The European Union said on March 11 that it would prohibit Russia from importing critical iron and steel products; therefore it will limit the flow of export income that might support the country’s military invasion of Ukraine.
The EU will also block the shipment of any luxury products from member states to Russia; a part of the latest set of sanctions against Russia; this will be a “direct strike” to the country’s elites. According to European Commission President Ursula von der Leyen, the fourth package of sanctions intends to isolate Russia further and reduce its financial resources.
Depriving Russia of Export Earnings
The European Commission has not supplied a definition of targeted products. A ‘big embargo’ on new energy investments in Russia has been suggested.
According to European Commission President Ursula von der Leyen, the European Union and its G7 partners plan to ban the import of key goods in the iron and steel sectors from Russia as part of the fourth wave of sanctions aimed at further isolating Russia and draining the resources used to fund its war in Ukraine. “This will impact a vital sector of Russia’s system, depriving it of billions in export income and ensuring that our folks are not funding Putin’s war,” von der Leyen added.
By the time of publishing, the EC had not described what the important items would be and had not responded to S&P Global Commodity Insights’ request for more information. G7 leaders said they were “ready to put further restrictions on exports and imports of vital products and technologies” to deny Russia profits in a separate statement. The EU imported 3.2 million metric tons of steel finished goods from Russia in 2020; moreover, it took a projected 3.7 million metric tons in 2021. After Turkey, Russia was the second-largest provider.
The EU would extend the export prohibition to mills in Europe owned or linked with Russian firms.
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