EU seeks wider Russia sanctions
July 26, 2014
On Friday, the European Union moved closer to widening sanctions against Russia for its perceived role in the conflict in eastern Ukraine, where the government is pressing on with its campaign against separatists.
Commission chief Jose Manuel Barroso confirmed late Friday that the body had "adopted legislative proposals on these measures."
"The final decision is now up to the EU member states," he said in a statement announcing the outline.
The EU could adopt the measures at a meeting of delegates from member states on Tuesday. New sanctions would restrict access to EU capital markets and target Moscow's defense and technology sectors.
European Council President Herman Van Rompuy said the proposed sanctions package "strikes the right balance" in terms of costs and benefits to the EU, while also maintaining the flexibility to increase or reverse the penalties over time.
In comparison to the United States, the EU has been reluctant to adopt tough measures against the economic sector - affecting businesses rather than individuals. However, the alleged shooting down of Malaysia Airlines flight MH17 by separatists in eastern Ukraine has heightened the clamor for harder-hitting sanctions.
German business cautious
The German industrialist Eckhard Cordes told Deutsche Welle that business would be keen to avoid an escalation of sanctions.
"If it becomes unavoidable, if it is decided in the political arena, then German industry will be there," Cordes said. "But there have to be sanctions that do not automatically result in a sanction spiral that we cannot easily end."
On Friday, Russia's central bank unexpectedly raised its key interest rate by 50 basis points to 8 percent, ostensibly to shield the country's economy from further damage.
In a news release on Friday, the European Union announced that the officials had also slapped EU-wide asset freezes and travel bans on 15 more Russians and allied Ukrainians. The measures are to take effect immediately and would bring the number of people under EU sanction over Russia's actions in Ukraine to 87.
On Friday, a Ukrainian security spokesman said that 13 soldiers were killed while battling separatists in a 24-hour period. The army also reported that its soldiers came under artillery fire from the Russian side of the border overnight.
rc/mkg (AFP, AP, dpa, Reuters)