The European Union is considering widening to all Russian state-owned firms a ban on borrowing or raising capital in Europe, as a means of stepping up pressure on Russia over its involvement in Ukraine, diplomats said yesterday.
The bloc is also looking at barring Russian Defence Minister Sergei Shoigu from entering the EU, the diplomats said.
The proposals were floated at a meeting of EU ambassadors in Brussels on Monday.
EU leaders decided on Saturday that the direct engagement of Russian troops in the war in eastern and southern Ukraine called for a stepping up of the sanctions imposed so far unless Russia pulled its soldiers back. They asked the EU’s executive arm, the Commission, to prepare proposals on new sanctions within a week.
The European Commission is to prepare a final draft of new sanctions against Moscow over its invasion of Ukraine by today and EU governments will make a decision on the final shape of the package by Friday, Italian Foreign Minister Federica Mogherini said. Ambassadors will meet today until Friday to hone the new sanctions package.
“We need to respond in the strongest possible way,” Mogherini, who will be the EU’s next foreign policy chief, told reporters following a presentation to EU lawmakers in the European Parliament.
Other measures discussed at Monday’s meeting included banning syndicated EU loans to Russian government-owned banks and institutions.
The European Commission also proposed a shortening of the minimum maturity of Russian state-owned banks’ debt instruments that cannot be sold in the EU under a decision from July to 30 days from the previously agreed 90 days. The EU would also be considering imposing a ban on buying Russian derivative instruments too.
Other ideas floated on Monday included an expansion of a export ban on goods that can have both military and civilian use to all potential Russian importers, not just companies in the defence sector as agreed by the EU sanctions package from July.
A ban on selling advanced energy technologies to Russia could be extended to include servicing agreements, diplomats said. Russia could also no longer be invited to cultural, economic and sports events.
The new EU sanctions package against Russia could be coordinated with other G7 countries – the United States, Canada and Japan.
Cutting off Russia from the SWIFT international bank transaction system was not discussed, because the measure is considered too radical.