EU imposes new sanctions on Russia over war in Ukraine
The European Union has agreed on its 21st package of sanctions on Russia since Moscow launched its full-scale invasion of Ukraine in 2022.
EU member states adopted the measures on Thursday, which had earlier been approved by ambassadors.
EU freezes price cap for Russian oil exports
European Commission President Ursula von der Leyen welcomed the agreement to suspend the automatic adjustment of the international price cap on Russian oil exports for 12 months “so that the Russian war machine does not benefit from market shocks.”
The oil price cap, introduced in 2022 by the EU together with the United States, Britain, Japan and Canada, applies to Russian oil sold to non-EU countries such as India, China and Turkey.
To enforce the measure, shipping companies and firms providing insurance, technical assistance, financing or brokerage services face sanctions if they facilitate sales above the price cap.
Rising global oil prices, driven by the war in Iran and the disruption to shipping through the Strait of Hormuz, would have required the cap to be raised under the current mechanism, allowing Moscow to earn more from its oil exports.
An EU official said the suspension could cost Russia some €3.5 billion ($3.98 billion) over the course of a year, citing calculations by the commission.
EU top diplomat Kaja Kallas had previously warned that Moscow could benefit financially from the Iran war and its impacts on the global energy market.
Additional financial and trade restrictions
The package also targets Russia’s financial sector.
“At a time when Ukraine has built military momentum, our sanctions continue to weaken the economic foundations of Russia’s war effort,” von der Leyen said in a post published on X.
“We’re adding 32 more Russian banks to our transaction ban list. As well as crypto firms and oil trading platforms,” she said.
The EU also agreed to impose entry bans and asset freezes on individuals and companies that can be linked to Russia’s war against Ukraine, as well as additional trade bans aimed at limiting Russia’s military industry.
The bloc also agreed to work towards restricting EU visas for Russian soldiers who fought in Ukraine, an EU diplomat said.
Difficult negotiations
European Council President António Costa said the latest round of sanctions is “another decisive step to tighten the pressure on Russia.”
“Our support for Ukraine and for a just and sustainable peace remains unwavering,” he added.
The agreement, however, was reached after weeks of negotiations, with some member states voicing concerns that certain restrictive measures could cause greater economic damage within the EU than in Russia.
Greece, for example, pushed for an exemption for existing contracts from a ban on the transport of Russian liquefied natural gas to non-EU countries in the interests of its domestic shipping companies.
Germany, Portugal and France were meanwhile among those pressing for proposed sanctions to be watered down. In Germany, the commission’s proposal to halve imports of Alaska pollock from Russia into the EU within two years had caused particular concern, with officials citing consequences for producers and consumers.
The head of the Russian Orthodox Church, Patriarch Kirill, will not be subject to sanctions for the time being either – primarily due to pressure from Bulgaria.