Brussels 17.07.2022 “Since Russia brutally invaded Ukraine, the EU has adopted six packages of sanctions against Moscow – and we are about to finalise a “maintenance and alignment” package to clarify a number of provisions to strengthen legal certainty for operators and align the EU’s sanctions with those of our allies and partners of the G7” writes the EU top diplomat Josep Borrell (pictured) in his blog.
“Our measures already now target nearly 1,200 individuals and almost 100 entities in Russia as well as a significant number of sectors of the Russian economy. These sanctions were adopted in close coordination with the G7 member, and the fact that over forty other countries, including traditionally neutral countries, have also adopted them or taken similar measures enhances their effectiveness.
“Sanctions require strategic patience because it may take a long time for them to have the desired effect.
Now, as the war drags on and the costs of energy rises, people in Europe and elsewhere ask whether these sanctions are working and/or whether the side effects are too great. Without underestimating different problems that could occur, including attempts made to bypass them, sanctions remain an important instrument of political action. But for sure we need to use them in a well targeted manner, and, above all, they require strategic patience because it may take a long time for them to have the desired effect.
“One of the main sanctions adopted is to stop buying 90% of EU oil supplies from Russia by the end of 2022, depriving Moscow of corresponding revenues. Yes, Russia is able to sell its oil to other markets, however this benefit is limited by the fact that Russia is forced to give high discounts on each barrel (Russian oil is sold at around $ 30 less than the global average). In addition, and this is perhaps the most important point, this gradual oil embargo and the scaling back of the import of gas, liberates Europe from its energy dependence on Russia. We have discussed this issue at the EU level for years, but now we are implementing it.
“Cutting our structural energy dependence on Russia matters a lot because this dependence has been an obstacle to developing a strong European policy towards Moscow’s aggressive actions.
“Cutting our structural energy dependence on Russia matters a lot because this dependence has been an obstacle to developing a strong European policy towards Moscow’s aggressive actions. This dependence probably played an important role in Putin’s initial calculations in Ukraine. He may have believed that the EU would never sanction Russia seriously because it was too dependent on energy. This is one of his most important blunders when launching this war.
“Of course, this rapid detoxification from Russian energy involves significant costs for a number of countries and sectors that we will have to face. However, it is the price to pay to defend our democracies and international law. We have to handle these consequences by reinforcing our internal solidarity and that is what we are doing. By breaking its energy dependence, in line with its climate ambition, the EU is learning that interdependence is not always a neutral instrument that is beneficial to all or a mean to guarantee peaceful international relations. The Ukraine war confirmed that interdependence can be used as a weapon”.