weaken Russia’s financial system.
‘Third: a ban on Russian vessels and Russian-operated vessels from accessing EU ports. Certain exemptions will cover essentials, such as agricultural and food products, humanitarian aid as well as energy. Additionally, we will propose a ban on Russian and Belarusian road transport operators. This ban will drastically limit the options for the Russian industry to obtain key goods.
‘Fourth: further targeted export bans, worth EUR 10 billion, in areas in which Russia is vulnerable. This includes, for example, quantum computers and advanced semiconductors, but also sensitive machinery and transportation equipment. With this, we will continue to degrade Russia’s technological base and industrial capacity.
‘Fifth: specific new import bans, worth EUR 5.5 billion, to cut the money stream of Russia and its oligarchs, on products from wood to cement, from seafood to liquor. In doing this, we also close loopholes between Russia and Belarus.
‘Sixth: We take a number of very targeted measures, such as a general EU ban on participation of Russian companies in public procurement in Member States, or an exclusion of all financial support, be it European or national, to Russian public bodies. Because European tax money should not go to Russia in whatever shape or form.’
She added that the EU is ‘working on additional sanctions, including on oil imports, and we are reflecting on some of the ideas presented by the Member States, such as taxes or specific payment channels such as an escrow account.’
The United Kingdom has also imposed new sanctions measures to ‘starve Putin’s war machine.’
However, it is known that there is not complete unanimity within the European Union about how far to take new restrictive measures. Austria’s finance minister, for one, has recently said that his country opposes further sanctions on imports of oil and gas. ‘We are very much dependent on the Russian gas, and I think all sanctions that hit us more than the Russians wouldn’t be good for us,’ Magnus Brunner told reporters.
https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_22_2281
https://www.gov.uk/government/news/uk-imposes-sweeping-new-sanctions-to-starve-putins-war-machine
