“The European Union is discussing a proposal to replace the current price capping mechanism for Russian oil with a complete ban on the provision of maritime services for its transportation as part of the preparation of the 20th package of sanctions.”, — write: www.pravda.com.ua
Source: Bloomberg with reference to informed interlocutors
Details: According to sources, if this initiative is supported by member states, European companies will be completely prohibited from providing services necessary for the transportation of Russian oil, including insurance and transportation.
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A key difference in the new approach is that the ban will apply regardless of price (currently shipments are allowed if oil is bought below a set “ceiling”).
Interlocutors of the agency emphasize that a complete ban will significantly increase the pressure on the Russian economy and significantly simplify control over compliance with the sanctions regime.
EU countries are already familiar with the draft of the 20th package of sanctions, which Brussels aims to approve by the end of February.
At the same time, the consent of all members of the block is necessary for making a decision. According to sources, several capital cities have already spoken out against replacing the price ceiling with a complete ban on services.
In the new package, the EU also plans to propose restrictions against Russian banks and oil companies, cryptocurrency services, financial institutions of third countries that facilitate the circumvention of sanctions, and “shadow fleet” vessels.
What preceded:
- As “EvroPravda” reported, next week the European Commission is expected to release the proposal regarding the new, 20th package of EU sanctions against Russia. It is planned to be adopted before the fourth anniversary of the Russian Federation’s full-scale invasion of Ukraine.
- According to the interlocutors of “EP”, the 20th package will be largely directed against the “shadow fleet” of the Russian Federation.
- In addition, the 20th package may include increased restrictions on Russian mineral fertilizers, which are still the third largest category of commodity exports from Russia to the EU. Additional bans on the export of dual-purpose goods to the Russian Federation are also planned.
- The 19th package of EU sanctions against Russia approved October 23.