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Europe Daily Bulletin No. 11033
EUROPEAN COUNCIL / (ae) ukraine

EU imposes sanctions on Russia and threatens further action

Brussels, 06/03/2014 (Agence Europe) - On 6 March, during a special meeting on the situation in Ukraine, heads of state and government decided to impose a first series of sanctions against Russia and threatened to impose further sanctions if Russia refuses dialogue or takes any other measures to destabilise the situation in Ukraine.

EU leaders agreed on a three-phase plan. The first part takes immediate effect and involves the suspension of negotiations on the liberalisation of visas, as well as negotiations for a new agreement between the EU and Russia.

European leaders emphasised that the solution to the crisis should be through dialogue between the Ukrainian and Russian governments, as well as, “potential multilateral mechanisms”. They also explained that these negotiations should take place over the next few days and produce results within a given timeframe, failing which new measures would be imposed (second phase). European Council President Herman Van Rompuy refused to provide any further information about the deadlines in question but in a common statement the leaders announced that, “in the absence of such results the European Union will decide on additional measures such as travel bans, asset freezes and the cancellation of the EU-Russia summit. The Commission and the EEAS will take forward preparatory work on these measures”.

The Europeans also warned that if Russia took other measures to destabilise the situation in Ukraine, this would lead to, “severe and far-reaching consequences for relations between the European Union and its member states, on the one hand, and the Russian Federation, on the other hand, which will include a broad range of economic areas”. This constitutes the third phase.

European leaders explained that they would, pursue the objectives of “peace, stability and prosperity” in Europe by “using all available channels” and called on EU representatives to take all initiatives necessary. They added that the, “the EU will also participate in the multilateral mechanism (contact/coordination group)”.

They gave their support to the decision by member states, G8 members (Germany, France, United Kingdom and Italy) and the European institutions to suspend their participation in the preparations for the G8 summit in Sotchi “until further notice”.

Van Rompuy explained that the European Council will be holding a special meeting on 20-21 March but could also meet up again afterwards, if this proves necessary.

Appeal for withdrawal of troops

The European leaders approved the conclusions adopted by the Foreign Affairs Council on 3 March and, “strongly condemned the unprovoked violation of Ukrainian sovereignty and territorial integrity”. They called on Russia to, “immediately withdraw its armed forces” and allow immediate access for international monitors” which are currently banned from entering Crimea. European leaders explained that, “the solution to the crisis in Ukraine must be based on the territorial integrity, sovereignty and independence of Ukraine, as well as the strict adherence to international standards”. They also welcomed the measured response so far displayed by the new Ukrainian government.

European leaders again examined the decision of the Crimean parliament to organise a referendum on 16 March on the question of uniting Crimea with Russia and, as the Ukrainian prime minister had stressed, the Europeans also considered that, “the decision by the Supreme Council of the Autonomous Republic of Crimea to hold a referendum on the future status of the territory is contrary to the Ukrainian Constitution and is therefore illegal”.

Signing the political chapters in the Association Agreement before 25 May

European leaders also decided to sign, together with Ukraine, the political chapters of the Association Agreement, “very soon”. Van Rompuy explained that this would take place before the Ukrainian presidential elections on 25 May. The president of the European Commission, José Manuel Barroso, explained that, “this will mean the general principles and the part on political cooperation and Common Foreign and Security Policy (CFSP) in the Association Agreement. This will seal the European Union and Ukraine's political association”.

The EU intends to adopt unilateral measures that will enable Ukraine to substantially benefit from the advantages provided in the deep and comprehensive free-trade area, added European heads of state and government. They also reaffirmed their commitment to strengthening interpersonal contact between citizens of the European Union and Ukraine, which would also be done through the visa liberalisation process. The EU is also ready to immediately respond to the demands for humanitarian assistance.

European leaders are also committed to providing “strong financial backing” and welcomed the presentation of the €11 billion assistance programme the previous day by the Commission. European leaders added that, “IMF support will be critical to unlocking assistance from the European Union”. They also added that, “the immediate priority is to restore macro-economic stability through sound fiscal, monetary and exchange rate policies”. They also called on the government to urgently launch ambitious structural reforms, including those for tackling corruption and improving transparency. They also encouraged the Ukrainian authorities by way of “an inclusive process” to pursue their efforts to ensure free and fair elections, push forward constitutional reform and investigate all acts of violence. They added that, “efforts should continue to reach out to all Ukrainian regions and population groups and to ensure full protection of the rights of people belonging to national minorities, drawing on the expertise of the Council of Europe and the OSCE”.

European leaders emphasised that they were prepared to help Ukraine ensure its energy supply and called for the “efficient and consistent” implementation of the third energy package by all energy actors on the European market, including Russia.

