EU: second package of sanctions against Russia enters into force

The second package of EU sanctions against Russia enters into force. The additional restrictive measures were posted in the EU's Official Journal at midnight on Friday.

The EU has decided to impose sanctions on Russian President Vladimir Putin and Foreign Minister Sergei Lavrov, but also on an additional package of individual and economic measures that will also cover Belarus for its involvement in the unprovoked and unjustified military offensive carried out by the Russian Federation against Ukraine, the Council says.

On individual sanctions, in addition to freezing the assets of the Russian President and Foreign Minister, the EU will impose restrictive measures on members of the National Security Council of the Russian Federation who supported Russia's immediate recognition of the two non-government-controlled regions of Donetsk and Luhansk as independent entities. The sanctions will also be extended to the other members of the Russian State Duma, who ratified the governmental decision of the Treaty of Friendship, Cooperation and Mutual Assistance between the Russian Federation and the two entities.

In addition, the EU will also target those who facilitated the Russian military attack from Belarus.

The adopted package further expands the existing financial restrictions, thus limiting Russia's access to major capital markets. It also prohibits the listing and provision of services in relation to shares of Russian state-owned entities on EU trading venues. In addition, it introduces new measures that significantly restrict financial inflows from Russia into the EU by prohibiting the acceptance of deposits in excess of certain values from Russian nationals or residents, the holding of accounts of Russian clients by EU Central Securities Depositories, and the sale of euro-denominated securities to Russian clients.

These sanctions will target 70% of the Russian banking market and key state-owned companies, including in the defence sector. They will raise Russia's borrowing costs, increase inflation and gradually erode Russia's industrial base. Additional measures are being taken to prevent the Russian elite from hiding their wealth in safe havens in Europe.

In the energy sector, the EU will ban the sale, supply, transfer or export to Russia of certain goods and technologies in oil refining and impose restrictions on the provision of related services.

By introducing such an export ban, the EU intends to hurt the Russian oil sector and make it impossible for Russia to upgrade its oil refineries.

Russia's export revenues amounted to €24 billion in 2019.

The EU also introduced an export ban covering goods and technology in the aviation and space sectors, as well as a ban on the provision of insurance and maintenance services related to these goods and technology. The EU will also ban the provision of related technical and financial assistance.

This ban on the sale of all aircraft, spare parts and equipment to Russian airlines will undermine one of the key sectors of the Russian economy and the country's connectivity, as three quarters of Russia's current commercial aircraft fleet was built in the EU, the US and Canada.

The EU has imposed further restrictions on exports of dual-use goods and technology, as well as restrictions on exports of certain goods and technology that could contribute to Russia's technological improvements in the field of defence and security.

This will include products such as semiconductors or cutting-edge technologies.

The EU has also decided to impose sanctions on visa policy. Diplomats, other Russian officials and businessmen will no longer be able to benefit from the visa facilitation provisions, which allow preferential access to the EU. This decision will not affect ordinary Russian citizens.

The European Union condemns in the strongest possible terms Russia's unprovoked and unjustified military attack on Ukraine, as well as Belarus' participation in this attack.

It demands that Russia immediately cease its military actions, unconditionally withdraw all forces and military equipment from the entire territory of Ukraine and fully respect the territorial integrity, sovereignty and independence of Ukraine within its internationally recognised borders. The European Council calls on the Russian-backed armed formations to respect international humanitarian law and to stop the disinformation campaign and cyber attacks.

The use of violence and coercion to change borders has no place in the 21st century. Tensions and conflicts should be resolved exclusively through dialogue and diplomacy. The EU will continue to work closely with its neighbours and reiterates its unwavering support and commitment to the sovereignty and territorial integrity of Georgia and the Republic of Moldova. It will continue its strong coordination with partners and allies within the UN, OSCE, NATO and G7.