EU is preparing the 12th package of sanctions against Russia

The European Union is preparing to struggle over what should be included in its 12th package of sanctions over Russia's war against Ukraine. The new package may appear in the first half of October or be announced during the EU-US summit scheduled for next month, the date of which has not yet been set.

This was reported by Bloomberg.

The new measures, which may be presented as early as next month, are likely to include a long-awaited decision to use the profits generated by the frozen assets of the Russian central bank to help Kyiv, sources familiar with the discussions said.

A group of member states, including Poland and the Baltic states, want to go even further, the sources said. The group has called for additional sanctions on LNG and IT services among the measures they would like to see in the new proposal.

The group also called for restrictions on Russia's nuclear sector. However, these attempts have been repeatedly resisted because too many member states oppose them.

Any new package is likely to also include further steps to limit Russia's ability to circumvent EU sanctions through third countries such as the United Arab Emirates and Turkey.

As part of the discussions, the Commission will put forward proposals in the coming weeks to introduce a tax on windfall profits from frozen assets of the Russian central bank generated in clearing houses, despite opposition from the European Central Bank.

European Commission President Ursula von der Leyen is likely to push for a windfall tax after her earlier promise, but member states have expressed concerns about legal and financial stability. With the Russian central bank's assets frozen at around €200 billion, some European leaders have called for a portion of this amount to be used to rebuild Ukraine.

Author – Anastasiya Glotova, 18/09/2023