Report: EU sanctions seek to make banks divulge frozen Russian assets

MOSCOW, Feb 15 (PRIME) -- The E.U. is poised to force banks to report information on Russian central bank assets as part of the bloc’s latest sanctions package targeting Moscow for its operation in Ukraine, according to draft proposals seen by Bloomberg on Wednesday.

Getting a handle on the scale of central bank and other sanctioned state-backed assets that have been immobilized in the E.U. is seen as a first step to exploring options to potentially using those funds to contribute to Ukraine’s reconstruction.

The European Commission, the bloc’s executive arm, also proposed strengthening the reporting obligations on frozen assets linked to sanctioned Russian companies and individuals, and suggested fines — of as much as 50,000 euros for individuals and 10% of annual turnover for entities — to be imposed for failure to provide the required information, the documents say.

The E.U. is aiming to adopt its 10th package of sanctions next week ahead of the one-year mark of the Russian operation. European leaders have also sought to boost support for Kyiv — through weapons pledges and meetings with Ukrainian President Volodymyr Zelenskiy — before renewed offensives in the coming weeks.

The latest suite of measures would also introduce extensive trade restrictions on goods used by Russia’s military, including technologies, components, heavy vehicles, electronics, and rare-earths. The E.U. is also proposing a ban on goods from transiting through Russia to lower the risk of sanctions being breached and to introduce import restrictions into the E.U. of Russian rubber and asphalt.

The E.U. is also looking to sanction dozens of individuals and entities, including politicians and military personnel, as well as:

Alfa-Bank, Rosbank and Tinkoff Bank JSC, as well as the National Wealth Fund of the Russian Federation; media groups that have engaged in propaganda; a Russian reinsurer of ships exporting Russian oil; a U.K.-registered shipping company accused of using its vessels to transport stolen Ukrainian grain on behalf of Russia.

CRITICAL INFRASTRUCTURE

The proposed measures will be discussed by member states this week and may change before the package is approved. E.U. sanctions need the backing of all member states to be adopted.

Other proposals include an extension of the suspension of the broadcasting licenses of media outlets controlled by the Russian state and which are accused of spreading propaganda, and manipulating and distorting facts, targeting the E.U. and its neighbors.

The E.U. also wants to restrict Russian nationals from holding posts in the governing bodies of the operators of critical European infrastructures and entities, according to the documents. E.U. citizens would be exempt from the provision.

Similarly, the package of sanctions, if approved, would prohibit providing gas storage capacity to Russian nationals and residents, as well as entities established in Russia.

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