Brussels, 24/07/2014 (Agence Europe) - On Thursday 24 July, the EU ambassadors are believed to have decided to add 15 people and 18 entities to the sanctions list linked to the Ukrainian crisis. According to French news agency AFP, the entities comprise nine companies and nine institutions. The official adoption was due to take place by written procedure, for publication in the Official Journal of the EU at the end of the day on 25 July, or on 26 July. Without counting these new sanctions, 72 Russians and pro-Russian Ukrainians and two entities are also subject to sanctions. The legal basis for the sanctions was also due to be extended once again. At the time of EUROPE going to press, the ambassadors were still discussing additional measures to limit trade with Crimea and Sevastopol, and investment in these two territories.
The ambassadors also discussed possible sanctions in the different economic sectors. “No decision will be taken and a new meeting is planned for next Tuesday”, said a European source. The spokesperson for High Representative of the EU for Foreign Affairs and Security Policy Catherine Ashton stated that, although the proposals were being presented and discussed on 24 July, “we expect this might take longer, so there will be another meeting next week”. According to the proposal entitled “Outline of an initial package of targeted measures in the areas of access to capital markets, defence, double-use goods and sensitive technologies” - a proposal from the European Commission and European External Action Service (EEAS) that EUROPE has been able to consult - the EU is considering restrictions for access to European capital markets for Russian public financial institutions for new contracts. In concrete terms, all EU persons would be prohibited from investing in debt, equity and similar financial instruments with a maturity of over 90 days, issued by Russian financial institutions, after the entry into force of the restrictive measure anywhere in the world. €7.5 billion-worth of bonds were issued by Russian public financial institutions on EU financial markets in 2013.
An embargo on trade in arms is also part of the proposals. “The issue of how to deal with previous contracts must be addressed on the political level by the member states”, the document underlines. The text states that the EU exports arms to Russia worth €300 million, while Russia exports to the EU worth €3.2 billion. Double-use military-civilian goods could also be included. The Commission and EEAS propose a ban on exporting sensitive technologies - especially in the energy sector. The sanctions could focus on equipment linked to drilling in deep water, the extraction of shale gas and exploration in the Arctic. “The restriction on the transfer of technology in the area of energy would only target long-term production. It should not disrupt the current supply and trade of energy products”, the text states.
The EU member states need to decide by unanimity in order to take decisions. “It is up to the member states to decide on the time and modulation that they want to have for such measures. The Commission is ready to submit the necessary legislative proposals in all the areas identified, once asked by the Council”, the document states (our translation throughout).
Elsewhere, on 24 July Kalman Mizsei from Hungary was appointed as head of mission for the EU advisory mission for civilian security sector reform in Ukraine (EUAM Ukraine). This mission was established by the Foreign Affairs Council on 22 July (see EUROPE 11126). Amongst other posts, Mizsei has been EU special representative for the Republic of Moldova (2007-2011) and United Nations assistant secretary general, director of the UNDP regional office for Europe and the Commonwealth of Independent States - CIS (2001-2006). Mizsei is aged 59 and an economist by training. (CG)