EU eyes banning sale of luxury goods worth over 300 euros to Russia

The EU is set to approve banning the sale to Russia of luxury goods worth more than 300 euros ($329.58), as well as the purchase of many Russian steel and iron products as part of a fourth round of sanctions over the invasion of Ukraine, according to a draft obtained by Bloomberg, Report informs.

The bloc is banning the sale of luxury cars, boats and planes valued at more than 50,000 euros, which would apply to models from several European car brands, including Audi, BMW, Mercedes, Ferrari and Porsche. It also covers motorcycles worth more than 5,000 euros, as well as parts and accessories. Many European carmakers have already voluntarily suspended sales to Russia.

The new sanctions package does include some exemptions, particularly related to energy and metals. For example, it won’t ban transactions needed for purchasing or transporting Russian fossil fuels. It also exempts titanium, aluminum, copper, nickel, palladium and iron ore from the restrictions.

When it comes to luxury goods, the ban applies to the sale of certain products with a value of more than 300 euros per item to anyone in Russia or for use in Russia. The list of restricted items includes caviar, truffles, beer, champagne, cigars, perfumes, handbags, leather and fur apparel, overcoats, suits, shoes, shirts and other assorted clothing items, pearls, diamonds, gold and precious stones.

The level at which to set the threshold was the subject of much debate among member states, with lobbying groups pushing several governments to agree on high values, separate documents seen by Bloomberg show. The catch-all 300-euro threshold means that some of the categories will be mostly unscathed by the ban.