New EU sanctions could ban export of luxury goods to Russia

BRUSSELS • A new round of proposed European Union sanctions over Russia's invasion of Ukraine targets more than a dozen people and seeks to ban the export of European luxury goods exceeding a certain price from the bloc to Russia, according to draft documents reviewed by The New York Times and two European diplomats familiar with the proposal.

Among those targeted is Russian oligarch Roman Abramovich, owner of England's Chelsea Football Club, who was sanctioned last week in Britain, where he lives.

Sanctions from the EU were expected, given that most measures against Russian individuals and businesses taken by the United States, Britain and the EU have been highly coordinated.

The British government's order applied to all of Mr Abramovich's businesses, properties and holdings, but its most consequential effect has been on Chelsea, the reigning European football champion. The Russian oligarch's plans to sell the team are on hold; the club was forbidden from selling tickets or merchandise, lest any of the money feed back to its owner; and the team was prohibited - for now - from acquiring or selling players.

The ban on exporting luxury goods from Europe to Russia has been debated for some time. If implemented, it would hit France and Italy hardest, since their iconic luxury brands are very popular among Russian elites.

EU envoys met yesterday to finalise the sanctions list. One of the outstanding issues will be what luxury goods could still be exported.

The European Commission, the bloc's executive, has proposed a ban on all items that cost more than €300 (S$450). Other major items on the new sanctions list will probably include Russian iron and steel exports.

Meanwhile, McDonald's, Yum! Brands and International Business Machines are among companies that have received warnings from Russian prosecutors threatening to arrest corporate leaders or seize assets for criticising the government or withdrawing from the country, the Wall Street Journal reported on Sunday.

Prosecutors called or visited various companies to deliver their warnings, including technology, food, banking and apparel firms, the Journal reported, citing people familiar with the matter.

Threats of lawsuits and the potential seizure of trademarks and other assets prompted at least one targeted company to limit communications out of Russia with the rest of the firm, and others are seeking to move executives out of the country, the people told the newspaper.

NYTIMES, BLOOMBERG