European Parliament announces the sixth package of sanctions against Russia

Speaking at the European Parliament plenary session, President of the Commission Ursula von der Leyen announced the sixth package of EU sanctions against Russia in response to its invasion of Ukraine. She proposed a gradual ban on the import of all Russian oil. The package also includes measures against Russia’s military officers, three major banks and certain TV channels.

These measures are smart and targeted, hitting Russia where it hurts (with maximum impact on the Russian political elite) and are well coordinated with our allies.

The sanctions are listed below.

1. Individual listings of people and entities

Restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine now apply to:

1091 People (individuals, including over 30 oligarchs):

• Travel ban
• Asset freeze
• Prohibition to provide funds

80 Entities:

• Asset freeze
• Prohibition to provide funds

2. Financial sector sanctions

We are cutting Russia’s access to capital markets of the EU, increasing borrowing costs for the sanctioned entities and gradually eroding Russia’s industrial base by:

• prohibiting any form of lending to and buying of securities issued by certain Russian banks and government (including the Central Bank)
• imposing assets freezes and financing bans on a number of Russian banks
• a full prohibition of any transactions with certain Russian State-owned enterprises across different sectors - the Kremlin’s military-industrial complex
• clarifying that crypto assets fall under the scope of “transferable securities”
• extending to all official EU currencies the prohibition on the export of banknotes and on the sale of transferrable securities
• a ban on the rating of Russia and Russian companies by EU credit rating agencies and the provision of rating services to Russian clients
• a prohibition on providing high-value crypto asset services to Russia
• a prohibition on providing advice on trusts to wealthy Russians, making it more difficult for them to store their wealth in the EU
• targeting the Russian elite by banning their big deposits in EU banks

We are also blocking Russia’s EU-held foreign exchange reserves by:

• agreeing to exclude key Russian banks from the SWIFT system, the world’s dominant financial messaging system
• prohibiting investing in projects co-financed by the Russian Direct Investment Fund. The provision of euro-denominated banknotes to Russia has also been prohibited.

This measure will stop these banks from conducting their financial transactions worldwide in a fast and efficient manner.

Fact: 70% of the Russian banking system (in assets), government and key state-owned companies, will no longer be able to refinance in EU capital markets.

3. Energy sector sanctions:

• Banning exports of specific refining technologies, adding to the existing oil equipment ban from 2014, will make it harder and more costly for Russia to upgrade its oil refineries.
• A far-reaching ban on new investment across the Russian energy sector, with limited exceptions for civil nuclear energy and the transport of certain energy products back to the EU.

4. Transport Sector:

• Ban on exports, sales, supply or transfer of all aircraft, aircraft parts and equipment to Russia.
• Ban on the provision of all related repair, maintenance or financial services.
• Closure of EU airspace to all Russian-owned, registered or controlled aircraft, including private jets of oligarchs.
• Restrictions on the export of maritime navigation goods and radio communication technology.
• A full ban of Russian and Belorussian freight road operations working in the EU (certain exceptions will cover essentials, such as agriculture and food products, humanitarian aid as well as energy).
• An entry ban on Russian-flagged vessels to EU ports (exceptions apply for medical, food, energy and humanitarian purposes).

Fact: Three quarters of Russia’s current commercial air fleet were built in the EU, the US and Canada. This means that Russia will not be able to maintain its fleet to international standards.

5. Dual-use goods and advanced technology items

Sharpening existing export controls on dual-use goods to target sensitive sectors in Russia’s military industrial complex, and limiting Russia’s access to crucial advanced technology, such as:

• drones and software for drones
• software for encryption devices
• semiconductors and advanced electronics

Extending the list of sanctioned persons and entities to include more oligarchs and business elites linked to the Kremlin, as well as companies active in military and defence areas, which are logistically and materially supporting the invasion

Fact:

•  The sanctions will hit Russia’s access to important technologies beyond dual-use goods and technologies and downgrade over time their technological capabilities
• Sanctions will stop public financing or financial assistance for trade with or investment support in Russia, including national export support

6. Trade restrictive measures: export and import bans

The EU, in collaboration with the G7 countries and other like-minded partners, has stopped treating Russia as a Most-Favoured-Nation within the WTO framework as of 15 March. This deprives Russia of key trade advantages as a WTO member.

The EU has decided to act not through an increase on import tariffs, but through a set of sanctions that comprise bans on the imports or exports of goods, notably:

• an EU import ban on those steel products currently under EU safeguard measures. Increased import quotas will be distributed to other third countries to compensate
• an EU export ban on luxury goods to directly hit Russian elites
• an import ban on all forms of Russian coal
• additional import bans, including cements, rubber products, wood, spirits, liquor, high-end seafood
• further targeted export bans – worth €10 billion – in areas in which Russian is vulnerable due to its high dependency on EU supplies. This includes, for example, quantum computing, advanced semiconductors, sensitive machinery, transportation and chemicals. It also included specialist catalysts for use in the refinery industry. This will contribute to degrade Russia’s technological base and industrial capacity
• adding jet fuel and fuel additives, which may be used by the Russian army, to the existing export ban

Fact: 

• The export ban on EU luxury goods will deprive Russian elites from goods like cars, watches, and jewellery. The import ban will cover Russian emblematic products like vodka and caviar.
• The import ban on Russian coal affects one fourth of all Russian global coal exports, amounting to €8 billion loss of revenue per year for Russia.
• On the export side, the total value of all sanctions introduced so far is €22.8 billion. This represents 25% of the EU’s export before the invasion.
• The ban of Russian imports represents a total value up to €17 billion of EU imports from Russia.

7. Excluding Russia from public contracts and European money

Full prohibition on the participation of Russian nationals and entities in procurement contracts in the EU. Restrictions on financial and non-financial support to Russian publicly owned or controlled entities under EU, Euratom and Member States programmes. No new contracts or agreements with Russian public bodies or related entities will be concluded.

Fact:

• The Commission will terminate participation in all ongoing grant agreements to Russian public bodies or related entities, and suspend all related payments, under Horizon 2020 and Horizon Europe, Euratom, and Erasmus+.

8. Visa measures

Suspension of visa-free travel for diplomats and visa facilitation for service passport holders and business people.

Fact:

• Russian holders of diplomatic passports will no longer enjoy visa-free travel to the EU.
• Russian government officials and business people will no longer enjoy facilitations such as a lower visa fee when applying for a visa.

This will not affect Russian citizens generally, who will continue to have the same benefits under the Visa Facilitation Agreement as they do currently.

9. Sanctioning disinformation actors

The state-owned outlets Russia Today and Sputnik are essential and instrumental in supporting Russia’s aggression against Ukraine. They constitute a significant and direct threat to the EU’s public order and security. This is why the EU has decided to sanction the Kremlin’s disinformation and information manipulation assets.

Immediate suspension of transmission and distribution of Russia Today and Sputnik in or directed at the EU – such as via cable, satellite, IPTV, platforms, websites and apps. All relevant licences, authorisations and distribution arrangements are suspended.

This information was published by the European Commission. To read the original article go to:  https://ec.europa.eu/info/strategy/priorities-2019-2024/stronger-europe-world/eu-solidarity-ukraine/eu-sanctions-against-russia-following-invasion-ukraine_en