The European Union on Friday formally adopted its fifth package of sanctions against Russia since the country’s Feb. 24 invasion of Ukraine, including bans on the import of coal, wood, chemicals and other products.
“Together with the four previous packages, these sanctions will further contribute to ramping up economic pressure on the Kremlin and cripple its ability to finance its invasion of Ukraine,” The EU Council said in a release. “These measures are broader and sharper, so that they cut even deeper into the Russian economy. They have been coordinated with international partners,” it added.
“These latest sanctions were adopted following the atrocities committed by Russian armed forces in Bucha and other places under Russian occupation. The aim of our sanctions is to stop the reckless, inhuman and aggressive behaviour of the Russian troops and make clear to the decision makers in the Kremlin that their illegal aggression comes at a heavy cost,” said Josep Borrell, High Representative for Foreign Affairs and Security Policy.
According to the EU Council, the fifth package contains the following six elements:
1) Coal ban
- An import ban on all forms of Russian coal. This affects one fourth of all Russian coal exports, amounting to around €8 billion loss of revenue per year for Russia.
2) Financial measures
- A full transaction ban and asset freeze on four Russian banks, which are now totally cut off from the markets. They represent 23% of market share in the Russian banking sector and will, therefore, further weaken Russia’s financial system.
- A prohibition on providing high-value crypto-asset services to Russia. This will contribute to closing potential loopholes.
- A prohibition on providing advice on trusts to wealthy Russians, making it more difficult for them to store their wealth in the EU.
3) Transport
- A full ban on Russian and Belarusian freight road operators working in the EU. Certain exemptions will cover essentials, such as agricultural and food products, humanitarian aid as well as energy.
- An entry ban on Russian-flagged vessels to EU ports. Exemptions apply for medical, food, energy, and humanitarian purposes, amongst others.
4) Targeted export bans
- Further targeted export bans – worth €10 billion – in areas in which Russia is vulnerable due to its high dependency on EU supplies. This includes, for example, quantum computing, advanced semiconductors, sensitive machinery, transportation and chemicals. It also includes specialist catalysts for use in the refinery industry. This will continue to degrade Russia’s technological base and industrial capacity.
- Adding jet fuel and fuel additives, which may be used by the Russian army, to the existing export ban.
5) Extending import bans
- Additional import bans – worth €5.5 billion – including cement, rubber products, wood, spirits (including vodka), liquor, high-end seafood (including caviar), and an anti-circumvention measure against potash imports from Belarus. These measures will also help to close loopholes between Russia and Belarus.
6) Excluding Russia from public contracts and European money; legal clarifications and enforcement
- Full prohibition on the participation of Russian nationals and entities in procurement contracts in the EU. Limited exceptions may be granted by the competent authorities where there is no viable alternative.
- Restriction on financial and non-financial support to Russian publicly owned or controlled entities under EU, Euratom and Member State programmes. For instance, further to measures previously announced in research and education, the Commission will terminate participation in all ongoing grant agreements to Russian public bodies or related entities, and suspend all related payments, under Horizon 2020 and Horizon Europe, Euratom, and Erasmus+. No new contracts or agreements with Russian public bodies or related entities will be concluded under these programmes.
- Addressing various overlaps between export restrictions on dual-use items and advanced technologies and other provisions.
- Extending to all official EU currencies the prohibitions on the export of banknotes and on the sale of transferrable securities.
The Commission also welcomes that an additional 217 individuals and 18 entities have now been sanctioned. This includes all 179 members of the so-called “governments” and “parliaments” of Donetsk and Luhansk. In total, 1091 individuals and 80 entities have been sanctioned since 2014.
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