Hardly a day goes by without new sanctions against Russia coming into effect. Now it affects, among other things, one of the most well-known billionaires in the country and the steel industry. Some people in the EU are getting increasingly nervous.
The European Union has implemented its fourth major package of sanctions against Russia. Among other things, it includes an export ban on luxury goods to Russia, which affects not only works of art and expensive watches, but also cars worth more than 50,000 euros.
In addition, import restrictions for certain products of the Russian iron and steel industry and a comprehensive ban on new investments in the Russian energy sector were issued.
However, it is still possible to import gas, oil and coal from Russia because countries like Germany do not consider the EU’s energy supply to be secure without the deliveries. In addition to the measures mentioned, the sanctions package provides for Russia to remove trade policy advantages in response to the invasion of Ukraine, which it actually has as a member of the World Trade Organization WTO. Specifically, it is about withdrawing Russia’s so-called “most favored status”.
Sanctions against Abramovich
In addition, the Russian multi-billionaire Roman Abramovich is now one of those people against whom EU sanctions apply because of the Russian war against Ukraine. In concrete terms, this means, among other things, that the assets of the previous owner of the British football club Chelsea FC in the EU must be frozen.
The reason given in the EU Official Journal is that Abramovich is a Russian oligarch “with long-standing and close ties to Kremlin chief Vladimir Putin. He has privileged access to the President and maintains very good relations with him. The connections would also have helped the major shareholder of the steel company Evraz Group to “secure his considerable fortune”. The Evraz Group is one of the largest taxpayers in Russia.
The US magazine “Forbes” recently estimated Abramovich’s total assets at 7.2 billion US dollars (about 6.6 billion euros). In addition to the Champions League winner FC Chelsea, the 55-year-old also owns one of the largest luxury yachts in the world. The approximately 163 meter long “Eclipse” was built by the Hamburg shipyard Blohm + Voss and put into service in 2010.
Britain had already imposed sanctions on Abramovich last week in connection with Russia’s invasion of Ukraine. These also have serious implications for Chelsea FC. For the time being, the football club is no longer allowed to transfer players or sell tickets for games. The budget for trips abroad is also very limited. The measures will probably apply until Abramovich has sold Chelsea. The Russian had already announced this step before the sanctions were imposed on him.
Machine builders are demanding a waiver of EU tariffs
Meanwhile, the sanctions and their effects are also causing concern for the European economy. The Association of German Machine and Plant Manufacturers (VDMA) called on Monday for the short-term suspension of all EU steel tariffs, EU steel quotas and EU dumping tariffs on steel products.
“It is important that the EU reacts with further sanctions to the war in Ukraine, which Russia is increasingly waging,” commented Chief Executive Thilo Brodtmann. In order to cushion the effects in Europe at the same time, the EU should take additional measures to stabilize the supply chains of the European economy. As a result of the Russian war against Ukraine, steel products in the EU are becoming increasingly scarce.
EU Commission President Ursula von der Leyen said on Friday that the iron and steel sanctions should deprive Russia of “export revenues worth billions” and ensure that EU citizens do not unintentionally subsidize Kremlin chief Vladimir Putin’s war. On Tuesday, the EU Commission said it was possible that steel imports from other countries could soon be eased. A corresponding proposal was made to the EU states.
Source: Stern
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