The armed confl ict in Ukraine and the annexation of the Crimea have reduced the possibility of establishing in Ukraine the principles of democracy and the political system in force in the European Union. After the violation of territoriality of Ukraine, Russia ceased to be treated as a strategic partner of the European Union (Malek 2015).
Russia’s armed intervention in Ukraine triggered a strong response from the European Union in the form of sanctions. The EU sanctions against Russia called smart sanctions (Crozet, Hinz), adopted between March and July 2014, concerned mainly the ruling elite responsible for military
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Part II. The European Neighbourhood Policy: A Need for Evolution or Revolution?intervention in Ukraine (Portela 2014). Other countries in the world such as Albania, Australia, Montenegro, Georgia, Japan, Canada, Moldova, Norway, New Zealand, the United States and Ukraine also have sanctions.
In March 2014, after the intervention of Russia in Crimea, the Council adopted Council Regulation No 269/2014 on restrictive measures in respect of measures undermining territorial integrity, sovereignty and independence of Ukraine or threatening them, expressly condemning the violation of territorial integrity of Ukraine.
In March 2014, the Council of the European Union adopted a document, part of the EU sanctions against Russia, Decision No 2014/145/CFSP on restrictive measures in connection with actions undermining territorial integrity, sovereignty and independence of Ukraine or threatening them (Council Decision 2014/145/CFSP 2014). It was forbidden to enter the territory of the European Union and pass through EU territory to natural persons from Russia who supported or implemented actions that undermined the integrity of Ukraine.
With the intensifi cation of Russia’s actions in Ukraine, the European Union introduced further sanctions on trade and capital movements in June 2014. Banned imports of goods from Crimea and Sevastopol, restrictions on trade, investment in selected sectors of the economy (European Council 2017).
In July and September 2014, the European Union introduced sanctions on trade with Russia, the movement of persons and sanctions in certain sectors of the economy.
Based on the conclusions of the European Council of 16th July 2014 (Council of the European Union 2014). The European Council has decided to extend sanctions on Russia for restrictive measures against those responsible for violating the territorial integrity of Ukraine. The European Council has commissioned the EU Council to prepare by the end of July 2014 a list of entities and persons from Russia supporting the operations in Ukraine. The European Council also requested the European Investment Bank to suspend the approval of EIB Financing Operations in Russia. On 25th July 2014, the Council of the European Union tightened sanctions against Russia, based on the conclusions of the European Council of 16th July 2014 (Council of the European Union 2014 b).
On 29th July 2014, the EU adopted a package of further economic sanctions against Russia, sectoral cooperation. A ban on the access to state-owned institutions from Russia to the EU capital market was imposed, an arms embargo was imposed; a ban on exports of dual-use items by military
Wanda Dugiel, European Union Neighborhood Policy and Relations with Russia
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users and sensitive technologies in the oil industry has been imposed (European Council 2014).
On 29th July 2014, the Permanent Representatives Committee agreed on the measures restricting the access to the EU capital market. EU natural and legal persons (entities) have been banned from buying and selling bonds, shares and fi nancial instruments with a maturity of more than 90 days, issued by banks in Russia and their subsidiaries (Council of the European Union 2014c). On 30th July 2014, another 8 people and 3 entities were included in the list of persons subject to asset freeze and the total number of people subject to sanctions was 95 people and 23 members (Council of the European Union 2014d).
By adopting the European Council conclusions of 16th July 2014, the Council of the European Union announced on 30th July 2014 that measures to limit trade and investment in the Crimea and Sevastopol had been announced. New investment has been banned for infrastructure projects in the transport, telecommunications, energy, mining, gas, oil and mineral sectors. A ban on the provision of fi nancial and insurance services related to these transactions was imposed (Council of the European Union 2014e).
On 31st July 2014, the Council of the European Union, following the decision of the Permanent Representatives Committee of 29th July 2014, adopted further restrictions on Russia’s restriction on access to capital markets for citizens and companies from Russia; citizens and companies from the EU have been banned from buying and selling new bonds, shares and fi nancial instruments with a maturity of more than 90 days, issued by major banks, development banks and their subsidiaries (Council of the European Union 2014f).
On 11th September 2014, another package of economic sanctions entered into force, tightening up on 31st July 2014 (Council of the European Union 2014g). First and foremost, the European Union came closer to accessing the EU capital market. Citizens and EU companies were banned from lending to the fi ve largest state-owned banks in Russia, forbidden to sell new bonds, shares and fi nancial instruments with a maturity of more than 30 days. These restrictions were imposed on the three most important defense industry companies and three power industry companies. EU sanctions took hold in three major power industry companies: Rosneft, Gazpromneft, Transneft (Yunle Mo 2016).
Additional 24 people involved in actions for territorial integrity of Ukraine, including the new leadership of Donbas, the government of Crimea, as well as Russian decision-makers and oligarchs were added to the
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Part II. The European Neighbourhood Policy: A Need for Evolution or Revolution?list of persons subject to travel bans and freezes. The total number of people subject to sanctions was 119, while the assets of 23 units were frozen in the EU (Council of the European Union 2014h).
The European Union has called for Russia to implement the Minsk provisions (European Council. Conclusions 2014i). Due to the tightening of the confl ict in Ukraine, the European Union has not withdrawn its sanction decisions. In March 2015, the European Union extended the sanctions until 31st July 2016.
Due to non-compliance with the Minsk agreements, the Council adopted economic sanctions for further 6 months, until 1st July 2016, for a further period ending on 19th December 2016 and then until 28th June 2017. The Council subsequently imposed economic sanctions until 31st January 2018. 150 assets and 37 entities were freezing assets. On 13th March 2017 the EU extended the sanctions until 15th September 2017. In August 2017 the European Union adopted further restrictive measures against Russia and the Crimea as a result of violations of territorial integrity of Ukraine (Council Implementing Regulation (EU) 2017/1417).
Sanctions against Russia were also introduced by the United States, which as of 6th March 2014 announced the blockade of property of some people responsible for undermining the authority in the Crimea without permission from the Ukrainian government, interfering in the democratic processes in Ukraine. It was recognized that Russia’s actions pose a threat to the national security of the United States (Presidential Documents 2014).
The United States’ President, in the executive order of 24th March 2014, extended the scope of the sanctions against persons in Russia, any property and property in the United States held by the United States or a foreign branch, were blocked, could not be withdrawn by people who operated in the fi nancial services, energy, metals and mining, engineering, defense industries (The President Executive Order 13662, 2014). In mid-2017, the United States tightened the sanctions against Russia. The Sanctions were adopted by US President Donald Trump in 2017, backed by the Congress and the Senate.
Russia has responded to the introduction of economic sanctions by the EU, the United States and other states by also imposing economic sanctions.
On 20th March 2014, a list of US and Canadian citizens was banned from entering Russia, and on 6th August 2014, the Russian President announced a decree establishing an embargo on agricultural products from the USA, the EU, Norway, Canada and Australia.
Wanda Dugiel, European Union Neighborhood Policy and Relations with Russia