Borrell: Russian ruble has shown strong resilience, new sanctions coming
3 Min Read
Sanctions on Russian coal, rubber, and chemical imports are brewing.
-
Sanctions will eventually backfire on the West.
Josep Borrell, the foreign policy chief of the European Union, admitted that the Russian ruble is resisting West-led sanctions "well."
"The ruble has shown strong resilience," Borrell said in an interview with COBE, a Spanish radio, adding that "Putin is currently insisting on paying in rubles for gas to support the currency... We will see what happens."
A source from the European Union told Reuters that the European Commission will propose to European countries to impose new sanctions on Russia, including a ban on coal, rubber, and chemical imports, amounting to €9 billion per year.
Read more: Kremlin: Oil embargo would hit global market hard
The source added that the EU is proposing a ban on exports to Russia worth another €10 billion annually, including semiconductors, computers, liquefied natural gas technology and other electrical and transportation equipment.
Brussels considering a ban on gas supplies from Russia
Brussels officials are considering banning Russian gas, coal, or oil supply. Dutch Finance Minister Sigrid Kaag stated on Monday in a joint briefing with her Spanish counterpart.
"Currently, Brussels is discussing and considering the issue of a ban on coal, oil, or gas. So far I can not say anything more. But this is a very important issue, this is a moral issue," Kaag said.
In the meantime, several countries have already opposed the ban on gas supplies from Russia, including Austria, Moldova, and Hungary.
The European Union is trying to isolate Russia and reduce its strength through sanctions in response to Moscow's war in Ukraine, but this will take its toll on the bloc itself, Paolo Gentiloni, European Commissioner for Economy said on Monday at the Eurogroup meeting.
"We are working to isolate and weaken Russia, this is a decision. We are not entering a war, we are not escalating a war, but this decision has a cost. It's obvious that we will have to address the cost of these sanctions and of this reaction," Gentiloni said.
Last Wednesday, Poland announced that it will end all Russian oil imports by the end of the year, while Germany issued a warning about natural gas levels and urged people to conserve, both of which are new signs of how the West’s sanctions on Russia have heightened concerns about securing energy supplies to power Europe.
