TRADE SANCTIONS: EU Imposes Sanctions on Russia over Ukraine

picture cover4 August 2014, LPJ Croatia Issue 96

On 31 July, the EU Council adopted sanctions against Russia in response to the continued support and supply of weapons to pro-Russian rebels in east Ukraine, as well as the earlier annexation of the Crimea.

The decision to impose sanctions, which became effective 1 August, was underpinned by a widespread belief that the rebels shot down the Malaysia Airlines flight MH17 using a Russian-supplied missile, killing 298 people, mostly EU citizens. This decision (i.e. Council Regulation 833/2014 of 31 July 2014) also gives legal value to the earlier agreement reached by the Committee of Permanent Representatives (COREPER) on 29 July.

Restrictions apply to four areas: the financial sector, energy industry, arms trade and “dual use” technologies export.  First, EU nationals and companies may no longer buy or sell bonds, equity and other financial instruments with a maturity exceeding 90 days, issued by major Russian credit institutions or financial development institutions that have over 50% public ownership or control. Specifically, the “black-listed” banks are VTB Bank, Gazprombank, Vnesheconombank (VEB), Rosselkhozbank, and Sberbank (which also has a subsidiary in Croatia)…

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