European Union Agrees New Sanctions Against Russia, Josep Borrell: It Would Be Very Detrimental

European Union foreign policy chief, Josep Borrell. (Source: Indonesian Ministry of Foreign Affairs)

JAKARTA - The European Union approved new sanctions against Russia that will blacklist more politicians, lawmakers, and officials, ban EU investors from trading in Russian sovereign bonds, target imports and exports with separatist entities.

However, EU foreign ministers chose not to sanction Russian President Vladimir Putin, EU foreign policy chief Josep Borrell said after a meeting in Paris on Tuesday.

Russia's official recognition of the two breakaway territories in eastern Ukraine is an unacceptable violation of Ukrainian sovereignty, Borrell said.

"The sanctions package that has been unanimously approved by member states will hurt Russia, and it will be very detrimental," Borrell said at a news conference with French Foreign Minister Jean-Yves Le Drian at a meeting in Paris.

Separately, Estonian Prime Minister Kaja Kallas told Reuters further Russian aggression in Ukraine would result in more sanctions, in coordination with the United States.

The sanctions package includes all members of Russia's lower house of parliament who voted in favor of recognizing the breakaway territory, freezing any assets they have in the EU, and barring them from traveling to the bloc.

It was not immediately clear when the sanctions would take effect, but diplomats expect it in the coming hours or days, when names and details will be announced.

"We will target 27 individuals and entities that play a role in undermining or threatening the territorial integrity, sovereignty, and independence of Ukraine," Borrell said.

Borrell further said the individuals and entities were in Russia's defense, banking, and financial sectors.

"We are targeting the ability of the Russian state and government to access our capital and financial markets and services," he said. Banks involved in financing separatist activities in eastern Ukraine will also be targeted.

The two regions could also be removed from the free trade deal between the EU and Ukraine, "to ensure that those responsible clearly feel the economic consequences of their illegal and aggressive actions," the EU statement said.

In addition, Borrell congratulated Germany's decision to put the Nord Stream 2 gas pipeline project on ice, which was arguably the most widespread reaction to Moscow's move late Monday. European Commission President Ursula von der Leyen also praised Berlin.

Taking steps to limit or prohibit Russia's access to the Belgium-based global interbank payment system SWIFT, which is used to flow Russian money, does not necessarily form part of EU sanctions.

The EU has repeatedly said it is ready to impose 'major consequences' on the Russian economy if Moscow invades Ukraine, but also noted, given the EU's close energy and trade relations with Russia, the EU wants to move in stages.

It is known that not all of the 27 member states of the bloc have the same relationship with Russia or dependence on its gas, which in turn could complicate the implementation of further sanctions.

EU officials and diplomats say several EU countries, including Austria, Hungary, and Italy, Russia's closest ally in the bloc, would prefer more limited sanctions in response to President Putin's move in eastern Ukraine.

Italian Prime Minister Mario Draghi, whose country relies on Russia for most of its gas, told a news conference in Rome that any sanctions should not include energy imports.

To note, United States President Joe Biden on Tuesday also announced new sanctions against Russia's elite and two banks, as the West tries to halt an all-out invasion of Ukraine by punishing Moscow for ordering troops into the two separatist territories it has recognized.