EU Economic Sanctions build ‘Trust’: In the Case of EU-Ukraine Relations

Abstract

In this paper, we examine ‘trust’ between the EU and Ukraine in the context of the EU’s economic sanctions against Russia. In early 2014, Russia violated international law by annexing the Republic of crimea. Furthermore, Russia fomented separatist opposition to Ukraine and Western countries in the eastern Ukrainian Donetsk People’s Republic and Luhansk people’s Republic. In March 2014, the EU responded with diplomatic measures including asset freezes and visa bans. In addition, the EU imposed sanctions on Russian energy, defence and finance. In March 2015, the EU extended these sanctions because Russia did not sign the Minsk agreement to establish a ceasefire in eastern Ukraine. First, this study explores the relation between economic sanctions and trust. Generally, economic sanctions build distrust between the sender actor and the targeted actor. However, economic sanctions may build trust between the sender actor and the profit recovery actor, which recovers its profits through the sender’s sanctions. Second, this study explains the historical background of EU economic sanctions. The EU currently imposes economic sanctions as part of its Common Foreign and Security Policy. But before the Common Foreign and Security policy was launched, the EU imposed sanctions within the framework of the Common Trade Policy. We therefore discuss the history of the Common Foreign and Security Policy. In addition, we describe the history of EU economic sanctions. The EU now imposes economic sanctions in three main ways: asset freezes and individual travel bans, trade limitations and diplomatic restrictions. The goals of EU economic sanctions vary and are aimed at addressing various Common Foreign and Security Policy objectives. EU economic sanctions have gradually become a means of building trust and integrating EU foreign policy. Finally, this study examines the relationship between economic sanctions and trust in the context of EU sanctions against Russia and proves that these sanctions are a means for building trust between the EU and Ukraine. The EU and Ukraine regard EU sanctions against Russia as strong criticism of its accused infringement of ukraine’s sovereignty and territory. In other words, Ukraine trusts that the EU will continue to issue strong criticisms of Russia in the form of economic sanctions.