The EU will hit Russia with €11 billion worth of trade bans and technology export controls as the bloc seeks to weaken Moscow’s ability to keep its “war machine” running, the European Commission president has said.
The latest EU measures will limit the export of electronic components used in Russian systems such as drones, missiles and helicopters, Ursula von der Leyen told MEPs in Strasbourg on Wednesday.
The EU will seek to curb shipments of Iranian drones to Russia, with proposals to impose sanctions on Iranian organizations, including some linked to the country’s Revolutionary Guard, she said.
The proposals will be part of the tenth package of EU sanctions that member states are enforcing as February 24 marks the first anniversary of Russia’s full-scale invasion of Ukraine. It comes at a time when the EU is stepping up its scrutiny of enforcing existing rounds of sanctions while seeking ways to further damage the Russian economy.
“With nine packages of sanctions, the Russian economy is going backwards,” said von der Leyen. “To keep up this strong pressure, we are proposing a tenth sanctions package with new trade bans and technology export controls to Russia.”
The proposals will add certain rare earth compounds, integrated circuits and cameras to the list of restricted products, under draft rules submitted to the Financial Times. Under the proposals, which must be unanimously approved by the 27 member states, they will also ban the transit through Russia of dual-use goods and technology exported from the EU.
They also stand ready to expand restrictions on Kremlin-affiliated media and individuals suspected of spreading false narratives and “information wars,” the EU said.
EU High Representative Josep Borrell added that he would present proposals to sanction nearly 100 other individuals and entities, including those involved in deportations and forced adoptions of Ukrainian children sent to Russia.
The new round of sanctions will create obligations to report assets held by the Central Bank of Russia to the European Commission and national authorities amid frustration in Brussels over a lack of clarity over where the assets are located.
Von der Leyen explained that this measure was necessary “in view of the possible use of public Russian assets to finance reconstruction in Ukraine”.
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The EU also pledged to step up efforts to track down assets hidden by sanctioned oligarchs and persuade countries outside the Union to keep up with Western sanctions regimes.
Late last year, Brussels appointed David O’Sullivan, a former EU ambassador to the US, as envoy to spearhead the Commission’s efforts to ensure compliance around the world.
The Commission has paid increasing attention to closing loopholes following the imposition of several rounds of sanctions over the past year. Valdis Dombrovskis, EU Executive Vice-President, said on Tuesday member states wanted to work to ensure “consistent” implementation of the rules across the bloc, while tackling circumvention of the measures around the world.
He said the existing rounds of sanctions against Russia’s fossil fuel sector were having the desired effect, noting that Moscow’s fiscal position was “deteriorating rapidly”.
However, Swedish Finance Minister Elisabeth Svantesson said it was difficult to measure the impact of the sanctions, citing IMF forecasts for Russia’s economy to grow modestly this year.
“It’s definitely having an impact and the Council would like the Commission to follow this very closely and see what types of sanctions are in place [are] most effective,” she said. “It’s very difficult to measure.”