Europe

EU extends sanctions against Russia

Russia accuses bloc of ‘Russophobia’ and threatens to prolong ban on food imports

Ukrainians take up positions as they attend a military training session organised for civilians in Kiev on June 21st. The EU has approved an extension of economic sanctions against Russia in protest against the Kremlin’s aggressive policies in Ukraine. Photograph: Roman Pilipey/EPA epa04812795 Ukrainians in military uniforms take up positions as they attend a military training session organized for civilians, in Kiev, Ukraine, 21 June 2015. The European Union on 19 June extended economic sanctions imposed on the Ukrainian peninsula of Crimea and the city of Sevastopol following their annexation by Russia, with the measures now due to stay in place until 23 June 2016. The sanctions were introduced last year, to reinforce the EU's opposition to Russia's illegal annexation of the two territories in March 2014. Relations between Brussels and Moscow are at their worst level since the end of the Cold War, due to Russia's actions in Crimea and in eastern Ukraine, where it is accused of supporting pro-Russian separatists. EPA/ROMAN PILIPEY
Ukrainians take up positions as they attend a military training session organised for civilians in Kiev on June 21st. The EU has approved an extension of economic sanctions against Russia in protest against the Kremlin’s aggressive policies in Ukraine. Photograph: Roman Pilipey/EPA epa04812795 Ukrainians in military uniforms take up positions as they attend a military training session organized for civilians, in Kiev, Ukraine, 21 June 2015. The European Union on 19 June extended economic sanctions imposed on the Ukrainian peninsula of Crimea and the city of Sevastopol following their annexation by Russia, with the measures now due to stay in place until 23 June 2016. The sanctions were introduced last year, to reinforce the EU's opposition to Russia's illegal annexation of the two territories in March 2014. Relations between Brussels and Moscow are at their worst level since the end of the Cold War, due to Russia's actions in Crimea and in eastern Ukraine, where it is accused of supporting pro-Russian separatists. EPA/ROMAN PILIPEY
Isabel Gorst in Moscow
Tue Jun 23 2015 - 00:00

The European Union approved an extension of economic sanctions against Russia on Monday in protest against the Kremlin's aggressive policies in Ukraine.

Russia responded by accusing the EU of “Russophobia” and pledging tit-for-tat measures, which are expected to include an extension of its ban on EU food imports.

Meeting in Luxembourg, EU foreign ministers decided to prolong economic sanctions against Russia until January 31st, 2016 in response to “Russia’s destabilising role in Ukraine,” the EU said in a statement.

The aim of the sanctions is to make Russia comply with the Minsk ceasefire accord signed with Ukraine in February, EU spokeswoman Maja Kocijancic said on Twitter.

READ SOME MORE

The EU began imposing economic sanctions on Russia after president Vladimir Putin signed a treaty annexing Crimea from Ukraine in March 2014. It later stepped up the measures to protest Russia's involvement in the conflict in east Ukraine.

Nato has accused the Kremlin of sending troops and military to eastern Ukraine to support pro-Russian separatists battling government forces there.

Mr Putin has denied direct involvement in the conflict, but acknowledges that some Russian volunteers or mercenaries may have crossed the border to support the separatist rebels.

Asset freezes

EU sanctions target the key sectors of the Russian economy, including finance, energy and defence. In addition, the EU has slapped asset freezes and visa bans on Russian officials deemed responsible – or to have benefited from – the Kremlin’s interference in Ukraine.

The Kremlin responded with a sweeping ban on meat, dairy, fish, fruit and vegetable imports from countries that had sanctioned Russia.

Western sanctions, together with a sharp fall in world oil exports last year, have tipped Russia’s faltering economy into a recession.

The conflict is also taking a higher toll on the EU than Brussels initially expected, according to a new study by the Austrian Institute of Economic Research.

Sanctions against Russia and the Kremlin’s counter sanctions could cost the EU up to €100 billion in economic development and jeopardise 2.5 million jobs, the study said.