EU To Ban Steel Imports From Russia And Luxury Goods Exports To Moscow

EU flags fly in front of the headquarters of the European Commission in Brussels, Belgium on October 2, 2019. REUTERS/Yves Herman/File Photo

BRUSSELS, March 11 – The European Union will suspend Moscow’s privileged trade and economic regime, stop its use of crypto assets and ban EU exports of luxury goods and imports of iron and steel products to Russia, the head of the European Commission said. The European Commission said on Friday.

The measures represent the fourth set of sanctions against Russia over its invasion of Ukraine last month agreed with the United States and other G7 allies.

“Tomorrow we will adopt a fourth package of measures to further isolate Russia and deplete the resources it uses to finance this barbaric war,” said European Commission President Ursula von der Leyen.

Together with other Western allies, including the United States, the bloc will remove Russia’s “most favored nation” trade status. This would open the door to a bloc banning or imposing punitive tariffs on Russian goods and putting Russia on a par with North Korea or Iran. More

As a first step, the EU will ban the import of iron and steel products.

Von der Leyen said in a statement that the EU is working to suspend Russia’s membership rights in leading multilateral organizations, including the International Monetary Fund and the World Bank.

“We will make sure that Russia cannot receive funding, loans or any other benefit from these institutions,” von der Leyen said. Reuters last week reported exclusively on EU plans to deprive Russia of its IMF membership rights.

Next week, the G-7 allies will try to coordinate against Putin’s “pals” and will seek to ensure that Russia and its elites cannot use cryptoassets to circumvent sanctions.

Later, senior EU diplomat Josep Borrell added that he was putting forward proposals to blacklist more Russian oligarchs, businessmen and companies. The EU has already faced dozens of travel bans and asset freezes.

The new sanctions will affect people working in the steel industry, as well as those who provide financial services, military products and technology to the Russian state, Borrell said.

“With these sanctions, we will continue to target the oligarchs, the elite associated with the regime, their families and prominent businessmen who are involved in sectors of the economy that provide a significant source of income for the regime,” Borrell said, without specifying when the new lists could be passed.

EU officials declined to comment on whether Chelsea Football Club owner Roman Abramovich was among the people who could be included in the list. The UK froze his assets on Thursday.

The European Union will specifically ban the export of luxury goods from the EU to Russia in order to strike at the Russian elite.

Finally, the bloc will ban new European investment in Russia’s energy sector.

“This ban will cover all investment, technology transfer, financial services, etc. for energy exploration and production – and thus will have a big impact on Putin,” von der Leyen said.

Imports of EU goods from Russia totaled 145 billion euros ($158.7 billion) in 2019, of which 101 billion euros came from oil and gas, according to the EU statistical office Eurostat.

($1 = €0.9137)

Reporting by Philip Blenkinsop, Sabina Siebold, Marin Strauss and Francesco Guaracio; Editing by Will Dunham and Barbara Lewis

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