A new round of sanctions on Moscow will include a ban on new mining industry investments to weaken further the Russian economy and the Kremlin’s ability to finance its conflict with Ukraine.
To limit the Kremlin’s capacity to finance its conflict with Ukraine, the European Commission is proposing a ban on new investments in Russia’s mining industry, according to the Financial Times on Tuesday.
The newspaper stated, citing persons with knowledge of the deliberations, that the prohibition would be a component of the ninth package of European Union (EU) measures that authorities are preparing to discuss with member states in the coming days.
By the end of the next week, officials expect to get the ban, which will exclude select particular items, approved.
Fears concerning the supply of essential goods manufactured and exported by Russian enterprises have grown due to Russia’s invasion of Ukraine and the sanctions imposed by the West as a response.
According to the Financial Times, the latest sanctions package may also include targeted penalties on 180 more people, a ban on dealings with three more Russian banks, and export bans on civilian technologies that Brussels believes Russia is exploiting to fund its arms manufacturing.
Since President Vladimir Putin authorised a full-scale invasion of Ukraine in February, the EU has already slapped eight packages of sanctions against Russia alongside the US, UK, and other western partners.
These actions, which targeted several banks, defence firms, oil and gas producers, and other significant economic sectors, as well as hundreds of government officials, oligarchs, and propagandists, have already contributed to the slump in Russia’s economy.
One of the individuals stated that the precise scope of the mining investment prohibition is still being determined and that it is likely to contain exceptions for certain goods. Russia is a significant supplier of several metals, like palladium and titanium, to the international market.
Other provisions of the proposed package include export limits on dual-use goods worth more than €2.3 billion, a prohibition on working with Russian marketing and market research firms, and a ban on four Russian media channels that the EU claims are used to promote Moscow propaganda.
This week, ambassadors from the 27 nations that make up the bloc will examine the package, which was created after private meetings between the commission and representatives of member states. Next Thursday will see an EU leaders’ summit.
In order to receive the needed unanimous support for previous EU sanctions packages, member states had to engage in some horse trading and water down the penalties.
Hungary, which has developed stronger connections with Moscow than other EU members, has declined to support several provisions of earlier packages, such as restricting imports of Russian pipeline oil.
Others have thwarted attempts to forbid the importation of goods utilised by their businesses; an example is Belgium’s unwillingness to support a diamond ban.