EU unleashes new sanctions on Russia — Analysis
New restrictions target Russia’s energy sector, and restrict trade on luxury goods
On Tuesday, the European Union introduced its fourth round anti-Russian sanctions. New measures include bans for investments in Russia’s energy sector and restrictions on the export and import of luxury goods.
New economic sanctions include an end to all Russian-owned enterprises and the prohibition of certain metal imports from Russia. European agencies are also forbidden from providing credit ratings to any Russian persons or entities, and EU citizens are barred from making any new investments in Russia’s energy sector.
Oil and gas imports to the EU, however, remain unaffected. Europe relies heavily on Russia for its oil imports. Leaders in Brussels are trying to decrease that dependence but they’ve resisted the urge to impose import bans similar as those imposed by the UK and US.
New sanctions prohibit luxury goods exceeding 300 euro ($328) from being exported to Russia. This includes champagne, handbags, and cars worth over 50,000 euros (54,730). An exhaustive list of banned goods published in the EU’s legal journal also mentions luxuries like purebred racehorses and works of art, as well as mundane purchases like cotton t-shirts and cigarettes.
Nine Russian entities – including the jet fuel subsidiary of energy giant Rosneft and a number of Russian arms manufacturers and other military-industrial firms – have also been sanctioned, as have 15 individuals, among them billionaire Roman Abramovich.
These new sanctions are the third round of similar EU restrictions against Russia in recent weeks. Earlier sanctions targeted Russian lawmakers and businesspeople, the country’s financial sector, and media outlets RT and Sputnik. Since February, Russian aircraft have been banned from the EU’s airspace.
Together with other similar US and UK measures, the goal is to increase the living costs of Russians due to the conflict in Ukraine. Kristalina Georgieva, International Monetary Fund’s Managing Director, stated to CBS News that the international sanctions would have an impact on Ukraine. “severe”Russia’s economy will be negatively affected, leading to a deeper recession in the coming year.
Russian President Vladimir Putin believes that the country is capable of weathering such an event. “economic warfare,”Because of its vast resources and reserves, Russia is a major exporter. Russia responded to American sanctions Tuesday with the blacklisting of Joe Biden (the US president) and several other top US officials. According to the Russian Foreign Ministry, more American media and officials would be blacklisted. “who are Russophobic or contribute to inciting hatred towards Russia”In the very near future, more items will be added.