France and the Netherlands believe that the European Union should impose sanctions against banks and other financial institutions worldwide that participate in payment transactions for arms supplies to the Russian army. The EU already applies many sanctions against Russia, which still manages to purchase military material elsewhere in the world.
Ambassadors of the EU countries discussed the French-Dutch proposal on Wednesday as part of the 14th package of sanctions against Russia currently being prepared by the EU. This should be determined at a EU summit of government leaders in June.
Under the proposal, iedereen in the EU could be banned from doing business with any financial institution in the world that the EU identifies as directly or indirectly aiding the Russian military.
Such a ban could provide a powerful incentive for financial institutions in the Middle East, Iran, Turkey or even China not to make deals on the supply of EU-sanctioned dual-use goods to Russia, as they would restrict access to the European business and financial markets of the EU could lose.
EU officials said the European Commission would likely coordinate such sanctions against financial institutions with the United States, making the tool even more powerful.
Hungary, which still has warm ties with Moscow despite Russia's war against Ukraine, could oppose the proposal, as could Germany, which does not want to jeopardize close business ties with China. The European Commission said last month there were signs Beijing was supplying parts to Russia that could be used to make weapons.