Bloomberg: EU districts divided on Russia restrictions
Date
11/27/2023 4:24:33 AM
(MENAFN) In a recent development, divisions within the European Union (EU) have surfaced over the proposed sanctions on Russia, as reported by Bloomberg. Several European Union member states are reportedly seeking to dilute the recommendations put forth by the European Commission, which aims to prevent the circumvention of sanctions on Russia through third-party nations.
The European Commission's proposal, designed to counteract attempts to bypass sanctions on Russia, particularly in light of the ongoing conflict in Ukraine, suggests restrictions on trade with nations capable of re-exporting goods from the European Union to Russia. The targeted goods include high-priority items such as semiconductors with potential applications in weapons production. The proposed mechanism requires buyers to deposit a specified sum in an escrow account, ensuring compliance with the outlined sanctions. Notably, a portion of the deposited amount would be earmarked for a trust fund benefiting Ukraine, with contracts subject to termination in case of sanctions breach.
However, insiders familiar with the matter reveal that diplomats from certain large European Union countries, not identified by Bloomberg, have voiced reservations about the proposed measures. Concerns center around the legality of the sanctions and the feasibility of imposing stringent guarantees and clauses on importers. Skepticism has emerged, raising questions about the enforceability and practicality of such measures.
Sources suggest that these member states advocating for a softer approach are also pushing to narrow the scope of the proposed clauses and limit the list of targeted items. The argument put forth by these countries revolves around potential disadvantages for European Union businesses, with the belief that the proposed measures could impact competitiveness.
Conversely, other European Union member states, including the Baltic countries, reportedly support the European Commission's proposals. The divide within the European Union underscores the complexity of forging a unified stance on sanctions against Russia, as differing perspectives on legal, economic, and competitive implications come to the forefront. As discussions continue, the European Union faces the challenge of balancing the need for robust measures against Russia with the internal dynamics of member states seeking to safeguard their economic interests.
MENAFN27112023000045015687ID1107489244
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.