POLITICO Europe: Kyiv calls for more EU sanctions against Moscow as Russia’s military buildup continues near the border with Ukraine.
The EU should up its sanctions game against Moscow to help Ukraine defend itself against Russia, Ukraine’s Deputy Minister for Economic Development, Trade and Agriculture Taras Kachka told Morning Trade in an interview.
“[Sanctioning] is a tool which is in the hands of the EU, and this is really solidarity with Ukraine as well as the most efficient tool against Russia because diplomacy is always good, but economic sanctions are the most visible element [to counteract] aggressive behavior of Russia,” Kachka said.
“The extension of the list of sanctioned persons and companies is always good news,” Kachka said, adding that “the way that Russia behaves, I think it provides more justification for sectoral sanctions.”
He cited Ukraine’s opposition to the Russo-German gas pipeline project Nord Stream 2 and said halting its construction would be “the most painful project” for Moscow.
The EU could also sanction Russia’s financial markets — like what the U.S. did last Thursday — “that is as well a very efficient direction for sanctions,” Kachka said.
Moscow’s decision last Friday to close off parts of the Black Sea near Crimea and the Kerch Strait to non-Russian warships and state vessels from April 24 to October 31 is both a military and economic danger for Ukraine, from Kyiv’s perspective.
“As the zone of suspension of the passage coincides with the entrance to the Kerch-Enikal Channel, these restrictions will jeopardize the passage of Ukrainian and foreign ships through the Kerch Strait — the only way for international commercial transportation from/to Ukrainian ports on the Sea of Azov,” said the Mission of Ukraine to the EU.
Even though the closure officially applies only to non-commercial ships, “it will indirectly lead to significant reduction in the passage of commercial cargo through the specified area, as it will make it impossible to file international lawsuits against Russia in case of negative consequences of eventual incidents or accidents therein, where the established restriction applies,” the mission said.
Mariupol is a major port and trade hub on the Azov Sea in the Ukraine-controlled part of the Donetsk region.
“If these restrictions are in force during the second and third quarters of the current year, the Commercial Sea Port of Mariupol may experience a decrease in volume of cargo goods by 3.2 million tons, which … will lead to a significant shortfall in revenue payments,” warned the Ukrainian Mission to the EU, adding that the port employs 2,905 people.
“We also called on international partners to increase political and diplomatic pressure on the aggressor state so that it revokes the decision to close the water areas and stops the escalation in the Azov-Black Sea region,” the mission said.
Ukrainian businesses, meanwhile, are hoping for deeper economic integration with the EU, which they argue will lead to greater stability in Europe. “Obviously, the EU’s capacities to strengthen Ukraine’s security by military means are limited at best. The EU is first and foremost a trading bloc,” the Ukrainian Business & Trade Association wrote. “Offering greater market access, integrating Ukraine more deeply in the EU Internal Market in select areas to the mutual benefit of the EU and Ukrainian producers is the best way for the EU to invest in geopolitical stability of its largest eastern neighbour.”
By Sarah Anne Aarup