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E.U. Meets to Consider More Sanctions on Russia E.U. Meets to Consider More Sanctions on Russia
(3 days later)
BRUSSELS — European Union leaders met here on Wednesday under pressure to strengthen their response to Russia after the latest spasm of violence in Ukraine and to overcome divisions about who should become the bloc’s next foreign policy chief.BRUSSELS — European Union leaders met here on Wednesday under pressure to strengthen their response to Russia after the latest spasm of violence in Ukraine and to overcome divisions about who should become the bloc’s next foreign policy chief.
The Europeans want to confront President Vladimir V. Putin of Russia in order to stymie the further destabilization of eastern Ukraine, but they are wary of fomenting more conflict and clashing with a crucial trading partner that supplies more than a quarter of Europe’s natural gas.The Europeans want to confront President Vladimir V. Putin of Russia in order to stymie the further destabilization of eastern Ukraine, but they are wary of fomenting more conflict and clashing with a crucial trading partner that supplies more than a quarter of Europe’s natural gas.
This week, a Ukrainian military transport plane was shot down, and there were reports that Russia was building up forces along the Ukrainian border. With the situation in eastern Ukraine worsening, President Obama has pushed the Europeans to toughen their stance toward Moscow.This week, a Ukrainian military transport plane was shot down, and there were reports that Russia was building up forces along the Ukrainian border. With the situation in eastern Ukraine worsening, President Obama has pushed the Europeans to toughen their stance toward Moscow.
“We will talk about new sanctions because we believe that the Russian contribution to peace in Ukraine is not sufficient,” said Angela Merkel, the German chancellor, as she arrived at the meeting.“We will talk about new sanctions because we believe that the Russian contribution to peace in Ukraine is not sufficient,” said Angela Merkel, the German chancellor, as she arrived at the meeting.
Under consideration was a package of proposed measures that would block funding for projects with Russia. The idea is to go beyond the current travel bans against individuals and the freezing of their assets, but hold back on bare-fisted economic and trade sanctions on which European leaders cannot agree.Under consideration was a package of proposed measures that would block funding for projects with Russia. The idea is to go beyond the current travel bans against individuals and the freezing of their assets, but hold back on bare-fisted economic and trade sanctions on which European leaders cannot agree.
“I do not think that we’ll be moving to phase three in the sanctions, but some further restrictive measures will be taken,” Alexander Stubb, the prime minister of Finland, said.“I do not think that we’ll be moving to phase three in the sanctions, but some further restrictive measures will be taken,” Alexander Stubb, the prime minister of Finland, said.
Mr. Stubb was referring to so-called stage-three sanctions, yet to be imposed, that would be far more severe than the measures Russia has endured so far.Mr. Stubb was referring to so-called stage-three sanctions, yet to be imposed, that would be far more severe than the measures Russia has endured so far.
European leaders have resisted an escalation partly because their countries have deeper economic ties to Russia than the United States does. Germany receives natural gas from Russia, Britain has extensive banking ties there, Italy has financial and energy interests, and France sells weapons to Moscow.European leaders have resisted an escalation partly because their countries have deeper economic ties to Russia than the United States does. Germany receives natural gas from Russia, Britain has extensive banking ties there, Italy has financial and energy interests, and France sells weapons to Moscow.
“Washington seems to have agreed to give Europe more time to accept diplomacy isn’t working by holding back on unilateral sanctions,” said Mujtaba Rahman, the director for Europe at the Eurasia Group in London, which advises investors on the crisis in Ukraine. “But at some point, the Europeans will have to follow the American lead toward economic sanctions targeting whole industry sectors,” Mr. Rahman said.“Washington seems to have agreed to give Europe more time to accept diplomacy isn’t working by holding back on unilateral sanctions,” said Mujtaba Rahman, the director for Europe at the Eurasia Group in London, which advises investors on the crisis in Ukraine. “But at some point, the Europeans will have to follow the American lead toward economic sanctions targeting whole industry sectors,” Mr. Rahman said.
Any new measures agreed at the summit meeting would likely broaden sanctions on individuals and companies.Any new measures agreed at the summit meeting would likely broaden sanctions on individuals and companies.
