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E.U. to Extend Sanctions Against Russia, but Divisions Show E.U. to Extend Sanctions Against Russia, but Divisions Show
(about 4 hours later)
BRUSSELS — The European Union moved on Friday to extend economic sanctions against Russia for six more months for its annexation of Crimea and support for separatists in Ukraine, even as European leaders clashed on policy toward Russia with testy exchanges over a Russian gas pipeline project to Germany at the last scheduled summit meeting of a tumultuous year. BRUSSELS — The European Union moved on Friday to extend economic sanctions against Russia for six more months for its annexation of Crimea and support for separatists in Ukraine, even as European leaders clashed on policy toward Russia with testy exchanges over a Russian gas pipeline project to Germany at the last scheduled summit meeting of a tumultuous year.
The ostensible unity of the decision to extend sanctions was diminished by disagreements among members over the gas pipeline project that added a sour coda to a year of crises — including terrorist attacks and a wave of hundreds of thousands of migrants — that has already badly tested the bloc.The ostensible unity of the decision to extend sanctions was diminished by disagreements among members over the gas pipeline project that added a sour coda to a year of crises — including terrorist attacks and a wave of hundreds of thousands of migrants — that has already badly tested the bloc.
At the center of the dispute were tensions between Prime Minister Matteo Renzi of Italy and Chancellor Angela Merkel of Germany over the pipeline project, Nord Stream 2, which would significantly increase the amount of Russian gas delivered to Germany and other parts of Europe while bypassing Ukraine.At the center of the dispute were tensions between Prime Minister Matteo Renzi of Italy and Chancellor Angela Merkel of Germany over the pipeline project, Nord Stream 2, which would significantly increase the amount of Russian gas delivered to Germany and other parts of Europe while bypassing Ukraine.
Ukraine has long earned important sums of money from transferring Russian gas west to European consumers and could face more serious budgetary problems without those revenues, even as it continues to struggle through a civil conflict in its east fueled by pro-Kremlin forces.Ukraine has long earned important sums of money from transferring Russian gas west to European consumers and could face more serious budgetary problems without those revenues, even as it continues to struggle through a civil conflict in its east fueled by pro-Kremlin forces.
The tensions between the European Union leaders exposed the difficult balancing act the bloc has played with the Kremlin as it tries to vie for Russia’s energy business and seek Moscow’s help in quelling the conflict in Syria, while also seeking to punish President Vladimir V. Putin of Russia for his land grab in Crimea and meddling in eastern Ukraine. The tensions between the European Union leaders exposed the difficult balancing act the bloc has played with the Kremlin as it tries to vie for Russia’s energy business and seek Moscow’s help in quelling the conflict in Syria, while also seeking to punish President Vladimir V. Putin of Russia for his annexation of Crimea and interference in eastern Ukraine.
Italy had this month delayed the sanctions decision, which must be unanimous, by insisting that more discussion was needed. But the move to renew the sanctions on Friday had been expected because of a consensus that a tenuous peace accord, the so-called Minsk agreement, reached earlier this year between the Ukrainian government and Russian-backed separatist rebels, has not yet been fully carried out. Italy had this month delayed the sanctions decision, which must be unanimous, by insisting that more discussion was needed. But the move to renew the sanctions on Friday had been expected because of a consensus that a tenuous peace accord, the so-called Minsk agreement, reached this year between the Ukrainian government and Russian-backed separatist rebels, has not yet been fully carried out.
The cease-fire agreed in Minsk, the capital of Belarus, has mostly held since September. But the peace deal is unraveling on other points.The cease-fire agreed in Minsk, the capital of Belarus, has mostly held since September. But the peace deal is unraveling on other points.
Ukraine has complained that it has still not regained control over its eastern border with Russia. Moscow, for its part, has accused the government in Kiev of failing to honor pledges to amend Ukraine’s Constitution to recognize some local autonomy in the breakaway Ukrainian regions of Donetsk and Luhansk.Ukraine has complained that it has still not regained control over its eastern border with Russia. Moscow, for its part, has accused the government in Kiev of failing to honor pledges to amend Ukraine’s Constitution to recognize some local autonomy in the breakaway Ukrainian regions of Donetsk and Luhansk.
At a news conference after the summit meeting, Mr. Renzi denied mounting an “attack” on Germany but said the bloc’s economic powerhouse should not be regarded as a “lifesaver” that always acted entirely in the broader strategic interests of the European Union.At a news conference after the summit meeting, Mr. Renzi denied mounting an “attack” on Germany but said the bloc’s economic powerhouse should not be regarded as a “lifesaver” that always acted entirely in the broader strategic interests of the European Union.
