The European Union’s new sanctions package would target €11 billion worth of goods via trade bans and technology controls, European Commission President Ursula von der Leyen said. Proposals would focus among other things on export restrictions on multiple electronic components used in Russian armed systems including drones, missiles and helicopters.
(Bloomberg) — The European Union’s new sanctions package would target €11 billion worth of goods via trade bans and technology controls, European Commission President Ursula von der Leyen said. Proposals would focus among other things on export restrictions on multiple electronic components used in Russian armed systems including drones, missiles and helicopters.
The EU is poised to force banks to report information on Russian Central Bank assets as part of the bloc’s latest sanctions package targeting Moscow for its war in Ukraine, according to draft proposals seen by Bloomberg. The EU is aiming to adopt its 10th package of sanctions next week ahead of the one-year mark of the Russian invasion.
NATO members should spend a minimum of 2% of GDP on defense and simply aiming to get close to the target won’t be sufficient, German Defense Minister Boris Pistorius told reporters ahead of a second day of alliance meetings in Brussels.
(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)
Key Developments
- EU Sanctions Seek to Make Banks Divulge Frozen Russian Assets
- Russian Parliament to Hold Unscheduled Meeting Feb. 22: RIA
- Iranian Drones Hitting Ukraine Struck a Tanker Earlier, US Says
On the Ground
The threat of further Russian air and missile strikes remains high across Ukraine, the latter’s Military Staff said in its update Wednesday morning. Russia is making further attempts to gain full control over the Donetsk and Luhansk regions, while focusing its efforts on offensive operations on the Kupyansk, Lyman, Bakhmut, Avdiivka, and Shakhtar axes. The Institute for the Study of War said that Russian forces made marginal territorial gains near Bakhmut and continued ground attacks across the Donetsk region. The Russian army also unsuccessfully attacked Ukrainian positions in the western Zaporizhzhia region while continuing to fortify positions in the area.
(All times CET)
EU Aims to Ban All Tech Products on Battlefield, Von Der Leyen Says (12:05 p.m.)
The European Commission aims in its 10th package of sanctions to cut Russia off from any technology needed to keep its war machine going. The EU’s executive is proposing export bans covering critical technology such as spare parts for trucks and jet engines, electronic components which can be used in drones or missiles, and rare earth materials.
“With this we have banned all tech products found on the battlefield, and we will make sure that they don’t find other ways to get there,” Commission President Ursula von der Leyen said in a statement. To prevent the circumvention of sanctions, the EU is adding seven Iranian entities to its list of Russia sanctions. Additionally, the Commission’s proposal includes sanctions against Russian propagandists and military leaders.
War in Eastern Ukraine Comparable to World War One, UK’s Wallace Says (9:40 a.m.)
UK Defence Secretary Ben Wallace compared the war in the east of Ukraine to the trench warfare of the First World War of 1914-18, when advances were measured in meters with high casualty levels. He said an attack on the mining village of Soledar in eastern Ukraine had resulted in 1,000 Russian deaths in two days.
“I think what Russia is doing is trying to advance; it’s doing so, in a sort of way, almost First World War-levels of attrition, and with success rates have a matter of metres rather than kilometres,” Wallace told BBC radio. He said Russian President Vladimir Putin and his generals are either suffering from “a gap in reality” or “no regard for human life.” Wallace questioned “how does that stop? Do you lose another 188,000 people?”
EU to Target Russian Tech, Iran’s Drones, von der Leyen Says (9:35 a.m.)
European Commission President Ursula von der Leyen said Wednesday that the EU’s new sanctions package would target €11 billion worth of goods via trade bans and technology controls.
“We propose, among other things export restrictions on multiple electronic components used in Russian armed systems — such as drones, missiles, helicopters,” she told the European Parliament. She said the bloc will also sanction Iranian entities, including those linked to Iran’s Revolutionary Guard, as it seeks to halt Tehran’s provision of drones to Russia.
EU’s Borrell Says Sanctions are Hurting Russia (9:20 a.m.)
The EU’s sanctions are starting to make a real impact on Russia’s economy, limiting its revenues and constraining its trade, the bloc’s foreign policy chief Josep Borell told the European Parliament.
“The sanctions are a slow-action poison, a little bit like arsenic,” he said. “It takes time to take an effect.” He noted that Russia’s oil and gas revenues were 46% lower in January this year compared to the same month last year. He added that the country’s plane and car plants have lost 80% of their capacity, thanks in part to the EU’s trade restrictions.
Finland Hopes for NATO Membership With Sweden ‘Quite Soon’ (9 a.m.)
Finnish Defense Minister Mikko Savola said he hoped Finland and Sweden would become NATO members “quite soon,” adding “we are ready to join.”
Asked whether Finland would wait for Sweden to join, Savola said “of course, it’s better for Finland, it’s better for Sweden and also for NATO that we both come to members of NATO as soon as possible,” adding this was better for defense planning. “We have really close bilateral cooperation with Sweden, Sweden is our closest partner,” he said.
Estonian Defense Minister Hanno Pekvur said he didn’t believe Finland’s and Sweden’s bids to join NATO would be separated. “Finland and Sweden will join together to NATO, this is very important for us to secure the Baltic Sea,” he told reporters.
Sweden Concedes Finland May Join NATO First Amid Turkey Spat
Germany Says NATO 2% Goal for Defense Spending Should be Floor (8:30 a.m.)
NATO members should spend a minimum of 2% of GDP on defense and simply aiming to get close to the target won’t be sufficient, Germany’s Pistorius said in Brussels as the alliance’s defense ministers met.
Pistorius said Denmark and Sweden would join the German-led anti-missile shield project for Europe, which already has at least 15 countries signed up. Germany, the UK and Canada agreed on a joint paper outlining how to best protect the three Baltic states as nations leading NATO battlegroups in those countries, he added.
Germany itself will miss the 2% goal again this year and is likely only to reach it in 2025.
NATO Struggles to Meet Spending Goals as It Mulls Higher Target
Training Started on Four Leopard 2A4 Tanks, Canada Says (8:20 a.m.)
Canada’s four Leopard 2A4 tanks have arrived in Poland where training is taking place with Ukrainian soldiers, Canadian Defense Minister Anita Anand told Bloomberg TV, adding her country was also ensuring the delivery of trainers, ammunition and spare parts.
“We as a country will join all other NATO allies in searching and making sure we’re procuring the aid that is necessary for Ukraine to fight and win this war,” she said. The minister added that Canada has trained more than 35,000 Ukrainian soldiers since 2015 and that has continued in England.
EU Aims to Target Reporting of Frozen Russian Assets (8 a.m.)
Getting a handle on the scale of central bank and other sanctioned state-backed assets that have been immobilized in the EU is seen as a first step to exploring options to potentially using those funds to contribute to Ukraine’s reconstruction.
The European Commission, the bloc’s executive arm, also proposed strengthening the reporting obligations on frozen assets linked to sanctioned Russian companies and individuals, and suggested fines — of as much as €50,000 for individuals and 10% of annual turnover for entities — to be imposed for failure to provide the required information, the documents say.
Russian Parliament to Hold Unscheduled Meeting Feb. 22: RIA (7:45 a.m.)
Houses of the Russian parliament, the State Duma and the Federation Council, will hold an unscheduled meeting Feb. 22, RIA Novosti reported, citing an unidentified official from the Federation Council. The meeting will focus on the adoption of laws on the legal integration of the annexed regions of Ukraine, RIA reported, citing senator Vyacheslav Timchenko.
Russian President Vladimir Putin is scheduled to address the parliament on Feb. 21.
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