Paschal Donohoe, Minister for Finance expressed his support for Ukraine’s sovereignty and territorial integrity following the Russian attack on Ukraine earlier today.
The Minister supports the initial round of sanctions approved by the EU yesterday. Some of these measures are targeted at the financial sector and include asset freezes and travel bans on specified individuals and entities, a ban on financing the Russian State or the Russian Central Bank, and an import and export ban to persons and entities in the specified territories of Donetsk and Luhansk or for use in those territories.
Domestic legislation related to the imposition of penalties has been effected today February 24 to align with the published EU Regulations.
Preparations of a second, more extensive EU sanctions package, are underway in response to Russia’s subsequent attack on Ukraine.
The European Union has announced the adoption of an initial package of sanctions in response to Russia’s actions including sending troops into the Donetsk and Luhansk oblasts of Ukraine. Further sanctions are anticipated in light of the most recent developments.
The initial set of restrictive measures will affect:
- 336 members of the Russian State Duma, who voted on 15 February in favour of the appeal to President Putin to recognise the independence of the self-proclaimed Donetsk and Luhansk ”republics”
- 22 high profile individuals and 4 entities, who have played a role in undermining or threatening the territorial integrity, sovereignty and independence of Ukraine
- a travel ban, asset freeze and a prohibition from making funds available to the listed individuals and entities
- an import ban on goods from the non-government controlled areas of the Donetsk and Luhansk oblasts, restrictions on trade and investments related to certain economic sectors, a prohibition to supply tourism services and an export ban for certain goods and technologies
- a prohibition on financing the Russian Federation, its government and Central Bank
Restrictive measures or ‘Sanctions’ are an essential tool of the EU’s Common Foreign and Security Policy (CFSP). They are used by the EU as part of an integrated and comprehensive policy approach, involving political dialogue, complementary efforts, and the use of other instruments at its disposal. Sanctions seek to bring about a change in the policy or conduct of those targeted, with a view to promoting the objectives of the CFSP. Sanctions can include but are not limited to, restrictive measures such as financial sanctions, trade sanctions, restrictions on travel and/or civil aviation restrictions They can target:
- governments of non-EU countries because of their policies
- entities (companies) providing the means to conduct the targeted policies
- groups or organisations such as terrorist groups
- individuals supporting the targeted policies, involved in terrorist activities
They are developed in such a way as to minimise adverse consequences for those not responsible for the policies or actions leading to the adoption of sanctions. In particular, the EU works to minimise the effects on the local civilian population and on legitimate activities in or with the country concerned.
The Central Bank is one of three Competent Authorities responsible for the administration and enforcement of Sanctions in Ireland (along with the Department of Foreign Affairs, and the Department of Enterprise, Trade and Employment). The Central Bank is responsible for the administration and enforcement of financial sanctions in Ireland.