Mr. Renzi’s criticism was backed up by Donald Tusk, a former prime minister of Poland who leads the European Council, the body that runs summit meetings. The Nord Stream 2 project “does not help diversification, nor would it reduce our energy dependence,” Mr. Tusk said.Mr. Renzi’s criticism was backed up by Donald Tusk, a former prime minister of Poland who leads the European Council, the body that runs summit meetings. The Nord Stream 2 project “does not help diversification, nor would it reduce our energy dependence,” Mr. Tusk said.
Mrs. Merkel defended her stance on Nord Stream 2 after the summit meeting, suggesting that Mr. Renzi’s criticism was the result of sour grapes, since Russia last year canceled a separate pipeline project called South Stream. That project would have had the participation of the Italian energy industry in delivering gas to the European Union through Bulgaria.Mrs. Merkel defended her stance on Nord Stream 2 after the summit meeting, suggesting that Mr. Renzi’s criticism was the result of sour grapes, since Russia last year canceled a separate pipeline project called South Stream. That project would have had the participation of the Italian energy industry in delivering gas to the European Union through Bulgaria.
“Italy would have loved to participate in South Stream, which is very clear,” Mrs. Merkel told a separate news conference. “Bulgaria also raised its voice today,” she said.“Italy would have loved to participate in South Stream, which is very clear,” Mrs. Merkel told a separate news conference. “Bulgaria also raised its voice today,” she said.
Mrs. Merkel said she regarded the Nord Stream 2 pipeline as “first and foremost a business proposition,” which still needed a series of national regulatory approvals.Mrs. Merkel said she regarded the Nord Stream 2 pipeline as “first and foremost a business proposition,” which still needed a series of national regulatory approvals.
Germany was seeking ways to ensure that Ukraine “is not completely excluded as a transit country,” she said.Germany was seeking ways to ensure that Ukraine “is not completely excluded as a transit country,” she said.
Europe still relies on Russia for about 30 percent of its natural gas supplies. Gas from the existing Nord Stream pipeline arrives in Germany before it is fed into a European gas network that serves consumers in Germany and in numerous other countries that can include Britain, France and the Netherlands, Ulrich Lissek, the communications director for Nord Stream, said on Friday. Mr. Lissek said the gas from Nord Stream 2 would serve similar markets.Europe still relies on Russia for about 30 percent of its natural gas supplies. Gas from the existing Nord Stream pipeline arrives in Germany before it is fed into a European gas network that serves consumers in Germany and in numerous other countries that can include Britain, France and the Netherlands, Ulrich Lissek, the communications director for Nord Stream, said on Friday. Mr. Lissek said the gas from Nord Stream 2 would serve similar markets.
Russia is also a significant economic partner for Italy, where the energy industry has close ties to Gazprom, the Russian state-run natural gas exporter. Important Italian industries like farming and fashion have lost business because of retaliatory measures imposed by Moscow in response to European Union sanctions.Russia is also a significant economic partner for Italy, where the energy industry has close ties to Gazprom, the Russian state-run natural gas exporter. Important Italian industries like farming and fashion have lost business because of retaliatory measures imposed by Moscow in response to European Union sanctions.
Western partners on the defunct South Stream project included the Italian energy giant Eni. An Italian oil field construction company, Saipem, also had South Stream contracts. But Washington and Brussels opposed the South Stream project in a geostrategic tussle with Moscow that was reminiscent of the Cold War.Western partners on the defunct South Stream project included the Italian energy giant Eni. An Italian oil field construction company, Saipem, also had South Stream contracts. But Washington and Brussels opposed the South Stream project in a geostrategic tussle with Moscow that was reminiscent of the Cold War.
Europe first imposed economic sanctions on Russia in July 2014, after Russia annexed the Crimean Peninsula, and strengthened them in September 2014. They were renewed most recently in June.Europe first imposed economic sanctions on Russia in July 2014, after Russia annexed the Crimean Peninsula, and strengthened them in September 2014. They were renewed most recently in June.
The decision to continue the sanctions against Russia will now need a further signoff by member nations by noon on Monday and should go into force shortly afterward. The decision to continue the sanctions against Russia will now need a further endorsement by member nations by noon on Monday and should go into force shortly afterward.