Two months ago, the European Union approved the 8th package of sanctions against Russia in response to its unprovoked war against Ukraine. On December 4, the European Commission prepared a new package of sanctions, which, in particular, will hit the operations of Russian banks and media.
Source: Financial Times.
Ambassadors of 27 EU countries will discuss new sanctions
Ambassadors of 27 EU countries can discuss and approve new restrictions against Moscow on December 12. However, if necessary, they will also be addressed at the EU leaders’ summit next Thursday, December 15.
Restrictions against the mining industry in Russia
In the new package of sanctions, the EU proposes to ban investment in the Russian mining industry, as it is one of the country’s largest industries, bringing tremendous profits.
Moreover, according to the Organization for Economic Cooperation and Development, this sector of the aggressor country’s economy accounted for a quarter of foreign investment in the country before the full-scale war in Ukraine.
Sanctions block Russia’s ability to finance the war in Ukraine
The ban further erodes Russia’s economy and the Kremlin’s ability to finance the war against Ukraine. However, according to the source of the Financial Times, it is likely to have exceptions for some specific products. For example, titanium and palladium, where Russia is a critical supplier.
When 27 EU countries support the proposal for such a ban. In that case, it will be the first time sanctions will be directly targeted at the metallurgical sector of Russia. Previously, according to the publication, such sanctions were not imposed due to concerns about the potential impact on global supply chains.
New economic restrictions to be imposed against Russia
Previous packages of sanctions imposed by the West against Russia have already significantly helped to push the Russian economy into recession. In the new box, the EU does not plan to stop and provides for the measures listed below.
- export controls on civilian technologies that Russia can use to support its weapons factories,
- export control of dual-use products worth more than 2.3 billion euros,
- a ban on cooperation with Russian marketing and research companies,
- a prohibition on transactions with three more Russian banks,
- a ban on four Russian propaganda media channels,
- personal sanctions against another 180 people.
Thus, a senior EU official at a conference in Brussels said that countries should expand sanctions on goods not traditionally used by the Russian armed forces.
The Financial Times noted that the European Commission refused to comment on the 9th package of sanctions.
EU oil sanctions against Russia
On December 5, new EU oil sanctions against Russia came into force. They set a ceiling price for oil, oil products, and oil originating in or exported from Russia at $ 60 per barrel.
However, this limit will be reviewed every two months. This is necessary to respond to market developments. The price limit will be set at 5% below the average market price at a particular moment.