EU Prepares to Freeze Assets of Putin and Lavrov in New Sanctions Package

Strategic Insights -

The EU is on the cusp of freezing the assets of Russian President Vladimir Putin and his Foreign Minister Sergei Lavrov under a new sanctions package aimed at bolstering its response to Russia's invasion of Ukraine, according to sources familiar with the matter. The move comes as the EU is under pressure to step up its resistance to Putin's assault on Ukraine, with Ukrainian President Volodymyr Zelensky criticizing Europe for not imposing tough enough sanctions on Moscow. The sanctions package, which includes measures against Russian banks and industry, is set to be approved by EU foreign ministers, with the UK also promising to introduce sanctions against Putin and Lavrov.

Key Takeaways:

  • The EU is preparing to freeze the assets of Putin and Lavrov under a new sanctions package, targeting the Russian president and his foreign minister directly for the first time.
  • The package includes measures against Russian banks, industry, and state-owned companies, as well as restrictions on transactions with a wide range of Russian banks.
  • The EU is under pressure to step up its resistance to Putin's assault on Ukraine, with Ukrainian President Zelensky criticizing Europe for not imposing tough enough sanctions on Moscow.
  • Directly sanctioning foreign leaders is rare for the EU, with previous targets including Syrian leader Bashar al-Assad and Belarusian president Alexander Lukashenko.
  • The EU's push for tougher sanctions gained momentum at a summit of EU leaders ending in the early hours in Brussels, where EU leaders gave the political greenlight for the second sanctions package.
  • Ursula von der Leyen, European Commission president, expects the measures to have "maximum impact on the Russian economy and on the political elite."

Statistics:

  • 2 new sanctions packages in 3 days, with a focus on targeting Russia's economy and political elite.
  • 5 state-owned Russian banks blocked from EU financing include VTB, Gazprombank, and Rosselhoznadzorbank.
  • Lending and the purchase of securities will be prohibited in 7 state-owned Russian enterprises, including companies in the aerospace and defense sector, shipping, and shipbuilding.
  • Russians will not be able to make any new deposits of more than €100,000 in EU banks.
  • 4 people familiar with the matter confirm that Putin and Lavrov will be directly targeted with sanctions.

Sources:

  • "EU is preparing to freeze assets of Putin and Lavrov": Associated Press
  • "EU to introduce new sanctions package targeting Russia": Reuters
  • "Putin and Lavrov to be hit with sanctions, EU leaders agree": The Guardian
  • "Europe's sanctions against Russia: what you need to know": Financial Times
  • "EU to cut off Russian banks from Swift messaging network": Bloomberg