Business news from Ukraine

Business news from Ukraine

US offers Europe to use the experience of export restrictions against Russia in the fight against China – Bloomberg

The United States, in contacts with the EU countries, put forward a proposal to apply the experience gained from the implementation of the export control regime in relation to the Russian Federation against China, Bloomberg reported on Monday, citing a number of anonymous sources.

“The United States, in contacts with European allies, has voiced the idea of ​​learning from the export control regime used against Russia to fight China, according to people familiar with the matter,” the agency said.

The White House is “exploring some elements of similar information sharing and coordination in implementing measures to tighten US and EU restrictions” on exports to China, the sources said.

Such discussions come at a time when the EU and the US are discussing the agenda for the third meeting of the Trade and Technology Council scheduled for December 5, which serves as a forum for coordinating trade and technology policy between the EU and the US.

However, the sources note, the EU is not inclined to consider applying to the PRC the same approach that was used in relation to Russia. According to one source, the EU may look at the goods that Beijing is able to use to increase its military capabilities.

In turn, the US National Security Council denied plans to extend the export control regime against the Russian Federation to China, and the fact of discussions on this topic with European countries.

Bloomberg explains that export restrictions are considered potentially effective in slowing down China’s development amid global competition for technological supremacy.

On October 7, the US Department of Commerce banned the sale to China of the most advanced chips, as well as equipment, components and software for their production, with a special focus on technologies related to artificial intelligence and potential military applications. The restrictions affected the exports of other countries, which depend on similar American technologies and programs. Also, US citizens were forbidden to advise the Chinese side or provide it with other services in this area.

Subsequently, US Deputy Secretary of Commerce for Industry and Security Alan Estevez said that Washington expects an early agreement with the allies on their accession to these restrictions. However, authorities in the Netherlands, home of ASML Holding, a manufacturing equipment for the electronics industry, have expressed concern about the effect of new US restrictive measures.

Meanwhile, in mid-October, The Financial Times reported, citing an EU foreign policy document prepared for a meeting of the EU Foreign Affairs Council, that, in its opinion, China is a competitor that needs to be confronted, and that policy towards China should be tightened. A number of EU leaders later also warned against economic dependence on China.

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Decrees on imposition of sanctions were published on website of President of Ukraine, Abramovich also fell into sanctions

Decrees “On the decision of the National Security and Defense Council of Ukraine dated October 19, 2022 “On the application and amendment of personal special economic and other restrictive measures (sanctions)” have been published on the website of the President of Ukraine.
These decisions impose sanctions on 2,507 individuals and 1,374 legal entities, most of which are Russian citizens and Russian legal entities.
Decree No. 726\2022 imposes sanctions against politicians, public figures, military personnel, among whom is Putin’s daughter Yekaterina Tikhonova. The same decree introduces sanctions against Russian legal entities.
Decree No. 727\2022 imposes sanctions against oligarchs, including against Roman Abramovich.

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New Zealand expands sanctions against number of Russian citizens

The New Zealand government has expanded sanctions against key Russians amid Russia’s full-scale aggression against Ukraine, the Australian Associated Press reports.

On Tuesday, New Zealand’s Foreign Minister Nanaia Mahuta announced that 19 new “members of Putin’s inner circle” would be subject to financial and travel sanctions as part of coordinated global action.

“Ukraine has been clear that the most important action we can take to help them are our ongoing sanctions and supporting them through the conflict, as we continue to do,” she said.

At the moment, the sanctions apply to about 1,000 people.

In turn, New Zealand Defense Minister Peeni Henare noted that there is no opportunity to provide military assistance yet, since Ukraine’s requests do not coincide with the resources that are available. At the same time, Henare stressed that New Zealand is ready to provide additional assistance if Ukraine’s needs match its reserves.

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EU Council imposes sanctions on Yanukovych and his son

The EU Council on Wednesday decided to impose restrictive measures against two additional persons – ex-President of Ukraine Viktor Yanukovych and his son Oleksandr – in response to the ongoing unjustified and unprovoked military aggression of the Russian Federation against Ukraine.
The Council added the pro-Russian former President of Ukraine Viktor Fedorovych Yanukovych and his son Oleksandr Viktorovych Yanukovych to the list of persons, entities and bodies subject to restrictive measures set out in the Annex to Decision 2014/145/CFSP for their role in undermining or threatening the territorial integrity, sovereignty and independence of Ukraine and the state’s stability and security, as well as – in the case of Oleksandr Viktorovych Yanukovych – for conducting transactions with the separatist groups in the Donbas region of Ukraine, the European Council said on its website.
The relevant legal acts are published in the Official Journal of the EU.

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German Chancellor Scholz said EU will maintain sanctions against Russia for long time

German Chancellor Olaf Scholz, in an article written for the Frankfurter Allgemeine newspaper, said that Europe knew from the beginning that sanctions against Russia would be in place for a long time.
“It was clear to us from the very beginning that the sanctions would have to be maintained for a long time,” the politician wrote.
He repeated his statement, made in May in an interview with the ZDF television channel, that the West would not agree to the lifting of sanctions in the event of a peaceful settlement of the Ukrainian conflict on “conditions imposed by Russia.”
At the same time, he acknowledged that most Germans are suffering from the consequences of the restrictions, including the high cost of gasoline and food.
“This path is not easy even for such a strong, prosperous country as ours,” Scholz added.
The article states that “the world economy is facing a challenge that has not been seen for decades,” and no country in the world can stand alone against such a development.
In this regard, Scholz called for the unity of the EU countries in policy towards Russia, noting that the EU has already demonstrated it.
“But we must not rest on our laurels,” he explained, adding that the EU must come to an agreement in other areas.
“For me, this means: no more selfish blockades of European decisions by individual member states. No more national single efforts that harm Europe as a whole,” he stressed.
In his words, “we simply can no longer afford a national veto, for example, in foreign policy, if we want to continue to be heard in a world of competing great powers.”
As reported, the EU Foreign Affairs Council will be held on Monday in Brussels. He plans to work in connection with the Ukrainian situation in three areas: support for Ukraine, sanctions against the Russian Federation, informing the international community about the consequences of the conflict, a source in the EU said.
“On the first part, we believe that there will be a discussion of additional military support for Ukraine,” a senior EU official told reporters on condition of anonymity, briefing them on the agenda of the ministerial meeting on Friday.
“There will be a discussion on sanctions (against the Russian Federation). We are preparing a number of measures,” the media interlocutor continued. He confirmed that during the discussion, council members will discuss a proposal to ban Russian exports of gold.
At the same time, the official noted that “we do not expect any decision on sanctions on Monday.”
With regard to military assistance to Kyiv, Brussels expects from the EU Council a “political decision” of the member states on the fifth tranche in accordance with the instructions of the European Council.

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CANADA IMPOSES NEW SANCTIONS ON RUSSIAN INDUSTRY

The Canadian Foreign Ministry announced the introduction of new sanctions against Russia in response to the ongoing military aggression against Ukraine.
“On July 14, 2022, Canada made further amendments to the rules on special economic measures (Russia) to prohibit the provision of two production services to the Russian oil and gas, chemical and manufacturing industries,” the document said on the ministry’s website.
It is noted that eight new industries from these sectors have been added to the sanctions list.
According to the Ministry of Foreign Affairs, “any person in Canada and any Canadian outside of Canada is prohibited from providing services to Russia or any person in Russia” related to the production of metal products, computer, electronic and optical products, electrical equipment, cars, trailers and semi-trailers, transport equipment, land transport and pipelines.

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