EU and Russia decide to keep sanctions in place

BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/27

The EU last week decided to continue sanctions on Russia through January 31, 2017. These sanctions were first imposed on August 1, 2014 in response to Russia’s involvement in Ukraine. The sanctions restrict access of certain Russian firms and banks to financing, ban arms trade, as well as limit exports of dual-use goods and oil-production-related products and services. The EU has announced it will lift the sanctions when the conditions of the Minsk accord are in place.

For its part, Russia will continue bans of food imports from e.g. the EU, US, Norway and Ukraine through December 31, 2017. In addition, Russia has extended its restrictions on transit transport from Ukraine to Kazakhstan and Kyrgyzstan. Ukraine this week said it would keep in place its Russia sanctions to the end of 2017 and that it plans to react also on the extended transport restrictions.

Russia has lifted its ban on arranging tours to Turkey and said it will review the possibility of lifting other sanctions on Turkey as president Erdogan has apologised for the shooting down of a Russian fighter jet last November.

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