EU Expands Ban on Exports to Russia... Energy Embargo Remains 'Divisive'

Restrictions on Steel, Luxury Goods, and Jet Fuel Exports and Imports
France: "Russia's Oil and Coal Imports Must Be Halted"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] The additional sanctions that the European Union (EU) is set to impose in response to Russia's mass killing of Ukrainian civilians are expected to include restrictions on the export and import of steel, luxury goods, and other items. However, it remains uncertain whether the EU will join the energy embargo against Russian products.

On the 4th (local time), U.S. economic media CNBC cited two anonymous sources, reporting that "the EU's 5th round of sanctions against Russia includes measures to ban the export and import of steel, luxury goods, jet fuel, and the leasing of aircraft."

The key issue is whether the sanctions will include an energy embargo on Russian products. A source said, "There is still a division of opinion among member states on whether to expand the sanctions to include an energy embargo."

The EU, which has a high dependence on energy, has shown significant differences in opinion regarding the embargo. While some member states have expressed support for sanctions in response to Russian war crimes, others are concerned about the impact on their own economies.

French President Emmanuel Macron called for a complete halt to imports of Russian oil and coal on the same day. In a media interview, President Macron emphasized that "what happened in Bucha, where the civilian massacre occurred, has highlighted the need for new sanctions and clear measures," stressing that sanctions at the EU level must be imposed.

However, opposition voices remain strong. German Finance Minister Christian Lindner said at the Eurozone finance ministers' meeting held in Luxembourg that day, "We must sever all economic ties with Russia, but at present, it is not possible to cut off gas supplies."

Austrian Finance Minister Magnus Brunner also stated, "Given Austria's high dependence on Russian gas, I do not support oil and gas sanctions that would inflict greater damage on Austria than on Russia."

The new sanctions are planned to be approved by the end of this week. Unanimous consent is required for the sanction measures to be approved. A source said, "Since the sanction measures have not yet been finalized, the content may change before the meeting on the 6th."