sanctions

Russian president Vladimir Putin visits a Rosneft oil refinery on the Black Sea last year

EU ambassadors head into yet another meeting Friday afternoon to hammer out the latest round of sanctions against Russia. Their bosses have promised to get things done by the end of the week, but there’s still a lot of work to do, so it’s not entirely clear whether a deal can be reached. Also, the on-again, off-again Ukrainian ceasefire could slow things down, though allies don’t appear to be giving much credibility to the Kremlin’s protestations that they are working towards a truce.

As we wrote in today’s dead-tree edition of the FT, we got a leaked copy of the draft legislation approved by the European Commission on Wednesday and sent to national capitals for today’s deliberations. The 18-page text is filled with a lot of jargon and technicalities, but because they could directly affect financial markets, the details matter.

For that reason, we are offering Brussels Blog readers more detail here. Remember: the EU ambassadors could still change much of the wording in their negotiations – though if the July sanctions are any indication, the changes are likely to be on the margins. Read more

Russia's Vladimir Putin, right, talks to EU foreign policy chief Catherine Ashton last month in Minsk

As we reported in today’s dead-tree edition of the FT, we got our hands on the three-page Russia sanctions options paper circulated by the European Commission and the EU’s diplomatic corps to national delegations yesterday that, for the first time, raised the spectre of boycotting the 2018 World Cup, to be hosted by Moscow.

But the meat of the document is the actual sanctions that are likely to be agreed this week; the World Cup suspension is clearly mentioned as something that only would be considered in the future. So as is our tradition here at the Brussels Blog, we thought we’d provide readers a bit more detail, including excerpts from the document itself.

First, though, here’s the language on the World Cup, which also includes a mention of UEFA, the Union of European Football Associations which organises and runs all international competitions for European soccer clubs – including Russia’s. Read more

A pro-Russian militant stands guard at a checkpoint outside Donetsk earlier this week.

UPDATE: We’ve now posted the draft communiqué on Ukraine. You can read it here.

Today’s special EU summit was originally called to hash out nominees for the remaining jobs atop the big Brussels institutions – the European Council president, the EU foreign policy chief and the chair of the eurogroup of eurozone finance ministers. But recent events in Ukraine have pushed Russia policy back onto the agenda.

According to a draft of the summit communiqué obtained by Brussels Blog – which was pulled together at a marathon session of EU ambassadors on Tuesday – EU leaders could go beyond so-called “phase two” sanctions, which involve targeting individuals for travel bans and asset freezes. But it won’t be all the way to “phase three”, which constitutes sanctions on entire sectors of the Russian economy.

The new intermediate phase, which diplomats say is an intentional blurring of phase two and three, would focus on four elements. First, the EU would cut all new project funding for Russia from the European Investment Bank and caucus together to prevent similar investments from other international organisations where EU countries are members – particularly the European Bank of Reconstruction and Development. Other international financial institutions are not mentioned by name, but diplomats said the World Bank was raised during deliberations. The draft language now looks like this:

 Read more

Campaign posers for Sunday's independance referendum in Simferopol's Lenin square

Monday’s meeting of EU foreign ministers is shaping up as one for the history books. Just as Crimean officials are scheduled to be finishing their count of the region’s independence referendum, ministers will gather in Brussels to finalise a list of Crimean and Russian officials to be targeted with travel bans and asset freezes, the most significant step yet taken by any of the western allies against the Russian incursion.

But first, diplomats must decide who exactly is on that list.

The process started in EU embassies in Moscow, who pulled together a master list that was forwarded to diplomats in Brussels. According to one diplomat involved in the discussions, the list is to be narrowed to a “small but politically significant” group of people who are “infringing Ukraine’s territorial integrity”. The diplomat put the final number “in the tens or scores”. So perhaps 20 to 40 names. Read more