Sanctions, Part 10: EU To Impose €11-Billion Worth Trade, Tech Bans On Russia
The European Union will impose trade sanctions and technology export controls worth €11 billion on Russia in order to limit Moscow’s ability to maintain its “war machine.”
According to European Commission President Ursula von der Leyen, the latest EU sanctions will restrict shipments of electronic components used in Russian systems such as drones, missiles, and helicopters.
The proposals will be included in the EU’s tenth package of sanctions, which member countries are rushing through as the one-year anniversary of Russia’s full-scale invasion of Ukraine approaches on February 24.
READ: Republicans Introduce Bill To Ban Russian Uranium
“With nine packages of sanctions in place, the Russian economy is going backwards,” von der Leyen said. “To keep up this strong pressure, we are proposing a tenth package of sanctions, with new trade bans and technology export controls to Russia.”
Iran drone sanction
The proposed measures will reportedly include penalizing seven Iranian businesses in order to prevent Russia from employing Iranian drones to attack Ukrainian civilian infrastructure.
The plan will include restricting Iranian drone supply to Russia, as well as recommendations to impose sanctions on Iranian organizations, including some tied to the country’s Revolutionary Guard, von der Leyen said.
“There are also hundreds of drones manufactured in Iran, used by Russia, in the battlefield in Ukraine. These Iranian drones kill Ukrainian civilians… so for the first time we are also suggesting sanctions targeting Iranian economic operators including those linked to the Revolutionary Guards,” she added.
Von der Leyen’s plans focus on additional electronic weaponry components for equipment such as drones, missiles, helicopters, and thermal cameras. During an EU-Ukraine summit earlier this month, she hinted at some of the measures.
The EU is poised to agree on further measures, but the precise plans must still receive unanimous support from all bloc member states.
If the proposals are endorsed unanimously by the EU members, “we have banned all tech products found on the battlefield,” she said.
Sanctions part 10
According to two EU diplomatic sources who spoke on the condition of anonymity, the Commission has requested that four more Russian banks, including the private Alfa-Bank, the online bank Tinkoff, and the commercial lender Rosbank, be removed from the global messaging system SWIFT.
Rubber and asphalt would also be reportedly added to the EU’s list of prohibited Russian imports, and the group would restrict Russia Today’s Arabic program from its territory.
Additional restrictions on EU exports to Russia were intended to limit Moscow’s ability to manufacture armaments and equipment used against Ukraine. According to the sources, these will include electronic circuits and components, thermal cameras, radios, and heavy vehicles, as well as steel and aluminum used in construction and machinery for industrial and construction reasons.
They further stated that the Commission recommended additional limits on European joint ventures with Russia and Russian citizens serving on European boards.
The EU intends to broaden its sanctions against Russia while also closing gaps in existing penalties, including tighter curbs on selling satellite data to China, which sources say could be passed on to Russia.
Notably absent in the discussion is sanctioning Russia’s uranium exports, which was rumored to be part of the tenth sanction package, as well as to prohibit European firms from importing uranium from Moscow.
Information for this briefing was found via Financial Times, Reuters, Toronto Star, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
