The sanctions also include four banks from Kyrgyzstan, Laos and Azerbaijan, in a bid to crack down on sanction-busting strategies and efforts to pay for Russian oil and gas through the back door. EU businesses are also banned from dealing with Russian companies that handle or exchange cryptocurrencies. The list of sanctioned Russian banks now extends to 70 lenders.
The sanctions make it much harder for foreign banks to handle international trade, especially as they will be prohibited from using SWIFT, a financial messaging system used to communicate payment instructions across the world.
The EU is also curbing exports of a few high-tech goods to Kyrgyzstan, a Central Asian country with strong economic and political ties to Russia. Metal-working machines and radio equipment may no longer be shipped to Kyrgyzstan after customs data showed clear evidence of circumvention. It is the first time the EU is using the so-called anti-circumvention tool.
The Kyrgyz government has vowed it will, in turn, ban some exports to Russia. The two sides will monitor trade in other sensitive goods to see how Bishkek implements the changes. “Our task is to prove that we are a reliable partner,” Deputy Prime Minister Daniyar Amangeldiev told POLITICO in February.
Brussels had planned to unveil the sanctions on Feb. 24, the fourth anniversary of the Russian attack. But Budapest and Bratislava balked, accusing Ukraine of deliberately slowing repairs to the damaged 4,000-kilometer Druzhba pipeline, which carries Russian oil to Hungary and Slovakia.
Oil is now flowing again through the pipeline after Hungary’s outgoing prime minister, Viktor Orbán, lost his bid for reelection to center-right opponent Péter Magyar. Budapest also withdrew its veto on a €90 billion financial lifeline to Ukraine to help Kyiv finance its defense against Russian forces.