EU proposes new sanctions package against Russia

The European Commission (EC) has proposed its 21st package of economic sanctions against Russia aimed at limiting the oil revenues funding its war chest.

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The EU has put forward a new package of sanctions against Moscow, targeting an additional 30 vessels allegedly linked to Russia's shadow fleet, which is used to circumvent price caps on Russian crude oil and refined products.

This brings the total number of sanctioned vessels to more than 662, the EC said. It has also targeted vessels that assist the shadow fleet by providing bunkering and other services.

The commission has sanctioned critical Russian infrastructure like ports, airports, refineries trading or processing Russian oil. It has also restricted the sale of LNG tankers to Russia.  

“Hundreds of vessels from Russia's shadow fleet have been targeted by our sanctions,” EC President Ursula von der Leyen said.

The Commission has banned 36 other entities including banks, cryptocurrency firms, oil traders based in third countries, and companies linked to Russia’s aerospace and defence sectors, it said.

The Commission has also proposed to freeze the price cap on Russian crude oil for six months. The current cap is fixed at $44.10/bbl.

“Our oil price cap has a built-in adjustment mechanism to follow the market,” von der Leyen said, adding that these adjustments were not meant to shock the market like the one caused by the closure of the Strait of Hormuz.

“So we propose to simply pause the adjustment until January next year. This will give oil markets time to stabilise while preserving pressure on Russia's revenues,” she added.

The EU adopted its 20th sanctions package against Moscow earlier in April, targeting 46 vessels allegedly linked to Russia's shadow fleet.

A shadow fleet is made up of older vessels that intentionally evade regulations.

By Aparupa Mazumder

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