EU prepares 19th sanctions package against Russia: what is known about the new restrictions.

According to FREEДOM:

New sanctions against Russia

The head of European Union diplomacy, Kaja Kallas, stated that the new secondary sanctions by the US would hit Russia the hardest. Currently, EU countries are working on the formation of the 19th package of restrictive measures against the Russian Federation, discussing several options. Earlier, Kyiv sent its proposals regarding this new sanctions list to Brussels.

Content of the new sanctions package

The new sanctions package may include restrictions related to Russian energy and financial services. Kallas also noted that the EU is considering imposing secondary sanctions to prevent third countries from supporting the circumvention of existing restrictions. Discussions on the new package are ongoing.

The main theme for us is Russia's war against Ukraine. We have witnessed massive strikes on Kyiv. Additionally, the European delegation was attacked. Fortunately, no one was physically harmed, but still, I mean, these shellings show that Putin is simply mocking any peace efforts. Therefore, we must increase pressure on Russia, and that is indeed what they understand — pressure,” said Kallas.

Reaction of the European Commission

The European Commission confirmed its intention to impose new sanctions after the massive attack on Kyiv on August 28.

These attacks by Russia on civilians in Kyiv, which we witnessed in Kyiv as well as in other areas of Ukraine, are completely unacceptable. They will not in any way change the determination of the European Union to support Ukraine. Our support, as always, is unwavering, and Russia's threats, including strikes on our facilities, will not in any way change our commitment to support Ukraine, so that it is in a strong position now and in the future,” emphasized European Commission representative Adriana Podesta.

Funding from frozen assets

Brussels will also focus on using income from frozen Russian assets. According to Politico, the EU plans to direct about 200 billion euros of blocked Russian funds to restore Ukraine after the war, although the confiscation of assets is currently not planned due to financial and legal difficulties.

Brussels is checking the readiness of European capitals to transfer these assets to riskier investments. They could yield more profits for Ukraine and increase pressure on Russia, which refuses to cease hostilities. Supporters of this plan also view it as a step towards potentially seizing assets and transferring them to Ukraine as punishment for Russia's refusal to pay post-war compensation,” it is stated in the article.

Position of the G7 countries

The Baltic countries support the confiscation of Russian assets, and Latvian Economics Commissioner Valdis Dombrovskis and Kaja Kallas are promoting this initiative within the Commission. The G7 states have agreed to direct 45 billion euros to Ukraine from frozen Russian assets in 2024. EU foreign ministers will discuss this plan on August 30 in Copenhagen.

We will soon present our 19th package of strict sanctions. At the same time, we are advancing work on freezing Russian assets to support the defense and recovery of Ukraine,” emphasized European Commission President Ursula von der Leyen.

Support for Ukraine

This May, the EU approved the allocation of 2 billion euros for military assistance to Ukraine, which will come from the income of frozen Russian assets through the European Peace Fund. In June, G7 leaders proposed to transfer 50 billion dollars to Ukraine from blocked Russian assets under the Extraordinary Revenue Acceleration (ERA) program, which Ukraine could receive by 2025.

In this situation, new EU sanctions could significantly impact the Russian economy while emphasizing support for Ukraine amid the ongoing conflict. The discussion of the plan to direct frozen assets towards the recovery of Ukraine is an important step towards restoring the country post-war, which in turn, could contribute to stabilizing the region as a whole.