EU prepares 11th package of sanctions against Russia

European Union (EU) Commission President Ursula von der Leyen said that the 11th package prepared for Russia will include new elements to prevent sanctions from being circumvented or bypassed. Von der Leyen and EU Council President Charles Michel held a press conference at the end of the first day of the EU Leaders’ Summit in Brussels. Drawing attention to the fact that sanctions circumvention and gaps in existing sanctions were becoming an increasingly serious situation, von der Leyen said, “When we impose sanctions, the other side tries every way to avoid and undermine the sanctions.” Von der Leyen pointed out that the 10th package most recently adopted against Russia included various elements that strengthen the implementation of existing sanctions, eliminate gaps and prevent their being circumvented. Explaining that the EU has appointed a representative on sanctions and that this person meets with countries where sanctions are observed to be violated, von der Leyen emphasized that they are also working intensively with G7 countries to ensure harmonization and share information on preventing sanctions violations. Von der Leyen reminded that the EU’s 10th sanctions package introduced the possibility of listing individuals, companies or organizations in third countries that violate the measures in question. Pointing out that they have taken various measures against violations of the sanctions, von der Leyen said, “These measures are definitely not sufficient. Therefore, the 11th sanctions package will mainly deal with the problem of how to prevent circumvention of the sanctions.” Drawing attention to the fact that the important topic at the meeting was the competitiveness of the economy and industry, von der Leyen said that global competition has become very strong. Stating that “the EU still has work to do to develop its own clean technology industry,” von der Leyen reminded that they have prepared a Green Deal Industrial Plan on this subject. Recalling that they prepared the net zero industry and critical raw materials bills two weeks ago, von der Leyen stated that the European Parliament (EP) and member states should act quickly for these laws to come into force. Emphasizing the importance of quickly getting rid of the current barriers in the EU market, von der Leyen explained that they need to deepen the capital markets union and complete the banking union. Von der Leyen said, “We need major public investments in infrastructure and cutting-edge projects. This also requires sustainable public financing.” R&D spending should increase Drawing attention to the importance of increasing R&D spending in EU countries, von der Leyen explained that the key to success is innovation and that although the EU set a target of investing 3 percent of GDP in R&D 20 years ago, this rate remained at 2.3 percent, while competitors were spending much higher. Preparations to ease bureaucracy EU Council President Michel also stated that they held a comprehensive discussion on competitiveness, the single market, and energy issues, and said that the leaders committed to working together to ease the administrative burden, facilitate initiatives, speed up procedures, and move forward with smart rules and regulations in order for Europe to be more competitive. “In order to successfully complete the digital and green transformation, we also need to be more ambitious in investments in innovation.” Michel said, emphasizing that they need to mobilize private capital to support this. The US provides significant incentives for strategic investments with its inflation reduction law. The EU is concerned that European manufacturers will lose their competitive advantage in the face of incentives and support in countries such as the US and China, and is trying to take precautions in this area.