EU foreign ministers decided unanimously to impose new sanctions on Russia. The British sanctions list includes businessmen Boris Rotenberg and Gennadi Timtšenko, who also have Finnish citizenship.
The European Union has decided to impose new sanctions on Russia, says EU High Representative for Foreign Affairs Josep Borrell tuesday night.
The sanctions list includes a total of 27 parties, including banks and individuals.
In addition, the EU will add to its sanctions list 351 members of the Russian Duma who voted in favor of recognizing the separatist regions of eastern Ukraine. Russian President Vladimir Putin is not on the list.
Sanctions are also being imposed on Russian banks. In addition, the EU restricts the Russian state’s access to EU financial markets.
President of the European Commission Ursula von der Leyen Following the meeting, Germany stated that the decision to put the Nord Stream 2 gas pipeline project on ice was absolutely right. According to him, the crisis shows that the EU is too dependent on Russian natural gas and needs other gas suppliers, as well as more renewable energy.
According to von der Leyen, the sanctions package includes carefully weighed measures to respond to violations of international law by the Kremlin. The sanctions list is still being finalized.
– Sanctions have been imposed on individuals and companies that have participated in these activities. They hit banks that are financing Russia’s military operations and undermining Ukraine’s stability.
The EU is banning trade between the two separatist regions and the EU, as was done in connection with the illegal annexation of Crimea in 2014. In addition, the EU is restricting the Russian government’s access to funding from the EU market.
– If Russia continues to expand the crisis, we are ready for further action, von der Leyen said.
According to him, the Kremlin’s aggressive efforts are being made as difficult as possible to carry out.
Earlier on Tuesday, the Commission said the EU also had more action in place that could be put in place if needed.
Germany puts Nord Stream 2 on ice – Professor: Russia may retaliate
Germany said in the afternoon that it would suspend the Nord Stream 2 gas pipeline project.
– We need to reassess the situation, Chancellor Olaf Scholz said at a news conference.
The decision is painful because the project is important for Germany. The pipeline is set to provide significant additional capacity for gas imports, and many European energy companies have invested heavily in it – Fortum’s subsidiary Uniper is also involved with around € 1 billion.
Scholz’s announcement will change the market, says Aalto University professor following the energy market Peter Lund. Ukraine will remain a major gas transit country from Russia to Europe when the Nord Stream 2 pipeline is not commissioned.
This underlines the important role of Ukraine, but as a result Russia may tighten gas supplies to Europe.
– The issue of supplying gas to Europe could be a big countermeasure, Lund says.
Gas accounts for about six percent of Finland’s energy consumption, and virtually everything comes to Finland from Russia.
– It must be remembered that during the Cold War, energy was never used in conflicts between East and West. Now, energy may be included in the portfolio used in this context, Lund says.
Also from Britain sanctions, involving Finnish citizens Rotenberg and Tymoshenko
Britain also unveiled its anti-Russian sanctions list on Tuesday.
Sanctions are imposed on five Russian banks and three individuals belonging to the country’s economic union, two of whom also have Finnish citizenship.
The other is the president Vladimir Putin a related billionaire businessman Gennady Tymoshenko. Timchenko owns part of Helsinki’s Hartwall Arena. Another Finnish citizen is Boris Rotenbergand the third person on the sanctions list for this nephew Igor Rotenberg.
They have been the subject of Western sanctions in the past during the crisis in eastern Ukraine.
– This is the first installment, the first rush of everything we are ready to do. All funds in Britain will be frozen and those subject to sanctions will be banned from traveling, Prime Minister Boris Johnson said.
The banks subject to the sanctions are Rossija, IS Bank, General Bank, Promsvjazbank and BSTDP.
Sanctions are not a disaster for Finland, “general uncertainty much worse”
The impact of EU sanctions on Russia in general would also hit European business.
Russia’s share of Finland’s total exports of goods and services has halved in ten years. The share is now about five percent. According to the latest figures, imports account for about 8%.
This will ease the beating of sanctions on Finland.
“They are not a disaster, but if large-scale sanctions are imposed, they will certainly have a detrimental effect on the Finnish economy,” said the Bank of Finland’s Emerging Economies Research Manager. Iikka Korhonen earlier on Tuesday.
The biggest drawback comes from the general chaos, he estimates.
– The general uncertainty and disorder that arises when the armed forces begin to move borders, it is much worse.
Uncertainty over the conquest of Crimea has weakened the ruble, the stock market has collapsed and capital is flowing out of Russia. Measured in euros, the country’s economy is about one-fifth smaller than before the conquest of Crimea.
There is no exact picture of the attitude of Russian companies and business leaders towards Russia’s activities in Ukraine. Korhonen’s feeling is clear:
– The business community is not very enthusiastic about this adventure policy and the relocation of borders. They see that the costs will be significant.
You can discuss the topic until Wednesday 23.2. until 11 p.m.