Home Economy EU adopts new sanctions against Russia, bans coal imports

EU adopts new sanctions against Russia, bans coal imports

EU adopts new sanctions against Russia, bans coal imports

UNITED STATES, WASHINGTON (TRADING SIGNAL GROUP) – The European Union has formally adopted the fifth package of sanctions against Russia since the beginning of the invasion of Ukraine on February 24, including a ban on imports of coal, wood, chemicals and other goods.

The measures also prevent many Russian ships and trucks from entering the EU, further paralyzing trade, and prohibit all transactions with four Russian banks, including VTB.

The ban on coal imports will take full effect from the second week of August. No new contracts can be signed starting today, when the sanctions will be published in the Official Journal of the EU.

Existing contracts will have to be terminated by the second week of August, which means that until that time Russia can continue to receive payments from the Union for coal exports.

“These latest sanctions were adopted following the atrocities committed by the Russian military in Bucha and other places under Russian occupation,” said Josep Borrell, High Representative of the Union for Foreign Affairs and Security Policy.

The Kremlin said the West’s allegations that Russia committed war crimes by executing civilians in the Ukrainian city of Bucha were a “monstrous forgery” aimed at denigrating the Russian military.

The value of the coal ban alone is estimated by the Commission at € 8 billion a year in lost revenue for Russia. This is double what was announced on Tuesday by the president of the EU Commission Ursula von der Leyen.

In addition to coal, the new EU sanctions ban imports from Russia of many other commodities and products, including wood, rubber, cement, fertilizers, fine seafood, such as caviar, and spirits, such as vodka, for a total value. additional estimated at € 5.5 billion per year.

The EU has also limited the export to Russia of a number of products, including jet fuel, quantum computers, advanced semiconductors, high-end electronics, software, sensitive machinery and transportation equipment, worth a total of 10 billions of euros a year.

The sanctions also prohibit Russian companies from participating in public procurement in the Union and extend the bans on the use of cryptocurrencies, which are seen as a potential means of circumventing the sanctions.

The Commission said 217 more people have been added to the blockade’s blacklist under the new sanctions package, meaning their assets in the EU will be frozen and those in question will not be allowed to travel to the country. EU.

These people are largely political leaders of the breakaway regions of Lugansk and Donetsk, but the sanctions also affect businessmen, politicians and the military close to the Kremlin.

In this way, almost 900 individuals have been sanctioned by the EU since the beginning of the Russian invasion of Ukraine, which Moscow defines as a “special operation” to demilitarize and “denazify” the country.