Economic sanctions | A new batch of sanctions against Russia is coming from the EU, including gold

Policy|Economic sanctions

Brussels

EU Commission approved the new sanctions against Russia on Friday. The most important item on the list is gold, whose import to EU countries would end as a result of the new sanctions.

According to the commission, most of the decisions mainly make existing sanctions more precise and better targeted than before. According to a commission official interviewed by Reuters, it is not actually the seventh sanctions package, but a kind of number “six and a half”.

Deciding on the matter belongs to the member countries, and like previous sanctions, the decisions must be made unanimously.

G7 countries already decided in June at their meeting in Elmau, Germany, that they would impose sanctions on the gold that Russia sells abroad. It foretold that gold would also appear on the EU sanctions list.

After energy, gold has been Russia’s biggest export product in recent years. The value of gold exports was around 18 billion euros in 2020, which corresponds to around five percent of gold exports worldwide.

90 percent of exports went to the G7 countries, especially Britain.

To the blacklist products that are no longer allowed to be exported from the EU to Russia are also added. Among other things, there are machines and chemicals that can possibly be used to manufacture weapons.

Accordingly, the Commission intends to ensure that the current sanctions do not hinder the import of grain and other agricultural products from Russia. According to the African countries threatened by the food crisis, the sanctions have prevented trade with Russia and weakened their situation.

According to the current sanctions, Russian ships do not have access to EU ports unless their cargo is grain or other similar agricultural products, medicines or energy. This restriction is going to be clarified.

The validity period of all current sanctions will also be extended by six months.

The EU is After Russia’s attack on Ukraine, since February, Russia has imposed a total of six sanctions packages, which include both personal and financial sanctions. The targets are a total of 98 companies or other entities and more than 1,100 people, including the president Vladimir Putin with surrounding areas.

The targets of the sanctions are crude oil and oil products, albeit with a long transition period and certain restrictions, as well as coal, steel, iron and wood, among others.

The export of technology from EU countries to Russia has been limited and the transport of goods from Russia has been blocked. All Russian airlines are prohibited from entering EU airports and flying in EU airspace.

The funds of the Russian central bank have also been frozen and banks have been locked out of the messaging system Swift.

The EU has also suspended the broadcasts of five Russian state-owned media in the EU, citing the propaganda they broadcast.