The second package of targeted measures and sanctions by the European Union against Russia for its invasion of Ukraine were announced in the early hours of Friday, after the conclusion of the extraordinary European Council, European Council President Charles Michel, Commission President Ursula von der Leyen and French President Emmanuel Macron, whose country chairs the EU Council.
The package, as previously announced and as recorded in the conclusions, "covers the financial sector, the energy and transport sectors, dual-use goods as well as export controls and export financing, visa policy, additional registrations for Russians and new criteria for registrations". Von der Leyen said that Russian deposits are being targeted "so that they can no longer hide their money in safe havens in Europe".
Missing from the measures was the intention to cut Russia off from the global banking system Swift, as some countries, most notably Germany and Italy, reportedly supported by some reports from Cyprus, argued that this is a weapon that should remain in the European Union's quiver as a threat if Russia does not comply.
According to a statement by Polish Prime Minister Mateusz Moraviecki, there was no unanimity among member states regarding cutting Russia off from the Swift system, which he called a "measure with big implications", but added that he believed countries were close to unanimity.
The second package of measures was finalized in the hours before the meeting, which began at around 20:00 in Brussels (21:00 Cyprus time) and concluded after midnight, shortly after 2:00 (3:00 Cyprus time). In the preceding process, the Commission and the European External Action Service discussed the draft measures with member states in two meetings with Permanent Representatives, on Thursday morning and Thursday afternoon.
As the measures had been decided and approved by the leaders at the start of the debate, they were immediately forwarded for legislative drafting. Most of the leaders' discussion was devoted to the prospect of a third package of sanctions, what it would contain, what would trigger it and when the European Council would meet again.
The leaders also discussed the preparation of Eastern European member states to receive Ukrainian refugees, as well as the situation in Moldova which is considered a possible next target as it is not a NATO member and also has a Russian-speaking population.
Member states had until 8:00 (9:00 Cyprus time) to submit comments and at 10:00 (11:00 Cyprus time) the Permanent Representatives will meet to approve them. Then at 15:00 (16:00 Cyprus time) there will be an extraordinary meeting of the Foreign Affairs Council at which the Foreign Ministers will give their formal approval.
The measures, as announced by Ms. von der Leyen after the meeting, in addition to the additions to the sanctions list, are as follows: The measures target 70% of Russia's banking market, state-owned companies and defence-related companies. These measures are expected to increase the cost of borrowing, inflation in Russia and undermine the country's industrial base, as well as the Russian elite's deposits abroad.
Energy: An export ban that will hit the oil production industry and prevent it from upgrading. This is a sector that brought 24 billion euros in export revenues to Russia in 2019.
Transport: Ban on the sale of aircraft, parts and equipment to Russian airlines. The aim is to hit this critical sector of the Russian economy and the country's interconnectivity. As von der Leyen noted (three quarters of Russia's current passenger fleet was built in the EU, the US and Canada)
Export control export financing: Restricting access to technologies that Russia needs, such as semiconductors (chips), to develop its economy
Considerations: Ending visas for diplomats and related groups, and businessmen "who will no longer have privileged access to the European Union."
Source: CNA
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