setting sanctions
An anonymous EU official cited by Reuters described the latest round of restrictions as a “care and coordination package” and a “sixth and a half” set of measures due to the relatively small number of new bans compared with earlier rounds targeting Russian oil and coal.
While the article notes that some measures could still have a serious impact on affected industries, the EU is moving forward with a plan to ban the import of Russian gold. At the same time, the European Commission is expected to adjust existing sanctions so that they do not disrupt Russian food and grain exports.
According to Reuters sources, EU member states are set to discuss the new restrictions next week and aim to give final approval before the summer recess. One source indicated that Russian gold imports routed through third countries might also face restrictions, though details were not provided. Brussels also signaled tighter controls on imports, including goods with potential military uses, such as certain chemicals and equipment.
The same sources said that new individuals and entities perceived to be close to the Kremlin would be added to European sanctions lists, with assets frozen and travel bans imposed within the bloc.
Observers noted comments from African countries complaining that EU sanctions aggravated the global food crisis tied to Russia’s military campaign in Ukraine. They recalled the ongoing Russian blockade of Ukrainian ports, which has historically limited grain shipments to various regions around the world.
Officials stressed that the EU has long denied that sanctions directly affect food trade. A high-ranking official stated that the proposed adjustments are meant to prevent traders from misinterpreting rules, including the ban on Russian ships entering EU ports. A Reuters analysis indicated that Russian vessels would still be allowed into EU ports if they carried food or medicine.
The article also reports that some traders skirt food destined for export from Russian ports, which are controlled in practice by Russian state entities under Brussels’ measures. The new package is expected to clarify that these ports will be exempt from sanctions when appropriate.
In addition, the commission is anticipated to tighten procedures for admitting Russian ships into EU ports to prevent rounds of unloading that bypass sanctions by routing cargo to foreign ports, a move that would require broadening the definition of port access, the report adds.
Adverse Effect of Sanctions
Earlier in the day, Hungarian Prime Minister Viktor Orban criticized the sanctions, arguing they have not achieved their aims and that Europe bears the brunt of the impact. On radio, he described a setback for the EU economy and warned that inflation and growth could be affected negatively.
Orban remained hopeful that Brussels would recognize the costs of the measures and adjust policies accordingly, suggesting that the sanctions approach might be hurting the European economy more than Moscow. The Commission had warned that inflation in the euro area could peak this year and then ease in 2023, though the precise trajectory remained uncertain.
Officials noted that the overall effect depends largely on ongoing developments in the war and its consequences, especially regarding energy supplies to Europe. A fresh rise in gas prices could push inflation higher and slow economic growth, according to EC experts.
As the situation evolves, officials emphasize that Russia’s actions have a direct and measurable impact on EU economic activity and inflation forecasts. The focus remains on balancing punitive measures with the goal of preventing unintended disruptions to critical goods and markets across the union.