The European Commission unveiled, on Wednesday 28 September, a new package of sanctions aimed at weakening the Kremlin and its supporters and undermining the Russian war effort, in response to Russian President Vladimir Putin’s recent announcement to mobilise 300,000 reservists and the holding of manipulated referendums in the occupied Ukrainian territories, both of which are leading to an escalation of Russia’s military invasion of Ukraine.
“We’re determined to make the Kremlin pay” for its illegal war in Ukraine and our sanctions will “weaken the ability of the Russian economy to modernise”, said its president, Ursula von der Leyen, presenting the sanctions package, which journalists were not able to ask questions about.
She cited three categories of sanctions: - the registration of new individuals and entities participating in or benefiting from the war; - additional trade restrictions worth “€7 billion”; - the creation of a “legal basis” for a cap on the international price of Russian oil and oil products in the EU.
On this last point, Ms von der Leyen recalled that the G7 countries agreed in principle on such a cap, which will make it possible to “reduce Russia’s revenues” and “maintain the stability of the market” for oil (see EUROPE 13013/1). An international coalition is needed for such a measure to be effective.
Despite some exceptions, the EU will ban the import of Russian crude oil into the EU starting 5 December (see EUROPE 12965/9). The introduction of a price cap is intended to allow dependent third countries to continue importing Russian oil while limiting the economic windfall for Russia. “Some developing countries still need Russian oil supplies, but at low prices”, Ms von der Leyen noted.
On trade restrictions, the Commission suggests that Member States introduce a new ban on the import of certain Russian products into the EU, as well as an extension of the ban on the export of European products to Russia, with Ms von der Leyen citing “aviation parts, electronic components and specific chemical substances”.
It should be noted that a national of an EU country would no longer be entitled to sit in a Russian group. The participation of former Austrian Foreign Minister Karin Kneissl on the board of Rosneft, the former German Chancellor Gerhard Schröder on the board of NordStream and former French Prime Minister François Fillon on the boards of Sibur and Zarubeshneft had caused an outcry in the countries concerned.
For Ms von der Leyen, it is a question of ensuring that Russian state groups do not benefit from “the expertise” of European personalities.
The High Representative of the Union for Foreign Affairs, Josep Borrell, detailed the sanctions which will now target “more than 1,300” personalities - “political leaders, oligarchs, propagandists” - and entities supporting and benefiting from the Russian invasion, including in the militarily occupied Ukrainian territories of Donetsk, Luhansk, Kherson and Zaporizhzhia.
This includes those involved in the holding of manipulated referendums in the Ukrainian territories, high-ranking Russian Ministry of Defence officials involved in the supply of arms to Russian or pro-Russian troops.
In addition, a new category of sanctioned persons has been created, namely those who contribute in their activities to circumventing EU sanctions. They will “not necessarily be Russians”, Mr Borrell said.
Finally, the High Representative mentioned an extension of the geographical coverage of the sanctions targeting Crimea, Donetsk and Luhansk and approved earlier this year. This will include areas outside the Donbas occupied by the Russian army, such as the ‘oblasts’ of Zaporizhzhia and Kherson, which were not covered by the previous sanctions.
The measures announced by Ms von der Leyen and Mr Borrell were subsequently discussed by the Member States’ ambassadors to the European Union (Coreper). There is “clear unity on the need to decide quickly” even if, during this first discussion, Member States raised different issues, an EU source noted. (Original version in French by Mathieu Bion)