The European Union (EU) decided to impose a new set of economic and individual sanctions against Russia in light of the continuing aggression against Ukraine and annexation of Ukraine’s Donetsk, Luhansk, Zaporizhzhia and Kherson regions.
The package comprises several harsh measures aimed at increasing pressure on the Russian government and economy. It established the legal framework for a price cap on the shipping of Russian oil to third countries as well as further restrictions on the shipping of crude oil and petroleum products from Russia.
EU’s High Representative for Foreign Affairs and Security Policy, Josep Borrell said, “This new set of sanctions against Russia demonstrates our resolve to put an end to Putin’s war machine and counter his most recent use of phoney ‘referenda’ and illegal takeover of Ukrainian territory.”
Outlining the key measures he explained that, “We are putting further pressure on Russia’s military economy, reducing its import and export capabilities, and moving quickly to break our dependence on Russian energy. We are also going after the people who illegally annexed Ukrainian territory. The EU will support Ukraine for however long it needs to.”
According to the sanctions, It will be prohibited to provide maritime transport and technical assistance, financial assistance, related to the maritime transport of crude oil (as of December 2022) or petroleum products (as of February 2023) from Russia.
The price cap is expected to drastically cut down revenue that Russia earns from oil after war with Ukraine inflated global energy prices. The oil price cap can also serve to stabilise global energy prices.
Additionally, the EU is extending the import ban on steel products that either originate in Russia or are exported from Russia. Further import restrictions are also imposed on wood pulp and paper, cigarettes, plastics and cosmetics as well as elements used in the jewellery industry such as stones and precious metals, that altogether generate significant revenues for Russia. The sale, supply and export of additional goods used in the aviation sector will also be restricted.
The package agreed today also comprises:
- Sanctioning of individuals and entities that have played a role in the organisation ofillegal “referenda”, representatives of the defence sector, and well-known persons spreading disinformation about the war. The Council also decided to broaden the listing criteria on which specific designations can be based, in order to include the possibility to target those who facilitate the circumvention of EU sanctions.
- Extension of the list of restricted items which may contribute to Russia’s military and technological enhancement or the development of its defence and security sector.
- Prohibition to sell, supply, transfer or export civilian firearms and their essential components and ammunition, military vehicles and equipment, paramilitary equipment and spare parts.
- Ban on EU nationals to hold any posts on the governing bodies of certain Russian state-owned or controlled legal persons, entities or bodies
- List of state-owned entities that are subject to the transaction ban of the Russian Maritime Shipping Register, a 100% State-owned entity which performs activities related to the classification and inspection of Russian and non-Russian ships and crafts.
- Ban of the provision of crypto-asset wallet, account or custody services to Russian persons and residents.
Prohibition to provide architectural and engineering,IT consultancy services and legal advisory services to Russia