European Union announces ban on import of Russian coal; leaders mull to hit oil sector

As Russia wages a war against Ukraine, the European Union has announced the fifth round of punitive measures against the Kremlin on Tuesday-- aiming to hit the massive revenue generated by the energy sector. According to the fresh sanctions announced by the European Commission President Ursula von der Leyen, the bloc will impose an import ban on coal from Russia, worth 4 billion euros ($4.39 billion) per year. While announcing the measures on Tuesday afternoon, she said that coal was a vital source of income for Russia and, therefore, it was crucial for the European Union to impose a ban on its import.   

"Russia is waging a cruel war, not only against Ukraine's brave troops but also against its civilian population. It is important to sustain utmost pressure on Putin and the Russian government at this critical point," said Ursula von der Leyen. 

"The four packages of sanctions have hit hard and limited the Kremlin's political and economic options. We are seeing tangible results. But clearly, in view of events, we need to increase our pressure further. Today, we are proposing to take our sanctions a step further. We will make them broader and sharper so that they cut even deeper into the Russian economy," she added. 

EU also announces ban on four key Russian banks

According to the European Commission President, the sanctions that she announced on Tuesday have six pillars in which she has placed the ban on coal as the most crucial step to hurt the Russian economy. Apart from a ban on Russian coal imports, she has also proposed a full transaction ban on four key Russian banks, including the VTB, the second largest Russian bank.

She said these four banks represent 23% of the market share in the Russian banking sector. Further, she maintained that the block has also banned Russian vessels and Russian-operated vessels from accessing EU ports. However, she said certain exemptions will be given to cover essentials, such as agricultural and food products, humanitarian aid, and energy.

"We are working on additional sanctions, including on oil imports, and we are reflecting on some of the ideas presented by the European leaders, such as taxes or specific payment channels such as an escrow account," added the European Commission President. She also announced a ban on Russian semiconductors including, quantum computers, sensitive machinery and transportation equipment. She also announced specific new import bans, worth EUR 5.5 billion in order to cut the money stream of Russia and its oligarchs on products such as wood, cement, seafood and liquor. "In doing this, we also close loopholes between Russia and Belarus," said Ursula von der Leyen.

Image: AP/Twitter/@vonderleyen/Pixabay