Brussels, 25/07/2014 (Agence Europe) - On Friday 25 July, the European Union officially adopted new sanctions in connection with the situation in Eastern Ukraine, adding 15 people and 18 entities “responsible for action against Ukraine's territorial integrity to the list of those subject to an asset freeze and a visa ban”. There are therefore now 87 people and 20 entities subject to an assets freeze and visa ban.
The member states also formally adopted a widening of the designation criteria in the legal basis for the restrictive measures. “This paves the way for imposing asset freezes and visa bans on persons and entities that actively support or are benefiting from Russian decision makers responsible for the annexation of Crimea or the destabilisation of Eastern Ukraine”, the Council stated in a press release. These decisions were due to be published in the Official Journal of the EU in the evening of Friday 25 July and to come into force at the same time. As EUROPE went to press, the decisions had not yet been published. On the basis of these new criteria, the EU ambassadors are due to hold discussions on Monday 28 July about the addition of the names of people and entities, and to discuss additional measures for limiting trade with, and investment in, Crimea and Sevastopol.
Elsewhere on Thursday 24 July, the ambassadors again debated the proposals of the European Commission and European External Action Service (EEAS) on restrictive measures - including on access to capital markets, defence, dual-use good and sensitive technologies. The ambassadors tasked the Commission with preparing legislative acts in the four domains. These legislative proposals should be ready for Tuesday 29 July when the EU ambassadors meet again to discuss these measures. “The proposals will reflect the discussions” between the ambassadors, said a European source. A Commission spokesperson stated that the work was progressing “swiftly”. A source said that there would still be “serious debates” and “considerable discussions” in order to define the measures.
South Stream and Yamal projects targeted. Targeting sensitive technologies that are indispensable for the development of the South Stream and Yamal projects, the sanctions proposed against Russia could put a brake on Russia's big energy projects - both in the gas pipeline sector, in which Russia dominates, and in that of liquefied natural gas (LNG), a greatly expanding sector for Russia but one in which it is not yet a key player. If the sanctions are applied, they could delay the South Stream gas pipeline (which is led by Gazprom and intended to link Russia to the European market passing under the Black Sea and circumventing Ukraine) and the Yamal LNG plant in the Arctic Ocean (which is led by Novatek). The sanctions effectively aim at restricting access to pipes for the construction of the pipelines, to drilling tubes for oil or gas, to floating or submersible drilling platforms, to floating cranes and to dredging equipment. “If Europe's engineering partners are prevented from working on one of the big Russian oil or gas projects due to sanctions, they [the projects] will almost certainly be delayed”, fears a consultant working on the Russian energy projects. The South Stream project, in which energy companies ENI (Italy), EDF (France), OMV (Austria) and Wintershall (Germany) are participating, depends heavily on European know-how. The same goes for the Yamal project, in which energy companies Total (France) - which specialises in deep sea drilling - and CNPC (China) are participating. (CG and EH)