The Foreign Affairs Council also agreed to expand the restrictive measures with a view to targeting

individuals or entities who actively provide

material or financial support to or are benefiting from the
Russian decision-makers responsible for the annexation of Crimea or the destabilisation of Eastern
Ukraine.
ln line with this reques! the non-paper outlines a number of measures that could be taken in the
areas set out by the Council conclusions and the
procedure
that should be followed to adopt the
relevant legal instruments.
The document builds on the preparatory
work conducted by the Commission services, in cooperation
with the EEAS, in response to the mandate given
by the March European Council. Different scenarios
were identified and.tested with regard to their impact on the EU economy and on the economies of
each Member States. This was the basis for the
preparation
of country fiches with an economic
impact assessment, which were shared with the Member States. ln light of the feedback received,
the analysis was further refined.
The work on the possible
form of an initial set of EU sectoral sanctions has been
guided
by the
following principles: 4i
.
Effectiveness
lintensity
of impact on the Russian economy)
o
Cost/benefit rotio (taking into account adverse impacts on the EU ecotpmy, indudingfrom
possible
symmetric or asymmetric Russian retaliations)
o
Bolonce across sectors and across Member States
.
Coordinotion with sanctions adopted by the US, G7 partners
and othercountries
o
Scolobitity
/
reversibility over time;
.
Legol defensibility of the measures/eose ol implementotion by economic operotoB.
Reflecting this
preparatory
work, the package
of measures
presented
in this paper contains mearres
aimed at affecting Russian calculatlons of costs and benefits in the management of the sbb,
minimising adverse impact on the EU and maintaining space for diplomatic action and for scali.E up
or reversing the restrictions in light of developments on the
ground.
It is for Member States to decide on the timing and the modulation they want to have for such
measures. The Commission is ready to table the necessary legislative proposals
in all areas identified,
once so requested by the council.