Sanctions Update - September 2, 2014 (with Turza Comment)
On September 1, 2014, Australia imposed additional targeted financial sanctions and travel bans on select individuals and entities, as well as sectoral sanctions against Russia's defense, financial and energy sectors. The measures specifically include "restrictions on arms exports; restrictions on the access of Russian state-owned banks to Australian capital markets; preventing the export of goods and services for use in Russia's oil exploration or production; and restrictions on Australian trade and investment in Crimea." Australia's latest round of sanctions brings it in line with measures imposed by the Council of the European Union on July 31, 2014.
European leaders also met over the weekend to discuss the possibility of developing a new sanctions package against Russia. It has been reported that a new round of sanctions could target Russia's defense, dual use goods, and financial sectors, and could also include a ban on the purchase of Russian government bonds. Although the exact nature and extent of the sanctions are not yet publicly known, the European Union has indicated that it will impose additional sanctions unless Russia changes course in Eastern Ukraine within the next week.
Turza Comment: NATO's public confirmation of Russia's recent incursions into Ukraine and President Putin's more aggressive tone regarding "statehood" for separatist-controlled regions of Eastern Ukraine likely signal a new, more dangerous turn in the now months-long conflict. The European Union's threat of additional sanctions is unlikely to change Russia's calculus at this point, as Putin appears deeply invested in pursuing his objectives. More radical proposals, such as blocking Russian financial institutions' access to the SWIFT inter-banking transfer system, may move the dial, but would represent a significant escalation on the part of the European Union and the United States.
See: Australian Government Consolidated List of Sanctions.Related news: Sanctions Update - August 13, 2014 (August 13, 2014); Sanctions Summary - Week of August 4 (August 8, 2014); Sanctions Summary - July 31 (with Turza Comment) (July 31, 2014).See also: Cabinet Sanctions Page (some materials are accessible to Cabinet subscribers only). For more information, please contact Dale Turza, James Treanor or Keith Gerver.