Josep Borrell, the European Union’s top diplomat, argues that the impact of sanctions against Russia may not be immediately visible, but their effect will unfold over time. Europe should exercise strategic patience until Ukraine can fully restore its sovereignty. The aim is clear: to protect democracies and uphold the international rules-based order.
According to Borrell, the restrictions already touch about 1200 individuals, a selection of roughly 100 Russian enterprises, and various sectors of the Russian economy. He emphasized that sanctions adopted by the EU and like-minded partners are pressing hard and that Vladimir Putin and his associates will face increasing economic pressure. Still, he noted that achieving the desired outcome could require patience and time.
As the war drags on and energy prices rise, questions arise about the sanctions’ effectiveness and potential side effects. Borrell pointed out that limiting the supply of semiconductors to Russia constrains the production of high-precision missiles, a factor considered decisive in the conflict. In the medium term, he warned that Russia could find itself scientifically, economically, and technologically isolated.
The cessation of Russian oil purchases by year’s end stands out as a central restrictive measure. Russia may redirect sales to other markets, but the practice involves steep price discounts, with Russian crude typically trading well below the world average. This diminishes Russia’s financial returns from oil exports while sustaining pressure on its energy sector.
Borrell noted a broadening effect: more than forty countries, including traditionally neutral states, have joined the sanctions umbrella, enhancing the policy’s reach and signaling increasing global alignment with European aims.
Gaps in European sanctions
The current policy is evolving, and some gaps are being debated. Politico reports that a new sanctions package focuses on banning gold imports from Russia but would not extend to jewelry. The European Commission is examining the scope of a potential embargo on certain gold products. The proposed text would prohibit the direct purchase, import, or transfer of listed gold products exported from Russia or through third countries into the EU. It would exclude gold in jewelry forms such as chains or rings, a gap some observers say could allow illicit flows to persist in Kremlin coffers.
Historically, a large share of Russia’s gold exports in 2019 entered through the United Kingdom, which has since left the EU. Russia remains a major gold supplier, exporting several billion euros annually. Official data show that in 2021 Russian enterprises produced 346.4 tons of gold, with roughly 87% exported, generating billions in revenue. Major buyers include India, the UAE, and China, with India consuming several hundred tons annually and China around a thousand tons, according to industry commentators.
Beyond gold, the latest sanctions package includes tighter reporting on asset freezes, stricter controls on dual-use goods and advanced technologies, and expanded prohibitions on weapons-related equipment that could be used against people. The package also outlines exemptions allowing the use of frozen assets to prevent events with significant health, safety, or environmental impacts and may extend to certain agricultural and food imports such as wheat and fertilizers. EU officials stress that sanctions do not intend to curb Russia’s agricultural trade with other nations.
European Commission President Ursula von der Leyen underscored these points, while Reuters notes that the package would also impose personal sanctions on individuals and organizations close to the Kremlin. Reports from Bloomberg suggest that some Russians could see relief from sanctions, including figures such as Usmanov, Mordashov, and Melnichenko, but no firm decisions have been made. The Commission emphasized that the new measures align EU actions with partners, notably the G7, which agreed on a gold embargo in June. Canada has also moved to restrict gold imports from Russia. The final decision on adopting the new package rests with the European Council and is anticipated before the end of July, with discussions planned among EU foreign ministers about further support for Kyiv.