The new punitive measures are aimed at targeting the Russian military, the defense industry and political parties, among others. Wealth and assets held in the EU will be frozen and Europeans will no longer be able to do business with them.
Europe correspondent Stefan de Vries calls the sanctions package a hammer blow, just like Bosnia and Herzegovina’s official bid for membership. ‘He is busy in the waiting room, they can also join the EU.’ And there will also be a minimum tax of fifteen per cent for businesses, something Hungary and Poland have long opposed.’
Extraction
Businesses and individuals are barred from investing in Russian mines, and the sale of drones and other war equipment to Russia is further restricted. The committee also wants to suppress four Russian channels because they would be making propaganda.
It took some time for Member States to agree on the new package. Poland and Lithuania felt they had not gone far enough and counted too many exceptions. For example, the Netherlands has negotiated space for the port of Rotterdam for the transit of artificial fertilizers which are vital to developing countries. EU countries agreed on Thursday evening, though the measures are yet to be formally stamped on Friday.
Inflation Reduction Act
EU leaders also gave the European Union the task of coming up with concrete proposals to accelerate investment in the green transition, the response to the US Inflation Reduction Act. ‘That hot potato has passed to the European Commission, which must present proposals by the end of January and then respond to the United States. There will also be an extra summit in Brussels on this topic in February.’
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