The European Union (EU) has reached a consensus with Austria over economic sanctions on Belarus for abuse of authority, election fraud, and diverting a commercial airline to arrest a dissident. Austria was blocking the EU’s attempts to impose financial and economic sanctions on Belarus to preserve its business interests. However, after a meeting on Friday, the EU and Austria reached a compromise.
Reuters reported that the EU’s new sanctions level travel and asset bans against people associated with the regime and proposed financial restrictions, including “a ban on new loans, ban on the EU investors on trading securities or buying short-term bonds and a ban on the EU banks from providing investment services.” The union also proposed an end to export credits. The new sanctions are likely to affect Belarus’ export of potash, oil, and tobacco to the EU. The bloc members also mulled over banning the export of communications equipment to Belarus and tightened arms exports.
Earlier, Austria blocked the EU’s attempts, arguing that the sanctions jeopardised its national interests, as the country’s Raiffeisen Bank International has a subsidiary in Belarus, known as Priorbank. It also cited “humanitarian reasons” and “Belarus’ growing ties with Russia” for blocking the sanctions. Politico mentioned an Austrian diplomat saying anonymously that “his country wanted sanctions not to hit the civilian population, with whom Austria in particular is engaged in a very intensive dialogue.” As per reports, Austria “did not like draining the currency sources for the Belarusian regime,” positing that this would push the Lukashenko administration closer to Russia and also punish citizens in an already impoverished country.
In earlier rounds of sanctions, the EU banned Belarus’ airlines from using the union’s airspace and restricted the use of Belarusian airspace and airports for European airlines. The sanctions also imposed a visa ban on hundreds of people, including Belarusian President Alexander Lukashenko, and decided to freeze their assets.
However, following the meeting with EU officials on Friday, an Austrian diplomat said: “There will be exemptions in the financial sanctions for humanitarian purposes, while private savings of Belarusian citizens will not be affected.” In a tweet, Austria’s Finance Minister, Alexander Schallenberg, said: “Glad we found an agreement on Belarus sanctions that are robust and targeted.” After Russia, Austria is the largest investor in Belarus, with 90% of EU loans to Belarus comes from the country.
Last month, Lukashenko diverted Ryanair’s commercial plane to Minsk, citing a bomb threat. On May 23, the flight initially was scheduled to land in Lithuania from Greece but was redirected to Minsk; dissident journalist Raman Pratasevich and his girlfriend were arrested on landing. Lukashenko’s aggressive abuse of authority and crackdown on dissent since his re-election last August has led to international condemnation and culminated in sanctions against his authoritarian regime. The United States, the United Kingdom, Canada and New Zealand have also imposed sanctions on Belarus, ranging from travel bans to restricting business with Belarusian-owned enterprises.
EU leaders are scheduled to meet next week but are yet to agree to the proposed sanctions. Reuters reported that Germany wants to keep imposing sanctions on Belarus until they release all political prisoners and hold free, fair, and democratic elections. Belarus, however, appears unwilling to concede to the bloc’s demands.
EU, Austria Reach Consensus on Economic Sanctions to be Imposed on Belarus
The European Union decided to impose new sanctions on Belarus after Austria and the EU brokered a deal to not target the civilian population.
June 22, 2021
SOURCE: EU OBSERVER