The export bans worth over US$11.7 billion will target technological and industrial goods critical for the Russian economy that the country cannot get through backfilling by third countries. The sanctions cover electronics, specialized vehicles, machine parts, spare parts for trucks, jet engines, antennas, cranes, and other construction-related goods.
A ban on the export of dual-use and advanced tech goods to Russia is also part of the new sanctions package. The EC proposes controls on 47 new electronic components that could be used in Russian weapons systems, as well as on specific rare earth materials and thermal cameras.
Adding these to the existing list of banned products should enable the European Union (EU) to block exports towards Russia of all tech products found on the battlefield.
In order to prevent third countries from supplying such goods to Russia, the package targets Iran for the first time.
Next week, a Sanctions Coordinators Forum will bring together the EU countries and its partners in order to make sure that these sanctions are enforced in a coordinated way. The Commission's proposal requires unanimous approval by all EU states.
ON Wednesday, as part of efforts to decouple Europe's economies from Russia and China, the European Parliament also approved the European Chip Law, which seeks to double domestic semiconductor production to 20 percent of global manufacturing by 2030.
To achieve this objective, the EC plans to mobilize US$30 billion in investments financed with European funds or national budgets, and US$15 billion in private capital.