Brussels, 17/07/2014 (Agence Europe) - On Wednesday 16 July, the European Council decided to strengthen the EU sanctions in connection with the crisis in Ukraine, urging the Council to extend the legal basis and add new individuals and bodies, some of them Russian, to the sanctions list.
German Chancellor Angela Merkel said there had been a deepening of economic sanctions and it was now the end of level 2 and the beginning of level 3 sanctions.
In their conclusions document, Europe's leaders regret that the measures requested on 27 June had not been taken the way they should. The measures in question were agreement on a verification mechanism, under observation by the OSCE, for the ceasefire, along with effective border control, an opening of in-depth negotiations on implementation of the Porochenko (Ukrainian president) peace plan, release of hostages and the return to the Ukrainian authorities of three border crossing points (see EUROPE 11110). The leaders therefore decide to extend the restrictions in order to target bodies, including from the Russian Federation, that are providing material or financial support for action that jeopardises or threatens the sovereignty, territorial integrity and independence of Ukraine.
The heads of state instructed their ministers to introduce the necessary legislation and draw up an initial list later this month of people and bodies, including in Russia, to which the strengthened criteria will apply. Though EU foreign ministers are to meet on 22 July and an initial working meeting took place on 17 July, a European source said that the Foreign Affairs Council was too soon for the draft legislation to be prepared. Some 72 individuals and 2 bodies are already under pain of sanctions because of the Ukrainian crisis. European leaders asked for the option of targeting individuals or bodies providing active material or financial support to Russian leaders responsible for the annexation of Crimea or the destabilisation of eastern Ukraine to be examined.
For Crimea and Sebastopol, the European summit asked the European Commission and the European External Action Service (EEAS) to unveil proposals for further measures, such as a restriction on investment. The conclusions document states that the summit hopes that international financial institutions will abstain from financing any project that explicitly or implicitly recognises the illegal annexation of Crimea and Sebastopol.
The heads of state asked the Commission to re-assess the EU-Russia cooperation programmes to potentially, and on a case-by-case basis, decide to suspend implementation of bilateral and regional EU cooperation. The leaders say, however, that projects only dealing with civil society and cross-border cooperation will continue. The draft conclusions document only mentioned continuation of projects involving civil society, but Finnish Prime Minister Alex Stubb is concerned that his country will not be able to continue cross-border cooperation with Russia and has asked other countries bordering on Russia for their support in recent days to ensure that this cross-border cooperation not covered by the sanctions.
The president of the European Council, Herman Van Rompuy, said the summit had halted public money for European policies from flowing into Russia. The summit called on the European Investment Bank (EIB) to suspend the signing of any new financing deals in Russia. Europe's leaders stated that member states would coordinate their positions on the board of the European Bank for Reconstruction and Development (EBRD) with a view to suspending the financing of any new operations.
The summit pointed out that the European Commission, EEAS and member states have done preparatory work on targeted sanctions, as requested in March (see EUROPE 11044) in order to ensure any new measures can be taken in a timely fashion. The leaders said they are determined to meet up at any time if events makes this necessary.
The member states decided to re-authorise export licences for equipment that can be used for domestic repression in Ukraine (which had been suspended on 20 February, see EUROPE 11023). A European source said that this would allow the sending of bullet-proof vests and helmets needed by the Ukrainian army.
Hailing the OSCD's willingness to send an observer mission to the Ukrainian border, Europe's leaders said that the EU and its member states were prepared to consider providing substantial support to the mission.
Call for a ceasefire
In the conclusions document, the heads of state and/or government called for a peaceful settlement to the crisis, stressing the need for agreement to be found as a matter of urgency on a genuine and sustainable ceasefire observed by all parties in order to create the necessary conditions for implementation of the peace plan unveiled by Ukrainian president Petro Porochenko. They expressed support for the diplomatic efforts of Ukraine, Russia, France and Germany, and the 2 July joint statement (see EUROPE 11114). The summit condemned the illegal activity of armed militants in eastern Ukraine and urged Russia to make active use of its influence on these armed groups and, in a bid to ensure rapid de-escalation, to stop arms and fighters crossing the border.
The summit stressed the importance of Ukraine ratifying the EU-Ukraine association agreement so that is can be rapidly applied on a provisional basis. (CG and MD)