EU unveils new sanctions package against Russia
The European Commission (EC), on Friday, proposed its 19th package of economic sanctions against Russia, aimed at restricting its capability to finance its war in Ukraine.
IMAGE: The European Commission's headquarters. 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 announcement comes days after Russian drones breached the European Union’s (EU) airspace in Poland and Romania.
The EC has sanctioned 118 additional vessels that are allegedly a part of Russia’s shadow fleet, targeting specific vessels that circumvent the G7 Price Cap Coalition’s oil price cap.
The latest round of sanctions has raised the total number of sanctioned shadow fleet vessels carrying Russian oil to more than 560, it said.
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 lowered its crude oil price cap to $47.6/bbl and banned transactions with major Russian energy companies like Rosneft and Gazpromneft.
“We are now going after those who fuel Russia's war by purchasing oil in breach of the sanctions,” Ursula von der Leyen, President of the European Commission said. “We target refineries, oil traders, petrochemical companies in third countries, including China,” she added.
The Commission has also proposed to ban imports of Russian LNG into European markets as well as Russian banks, and 45 companies that have been “providing direct or indirect support to the Russian military industrial complex.”
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
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