Josep Borrell – Photo © European Union 2022
(BRUSSELS) – The EU set out a new package of sanctions against Russia Tuesday, prohibiting new investments in Russia’s energy sector and the provision of credit rating services to any Russian person or entity.
In its fourth set of sanctions in response to Russia’s brutal aggression against Ukraine and its people, the EU also prohibits all transactions with certain state-owned enterprises, and introduces further trade restrictions for iron and steel, as well as for luxury goods.
The sanctions ramp up economic pressure on the Kremlin and are aimed at crippling its ability to finance its invasion of Ukraine. The measures have been coordinated with international partners, notably the United States.
The EU’s foreign policy chief Josep Borrell said: “As President Putin’s war against Ukrainian people continues, so does our resolve to support Ukraine and cripple the financing of Kremlin’s war machinery.”
He added that the package is “another major blow to the economic and logistic base upon which Russia relies on to carry out the invasion of Ukraine. The aim of the sanctions is that President Putin stops this inhuman and senseless war.”
The agreed measures are the following:
- A full prohibition of any transactions with certain Russian State-owned enterprises across different sectors – the Kremlin’s military-industrial complex.
- An EU import ban on those steel products currently under EU safeguard measures, amounting to approximately 3.3 billion in lost export revenue for Russia. Increased import quotas will be distributed to other third countries to compensate.
- A far-reaching ban on new investment across the Russian energy sector, with limited exceptions for civil nuclear energy and the transport of certain energy products back to the EU.
- An EU export ban on luxury goods (e.g. luxury cars, jewellery, etc.) to directly hit Russian elites.
- The list of sanctioned persons and entities has been further extended to include more oligarchs and business elites linked to the Kremlin, as well as companies active in military and defence areas, which are logistically and materially supporting the invasion. There are also new listings of actors active in disinformation.
- A ban on the rating of Russia and Russian companies by EU credit rating agencies and the provision of rating services to Russian clients, which would result in them losing even further access to the EU’s financial markets.
Following an announcement last Friday by G7 members, the EU, together with other World Trade Organization (WTO) members, agreed today to deny Russian products and services most favoured nation treatment in EU markets. This will suspend the significant benefits that Russia enjoys as a WTO member. These actions against Russia protect the essential security interests of the EU and its partners in light of Russia’s unprovoked, premeditated and unjustified aggression against Ukraine, assisted by Belarus. They are fully justified under WTO law.
EU restrictive measures in response to the crisis in Ukraine (background information)
