EU renews Russia sanctions for six months

EU foreign ministers
agreed on Sept. 6 to renew their sanctions against Russia for another six
months, as reported by Radio Free Europe/Radio Liberty. The asset freezes and
visa bans apply to about 150 officials and 38 enterprises involved in the
Russian occupation of Crimea and Donbas.

Zenon Zawada: We raised the possibility that
sanctions could start to be relaxed in 2H17 with the election of U.S. President
Trump and the rise of the far right in France. But Le Pen’s party flopped and
Trump has abandoned his proposals to pursue détente with Russia and has adopted
the Western establishment’s foreign policy approach, which is to keep
pressuring the Putin administration.

Nonetheless, we view it as possible that the EU could begin to relax
sanctions next year as Russia remains stubborn and EU businesses continue to
lose opportunities. Moreover, we expect anti-immigrant, pro-Putin parties to
make more gains in EU parliamentary elections, starting with their first
presence in the German Bundestag in its election this September.