EU discusses trade restrictions worth €11bn in new Russia sanctions

Representatives of the Brussels-27 European Union member states will meet in Brussels on Wednesday to discuss a new set of sanctions against Russia. Block executives said they could lose 11 billion euros ($11.8 billion) in trade losses.

The EU is expected to agree new sanctions to mark the one-year anniversary of Russia’s invasion of Ukraine on February 24, but the concrete proposal is for all EU membership We need to get the unanimous support of the country.

“We are weakening Russia’s ability to sustain its war machine. The Russian economy is shrinking,” said European Commission President Ursula von der Leyen. “We need to keep the pressure on,” she told the European Parliament ahead of closed-door talks between 27 national envoys in Brussels.

“We are talking about €11 billion. We are proposing restrictions on some dual-use and electronic components used in Russia’s armed systems, such as drones, missiles and helicopters,” she said, looming. Describes a tenth package of sanctions that could also target Iran to support Russia’s war.

“There are also hundreds of drones manufactured in Iran and used by Russia on the Ukrainian battlefield. For the first time, we are proposing sanctions aimed at Iran’s economic operators, including those who

10th package

The European Commission has proposed to EU member states that four Russian banks, including private Alphabank, online bank Tinkoff and private financial institution Rosbank, should be separated from the global messaging system SWIFT, two people said. An EU diplomat spoke on condition of anonymity.

Rubber and asphalt will be added to the EU’s list of banned imports from Russia, and Russia Today’s Arabic-language services will be banned from the territory, according to people familiar with the confidential talks.

european trade
A person wearing a Ukrainian flag hat participates in an anti-war protest after Russian President Vladimir Putin authorizes a military operation in eastern Ukraine in front of the European Union headquarters in Barcelona, ​​Spain, February 24, 2022 Yes. (Nacho Doce/Reuters)

A further ban on EU exports to Russia was intended to stifle Moscow’s ability to produce arms and equipment to be deployed against Ukraine.

Sources said it covered electronic circuits and components, thermal cameras, radios, heavy-duty vehicles, steel and aluminum used in construction, and industrial and construction machinery.

The European Commission has also proposed further restrictions on European joint ventures with Russia and Russian nationals sitting on European boards, they added.

The bloc seeks to both extend measures against Russia and close existing sanctions loopholes. This includes tighter controls on the sale of satellite data to China.

Additional reports to better track Russian assets in Europe, as EU countries also seek ways to use Russian assets frozen under sanctions to fund Ukraine’s post-war reconstruction. Obligations are being considered.

The EU has so far placed about 33.8 billion euros worth of Russian central bank assets in its territory, out of an estimated $300 billion frozen outside Russia, according to EU officials.

At the same session of the European Parliament, the bloc’s top diplomat, Josep Borrell, said EU countries must supply Ukraine with more weapons and faster, saying that the US and NATO have launched a new offensive against Russia. Said he had to.

($1 = 0.9329 Euro)

Gabriella Bachinska