EU unveils new sanctions against Russian crude
The European Commission on Tuesday proposed its 18th package of economic sanctions against Russia, aimed at restricting its capability to finance its war in Ukraine.
IMAGE: The Berlaymont building in the European Quarter houses the headquarters of the European Commission. Getty Images
The Commission has proposed a new package of economic sanctions targeting Moscow’s energy and banking sectors, aimed at limiting oil revenues flowing to its war chest.
“The Russian economy is deeply affected by the sanctions,” Ursula von der Leyen, President of the European Commission said. “Russia's oil and gas revenues have fallen by almost 80% compared to before the war,” she added.
The latest round of sanctions has raised the total number of sanctioned shadow fleet vessels carrying Russian oil to 419. The Commission has targeted specific vessels that circumvent the G7 Price Cap Coalition’s oil price cap.
By assembling a shadow fleet of poorly maintained vessels that are used to circumvent sanctions meant to restrict the movement of Russian crude oil, Russia has effectively traded outside the imposed price caps.
The Commission has also proposed to ban imports of refined products based on Russian crude oil. “In this way, we want to prevent that some of the Russian crude oil reaches the EU market through the back door,” von der Leyen said.
Additionally, the Commission has decided to prohibit all European Union operators from engaging in any direct or indirect transactions with Russia’s Nord Stream gas pipelines 1 and 2.
Price cap on Russian crude and oil products
The Commission has proposed to lower the oil price cap on Russian crude oil to $45/bbl from $60/bbl. “Oil exports still represent one third of Russia's government revenues. We need to cut this source of revenue,” von der Leyen added.
The oil price cap measure will be discussed at the G7 Summit in Canada next week, she said.
The price cap on Russian oil, implemented by Washington and its allies (the G7 group of countries), are a strategic measure aimed at reducing Russia's export revenue. This limitation is intended to restrict the financial resources that Russia can allocate towards sustaining its military operations in Ukraine.
By Aparupa Mazumder
Please get in touch with comments or additional info to news@engine.online
