The European Union and the United States have announced a fourth wave of sanctions against Russia for its invasion of Ukraine.
In the fourth wave of sanctions announced on Friday, Luxury goods will no longer be allowed to be exported to Russia. The value of American luxury exports to Russia is about $550 million yearly.
In a statement by the President of the European Union, Ursula von der Leyen, those who sustain President Vladimir Putin’s war machine should no longer be able to enjoy their lavish lifestyle while bombs fall on innocent people in Ukraine.
What the EU and US are saying
In a fact sheet by the White House, President Joe Biden will sign an executive order (E.O) that will end the exportation of luxury items to any person located in the Russian Federation.
The sheet noted that Russian elites should no longer be able to reap the gains of this system and squander the resources of the Russian people.
“These actions will collectively ramp up pressure on Putin and build on the unprecedented package of economic sanctions and export controls the United States and over 30 countries have already imposed on Russia.”
The EU President said that the EU has disbursed EUR 300 million in emergency macro-financial assistance to support Ukraine’s finances which is the first tranche of EUR 1.2 billion financial aid package.
She said, “The EU stands firmly with the brave people of Ukraine. This is why, just this morning, we disbursed EUR 300 million in emergency macro-financial assistance to support Ukraine’s finances. This is the first tranche of our EUR 1.2 billion financial aid package. More will follow. This crisis is unprecedented. And so is the unity and speed of reaction our democracies have shown so far. You have heard me say this before and I firmly repeat it: Ukraine will prevail.
“Russia’s ruthless invasion of Ukraine continues. Civilians are relentlessly attacked, including in schools, apartment buildings, and hospitals. And despite repeated offers by the Ukrainian side, Russia has not shown any willingness to seriously engage so far in negotiations for a diplomatic solution. Instead, all we hear are new lies and false accusations. And cynically, humanitarian corridors are either still not opened or being bombed by Russian forces shortly after they are announced.
“The three sweeping waves of sanctions we have adopted, as well as the extension of their scope this week, have hit Russia’s economy very hard. The ruble has plummeted. Many key Russian banks are cut-off from the international banking system. Companies are leaving the country, one after the other, not wanting to have their brands associated with a murderous regime. Tomorrow, we will take a fourth package of measures to further isolate Russia and drain the resources it uses to finance this barbaric war.”
She noted that the EU and the G7 nations will continue to work in lockstep to ramp up the economic pressure against the Kremlin.
List of fresh sanctions announced on Friday
The fresh sanction announced yesterday in a joint statement by the EU, the G7 nations and the United States is targeted at the Russian elites. The sanctions include:
- Revoking Russia’s Most-Favored Nation Status.
- Denying Borrowing Privileges at Multilateral Financial Institutions.
- Full blocking Sanctions on Additional Russian Elites and their Family Members.
- Ban Export of Luxury Goods to Russia.
- Ban U.S. Import of Goods from Several Signature Sectors of Russia’s Economy.
- New guidance by the Department of Treasury to Thwart Sanctions Evasion, including through Virtual Currency.
- Create the Authority to Ban New Investment in Any Sector of the Russian Federation Economy.
What you should know
- Most luxury groups had already closed their stores in Russia. The fresh sanction will mostly affect the Russian elites.
- The fresh sanctions are aimed at preventing shipments of high-end watches, cars, apparel, alcohol and jewellery from reaching Russia.
- President Biden, the G7 Leaders from Canada, France, Germany, Italy, Japan, and the United Kingdom together with the European Union will announce new economic actions to hold Putin accountable for his continued assault on Ukraine.
- The actions will further isolate Russia from the global financial system. Each partner will implement actions consistent with their national processes.
Recall Nairametrics had reported that on February 24, President Biden announced new sanctions which is meant to stunt Russia’s ability to finance its military and compete in a 21st-century high tech world.
The EU President said the sanctions include stopping access of Russia’s banks to the European financial market and targeting Kremlin interests and freezing its assets in the EU.
