A surprise decision from the EU: some Russians will no longer be able to enter Europe

Chairman of the Commission Ursula von der Leyen announced on Wednesday that for the first time the commission is proposing an entry ban on all Russian soldiers who have served in the Russian armed forces since the start of the war in Ukraine.

“Europe remains closed to anyone who participated in the invasion of Ukraine. It’s as simple as that,” von der Leyen said.

The Commission justifies the tightening of sanctions with Russia’s continuous attacks on Ukraine and threats against Europe.

On the other hand, Russian tourists do not seem to fall under the scope of extortion measures. Finland was included in the letter from eleven countries, which demanded stricter visa practices for Russian tourists, but not all member countries support the policy. In many EU countries, visas are still issued to Russian tourists in much the same way as before.

Energy in focus

According to Von der Leyen, the center of the 21st sanctions package is the energy sector. The Commission proposes suspending the oil price ceiling adjustment mechanism until next January, in order to stabilize the market but maintain the pressure on Russia’s income.

Von der Leyen justified the decision by saying that the conflict in the Middle East and disruptions in global energy supply chains have eased the pressure on Russia. The oil price cap has a built-in market adjustment mechanism, but it is not designed for market shocks like the closure of the Strait of Hormuz. Due to the closure of the Strait of Hormuz, the world market price of oil has risen rapidly, and the mechanical market-following adjustment mechanism raises the price ceiling upwards. This leads to Russia getting more income during the crisis, when the adjustment mechanism weakens the bite of the sanctions at the wrong time. According to the Commission, the suspension of the price ceiling adjustment mechanism will give the oil market time to stabilize.

The sanctions package also includes tightening measures against Russia’s shadow fleet. 30 ships would be added to the list in addition to the current 632, and for the first time the sanctions would also target operators assisting the ships.

Infrastructure such as ports and refineries are also proposed to be covered by the sanctions if they handle Russian oil. The sale of liquefied natural gas (lng) tankers to Russia would be restricted.

Financial and crypto sector

On the financial side, the commission proposes extending the transaction bans to 31 new Russian banks. In addition, 20 banks, crypto companies or oil traders in third countries would be subject to sanctions for sanctions evasion.

According to Von der Leyen, the possibility of a full ban on crypto services in third countries would also be introduced.

“It acts as a strong deterrent for countries that host platforms that help Russia,” he stated.

Trade and defense technology

In the field of trade, new export restrictions are proposed for products used by the Russian military industry, such as certain metals and alloys. In the case of drones, the export ban would extend to, among other things, jamming and launching systems. At the same time, the EU wants to reduce its dependence on Russian imports with new import bans worth around 60 million euros.

The inclusion of the fishing sector is also new in the sanctions. The Commission proposes significant restrictions on the import of some fish products and a complete ban on, for example, cod. In addition, trade restrictions on Belarus would be harmonized so that the country could not act as a detour for Russian trade.

According to Von der Leyen, the sanctions have already significantly weakened Russia’s economic base, when inflation is almost 6 percent, interest rates are 14.5 percent, and Russians’ taxes are rising.

At the same time, the Commission stresses that Ukraine’s support will continue. The EU has already given billions of euros in financial and military aid, and new batches of aid are coming in the next few weeks.

The Commission’s sanctions package proposal will next move to the consideration of the member states.