The European Commission (EC) has presented a new set of sanctions against Russia in response to its actions in Ukraine. The proposed measures include a ban on Russian diamonds and the introduction of stricter controls, such as a price cap on oil, according to the EC documents, reports Politico.
Since Russia’s invasion of Ukraine, Brussels has implemented 11 sanctions packages targeting different areas. The latest sanctions packages are more focused on measures to prevent sanctions evasion, as the other measures are either politically sensitive or more likely to harm the EU than Russia.
The proposed EU sanctions package, which still needs to be signed, includes a ban on Russian diamonds, which was not included in previous EU packages. Although Washington has already banned Russian diamonds, the EU’s delay is partly due to Belgium’s concern to protect its diamond trading hub in Antwerp.
The ban will take effect from January 2024,
while the indirect import ban on Russian diamonds will be phased in gradually in non-EU countries, as technical work to set up a traceability mechanism at G7 level is ongoing.
The new EU sanctions package tightens requirements to prevent Russian oil purchased in violation of existing sanctions being sold under false receipts. The G7 price cap of 60 US dollars per barrel is currently in place (approx. 55 euros), but Russian crude is reportedly being traded well above this limit, thus increasing the Kremlin’s profits.
“The price cap mechanism is based on an attestation process that allows operators involved in the Russian seaborne oil supply chain to prove that it has been purchased at or below the ceiling price,” Politico quotes the EC document, saying that “there is a case for requiring attestations to include detailed additional costs such as insurance and freight”.
As per Politico, the proposed stricter requirements aim to address concerns about potential manipulation or evasion of the existing price cap for Russian oil. The proposed changes would make that harder, but it’s still unclear whether there would be sufficient oversight to reduce the risk of questionable deals.
The proposed EU sanctions package also includes restrictions on Russian pig-iron, copper and aluminium wires and foil imports. In addition, according to EU diplomats, it introduces new restrictions on Russian liquefied propane gas (LPG) in response to requests from Poland and the Baltic States.
EU diplomats, speaking on condition of anonymity, told Politico that the proposed sanctions package is scheduled to be considered on Friday. Although the timetable for approval is not yet known, the aim is to secure approval before the European Council meeting in mid-December or by the end of the year.
Read also: US introduces new sanctions against Russia over the war in Ukraine
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