The European Union (EU) has reached a consensus on one of the strongest sanctions packages against Russia to date. "Every sanction weakens Russia's ability to wage war. The message is clear: Europe will not waver in its support for Ukraine. The EU will continue to increase pressure until Russia ends the war," EU High Representative for Foreign Affairs and Security Policy Kaja Kallas said today.
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EU High Representative for Foreign Affairs and Security Policy Kaja Kallas at a press conference in Brussels, Belgium, 15/7. *Photo: AFP* |
The EU has agreed to lower the price cap on Russian crude oil exports to third countries by 15% compared to the market price. The new price will be 47.6 USD per barrel and can be adjusted as oil prices fluctuate. Under the price cap mechanism, EU companies are prohibited from providing maritime services (insurance, finance, shipping, etc.) for Russian crude oil shipments if the selling price exceeds the stipulated price cap.
In 2022, the G7 imposed a price cap of 60 USD. The decision to lower the crude oil price cap was made despite EU countries failing to persuade former US President Donald Trump to agree to the plan. Two G7 countries, the UK and Canada, will support this EU move.
The sanctions package also includes a ban on transactions related to the Nord Stream gas pipelines in the Baltic Sea.
In addition, the EU will add more than 100 vessels to the "shadow fleet" blacklist - tankers that Russia is accused of using to circumvent oil export restrictions.
Sanctions will also be applied to a Russian-owned refinery in India and two Chinese banks, as the EU seeks to limit Moscow's relations with international partners.
The sanctions package also includes a ban on transactions with Russian banks and further restrictions on the export of "dual-use" goods (serving both civilian and military purposes) that could be used on the battlefield in Ukraine.
The new sanctions package will be adopted by EU ministers later on 18/7. Russia has not yet commented on the bloc's move.
Huyen Le (*AFP, Reuters*)
