New sanctions against Russia

After treading carefully for months, the European Union is showing signs that its economic interests vis-à-vis Russia have to take second place to the continent’s security.

After its previous sanctions against Russia failed to achieve their goal, the European Union said its new, phase three sanctions would target fundamental economic sectors supplying the Russian state with enormous funds.

The new measures will restrict the access of Russian state banks to the European capital market, introduce an arms embargo and establish an export ban on dual use goods, that is goods which can be used for both civilian and military purposes, as well as restrict the sale of sensitive technology to Russia.

European leaders say these sanctions are meant to have a more profound impact on Russian economy in an attempt to convince Russian leader Vladimir Putin to change his policy with respect to the neighbouring Ukraine.

The European Union’s sanctions, which are the result of top-level consensus, are not based solely on economic or geopolitical factors and the respect for international law, but also reflect the wishes of EU citizens.

Germany, whose trade relations with Russia are estimated at tens of billions of euros, faces huge economic losses.

However, 52% of the German population are clearly in favour of tougher sanctions against Russia, although the jobs of 300,000 Germans depend exclusively on their country’s economic ties with Russia.

Like the European Union, the United States has also imposed “phase three sanctions” against Russia.

President Barack Obama says these target the financial, energy and defence areas.

Four months after entering the Crimean Peninsula and three months of providing support, including military equipment, for the separatists in eastern Ukraine, Russia has only just begun to the pay the cost of its actions.

The last straw, according to foreign policy commentators, was the recent crash of a Malaysian passenger jet in the territory controlled by pro-Russian separatists.