The European Union will ban the export of luxury goods to Russia. According to EU Commission President Ursula von der Leyen, this is the new sanctions package with which the EU and its partners will react to Russia’s war against Ukraine.
The export ban on luxury goods is primarily aimed at Putin’s many rich supporters. Assets that already existed in the west of many had recently been frozen. In addition, those affected are no longer allowed to enter the EU.
“Those who keep Putin’s war machine running should no longer be able to indulge in their pompous lifestyles while bombs fall on innocent people in Ukraine,” von der Leyen said on Friday shortly after the EU summit in Versailles near Paris.
In addition to the import ban on luxury goods, the new sanctions package envisages a ban on the import of certain products from the Russian iron and steel industry. This is a blow to a central sector of the Russian system and deprives the country of billions of dollars in export earnings, the Commission President said.
In addition, according to them, a comprehensive ban on new investments in the entire Russian energy sector is planned and Russia is to be abolished trade policy benefits that it actually has as a member of the World Trade Organization WTO. In concrete terms, Russia is to be deprived of its “most favored status”.
The most favored nation (MFN) principle means that members of the World Trade Organization must give all other members equal access to their market, with few exceptions. As a rule, tariffs cannot be arbitrarily set higher for a specific country. One of the exceptions is national security.
According to von der Leyens, there will also be efforts to suspend Russia’s rights as a member of key multilateral financial institutions, including the International Monetary Fund and the World Bank. “We will ensure that Russia can no longer receive funding, loans or any other benefit from these institutions,” she announced. “Because Russia cannot grossly violate international law on the one hand and expect to enjoy the privileges as part of the international economic order on the other.” (dpa)