They welcomed the adoption of sanctions against 18 Ukrainians who had been identified for embezzling funds from Ukrainian state (the other article).

Angela Merkel: if there is no other solution, economic sanctions must be considered.

The chancellor, who did not hide her preference at the start of the summit for a diplomatic solution within the contact group, told the press: "we would have preferred the decision to set it up to have been made yesterday or today", during talks between several foreign ministers in Rome. When asked about her reasons for overcoming her misgivings about sanctions, the chancellor said that the planned economic sanctions were a last resort. "The contact group is starting to take shape. If there are no diplomatic options of any kind, if there is no progress on Russia's side, sanctions must be taken. Today, we are talking about the first stage". In reference to the third stage, Dr Merkel added: "If Russia continues its military actions, there will be economic sanctions. We do not want this and will do all in our power by diplomatic means. We have not specified these measures. If there is no other solution, we will have to consider them, but maybe not announce them too soon".

The chancellor said that she expected the contact group to focus on the "question of territorial integration, the swift and fair preparation of elections, negotiations between the Russian and Ukrainian governments, the end of the occupation of public buildings, the disarmament of certain groups, the issue of linguistic minorities and issues relating to the Crimea".

In answer to a journalist who asked her whether the EU was prepared to sign the political plank of the association agreement with Ukraine before the elections, Merkel immediately replied: "Of course, this must be done in a few days or weeks with the government in place".

Poland is reassured, but warns that everybody has something to lose. The Polish Prime Minister, Donald Tusk, said that he was pleased with the outcome of this "dynamic" meeting, which had taken place against a "dramatic backdrop". And for good reason: "The time when the EU was wondering how to react is over", he said. From the moment Ukrainian Prime Minister Yatsenyuk left the room, Tusk lost no time in tabling the idea for the EU to make a proposal "as quickly as possible" to the current Ukrainian government to sign the political plank of the association agreement. "This was by no means a done deal" ahead of the meeting but, from the time Yatsenyuk also put the idea forward, "more and more heads of state started to be in favour of this scenario", Tusk said. He feels that the plank should be signed in Kiev. As for sanctions, "the debate was also a stormy one, but the result corresponds to what we wanted". The Commission and the EEAS have been tasked with "preparing a precise plan for imposing sanctions if, over the next few days, discussions with the Russian Federation" are unsuccessful. However, he warned: "we are all aware that sanctions, particularly from the second stage, could harm everybody", as they "could cover all economic sectors".

François Hollande warns of "extremely harmful consequences".

French President François Hollande said that "if there was an attempt at separatism, division, such an attempt cannot be in line with international law. I am extremely firm on this point. This is the very spirit of what the European Council has just said about requirements and sanctions". He added: "There cannot be any challenge to the territorial integrity of Ukraine, or there will be extremely harmful consequences". Hollande said that the trade chapter of the association agreement with Ukraine would be signed after the elections of 25 May, with the new legitimate government. The Commission has been given a mandate to pre-empt certain trade provisions (such as a reduction of certain customs duty). "Ukraine can be associated with the EU, but it is not its vocation to join it", Hollande concluded.

Italy welcomes positive work.

The Italian prime minister, Matteo Renzi, said "this has been a difficult and an important day, but we have done significant work in trying to heed the call for help of the people of Ukraine. We are extremely concerned, but very positive work has been done today". Ahead of his meeting in the evening with US Secretary of State John Kerry, the Italian Prime Minister held individual meetings with David Cameron, Angela Merkel, François Hollande and Poland's Prime Minister Donald Tusk, before the start of the summit.

Di Rupo feels that the EU stayed vague over the next stages in the hope of never reaching them.

Belgian Prime Minister Elio Di Rupo said that the heads of State and government of the EU had declined to be "specific" over the substance of the phase-three sanctions, in the hope "that we will not get to the second". He said that the EU's response must be "proportionate, whilst bearing in mind the pre-eminent wish for dialogue", rather than "showing that one is stronger than the other". He referred to the long-scheduled meeting of 20 and 21 March, "but we can see each other at any time if the situation so requires".

Cameron, defence of values ahead of the interests of each.

British Prime Minister David Cameron said that the EU had taken "a good step forward" and sent out a clear message to Moscow that it cannot be "business as usual" with Russia. If the EU should get as far as taking measures which would have "far-reaching consequences" for relations with Moscow, no areas should be off the table. Obviously, this will have consequences "for Britain" in the field of financial services, or regarding energy for other states but, if the Union wants to stand up against the aggression to which one of its neighbours is falling victim and fight for the rule of law, all and every area must be considered. He added that during the discussions there was a "strong inclination" in favour of this. He went on to warn that if progress is not made quickly, the second phase could come very soon. (CG with AN/EL/JK/LC)

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