European Council adopts 9th package of sanctions against Russia
16.12.2022
A formal European Council meeting was held on 15 December with Prime Minister Mateusz Morawiecki in attendance. One of the highlights of the summit was the adoption of the next, 9th package of sanctions against Russia and the negotiation of a tax agreement for multinational corporations. In addition, topics related to the consequences of Russian aggression in Ukraine, the current situation in the energy market, and security and defence were raised. The day before the meeting with the European Council, the Prime Minister attended a summit between the European Union and the Association of Southeast Asian Nations (ASEAN), also held in Brussels.
New sanctions against Russia
The European Union decided to adopt another, the 9th, package of sanctions against Russia. The whole community wants to weaken the Russian aggressor. The sanctions cover both economic and individual aspects. Nearly 200 members of the Russian elite have been targeted. The economic sanctions, on the other hand, extend the list of dual-use items subject to enhanced export controls. The list of products whose export to Russia is banned has been expanded. It includes the drone industry and the use of drones to attack civilian targets. In addition, the new package also includes a ban on investments in the mining sector in Russia.
“These are sanctions which, once again, show that we are very trustworthy. Furthermore, we have maintained unity among the Member States. Russia wants to split us, to divide us within the European Union. We have not allowed this division to happen,” said Prime Minister Mateusz Morawiecki.
Tax agreement for multinational corporations
At the meeting of the European Council, leaders negotiated an agreement concerning tax for multinational corporations. The Prime Minister stressed that “this tax structure that was negotiated is good and beneficial for Poland. And in addition to that, we have added two more things to the conclusion” - that is, the first pillar, which must also become a part of European Union law. Dates and everything related to the imposition of taxes on multinational corporations is specified.
European support for Ukraine
One of the main topics of discussion among European leaders was the Russian aggression against Ukraine. The European Council discussed further EU support for Ukraine, in all its dimensions. Poland is in favour of increasing the scale of EU aid to our eastern neighbours. Humanitarian aid and the reconstruction of Ukraine's critical infrastructure are extremely important.
Our country has welcomed the news that the Council of the European Union has agreed on a legislative package that will enable the community to provide Ukraine with EUR 18 billion in financial assistance in 2023. We hope that the aid package will be adopted quickly.
Energy and economic security
EU leaders continued discussions on the current energy market situation and its impact on the economy. The European Council concluded the implementation of its October 2022 guidelines on EU energy market reforms.
We keep stressing that responsibility for the current energy and economic crisis lies with Russia. We see the need for further sanctions, including in the energy sector.
We believe that the European Union should learn from the energy price crisis and refrain from imposing additional financial burdens on households in terms of heating and transport costs.
On 19 December, energy and climate ministers, at the request of the European Council, are to conclude the process of the introduction of a maximum price cap on gas. There is a good chance of reaching a compromise and adopting solutions that will benefit the Poles.
“There is a chance for a certain compromise that will reduce fluctuation, volatility and stifle the price of gas, which would mean less money to the Russian budget and more money in the budgets of Poles and in the wallets of European citizens,” said the head of the Polish government.
Summit of the European Union with the Association of Southeast Asian Nations
On 14 December, the first-ever summit of EU and ASEAN member state leaders took place - following the establishment of the EU-ASEAN Strategic Partnership in 2020. It reaffirmed the will to strengthen cooperation between the two organisations and indicated the strategic nature of the relationship.
“It was a great success, ours and that of several delegations, to condemn Russia and Russian aggression against Ukraine so unequivocally - as part of our discussion with Asian partners. What is quite obvious fortunately in the European Union is not so obvious around the world,” said the Prime Minister.
The ASEAN Summit ended with the conclusion of the EU-ASEAN Comprehensive Air Transport Agreement (CATA), the establishment of a partnership for equitable energy transition with Indonesia and Vietnam, and a digital partnership with Singapore.
The EU-ASEAN Summit gave impetus to further FTA negotiations with Indonesia and the possible resumption of negotiations with Thailand, the Philippines and Malaysia. The meeting was an opportunity to commemorate the 45th anniversary of the establishment of diplomatic relations between the EU and ASEAN.