European Union Bans Russian Gold Exports In Latest Sanctions Package

Topline

The European Union appears to have approved bans on Russian gold exports and an asset freeze of the Russian state-owned SberBank as part of its latest round of sanctions against Russia in response to the war in Ukraine, according to diplomats familiar with the Committee of Permanent Representatives to the EU.

Key Facts

Lithuania’s permanent representative to the EU Arnoldas Pranckevičius wrote on Wednesday afternoon that the latest round of sanctions include restrictions on 50 new individuals and entities, including politicians and oligarchs.

The Permanent Representation of Poland to the EU also announced on Wednesday afternoon that EU ambassadors have agreed on the new sanctions package.

The move follows the Group of Seven leading industrial nations’ decision, which includes the U.S., on June 26 to ban Russian gold exports in response to the country’s invasion of Ukraine on Feb. 24.

The package, announced initially on July 15 by the European Commission, introduced the import ban on Russian gold and worked to strengthen dual use and advanced technology export controls in an attempt to “reinforce the alignment of EU sanctions” with the G7.

Crucial Quote

“Russia’s brutal war against Ukraine continues unabated. Therefore, we are proposing today to tighten our hard-hitting EU sanctions against the Kremlin, enforce them more effectively and extend them until January 2023. Moscow must continue to pay a high price for its aggression,” said president of the EU commission Ursula von der Leyen in the July 15 statement.

Key Background

The move comes at a time of increasing worry about Russian gas supply to Europe. In a Wednesday press release, the European Commission warned of further gas supply cuts from Russia and urged members to reduce gas use by 15%. On June 3, the Council of the European Union adopted a sixth package of sanctions against Russia, which included bans on Russian media broadcasts and new restrictions on Russian petroleum exports. More broadly, the EU has banned imports of Russian coal, luxury items like spirits and high-end seafood and frozen the assets of dozens of high net-worth individuals. A number of companies, including H&M, Nike and McDonald’s have ceased operations in Russia in response to the ongoing war.

What To Watch For

An official update from the European Commission. The member states in the European Council were still discussing the sanctions package Wednesday afternoon, according to an email to Forbes from Commission spokesperson Arianna Podesta. She added that the latest round of sanctions would strengthen the effectiveness of the EU’s six existing “unprecedented packages” of sanctions against Russia.

Further Reading

“‘Russia Is Blackmailing Us’: EU Plans Gas Reduction As Putin Threatens Shutoff” (Forbes)

“EU executive proposes import ban on Russian gold, tweaks on food trade” (Reuters)