The European Union Approves New Sanctions Against Crimea

The European Union has imposed new sanctions on Crimea, which Russia annexed, as part of efforts to increase pressure on Moscow to change its policy towards Ukraine. According to Reuters, on Thursday, December 27, the 28 EU member states imposed new sanctions against Crimea, which include a ban on buying and selling real estate, participating in local investments, exports, transportation, and selling goods related to telecommunications and energy industries. European companies are also prohibited from engaging in tourism-related activities in Crimea. EU-registered companies and citizens of member states will face legal action if they violate these sanctions. Reuters reports that the new sanctions will also halt European assistance to Russian oil and gas exploration operations in the Black Sea, and EU vessels will not be allowed to enter Crimean ports. These sanctions will take effect on Saturday. In March, Russia annexed Crimea, which was previously part of Ukraine. The West does not recognize this action and has imposed sanctions against Russia for its destabilizing role in Ukraine. Several diplomats have told Reuters that EU leaders will also discuss increasing pressure on Russia to change its approach towards Ukraine later today. The Russian currency, the ruble, has lost twice its value against the dollar so far. The EU had previously sanctioned the import of goods from Crimea and any investments in the region. The Associated Press also reported that the EU discussed weak economic growth among its members during its Thursday meeting. Donald Tusk, the President of the European Council, stated that a strategic investment fund should be established to guarantee investors up to $385 billion. This initiative aims to improve and develop infrastructure, create jobs, and stimulate economic growth in the EU. According to a report published on the official EU website, the economic growth of its 28 members is expected to reach 1.5% this winter and increase to 2% next winter. Economic growth in the EU was nearly zero last winter and negative 1.2% the year before. Additionally, the unemployment rate is expected to improve by about 0.2% this winter, and a further improvement of 0.3% is anticipated next winter, bringing it to 10.4%. The EU is also suffering from very low inflation, with the inflation rate for this year projected at just 0.4%. The low inflation rate negatively impacts economic growth and the revenues of European companies from domestic sales. In this context, there has been a rush of Russian citizens to stores following a significant drop in the value of the ruble, which has fallen another 10% despite Russian actions.