The European Commission has proposed a new round of sanctions against Russia, targeting oil sales, the “ghost fleet”, banks, cryptocurrency companies, metals, fishing products and soldiers who took part in the large-scale invasion of Ukraine.
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This proposal, presented Tuesday by Commission President Ursula von der Leyen, comes as Kyiv’s allies are considering new ways to revive a stalled peace process and force the Kremlin to accept a ceasefire as a preliminary to negotiations.
“Russia has clearly failed to subdue Ukraine. The price that Russia pays is heavier every day, and it is paid mainly by the Russian people,” said Ursula von der Leyen.
“The objective of our package could not be clearer: we want to maintain our sanctions at full intensity. HAS”
The central element concerns the capping of the price of Russian oil that the EU, in concert with the G7 and Australia, has applied since December 2022. Last year, this mechanism was made dynamic, the ceiling being set at 15% below the average price.
However, disruptions caused by the blockage of the Strait of Hormuz pushed the price of Russian Ural-grade oil to $87 per barrel, up from $58 in February.
This means that if the EU carries out the review scheduled for July 15, the ceiling will be revised upwards and thus offer Moscow the temporary respite it wants.
The Commission proposes to postpone the review until January 2027 and to maintain the price ceiling at its current level, i.e. $44.10 per barrel.
The adjustment mechanism “was not designed for market shocks like the one caused by the closure of the Strait of Hormuz,” von der Leyen explained.
This pause until January, she added, “will allow time for oil markets to stabilize, while maintaining pressure on Russia’s revenues.”
Earlier this year, von der Leyen presented a plan to introduce a total ban on all maritime services, such as banking, insurance, shipping and ship registration. This ban, defended by the Nordic and Baltic countries, lost its momentum after the outbreak of the conflict in the Middle East.
Greece and Malta, two coastal member states that provide services to Russian tankers, have expressed their opposition and made it clear that they will not take another step without the approval of the G7. Other G7 allies showed little enthusiasm and the project quickly fell into limbo.
By refocusing the debate on the ceiling, the Commission de facto recognizes that this ban is not for tomorrow. A summit of G7 leaders is due to be held next week in France, where Ursula von der Leyen is due to address the issue of sanctions.
Furthermore, the Commission is proposing to blacklist 30 ships from the “ghost fleet” that Moscow uses to circumvent the ceiling. These tankers, in an alarming state of disrepair, are considered a risk to both security and the environment in Europe.
More than 600 of these ships have already been refused access to EU ports and services.
In addition, other ships and infrastructure, such as ports and refineries, which facilitate the activities of the “ghost fleet” will also be blacklisted, von der Leyen said.
The proposed package targets 31 Russian banks as well as 20 cryptocurrency companies, platforms and foreign oil traders accused of helping Moscow circumvent restrictions.
It also plans to ban the export of various metals, alloys and components used in the defense sector, as well as, for the first time, the import of certain fishing products from Russia.
European alumina exports appear to be excluded from this package, despite ongoing controversy surrounding a factory in the west of Ireland, accused of indirectly contributing to Russia’s arms production.
A notable element of the proposal is the ban on entry into the Schengen area for Russian soldiers who took part in the war of aggression, an initiative that Estonia put on the table earlier this year and has since received support from other countries.
“Europe will remain closed to anyone who participated in the invasion of Ukraine, it’s as simple as that,” von der Leyen said.
The adoption of these sanctions requires the unanimity of the 27 member states. If approved, they will constitute the 21st package of restrictions since February 2022.
Officials and diplomats in Brussels hope to get the green light before July 15 to avoid the automatic revision of the price ceiling.
Von der Leyen’s announcement comes as Russia intensifies its large-scale deadly airstrikes against Ukrainian cities, sparking outrage in Europe. Recent signs of tension in the Russian economy further strengthened the momentum for further restrictions.
“Our sanctions continue to bite hard and strike deep,” von der Leyen said. “They weaken the economic foundations of Russia’s war effort. HAS”
Ukrainian President Volodymyr Zelensky has proposed a face to face meeting with Russian President Vladimir Putin to end the war. Negotiations, Zelensky said, should be based on the current contact line and be subject to a ceasefire.
On Sunday, the leaders of France, Germany and the United Kingdom supported Zelensky’s idea “with active participation of the United States and Europe.”
