Brussels, 01/08/2014 (Agence Europe) - The economic sanctions against Russia in connection with the destabilisation of Ukraine came into force on Friday 1 August. They were published in the Official Journal of the European Union on Thursday 31 July and will remain in force until 31 July 2015. While the decision on these restrictive measures will be kept under constant review, the restrictive measures are subject to a review on 31 October 2014 at the latest, the Council decision states. “In order to maximise the impact of the measures (…) the Union shall encourage third states to adopt restrictive measures similar to those provided for in this decision”, the Council decision also states.
It is now prohibited for any EU national or company to purchase, sell, provide brokering or assistance in the issuance of or “otherwise deal with transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 1 August 2014 by (…) a major credit institution or other major institution (…) established in Russia with over 50 % public ownership”, their subsidiaries outside the EU or those acting on behalf of them. According to the Offical Journal, five banks are concerned - Sberbank, VTB Bank, Gazprombank, Vnesheconombank (VEB) and Rosselkhoszbank.
The EU has also imposed an embargo on the import and export of weapons and related material - including arms and munitions, military vehicles and equipment, paramilitary equipment and spare parts for these articles coming from, or destined for, Russia. This embargo covers all the items on the EU common list of military equipment. The export of goods and dual-use technologies intended for military purposes in Russia or for military end-users in this country is also prohibited. All items on the EU list of dual-use goods are involved. For arms and related material, just as for these dual-use goods and technologies, it is inter alia forbidden to supply technical assistance, brokering services, financing or financial aid. These measures do not concern contracts signed before 1 August 2014.
The sale, supply, transfer or export to Russia of certain energy-related equipment and technology will require prior authorisation by competent member state authorities. Export licences will be denied if products are destined for deep water oil exploration and production, Arctic oil exploration or production, or shale oil projects in Russia. This applies for contracts concluded from 1 August 2014 onwards.
The measures were decided upon by the member states' ambassadors to the EU on 29 July and formally adopted by the Council by written procedure on 31 July. (CG)