The European Union is, in the coming weeks, looking to roll over its broad economic and targeted sanctions against Russia over the Ukraine crisis until late January, according to a number of senior officials and diplomats.
The continuation of the sanctions is part of an effort to maximize the bloc’s leverage in pushing the Kremlin to fully implement its side of the Minsk cease-fire agreement, the officials say.
In 2014, the European Union introduced sanctions against Russia because of the situation with Ukraine and limited its cooperation with Moscow. In late July, shortly after the disaster near Donetsk, when Malaysian Airlines Boeing was shot, EU sanctions were imposed on the largest state banks – Sberbank, VTB, Gazprombank, Vneshekonombank, Rosselkhozbank, so that they would have a limited access to the European capital market. There was a ban on investment in infrastructure, transport, telecommunications and energy sectors, as well as oil, gas and minerals. For these sectors it is prohibited to provide financial and insurance services. The supply of weapons, machinery, electronics and other dual-use goods, as well as high-tech equipment for oil extraction was also limited. Sanctions were also imposed on the Russian National Commercial Bank, concern Almaz-Antey, Dobrolet Airlines.
In September, the European Union introduced a second package of the sanctions. They extended the restrictions on the access to the market of EU funding for three key energy companies – Rosneft, Transneft, Gazprom Neft and three defense companies – Oboronprom, United Aircraft (OAK), Uralvagonzavod.
Preparation of documents for the extension of the sanctions is not yet complete, some issues have not even been discussed formally, say officials interviewed by WSJ. However, there is a growing confidence that the EU retain the unity, if the Minsk agreements are not be fully implemented, including the withdrawal of Russian troops and weapons from the territory of Ukraine, and regaining control over Russian Kiev-Ukrainian abroad.
In recent days, the leaders of the Russian government said that if the sanctions are prolonged or if new sanctions are introduced, Russia will take a firm stand. May 27, at the International Legal Forum in St. Petersburg, Prime Minister Dmitry Medvedev said that Moscow’s decision on the food ban would be equal to the decision of the US and EU on the sanctions. If sanctions are extended, there is no reason to cancel the food ban, said Deputy Prime Minister Arkady Dvorkovich. In August 2014, as a response to US and EU sanctions, Russia banned the import of a number of products from those conutries. Medvedev said that if the EU took new sanctions against Russia, Moscow would respond the same way.