…In a monumental push to cripple Russia’s wartime economy
Shortly, the executive arm of the European Union [EU] will for the first time propose banning new investments in Russia’s mining sector, bolstering efforts to hurt Moscow’s ability to fund its war against Ukraine.
In a report yesterday, the Financial Times [FT] said the proposal from the European Commission [EC] will be under discussion with the EU’s 27 member states in the coming days, with the aim to reach an agreement by the end of next week.
European Union officially are said to have tried to avoid sanctions in the direction of targeting Russia’s metals sector because of fears about how the sanctions might impact on global supply chains.
Quoting three unnamed sources conversant with the discussions, the FT said a potential ban will have exceptions for some specific products.
Russia produces gold, uranium, iron ore, titanium and other metals. The country’s mining sector accounted for a quarter of foreign investment into the country before the Ukraine war started in February, the report said, citing the Organization for Economic Co-operation and Development.
The new proposal is explained as part of a ninth sanctions package being crafted by the EU targeting Russia after President Vladimir Putin ordered troops into Ukraine in late February.
In the first of the sanction, which took effect on Monday, December 5, the EU, along with Western allies, has targeted Russia’s oil industry, Russian banks, as well as hundreds of government officials and oligarchs.
The second stanza of the sanctions comes up in February