The European Union (EU) has taken a significant step in its response to Russia’s invasion of Ukraine by recommending an eighth round of sanctions. The proposed sanctions aim to impose stricter trade restrictions, expand the individual blacklist, and cap oil prices for third countries. However, implementing these measures may prove challenging, as all 27 member countries must reach a consensus.
Since the invasion began in February 2022, the EU has already imposed seven sets of punitive measures on Russia. Despite Russia’s recent aggressive actions, including military mobilization and nuclear threats, reaching an agreement on the new sanctions may take time.
European Commission President Ursula von der Leyen has made it clear that the EU rejects the referenda held in Russian-occupied areas of Ukraine and any form of annexation. She has emphasised the importance of holding the Kremlin accountable for its actions through the proposed biting sanctions.
The Group of Seven (G7) major industrialized countries, including EU members Italy, France, and Germany, has already agreed to implement an oil price cap through insurers. There have also been calls for further reduction of money flows to Russia from fossil fuel sales. To limit financial support to Moscow, Oleg Ustenko, a senior economic advisor to Ukrainian President Volodymyr Zelenskiy, has urged the EU to ban European companies from insuring Russia’s seaborne shipments to other countries.
However, there are certain measures not included in the proposed sanctions that some countries have sought. Poland and Baltic countries have called for a ban on the import of Russian diamonds, but it is uncertain whether this will be included in the final measures. Implementing the sanctions requires unanimity among EU member states, and concerns have been raised over potential opposition from Hungary, whose Prime Minister Viktor Orban has close ties with Russian President Vladimir Putin and has been critical of economic restrictions.
Despite these challenges, Ustenko remains hopeful that Hungary and EU countries with large shipping fleets, such as Greece, Malta, and Cyprus, will eventually support additional measures that would impact Russian oil revenues.
In addition to trade restrictions, the proposed sanctions also include expanding the blacklist to incorporate individuals from Russia’s defense sector and those involved in voting organized by Moscow in occupied Ukrainian territories. Individuals responsible for spreading Russian propaganda and those facilitating the circumvention of existing sanctions against Russia would also be sanctioned. Notably, there are plans to include Patriarch Kirill, the head of the Russian Orthodox Church and a close ally of the Kremlin, in the list of individuals facing sanctions.
Furthermore, the EU is aiming to impose a ban on imports that would result in Russia losing an estimated 7 billion euros in revenue. The list of prohibited exports to Russia would also be expanded to limit the supply of key technologies to the Kremlin’s military capabilities. European companies would be prohibited from providing further services to Russia, and European citizens would be barred from holding positions on Russian state company boards. These measures seek to address concerns and public outrage surrounding former top European politicians taking jobs on Russian boards, such as Gerhard Schroeder and Francois Fillon.
The EU Commission plans to present the detailed proposal to member states in a closed-door meeting. The initial discussion is scheduled to occur on Friday, followed by a meeting of national EU leaders in Prague on October 6-7.
Useful links:
– Bloomberg: EU Urges New Russia Sanctions Extending Financial, Economic Ban
– Euronews: EU to Call for Travel Ban and More Money Freeze in Russia Sanctions
