EU preparing sanctions against countries that help Russia evade penalties

The European Union is preparing a new round of sanctions against Russia that will target companies and countries that are considered to be helping the Kremlin evade the extensive list of penalties the bloc has imposed since February 2022.

Doing so will require the application of extraterritoriality, a contested legal principle that can enable the EU to sanction entities that fall outside its jurisdiction.

The radical move is driven by the imperative need to improve enforcement and crack down on circumvention, a tricky task after ten rounds of sanctions that cover an unprecedented range of economic sectors and products, such as microchips, trucks, banknotes, chemicals and luxury bags.

The draft designed by the European Commission was sent to member states on Friday and is expected to be further discussed by ambassadors during a meeting on Wednesday.