EU Agrees To 9th Russia Sanctions Package After Fierce Division On Food & Fertilizer

EU Agrees To 9th Russia Sanctions Package After Fierce Division On Food & Fertilizer

On Thursday EU leaders scrambled to resolve discord over the proposed 9th round of anti-Russia sanctions. After throughout much of the day failing to reach consensus and resolve a divisive “food security and fertilizers” dilemma, the EU agreed at the last hour on the fresh Russian sanctions, issuing an announcement late in the evening (local time). Shortly before 10pm Brussels time, it was announced, “Officials said a compromise deal was reached on the sidelines of an EU leaders summit in Brussels and that the sanctions would be formally confirmed on Friday.”

The EU’s Czech presidency tweeted of the last-minute breakthrough on the sanctions: “Ambassadors agreed in principle on a sanctions package against Russia as part of the EU’s ongoing support for Ukraine.” Multiple countries had opposed several changes to existing measures. The debate appears to have centered on how far restrictions would go on food-related exports, and whether this ultimately does more harm than good when it comes to the globally pressing matter of food security.

Coastal countries, especially Belgium and the Netherlands wanted exemptions for Russian fertilizer products, while Poland and the Baltic states of Latvia, Lithuania and Estonia were among the main objectors to allowing Russian fertilizers into EU ports. “The main bone of contention, Reuters claims, were plans to allow the passage of Russian fertilizers through EU ports, including those produced by sanctioned Russian firms,” it was reported earlier in the day.

“Some countries reportedly argued that this would help ensure food security in developing nations,” the report explained, given some officials voice concern over the blowback on populations beyond Russia if fertilizers remain blocked. Ukraine also piled on the pressure in media statements as the EU session continued through the day, siding with the hawks calling for maximum restrictions.

Earlier this week, at the end of Tuesday negotiations, EU foreign policy chief Josep Borrell cited the “complexity” of the new measures in seeking to explain the climate of disunity:

“I thought, this morning we were able to say ‘greenlighted’, but that is still not the case. Maybe by the end of the day,” he said.

Currently the draft ninth package includes restrictions on four Russian TV channels, 144 individuals, media personalities, as well as a ban on the sale of dual-use technologies to a number of Russian companies and new sanctions on at least two banks.

In addition, the proposals include “further economic measures against the Russian energy and mining sector, including a ban on new mining investments in Russia,” the Council of Foreign Ministers said in a statement.

While the majority wanted some kind of compromise which avoid impacting food security, the more hawkish European countries argued this will only reward Russian oligarchs in the fertilizer industry.

Ukrainian officials issued statements throughout the day, attempting to lobby from the sidelines…

“We are a little bit concerned with attempts to weaken the sanctions under the cover of food security,” Lithuanian President Gitanas Nauseda said, urging for continued “strong as possible” anti-Russia measures.

Details are expected to be released Friday morning, after a compromise on the fertilizer and other exemption issues were reached on the sidelines Thursday night.

Tyler Durden
Thu, 12/15/2022 – 16:41

https://www.zerohedge.com/markets/eu-attempt-9th-russian-sanctions-package-fails-over-fertilizer-export-ban