EU sanctions set to tighten the screw on Russian industry, society – EURACTIV.com

2022-10-02 16:24:43 By : Ms. Alina Xie

By Luca Bertuzzi | EURACTIV.com

The European Commission proposed a far-reaching list of items and companies for the next sanction package against Russia. [Ronnie Chua/Shutterstock]

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A comprehensive list of products, ranging from semiconductors to toilet paper, has been included in an additional EU sanctions package designed to increase pressure on the Russian economy as the war in Ukraine rages on.

The eighth package, currently in draft form and seen by EURACTIV, is being discussed between EU ambassadors this week and is likely to be finalised before an informal EU summit in Prague next Friday.

The European Commission proposal might prove particularly heavy for the Russian industry and citizens, as the list of sanctioned companies includes many big names, while restricted products span across multiple key sectors.

Nuclear energy and an EU oil-price cap are unlikely to find their way into the seventh sanction package proposal, several EU diplomats said after consultations for a seventh Russia sanctions package over the weekend left some more hawkish member states dissatisfied.

While the tensions between the West and Russia have triggered an energy crisis in Europe, the European Commission proposed to hit energy giants Transneft, Rosneft, and Gazprom Neft. The latter is the oil subsidiary of the Gazprom group, which has been at the centre of Moscow’s threat to shut down the gas supply.

Other state-owned companies on the draft sanctions list include defence conglomerates Rostec and Almaz-Antey, machine manufacturers Uralvagonzavod and Kamaz, aerospace companies Oboronprom and United Aircraft Corporation, shipbuilders Sevmash, Sovcomflot, Russian Maritime Register of Shipping and United Shipbuilding Corporation.

The list of sanctioned items seems poised to choke Russia’s manufacturing capacity as it touches upon all parts related to any type of vehicle, including cars, motorcycles, trains, vessels, aircraft, and spacecraft, via items such as engines and testing machinery.

All sorts of iron, steel and metal products like pipes, wires and screws are covered, as well as biodiesel, lead, coal and petroleum derivates. These are all items used in all kinds of manufacturing processes.

Similarly, chemical products also feature prominently in the list. Compounds with a concentration of 90% weight or greater of chemicals such as mercury are set to be banned, together with ethanol and butane.

The new sanctions might expand to virtually all semiconductors, essential elements for all kinds of electronic equipment. According to media reports, the Russian military is already in such dire need of this technology that it is reusing semiconductors from kitchen appliances.

Notably, the EU’s executive also proposed sanctioning manufacturers of appliances like refrigerators, dishwashing machines, and water heaters. More broadly, any telecommunication equipment is also covered, including phones, smart cards, cameras, and optical fibre.

Hawkish EU member states are set to push for more far-reaching measures against Russia as the bloc starts consultations on the next EU sanctions package this weekend, according to a document seen by EURACTIV.

In a move that seemed intended to affect public opinion more than the Russian war machinery, the Commission proposed sanctioning products related to personal hygiene such as make-up, soap, shaving products and deodorants, cleaning agents, and toilet paper.

Cigarettes and other tobacco-related products also feature on the list, alongside cotton derivates, printing ink and photographic film.

Moreover, the Commission proposed expanding the list of restrictions for Russia’s law enforcement, notably by preventing them from acquiring or selling riot control equipment such as tear gas and riot shields and electroshock weapon technologies like stun guns.

The move comes amid unrest in Russia following the Kremlin’s announcement that it would mobilise 300,000 reservists to fight the war in Ukraine. The mobilisation led to a mass exodus of potential recruitment candidates and street protests in major cities.

At the same time, the list does not include some of the proposals made by ‘hawk countries’ last week.

According to a wish list seen by EURACTIV last week, Poland, Ireland, and the three Baltic states proposed hitting nuclear technology, data processing machines, ICT services, and diamonds.

The five countries also called for an EU-wide ban on Kaspersky Lab, a major Russian cybersecurity firm accused by US intelligence services of having ties with the Kremlin.

MEPs have called for the EU institutions to put more money into their in-house cybersecurity units and, in a contentious move, also demanded they stop using products from “malicious” Russian firm Kaspersky Lab.

[Edited by Alexandra Brzozowski/Zoran Radosavljevic]

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