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US and EU to toughen sanctions

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Miguel A. Rodriguez
Miguel A. Rodriguez
06 April 2022
The US and the European Commission proposed new sanctions, pressuring Moscow

The EU ambassadors will meet today to decide what steps to take after allegations of Russian war crimes in Ukraine. According to Ursula von der Leyen, the EU’s planned measures include:

  • A ban on coal imports worth €4bn a year and a full ban on four Russian banks, including Russia's second-biggest bank VTB
  • A ban on Russian ships entering EU ports (with some exemptions) and on Russian and Belarusian road transport operators
  • Bans on EU exports in advanced semiconductors and machinery worth €10bn and other EU imports on wood, cement, seafood, and alcohol.
  • Russian companies would also be barred from competing for contracts across the EU.

This is the fifth set of EU sanctions so far. The member states are planning on cutting the use of Russian gas by 2/3 by the end of 2022. They want to make Europe fully independent of Russian fossil fuels by 2023.

EU’s most recent proposals tighten sanctions on four Russian banks. Even though major Russian banks have been shut out of the Swift financial messaging system, Sberbank and Gazprombank are not, as they facilitate energy payment from Europe to Russia.

On the other side of the Atlantic, White House Press Secretary Jen Psaki stated that the measures would target Russian financial and state-owned bodies and some officials and oligarchs. The move will "hold accountable the Russian kleptocracy that funds and supports Putin's war.” The sanctions will include a ban on all new investments in Russia. She added that the sanctions would be announced in coordination with the EU and other G7 nations.

Sources: bbc.com, reuters.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.