France, Netherlands Push for Broader EU Sanctions on Russia’s War Effort

France and the Netherlands are pushing sanctions against any global financial institution that aids Russia’s military in purchasing goods or technology for weapon production, as revealed in a proposal obtained by Reuters.

The EU aims to prevent the circumvention of the 13 existing sanction packages imposed on Russia since its full-scale invasion of Ukraine in February 2022. These sanctions include prohibiting the sale of certain dual-use goods and technologies to Russia.

Ambassadors from EU member states will discuss the proposal on Wednesday, May 15 as part of the preparation for the 14th sanctions package against Russia.

According to the proposal, individuals within the EU could face a ban on conducting business with any financial institution worldwide identified by the EU as directly or indirectly aiding Russia’s military in obtaining prohibited dual-use goods and technologies.

Such a ban could significantly discourage financial institutions in the Middle East, Turkey, or even China from engaging in deals to supply EU-sanctioned dual-use goods to Russia, as they risk losing access to European business and the EU’s financial markets.

Last month, the European Commission expressed concerns about signs that Beijing was supplying components to Russia that could be used in weapon production.

EU officials mentioned that the European Commission would likely coordinate any such sanctions on financial institutions with the United States, enhancing the effectiveness of this measure.

The EU anticipates having the 14th sanctions package ready in June, as it’s requiring unanimity among all 27 EU member states.