Statement by President Barroso and President Van Rompuy in the name of the European Union on the agreed additional restrictive measures against Russia

Today the European Union has agreed a package of significant additional restrictive measures targeting sectoral cooperation and exchanges with the Russian Federation. These decisions will limit access to EU capital markets for Russian State-owned financial institutions, impose an embargo on trade in arms, establish an export ban for dual use goods for military end users, and curtail Russian access to sensitive technologies particularly in the field of the oil sector.

This package reinforces the recently expanded listing of persons and entities undermining Ukrainian territorial integrity and sovereignty, including the so-called "cronies", the suspension of EIB and EBRD financing, the restriction of investment and trade with Crimea and Sevastopol and the reassessment of the Russia EU bilateral cooperation with a view to reducing the level of the cooperation.

The package responds to directions given by the European Council of 16 July. It is meant as a strong warning: illegal annexation of territory and deliberate destabilisation of a neighbouring sovereign country cannot be accepted in 21st century Europe. Furthermore, when the violence created spirals out of control and leads to the killing of almost 300 innocent civilians in their flight from the Netherlands to Malaysia, the situation requires urgent and determined response. The European Union will fulfil its obligations to protect and ensure the security of its citizens. And the European Union will stand by its neighbours and partners.

Since the beginning of the Ukrainian crisis, the European Union has been calling on the Russian leadership to work towards a peaceful resolution. We have done this collectively and bilaterally. I regret to say that despite some mixed messages coming from Moscow, and exchanges in the Normandy and other formats, there has been scarce delivery on commitments. Our call has been, in practice, left unheeded. Arms and fighters continue flowing into Ukraine from the Russian Federation. Strong Russian State sponsored nationalist propaganda continues supporting the illegal actions of armed separatists. We have witnessed with anger and frustration the delays in providing international access to the site of the air crash, the tampering with the remains of the plane, and the disrespectful handling of the deceased.

The Russian Federation and the European Union have important common interests. We will both benefit from open and frank dialogue, from increased cooperation and exchanges. But we cannot pursue this important positive agenda when Crimea is illegally annexed, when the Russian Federation supports armed revolt in Eastern Ukraine, when the violence unleashed kills innocent civilians.

The package of new restrictive measures agreed today by the European Union constitutes a powerful signal to the leaders of the Russian Federation: destabilising Ukraine, or any other Eastern European neighbouring State, will bring heavy costs to its economy. Russia will find itself increasingly isolated by its own actions. The European Union remains ready to reverse its decisions and reengage with Russia when it starts contributing actively and without ambiguities to finding a solution to the Ukrainian crisis.