However, there is still no agreement on the Swift banking communications network. The punitive measures affect, among other things, the areas of energy, finance and transport. In addition, there should be export controls for certain products and restrictions on issuing visas.
Von der Leyen vowed unity
EU Commission President Ursula von der Leyen swears by the unity of the EU on Friday night after around six hours of consultations, to which Ukrainian President Volodymyr Zelenskyj was also involved. “Our unity is our strength,” she said. Russian President Vladimir Putin is trying to redraw the map of Europe. “He must and he will fail.”
However, the heads of state and government were not as united as von der Leyen described it. Several of them called for even more far-reaching measures even before the special summit began. Among other things, the focus is on the banking communication network Swift. A Swift exclusion would effectively exclude Russian financial institutions from the global financial system.
Germany against Swift exclusion of Russia
Germany is one of the countries that are currently rejecting this sanctions instrument. The German Chancellor Olaf Scholz justified this attitude in Brussels with strategic considerations. One should initially stick to the package of sanctions that has been prepared over the past few weeks, he said. Everything else must be “reserved for a situation where it is necessary to do other things as well”. However, Scholz did not say what kind of situation this could be.
Also Nehammer against Swift exclusion
Chancellor Karl Nehammer (ÖVP) also spoke out against including Swift in the current package. “Swift is currently not an issue in the proposals either,” he said. “The background to this is that Swift’s suspension would affect the Russian Federation less than the European Union.” Firstly, Russia has its own payment system and secondly, Russia would immediately switch to the Chinese payment system.
According to an EU diplomat, Italy, Cyprus and Hungary agreed with Germany that the time for the Swift exclusion was not right.
In contrast, several heads of state and government spoke out in favor of the harshest possible punitive measures and some also named Swift. The Slovenian Prime Minister Janez Jansa emphasized that the strictest possible sanctions package must be decided – including Swift exclusion. And Polish Prime Minister Mateusz Morawiecki said: “We have to campaign for massive sanctions use, for strict sanctions against Putin, against Russia. We cannot allow another Rubicon to be crossed by Putin.”
EU accession of Ukraine was not discussed
Slovenia’s proposal for Ukraine’s EU accession was also not discussed, said Nehammer after the conclusion of the consultations in Brussels. “Premature EU accession would do nothing for Ukraine or for the European Union because the systems are so different.”
Nehammer expects third package of sanctions
Nehammer expects further punitive measures against Russia. “One assumes that a third package is coming, and it will be aimed very specifically and intensively at those who actually have power and influence in the Kremlin,” Nehammer said early Friday. Another package of sanctions was discussed, “because the force of the Russian Federation’s aggression far exceeds what was already expected when the sanctions have been prepared”. According to EU circles, the possibility should also be created to freeze the assets of Russian oligarchs in the EU. “Of course, this will also lead to system changes for Russian oligarchs in Austria,” affirmed Nehammer.
The situation in Ukraine is dramatic. “Putin has now used violence to create facts,” said Nehammer. Putin’s “violent rhetoric” is part of the legend of the attack and its narrative. The EU is more closed than ever, “from our point of view, the Russian Federation and President Putin have clearly miscalculated.” You have to explore how you can restore a basis for discussion on Russia.
That’s what the sanctions are supposed to do
With the ones that have now been decided sanctions against the financial sector, the main aim is to cut off banks from the EU financial markets. In the future, they should no longer be able to borrow or lend money in the EU. In addition, the refinancing of Russian state-owned companies in the EU is to be prevented. Your shares will no longer be traded in the EU. Something similar is planned for the energy sector.
Both sanctions against the transport sector, the main aim is to cut off the supply of spare parts and other technology to the Russian aviation industry. This could have a huge impact with relatively little effort and even shut down entire fleets, it said on Thursday in Brussels. The export controls for high-tech products and software are intended to make it difficult for other key Russian industries to develop further. The country could be hit hard in the medium and long term, it said in Brussels.
The restrictions on visa policy are said to be aimed at Russians, who previously had privileged entry opportunities into the EU. In addition to diplomats, this also includes business people, for example.
Source: Nachrichten
