The key to new sanctions against Russia

Russian vodka is over. And caviar. Russian trucks will not be able to transport products to the EU – unless they carry medicines or food. Russia, for example, will not be able to export timber; But you can not buy a technological product. And restrictions on their banks continued. Of course, it will continue to sell millions of euros in gas and oil, and its millionaires will be able to continue buying diamonds from European jewelers.

The list of individuals and entities is growing by 217 people and from 18 companies, including 179 leaders from Donetsk and Lugansk and, presumably, the daughters of Russian President Vladimir Putin. 1,091 individuals and 80 entities have been sanctioned since 2014, according to a European Commission statement.

The fifth package of sanctions, approved by the 27th ambassadors to the EU this Thursday night, has already undergone a written procedure and goes to the official newspaper, which is the last step in its official entry into force.

Thus, in the case of coal, the application deadline was eventually extended to 120 days, although the European Commission and countries like Poland observed 90 days. In fact, this term refers to the term of valid contracts. Many expire earlier, but some will last until August, so the embargo will not take full effect within four months. And it is the least important energy product in trade between the EU and Russia, for example, compared to gas and oil.

The measure, according to Brussels, “affects a quarter of all Russian coal exports, which is a loss of about 8,000 million euros a year for Russia.”

As for the approved financial measures, there is a “complete ban on transactions and freezing of assets of four Russian banks isolated from the markets,” the European Commission said in a statement: “This represents 23% of the Russian market share. “The banking sector will further weaken Russia’s financial system.”

The 27 also banned “the provision of high-value cryptocurrency services to Russia, which will help close potential gaps,” Brussels said. The ban also applies to “giving confidence advice to Russian millionaires, which will complicate their accumulation of wealth in the EU.”

With regard to the transport sector, which is the focus of new sanctions, it imposes “a complete ban on Russian and Belarusian freight operators operating in the EU, with the exception of basic items such as agriculture and food, humanitarian aid and energy. “.

It also approved a ban on Russian-flagged vessels entering EU ports, except for medical, food, energy and humanitarian purposes, including exceptions.

Export bans of € 10,000 million have been imposed in areas where Russia is vulnerable to high dependence on EU supplies. These include, for example, quantum computing, advanced semiconductors, sensitive machines, transportation, and chemicals. It also includes specialized catalysts for use in the factory industry. “The goal is to further degrade Russia’s technological base and industrial capabilities,” the European Commission said in a statement.

It also added “jet fuel and fuel additives that can be used by the Russian military.”

As for the extension of the import ban, it will increase to 5,500 million, ”which includes cement, rubber products, wood, spirits (including vodka), spirits, high-quality seafood (including caviar) and anti-circumvention measures. Import of potassium from Belarus. These measures will also help close the gaps between Russia and Belarus.

In addition, Russia is excluded from state contracts and European money. This is a “complete ban on the participation of Russian citizens and entities in EU state contracts.” In this regard, “the competent authorities may allow limited exceptions when there is no viable alternative.”

What the EU is asking for is a “restriction of financial and non-financial support to publicly owned or controlled Russian entities under EU, Euratom and Member State programs. For example, in addition to previously announced measures in the field of research and education, the European Commission will cancel its participation in all current grant agreements with Russian public agencies or related parties and suspend all related payments under Horizon 2020 and Horizon Europe, Euratom and Erasmus +. No new contracts or agreements will be concluded with Russian state bodies or related entities under these programs. ”

Finally, bans on the export of banknotes and the sale of securities apply to all official currencies of the European Union.