EU introduces broad sanctions on Belarus

RUSSIA / FSU POLITICS - In Brief 24 Jun 2021 by Alex Teddy
On June 24 the EU announced sanctions on potash, tobacco, petroleum and petrochemical products. This is all in response to Belarus forcing a Ryanair plane to land in Belarus in May 2021. There had been some doubt that sanctions would include potash because Belarus accounts for 25% of the EU's potash supply.The EU specifically said that the sanctions were due to the Ryanair incident and human rights abuses.Pressure on the Belarus economy will necessitate more economic aid from Russia. No other country looks like it is going to help.The controversy dates back to the August 2020 election. The opposition says that Lukashenka rigged the election. The opposition applauded the EU's tough new sanctions. The purchase of weapons and potassium chloride from Belarus is restricted. Oddly, tractors are not on the sanctions list.Financial institutions in Belarus will have limited access to the EU capital market. Insurance and reinsurance can only be provided to state and semi-state bodies under very limited circumstances. The European Investment Bank will no longer be allowed to pay anything to Belarus or any public body therein. EU member states are obliged to take action to reduce the involvement of their development banks in Belarus. This is vague, and there is some leeway for the provision of banking services here. The UK is keen to curry favor with the EU to ensure a good long-term trading relationship. The UK might well imitate these sanctions. Other Western nations could follow suit.On June 21 the EU also sanctioned Russian businessman Mikhail Gutseriyev for his involvement with Belarus. He is the single biggest investor in Belarus. He owns Safmar which has a stake in Rusneft....

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