The European Union has proposed a ban on the export of machines and machine parts that are being used by Russia to produce weapons for its war against Ukraine.
Source: Bloomberg with reference to EU documents it obtained, as reported by European Pravda
Details: Bloomberg says this proposal is contained in the 12th EU sanctions package, which also includes a ban on diamond exports and measures to better enforce the price cap on Russian oil.
As Bloomberg noted, the EU proposes to add chemicals, lithium batteries and thermostats, as well as engines and servo motors for drones, to the list of restricted goods.
Bloomberg clarified that EU member states are to discuss the proposals this week and they may change before they are approved.
The focus of the new sanctions package is to further limit the Kremlin’s ability to circumvent EU sanctions and maintain its military machine, as well as to reduce Moscow’s sources of revenue.
As part of the measures to ensure compliance with the price cap on Russian oil, which is US$60 per barrel provided that Western transport or insurance services are used, the EU proposes the following steps:
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prohibit Russians from holding positions in European companies that provide crypto-asset accounts and storage services;
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prohibit the granting of licences for enterprise management software and industrial design and manufacturing software;
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require that firms in Europe owned or controlled by Russians or Russian legal entities obtain permission to transfer funds outside the EU;
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require exporters to include clauses in their contracts prohibiting the re-export of certain goods to Russia.
Background:
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Earlier, Josep Borrell, EU High Representative for Foreign Affairs and Security Policy, predicted that the new package of sanctions against Russia could be agreed and presented this week.
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Bloomberg reported that the 12th EU sanctions package includes proposed restrictions on trade worth about €5 billion.
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The new package may cover more than 100 individuals and 40 legal entities. There are also discussions about banning the employment of Russians in so-called “sensitive” sectors and the repatriation of Russian assets to the EU.
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Discussions on the new sanctions moved forward after the G7 foreign ministers gave the green light to impose restrictions on diamonds of Russian origin at a meeting in Japan.
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