By Naftali Bendavid and Matthew Dalton
BRUSSELS--European Union foreign ministers on Tuesday toughened
sanctions on Russia following the crash of Malaysia Airlines Flight
17 in eastern Ukraine, but they avoided adopting an immediate broad
arms embargo, suggesting a split over Moscow's actions in Ukraine
remains pronounced.
The ministers gathered in Brussels decided to sanction people
and organizations who have provided support to Russian decision
makers, agreeing to name specific targets as early as Thursday.
Targets are expected to include for the first time penalties
against prominent Russians close to President Vladimir Putin.
And the ministers said they would go further if they don't see
"full and immediate cooperation" from Russia and pro-Russia
separatists on handling the crash aftermath, as well as limiting
the arms flow into eastern Ukraine. That could include trade
restrictions on defense, energy and high-technology items, as well
as limiting Russia's access to credit markets, they said.
"Those directly and indirectly responsible for bringing down
this plane must be held accountable and brought to justice," said
EU foreign-policy chief Catherine Ashton.
Anger among Europeans over the shooting down of the plane, which
led to the deaths of nearly 300 people, was evident at the meeting,
the first EU gathering since the tragedy last week.
British Foreign Secretary Philip Hammond said "the world has
changed," and Lithuanian Foreign Minister Linas Linkevicius
criticized the EU for "inaction" and said it needs to "wake
up."
Mr. Linkevicius, along with Swedish Foreign Minister Carl Bildt,
was among those calling for an arms embargo on Russia, saying it
was illogical to denounce military aggression while continuing to
arm the aggressor.
"I saw T-64s on the streets of Donetsk yesterday, modernized
T-64s on the street of Donetsk," Mr. Bildt said. "You don't buy
them at the local grocery store. We know where they're coming from.
They're coming in increasing numbers from across the border--in
spite of commitments, in spite of our talks."
Behind the scenes, the debate was colored by a fear that harsher
actions could prompt the separatists who control the crash site to
make it harder for international workers to recover the passengers'
bodies, though progress in recovering the bodies was reported in
the hours before the meeting.
Dutch Foreign Minister Frans Timmermans flew to Brussels from
New York after an emotional speech the previous night before the
United Nations Security Council. Mr. Timmermans suggested the
Netherlands and Europe now had to accept the economic consequences
of imposing harder-line sanctions on Russia.
"This is no longer a question of the economy and trade," he
said. "This is a question of security, it's a question of Europe's
geostrategic position, and it's a question of justice for the
nearly 200 Dutch people who lost their lives."
Since Russia annexed the Ukrainian region of Crimea in March,
the EU's 28 members have wrestled with how strongly to respond.
Many European countries receive most or all of their energy from
Russia, and they fear the consequences of sanctions and possible
retaliation from Moscow.
EU leaders settled on a policy of steady but incremental
measures, but the approach attracted criticism even from some of
the bloc's own members, especially since the U.S. has imposed
stronger penalties.
Some ministers said on Tuesday that Europe's approach must
change, and that it is now clear that Moscow is an adversary rather
than a partner.
"I believe it's really, really important to wake up a little
bit," Mr. Linkevicius said. "Our inaction is also sometimes part of
the problem....There must be a turning point in our mind-set. I
don't know what else should happen for us to know with whom we are
dealing."
But other developments showed the difficulties in taking
stronger action. French President François Hollande made it clear
that France was forging ahead with plans to deliver the first of
two warships to Russia, though he cast new doubt over the delivery
of the second.
German Foreign Minister Frank-Walter Steinmeier said any new
restriction on defense-related items would likely cover only future
contracts.
Ukrainian Foreign Minister Pavlo Klimkin, in Brussels to meet
his counterparts, said the French sale violates EU policy, which
requires countries to consider the potential that arms they sell
can be used against neighboring countries.
Mr. Klimkin added that he favors arms restrictions on Russia.
"We very much hope that a number of steps in this direction will be
taken," he said.
The EU foreign ministers agreed on Tuesday to target individuals
and groups that provide "financial or material" support to Russia's
decision makers. That decision had been foreshadowed by a meeting
of EU heads of state and government last week.
But the warning about imposing trade restrictions on defense,
energy and high-tech items was unexpected. The ministers asked EU
staffers to prepare a proposal for such a move by Thursday, and
signaled they could move ahead within a week if they don't see more
cooperation from Russia and the separatists.
Before this week, the EU had sanctioned 72 Russians and
separatists, plus two Crimean energy firms.
Mr. Klimkin said the precise sanctions are less important than
sending a message that the EU fully supports Ukraine. "For me, it's
about the European Union speaking with one clear voice," he
said.
More European ministers were willing to blame Russia directly
for the crash, citing reports that Moscow has allowed large amounts
heavy weaponry to flow over its border to the Ukrainian
separatists. The North Atlantic Treaty Organization has warned of
this weapons flow and said Russia has rebuilt its force on the
Ukrainian border to 10,000-12,000 troops, after reducing it to less
than 1,000 in mid-June.
Among the ministers calling for an arms embargo were those from
Lithuania, Latvia, Sweden, and Austria. Mr. Linkevicius, of
Lithuania, also said the EU should place the so-called Republics of
Luhansk and Donetsk--Ukrainian enclaves run by pro-Russian
separatists--on the bloc's list of terrorist groups.
Mr. Hammond, whose country has been outspoken in favor of a
tough response to the crash, wasn't specific about which measures
should be taken, but he signaled before the meeting that the EU
should toughen its approach.
"The events of the last few days have changed public
expectations of us, " Mr. Hammond said. "We must signal...that we
recognize that and we are going to go further as a
consequence."
But Mr. Bildt hinted at the difficulty of presenting a unified
front among the EU's 28 nations, even in the face of a tragedy that
killed numerous European citizens.
"If we stay together, the Americans and the Europeans, we can
handle the situation," Mr. Bildt said. "If we are weak and divided,
it's going to be even harder."
Laurence Normanand Gabriele Steinhausercontributed to this
article.
Write to Naftali Bendavid at naftali.bendavid@wsj.com and
Matthew Dalton at Matthew.Dalton@wsj.com