The measures could also suspend funding from the European Investment Bank for new public sector projects in Russia and from the European Bank for Reconstruction and Development. European leaders could also ask the European Commission, the bloc’s executive arm, to assess cooperation between the E.U. and Russia in other areas and consider suspending those ties, though funding for civil society projects would not be affected.The measures could also suspend funding from the European Investment Bank for new public sector projects in Russia and from the European Bank for Reconstruction and Development. European leaders could also ask the European Commission, the bloc’s executive arm, to assess cooperation between the E.U. and Russia in other areas and consider suspending those ties, though funding for civil society projects would not be affected.
Leaders may also be ready to threaten tougher restrictions on investments and trade with Crimea and Sevastopol in response to Russia’s annexation of the region.Leaders may also be ready to threaten tougher restrictions on investments and trade with Crimea and Sevastopol in response to Russia’s annexation of the region.
The intensifying crisis in Ukraine also threatens to complicate the stated goal of the summit meeting: reaching consensus on candidates for key jobs running the European Union during the next five years.The intensifying crisis in Ukraine also threatens to complicate the stated goal of the summit meeting: reaching consensus on candidates for key jobs running the European Union during the next five years.
The Italian foreign minister, Federica Mogherini, is widely regarded as one of the front-runners to take over the post of the Union’s high representative for foreign affairs and security policy. The job is currently held by Catherine Ashton of Britain. Ms. Mogherini has been strongly promoted by Italy’s Prime Minister Matteo Renzi, but there are concerns that she may be too conciliatory toward Russia.The Italian foreign minister, Federica Mogherini, is widely regarded as one of the front-runners to take over the post of the Union’s high representative for foreign affairs and security policy. The job is currently held by Catherine Ashton of Britain. Ms. Mogherini has been strongly promoted by Italy’s Prime Minister Matteo Renzi, but there are concerns that she may be too conciliatory toward Russia.
Asked about Ms. Mogherini’s suitability for the job, Dalia Grybauskaite, the president of Lithuania, said that she could “not support a person who is pro-Kremlin oriented.”Asked about Ms. Mogherini’s suitability for the job, Dalia Grybauskaite, the president of Lithuania, said that she could “not support a person who is pro-Kremlin oriented.”
Another candidate at the other end of the spectrum is Radoslaw Sikorski, the foreign minister of Poland, who has a reputation for hawkishness toward Russia. Some leaders worry that he would heighten tensions with Moscow. A more politically convenient choice could turn out to be Kristalina Georgieva, a Bulgarian economist who is the European commissioner for international cooperation.Another candidate at the other end of the spectrum is Radoslaw Sikorski, the foreign minister of Poland, who has a reputation for hawkishness toward Russia. Some leaders worry that he would heighten tensions with Moscow. A more politically convenient choice could turn out to be Kristalina Georgieva, a Bulgarian economist who is the European commissioner for international cooperation.
The leaders were also expected to discuss candidates for the president of the European Council, the body that represents the leaders; the current president is Herman Van Rompuy, a former prime minister of Belgium.The leaders were also expected to discuss candidates for the president of the European Council, the body that represents the leaders; the current president is Herman Van Rompuy, a former prime minister of Belgium.
Prime Minister Helle Thorning-Schmidt of Denmark is a front-runner, but her country is not a member of the eurozone. That could pose a problem for countries like France. Other contenders include Enda Kenny, the prime minister of Ireland; Andrus Ansip, the prime minister of Estonia; and Valdis Dombrovskis, a former prime minister of Latvia. Prime Minister Helle Thorning-Schmidt of Denmark is a front-runner, but her country is not a member of the eurozone. That could pose a problem for countries like France. Other contenders include Enda Kenny, the prime minister of Ireland; Andrus Ansip, the former prime minister of Estonia; and Valdis Dombrovskis, a former prime minister of Latvia.
“It can be that there is an initial discussion and that there won’t be a final decision,” said Ms. Merkel, referring to the appointments.“It can be that there is an initial discussion and that there won’t be a final decision,” said Ms. Merkel, referring to the appointments.
The summit meeting came a day after the European Parliament elected Jean-Claude Juncker of Luxembourg as the new president of the European Commission, the agency that proposes new laws and enforces the bloc’s treaties.The summit meeting came a day after the European Parliament elected Jean-Claude Juncker of Luxembourg as the new president of the European Commission, the agency that proposes new laws and enforces the bloc’s treaties.