The EU's new sanctions plan is designed to target Russian crude exports more severely

The European Commission proposed on Friday a ban on all services that "support" Russia's crude oil exports by sea. This is a far more comprehensive measure than previous EU sanctions, and goes beyond the piecemeal approach in an effort to "stunt" Moscow's main source of revenue for its war against Ukraine.

With the assistance of Western shipping, Russia exports more than a third its oil on Western tankers. These are mainly from Greece. Cyprus and Malta.

The ban will end this practice that mainly supplies India and China and make obsolete the price cap that was imposed by the Group of Seven Western Powers on Russian crude oil.

EU PROPOSES THE BROADEST Clampdown on Russian Crude?EXPORTS

The first report to be made in December was that the European Union, the G7 and other countries were meeting.

Discussing

The ban.

Ursula von der Leyen, the Commission president, did not specify if and how this ban would be implemented. She also refused to say if it would include refined products (whose price caps are different) or other energy exports like liquefied gas (LNG).

She stated that the ban would be "in conjunction with like-minded partner" and that Russian LNG tanks and icebreakers will face "sweeping bans on maintenance and other service".

The G7 established a price ceiling for Russian crude oil?in 2022 in order to curb Moscow's revenue while allowing third countries to still import the oil as long as their payment was not more than the price cap.

Last year, the EU and a coalition of G7 countries including Britain and Japan reduced the cap in order to reflect the fall in market prices. The price is now $44.10 per barrel, while Iraq's Basra Medium Blend currently costs $64 per barrel.

This coalition was shunned by the United States, but it included Russia's two largest oil companies, Rosneft, and

Lukoil

The EU does not have a list of sanctioned companies that are subject to asset freezes.

EU TRY TO PREVENT EXPORT BANDS BEING DODGED Von der Leyen stated that the new package of sanctions - the 20th since Russia invaded almost four years ago - is meant to push Moscow into serious negotiations for peace. "Russia won't come to the table unless it feels pressured." Her?statement stated that this is the only language Russia speaks.

Von der Leyen stated that the package will also include a new ban on imports of metals, chemicals, and critical minerals, which are not currently under sanctions.

The Commission proposed to add 43 additional vessels from Russia's shadow Fleet to its list of sanctions, bringing the total to 640. It also added 20 more "Russian regional banks". The Commission proposed additional measures against cryptocurrency firms that allow Russia to circumvent Western sanction.

EU diplomatic sources said the package would impose travel bans and asset freezes for just over 100 entities and individuals.

If the package is approved by EU member states, it will use a new tool called "Anti-Circumvention", which allows the bloc to limit sales of certain sanctioned products to a third nation for the first.

The target was not named in the statement

Kyrgyzstan

The Kyrgyz Republic is facing pressure following the recent sanctions against a number of Kyrgyz cryptocurrency and banks by the U.S.

Unanimity is required for sanctions to be law in the EU.

(source: Reuters)