The European Union, at an emergency overnight summit, approved a package of “massive and targeted” sanctions on Russia.
The financial sanctions will “cut Russia’s access to the most important capital markets,” she said. “We’re now targeting 70 percent of the Russian banking market, but also key state-owned companies including the field of defense. And these sanctions will increase Russia’s borrowing costs, raise inflation, and gradually erode Russia’s industrial base.”
The EU will also be banning the sale of all aircraft spare parts and equipment to Russian airlines. “This will degrade the key sector of Russia’s economy and the country’s connectivity—three-quarters of Russia’s current and commercial air-fleets were built in the European Union, the U.S., and Canada, and therefore they are massively depending on that.”
For the fourth pillar, von der Leyen said the EU will be “limiting Russia’s access to crucial technology.” She said, “We will hit Russia’s access to important technologies it needs to build a prosperous future, such as semiconductors or cutting-edge technologies.”
And fifth, “diplomats and related groups and business people will no longer have privileged access to the European Union,” von der Leyen said.
Details of the sanctions are to be worked out in the coming days.