Russia and Ukraine Conflict: EU Ambassadors Draft Deal Levying More Sanctions Against Russia
Ambassadors from the European Union reached a preliminary deal Friday to levy more economic sanctions against Russia due to its recent actions in Ukraine.
However, diplomats said that details still have to be worked out regarding the agreement, according to Reuters.
All of the member states of the E.U. have reinforced their opposition to Moscow's actions after the MH17 Malaysian Airlines flight was shot down over an area in east Ukraine that is held by pro-Russian separatists.
Ambassadors reached a deal after discussions that lasted all day Thursday and part of Friday. The ambassadors requested that the European Union create a legal document that relays the economic sanctions that will be imposed on Russia when a final deal is created next week.
Some sanctions include an embargo on arms sales to Moscow, restrictions on the supply of energy and dual-use technologies and the closing of E.U. capital markets to state-owned Russian banks. Diplomats said that the new proposed sanctions will not affect the current supplies of gas, oil or other commodities from Russia.
An E.U. official said that there is an agreement on the preliminary draft of the sanctions, but ambassadors will hold more discussions next week to flesh out the legal text.
Herman van Rompuy, the head of the European Council, wrote to E.U. leaders that restrictions on Russia's access to technology should exclude gas and only include the oil sector.
In addition, the letter asks E.U. leaders to give diplomats the responsibility of deciding upon sanctions, which will negate the need for an emergency summit.
A spokeswoman for E.U. foreign policy chief Catherine Ashton said that the direction of travel in terms of the sanctions are "very clear," but says they are "still traveling," according to Reuters.
E.U. officials said the sanctions agreement will cover restrictions on defense and energy technology, financial markets and equipment for defense or civilian purposes.
The E.U. will also publish the names of 15 people and 18 entities, including companies, on Friday who are subject to asset freezes due to helping Russia annex Crimea in March.
Members states will analyze the text over the weekend and give feedback to the Commission on Monday. The Commission is hoping that a revised draft will be ready by Tuesday.
Some issues involved in the agreement are disagreements over existing contracts, as well an "off-ramp," which is how they will roll back sanctions if Russia begins to comply with international law and help deescalate the tensions in Ukraine.
France is having a difficult time with the issue of upholding existing contracts, because France agreed to sell Mistral helicopter carriers in a €1.2-billion ($1.61-billion) agreement.
Mark Rutte, the prime minister of The Netherlands who has had a key role shaping the deal because of the 194 Dutch citizens killed in the MH17 disaster, said he will support sanctions until Moscow stops supplying rebels with weapons.
"All indications are that Russia is continuing to arm the separatists," Rutte said, according to Reuters. "There's an easy way out for Russia: to distance themselves from the separatists, and stop arming them."
The E.U. member states are also trying to figure out how to balance the imposing of the sanctions, as each state is trying to mitigate financial losses. More specifically, Germany is strong in machinery and technology, France in arms sales, and Italy is dependent on Russia for energy services.
European Commission spokesman Jonathan Todd said it is up to member countries to decide whether the heads of state or government will come to Brussels to give consent for the agreement.
According to the proposals, the E.U. will target state-owned Russian banks. European investors will also be banned from buying new debt or shares of banks that are owned 50 percent or more by the state.
E.U. member states are also considering restricting imports of technology needed for drilling for shale oil, deep-sea drilling and energy exploration in the Arctic.
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