EU agrees sanctions “to harm Russia” for the crisis in Ukraine

The European Union (EU) agreed to new sanctions against Russia which will include blacklisting more politicians, lawmakers and officials, banning EU investors from trading in Russian state bonds and restricting imports and exports with breakaway entities.

However, EU foreign ministers have decided not to sanction Russian President Vladimir Putin, EU foreign policy chief Josep Borrell said after a meeting in Paris on Tuesday.

Russia’s formal recognition of two breakaway regions in eastern Ukraine was an unacceptable violation of Ukraine’s sovereignty, Borrell said.

“This package of sanctions, which has been approved unanimously by the Member States, will hurt Russia, and it will hurt Russia a lotBorrell said alongside French Foreign Minister Jean-Yves Le Drian at a meeting in Paris.

Separately, Estonian Prime Minister Kaja Kallas told Reuters that further Russian aggression in Ukraine would lead to further sanctions, in coordination with the United States.

The sanctions package includes all members of the Russian Lower House of Parliament who have voted to recognize the breakaway regions, freeze any assets they have in the EU and ban travel to the bloc.

It was unclear when the sanctions would take effect, but diplomats hope they will in the next few hours or days, when names and details are made public.

Borrell also said: “We are going to target 27 individuals and entities that are playing a role in undermining or threatening the territorial integrity, sovereignty and independence of Ukraine”.

Borrell pointed out that these people and entities belonged to the Russian defense, banking and finance sector.

“We target the ability of the Russian state and government to access our financial and capital markets and servicesBorrell said.

Banks involved in financing separatist activities in eastern Ukraine would also be targeted.

The two regions could also be excluded from a free trade agreement between the EU and Ukraine,”to ensure that those responsible clearly feel the economic consequences of their illegal and aggressive actions”, according to an EU statement.

Praise to Germany

Borrell congratulated Germany on its decision to freeze the Nord Stream 2 gas pipeline project, possibly the most far-reaching reaction to Moscow’s move late on Monday. European Commission President Ursula von der Leyen also praised Berlin.

The EU has repeatedly said that it is ready to impose “massive consequences” to the Russian economy if Moscow invades Ukraine, but has also signaled that, given the EU’s close energy and trade ties with Russia, it wanted to act in stages.