The EU is discussing trade restrictions worth €11bn under new sanctions on Russia

BRUSSELS, Feb 15 (Reuters) – Representatives of the 27 European Union countries are meeting in Brussels on Wednesday to discuss a new set of sanctions against Russia, which the bloc’s executive chief said could cost 11 billion euros (11 .8 billion dollars) in lost trade.

The bloc is expected to agree on new sanctions to mark the one-year anniversary of Russia’s invasion of Ukraine on February 24, but the specific proposals still need to win unanimous support from all EU member states.

“We are weakening Russia’s ability to maintain its war machine. We have adopted nine sanctions packages, the Russian economy is shrinking,” European Commission President Ursula von der Leyen said. “We have to keep up the pressure,” he told the European Parliament ahead of closed-door talks between the 27 national envoys in Brussels.

“We are talking about 11 billion euros. We are proposing restrictions on certain dual-use and electronic components used in Russian weapons systems, such as drones and missiles and helicopters,” he said, describing the upcoming 10th package of sanctions, which could also target Iran for Russia’s war aid.

“There are also hundreds of drones made in Iran, used by Russia, on the battlefield in Ukraine. These Iranian drones are killing Ukrainian civilians … so for the first time we are also proposing sanctions against Iranian economic actors, including those who associated with the Guards Revolution”.

10th PACKAGE

The Commission has proposed that EU countries cut four more Russian banks, including private Alfa-Bank, online bank Tinkoff and commercial lender Rosbank ( ROSB.MM ) from the global SWIFT messaging system, two EU diplomatic sources said under the term of anonymity.

Rubber and asphalt will be added to the EU’s list of banned imports from Russia, and the bloc will ban Russia Today’s Arabic service from its territory, according to people familiar with the confidential talks.

Further bans on EU exports to Russia were intended to stifle Moscow’s ability to produce weapons and equipment being deployed against Ukraine.

The sources said it would cover electronic circuits and components, thermal cameras, radios and heavy vehicles, as well as steel and aluminum used in structures and machinery that serve industrial and manufacturing purposes.

The Commission also proposed further restrictions on European joint ventures with Russia and Russian nationals sitting on boards in Europe, they added.

The bloc aims to both expand its measures against Russia and close loopholes in existing sanctions, including tighter controls on the sale of satellite data to China, which the sources said are at risk of being passed to Russia.

EU states are also considering additional reporting obligations to better monitor Russian assets in Europe as they look for ways to use those frozen under sanctions to fund Ukraine’s reconstruction from the war.

The EU has so far traced about 33.8 billion euros worth of Russian central bank assets on its soil, according to EU officials, out of about $300 billion frozen outside Russia.

Addressing the same session of the European Parliament, the bloc’s top diplomat Josep Borrell said EU countries needed to get more weapons, faster, to Ukraine, where the United States and NATO said Russia had launched a new offensive. ($1 = 0.9329 euros)

Additional reporting by Marine Strauss, Writing by Gabriela Baczynska Editing by Tomasz Janowski

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