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EU Extends Economic Sanctions on Russia

by in Business, Economy

The European Union (EU) has extended economic sanctions on Russia for six months until January 31, 2022, according to a statement posted on the organization’s website.

“The decision of the European Council was followed by an assessment of the state of implementation of the Minsk Agreement at the meeting of the European Council on June 24-25, 2021. EU leaders have called on Russia to take full responsibility for the full implementation of the Minsk Agreement, which is a key condition for changing the EU’s position. Given that Russia is not fully implementing these agreements, the EU leaders have unanimously decided to extend economic sanctions against the country”, the statement said.

Economic sanctions against Russia were first imposed on July 31, 2014, in response to destabilizing actions in Ukraine.

Sanctions restrict access to the EU’s primary and secondary capital markets for certain Russian banks and companies and prohibit forms of financial assistance and intermediation to Russian financial institutions, as well as the direct or indirect import, export, or transfer of defense-related materials. Sanctions further restrict Russia’s access to certain sensitive technologies that can be used in Russia’s energy sector.

These restrictive measures published on the official site of European Council are as follows:

  • limit access to EU primary and secondary capital markets for certain Russian banks and companies;
  • impose an export and import ban on trade in arms;
  • establish an export ban for dual-use goods for military use or military end users in Russia;
  • curtail Russian access to certain sensitive technologies and services that can be used for oil production and exploration.

In addition to economic sanctions, the European Union has taken other measures in response to Russia’s illegal annexation of Crimea and the city of Sevastopol and the deliberate challenge to destabilization in Ukraine. These include diplomatic measures, individual restrictive measures (freezing of assets and travel restrictions), and specific restrictions on economic relations with Crimea and Sevastopol.