EU Starts Discussions on New Export Bans, Sanctions Against Russia

European officials say they plan to ban specific technologies and parts that only Western countries can provide

European Union member states started discussions on a new set of economic measures targeting Russia, including proposals for a ban on over $11 billion worth of Russian imports and sanctions against Iranian entities the EU says is supplying drones to Russia, diplomats said.

EU officials are hoping to have the sanctions package, which must be approved by all 27 member states, ready for the first anniversary of Russia’s invasion of Ukraine next week. No final decisions are expected on any measures Wednesday.

The U.S. and other Group of Seven allies backing Ukraine are also expected to announce fresh sanctions against Russia next week.

At the heart of the new package is a ban on the sale of goods to Russia intended to choke off more than 11 billion euros, or about $11.8 billion, worth of prewar imports, European Commission President Ursula von der Leyen has said in recent days.

Items proposed for the ban include 47 types of electronic components that can be used in Russian missile systems and construction and industrial goods that can also be requisitioned by the military, including specialized vehicles, spare parts for trucks, jet engines and cranes.

“We propose, among other things export restrictions on multiple electronic components used in Russian armed systems—such as drones, missiles, helicopters,” Ms. von der Leyen said in a speech to EU lawmakers early Wednesday.

EU officials have said the new package seeks to avoid the problems the bloc has faced with some previous export bans on Russia. In particular, it seeks to target specific technologies and components that the Russian military or military-linked companies can purchase only from European or Western suppliers. As in previous packages, the measures are being closely coordinated with Washington and the U.K.

Ms. von der Leyen also said the sanctions proposals include measures targeting seven Iranian entities, including some linked to Iran’s elite Revolutionary Guard Corps, which the EU believes are delivering drones to Russia.

“It is our duty to sanction them, and confront Iran about the supply of drones and the transfer of know-how to build production sites in Russia,” she said.

Among specific technologies being considered for new sanctions, according to a document reviewed by The Wall Street Journal, is something called “stored program controlled” inspection equipment. The gear looks for specific faults in semiconductor materials. Another technology being considered in the sanctions package: electron-beam test systems for semiconductors.

The U.S. and its Western allies had targeted cutting off the supply of semiconductors to Russia as a key goal in the early days of the war. But there is growing evidence that Moscow is receiving crucial technology its military needs from China. That has forced EU officials to look for other specific technologies or parts that can blunt the effectiveness of those supplies. China has denied aiding Russia.

The bloc is also proposing to sanction almost 100 additional people and entities believed to be responsible for military activities, political decisions, propaganda and disinformation, EU foreign-policy chief Josep Borrell said.

Western officials have acknowledged that many measures promising the biggest impact on Russia’s ability to finance the war, including energy embargoes and financial sanctions, have already been enacted. Their focus has now shifted to closing loopholes in sanctions regimes and scaling up action to prevent sanctions evasions, diplomats say.

To step-up action against sanctions evasion, the EU, the U.K. and the U.S. are coordinating joint visits to countries whose companies they say are helping Russia circumvent Western sanctions. The EU is also toughening up legislation aimed at penalizing individuals or companies for helping the Kremlin undercut sanctions.

Under its evasion measures, the commission had been looking at penalizing international shipping companies that EU officials believe were set up by Russia to allow their vessels to trade oil unimpeded in international markets. However, EU officials said Wednesday that they were unlikely to proceed with those measures at this point because of legal concerns about the extent of proof needed to sanction firms.