Today, the European Union announced that it approved new sanctions on Russia in response to the situation in Ukraine. The array of measures to be imposed by the EU mirror elements of the sanctions imposed over the last few days by the "_blank">United States and United Kingdom. Key elements of the EU sanctions package include asset freezes on Russian banks, government officials, and elites, a trading ban on the breakaway Donetsk People's Republic (DNR) and Luhansk People's Republic (LNR) regions of Ukraine, and restrictions on dealings in Russian sovereign debt.

EU officials warned today that additional sanctions will be imposed if the situation in Ukraine escalates further, with EU leaders scheduled to meet in Brussels tomorrow to discuss the next round of potential sanctions measures. We will update this post with additional information about the sanctions once the EU publishes the final measures.

Asset Freezes

The EU announced a series of asset freeze sanctions against Russian banks, Russian government officials and elites, and members of the Russian State Duma, part of Russia's parliament. The measures will apply within the territory of the European Union, and to nationals of Member States, entities incorporated or otherwise constituted under the laws of a Member State, EU vessels, and business conducted in the EU.

  • Banks: Matching U.S. sanctions, the EU will impose an asset freeze on the Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank (VEB), Promsvyazbank (PSB), and Bank Rossiya. VEB and PSB were added to the U.S. List of Specially Designated Nationals yesterday, while Bank Rossiya has been subject to U.S. sanctions since 2014. The coordinated moves will effectively cut the banks off from the Western financial system.
  • 27 Russian officials and elites: The EU announced asset freeze and travel restrictions on 27 Russian government officials, business leaders, and their family members, including the Russian Defense Minister.
  • Russian State Duma: The EU also announced asset freeze and travel restrictions on the 351 members of the Russian Duma who voted to recognize the independence of the DNR and LNR.
  • Internet Research Company: Media reports indicate that the EU will impose sanctions on this company, which has been subject to U.S. sanctions since 2019.

Sovereign Debt

The EU announced a "sectoral prohibition" on Russian sovereign debt, prohibiting activities related to the financing of the Russian Federation, its government, and Central Bank, corresponding to similar restrictions adopted by the United States yesterday.

Trading Ban on Separatist Regions

The latest EU measure establishes a trading ban on the DNR and LNR that appears to be similar in scope to existing EU restrictions on dealing with Crimea. The EU's press release and reports indicate that the measure will prohibit EU persons from engaging in the following activities:

  • Importing any goods from non-government controlled areas of DNR and LNR;
  • Selling, supplying, transferring, or exporting specified goods and technologies to the DNR and LNR regions;
  • Trading or investing in certain economic sectors; and
  • Providing services related to tourism in the regions.

As noted above, we will update this post once the EU publishes the final measures.

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