EU announces plans for eighth round of sanctions against Russia

Thu 22 Sept 2022
Posted by: Phillip Adnett
Trade News

EU Sanctions Package Announced

The EU is drawing up a new round of sanctions targeting Russia as it looks to counter Vladimir Putin’s latest escalation of the war in Ukraine.

The EU high representative for foreign policy, Josep Borrell, told a press conference in New York that there was unanimity among EU foreign ministers to adopt additional measures following Putin’s latest speech, in which he hinted that Russia could use nuclear weapons.

EU ministers agreed to push ahead with their eighth round of sanctions hours after Putin’s declaration, reports Reuters.

“Additional restrictive measures against Russia will be brought forward immediately, as soon as possible in cooperation with our partners,” Borrell said, adding that the EU will continue to support Ukraine with weapons.

New sanctions

Politico reports that measures being considered include the cap on the price of Russian oil, sanctioning more individuals linked to the government and a new crackdown on luxury goods trade with Russia.

EU ministers will hold their next formal meeting in mid-October when a sanctions package could be formalised.

Borrell said he believed there would be “unanimous” support for new measures.

Russia ‘in tatters’

Speaking to CNN, European Commission president Ursula von der Leyen said previous sanctions have been very successful, leaving Russian industry “in tatters”.

As reported by the IOE&IT Daily Update, research by Yale academic Jeffrey Sonnenfeld found that sanctions on Russia are having a severe effect on its economy.

Energy security

Prior to the latest announcement, the EU had clarified restrictions imposed on certain coal, fertiliser and other Russian-origin goods issued in August, according to law firm Reed Smith.

EU FAQs clarify that restrictions do not include a ban on their transfer to third countries, and associated insurance and brokering arrangements, reports the Daily Express.

UK action

The UK has issued 1,200 sanctions against Russia so far, the fourth highest in the world according to the British Foreign Policy Group.

These sanctions cover a broad range of targets, including specific individuals, banks, luxury goods exports, and services.

The IOE&IT has a range of training tools and resources to help traders understand the Russian sanctions regime. Please click here to find out more.