The EU is launching energy sanctions against Russia by banning coal imports

If gas cannot, coal will still be available. And oil from there. This was announced by the President of the European Commission, Ursula von der Layen, together with the Head of European Diplomacy, Josep Borrell, on Tuesday. As the CEO of the company explained in the proposal he submitted to the 27th, the European Union will impose a “ban on the import of coal from Russia in the amount of 4000 million euros per year. “This will reduce Russia’s other important source of revenue.”

In addition, the EU wants to approve a “complete ban on transactions at four major Russian banks, including VTB, the second largest Russian bank. These four banks represent 23% of the market share in the Russian banking sector. “This will further weaken Russia’s financial system.”

Third, the EU continues to “ban Russian ships and ships operated by Russia from entering EU ports. Some exceptions include basic products such as agriculture and food products, humanitarian aid and energy. In addition, we will propose a ban on road transport operators in Russia and Belarus. This ban will severely limit the Russian industry’s ability to obtain basic goods.

“The fourth,” von der Leyen said, would be “the next targeted export bans, worth $ 10 billion, to areas where Russia is vulnerable.” “For example, quantum computers and advanced semiconductors, but also sensitive machines and transport equipment.”

Next, there will be “a further ban on $ 5.5 billion worth of imports to stop the flow of money from Russia and its oligarchs, from products ranging from timber to cement to seafood to alcohol.” “In doing so, we are also closing the gap between Russia and Belarus.”

Finally, von der Leyen declared: “We are taking very specific measures, such as a general EU ban on Russian companies participating in public procurement in member states, or the exclusion of any financial support, be it European or national. Russian public bodies. “European tax money should not go to Russia in any way.”

Nor is the fifth package of sanctions lacking “more of a list of people, as explained by the High Representative, Josep Borrell.”

And von der Leyen added: “That’s not all. We are working on additional sanctions, as well as oil imports, and will discuss some of the ideas put forward by member states, such as specific taxes or payment channels and an escrow account.

European Commission Vice President for Economic Affairs Valdis Dombrovskis expected this on Tuesday: “We need to reach a consensus among member states and there is a discussion about what can be done in the field of energy. Such as coal and oil. The fifth sanctions package is coming to an end, I can not give details, but the energy is considered as a package. It will not only affect energy, it will also affect other sectors such as trade, transport and energy such as coal. European Commission President Ursula von der Leyen and European Union Foreign Minister Josep Borrell will visit Kiev this week to meet with Ukrainian President Volodymyr Zelensky in support of the country after a trip. Also the President of the European Parliament Roberta Metzola. The community leader also said Monday that he would assist Ukraine in gathering evidence of possible war crimes committed by Russian troops in Bucha. And the European PP, the main political group in the European Parliament and which includes Dombrowski and von der Leyen, on Tuesday called for an “immediate embargo on oil and coal” and an end to gas imports “as soon as possible”.

In short: it starts with coal and oil would come later, but gas, for the time being, is not touched.

EU Commissioner for Economic Affairs Paolo Gentiloni told a meeting of EU finance ministers (Ecofin) in Luxembourg on Tuesday: “We are discussing the status of the latest sanctions: their implementation, the shortcomings, what we can do. And reinforce them if necessary. Because every day we are affected by these images [de civiles asesinados]; “We have new satellite images of what is happening in Bucha and we need to respond.” Gentiloni, yes, said that the new package of sanctions “is being worked on” and that it includes “addressing the risks of prevention”, while “there is debate about the possibility of tightening them, but no decision has been made yet.”

However, on Monday night, Gentiloni, after the Eurogroup, made information that at the moment does not seem to be on the table. “We are not going to make a decision on the gas embargo now,” he admitted.

French Economy and Finance Minister Bruno Le Maire, who holds the rotating presidency of the EU Council this semester, announced the tightening of sanctions at Ecofin on Tuesday: “The main principle of sanctions is 27. Is what makes them effective. This is what makes them important in their appeal against the Russian state and Vladimir Putin. Negotiations will be held in the coming hours. The President of the Republic yesterday made it very clear that the energy sector could be part of these sanctions, he made it clear yesterday that he was open to expanding coal and oil sanctions. Let’s see what the position of the other member states will be. The position of the French presence is very clear. “We are ready to implement sanctions, oil and coal are an opportunity, and we must negotiate and build unity in the 27 member states.”

The Lithuanian Minister, Gintare Skისტste, was also rude about energy: “We have to order Russia as its main source of income: its energy sector. And I think we need to reduce purchases from Russia: oil, gas and coal. Lithuania is the first country in the European Union to bid farewell to Russian gas. And I think we should also talk about the Russian financial system and remove the largest Russian banks from swift, Sberbank and Gazprombank. “What we are doing today will be tomorrow’s story and we must show solidarity with the Ukrainian people.”

But not everyone sees it the same way for fear of a boomerang effect in countries like Germany or Hungary. Austrian Finance Minister Magnus Bruner said during a visit to the Eurogroup on Monday that “we must be cool” about sanctions: “War crimes are surprisingly surprising. But you need to keep calm when it comes to sanctions. “We, like Germany, are very cautious about the gas embargo because we fear that the consequences for us will be greater than for Russia.”

For his part, Finance Minister Christian Lindner said: “The international community, and especially us Europeans, must prepare the next package of sanctions. We must increase the pressure on Putin without weakening ourselves. Everything should be on the table. Our goal is to become independent of energy imports from Russia as soon as possible and to distinguish between gas, coal and oil, each of which must be treated differently, as replacement requires different periods. But it should be understandable. All economic relations with Russia must end as soon as possible. “Strict sanctions should be in place, but gas will not change in the short term.”