EU planning to add to $1.5 trillion sanctions hit on Russia

New proposed listings target Russia’s ‘military industrial complex, human rights violators and propagandists’.

The European Union is planning to impose new sanctions on 80 entities and individuals supporting Russia's war on Ukraine, targeting Russia's military industrial complex, human rights violators, and propagandists. EU foreign policy chief Josep Borrell announced the proposed listings, which aim to boost the $1.5 trillion hit on Russia's economy. The new restrictions will include asset freezes and travel bans on individuals and entities involved in Russia's war efforts. The proposed sanctions are expected to be finalized in the coming weeks.

The new sanctions could lead to higher oil prices, affecting the cost of fuel and transportation for consumers. As Russia is a major oil producer, any disruption to its oil exports could lead to a shortage in global supply, driving up prices. This could result in higher costs for commuters, businesses, and industries that rely on fuel. The impact of higher oil prices would be felt directly by consumers through increased fuel costs.

The EU's sanctions on Russia are part of a broader effort to pressure Russia to end its war on Ukraine, which began in 2014. The conflict has led to a significant deterioration in relations between Russia and the West, with multiple rounds of sanctions imposed on Russia since 2014. Insiders know that the EU's sanctions are carefully calibrated to target specific sectors of the Russian economy, such as its military industrial complex, while minimizing the impact on European businesses. The EU's approach is designed to weaken Russia's ability to wage war while avoiding a full-scale economic collapse.

The EU is expected to finalize the new sanctions in the coming weeks, with a decision likely to be made by the end of the month. The European Commission will review the proposed listings and make a recommendation to EU member states, which will then vote on the sanctions. A surprising detail is that some EU member states are pushing for even tougher sanctions on Russia, including a potential ban on Russian oil imports, which could have significant implications for the global energy market.