Fresh Sanctions Against Russia

The EU and the US have adopted new sanctions against Russia, in an attempt to make it change its aggressive stand towards Russia.

Valentin Țigău, 12.09.2014, 13:06

The EU has decided to enforce, starting Friday, the newly adopted sanctions against the Russian Federation, which for the first time target the country’s energy sector. The principle that these measures are based on had been decided by the EU heads of state and government on August 30th, after the escalation of violence in eastern Ukraine and the deployment of Russian forces on the territory of that country. The decision, however, was made after several rounds of consultations, by the 28 ambassadors of the members states and the leaders of Great Britain, France, Germany and Italy, who agreed upon the measures over a phone conversation with the President of the European Council, Herman Van Rompuy.

According to the EU’s official announcement, the new sanctions make Russia’s access to the European capital markets even more difficult. Therefore, EU citizens and companies may not grant loans to five state-owned banks in Russia. Also, the funding of three companies in the energy sector will also be halted. Dual-use items, which can be used for both civil and military purposes, can no longer be exported to Russia. 24 officials from Crimea, Donbas and Moscow were added to the list of those who have been banned access to the EU and whose assets have been frozen. By the end of the month, EU representatives will conduct an assessment of the application of the peace plan in Ukraine. Depending on the results of the analysis, they might consider a total or partial modification of the sanction plan. On Thursday, the US announced the enforcement of new sanctions against Russia, targeting the financial, energy and defense sectors.

The Europeans’ agreement regarding the fresh sanctions against Russia triggered a drop at the Moscow Stock Exchange and brought the national currency, the ruble, down to a negative record against the US dollar. Also, for the first time, the Russian giant Gazprom is for the first time registering massive losses. Sanctions have caused a massive flight out and have brought Russia on the verge of recession. According to the Radio Romania correspondent to Moscow, Russia has announced retaliation measures against the western countries. Among them, restricted access to Russia’s air space and also restrictions in the automotive and naval fields. Also, gas deliveries to Poland and Slovakia have been reduced by 45%.