Ukraine: Suddenly, Europe Is Taking a Harder Line on Russia Sanctions - by Carol Matlack and Arne Delfs

As violence escalates in eastern Ukraine, Europe is moving toward an action some thought it might never take: the imposition of stringent economic sanctions on Russia. Angela Merkel, the Russian-speaking German chancellor whose country has more at stake financially than any other, is leading the charge.

Until recently, much of the toughest talk of sanctions was coming from Washington, while the Europeans were regarded as—well, wimps. But now, Berlin “is already busy coordinating the next phase of sanctions behind the scenes,” a high-ranking German government official tells Bloomberg News. “These economic sanctions will be much wider-ranging and also more hurtful to business interests.”

Merkel has fired two warning shots at Moscow in recent days. Berlin announced today that Germany had suspended granting licenses for arms exports to Russia, after saying on April 11 that a planned $973 million satellite-technology deal between Russia and Airbus Group (AIR:FP) had been put on hold.

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